Australia’s 2.2 million small businesses can’t just rely on government relief packages to keep them afloat through the COVID-19 crisis, according to CQUniversity business expert Dr Andrew Roberts.
But the experienced entrepreneur and business coach says there’s a range of actions that business owners can take now to boost the return to operations after the shutdown.
Dr Roberts, an academic and researcher in CQUniversity’s School of Business and Law, has shared his expertise via new podcast CQUniversity Commentary.
He said that Federal Government initiatives for small business, including grants, loan guarantees, and the JobKeeper payment, were having a limited impact for small businesses.
“The small business owners I’m talking to are certainly feeling a little bit more comfortable now that there’s been a fiscal stimulus, but whether that stimulus is enough for any one particular small business is questionable,” Dr Roberts explained.
But he warned that small and medium enterprises (SMEs) needed to prepare for a different world when COVID-19 restrictions are eased.
“Just like after the Global Financial Crisis, I think whole industries will be reorganised and reoriented,” he explained.
“For instance, if some level of restrictions continue for six months, the nature of human behaviour means we will all get into a pattern of ordering more things online, relying more on services like Deliveroo.
“Even though retail outlets and cafes and all sorts of face-to-face business may reopen, a lot of people will still be relying on the digital world, and SMEs need to harness that trend.”
Understanding changing customer needs would be crucial to planning for the shift, and Dr Roberts said social media offered numerous ways to maintain connections with clients, even while your business is offline.
Surveying clients through Facebook, pivoting services to online, or even just providing regular updates, can create a “stickiness” with customers – for instance, closed restaurants offering recipes to followers for some of their most popular meals, or a coffee shop barista delivering Zoom lessons on how to recreate a perfect coffee at home.
“Although it may seem counterintuitive in the short-term, when the business is back up and running, those customers will make it their first destination,” he said.
“Owners can reach out – as start-ups often to – to customers, and involve them in creation of the new business model!”
Overall, Dr Roberts said developing a recovery strategy was vital for small businesses.
“Do some scenario planning, think about the worst-case scenario, and the best-case – going back to your business plan is a good way to stay above the chaos, and for building a recovery strategy.”
Dr Roberts agreed that it was an overwhelming time for small and medium enterprise, but said resilience was a hallmark of small business and start-ups.
“I’d ask owners to delve into the courage they had when they started the small business in the first place. They’re more adaptable than they give themselves credit for.”
In its first season, launched on Wednesday 22 April 2020, CQUniversity Commentary experts will focus on issues around the COVID-19 crisis, and how it impacts all aspects of our communities and lives.
To tune in, visit cquniversitycommentary.
Dr Andrew Roberts is available for interview via phone or Zoom.
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