Mark Templeton, Managing Director, TAG Financial Services
These are challenging times. It will at times be frightening and it will be a fight for survival.
At the commencement of this crisis I met with our Board and we immediately enacted our disaster management strategy.
This strategy has 3 points of focus:
1 | Health and Safety
We are ensuring the health and safety of our team and our clients. We are open for business and abide and where possible exceed required health standards. Please note we are being very strict regarding these rules!
2 | Maintaining employment
We are taking actions and putting in place measures to ensure we survive. We believe plans need to ensure businesses and individuals can get through a very difficult 6 months, which may even be longer.
3 | Payments to employees and service providers
Economies must have the flow of money. We will continue to monitor cashflow and ensure all parties are treated fairly with payments allowing business to be done and ensuring employees can meet required payments such as rents and mortgages.
This is a significant crisis and while it is important that we all focus on the virus and contribute to reducing its spread, we must also be mindful and be preparing for a financial crisis and the health consequences that come with that. It is not a time to panic but it is not a time to put your head in the sand and hope it goes away. Now more than ever is a time to think, communicate, plan and act.
TAG Financial Services will survive, and we will be available to ensure that you, your family and where applicable your business survives. We are attempting to communicate with you all, but where we have not gotten to you and you need us, please contact us. We will prioritise service needs and please remember to read all our emails and blogs. These blogs are carefully written for quick reading and immediate implementation by individuals or businesses.
We have plans in place where a full shut down occurs. While this may slow our response times or alter the way we communicate with you, we will still be there for you.
A Word of Warning:
In these times of uncertainty – be very careful about who you think you can rely on to survive from a financial perspective. I would have a mindset that you’re in it alone – and then be grateful for those that can and do support you.
Be careful if you are relying on the Government to come in and save the day. In my view, despite the talk, the government at all levels have delivered little that we foresee will make a meaningful difference to business. The “stimulus” offered so far is a tax deduction for an item that none of us will be buying at this point in time and a deferral of tax that we pay them. In our view, it amounts to nothing! We are in communication daily regarding the $250,000 working capital loans and that is looking like a debacle as every hour passes. I fear that once they are able to outline what they are offering, it will take weeks to process and then I am sure the banks will work out a way to rip anyone off that can actually get a loan. That leads me to the banks (the classic wolf in sheep’s clothing) – negotiate hard with them knowing what they can do and offer, but remember they are not your friend.
The good news is that now and during this crisis you will find people you can rely on. They will come from places you would expect such as business partners and service providers including all of us at TAG. You will also see some great results from your team standing up to another level with future leaders emerging. You will take yourself to another level.
What is my view of how this will play out?
No one can tell you exactly what will happen, but when we had Christmas lunch in December, we would have never thought the world would be where it is now.
My view is that we have another 2 to 3 months of downward spiral as we fight and contain the virus. This will exacerbate the impact for business and personal finances. Then we will have another 3 months for those that have survived the downward spiral to fight their way back to safety. This will involve sorting out the financial carnage, getting people back to work and getting what businesses are left up and running. Those of us back in business and those with a job will then enjoy the pleasure of working hard together to get back to some level of normality in the years to come.
It will be a new normal – we will treat each other better; we will treat our environment better and we will treat our bodies better.
I do hope I am wrong, not with the new normal but with the consequences of this pandemic. I hope I look back in 3 to 6 months and smile to myself with how I overreacted.
Do not be complacent about your health, your finances or your business but do not panic – act!
The sun will come up tomorrow!
When this crisis is over, and it will end, what will you have gotten out of it?
If you have any questions, please contact us on 03 9886 0800 or via email.
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).