"BiziNet Magazine #102 - June/July 2020" BiziNet™ Articles

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.