Back to "COVID19: Important Business Update: The Three Step Guide to Thrive | Part Two"
Consider Future Work
- Explore current and future opportunities to supply goods and services in the pipeline and consider how that service or goods can be supplied by assessing changing demands and needs. Take this time to understand your customers, your staff and a changing market.
- Commercial contract negotiation and dispute resolution – Do you need to negotiate or renegotiate commercial contracts to create certainty and to resolve disputes or debts? Burying your head in the sand and avoiding the too hard basket may result in costly litigation and disputes later. Seek advice on how to mitigate risk and resolve disputes- you may have a good reason, such as an unforeseen event may have occurred (or events have unfolded that are radically different from the contractual obligations originally contemplated by the parties to the contract)
- Secure continuing and new work by revisiting established supply chains, forming new ones, and building customer relationships. Reflect upon the existing terms and conditions, and your business model for cash flow. How do they help your business mitigate loss and provide security against insolvency? What asset protection steps have you taken to protect your business? Do you need to reassess your line of credit terms (ie director guarantees or security agreements)? Do you need to resolve continuing work in progress before supplying more services, stock or goods.
- Secure your profits- Have you considered whether or not your work in progress or goods are secured, or whether there is a security facility that is registered on the Personal Property Securities Register (PPSR)? Most debts are unsecured debts, which means if the person or company you are dealing with becomes insolvent, or is made bankrupt by another creditor or voluntary chooses to become bankrupt – you may be the last to receive funds, if any for your work. If your loan or debt is secured over an asset on the PPSR you are a secured creditor who may be able to repossess that asset or maybe be entitled to be paid as a priority.