COVID-19 Business Update – 8 May 2020
With no new cases reported on Monday and Tuesday this week, it seems like New Zealand has Coronavirus under control making a move to Level 2 likely in the next week or so.
Clearly that’s great news for all business owners and in this week’s digest, we’ve included a number of resources to help with navigating your business out of the dire situation we’ve all been in. No doubt there are still tough times ahead but there are many reasons to be hopeful and we’re here to help you through.
Cash flow support for small businesses
Government has announced it will provide loans to small businesses impacted by COVID-19 to support their cash flow needs. The Small business cash flow loan scheme will provide assistance of up to $100,000 to businesses employing 50 or fewer full-time equivalent employees.
Details of the loans include:
- $10,000 to be provided to every business
- An additional $1800 per equivalent full-time employee
- Interest free if the loans are paid back within a year
- An interest rate of 3% for a maximum term of five years
- Repayments not required for the first two years
Applications are expected to be open from May 12 so we’ll let you know more next week.
Kiwi Business Boost Tool
This tool on the Business.govt.nz website now has COVID-19 support information and can be tailored to where your business needs.
It’s a good way to get straight to relevant information rather than trawling through government and news websites.
Time for a new business plan?
I’m guessing you didn’t factor and global pandemic and national lockdown into your 2020 business plan!
So it’s definitely a good time to revisit your business plan for the next year. We know that writing a plan can feel like a big effort so here’s a template to make it easier. Please get in touch if you’d like to talk about your plan – especially the financial parts like cash flow.
Pivot don’t pause your marketing
It’s a classic business mistake to cut marketing when cash flow is tight. This often means you’re sealing your fate as without new customers, businesses wither and die.
This article from MYOB delves into this issue and makes some suggestions on how to refocus your marketing for the new economy we suddenly find ourselves part of.
Is it a good time to hire staff?
If you’re lucky to have a business in a sector not dramatically affected by the Coronavirus shutdown, it could be the perfect time to hire.
This article from the Harvard Business Review outlines the opportunity and steps to seize upon it.
Time for some good news
Actor John Krasinksi has been running his YouTube segment “Some Good News” for a few weeks now. In a recent episode, astronauts from the International Space Station join in to share some good news, a week before two astronauts returned to earth. You can watch the segment here.
Here to help
We’re committed to helping you through the head winds of the next few months. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!