Does your business plan stand up beyond COVID economic assistance?
Whilst the announcement of the extension of the JobKeeper program is good news for eligible businesses and their eligible employees, the government has expressed that the support that they have been providing through programs such as JobKeeper will come to an end eventually.
March 2021 is the next key economic timeframe for businesses to be aware of. This is because not only are the JobKeeper payments scheduled to end, but other key stakeholders will be looking to assess the business’ sustainability. These stakeholders can include banks, landlords, suppliers, and other creditors who will all be looking at ways that they are able to claw back some of the money that they have gone without so far. To date, most stakeholders are willing to cooperate and play the team game, however there will be a time when they look to recover their business debts.
With this in mind, it is now more important than ever to make sure that you have a thorough business plan to assist and guide your way through the economic crisis and out the other side. The business plan should cover all aspects of your business and include all things from:
- The business’ systems and processes;
- Key employees;
- Market/industry analysis;
- Promotional strategies;
- Details around your business’ goals and objectives; and
- A three-way budgeted forecast (Balance Sheet, Profit & Loss & Cash Flow Forecast).
By investing time in making sure you have a solid business plan that covers all aspects of your business, you will be able to make informed decisions about how to navigate your business through the economic crisis and have a road map for success going into the future.
With an increase in the level of uncertainty in the economic climate, stability is something to strive for. By having an effective and actionable strategic and financial plan in place you can measure, track, and plan your business performance as the economic climate changes.
If you are able to accurately and effectively identify where your business expenditure is not in accordance with the current economic uncertainty and lack of future visibility of what your business trading conditions look like (as governments, industry and regulators update policies), you will be able to prioritise your business spending and cash flow.
Future-proof your business to be in a stronger position to survive and thrive by investing in a business health check with PKF.