Carrying on from the three-month theme that Recessions Always Fast Track Change in last newsletter I outlined my two (2) key initiatives which will enable the economy to get back on track. As you would all be aware, a modern economy changes very quickly and without this adaptation, you can get left behind – even in a matter of weeks.
I noticed this week in my readings that the Reserve Bank deputy governor, Guy Debelle, has declared that Australia is technically out of recession, telling a Senate estimates hearing that the September quarter would show the economy growing and that the drag on the economy from Victoria would be less than first thought.
Of course, there are some warnings out in the economy that we need to be aware of:
With the warnings come the opportunities – think of what may happen in the next 2-months!
(a) Melbourne restaurants may decide to open for 24 hours a day to make up for lost ground (I hear that there were a lot of late dinners / early breakfasts occurring today with the lifting of lockdowns
(b) A new wave of exuberance to manufacture our own products seems to be in vogue – if I was Sanjeev Gupta who owns the Whyalla Steelmill in South Australia, I would be very happy right now.
(c) The opportunities to stay close to your staff and clients by technology have never been as strong now due to our need to adapt during the COVID pandemic.
Now, my advice for the next 6-months:
(i) In your business, get very proactive with your clients as there will be a lot of competition for client orders in the next 6-months where businesses fight over the available work in a particular industry.
(ii) If you received significant sums of money from the Government in terms of cashflow boost, reinvest this back into your business
(iii) Don’t spend money unnecessarily but invest where you can get the maximum outcome
(iv) Clear any tax debts with the ATO as they will significantly tighten up their payment plans in the next six (6) months.
As we approach Christmas, start planning for best- and worst-case scenarios the new calendar year and update your strategic plan together with your budget for the FY2021 financial year. Don’t let concerns become problems because of a lack of planning.As we approach Christmas, start planning for best- and worst-case scenarios the new calendar year and update your strategic plan together with your budget for the FY2021 financial year. Don’t let concerns become problems because of a lack of planning.