Still in Lockdown – What to do? It may be a Good-Time to think about either a Business Plan or Business Valuation.
“Should I stay or should I go” – Joe Strummer, The Clash
Auckland is moving into its FIFTH week of Lockdown under Level 4 restrictions. If you’re a Business Owner in the Auckland Region and you’re not a frontline operation, it may be time to start seriously considering your options.
The current volatile business environment, though, means that many owners find themselves in limbo, uncertain which direction is the best one and what steps need to be taken to secure some kind of successful future. If that sounds like you, then it’s time to take a long, hard look at your Business to see if there is anything you can do to improve it. Alternatively, you may think it’s time to have your Business valued, either to find out what it’s worth in preparation for a potential sale or to use as leverage to extend your banking facilities – and Professional Business Plans and Indicative Business Valuations are precisely what Into the Blue NZ Limited has been mainly occupied with during this current lockdown
1. Business Plans include a review of your Business to see if there is anything that can be done improve it. In most cases there can! If you want to retain your Business but cash flow has become a major issue, then you need a Business Plan to pinpoint what needs to happen to (a) improve profitability and/or (b) create a professional document for presentation to your bank or other financial backers to secure extra funding to see you through these hard times. Into the Blue NZ Limited will work with you to produce a Business Plan that both demonstrates your business’s continued sustainability, and provides to both you and your financial backers a roadmap to your business’s return to financial health. In short, a professional Business Plan creates a lifeline so that you can obtain the funds (cash flow) needed to see you through this latest Covid-19 crisis. Because of their high worth to a company, Business Plans can be expensive ($3,000+); however Into the Blue NZ Limited will help existing businesses gain access to the Regional Business Partner Network ‘s Management Capability Development Fund to pay up to 50% of our fees. For Start-Ups – who do not qualify for co-funding – there is an Advice Grant of up to $5000 available through Work and Income to pay for professional support to help you develop a Business Plan.
2. Indicative Business Valuations will give you a good idea of what your Business is worth on the open market. Into The Blue NZ Limited can complete your valuation at a capped fee of $1,250 + GST. The fee is comprised of the following elements:
• Up to a maximum of 1 hour to discuss your Business and obtain the required accounts
• Whatever time it takes to complete the valuation
• Up to a maximum of 30 minutes to discuss the valuation
• A fixed cost of $150 + GST to obtain the business multipliers applying to your Business
If your accounts are complete, accurate, and in Excel format then the total cost is likely to be less than $1,250 + GST. Indicative Business Valuations can also be instrumental in helping secure additional funding from your bank as they show your business’s net worth.
For more information about Business Plans, Indicative Business Valuations and Government Funding, please contact John Raffaelli on (021) 625-871 or visit our website here.
In the meantime, the Government has announced a third round of Wage Subsidies; and a second round of Resurgence Support Payments will be available from this Friday, 17th September.
John Raffaelli (Into the Blue NZ Limited)