Updated: 29 April 2020

Business Continuity Planning: During a normal business cycle, it is important to have plans and budgets in place to ensure the smooth operations of your business. When an event like COVID-19 strikes, this becomes essential to enable information to be shared, plans to be executed and to mitigate the potential risks to your business.

To empower business owners and help you make informed decisions, we have collated some key information and links to help you:

 

Government advisory

  • The Government stance has been severe but seems to be guiding NZ towards containing what is a devastating disruption to public health.
  • Border (closure) controls have severely dampened any hope tourism and hospitality businesses may have had to eke out some maintenance cashflows.
  • The requirement to support businesses is clear and present.
  • See details of the Government business support package

Information sources:

Economic impact

The Global Economy faces one of the most devastating events in recent history. We need to keep a mind on what we can control but within the context of this global event.

Source: Excerpt from Tony Alexander’s newsletter (Wednesday 11th March 2020)

The Covid-19 outbreak has hit our economy in at least 4 ways.

  1. Foreign Tourism employs 165,000 people and is very important for some regions. Bookings
    inward and outward are collapsing worldwide. This sector will feel the deepest impact and
    business closures will happen.
  2. Exporters affected by China’s temporary closures. Current pain for forestry, fishing,
    universities etc. will ease within 2-4 months as China reopens, docks are cleared, and shipping
    gets re-established. Layoffs and shortened work hours will be minor and short-lived.
  3. Importers of vital components. Production interruptions and stoppages are coming for many
    manufacturers and builders short of vital parts. Layoffs will not be widespread given structural
    staff shortages. But reduced hours, shifts toward maintenance etc. are coming. Hopefully, the
    worst will be over within four months.
  4. Outright uncertainty, confusion and angst, along with news of probable recessions offshore will
    make us all cautious about spending, hiring, and initiating new projects. This effect is driven by
    “animal spirits” rather than solid income declines, and we cannot know when people will regain
    previous faith in their personal, business, and economic outlook.

Information sources:

Financial support

    • In this environment, it is vital that a solid financial awareness is maintained to understand how this shock may impact your business.
    • Planning to cover a drop in revenue as economic activity reduces is a no brainer.
    • What will you do if you have to weather a 20% or 30% or 40% hit to sales?
    • Alternatively, you might be in an industry that is actually benefiting, how will you keep up with demand? The key point here is planning for the scenarios that are most likely to impact you and your business.
    • With the new financial year already one month in, sticking to a budget will force you to think about and plan for what may lie ahead. Additional accounting and business support may be required to help you prepare these documents but will prove invaluable if the state of readiness is improved to weather the potential storm.
    • Advantage Business offers services that are registered with the Management Capability Development Voucher Fund. Business Continuity Planning, Finance & Cash flow, Human Resources and Health & Wellbeing are now 100% funded. In addition to any funding granted, your Advantage Business advisor will provide up to $500 in value with in-kind support. Many businesses currently need help with managing cash flow, working capital and bank funding arrangements. If this is you, talk with one of our advisors about how to access funding.

      Information sources:

       

      People

      • As business owners, we lead our teams, and they look to us for guidance, assistance, help and stability, especially in times of crisis.
      • Our employees, our team, our staff. Call them what you will, they are our business. Without these people, the business doesn’t function.
      • Hugely important also are our customers, product suppliers and support network.
      • The goal is to lead and look after all your people as a priority to protect their livelihoods and families and your relationship with them.
      • In doing so you ensure that your business continuity is enabled.
      • Make the time to plan for probable and potential eventualities on their behalf and communicate the plan.
      • Work with all parties and advise and agree on a timeframe (weekly) to meet to review those initiatives for effectiveness and implement new measures if needed.

        Key considerations

        – Health and Safety – team well-being, hygiene, notification
        – Leave options
        – Communication; Virtual workforce/capacity

      Information sources:

       

      Next steps

      Our advisors are the first responders for businesses in need. Consequently, our team is experiencing high demand at the moment. However, we can assist you to get accurate information and if you don’t have a business continuity plan in place or need help with one contact us today. We will respond within 24 hours. We are ready to help.

Covid-19