COVID-19 & The Economic Meltdown

24 Mar 2020 10:45 AM | Ian Reynolds (Administrator)

Dear BWCC Members, Supporters, Partners & Extended Network

By now you’ll have seen so many communications around the virus that I don’t suppose that you will want to read yet another. And, as I am not an expert on pandemics I won’t presume to comment on something I don’t understand. I’ll let the various Governments do their job on that.

What I do have expertise in is The Economy. 25 years of foreign exchange and other instrument trading tells me that the virus has fast-tracked the demise of the global economy and that the economic pain is going to be extreme and will last for a long time. 

Having witnessed many financial disasters the only advice I can give you is that all companies now need to become lean startups. Some obvious tips might be

  • Conserve your cash

  • Negotiate better rates with the banks, understand what your obligations with them are

  • Use contractors rather than employ staff, develop a more agile and lean workforce

  • Make sure your credit policies are robust

  • Recheck and reset your short and mid term budgets, understand where your sales are coming from, initiate and innovate new and different revenue streams

  • Understand all Federal and State Government stimulus and industry assistance packages and support

There is a lot of misinformation around. The small business sector will tell you that larger companies can afford to take a loss. That’s just not true, it’s the bigger companies that can’t turn themselves around quickly enough in a crisis, and it’s their demise that takes down all of their smaller suppliers. So don’t be part of that supply chain and if you really can’t avoid it, limit your exposure.

And… for every crash there is an opportunity. As a newly formed lean startup, now is that chance to innovate, spot gaps in markets, and displace older business models.

As a Chamber of Commerce we are going to provide you with the advice you need, delivered by industry experts. The first of these is a Live Stream from The Precinct, the QLD Govt’s Innovation Hub and is titled: 

LIVE STREAM: Navigating catastrophes and driving change for Accountants and other Professional Services

https://briswestchamber.org.au/event-3797959

Featuring Rob Nixon

All businesses can learn from excellent business models and practices even if it’s not directly relevant to their specific business. We’re expecting Rob to be forthright and not be worried about upsetting those set in their ways. 

And, we too will be innovating, changing the way we do things in a new era.

Keep in touch…..

Thanks

Ian Reynolds
President
Brisbane West Chamber of Commerce.




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