Daily BulletinHoliday Centre

Business News

  • Written by Dorry Kordahi


There’s a global downturn and Australian bricks and mortar retail is in a slump. 2020 is going to be a rough year. Everyone knows that, but a lot don’t know what to do about it.

Australia still has a good underlying economy, but its marketplace is unique and very tough. It doesn’t have the huge populations of China, the US and Europe with their massive economies of scale, but it’s still forced to compete with them because it has no choice.

Its marketplaces are very crowded and very competitive, which makes surviving in a downturn even tougher for small companies.

But they can thrive in tough times as long as they prepare themselves properly. Of course, it can be hard for them as most don’t have the budget or time for research and hiring specialists. All too often the owners have to make decisions under pressure or don’t know how to plan properly. That might work when times are good, but not when they’re bad.

Good planning is as important as cashflow.

Planning is just a matter of keeping a cool head and understanding the problems being faced, then creating the right environment where a company can not only survive but thrive.

Bad times call for thinking outside the square. But before that, companies must make sure their core functions are properly controlled and efficiently run. Just because a company produces a good product doesn’t necessarily mean that its accounts department or buying functions are working as well as they should be. If they aren’t, a lot of costs can get out of control without being noticed until it’s too late.

Every company needs the ability to stand out from its competitors. But it’s even more important for small companies operating in a crowded market during a downturn.

Customer Service cannot be ignored

One completely free way of standing out in a crowded market is something I strongly believe in, and have always focussed on as a core business belief, is the delivery of a very high level of Customer Service. This is something every top online casino will know if they are to survive in a tight niche. Too many small companies offer really good products or services but are very bad at Customer Service.

Today’s customers can access a range of services with the swipe of thumb on a phone. They demand hassle free service and if they don’t get it from one outlet, they switch to another. Blind brand loyalty is a thing of the past! Companies need to work very hard to maintain their customers and capitalise on the benefits of repeat business.

For the smart companies, ramping up their Customer Service during downturns can really pay off.

So, something that costs absolutely nothing can be a company’s most valuable asset. It’s what creates great online reviews and word of mouth referrals, both of which are essential in business today.

Upsell leads to diversification

Next there’s the upsell, it’s the classic ‘do you want fries with that’. Companies just have to identify what the ‘fries’ are. For a restaurant it could be offering takeaway, for a locksmith it could be offering extra keys at a package cost when fitting a new lock.

Upsell is the first stage of diversification and strengthens a company’s point of difference. And by utilising its existing infrastructure like sales and accounts, it can add new products or services and create extra income without putting up its fixed overheads.

To use the locksmith example again a simple diversification would be to move into fitting security devices like entry cameras and phone activated garage door openers or voice activated biometric locks.

Diversification also gives benefits in other ways. Buying more product from a supplier or manufacturer allows companies to negotiate better prices and settlement terms. Deliveries, especially offshore ones, can be consolidated saving on shipping and clearing.

The final benefit of surviving during a downturn is that a lot of the competition won’t. When that happens, it’s the survivors that thrive.

Dorry Kordahi

Business Leader and Entrepreneur

INTERWEBS DIGITAL AGENCY

CrowdStrike Services Cyber Front Lines Report

New CrowdStrike Report Finds an Increase in Cyber Adversaries Turning to Business Disruption as Main Attack Objective CrowdStrike Services Cyber Front Lines Report offers observations gained from t...

Media Release - avatar Media Release

Which web design software is best for beginners

There are dozens of site-builders and software devoted to the art of creating a website. Some of these, like the one offered by Adobe, are more technically oriented and in many cases require a backg...

News Company - avatar News Company

GUZMAN Y GOMEZ TO OPEN ITS DOORS TO FIRST U.S. LOCATION IN NAPERVILLE

Guzman y Gomez (GYG), Australia’s favourite Mexican, is set to launch its first flagship restaurant in North America this month, opening its doors in the Chicago suburb of Naperville on January 16. ...

Media Release - avatar Media Release

All you need to know about SEO

To date, many enterprises in the country have already been able to appreciate the advantages of Internet site promotion. First of all, this is possible due to the relative cheapness of such promotio...

News Company - avatar News Company

Ways to improve the climate inside your office

Our work environment impacts our productivity and efficiency exponentially. Many researchers have provided factual data to support this claim. People who work in a clean, cozy environment show a h...

News Company - avatar News Company

5 REASONS WHY YOU NEED A SHIPPING CONTAINER FOR YOUR NEXT MOVE

Ask those who have moved before, and you may get a glimpse into how physically and mentally exhausting a process it can be. There are payments to be made, packing to take care of, making arrangement...

News Company - avatar News Company


The Conversation

Politics

Scott Morrison Press Conference - Australian Parliament House

Good afternoon. While we are facing more benign weather conditions in the short term, this morning, I received briefings from the Bureau of Meteorology, which set out that over the medium term out...

Scott Morrison - avatar Scott Morrison

Bushfire emergency support for primary producers

Farm, fish and forestry businesses in fire-affected regions will get the help they need to rebuild with an initial $100 million in emergency bushfire funding, which will be made available following ag...

Scott Morrison - avatar Scott Morrison

Immediate financial support for bushfire affected communities

The Morrison Government will provide an initial and immediate base payment of $1 million to 42 of the most severely bushfire impacted councils in New South Wales, Victoria, South Australia and Que...

Scott Morrison - avatar Scott Morrison

Travel

The Family Travel Handbook from Lonely Planet

Everything you need to know to take unforgettable trips with your children   Full of practical advice, ideas and inspiration for every type of family, Lonely Planet's The Family Travel Handbook ...

Adam Bennett - avatar Adam Bennett

3 Ideas for a Family-Friendly Holiday to Bali

A family holiday is always an exciting time, but it can often come with its fair share of challenges, especially when trying to keep every member of the family happy. Thankfully, the beautiful islan...

News Company - avatar News Company

The Best Things to Do in Adelaide Hills

Adelaide Hills has long been a relaxing escape for the people of Adelaide and beyond. Its proximity to the capital makes it an accessible destination that feels like you’re miles away from the hustl...

News Company - avatar News Company

ShowPo