Survive and thrive in 2021: best tips for small business owners
[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” hover_type=”none” border_size=”0″ border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” last=”no”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””]
While life and business may still be far from normal, as showcased by the recurrence of snap lockdowns across Australia, the Government’s COVID-19 support measures are gradually drawing to a close. Following the conclusion of temporary measures around insolvent trading and debt enforcement on 31 December 2020, business loan deferrals and the JobKeeper program expired in March 2021.
As creditors will soon start to (if not already) take steps to enforce on debts in the ordinary course, the end of government support will put significant financial pressure on many cash-strapped businesses. Therefore, it is crucial for business owners to proactively manage the challenges ahead.
Here are 5 top tips to help you navigate your business’s rights and obligations when dealing with customers, contractors and suppliers and maximise the likelihood for the business to survive and thrive in the post-COVID economy.
Monitor and forecast cash flow: Stay well-informed of your business’s cash flow and financial performance. Diligently record and analyse past cash flow and update financial forecasts so that you are prepared for routine and unanticipated expenses alike.
Pay attention to the financial position of suppliers and customers: Look out for any warning signs of customers or suppliers that may become, or are likely to become, insolvent and what implications it may have for your business if they are put into external administration.
Protect yourself through security: Review existing contracts and agreements to ensure your position is protected by sufficient security. Consider taking additional security if a debtor is in financial distress, and double-check the relevant security agreement is validly registered.
Source funds: Where necessary, shore up your working capital by obtaining additional funds or credit from trusted capital partners, or consider whether there are funding facilities that may need to be rolled over or extended.
Consult a professional: If there is uncertainty around the business’s ongoing solvency, consider seeking professional advice to help you assess the financial position and determine the best way forward. The sooner small and family businesses get help, the more likely it is they can achieve a successful turnaround or restructure.
The team at Collins Wentworth are experienced in business financial matters. If you have concerns about your business’s financial position and wish to know more about how we can assist you, contact us today.
[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]
