Over the years, I have been involved in many natural disasters throughout Australia, so I understand the challenges Cyclone Alfred has created for affected retailers. If your business has been impacted, here are some practical steps to take after Cyclone Alfred retail impact.

Financial Hardship Assistance

Please get in touch with your lender right away if you're having financial difficulties. Major banks, e.g. NAB bank. There are dedicated hardship teams trained to assist customers affected by natural disasters, but you need to act ASAP, as most of these programs end next month. These teams have quite a lot of power and can offer you temporary financial arrangements such as reduced payments, payment deferrals, or alternative payment plans. Inquire if these arrangements can be backdated to protect your credit score.

Many lenders offer additional assistance, such as deferring loan payments, waiving fees, consolidating debts, or deferring credit card payments.

In my experience, they want some token repayment level to demonstrate your commitment to recovery.

Government Support

The Australian and state governments have several disaster recovery programs for Cyclone Alfred, such as NSW. Check eligibility for support for these schemes. These programs offer grants and low-interest loans to aid small businesses' recovery.

Supply Chain Management

Cyclone Alfred has disrupted many regular supply chains, making it difficult to get products. If your current suppliers have not contacted you yet to find out the score, contact them. Reach out about any changes in your business operations.

Staff Support

Your employees are the backbone of your business. Please be sure to provide flexibility and understanding as we navigate this situation. Many have a considerable emotional toll.

Community Engagement

Your customers' needs will change in the immediate time frame. You need to check on this.

People are telling me that the public is now hot buying damaged goods. If you have damaged goods, it's a good time to clear them out.

Customer Communication

Could you update your website and social media, like Facebook and Instagram, to reflect business changes? Share images and messages about changes to your shop? Share updates about your recovery progress especially damage, and your hours. It keeps customers engaged, and it's something they can relate to.

Also, if you have a customer database, could you consider making email newsletters? These direct communication channels ensure that critical information reaches loyal customers quickly. If you want any help with this, we can set you up with a free email newsletter service.

Insurance Claims

If your business has been damaged, please go ahead and review your insurance coverage immediately. You must document everything thoroughly—take photos and videos of any damage before clean-up efforts. This evidence will be essential when lodging claims with your insurer. The Insurance Council of Australia has declared Cyclone Alfred an Insurance Catastrophe, meaning your claims will be prioritised.

Utility Providers

Please let your utility providers know about your situation. Many of these also have hardship programs for businesses affected by disasters. Request payment extensions or deferrals to ease cash flow. Question any late fees, reconnection costs, or other cyclone-related charges. After all, it's not your fault the cyclone happened.

Protecting Your Equipment

After Cyclone Alfred, electricity supply remained unstable in some places. A UPS (Uninterruptible Power Supply) can help as it protects your POS systems and other electrical tools.

Communicating with Your Landlord

If you lease, contact your landlord about any cyclone damage affecting operations. If you ask they may help with temporary rent reductions or delay payments.

Determine who is responsible for what. Also, these repairs must be done now.

Documentation is Key

Keep detailed records of communications with lenders, insurers, utility providers, and landlords. Save copies of emails, letters, agreements, and receipts; too much documentation is better than insufficient.

Contact your state's Ombudsman for support if you have issues with specific organisations. They can intervene for SMB retailers in disputes with utilities, financial institutions, or landlords.

Disaster recovery for businesses

Recovering from a disaster like Cyclone Alfred can be challenging for SMB retailers, but taking proactive measures can make a significant difference.

Disclaimer

While this article provides general advice on managing the aftermath of Cyclone Alfred, you should consult local authorities or disaster management experts for specific guidance tailored to your business needs.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The Australian government plans to introduce a mandate requiring businesses to accept cash for essential items. This initiative aims to support those who rely on money and ensure the resilience of the payment system.

I don't know what an essential item is. I doubt anyone knows.

Many of my clients have given up on cash, but many more are committed to it.

