Current Nasties in the Business World

There is no doubt that the last two years have been full of change and uncertainty. By looking ahead and planning for what we do know – we can help our business through the upcoming challenges

So what are the 6 main nasties that we currently face? In my view, honed by my contact with many SME’s they are, in no particular order:

1. Lack of qualified staff in many areas and skills
2. Problems in the supply chain – delays, shortages, increase in prices, all affect invoicing
3. Inflation – recently announced at 5.9% (Reserve Bank of NZ – Jan 2022), many businesses have never seen it this high and there is no doubt that you, your customers, the banks, the media, the ‘experts’ will be affected in some way
4. Margin Decreases – due to increasing costs, consumer pressure, competitive pressure on prices, you will need to adjust your historical perspective on margins
5. Cash Flow pressures – due to retained overheads, reduced turnover, borrowing restrictions – you will need to keep a sharp and flexible eye on your cash flow
6. Covid and its everchanging nature and response required

So how do we deal with these changes to our everyday business and personal lives?

I note below some positive, useful, and practical thoughts that may help you come to terms with the uncertainties and “nasties’

• Working on what you can control – this is not easy… but worrying and complaining about what you can’t control or change will not get you far – except more worry
• Inform yourself – you may not have had some of these issues in the past, but it’s a good time to get to understand them better. Some of these issues are complex, complicated and open to wide interpretation; if you learn more about them, you will face less uncertainty and may find new ways to adapt and help you overcome them
• Understand what: help, advice, and financial aid the Government provides – if you haven’t already, look into the Regional Business Partnership (RBP) Scheme, Business Mentors NZ, Chamber of Commerce and their free helpline
• Help others – karma is real. Teamwork, work with input from staff; small ad hoc advisory boards, meeting with like-minded business groups ( no talk of pricing allowed, but everything else is); exploring fresh ideas, brainstorming etc, all helps to open up the talk and then the action.
• Work locally. Refer locally – consider visiting and potentially joining BNI ( Busines Network International) Queenstown, or Queenstown’s Chamber of Commerce.
• Introduce a ‘repeat purchase’ incentive – drop in to Public Kitchen & Bar in Queenstown and check out their creative and, I suspect, successful incentive to go again
• Internally there are commonly lots of issues that you could overcome or improve upon – review your business and make a plan, make sure to collect a lot of data to base your decisions on, be well informed, be quick to adapt and change, have frequent reviews on how your business is running
• Most important of all – whatever you do, you must exceed your customer’s expectations. If you do not then you give them a reason to go elsewhere

There is also a more fundamental question that many people are considering…

Is this the right time to start a business rather than have a job?

Many mistakes have been made in the past when this question has been posed. If you are considering starting your own business right now, there is a great short book by John Angell – “Be your own Boss and Succeed” that I would recommend.

In it, he identifies the 7 qualities of a successful small business owner. These are-

1. A willingness to work hard
2. Being good with people
3. Paying close attention to detail
4. Being passionate about your business
5. Having respect for your business
6. Being able to handle stare
7. Setting a high ethical standard

Can you identify yourself in this list? If so – you may be a step closer to answering your question.