When the government announced the $70-billion JobKeeper program to support businesses and their employees during the COVID-19 pandemic, many small- and medium-sized businesses and non-profit organisations heavily relied on this scheme to stay afloat.
According to a recent survey by the Australian Institute of Company Directors on the impact of COVID-19, over 40% of the respondents reported reliance on JobKeeper payments. 47% of SMEs indicated that the JobKeeper Scheme had provided the most relief.
So given the deep reliance on JobKeeper and the changes coming in September, now is the time to think about how your business will be impacted. If you’re still eligible for JobKeeper at the end of September, you will not be receiving the same amount as you are now. If you are no longer eligible, you will not be able to receive this wage subsidy support at all.
As a business owner relying on the relief from this scheme provides, the end of JobKeeper could create some concerns. So what exactly can you do to prepare the end of the JobKeeper program?
Conduct Scenario Planning
Planning makes a huge difference. So before we get to the end of the JobKeeper program for you, make sure that you have explored various scenarios for the future and plan for these accordingly.
Your scenario planning should include thinking about the worst possible scenario and preparing for it. Now is also the time to revisit your business and know which levers can you pull in the event that the government wage subsidy scheme ends earlier than expected.
Secure additional credit lines, liquidity, or equity for your business if needed. Chat to us and we’ll help map out a plan together.
Evaluate Your Business Model
Many businesses have developed creative ways to pivot during the pandemic. Restaurants have focused on takeaways, fitness centres have launched online sessions, and others have created totally new products or services.
What can you do to reimagine your existing business model and understand new industry norms and market trends? Don’t just wait for your peers to do something and follow suit. Those who strategise and act first tend to find their way to the front in their industry compared to reactive players.
In today’s business landscape, adaptability and flexibility are the key to surviving and thriving. The unprecedented global crisis has put us in a tricky situation, but being flexible in the way you do business can help you roll with the waves.
From remote work arrangements to the way you design your payment models for your customers, there are countless ways to adopt these characteristics that will help you scale back quickly even as the government support ends.
Review your expenses and financing arrangements
Run your business as lean as possible and cut down on unnecessary expenses so you can save as much cash as you can while you still have support from the JobKeeper program. By keeping a bit of a war chest, you will be in a stronger financial position when it ends.
Additionally, if business is picking up, you might be in a good position to secure additional credit. You can also look into refinancing your existing obligations.
Keep in mind that insufficient cashflow and capital can easily throw your business off track– so secure your access to the finance you need to carry on and boldly face the uncertain months ahead.
You don’t have to do it alone…
In these unpredictable times, changes such as the early end of the JobKeeper program can have a massive impact on your strategy and direction. We understand that these events can be confusing and frustrating, but you don’t have to face these business challenges alone.
It makes perfect sense to work closely with your trusted business advisors. If you need professional guidance in your decision-making, feel free to get in touch with us so we can strengthen your position now and get a better chance of thriving in the challenging economic environment.