These times are demanding individual businesses today to be resilient in terms of their operation. With the increasing demand of consumers and the loss of staff and resources the situation could get catastrophic for the businesses.

Businesses also have the opportunity to restructure their entire business. It could be either outside or inside a formal insolvency process, but outside insolvency is more preferable.

Businesses also need to cut costs of their products in order to make way for profit and increase their sale all while competing with other businesses.

Assuming that the covid-19 crisis is over is the biggest misconception anyone could hold, including businesses. Businesses need to remember the lessons learnt during the pandemic and apply them in this post-pandemic period. They must also manage to maintain the staff energy level and staff morale during these times for smooth operation.

With the work from home situation, it is also required for the businesses to invest in the best home-based technologies and connectivity.

In terms of supply chains, it is also recommended to reevaluate the supply chains and restructure them to be more flexible and agile and to prefer near shoring strategies. In order to predict the new consumer demands and behavior, businesses also need to adopt intelligent sensing capabilities.

The pandemic has literally affected every sector, businesses and beyond. But all that is under ones control in how one manages to adapt and implement best practices in order to survive through these unprecedented times.

The Path Ahead for Australian Businesses

Australian businesses themselves need to work in an agile manner and actively contact customers as much as possible to make them aware and understand how you are handling the business in these circumstances.

While doing so, businesses also need to keep in mind and oblige the Australian Consumer Law which asks the businesses to not mislead the customers, to not behave unconsciously while dealing with their customers and to not rely on unfair factors in standard form contract with customers.  

Digitalization is the new path for many Australian businesses. While some industries are successfully working in this direction, there are some who are still trying hard and working towards it. Many businesses are investing in new technologies to adapt at these times. With the constantly changing consumer demands and expectations the businesses need to adapt with innovative and creative ways to manage everything.

Corrective measures to be undertaken over time to get businesses back

At these unprecedented times, it’s very important to take corrective measures to get the local, small and huge businesses back to working normal and earn profits.

The Australian government has extended safe harbor protections until 31 December, 2020 for the directors. This will ensure that the businesses can have safety and protection from insolvent trading liabilities. These liabilities will be applicable for the debts incurred during the course of business since March 2020.

The Australian government has undertaken these measures as they are aware of the overall repercussions on the businesses like huge loss in staff, disrupted avenues in the market and supply chains of goods and services, diminished capital and balanced sheets and even short term working capital and deficiencies.

These measures have substantially helped make the situation a little better for the businesses and for their overall operation.

Australian Economy hit by Covid-19 crisis

Covid-19 has caused a great economic dive and caused recession all over the world. Australia also experienced a major dive in the economy in the pandemic period since the great depression. According to the data released on the country, Australia is experiencing recession for the first time in 28 years. The government reported that the economy shrunk up to 7% in June, which is one of the biggest contraction recorded since the year in 1959.

The unemployment level is at its maximum in 2020, almost similar to the depression era period which is one of the major concerns for the country. The country experienced a drop of 0.3% in the first quarter of the year, after logging two straight quarters of contraction.