Being in business is hard work. Sometimes, no matter how hard you work, the plans you put in place, the investments you make, it just doesn’t go your way.
In the world of fantasy, a dead body reincarnates somehow and becomes undead. A zombie. So too in business. To give businesses a chance and to get money to the people, the government provided support through a comprehensive fiscal stimulus package. A financial lifeline. The Government also changed the rules of the game around debt enforcement and insolvent trading.
It has been a game changer, and rightly so. Like any initiative, there are intended and unintended consequences. One unintended consequence has been the creation of zombie businesses. These are businesses that have financial challenges.
So much so, that a lot of them should be shut down. The only reason they continue to exist is because of the Government’s fiscal measures.
Your job in the current climate is not to become a zombie. It might be good to get the extra sales away but if the company you are dealing with is a zombie business, you might not get paid. In the worst case, you may become a zombie yourself.
COVID19 has taught us to be vigilant, take simple measures and take them well. Early intervention is the key.
Look after your business. Take care of yourselves.