Financial Strategies For Your Business
Updated: Apr 24
In the sixth Survive and Revive session we introduce our expert panellist Scott Norrish, a licensed financial advisor and CEO of Maxim Advisors, with over 20 years’ experience in the industry. Known more as a mentor and thought provoker to his clients than just an advisor, Scott provides strategic and personalised advice to help stabilise people’s businesses, and ultimately their lives. Given the turbulent climate we’re facing today, the webinar delivers financial advice for business owners, as well as information that will help you wrap your head around the Job Keeper Stimulus Package.
· Right now, there are many what ifs with most people questioning where to start. Scott tells us to get back to the basics - this is about understanding your business model.
· Use a balance sheet to review your accounts and to see the working capital you’re operating with. This helps when managing your bill payments.
· Your capital will start to vary in this period, and this is when you need to look at profit and loss. Inflows are unknowns at this point, but outflows are controlled. We may need to tighten our belt and reprioritise - instead of buying luxury items, think about needs.
Advice for Business Owners
· A key characteristic of successful businesses is the value they place on their team.
· Survival is so important and when looking at the other side and thinking about the future, you’ll need a good team ready to go when that time comes. So, support them, communicate with them, understand what they’re going through, keep motivation high – this will help the business succeed in the long term.
· Keep your chin up – reflect on why you got into this business in the first place!
· Anything we do right now won’t make a huge financial difference in 6 months. What will make a difference is getting your attitude right. Surround yourself with good and trustworthy people – whether that’s friends, family, employees, financial advisors or lawyers.
Revenue Risk Taking
· Walk in the shoes of your clients and ask what is your business’s competitive advantage and why do people spend money with you? If you don’t have a good grasp of this, it’ll be hard to understand where you are or where you need to be when we come out of this.
· Forward-thinking is vital. What will your customers look for in the future? How will your business adjust to suite those demands? This is how you stay ahead of the curve.
· Scott gives the example of the different restrictions placed on international travel and local travel in the following months. The risk rating for domestic travel is not high, so use this knowledge to change tactics and take advantage of what will be working.
· Re-strategise and don’t be afraid to try something new!
· When there is an industry shift, often the survival strategy is based on ‘if I can be open, I’ll stay open’.
· Often this is a quick reaction to external factors, so be sure to consider whether this is the right move for your business.
· Even if your staff can’t be onsite, other rebound strategies include engaging with social media or clients and brainstorming ideas on how to bounce back. This facilitates active participation and engagement amongst your team and with your consumers.
· $1500 a fortnight and acts as a wage subsidy.
· Helping small businesses continue running and engaging with staff.
· Requires you to be affected by a revenue drop of at least 30% compared to the same period last year.
· As an employer, you are obliged to pay your employees this subsidy. Casuals need to have been with you for at least 12 months. You can ask employees that have been stood to work, but they do not have to comply.
· If an employee is continuing their work, you must pay their super. If a person is stood down without any hours, you do not pay their super.
· Remember to negotiate with your team and get these people in a position where they want to work for you on the flipside.
· Contractors and sole traders can apply for the subsidy in their own right if they have their own ABN and meet the requirements.
· As part of the Fair Work Act, as soon as there is a stoppage, employers have the ability to direct staff what to do. This means you can reduce staff hours to equate to the JobKeeper payment, but this requires an open discussion with your team. Engage with your employees and seek their consent.
· If directors of companies are on the payroll they can also claim the payment.
· Scott advises that you will be able to put together a submission if you fall outside of these requirements.
· Apply for eligibility at ato.gov.au.
If you have any other ‘curly questions’ as Scott puts it, or need more technical advice, you are welcome to send Scott a direct email. You might also find your answer in the next webinar with Scott on Wednesday 8th April which will focus on personal finances. To register, follow the link below: