Food For Thought: Financial stress is tough. Here's how to beat it.

Welcome back to #FoodForThought, a newsletter serving up food for your brain — exploring news headlines, economic trends and workforce issues. Below, you’ll find insights from small business show #TogetherInBusiness and a spotlight on entrepreneurship. Hit subscribe above to be notified of future editions and share your thoughts in the comments.

The financial toll of the coronavirus pandemic runs long and deep through the small business community. 

In March, a Goldman Sachs small business survey found 51% of small business owners could operate for only zero to three months during the quarantine period. Fast forward to May and at least 2% of small businesses had closed their doors permanently. 

In an MYOB survey of business owners, more than half cited financial concerns and the economic impact of the coronavirus crisis as a key source of mental health challenges.

This week, the Morrison government announced plans to provide support beyond the planned JobSeeker and JobKeeper end date, extending the wage subsidy package until the end of March for several million Australian workers.

But it comes with a caveat: recipients will have to undergo an eligibility test to "ensure the payments go to those in genuine need," The SMH writes. The wage subsidy for full-time workers will fall from $1,500 to $1,200 a fortnight and part-time workers to $750 down from the current rate of $1,500.

The JobSeeker unemployment benefit will also receive an extension amid the pandemic, as the government seeks “to shore up household incomes through the recession,” but will fall from $550 to $250 a fortnight.

What do these changes mean for so-called “JobKeeper businesses”? How do firms that survived the initial trauma of the pandemic move forward in the new economy?

This week on #TogetherInBusiness, ANZ CEO Shayne Elliott, Stone & Chalk Head of Community Cheryl Mack, and entrepreneur Rami Ykmour joined me to discuss beating financial stress. Together we covered:

• The tools and resources small businesses should be accessing now.
• Capital raising for startups and where to begin.
• Knowing how, when and where to scale your business.
• Leading from the heart.
• Why adaptability is your greatest asset in crisis times.

Watch: Together In Business in full above

Latest conversations

Perth Airport became the nation’s busiest aviation hub for the month of June, aided by the number of fly-in, fly-out workers from mining hubs. 

Coles and Woolworths have gobbled up another six percentage points of the total Aussie food market in recent months. 

Coronavirus redundancies have affected all age groups but older job seekers face additional challenges, experts say. 

With international travel all but impossible at the moment, Australians are opting to holiday in their own state with travellers swarming to Airbnb to book same-state breaks.

Lorna Jane has withdrawn a line of 'anti-virus' tops and leggings from its website, described by several peak medical bodies as “a misleading and cynical attempt to exploit pandemic fears”.

Australia's unemployment rate hit a two-decade high of 7.4% in June — but experts say the actual number of people out of work is significantly higher.

Resources for your business:

• How Treasury is supporting small businesses.
• Income support for sole traders
• The Australian Small Business and Family Enterprise Ombudsman My Business Health portal.
• Information, grants and assistance state-by-state.
• COSBOA COVID-19 small business quick links.
• The Australian Chamber of Commerce and Industry's employer help guide.

Spotlight on: Entrepreneurship

You don’t have to look far to see companies engaging in new entrepreneurial activities — from distilleries producing hand sanitiser to fashion businesses like FORD Millinery pivoting from headwear for racing carnivals to manufacturing face masks. The crisis has created opportunities (and external pressures) for businesses to step out of their comfort zones to become more innovative.

And what of those entrepreneurial individuals with a business idea they’ve been quietly working on? Slingshot founder Craig Lambert has been at the early stages of startups as an investor and mentor and tells Get Hired Australia he’d never inherently discourage anyone from working on a startup, even amid a pandemic.

So if you’ve been stood down, made redundant or perhaps ditching your morning commute has given you some time back, is now your moment to launch a new business venture?

Lambert tells LinkedIn News editor Cayla Dengate that investors are keeping an eye out for ideas that will work amid the pandemic because consumer behavior is changing so rapidly that a good idea three months ago may not be relevant today.

Together In Business: Entrepreneurship during crisis times

Want to know more about entrepreneurship during the crisis? Join LinkedIn News Australia on Tuesday at 2pm AEST for a new edition of #TogetherInBusiness; a weekly LinkedIn Live show talking about the issues that matter to small business owners and their employees. 

Each week, we'll hear from business experts on topics like maintaining cash flow, retaining customers, wellness and the economy. 

Next time: Yellow Brick Road entrepreneur Mark Bouris, communications director and founder of #ausindigenousfashion Yatu Widders Hunt and co-founder of hospitality tech platform HungryHungry Mark Calabro join me to talk entrepreneurship. 

We want to hear from you. Do you work for a startup? Has the crisis helped or hindered your growth? How has your business innovated during this time? Or perhaps you’re wondering how to turn your passion project into something more. What are the challenges you’re facing getting your ideas off the ground? What are the tips you need to help communicate your message?

Share your thoughts, queries and questions in the comments below and we’ll answer them in next week’s show.

Watch #TogetherInBusiness live Tuesday at 2pm AEST. Follow LinkedIn News Australia to receive a notification when we go live.

Something for you

Each week, I try and end on something to make you smile and think:

• As the pandemic continues to evolve, what may have helped us cope at the outset may not do the trick any longer. So how can we stay resilient? Here are some tips. 
• While making the case for a new idea to a reluctant audience at work, it may be tempting to turn up the volume and argue harder. Here’s how to work smarter, not louder. 
• Adopting an authentic leadership style can help you build better relationships with colleagues, while creating an environment where employees feel comfortable being themselves. Experts have this advice.

Additional reporting by: Cayla Dengate, Andrew Murfett, Scott Olster, Yunita Ong, Capucine Yeomans

(Photo credits: Getty Images)