words by Kirsten Macdonald
COVID19 is impacting health as well as businesses all over the world and a devastating cascade impact on the livelihoods of employers, sole traders and employees.
The Australian Government on Federal and State levels have announced a series of financial support benefits. These are intricate and can be somewhat tricky to navigate. Books4Tradies founder Genaya Hutchinson has written an e-book for Tradies to quickly and easily understand the rescue packages and what they entail.
A successful businesswoman, Hutchinson had an established bookkeeping business. But in 2018, outside of this business model, she witnessed people struggling financially and the mental health of a particular industry slipping. Tradies, the beloved Tradesperson, create an industry worth millions and yet they are the largest failed enterprise. Shocking but true.
” I saw so many brilliant master crafters, but an industry wrought with failings and a lack of business guidance. People needed to be able to work doing what they did best but with cash flow causing real problems for many small operators, packages budgeted for convenience and affordability meant a new model of bookkeeping. Seamless and easy for those on the go and to help improve and grow business rather than tear your hair out and watching it go down the drain.”
The need for action led to the design of an additional business; Books4Tradies, a service carefully tailored with bookkeeping and administrative needs for the trade industry.
The business flourished and is now a well respected and growing support system; one needed now more than ever. Its success story has been the saving grace for many SME, and now with the COVID crisis unfolding, businesses need all the help they can get. In 2019 ASIC reported the Tradie industry was in the highest default category in our country. This is due to a whole lot of issues. Residential building activity was on the decline last year, with the fall in house prices and deteriorating market conditions impacting domestic dwelling approvals.
According to the Australian, Small Business and Family Enterprise Ombudsman small businesses account for 35% of Australia’s gross domestic profit and employ 44% of Australia’s workforce. Of the 877,744 total employing businesses, 823,551 are small businesses (93.8%), and of those businesses, 627,932 are businesses that employ only 1-4 people, known as micro-businesses (76.2%).
The business survival rates for small businesses enjoyed a growth from 59.6% in 2014 to 72.2% in 2018, however, with many businesses closing and people losing jobs, the impact on the trade industry may turn to be quite devastating. The construction industry alone equates to 57% of the small business share.
The Australian Bureau of Statistics released critical information as the crisis unfolds showing Two thirds (66%) of Australian businesses reported that their turnover or cash flow had reduced as a result of COVID-19, according to results from the second Australian Bureau of Statistics (ABS) survey on Business Impacts of COVID-19.
Nearly half (47%) of businesses made changes to their workforce arrangements as a result of COVID-19. For some businesses this included temporarily reducing or increasing staff working hours, changing the location where staff worked (including working from home) or staff being placed on leave.
Two in five businesses (38%) have changed how they deliver their products or services, including shifting to online services. Over a third of businesses have renegotiated their lease and rental arrangements and a quarter have deferred loan repayments.
Genaya says it’s more important than ever for business owners to be organised and have the books up to dates and understand the money they now may have access to via the funding release.
With easy to read instructions, Books4Tradies COVID Business Rescue Guide is a quick 1 response to a concerning and unprecedented issue. Covering each category from employees, business grants and loans the guide is comprehensive.
”In times like these, it is so important that those of us who can be of service to others and help them need to step up and give what we can. When we think on our feet and bring a positive action mindset to the table, we can overcome and achieve anything” says the inspiring Geelong entrepreneur.
For more information visit the website https://www.books4tradies.com.au