Lockdown Strategy for Small Business

With such a lot of unknowns at the moment, we believe the following steps are important to consider, to minimise the impact of COVID-19 on you and your business:

• Make sure pricing reflects your full costs pre the virus, plus 20% ROI.
   
• Work out what clients can do themselves and what they can’t. Consider charging more for those services clients can’t or don’t want to do themselves. Customers will understand, particularly in the current climate, as they will want to support small businesses and are likely to want to ‘Buy Local’.
   
• Consider an advertising push to get your services and brand known. Try brochures, your local RSL magazine for example, newspaper or TV. Keep your message clear and local.
   
• Review your staffing requirements. Flexible working arrangements such as unpaid leave and reduced hours are now commonplace. If you do decide to make staff redundant, make sure you consider employment law and seek advice should you need it.
   
• Tighten collections and chase up outstanding bills. Consider payment plans for outstanding amounts and recurring payments for future work to give you some certainty over cashflow.
   
• Look at opportunities to diversify or to do extra work.
   
• Review operations monthly. Know your numbers. Contact your local TaxAssist Accountant to discuss a plan. 
   
• Try and keep things light. In these difficult times people will appreciate a friendly face.

Written by Terry Murphy

Date published 1 Sep 2020 | Last updated 1 Sep 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.