May/June 2020 - BAY OF PLENTY BUSINESS NEWS

22 BAY OF PLENTY BUSINESS NEWS May/June 2020
Adaptability key to surviving the
‘new normal’
THE LAST WORD
For many businesses around the world, the COVID-19 crisis has
become something of an existential threat. National lockdowns and
limits on physical contact have forced many to change the way they
operate or go the way of the dinosaurs and become extinct.
And while quick action by the Government has meant New Zealand
has avoided the high number of fatalities seen in some countries
overseas, our economy and the businesses within it have still been
hit hard, particularly in sectors such as tourism and hospitality.
> BY JAMES HEFFIELD
Director of Bay of Plenty marketing and PR consultancy Last
Word. To find out more visit lastwordmedia.co.nz or email
james@lastwordmedia.co.nz.
As we move into the next
phase of the COVID-19
crisis, it will be those
that can adapt quickly that
survive.
Fortunately, there are
plenty of examples of businesses
making decisive decisions
already in order to
survive.
A prime example of this
was the Talisman Hotel in Katikati,
which sold its remaining
stock quickly to residential
buyers in the days before the
lockdown to stop food going
off and to recover costs.
The Waihi Beach Hotel
in nearby Waihi Beach took
a similar approach, gaining
permission to deliver alcohol
to people’s doors as an essential
service throughout the
lockdown.
This allowed it to continue
to bring in at least some money
while its bar and bistro are unable
to operate.
Many other hospitality
businesses across the Bay are
now ramping up efforts to sell
takeaway coffee and treats.
After weeks of Level 4
lockdown, many Kiwis are
likely to show as much enthusiasm
for buying a flat white
and blueberry muffin as they
did for toilet paper before the
lockdown began.
Export challenges
For New Zealand exporters,
it is other countries’ restrictions
to control the spread
of the virus that are posing a
challenge.
Many that have traditionally
exported consumer goods
to US and UK have found life
difficult due to restrictions on
courier deliveries to residential
addresses.
As a result, one client I
work with has shifted its primary
target market from the
USA to Australia. Australia’s
more relaxed lockdown rules
do not restrict residential deliveries
and this business has
been able to significantly ramp
up trans-Tasman sales by upgrading
its e-commerce infrastructure
and re-focusing its
efforts on promoting products
to Australians stuck at home
with little to do.
Other industries are adapting
too. The Mount Brewing
Company in Mount Maunganui
is using some of its brewery
equipment to make hand sanitiser
and Waihi Beach Physiotherapy
is offering telehealth
consultations and has moved
its Pilates classes online to ensure
instructors can be beamed
directly into clients’ homes.
ND Kiwi Tours in Katikati
shifted its focus from guided
tours for cruise ship passengers
to instead assisting elderly
and vulnerable locals to get
to the supermarket or pharmacy
to do their essential
shopping.
These are just some examples
of ways local businesses
are adapting to survive – no
doubt there are hundreds of
Adapting to change: The Talisman Hotel in Katikati, and Mount Brewing Company (below).
Photos/Supplied.
other clever ideas being put
into practice across our region.
The post COVID-19 world
is clearly going to be very different
to the world we knew
at the end of 2019, and it’s
unlikely our old ‘normal’ will
return anytime soon.
If you are truly passionate
about your business and want
to do best by your staff, now is
the time to embrace the digital,
consider new technology and
truly consider how your business
can continue to add value
and survive in the new reality
we all find ourselves in.
The 3 things that will impact your
survival over the next 12 months
By ISIS FARRELLY
Programme Director at
Weather the Storm NZ
Sole traders and small
business owners like
us tend to get into business
because we are good at
what we do and want to be rewarded
in direct proportion to
our efforts and, for many, we
want to build something that
provides passive income or
that we can sell and one day
put our feet up, for good.
Unfortunately none of
those reasons guarantee that
you will make any money.
Right now, business owners
just want peace of mind
that they can continue to generate
customers and income,
regardless of the murky economic
conditions we are about
to encounter.
Over the past six weeks
we’ve worked with literally
hundreds of NZ sole traders
and small business owners and
have noticed there are three
fundamental elements separating
those likely to fold or
barely make it through, with
those almost guaranteed to
prevail and even grow over the
next 12 months.
Firstly though, let’s be clear
– there is no silver bullet or
marketing gimmick to business
success. Instead it comes down
to three fundamental elements.
1. Having a lean and variable
cost model (or as close to
Isis Farrelly
that as you can achieve)
2. A predictable, scalable
system for generating
customers
3. Maximising every customer
transaction
Let’s take a look at
these…
Right now, you can be guaranteed
that the Air New Zealand
CEO is not worrying about
their Facebook followers,
learning about sales funnels or
thinking about rebranding.
Instead he is aggressively
reviewing every cost line (particularly
fixed costs) so they
can withstand heavily reduced
revenue.
A lean and variable cost
model builds resilience and
cashflow agility. It means as
your sales rise, so do your costs
and more importantly, if they
fall your expenses do too – in
equal measure.
Having high fixed costs is
a honey pot for failed business
and as such it is time to really
challenge your existing cost
model. Act early, act aggressively,
act once.
Secondly, if you don’t know
your new vs. repeat customer
split and how you generate
each new customer and what
that costs you then there is
work to do. If you can’t pay a
Visit register.weatherthestorm.org.nz
A lean and variable
cost model builds
resilience and
cashflow agility.”
certain amount of money and
know this will produce a customer
then before you know
it you won’t be able to pay
your bills and will not have a
business.
Finally, if you aren’t maximising
every transaction by
driving your average customer
spend and managing your margins
then you are wasting the
customers you’ve paid to get.
Even equipped with this
knowledge it is crucial you
have a proven system and
Weather the Storm has developed
precisely that – it’s called
Getting Through ️.
A cost-effective, online, interactive
programme that helps
sole traders and small business
owners adapt to a changing
market and gain back the pride
in their business they felt just a
couple of months ago.
The programme was developed
with the input of our 12
expert advisors who cover almost
all professional services
including accounting, finance,
digital marketing, tax law,
commercial law and insurance.
It takes you through a stepby-step
process to develop a
customised, prioritised and action
orientated Game Plan to
really build a business that will
stand the test of time.
A plan that will ensure you
have the three things that separates
those who will still be
in business in 12 months from
those who probably won’t.
Those interested in learning
more about Getting Through️
should visit register.weatherthestorm.org.nz