You don’t need to be reminded that we are living through an extraordinary chapter in modern history. The global COVID-19 pandemic has brought much of the world to a virtual standstill, and businesses of all sizes and industries are feeling the impacts. With non-essential services forced to cease trading (including bars, pubs, beauty salons, cinemas, indoor sporting centres and more) and strict rules around public gatherings and ‘social’ distancing introduced, the resilience of business owners is being put to the test. In fact, the latest stats suggest that, as of mid-March, over 60% of Australian businesses have been impacted by the coronavirus and that a ‘super majority’ of those impacted are our fellow small businesses. With 81% of businesses with an annual turnover of less than $5 million constituting the highest impacted group of companies in the country, it’s a ‘sink or swim’ time for many small businesses.
As a small business ourselves, we too are having to adapt quickly to this new, remote work world order whilst grappling with what government stimulus packages and new restrictions mean for us and our clients. One thing, however, is crystal clear: we must learn to ride the waves of uncertainty, and do it quickly. There are many practical ways that small business owners can respond to these challenging conditions. Here are our top five tips for riding out this difficult period and keeping your head above water.
1. Get across the subsidies and packages available (and make sure to register if you haven’t already)
As cash flow becomes a major challenge for many small businesses, it’s important to understand what financial support is available to you. In recent weeks, the Australian Government has announced a series of new subsidies and financial packages specifically designed to support businesses impacted by COVID-19. If you’re unsure what your business might be eligible for, the Australian Government’s website is the best place to start. Here you’ll find information and links to a range of subsidies that may support your small business, including:
- New measures to put a hold on evictions for renters across commercial and residential tenancies
- Support available for sole traders
- Information about the new JobKeeper Payment for employers and employees
- New provisions for boosting cash flow for employers of small and medium-sized businesses
There are also state-by-state support packages available, including a number of stimulus options released by the NSW Government such as payroll tax relieffor businesses, changes to the tax-free threshold, as well as NSW Small Business Grants for those highly impacted by COVID-19. For more on the grants, loans and financial assistance available for small businesses in NSW, visit the Service NSW website here.
Once you’ve accessed your eligibility, be sure to register for financial support as soon as possible via the Australia Tax Office’s (ATO) website. With so many businesses and individuals impacted across the country, it’s wise to submit your intent to claim as soon as you can to ensure that you receive access to these subsidies when you need it most.
2. Ensure you’re working sustainably
For many small business owners, working from home presents a number of challenges. Creating clear boundaries between work and your personal life during such a difficult time can seem impossible. Although working frantically around the clock can feel like your only option right now, giving yourself space and time to rest and switch off is just as important. Simple strategies like these can help maintain sustainable working habits:
- Designate a space in your home for work: whether you’re using a spare room or transforming your dining table into your desk, do your best to create clear signs that indicate when it’s time to work (and when it’s time to not). This could be closing the door or putting on a pair of headphones that signal to your household that you can’t be disturbed. (For those with young kids at home or pets that love a cuddle, we know this is easier said than done!)
- Create a routine: no matter where you are working from, stick to dedicated office hours each day to create boundaries between your personal and professional life.
- Be aware of your energy levels and emotional capacity: when left unchecked, feelings of stress and anxiety can quickly become overwhelming. Check-in with yourself on a daily basis to ensure you’re taking care of your physical and emotional health during this difficult time.
- Take mini breaks: don’t spend hours every day sitting at your computer without moving or taking a break. Productivity and creativity is not correlated with how long we sit at our desks. Set an alarm every 30-60 minutes to remind you to stand up, walk around, stretch, or make yourself a cup of tea. Our physios or chiropractors might not be able to help us right now, so we need to make sure we’re taking care of our bodies when we work from home!
- Schedule exercise and fun into your day: subscribe to a pilates or dance class on YouTube; take the dog (or yourself) for a walk around the block; download a meditation app like Insight Timeror Headspace,or boogie along to one of the coronavirus playlists on Spotify. A bit of exercise and daily fun that takes your mind off the world around you, is critical for maintaining our health and wellbeing, especially during this time.
3. Control what you can control
In uncertain times, shifting our focus to the things that we can control can be a powerful strategy for protecting our emotional wellbeing. With the never-ending news cycle churning out a constant stream of new information, it can be all too easy to let these headlines consume us. We might not be able to do much to control outbreak numbers (beyond what we already know about distancing and washing our hands) or the measures put in place to slow the spread of the virus, but we can control how we lead and run our businesses.
Refocus your attention on setting achievable goals (no matter how small) for yourself and your business in 2020, and develop a plan of small steps and actions to help get you there. By focusing on what you can control, you’ll be in a much better position to ride out the challenges that may come your way over the weeks and months ahead.
4. Reach out for support from your community
Loneliness is a feeling we all experience at some point in our lives. In fact, 40% of Australians have reported multiple periods of loneliness during the past decade. And, with nearly 1 in 4 Australians living alone, the impacts of self-isolation in response to COVID-19 can present big challenges for individuals across the country and beyond.
Although we are physically apart, that doesn’t mean we need to cut off all contact with our support network. In fact, now is the perfect time to leverage the strength of our community to overcome the hurdles we’re facing as small business owners. Make the most of the power of technology to stay connected with your team, colleagues, support network and clients during these uncertain times, whether that be by setting up regular Skype and Zoom calls or making the time to pick up the phone and connecting. With our community at our fingertips, now is the perfect time to use ‘social’ media in the way it was intended: as a tool for connectivity in a time of physical distance. And, if you’re feeling in need of professional support, you can always reach out to one of these 24/7 support services:
- Beyond Blue’s 24/7 support line on 1300 22 4636
- Lifeline’s 24-hour crisis counselling and support service on 13 11 14
5. Do some business scenario planning
We might not know what the future holds, but we can take proactive steps to plan for a range of potential outcomes. That’s exactly what business scenario planning is all about. Particularly during such an uncertain time, small businesses can gain powerful insights into how they can respond to potential challenges in the months ahead by making the time to do some scenario and continuity planning. To get started:
- Clarify the key uncertainties that your business may face in the coming months (choose two or three of the most likely to form the basis of your scenarios).
- Create a range of possible scenarios: using these uncertainties, try to predict what might happen to your business by creating a number of possible future scenarios.
- Consider the implications: with each scenario in mind, think about how your business would be impacted by these potential outcomes.
The key benefit of business scenario planning is that it helps to alleviate some of the uncertainty and stress associated with the unknown. Once you explore all potential options, you will have a better understanding of what strategies your businesses could put in place to weather the turbulent conditions you may face in the future. If you’re based in NSW, Business Connect is a great place to start. With advice and information in five different languages to support businesses survival, improve resilience and increase their long-term viability, visit the Business Connect website here.
Remember: no one is an expert in dealing with a global pandemic on this scale. However, that doesn’t mean that we can’t rise to the challenge. While we’re not saying that this is easy or that it will be smooth sailing (or surfing!), by making the time now to invest in your ability (and therefore your business’ ability) to ride the waves of uncertainty – is worth it. We are all in this together.
If you’re concerned about how your small business may fare in these uncertain times, don’t go it alone. Numble’s team of qualified bookkeepers and BAS agents can help take the stress out of running your business. From keeping you updated on what support your business is entitled to, through to managing cash flow and maintaining up-to-date financial accounts, our online bookkeeping services enable you to access this information anywhere, anytime. Get in touch with us today by giving us a call on 1300 852 575 or book a free consultation with a Numble bookkeeping professional.
