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How to steer your small business through tough economic times

- May 27, 2020 2 MIN READ

The most incorrect statement I am hearing right now by business owners is that demand for their goods and services has dried up, writes Brian Sher, Co-Founder The Fortune Institute.

That is a myth. Demand is never lost, it just moves around. Over 200,000 small businesses are predicted to close their doors for good within the next six months but many can prevent this from happening by finding where their demand has shifted to in their industry.

That is a problem in itself with many SME owners so busy simply trying to run their day to day operations of their business they don’t have time to sit and look at the big picture. This is where Government and big business could step in and lend a hand.

The Prime Minister has just announced JobMaker, to focus on retraining and upskilling employees – which is great for people who are clinging to their job, or out of work – but business owners need assistance too.

JobKeeper is already in place with the government offering temporary money, but that will run out fast. What small businesses desperately need is training on how they can rebuild. If they don’t get this crucial training tens of thousands of businesses will go under. We are heading for a small business disaster.

SMEs need the opportunity to access expert business advice at no cost. Having a second set of eyes, specialising in growth, look at your business and tell you where you can cut costs and generate more income would be a game changer.

The starting point for SMEs to get through these turbulent waters is increasing their revenue and demand. Here are four areas to focus on when finding ways to generate more income.

Human Behaviour

People have changed since Covid-19. Hygiene is their number one priority. There will be demand for services, products and technology that reduce the risk of consumers coming into contact with unhygenic surfaces. Highlighting how your business can make that happen will put you ahead of the competition.

Side Hustles

Cash flow is getting smaller as people lose their jobs or take pay cuts so many will be on the lookout for a way to earn some more money. Businesses can pivot to create franchises or look to technology developers to help them start their own online business.

Cost savings

Finding ways to help people save money will attract new customers. Previously consumers would only look at premium products but now they are open to purchasing inferior ones to save money.

Locally made

Covid has sparked a resurgence in local manufacturing so now is the time to look at your skill set and see what else you can create. People want to support local businesses and feel safer having products made here rather than overseas.

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