The JobKeeper payment scheme has been a much-needed flotation device for many businesses and individuals, especially throughout 2020. JobKeeper scheme was a Government-led initiative that launched in March 2020 with the purpose to assist businesses that were negatively affected by COVID-19 when most of Australia was in a lockdown. This powerful move by the Government helped many small and medium businesses prevent closing their doors and helped thousands of individuals from losing their jobs. The JobKeeper scheme has been extended twice since being introduced but now it has ended on the 28th of March 2021.
After a full year of support, we understand that transitioning back to ‘normal’ may be a stressful time for some, especially if your business is still heavily affected by the lockdowns (past and present). This article hopes to help you transition smoothly with all the crucial information (and tips) required to remain successful in your trade business.
Time for a Change
Most business owners at this point are searching for permanent solutions to nursing their businesses back to health since the lockdown/s lasted longer than anticipated (and the unknown that there could still be more).
The burning questions on everyone’s mind are: “What will happen when the cash safety nets are removed?”, “How will my business cover costs?”, “How can we adjust our operations and still grow/maintain our revenue?”
The key to success is keeping tabs on your business cash flow in and out. Proactively dealing with fluctuating sales, recognising opportunities, and planning is also crucial. This will allow you to build a reserve of cash for a “rainy day” that you can draw on when things get tight, or when unexpected events occur.
The 2020 pandemic has drastically changed the way we do business and highlighted the need for “emergency funds”. Businesses implemented various cost-cutting initiatives to get through uncertain times and review business processes to make them streamlined and functional. This year is the year to work smarter not harder, but most importantly keep your trade business compliant and actively trading. Now is the time to review what has worked well, what you can continue to do, and what changes you should make to decrease costs and steadily increase your business sales.
Consider New Cost-Saving Strategies
You may have realised that renting a commercial office space is not essential for your business. Most trade businesses have functioned well from a home office and/or shared office space. Having employees work remotely is now widely accepted and makes it easier for businesses to cut back expenses associated with renting an office space.
Another good cost-saving strategy is to review your ongoing costs such as cleaning fees, software subscriptions and insurances. Renegotiating contracts with your suppliers or contractors could also benefit your business. Outsourcing accounting and other departments instead of having in-house staff may also help your business cut costs and streamline processes.
The Government is trying to ensure that small businesses are supported as they navigate through uncertain economic conditions. A new subsidy was launched: JobMaker Hiring Credit scheme. This is a new subsidy offered to eligible employers and is a payment-based program to incentivise employers to hire people aged under 35. Its aim is to try and boost the employment prospects of those that were affected the hardest during the COVID-19 restrictions. It’s been active since the 7th of October 2020 and intended to be active until the 6th of October 2021.
If you’ve found this information helpful but need more assistance on how the end of the JobKeeper program will affect your business, it’s time to book a consultation with us. As a construction industry-specific expert, we work with businesses with a turnover from 1 to 30 million, so our knowledge is exceptionally diverse within this space. Call us today.