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Edition 306 – New Year’s Musings

Written by Dean Robinson.

Happy New Year! May 2022 be one of good health, much happiness and great success, no matter your endeavour or your calling.

As I’m wont to do at this time of year, here’s some predictions for 2022:

  1. The current Federal Government will win the next election, due before the end of June. They may not command a majority, however they’ll form the largest bloc in the Parliament.
  2. People will holiday away from Queensland and Western Australia, which will put pressure on the tourism industry particularly in Queensland. That has significant implications for employment, if nothing else.
  3. People issues will get tougher. From unfair dismissal to disruptive employees, all owners and managers of family businesses are going to need to be on the front foot – which for most of you, is not your natural stance when it comes to employees.
  4. This year’s flu season will be significant – prepare your team early.
  5. Inflation could put pressure on costs inside your business, including salaries. Be prepared – when it’s happening in the unionised industries of Education and Transport, it’s only a matter of time before it filters down.
  6. Supply chain issues aren’t going away – in fact, I expect they’ll deteriorate. This will involve a significant re-think around stock levels as well as cash levels in business.
  7. Should any new variant of COVID 19 lead to lockdowns, don’t expect either the Federal or State Governments to come to the party with handouts to the extent they did through 2020 and 2021. The pot is dry – and the criteria for qualifying will be significantly tighter.
  8. It will never be more critical for businesses to budget in the 2022/2023 financial years. So few do it and, in essence, fly by the seat of their financial pants. Banks will expect to see a budget if you put your hand out.
  9. Continuing with banks, lending will get tighter. They’re concerned about rising asset prices and the ability of individuals and businesses to fund debt once interest rates return to pre COVID levels.
  10. Entrepreneurship will increase dramatically. Your employees may not be thinking about leaving you for another employer, but leaving for a life that they can create and control, something which being an employee can’t facilitate.
  11. People will become complacent around COVID and my guess is the take-up of the Booster vaccination will be considerably lower than it was for the initial vaccine. That presents risks for all of us.
  12. Mental health will be a dramatically deteriorating situation for employers and workplaces. It’s time to prepare a strategy not only for how you’ll handle a particular individual’s situation, but for how you compensate for the impact inside your business.

I’m confident about 2022, irrespective of the potential challenges that we may all face. The reason for my confidence – our experience of the last two years and how we all have been able to endure in spite of the difficulties many experienced.

This Week’s Tip

“Take a moment to consider what your 2022 may look like in your family business.
 This time to “forward reflect” will help you strategise how you need to plan out the year”.