As the pandemic across Australia seems to be reaching a controlled state, one would assume that things may start moving back to a sense of normality. But with business uncertainty potentially peaking between now and June 2020, how will this shape the next 6 months?
Australia’s performance in adhering to Government recomendations to minimise the impact of COVID-19 (as well as our geographiocaly isolation) has lessened the domestic impact of COVID-19. Dilligence and maintaining best practice has seen to this success, companies across the country will now need to do the same.
Businesses will need to adopt an agile approach to market conditions given such extreme uncertainty. It is expected that for the next 6 to 9 months; forecasting with any accuracy may have to be on a monthly basis.
The narrative is changing to be more about how a resumption of business will take place. A number of external factors should be considered:
- The easing of Government imposed restrictions; and
- The effect of Government stimulus.
During this time of unprecedented uncertainty, directors will have to be resolute and honest about their business and its prospects. Consider the below questions:
- Have you implemented and are executing a Business Continuity Plan?
- Are you forecasting your cash flow at a minimum weekly cadence?
- Do you have sufficient access to working capital?
With the change in the narrative and the easing of restrictions imposed by Governments, it is now appropriate to be planning your businesses’ re-entry towards a pathway of ‘new’ normal operations. A return to work will involve a complex set of scenarios that requires detailed thought and planning.
Should you be interested in how your business and working capital shapes up right now, our friends at 888X have developed an obligation free Business Review of financial and non financial data which takes 30 minutes to complete and you will receive a comprehensive report with metrics and dashboard performance ratings with commentary.
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To find out more on improving your immediate cash flow, be sure to get in touch with us today to discuss how ScotPac can help.