Will business survive?
Are you going to be one of the hundreds of thousands of businesses that shut up shop?
After the GFC over 638,000 Australian businesses shut up shop. That was a 26.4% failure rate nationwide! 1 of every 4 Australian businesses…
And other countries around the globe fared worse.
Right now, experts are holding their breath waiting for a repeat. The reason it hasn’t happened in Australia as predicted post-COVID Is because of the $billions provided by federal and state governments.
Good news if you’ve been able to put those funds to use BUT bad news if not.
Either way, you know that there are challenging times ahead for all businesses. And to survive and move forward most need to lift your game… and critically free up your time.
So, is there a way to try to avoid the mayhem.
Having watched past recessions – the answer is yes – for some.
Following the turmoil of the recession in the 90s, the one thing we experienced was an enormous rebound for those who were ready. And we don’t believe it is going to be any different this time.
Obviously, the impact of the recession on business and Australians was fierce. It caused inflation and unemployment which forced people out of work and to reassess their lifestyle choices.
These difficult lifestyle choices for some people were the foundation of a couple of seismic shifts in business. Professionals and middle management, frustrated with employers they believed were dealing badly with the situation or who were forced out of employment left work or took redundancies to take control over life. We are seeing that right now in the beginnings of the great resignation.
Firstly, there was a demand for well organised businesses and franchises because this group knew they needed established businesses with business training and support offered by the best.
Secondly, the professional background of many people coming out of employment meant people were looking for a wider range of business type, affordable trade and professional outlets were magnets. We brought in Expense Reduction Analysts on the back of this change in demand.
This time I am seeing a number of similar drivers.
People have been forced out of their regular employment. Airline workers taking up shelf stacking with Woolworths for instance. Or they have been forced to work in a different environment through our many lockdowns with long stints at home making them realise they don’t want to return to daily commutes away from the family again.
Some are also making decisions to liquidate assets. People are selling city homes and moving to regional areas, banking the $100K to $250K plus difference in house price and realising they can invest in a different lifestyle through business if they want. Some have also received healthy redundancies to add to the windfall.
Many of these people will be attracted to business rather than employment, franchised or not.
In addition, time has changed the market. Women have a much bigger profile in business. The more successful businesses are niched, offering only part of what used to be handled by generalists. This is because business owners are becoming savvier about where the money is made. For instance, one client with many years’ experience in the general home renovation market, has honed the product so now they supply kits to the trade and DIY markets for covered outdoor areas. The building industry is breaking down into smaller and smaller product markets.
So, what do I see for the future in business in Australia post 2022?
It will be amazing.
It will be different.
Provided you do business properly and recognise the differences in the business world as you move forward.
Here are some things to consider…
This way you will build a money focussed, systemized and scalable business your staff will want work in to free up your time so you can ‘work ON your business’ and ‘not be drowning IN your business.
Check us out to see how you can achieve this