Posts Categorized: Business improvement & efficiency
Update on extended Victorian Gov covid support
Further details have come to hand about the Victorian government’s extended covid lockdown support. There are however a number of initiative extensions await clarification and/or legislation.
Commercial Tenancy Relief
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We can now clarify that the extended system that will run to January 2022:-
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At least half of any further rent reduction must be waived; no more than half of the rent reduction can be deferred.
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From 28th July, landlords can only lock out tenants after receiving Victorian Small Business Council permission.
Licenced Hospitality Venue Fund
- In order to qualify a business must have both a liquor licence and a food certificate.
We will post further details when they come to hand.
Re-instated commercial rent relief
On 28th July, the Victorian state government announced a re-introduction of a covid rent relief system for commercial tenancies.
A business must have suffered a 30% decline in turnover to qualify. We are still awaiting legislation so it is not yet known what period is measured.
The rental relief is commensurate with the decline in turnover. So as per the government’s example, if your business suffered a 40% decline in turnover, then you your business will be entitled to a 40% reduction in rent.
Please contact us if you need help in quantifying this.
It is also unclear as to whether the rent reduction is in part a deferment. We will post an update when details come to hand.
Where a landlord doesn’t agree to provide the requested rent deduction then the matter can be referred to Victorian Small Business Commission.
To support landlords who have suffer from their decline in income, assistance can be received under a $80 million Landlord Business Support Package. One would think that allocation will be quickly exhausted so we would recommend applications being made properly.
Survive & Thrive webinar
In these difficult times it is crucial to have your finger on the right button.
And with that in mind we welcome you to join our next Survive & Thrive webinar.
The webinar will feature the usual Things To Do over the next month and a case study section (which this time will be planning).
Our guest speaker Peter Sleight will discuss Eating for Better Health.
The webinar will run for 25 minutes from 5.30pm on Thursday 5th August. You can reserve your place by clicking here clicking here
We look forward to seeing you on the night and we welcome your passing this invitation on to family, friends and business associates.
Lockdown #4 state assistance
The Victorian State Government today announced it will provide assistance to those most affected by this current lockdown.
There will not be across the board assistance to all businesses; just to those most affected.
Brief details have been announced about 3 programs:-
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Licensed Hospitality Venue Fund 2021 – under which $3,500 will be paid to each venue holding an eligible licence and food certificate.
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Business Costs Assistance Program – $2,500 will be paid businesses operating in industries that cannot work during the current lockdown and cannot operate remotely.
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Victorian Events Support Package – $20 million will be set aside to support operators in the events industry. Further details are to be released.
It would be inappropriate not to point out that such financial support will not cover the losses for many business owners. There would be many restaurants that have been forced to throw out $5,000+ of food. It’s a straight hit to the bottom line when not being able to earn any income. And it comes on top of the losses from the Valentine’s Day lockdown and the lockdowns last year. So get out there and support your local restaurants and indeed small businesses.
What can you do now?
Applications will open on Wednesday 2nd June. You can however register for the Business Victoria Update newsletter – to do so click here.
We will keep you updated. Please though don’t hesitate to ask us any question you may have.
Survive & thrive webinar
As we head into a brave new post-JobKeeper world, there is much to keep abreast of.
So our Survive & Thrive webinars are back!
About the Webinar
In our next 25 minute webinar we will
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Update you on actions required in May (including new rules for those who employ casuals).
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With a hot property market, our guest speaker Martin Ryan will explain recent property loan developments.
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And our case study will explore the peril of selling to customers who may not be able to pay you. This has never been so important now that so many business don’t have the JobKeeper financial safety net.
We will also feature special client offerings – and one will of great interest to many.
The webinar will run from 5.30pm, so grab a cup of tea (or beer) and tune in.
And if you away from your home or office, you can still watch it on your phone.
You can register by clicking here
We do hope you can join us on Wednesday, 5th May at 5.30 pm
How are your customers affected by JobKeeper?
There has been much press about the ending of JobKeeper and what it means. The press has largely focused on the most exposed industries such as cafes and restaurants, particularly those in the CBD.
So the question is how exposed is your business if your customers are at risk?
At worst, it may be best to not sell to someone who is at risk of falling over.
So, if
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it costs you $600 to service a $1,000 sale and
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they go down owing you $2,000
Then you will need sell someone else another $5,000 just to cover that loss. It’s a tough assignment at any time let alone in today’s market for many business owners.
The sad reality is that most accountants don’t ensure their clients accurately record and report on the trust cost of servicing the sale of a good or service. It’s really really important to know this so for so many reasons – but in context to the discussion here, knowing what is at stake when making a sale that may not be collectable.
So think about whether you should continue to sell to existing customers. Another option is to ask for payment up front.
And now would be a good time to review your terms of trade. And with that, you should consider whether it is worth protecting your interest under the Personal Property Securities Act (PPSA) – the modern form of Romalpa clauses. It’s a measure of last resort but can save your bacon. It’s beyond the scope of a blog to explain how you can use PPSA but we would be happy to explain it to you and refer you to a qualified solicitor to attend to the necessary paperwork.
So in these difficult and unusual times:-
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Don’t sell to anyone without evaluating their ability to pay.
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Put the proper protection mechanisms in place.
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Be crystal clear on what it costs you to sell your goods and/or services.
Want to better understand your situation? Then ask us as we have decades upon decades of experiences gained from a range of clients operating in an array of industries.
Can I keep my business open?
Can I keep my business open? It is understandably a very common question.
Essential businesses can stay open. Non-essential businesses can’t.
So what is a non-essential business?
You can find out by reading the Victorian state government direction order which you can access:-
We take this opportunity to remind you to return to this web page for daily blogs on a variety of short videos and business survival tips (including health and well being).
As we are all in this together, we are determined to help as many business owners as possible. We would therefore appreciate you passing on a link to any article you find of interest to your team, family, friends and business associates.
The perils of discounting (1 min video)
Discounting is a commonly employed strategy in tough times. It can also be a good way to sell old stock.
It can however be a faster way to the end.
As we show in the following video, discounting needs to be augmented with other strategies.
https://www.loom.com/share/fbabc5c1a4934dc3927c08149bb4fda1
We welcome the opportunity to explore with you if discounting is appropriate and how to mitigate the bottom line loss.
How long can you last without customers (1 minute video)?
How long can you last without customers?
It is a question most businesses are asking at the moment.
And it is one that keeps people awake.
We can show how long you can last – click on the following video to see an example.
https://www.loom.com/share/588fb889519e4eb19a853f6adc097976
Moreover, we can show the outcome from changing multiple drivers in your business.
So don’t like awake at night worrying; replace worry and fear for a predictable future. And there’s nothing to fear from the meeting itself as we use Zoom Meetings.
Staying afloat with better supplier terms (2 min video)
Want to know how much lost sales can be covered by getting a 5% discount from suppliers.
You might be very surprised.
Please click on the following link to find out:-
https://www.loom.com/share/f1f52aba9c164833a94cf2c959baa2f4
We welcome the opportunity to show you how you can safeguard your business in today’s COVID-19 by making any change to the key drivers in your business.