As we all enter the unknown for a 20/21 fiscal year and our requirements to establish a budget and new strategic business plan, it is still an essential requirement that even through uncertainties surrounding this coronavirus we must plan through using as many assumptions as possible to include risk mitigation.
Yes I know this will be difficult as you along with many others accept the uncertainties of what the world may do?
But one important aspect of future planning is critically important.
Removing our reliance on China and the overseas supply chain to refocus on Australian sourcing and a recovery of the Australian manufacturing capabilities.
I can name a number of businesses in Australia that can and will compete unfavorably with overseas suppliers and at the same time remove the uncertainty of interruptions of future supply.
This is when business owners must take the time to sit down and do their planning with a sole focus on keeping the company afloat. This means they will need to determine the tools to maintain all financial and operational goals.
Apart from the operational side of the business there will undoubtedly be an urgent need to reevaluate how the business is marketed. If you want to compete, especially against overseas, you must have an effective online presence including a professional website that hits on the very emotional aspect of your services.
In these difficult times we must never discount the benefits of social media and you must get alongside a professional developer who is totally aware of the ever changing nature of world marketing trends and needs.
Review you vendors and make time to sit down with them and work out better ways of doing things to reduce costs. I would say that vendors today are also doing budgets and would be extra keen to retain their client base and would be willing to negotiate accordingly. In the end their are no friends in business and your bottom line speaks everything for you. Set yourself up with these questions to put at your suppliers feet?
- Are they currently charging competitive rates?
- Are they providing best practice service and capable of adapting to changing market demands?
- Are there any alternative vendors who should be given an opportunity to quote?
- Does it really make economic sense to try a new vendor anyway even if it may be a trial order?
- Would trying a new supplier provide you with leverage over your current supplier?
This new budget period is also an opportune time to evaluate plant and equipment to determine if any capital needs are required especially given the governments investment tax incentives
It will also be a good time to review personnel and any deficiencies which may exist which could impede the demands of a demanding future with a completely new set of operational requirements
This is a time like no other but a time we as Australians know will be won together providing we do the necessary planning to do things differently.
Evaluating your business should be a continual strategy with running adjustments as the year unfolds.
Australian business does not have to re-invent the wheel as they can learn from other successful businesses around the world. There are licensing and technology agreements that can be negotiated along with possible joint venture arrangements particularly if you have a patented product or process.
This current challenge will pass and it will be the pro-active business executive/owner who plans accordingly that will succeed.
If you believe you could do with some assistance in this whole process I would only be too glad to speak with you.
Best of luck to you all.
