Keeping your business going

Keeping your business going through disruption

COVID-19 will have an ongoing impact on local businesses well into next year.

There is no doubt that COVID-19 is one of the biggest threats businesses in Western Australia has ever experienced. To survive the disruption and keep your business going, decisive action is needed.

3 VISIT smallbusiness.wa.gov.au/blog for a breakdown of the different stimulus and relief measures.

A host of factors outside your control can cause unexpected challenges for your small business — ones that you may have weathered before. From a key staff member becoming ill and cash flow challenges, to environmental issues like drought and bushfires, the horticultural sector is used to adapting and overcoming disruption. However, most small business operators in WA have never experienced anything like the challenge of COVID-19. With unemployment predicted to rise to around 10% as a result of the crisis, travel restrictions likely to remain for some time to come, and major markets such as hospitality and food services amongst the hardest hit, COVID-19 will have an ongoing impact on local businesses well into next year. The task for small businesses will be to take business continuity measures that can be sustained through the medium to long term to keep surviving, and ultimately to recover from the disruption.

Check your eligibility for government assistance

Both the Australian and Western Australian Governments have announced several stimulus packages to help business owners manage the disruptions to their business. Visit smallbusiness.wa.gov. au/blog for a breakdown of the different stimulus and relief measures and who they are designed for. If you are applying for the JobKeeper Payment to keep your staff on board, it is a good idea to regularly check the ATO’s JobKeeper website ato.gov.au/general/ JobKeeper-Payment for updates.

Understand and act on your current financial position

It is essential to make informed decisions based on your current financial position, as this will determine your ability to trade through this period and meet your financial commitments. Contact your accountant to discuss options available for your situation and plan how you could minimise the impact on your business. Some measures you might like to consider include: • Speaking to the Australian Taxation

Office (ATO) on 1800 806 218 about deferring certain tax obligations (Note that deferring payments may impact on your eligibility for other stimulus measures). Contacting your bank or lender to discuss new loan deferral arrangements for small business. Their hardship team may also be able to assist with relief from personal mortgages or loans. The Australian Banking Association website (ausbanking.org.au) lists hardship contacts for each bank. Asking your insurance broker about payment deferrals or refunds, as the Australian Competition & Consumer Commission (ACCC) has granted interim authorisation to allow these measures for businesses impacted by COVID-19.

Communicating with any other creditors to see what payments you may be able to defer, while following up with your debtors to see which overdue payments you can call in. Considering withdrawing funds from your superannuation. Tax-free withdrawals (available to applicants who meet specific criteria around coronavirus financial disruption) are capped at $10,000 in both the 2019–20 and 2020–21 financial years. The access to super can be applied for via the my.gov.au portal. Discussing rent relief with your landlord. New legislation has been passed in the WA parliament and a code of conduct will soon be in place, aimed at protecting small business tenants from a range of prohibited actions while they are financially affected by the pandemic. Land tax rebates have also been created to assist landlords. More detail is available at smallbusiness.wa.gov.au and you can seek guidance from Small Business Development Corporation (SBDC) advisers as to where you stand.

Communicate with your stakeholders

Clear stakeholder communication about how your business is running during the COVID-19 pandemic will stand your business in good stead when it is time to get back on track. Keep your customers updated about your services, for example if restrictions that affect your business are eased and allow you to carry on more business as usual, let them know.

3 KEEP your customers updated about your services.

Assess whether you are making the most of all the communication channels available during this time. With in-person contact restricted, it’s a good time to put digital communication platforms like websites, social media and online meetings to use.

MORE INFORMATION

During the COVID-19 pandemic, small businesses in WA can turn to the SBDC for practical, up-to-date information and business advice on dealing with coronavirus. Visit www.smallbusiness.wa.gov.au/

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