Essential Business Tips for 2022

This article first appeared in the February 2022 issue of Digital Image Magazine

This year is already shaping up to be one of challenges and uncertainty for businesses of all sizes. Dealing with the ongoing and shifting effects of a pandemic, along with the regularly changing business requirements, continue to dominate our thoughts and actions. Add in a federal election this year, most likely in May, and the possibility of an interest rate rise and 2022 will be another year to remember.

Charles Watson, GM – IR, Policy and Governance, The Real Media Collective provides a review of numerous issues, pandemic related and otherwise, that you should consider addressing in your business before the year gets away on us all.

Triaging the Supply Chain

Over the last two years, we have seen a growing negative effect on supply chains of all kinds. Australian ports are congested, and international shipping times and costs have increased. From a domestic perspective, we are experiencing distribution and transport delays across various industries and sectors. Current expectations are these issues will not completely ease this year.

Businesses should be familiar with their entire supply chain to manage related issues. Complete transparency in multi-tier supply chains can be challenging to achieve; however, seeking access to as much up-to-date supply related data will assist you in diagnosing any pain points and making the best decisions for your business. Further, proactive and honest communication with customers remains an imperative if you want to keep them sticky throughout periods of ongoing disruption. Additionally, if you are not already, businesses should consider diversification of supply, any potential purchasing benefits that collective bargaining may offer, and whether a certain level of stockpiling is necessary.

Director Identification Numbers

To further overcome illegal phoenixing activities, the federal government has implemented a regime that requires directors to obtain a unique 15-digit identifying number which, once issued, will remain with that individual for all directorships and life. If you haven’t applied already, you will need a director ID to be an eligible officer of a company or other body corporate registered under the Corporations Act 2001. Essentially, an eligible officer is a person who is appointed as:

• a director.

• an alternate director who is acting in that capacity.

Application Process

Applications for a DIN are made via the Australian Business Registry Services website. You will need myGov ID to apply for your director ID number online. Additionally, you will require several pieces of information to complete the application process. The online application process is relatively straightforward and takes approximately 10 minutes. Applications must be undertaken personally, although an authorised third party can apply for the DIN on your behalf. If the Registry is satisfied, you are unable to make the application. 

Application Timeframes

When a person must apply for your director ID depends on the date they became a director:

• on or before 31 October 2021, they have until 30 November 2022 to apply;

• between 1 November 2021 and 4 April 2022, they have 28 days from their date of appointment to apply; and

• from 5 April 2022, they apply before their appointment.

Failure to apply for and have a DIN by the required date is an offence providing false identification evidence that has both criminal and civil penalties.

Cybersecurity Management and Response Plan

Given various technologies to collect and store information relating to workers and clients, cybersecurity is a common issue that every business needs to address regularly. Over the last few years, there has been a significantly increased rate and variety of cyber-related attacks on businesses. These attacks cause business disruptions, loss of data, reputational damage and financial loss.

However, there are numerous basic steps you can take to reduce the likelihood of this occurring and minimise the detrimental effects of such an incident does occur. As part of a cyber incident management and response plan, businesses should, at a minimum, ensure and confirm:

• anti-malware software is maintained, up-to-date and regular backups of servers and information occurs.

• systems are regularly reviewed and tested.

• administrative system login pages are not linked on your public website.

• regular communication with employees reminds them of the risks associated with suspicious downloads and links.

• all passwords are periodically updated, and two-factor authentication is used wherever possible.

In the event of a cyber incident, your response plan should also include appropriate steps to contain any breach, and responsibilities of staff members, along with the contact details for your IT and server hosting providers.

Terms and Conditions of Trade

Over the years, I have seen various businesses using poorly drafted and outdated terms and conditions of trade that do not appropriately reflect current law and do not adequately protect the business. A businesses terms and conditions of trade are a vital instrument that defines and regulates the relationship between your business and your client. The document needs to appropriately cover the field of possible issues as comprehensively as possible. It will assist in clarifying the terms agreed upon by your client and minimise disputes that may arise.

Additionally, your words of trade will be one of the primary documents that form the basis of any claim against a client if you need to recover unpaid debts. Further, your terms of trade should, and at times are required, comply with various legislative schemes such as the Personal Property Securities Act and Australian Consumer Law. If you haven’t revisited your businesses terms and conditions of trade for a few years, I recommend diarising it for review.

Covid 19 Booster Shots

Last year created a few headaches for businesses in consideration of an approach to requiring COVID-19 vaccinations for their workers or not. By now, most workers have been double vaccinated for up to six months. This means many can now undertake a booster shot as recommended by the Australian Department of Health.

Booster doses are available, free of charge, to everyone 18 years and over who have had both amounts of their primary course of a COVID-19 vaccine. Although COVID booster shots are not mandatory, they are recommended to maintain immunity against COVID-19. Please consider your businesses position on requiring workers to undertake a COVID-19 booster shot this year and any related promotion and communication on the issue in your workplace.

Prioritise Your Well Being

I want to conclude this article by stressing the ongoing importance and benefit of looking after your wellbeing and that of your workers this year. Everyone’s lives remain complicated, and rates of burnout and mental health issues that have arisen due to navigating through the unpredictability of recent times remains high. However, there are outstanding resources and assistance available for you and your business if required. Although our industry is made up of individuals who have their own experiences, it is most certainly a community that has, for the past few years, shown it is open to helping each other, and all you have to do is reach out.

Written by

Charles Watson

GM – IR, Policy and Governance

The Real Media Collective

This article is general and guidance only and does not constitute legal advice.