Covid – Year 3 – Ten Steps for Small Businesses

As the third year of the pandemic commences it may be the most challenging yet for small business as staff shortages reach critical levels with thousands sick or quarantining.

We are fully aware and understand the messaging of “stay at home” or “work from home” is not a practical scenario for many small businesses and workers. All small businesses should be planning for 20% to 30% of their workforce to be sick or quarantining over the next 4 to 6 weeks.  We also expect Child Care and School delays to impact staff ability.

Here are ten steps that all small businesses should be considering:

1. Review the Government regulations in your state and determine under what circumstances your employees can come to work and what testing and PPE requirements you will require your workplace.  In both Qld and NSW certain workers in essential services such as medical, transport and supply chain, can continue to work under certain circumstances if they are asymptomatic.

 

2. Consider what staffing levels are required for your business to operate safely. Small businesses in the medical, construction, childcare or businesses with warehousing may need to close or restrict certain parts of these businesses over the coming weeks if they cannot guarantee sufficient staff present to operate safely.

 

3. Consider what staffing levels are required for your business to operate profitably.  As consumer spending hits an all time low with many consumers choosing to stay at home, it may be worth restricting your trading hours if you are in the retail or hospitality industries and you are having trouble getting sufficient staff to come to work.

 

4. Supply chains are significantly disrupted as workers and drivers are sick or isolating.  Please plan for both inbound and outbound supply chains to be slower than normal.

 

5. Throughout the last two years, professionals in the accounting, banking, legal and IT industries have largely worked from home with little disruption; however, we know and expect the delivery of these services to be delayed as workers in these industries are also sick.

 

6. Please plan for the very likely scenario that you as the business owners may get sick and may not be able to manage the business as normal.

 

7. Communicate early and often with your workforce as many workers will be feeling anxious about the current situation and have questions about their entitlements.

 

8. Communicate early and often with your customers about delays and disruptions.

 

9. Conserve capital – the majority of small businesses have survived the pandemic so far, but this next six months may not be profitable for businesses if there is significant disruption to their businesses with little or no government support expected.  We know that most of the profit in small business comes from the last 10% of sales.  As these are at risk, please consider how you will respond to reduced profits, or alternately how long you can sustain losses.

 

10. Practice patience and be thankful and grateful to those who have shown up to work in your own business and the businesses around you.

 

Please contact us as we are here to help. We are confident that the strength and resilience of small business has built over the last two years will help to see this through.