What you can do this week
ACTION PLAN FOR BUSINESSES AFFECTED BY COVID-19
- Contact your bank manager for possible assistance or relief. Ensure that the companies own financing (if any) remains viable in the current situation.
- Revisit your variable costs.
- Cancel non-essential subscriptions etc.
- Consider contacting suppliers and negotiating to extend payables.
- Reach out to all creditors and debtors.
- Negotiate rent reduction with your landlord.
- Apply for COVID- 19 Government Wage Subsidy here.
Undertake financial scenario planning and cash flow projections.
- What revenue can I expect in? What bills do I need to pay? These scenarios will help with forward planning.
- As times are uncertain, it is suggested you prepare 3 scenarios: conservative best case, likely and worst-case scenarios. How long will the business survive in each scenario?
- (You can use this handy template)
Create an action plan for each scenario.
- Consider how many staff you need to keep on – and what will they do
- If you need to start restructuring or reducing hours, how and when will you do this
- Do you need to halt production of certain products or reduce services?
- Consider the following areas: People & Productivity, Customers & Marketing, Operations & Processes
- Create a list of priorities and key tasks. Who is going to do what, and when do they need to do it by?
Apply for free professional advice. Under a new NZTE scheme, up to $5,000, fully funded business coaching and professional support are available from approved accountants, lawyers and HR professionals will shortly be available for Rotorua businesses who are GST registered.
Have employment questions? Contact EMA’s (Employer and Manufacturers Association) free helpline for employment advice (specifically aimed at employers) Phone 0800 300 362.
Consider reducing guaranteed work hours as an alternative to redundancy.
- Many employment contracts state you must pay you, employees, 40 hours. Given the uncertainty around the timeframe of the non-essential business closure and the difficult financial environment when we get back to work, reducing your future legal requirements to employees ( ie: guaranteeing staff a minimum of 35 or 30 hours a week – instead of 40 ) may potentially help you to reduce redundancies and provide staff with income certainty for longer.
- For information on how to reduce an employee’s hours or the legal process required to make them redundant https://www.employment.govt.nz/ending-employment/redundancy/ or here https://www.business.govt.nz/hiring-and-managing/ending-employment/employee-redundancy/
Source: Rotorua Business Chamber