Welcome to Spring where the weather becomes warmer, the days get longer, and there is increasing discussion about what happens after JobKeeper. Whilst some businesses will continue to qualify for JobKeeper subsidy, albeit reduced, there is much apprehension as to the ending of JobKeeper and how that may impact not only businesses, but importantly our personal circumstances.
It is likely that people may feel a sense of uneasiness in uncertain times, like when the Government announced the closure of certain businesses back in March. If we rewind 6 months, astute business owners took action as to their circumstances. This meant that the business owner reviewed their costs to see what efficiencies could be gained, appraised their client base to ensure they were dealing with quality organisations to ensure bills would be paid, for example. These owners also explored opportunities that were presented and identified threats to their business and devised plans as to how they could be minimised. And of course JobKeeper was introduced which reduced some pressure around cash resources to fund labour and retain staff.
So in the current climate what is different? If there is a feeling of uncertainty then I suggest you take similar action. What will potentially threaten my business? What opportunities exist? What action do I need to consider to make my business more efficient? Do I have the right team in place? Am I dealing with the right clients? The list goes on. I strongly believe that uncertainty around cashflow will create the greatest level of stress. I cannot recommend highly enough that the first thing you should consider is to project your future trading, not only whether you are profitable or not, but importantly project your cash position.
I also recommend you consider your cash resources available. In recent dealings with major banks, the sourcing of funds has become harder, there is no doubt, however I encourage you to consider your borrowing potential at this time. In the event that business or personal conditions were to worsen, it is of some comfort to have access to cash funds in time of need. Perhaps it is also an opportune time to ensure you are getting the best deal from your financier in terms of rates, costs and security provisions.
We, at Maxim, are here to assist in any way we can. Whether it be preparing your business financial forecasts and assessing where the business is at, understanding your borrowing potential, or simply being a sounding board or support, please reach out and contact us.
Enjoy the warmer weather, the longer days, and we look forward to catching up soon.