The Coronavirus pandemic is dominating the headlines of every media outlet in Australia right now and its consequences are already starting to be felt by the business community. And while it’s important to be aware of the situation unfolding, there is a fine line between preparing appropriately and over-reacting. The consensus is that the effects of the virus will have a significant impact on the Australian economy, which means that business continuity planning is essential. Your TJL Manager is here to help with any questions or concerns you might have so please don’t hesitate to get in touch with us at any point.

This information is thanks to the team at Knowledge Shop.

Staffing

The government is urging business owners to take a ‘flexible approach’ to staffing over the coming months, but what does this actually mean in practical terms? 

Firstly, business owners may need to take proactive steps to contain the virus within the workplace, particularly if a team member becomes unwell or is vulnerable to getting the virus due to a friend or family member being diagnosed. Employees who can perform tasks at home may need to be set up with a temporary home office. To accommodate this, business owners should make all necessary provisions for employees to take home laptops, files and anything else they may need to fulfill their duties.

Business owners may also need to negotiate with staff regarding time taken off due to illness or the need to care for others. Any decline in business will rectify itself within time, and it will be important for businesses to have the correct staffing levels to be able to cope when things pick up. Rather than let go of casual staff due to a temporary downturn in business, a better idea would be to reduce hours and only if necessary.

Risk Management

An important part of preparing for the impact of coronavirus is to thoroughly identify the risks to your business and make informed decisions regarding suppliers, costs of materials, logistics, demand variability and potential disruptions.

Where weaknesses exist it will be important to explore alternatives. Can you reduce costs as demand falls? Can you look for alternative suppliers? If you have stock that is nearing its use by date, you may need to offload this and then determine how much of it you actually need to replace in the short term.

On the flipside, some businesses will find opportunity in a crisis such as this. Businesses with a competitive advantage may be able to exercise that to maximise their market share, or they may be able to attract new staff members if a rival business makes staffing cuts.

Cashflow

Cashflow is critical in a potential crisis, and should form a central part of your business plan. It is important to have enough capital in reserve to see you through at least three months. If you need advice on how to free up capital and maximise your cashflow, or any other elements outlined above, please call your TJL Client Manager at your earliest convenience and we will be happy to assist you.