Jeweller - April 2020

STRATEGY FEATURE | Coronavirus Survival Guide
TURNING PANIC INTO PRODUCTIVITY
SHARPEN YOUR TOOLS:
EDUCATION & IMPROVEMENT
The six-month period of ‘hibernation’ presents an opportunity
for store owners to reassess their business and improve their
skills in a number of areas.
Perhaps the most important skill within the current business
climate is e-commerce and digital communication. Retail
jewellers can contact their buying group or refer to the
Australian Retailers Association (ARA) website.
Improve Business Management Skills
E-commerce: While e-commerce currently accounts for just
10 per cent of Australian consumer spending, the figure has
risen significantly year-on-year and will be the primary channel
of purchase for most consumers over the next six months.
Buying groups and all-in-one services such as Squarespace
and Wix can provide efficient and low-cost education and set up
of e-commerce stores, or integration with an existing site.
Marketing: Marketing is not simply advertising or public
relations; instead, it uses analytical methods to determine the
best ways to maximise sales and ensure consumers desire,
seek, find, and purchase products. Now is an excellent time
for businesses to reassess and recalibrate their marketing
strategy for the next six months – and beyond.
Sales: Though businesses are likely to be in hibernation for
the next six months, sales techniques can still be learnt and
applied. Connecting with customers and closing sales through
digital channels such as social media or through web chat
requires a different skill-set than in-person sales. Software
solutions like Podium can help you to manage communication
with your customers, as well as business reviews on Google.
Management: Managing staff remotely through services
such as Zoom or Skype can be difficult. At the same time, a
crisis is a critical period for leadership. Managers should use
this time to research ways to boost morale and support their
team, as well as lead by example in customer service.
Improve Trade Skills
CAD / CAM: Once touted as disruptive technology, CAD/CAM
and 3D-printing have now become mainstream with some
customers even bringing their own printed waxes to jewellers.
Businesses need to stay ahead of their customers, so now is
the time to brush up on those Rhino skills!
Gemmological Classes: Always been great with
jewellery design but wanted to fill your skill gap with
gemstone knowledge? Online courses are available with the
Gemmological Association of Australia (GAA) and Gemological
Institute of America (GIA).
Trade Media: Brush up on business know-how, industry
news and jewellery trends by accessing your trade media
website. Jewellermagazine.com has more than 7,350 articles
compiled over 12 years, including valuable sales and business
management advice.
Read comprehensive business articles on these topics in
the Tips On Selling, Logged On, and Management sections
of jewellermagazine.com.
FEDERAL
GOVERNMENT
Financial
Support
$20,000 – $100,000
Cash payment
from 28 April 2020
Under the enhanced
Boosting Cash Flow for
Employers measure,
eligible businesses will
receive the payment as
a credit from the ATO
upon lodging upcoming
activity statements
(monthly or quarterly).
A bonus payment equal
to the first payment
will be made to eligible
businesses following the
lodgment of June, July,
August and September
activity statements,
provided they continue
to operate.
$10,000 – $50,000
Cash payment
from 28 April 2020
Under the enhanced
Boosting Cash Flow for
Employers measure,
eligible businesses that
withold tax to the ATO
on employee salaries
and wages will receive
a payment equal to
100 per cent of the
amount witheld, to a
maximum of $50,000.
Eligible employers that
pay salary and wages
will receive a minimum
payment of $10,000,
even if they are not
required to withhold tax.
$1,500 fortnightly
JobKeeper payment
April 2020
Businesses that have
seen a 30 per cent
decline in turnover
due to COVID-19 may
be eligible for a $1,500
fortnightly subsidy
to retain employees
(full-time, part-time,
or casual). Employers
must register for the
JobKeeper scheme
with the ATO.
Under Australian law, business owners are required to
ensure the health and safety of employees and others
in the workplace ‘so far as is reasonably practicable’.
According to Safe Work Australia, this means business
owners must identify and eliminate, or minimise, hazards
and risks (see breakout ‘Hygiene & Store Maintenance’).
Financial support
At the same time, retail business owners should seek
financial assistance, as social distancing and hibernation
measures are unlikely to be relaxed for at least six
months. The Treasury has set up a dedicated page and
support service for businesses, which can be found at
treasury.gov.au/coronavirus/businesses.
As part of its stimulus spending package, the federal
government announced that owners of small and medium
businesses – those with annual turnover under $50 million
– with employees may be eligible for the Australian
Government’s Boosting Cash Flow for Employers measure.
It will provide a payment of $20,000–$100,000. Another
payment will be made between July and October.
Employers may also be eligible for a payment equal to 100
per cent of their salary and wages withheld, up to $50,000.
Further financial support measures, including an increase
to the instant asset write-off and Commonwealthguaranteed
loans, have been introduced.
In addition, small businesses employing fewer than 20
full-time employees can apply for a 50 per cent wage
subsidy for current apprentices and trainees. Details
are available from the Treasury’s dedicated page.
Meanwhile, Treasurer Josh Frydenberg announced the
JobKeeper wage subsidy system for full-time employees,
telling Sky News, “[It’s] about what we will do to support
employers and employees and this is all about ensuring
that people can continue to remain in jobs.”
He clarified that JobKeeper does not mimic the UK’s
‘80 per cent wage guarantee’.
Instead, a $1,500 fortnightly payment will be made to
employers who opt into the scheme through the
Australian Taxation Office (ATO).
They will then pay the sum to employees, allowing them
to retain those staff throughout hibernation.
Earlier this month, Frydenberg said, “The economy
is actually in a position of strength to respond [to the
coronavirus pandemic]... We will get over this and when
we’re over this we want to be stronger and we want to
be more productive as a nation.”
State governments have also taken action to support
businesses. In Victoria, Premier Daniel Andrews
announced a $1.7 billion assistance package.
It includes payroll tax refunds, waivers and deferments,
immediate payment of government invoices, and providing
a ‘rent holiday’ for tenants of government-owned buildings.
20 20 | | April 2020