10-step plan for retail sole traders
Phillip Chapman, Director of Lease1, has a 10-step plan of attack for retail sole traders:
1. Review trading hours and create a saving plan (landlords are already advising they will be flexible here).
2. Negotiate with bankers to defer loan payments.
3. Negotiate on equipment leases, seek to defer.
4. Negotiate suitable payment terms with suppliers and even defer part or all payments for a period.
5. Review and remove all non-essential operating costs, for example storage.
6. Defer capital expenditure on equipment, shop refurbishments, and channel funds into the operating costs plan.
7. Compare numbers on customer counts, sales, gross profit and profit and loss (P&L) reports for the same weekly or monthly period this year to last year.
8. Lease review for savings areas such as waiving of annual rent reviews, reduction in security or bank guarantee to free up capital.
9. Create a revised sales and cash flow projection to the end of this calendar year making assumptions based on the above savings.
10. Make an appointment to sit down with your landlord and discuss where they fit into the plan. This may be through rent abatement, deferring rent, extending lease term or a combination of these.
The quicker these options can be reviewed and accessed for non-employing businesses could mean the difference between staying open or closing.
Business Australia is on hand with a range of resources to help sole traders and non-employing businesses navigate this difficult time, with practical advice and information to help businesses develop strategies to maintain and sustain. Visit our resource hub to find out more.