Your business recover plan
January 1, 2022
Your Business Recovery Plan
As businesses emerge from Covid-19 restrictions, for many 'Business as Usual' has become 'Business Unusual'. So, how do we navigate our way towards a sustainable new normal?
During lockdown, we focused on crisis management, activating relevant Government support packages and doing our best to build cash war chests.
Now we enter the recovery phase on the way to establishing the new normal. We have all learnt lockdown lessons. We have discovered risks in our business model that we may not have appreciated before, as well as opportunities that are there for the taking.
Now is the ideal time to document a clear Business Recovery Plan:
- Defining what you, as business owners, want from the business; this includes cash drawings, your role, hours of work and holidays.
- Establishing your budget and break-even analysis to ensure you are generating enough cash to cover all expenses including tax, personal expenses, loans and asset purchases.
- Determining your critical KPIs; the most important things you need to measure to track your progress towards achieving your targets.
- Identifying your opportunities and vulnerabilities; the factors that will most impact your business recovery.
- Determining how to manage your most critical challenges.
- Undertaking a risk analysis of each of your departments, e.g. product / service development, marketing, sales, human resources, finances, technology, etc.
- Identifying necessary finance requirements and what is needed to apply.
- Establishing your 12-month and 90 day goals to ensure you are clear on your priorities
Running a business from home—whether as a sole trader, freelancer, or small operator—has many perks. But when it comes to selling your home and potentially saving on tax, recent guidance from the ATO serves as a reality check.
The stakes are high, and now the Tax Ombudsman is getting involved.
Self managed superannuation funds (SMSFs) can offer significant flexibility, allowing the members to make investments and enter arrangements that may not be available through retail or industry superannuation funds. However, However, being an SMSF trustee does come with important responsibilities to ensure that all dealings comply with superannuation law.
