25 Mar Don’t Panic, Keep Calm And Carry On
Ceasing your spending is going to be like spreading the virus. It starts with one person and begins to impact others until it spreads like wildfire and becomes catastrophic where no one’s spending. So, instead of contributing to the problem, become part of the solution.
Director of Marketing Sweet
WE’VE DEFINITELY SEEN WORSE
Let us take you back to the late 1980s to 1990s, when Australians saw the largest economic downturn since the Great Depression.
Huge inflation and unimaginably high interest rates of 19% put people in dire financial situations. Can you even imagine the effect that would have on today’s housing market? With the average Australian mortgage sitting around $380,000, homeowners in 2020 would be faced with monthly repayments of almost $6000.
But eventually, we bounced back!
So, what did we learn from this, and what opportunities are available to exploit?
Whilst there is a plethora of negativity in the market, let’s talk about opportunity.
6 NEVER BEFORE SEEN OPPORTUNITIES
1. INCREDIBLE TAX BREAKS & LOANS
Cash Flow Boosts for Small to Medium Businesses and NFPs
- Automatic tax-free payment or credit of at least $20k and up to $100k for businesses with employees that have a turnover of less than $50m.
- Small businesses employing less than 20 full-time employees that hold an apprenticeship or traineeship, will be eligible for a subsidy of 50% for wages paid between 1 January 2020 to 30 September 2020, up to a maximum of $21k per eligible apprentice or trainee.
Amazing Loan Assistance
- The Government’s ‘$20b Business Loan Guarantee Scheme’ will allow business customers to defer their loan repayments for 6 months with participating major banks.
- Eligible business owners can apply for unsecured bank loans of up to $250k to secure working capital.
Tax Concessions for Depreciating Assets
- Instant asset write-offs for 99% of Australian businesses, by providing immediate tax deductions for depreciating assets of up to $150k. In the absence of any further relief, the following concession will take effect between 12 March 2020 and 30 June 2020.
- Effective immediately, measures will apply to tax write-offs for new or second hand depreciable assets such as plants, motor vehicles and equipment.
*Note: we are not financial advisors – please seek professional advice regarding your own personal circumstances*
2. EXTREME POWER TO NEGOTIATE WITH SUPPLIERS
With a pandemic on our hands, it’s an opportunity to show your loyalty to your suppliers by not chopping them off at the knees. And best of all, you’ll be in the box seat to negotiate with them. Once the dust has settled, your relationship will be stronger than ever. And who knows, you could be left with a better price!
3. BETTER BANG FOR YOUR BUCK: WHO KNEW ADVERTISING COULD BE SO CHEAP?
Your competitor’s natural reaction will be to panic and wipe out what could be deemed “unnecessary” expenditures. But spending now will give you better cut-through—the noise in the market reduces, so use this as your opportunity to dominate. Take advantage of reduced Cost-Per-Clicks for Google AdWords campaigns and faster organic growth through SEO.
4. BOLSTER DOWN YOUR COMPANY CULTURE
Trying times will isolate cracks in your company culture, but they will also provide fertile grounds for growth. Stay true to your long-term vision, stay unified and aim to implement collaborative ways to overcome the hurdles together so your team feel like part of the solution.
5. EXPAND YOUR MIND AND REINVENT YOUR BUSINESS
Let the downturn inspire your thinking. With the wolves on your back, there’s never been better time to think about change. Sit down and re-evaluate your marketing, competitors and internal processes. Start trialling new and innovative methods to supercharge your business for the future, and use this opportunity to check in with your existing clients and rekindle relationships to strengthen your network.
6. SHOW STRENGTH NOT WEAKNESS
Attitude reflects leadership in trying times—don’t change your business objective, just adapt your methods of getting there.
As the pandemic instils fear in many, you can show your clients and your suppliers just how strong you really are. This will be a test in coming months, but your positive mindset will have a lasting impact on your business reputation, and ultimately your success for decades to come.
“Maintaining stability and leadership during an economic crisis leaves a greater impression on your customers, staff, and suppliers because it’s interpreted as a sign of strength.”
Director of Marketing Sweet
SO WHAT DOES THIS ALL MEAN?
Don’t panic, keep calm and carry on.
Keep your eye on the prize, everything is temporary and your competitors are all feeling the same pain as you are right now. The difference will be how you react and turn this negative situation into something that is a very positive opportunity for years to come.
Ironically with the 1.5 metre social distancing regulations and the possibility of complete lockdowns, now is the time to work very closely with your invaluable staff and people within your network—with a goal to thrive when we all bounce back.
As business owners, it’s up to us to control the future of our companies by utilising the incredible opportunities available to position ourselves as leaders in our respective markets, which means operating with strength, not weakness.
“Re-negotiate with people around you and keep spending within your means to show signs of strength, not weakness. It’s just a bit of temporary pain to build a rock-solid life-long reputation.”
Director of Marketing Sweet
In regards to our clients, customer service, lock down or no lock down will always be our highest priority. We’ll do whatever it takes to help you through these tough times, and double-down on our efforts to ensure your doors can stay open well into the future. We really are the marketing company that cares.