How people shop, when people shop and where people shop has changed fundamentally. Online has grown and continues to grow. People shop more with purpose now. There is less browsing. More people work from home permanently. What interests people has changed. People think more about the future now. People are less physically connected now, and more connected as a result. Australian made is more interesting to shoppers now. Shopping local counts for more than it used to. Tech barriers from before have been overcome: think QR codes, click and collect and the number of people shopping online for the first time.
These are some of the changes Covid has brought our way and in each of these is opportunity. While some business owners ask governments for cash to deal with today, it’s tomorrow that will really challenge as what Covid has kicked off and pushed forward will not u-turn.
We need to make our own Covid support package as it is this package that will be more useful to us in the future.
- Expand sources of revenue. Carry products and services that attract people who have not shopped with you before. Expanding your shopper reach insulates your business.
- Smooth the peaks. Look at your key business data points: sales by product category, sales by supplier, sales by staff member. Look at the peaks in these and if they are considerably higher than average, lift others so you are less reliant on the peaks.
- Expand your sales points. Having only the in-store sales counter as a sale point is a risk. Make sure you are online through your own website, on eBay and on social media so people can purchase where they want. Selling to people you will never see is key.
- Nurture loyalty. Run an easily understood loyalty program that differentiates your business.
- Chase efficiency. Efficient shopper visits have more items in the basket. Develop a strategy for driving this. It starts with understanding your current position.
- Entrench in the community. Supporting the community groups that support you is good for business. Doing this in a consistent and mutually understood way delivers benefits that can insulate the business when rocky roads present.
- Be frugal. Covid has taught us the value of having money in the bank. The trimmed roster, reduced inventory in the back room, lower overheads, early settlement discount taken … they all free cash that can be banked for when you will need it.
- Reduce debt. Every additional dollar you pay off business debt is a saving greater than the dollar itself.
- Look for the pivot. Keep asking yourself what if this or what if that. Think about pivot opportunities in those situations. Always have a pivot move or two and, if it makes sense, pivot early, ahead of the need.
- And, have your shop reflect how people shop now: make it easier, safer, serving quick shopping, packaging bundles, offer browsing without touching.
By being actively engaged in these and allied areas in your business you can create your own insulation against the challenges of Covid or similar. These suggestions and others they trigger make up your own made Covid support package.