PLUS 14 Ways to Help Your Business Cope with a Recession
Some Business Owners are Making 2 Mistakes
A lot of businesses are still surviving because of the various Government payments now being paid.
However I have already seen some business owners becoming complacent about this because their Cash Flow is OK.
But they are making 2 mistakes.
One Mistake that I’ve Seen
Firstly they have given up marketing.
They think people are locked down and cannot come to their business (except online) .
So why spend money on marketing?
Lockdown is easing now and it is likely customers will want to get out and about and spend money soon. If they have forgotten you by the time they can get out it will hurt your business when they can spend so, depending on your cash flow, you should restart your marketing now to keep your brand in their minds for that time.
Social Media is a low cost way to keep your business in the market right now. I have one client who has been so busy sorting out refunds and credit that they stopped thinking about marketing even though their lead time to get bookings is weeks. They will now be starting a planned marketing campaign by early June for bookings in July and August.
Secondly the Government will be reviewing all of their handouts in June to “tweak” them.
That could mean stopping them completely or reducing them or limiting who qualifies.
This is despite them saying it would continue until September as the cost of all of this is huge. If you received the first cash boost via your BAS this month you will automatically get the balance after you lodge your June and September BAS.
However if you are surviving only because of Jobkeeper what are your plans after it stops or reduces if it does?
Start planning your Cash Flow without it to see how you will look then.
I think a lot of businesses will close permanently once it does stop as they have not been marketing up until then and their customers and cash flow will not be enough to survive.
Do a cash flow forecast based on no Government money and be realistic about the financial health of your business when the Recession we will have starts to impact even after the health issue has been contained.
Please contact me if you need any help with this planning to survive.