With the end of JobKeeper looming in the ever-nearing future, business owners are starting to stress about what this could really mean for their business and if they are ready or financially able to lose the support.
JobKeeper came at a time when lockdowns, isolating and social distancing was at its peak. COVID caused many businesses to struggle, especially the hospitality, personal services and the Arts any business that needed close human interaction to continue. JobKeeper was a lifeline to those businesses, allowing business owners to keep their staff and their door open.
With JobKeeper coming to an end on the 28th of March 2021, you may be asking yourself what now? If your business has made a recovery from the effects of COVID then this news may seem unnoteworthy. But, if you are like many small to medium business owners that have really struggled since the outbreak, then this news has probably put an added strain on your shoulders.
So, what happens when JobKeeper ends?
The end of JobKeeper means no more financial help from the government to keep your staff and your business afloat. The government implemented JobKeeper as a way of saving the economy and saving as many jobs for the everyday Aussies as it could. JobKeeper was never planned to be a permanent solution, in fact, it was intended to be short and temporary relief for businesses to give them time to recover, adapt and implement new strategies to thrive in a changed environment. Having already extended the scheme with a more restricted criteria, JobKeeper is now coming to a close as intended.
How can you adapt
If like many businesses, you are still in a position that requires assistance from schemes such as JobKeeper, then now is the time to take action and make important decisions that will impact your business now and into the future.
Have you been managing your cash flow?
One of the primary steps you can implement today that will make a drastic change to your business, is tracking and managing your cash flow.
Knowing how much money your business is making, in comparison to how much you are spending, will allow you to effectively manage your day-to-day operations and give you a snapshot of the financial health of your business. Understanding how your business is running financially will also allow you to see where you could be cutting costs or generating savings. Our financial experts here at W M Wright & Co are happy to assist you with our dedicated business support services here.
Once you have a proper cash flow system in place, you can then take the guess work out of
the decisions regarding your business. Knowing where you can cut costs, make savings and if
you are generating a positive or negative return, will allow you to make business decisions
While many business’ will be able to continue with a tighter budget, unfortunate as it is, some may have to let employees go to stay afloat. This decision will not be made lightly and should not be made in a hurry. Deciding now how your business will function after JobKeeper is gone, will allow time for employees to find a new job should you be unable to continue to pay them or if you have made the decision to close your business.
Knowing the financial state of your business will allow you to make informed decisions regarding your company and may even save your employees’ jobs. JobKeeper may be ending but your role as a business owner is not. It has never been more important for you to take the reins of your company and steer it in the direction of success, whatever that may look like. Here at W M Wright & Co we can help your business every step of the way during this difficult time.
If you would like to make an appointment and discuss how our business support services can help you before it’s too late, contact us today.