Virgin Australia’s recent collapse shocked the trans-Tasman community. However, it has provided SMEs with a valuable opportunity to gain a better understanding of cash flow, self-sufficiency and how to weather any storm.
Virgin Australia has entered voluntary administration with hopes of being reborn under new structures of ownership and fresh strategies.
There is definitely more to this story than meets the eye. Savvy entrepreneurs can dig below the surface to uncover the forces that led up to the event, in this case Virgin Australia’s voluntary administration. Small business owners can learn about what practices to avoid.
The three main takeaways from Virgin Australia’s collapse are:
1. Avoid spreading yourself too thinly
Virgin’s financial troubles began long before the COVID-19 crisis, which saw it enter voluntary administration.
Earlier this year, the airline was reported to have more than 12,000 creditors to which it owed close to $7 billion collectively.
In fact, …