BiziNet - The Leading Sydney Business Magazine
The virus may have triggered this downturn. But it’s the fragility of Australia’s economic makeup that has our governments panicking. We have a houses and holes economy.
Australia’s economic complexity is dismal. We’re down at number 93 on the list — just above Pakistan. About 70% of the products we sell to foreign buyers, on a net basis, are minerals and energy. The rest of our wealth is mostly tied up in a $6.9 trillion housing market. One that breathes by way of population growth (mainly from immigration) and high levels of private debt.
The proliferation of zombie companies pre Covid-19 has largely been fuelled by reduced financial pressure. Examples being financial institutions continuing to offer (or not otherwise call in) finance to non-viable companies and also the impact of lower interest rates particularly post the global financial crisis (“GFC”). During the Covid-19 pandemic these zombie companies have been allowed to gather further momentum and the damage that this is likely to cause post Covid-19 presents a real and present danger for those that are transacting with them.
Why do we say that Government assistance and stimulus packages are not the answer for your business? The reason is simple. They do not fix the underlying business issues that are threatening to derail your business.
While they are a welcome relief in a time of crisis, they are a form of pain relief. They ease the pain but do little to fix the real problems with your business.
You plan your day. You plan how to start your business. You plan your holidays.
You see a lawyer about a plan without having first considered how their advice will impact what you have planned.
COVID-19 has taught us all that we really can do things differently. Many of our clients are rethinking their distribution channels and concentrating on an eCommerce mindset, rather than direct to store (DTS) as many stores are no longer operating as they once were. With the rapid turnaround required, the shift is truly challenging.
Collaboration takes many shapes and generally presents opportunities to support innovation by combining capabilities and expertise around a common purpose. A Forbes Magazine’s article Increasing Complexity is Driving The Value of Collaboration1 suggested “the ability to collaborate is becoming a key driver of value creation.” Today many businesses understand its potential but may be unsure how to get started. If ever there was a time of increasing complexity it’s now – and the potential rewards demand that every business should actively seek opportunities for collaboration.
We use mobile phones every day at work, at home and everywhere in between. But we never think about how it all works and why it sometimes doesn’t. What is modern mobile communication, and is it possible to ensure your business stays connected with the presence of your own mobile network?
During these unprecedented times, you may find you’re needing to seek alternative ways to remunerate employees, and when the dust does settle it may also provide a good alternative to get your business back on track.
There are many signs that your printer might need replacing. This could be holding back your business from achieving maximum productivity and could also be costing your business more than necessary. It is important that you can achieve the highest quality of printing possible, as well as being able to save time and money by ensuring that your business has an appropriate tailored printing solution.
There’s an app for everything and don’t we love them. They are informative, entertaining, and importantly, useful. So why doesn’t your business have one? Mobile apps aren’t just for big business! They’re a great way for small and medium-sized businesses to stand out from their competition because an app can simplify the buying or booking process for your customers.
For clients from all walks of life who enjoy active, independent living, Stryder provides a friendly and flexible transport service for weekly shopping trips, medical appointments, visiting friends or relatives and those all important social adventures beyond your own doorstep. There is simply no reason to be stuck at home.
COVID-19 may well change the world; however, right now small business owners are focussed on navigating the immediate issues: cashflow uncertainty, fear, and the welfare of their workforce and customers. Small business has always been practical and pragmatic, robust and resilient. Embedded in their communities, they are first and hardest hit when economies tank, natural disasters strike, or governments change the rules.