Key ways for small business survival
FLEXIBILITY, innovation, resilience and frugality will be the key concepts for Tasmanian small businesses to survive economic uncertainty, says a local tax agent.
Louise Bloomfield, of Bloomfield and Associates, said she had heard dozens of horror stories from small business owners and was trying to help them adapt.
“If small business only focuses on what government handouts they can get, they are already lost,” she said.
“Those with cafes can use the commercial kitchen for cooking up meals that could be home delivered.
“Those with private tour car businesses could consider approaching Coles and Woolworths to see if they could support the delivery system.”
For staff working from home, Ms Bloomfield said it was important to understand now what can and cannot be claimed come tax time.
“Take note of the square area of your office space in relation to the rest of the house — you need to keep a diary of how many hours you’re in your office working and you’ll get a number of cents per hour to cover expenses such as electricity.”
Audit your business: Make a list of all the creditors you owe money, the recurring bills you pay, the people who owe you money and the plant and equipment in your business. Make a list of all the skills and abilities you and your staff have – not just relating to the current business function.
Cash flow: Engage with clients who are late paying and get them to establish a payment plan. Work through your creditors and your expenses — are there any that aren’t necessary? What funds are available such as redraw on your mortgage, credit cards and savings that you are prepared to use to keep things afloat.
What can you do differently: Looking at all the skills sets, inventory and equipment you have — is there a service or product you could sell that is more suited to today’s environment?
How to work in self isolation: Create a work space that is away from distractions like TV. If you have young children, see how you can keep them occupied yet supervised. Establish personal discipline – map out your day either by periods of time or by completion of jobs.