It’s no secret that the business world across the globe has been hit hard by COVID-19. The outbreak of COVID-19 is primarily a public health issue, but it is also having a major impact on the economy and the financial system. Every day we see various indices (employment, GDP, production, etc.) hitting record low numbers. What I want to talk about in this article is the opportunity for businesses during these tough times. Businesses without a doubt need to adapt and adapt quickly or they will cease to exist. Not just existing businesses but new businesses have a great chance to take advantage of this change.
The article is about a 5-minute read and is a mashup of recent facts from various government agencies. The aim is to demonstrate that it’s actually a good time to start a company if you have been thinking about it and were sitting on the fence.
To quote Tony Robbins “In every crisis lies opportunity. People who are successful are not lucky; they are just prepared for opportunities that come there way. Anticipation is power”
Australian entrepreneurs are better placed than many around the world because of many factors. Let me list a few-
- The government has spent AU$289 billion ($206 billion) in pandemic relief measures to save jobs and businesses. At 14.6% of GDP it is among the top 5 global spend
- Interest rates at a historic low and expected to stay there for the foreseeable future
- Unsecured loans guaranteed by the government for up to $250k for every dollar spent by you. To be increased to 1m from October 1, 2020, with some additional criteria. For details refer to the link
- Clearly, the COVID-19 pandemic is a disaster. But let’s hope it offers a silver lining somewhere for manufacturing. Let’s hope it opens the politicians’ eyes to investing in the local Australian manufacturing to support jobs and the economy. No direct incentives for the manufacturing industry as of now but I will not be surprised if that changes soon. As noted by AMTIL the Australian Automotive industry was seeking AU$300m annual government support package– just 0.09% of the COVID-19 stimulus package. This funding would have directly assisted 120 Tier One manufacturer and suppliers to keep their factory doors open and to keep thousands of Australians employed. In return, each manufacturer would have invested $3 for every taxpayer dollar.
- The business sentiments are positive. Look at the V-shaped recovery Australian Exchange Traded funds have shown reaching $63b just 3% behind the historic high of $66b
- The number of new companies set up in June 2020 stands at 26804 which is the highest in the last 24 months
- This is survival of the fittest time. Businesses that are left standing will reap the benefits after the pandemic is over. They will be bigger and stronger than ever before. So cut your expenses, hold on to your talent, utilize the government assistance available, and adapt.
Our team has helped many businesses save time and cost on not only starting a business but effectively managing it. On average we save our clients 30% on finance/IT/HR costs with the best in class service.
Registering a business name or registering your company is only the first step. The right guidance, in the beginning, can make or break your business. From accounting, legal, ERP integration, process improvements to web design, online marketing, and branding look no further. Reach out to us now and seize the opportunities these challenging times present.