Is your business immune?

As the first cases of person-to-person transmission of coronavirus have been confirmed in Australia, the NSW Health Minister has taken it a step further by recommending that people cease all handshaking.  The NSW chief medical officer said that missing a case is always a possibility, though reassured that there is no widespread transmission in NSW. 

 Apart from ceasing all handshaking, what else can we do to protect ourselves?  I am not giving health advice here.  I will leave that to the health professionals.  I am referring to the precautions we should be taking in relation to you or your client’s business.

 As a migrant from Hong Kong who experienced SARS (Severe Acute Respiratory Syndrome) in 2003, I have seen the worst (Hong Kong being the second highest recorded number of fatalities at the time).

In the event of rising identified cases, there will be a huge a change in behaviour:

  • Schools suspended/ business activities reduced/ home office arrangement applied;
  • People will be avoiding going out;
  • People will be sensitive to social media updates, even if they may be rumours;
  • People will start stock piling on necessaries / sanitary items (seemingly already happening around Australia

As a result of the above, consumer spending will automatically be reduced, and in turn, so will business’s profits.

You can easily imagine a vicious cycle: To reduce the likelihood of transmission, businesses may suspend or reduce their dealings; therefore people’s earning reduced > people avoid going out > impact on retail & hospitality > people are reluctant to spend money on unnecessary items > impact on luxury market (e.g. real estate) > demand in real estate > construction business activity reduced > and so on….. it can affect all businesses large and small.

 corona

To protect your / your client’s business, there are number of precautions to take.  To name a few:

  1. Revisit the business operation to identify unnecessary overheads;
  2. Reidentify the breakeven point and level of diminishing marginal returns to reduce the input to the level in which the business can still survive;
  3. Conducted segment analysis to drop non-profit making products.

If you need guidance or more in-depth knowledge on the possible precautions, contact our office on the dedicated hotline (02 8999 9334) to discuss your options with one of our specialists.  In the event that the business can barely stay afloat, contact us immediately for urgent advice.

 

联系我们

输入无效

输入无效

输入无效

输入无效

输入无效

输入无效

Invalid Input