Is your business still viable?
Can your business recover?
You may need to work out whether your business is still viable. You can do this by:
Talking to your accountant
Use the Australian Taxation Office’s business viability assessment tool
Following the devastation caused by the bushfires, you may need to update your business plan.
An updated plan:
will give you a clearer idea of the way ahead;
may be required to show creditors that with their ongoing support your business is still viable in the longer term. The business.gov.au website has a detailed guide on how to write a Business Plan.
may also be required if you are preparing to apply for a Bushfire Recovery grant or concessional loan from the government.
How to update your business plan
Step 1 Work out your financial position
The first step is to prepare a cash-flow statement. It will include information such as:
- How much cash do you have?
- How much cash is likely to come in over the next three to six months?
- What payments can be deferred?
- What payments do you need to pay now?
You may also need to prepare a cash flow projection. This will help you predict what the business cash flow is likely to be in the next six to 12 to 24 months.
All this information is critical to determine the viability of your business. See Step 2.
The business.gov.au website has a detailed Business Plan template to help you work out your finances.
The template has the following spreadsheets:
- Balance sheet forecast
- Profit and loss forecast
- Expected cash flow
- Break-even analysis
Step 2 Work out if your business is viable
The Taxation Office has a tool to work out business viability. The cash flow information can be used here.
Step 3 Research
Update your research on the current market. Some of the questions you may need to ask include:
Has the environment changed as a result of the bushfires?
- Is there a new market you need to target?
- Has a new market become available?
- Can you move your business completely online?
Step 4 Work out your business requirements
Some of the issues could include:
- What are my stock requirements?
- Should I change the opening hours?
- How many staff do I need?
- Update your online profiles, including your website and social media accounts
- Get in touch with your customers to let them know when you are reopening.
Step 5 Get help
You may need to get some help from an accountant. The more information you can provide them, by following the above steps, the more detailed advice they will be able to offer regarding your business.