4 May 2020

Key takeaways

  • Maintain business fundamentals, while looking for better ways of doing things
  • Reducing costs may be a powerful lever you can use to keep your business healthy and resilient.

Reducing pressure and boosting resilience

When business is buoyant, it’s easy to absorb the long-term financial impact of building additional costs into your business. However, in a time of crisis accumulated inefficiencies may begin to bite.

Reducing costs may be a powerful lever you can pull to take pressure off your business and increase the likelihood that you’ll emerge from the current crisis in strong form.

Here are four areas to review right now.

1. Staff costs

Staff costs are overwhelmingly the largest expense category for most agencies, so ensuring that your staff are working effectively is critical.

  • Do you have plans in place for staff who may be inactive during the crisis? How can you better point them to activities that will benefit the business in the long term?
  • Have you ensured that administrative and support staff are focused on higher impact or priority tasks?
  • Are there any ways to review current processes and identify which of those may be improved with the support of technology?

2. Occupancy costs

Are you familiar with federal and state government measures to support commercial tenants?

3. Franchises and subscriptions

Some franchisors have committed to supporting their agencies through the crisis, so this could be a good time to discuss your situation.

4. Personal budgets

It may be beneficial to review your personal budgets, and obtain guidance on the various initiatives that may be available to you.

Resources

Read more about government measures to support commercial tenants:

State Link
Federal government Read more
ACT Read more
New South Wales Read more
Northern Territory Read more
Queensland Read more
South Australia Read more
Tasmania Read more
Victoria Read more
Western Australia Read more


How Macquarie can help

The Macquarie Real Estate team is here to support you throughout the COVID-19 crisis, with personalised support. To find out more, contact your Macquarie Relationship Manager, call 1800 442 370, or visit macquarie.com.au/business-banking/real-estate-industry.html

Additional information

The information on this page has been prepared by Macquarie Business Banking, a division of Macquarie Bank Limited AFSL & Australian Credit Licence 237502 ("Macquarie") for general information purposes only, without taking into account your personal objectives, financial situation or needs. Before acting on this general information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service.