Business planning in an uncertain environment
With the end of Jobkeeper approaching for those businesses still meeting eligibility criteria, and other tax concessions being phased out, business owners need to look beyond March.
The COVID-19 crisis has provided some indirect beneficial outcomes. It has in many ways been a catalyst for businesses to more closely examine how they operate, who they transact with, and the efficiency and profitability of their businesses.
There has been a greater focus on planning, strategy, active management of production and sales, sales and marketing and re-imagining of business. While cash flow is always key, business resilience will have as much to do with recovering after COVID-19 as it has in how businesses manage temporary setbacks.
For businesses that have not or will not adapt, the end of concessions and cash flow lifelines may be terminal.
The greater the level of control we have over our environment and our business processes, the greater control we have over outcomes such as profit, improved cash flow and a stable workforce. Many would argue that we are still operating in an environment that we can’t control.
Fear created by uncertainty, limits our ability to plan for the future. Many of the ten issues identified earlier can’t be controlled.
What we can do is understand the “new rules” for the business and the compliance environment we operate in, and control our responses. By understanding the new rules, we can decide with greater clarity the directions and strategy our business will take. We can be more purposeful in our decisions and actions.
However, we are still faced with uncertainty regarding the taxation environment. The taxation environment and the level and accessibility of government subsidies or assistance during the next phase of the pandemic may decide whether business can return to a normal healthy position. Until announcements are made as to what the tax and stimulus measures will be, a lot of decisions will be deferred.