The biggest question I get asked from people starting business is “What challenges business face?” The last two years have certainly been a different world to what we have been used to and for business owners it has thrown up many challenges on a broad and widespread scale. Natural Disasters and localized events can throw challenges to communities but never have we seen something that is countywide and indeed globally.
So what are the challenges
Covid 19 Pandemic
Without stating the obvious corona virus has swiftly changed the way we live and move and has been the biggest interruption to business in living memory. With massive interruptions due to lockdowns, covid has not only brought a basket of challenges but a new set of rules and regulations for businesses to ensure that they are covid safe in order that they can operate.
Financial challenges
Particularly in states that have experienced lockdowns, this has had a dramatic effect and created not only financial challenges and indeed financial stress to some, that may never recover from this. For example in Victoria which has seen the longest period of lockdown anywhere in the world.
Lets look at restaurants, although they have been able to provide take away service in some instances, it is has meant a dramatic reduction in income. Picture your self having to take a pay cut of 75% or more for 267 days. That equates to a pay cut from January 1 to September 24 in a year and that gives you some indication of what they have had to endure. Or gym owners that have suffered virtually 100% reduction in income for that period.
Supply and logistics
Supply chains and logistics have thrown up new challenges as certain products and services are not able to keep up demand. Some vital ingredients or components are in scarce supply and cause issues for production and manufacturing. For example the manufacturing of cars has been interrupted due tho the scarce supply of components, thus causing long wait periods for new cars, in some cases as long as six months which has in turn had an inflationary effect on the used car market.
Talent and people
With the closure of our borders has had an impact on the supply and indeed the talent of labour force. Business owners from all sectors have been frustrated by the lack of available people to be able to carry out there work and tasks to keep their businesses turning over. Talking to several business owners, if that last period has not been tough enough but now when things are opening up again, their business are hampered in being unable to work at normal capacity.
Societal change
Covid has had the biggest influence on how we do things and has been responsible for a change in habits. For a significant part of the workforce, working from home has been the new norm leaving businesses review their need for office space. Peoples shopping habits have been forced to change with a surge in on line shopping.
SO HOW DO YOU OVERCOME THESE CHALLENGES
Find the right problem to solve
Businesses forever have problems and challenges so pick the the biggest challenge, break it down in to small components and work on those issues first.
Focus on Customers
Covid has probably created the biggest dis engagement with customers that we have seen. Make a conscious effort to reconnect with your customers and put your self at the forefront of their minds . In some ways its all about getting back to basics. Your will have more success on focusing on your customers rather than worrying about what your competitors are doing.
Try open innovation
Think outside the square and explore innovative ideas you may have thought of but never pursued. The world is an ever changing place as we have all experienced in the last year or two so don’t be afraid to be different.
Look for several solutions
We are living in a new dynamic so if one strategy does not work try something else. The more you try the more you will succeed.
Choose the right team.
Although there are challenges with finding the right talent, do not underestimate the damage that the wrong people in your business can do. On the reverse the rightr people can be the key to developing a successful business.
If you also ask “What challenges business face?” and would like to learn more on this topic you can click HERE to watch my free training video.