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WA Small Business: The Lasting Impact of COVID-19

“Success means only doing what you do well, letting somebody else do the rest” –Goldstein S Truism.

In Western Australia alone there are over 225,000 registered small businesses, with 78% of those businesses based in the Perth metro area. Despite the upturn in fortunes for the Australian economy (and WA’s in particular), the current global economic climate and uncertainty brought about by the COVID-19 pandemic means that WA Small Business owners and managers across several industries continue to face an uphill battle.

While financial assistance and stimulus measures have been provided from both the Federal and State Government level, including the likes of JobKeeper, Cash Flow Boost and Payroll Tax subsidies, there are significant challenges still facing employers as we move through 2021. The remedy for these issues may not be immediate, but there are actions that business owners can take now to reduce their impact in the long-term.

Worker Shortage & Lack of Resourcing in WA Small Business

At present, there is high demand for skilled workers in industries such as Building and Construction, Mining, and Transport, and many employers within the Agricultural, Hospitality and Tourism industries are seeking people to fill positions – many of which have been left vacant due to a lack of working holiday makers, backpackers and the like. The knock-on effect of a shortage of workers within a small business ultimately lands with business owners. A lack of resourcing and worker shortage in any business can lead to all manner of issues, including but not limited to:

• Owner burnout
• Employee burnout
• Difficulty recruiting the right personnel for the job

Anxiety About COVID-19’s “What-Ifs”

Since the start of the pandemic, business owners far and wide have asked themselves (and their business advisors, for that matter) a range of questions about the future of their business. Some of these include:

• What if we are locked down again due to another outbreak and can’t pay our bills?
• What if customers don’t return to us after the worst of the pandemic is over?
• What if we can’t find employees to help improve our capacity or to meet ongoing client/customer needs?

These are all important questions to ask, and they each highlight an important aspect of safeguarding a small business against the impact of things like the pandemic. The SME Business Specialists within the CFO2GO team assist business owners to tackle these issues, and the broader ones they face on a more regular basis.

WA Small Business – Beyond the Pandemic

Looking ahead, even once the pandemic subsides there will never be a time where SME owners don’t have difficult questions to asks and situations to face. Furthermore, there are rarely straight-forward answers to any of these questions. Over the past 12 months, we have seen businesses close their doors, many being forced to sell, but also a number of businesses that continue to display great resilience and push through the day to day struggles. The Impact of COVID-19 has shown the importance of planning ahead (where possible) and safeguarding your business as best you can. As SME Business Specialists, our primary role is to assist SME’s with planning, Scenario Analysis, Forecasting, Budgeting, Cash Flow Management, and Management Reporting, so no matter the circumstances, you can be prepared to tackle it head-on.

If you’re ready to give yourself peace of mind with your business, knowing you’ve partnered with advisers who have your back, get in touch with us today on 08 9301 2200 (Joondalup), 08 9361 3300 (Victoria Park); or contact us via our website.

written by:

Claire Ginbey

Heading up our CFO2GO team, Claire's skills as a SME Business Specialist and cloud accounting specialist have developed in line with advancements in technology and best practice; allowing her to maintain the highest service standards for clients.

Claire's passion for growing small businesses and helping them achieve sustained success is what motivates her to continuously develop her skills and knowledge. Her clients appreciate her considered and dedicated approach to working with them, and her personal oversight across their operations and financial performance.