What small businesses need to know about life after JobKeeper

Experts say Tasmanian businesses need to start preparing for a world without government support if they want to survive. READ TIPS TO KEEP YOUR BUSINESS RESILIENT >>

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EXPERTS have warned that Tasmanian businesses need to start preparing for a world without government support if they want to survive.

The sooner small businesses face reality, the better chance they have of persevering according to Business Blindspots Tasmania experts.

The Blindspots collective formed during COVID-19 to share free online business expertise.

Members of Hobart business group Business Blindspot Tasmania, Raz Haroon, Rachael Downie and James Baker. Picture: ZAK SIMMONDS

Business financing coach Tom McMeekin said losing about $50,000 in cashflow when JobKeeper ended would reveal “the true impacts of COVID”.

He said business owners should seek help from accountants, solicitors and business coaches to show banks they can afford their debts again.

“We’ve got a six-month period to plan our way out of the carnage,” Mr McMeekin said.

“The hard line comes in February for banks where they need to have addressed deferment issues.”

He said to be wary of loans, including the government’s guaranteed loan scheme for small and medium businesses.

“Politicians are saying how great it is to give five years for businesses to repay $1 million,” he said.

“It’s only those who can afford it who can access it, not the client whose business is falling down around their ears.”

Business strategy expert Rob Cameron said discipline and tight cash management would be crucial for businesses over the next six months.

“You don’t want too much debt right now,” he said.

“You really want to be thinking about your customers, how things are changing and what that means for your products.”

Business model design expert James Baker said business owners should anticipate what COVID-19 means for their customers.

“I was talking to a construction business owner who had his best two months ever, but we’re seeing his upcoming work be cancelled,” Mr Baker said.

“If you’re not talking with your customers this can be a big shock.”