Key Points of the Proposal

• Businesses selling essential items must accept cash payments
• Appropriate exemptions for small businesses The consultation period is open until 14 February 2025
• Proposed implementation date: 1 January 2026

Implications for Australian Retailers

While these policy objectives aim to protect consumers, they may present specific operational challenges for you.

Current Cash Usage Statistics

• 13% of transactions in Australia were made using cash in 2022
• 1.5 million Australians use cash for over 80% of in-person payments
• Up to 94% of businesses currently accept cash

Click here for more details

The Treasury seeks feedback from businesses like yours to shape the final policy.

If you want to supply feedback, here's how you can contribute:

1. Review the consultation paper on the Treasury website here

2. Submit your response by 14 February 2025

3. Share your unique perspective

International Context

Similar cash mandates have been implemented in countries like Spain, France, Norway, Denmark, and some US states.

Stay Informed and Prepared

The retail landscape in Australia is evolving, and staying ahead of regulatory changes is crucial for your business success. This cash mandate could significantly impact your daily operations, from technology investments to staff management.

In Victoria, our state government runs an electricity and gas comparison website here to help consumers find the cheapest deals, and it's marketed as a way to save money.

All well and good, but how reliable are the figures on these government comparison sites?

In my recent experience, the rates shown there do not match what suppliers quoted me when I went direct. Here is my story.

My Experience with the Victorian Energy Compare Website

What happened is that I went to the Victorian Energy Compare website looking to save money on my energy. The site recommended a new supplier that is cheaper than my existing provider, RED Energy.

However, when I checked online reviews for this recommended supplier, I found many poor reviews about their customer service. After reading many complaints, I got the message to stay away.

So, knowing the price, I called my supplier, RED Energy, directly to ask for a new quote. To my surprise, without even mentioning my quoted price, RED Energy gave me a quote over the phone that was significantly cheaper than what was shown on the government comparison website!

My thoughts: Don't Trust the Figures on Comparison Sites

This experience taught me an important lesson - don't take the rates shown on government comparison sites as gospel. The figures displayed for my existing supplier, RED Energy, did not match what they quoted. There is more to it than what is told to us. If I had listened to them, I would have a poorly rated electric supplier with a dearer price.

Has This Happened to You?

I'm curious whether other people have had similar experiences with this or similar government comparison websites did not show accurate rates compared to what you were quoted directly by suppliers.

The bottom line is that, based on my experience, it may be helpful as a guide, but you still need to contact these suppliers directly.

Since October 1, the federal government declared that it would increase its recovery loan plan for businesses. This scheme is to enable lenders to give more business owners financing. 

What the government will guarantee 80% of the loan up to $5 million with a limited or flexible interest rate. This is for a maximum term of 10 years. I know most of us want longer, but that is what they are giving.

Since then, we have been thinking of refinancing as interest rates are expected to go up, so it would be great if we could get it fixed. Plus like many of us, we have our pet projects to expand our businesses as the restrictions are being lifted. For example, I am keen to expand our cheap hardware sale with some large purchases. We are known for being cheap in hardware, and I would like to build on that with some large purchases. Let me know if you are interested in a group buy.

The other problem is the current supply chain interruptions because of this we all need more buffer stock. This will result in more inflation. Those of you that can remember the 70s will know how worrying inflation can be. 

Since it looks like a good offer by the government, I decided to tell my readers here. 

There are some conditions which I doubt would be a problem with many of our readers. 

-Have an annual turnover of fewer than 250 million dollars
-Have received payments from JobKeeper between January 4 and March 28, 2021, or been financially affected by COVID-19

Be warned with the banks, it's always the same story. The loan officer wants to get your business but on top of that character is someone whose task is to ensure no loan goes ahead. Currently, the difficulty with the banks is not security, but you have to show your capacity to repay the money. How do you do that with our last few years with COVID? If your business is up, the bank said it's because of COVID, and they expect it to come down. If it has gone down, well, these are figures they use. 

For more information, including how to apply, visit the Australian Government website here.