10 things small businesses must do to recover from impact of coronavirus outbreak

How can small businesses who’ve survived the fallout of the pandemic emerge fitter and stronger? The Victorian Chamber of Commerce and Industry has a plan.

Biggin & Scott Inner North director David Rubinic says there is ‘light at the end of the tunnel’ for his industry. Picture: Tim Carrafa

Victorian Chamber of Commerce and Industry chief executive Paul Guerra doesn’t pull any punches when he reflects on the fate of small businesses in the state.

While he acknowledges the resilience and commitment of small businesses, he is clear that some of them will not survive COVID-19.

“The recent reports confirming that Australia is in a recession is never good news for small business,” Mr Guerra said.

“The money and the economy dry up and often the first to go in that situation are the small businesses. Some businesses have been doing it tough and they will not come out of this.”

Throughout the pandemic, the industry body has been advocating for small business with government and Mr Guerra said support for the community had been valuable.

“But it’s not in the nature of small business owners to rely on grants to get by. They’re in business because they want to control their destiny,” he said.

The Victorian chamber said small businesses should look at a 10-step plan to work out where they go from here.

1. Develop a business plan

“As you come out of the government restrictions, what are you going to do? What direction should your business take? What has worked previously, and what hasn’t? What are your business goals?” Mr Guerra said.

2. Develop a cashflow forecast for the next 12 months

Businesses die because they don’t have cashflow.

3. Develop a customer plan

“Coming out of the pandemic, the customer will be different. Can you reach a different audience and can you leverage new channels to market?”

4. Have an online plan

Do you need to update your website? Do you need to upgrade your e-commerce capability and your online security?

5. Secure your supply chain

“We’ve seen the impact of imports slowing down and if your supply chain isn’t open or functioning effectively, it will be hard for a small business to sell things. Is Australian-made an option?” he asked.

6. Get help if you need it

Talk to a relevant expert if an element of your business isn’t stacking up and if you need some guidance.

“If you’re emotionally drained, talk to your family or GP. The stresses on small business in the past months have been enormous,’’ he said.

7. Join your local business chamber or industry association

Collaboration and support can keep you up to date with small business trends and government information.

8. Keep talking to your finance provider

“Talk to your bank and if you’ve taken on debt through this period, convert to more acceptable terms. Make sure that your bank understands your business plan and cashflow because your finance provider will help you through.”

9. Engage your staff

Share your objectives with them.Let them know what you need from them to achieve the business goals. Develop training goals so staff can upskill and help you do more with the business.

10. Try to stay optimistic

Make it work by keeping a positive attitude.

Biggin & Scott Inner North director David Rubinic says navigating the coronavirus crisis has been a steep learning curve for real estate agents. Picture: Tim Carrafa

HOPE ON THE HORIZON FOR REAL ESTATE AGENCY

In the first weeks of the pandemic, staff at Biggin & Scott’s real estate offices in Brunswick and Northcote fielded countless calls from tenants who had lost their job and were unsure how they would be able to pay rent.

Landlords who still had a loan on an investment, and who perhaps also faced redundancy, were worried about how they would make loan repayments without rental income.

Biggin & Scott Inner North director David Rubinic ramped up communication with staff and customers to clarify how the business would continue day-to-day operations and support clients.

He also kept a close eye on changing government directives and encouraged staff to see

this period as a learning opportunity.

“We made a decision to adapt and overcome. The industry had never encountered a situation like COVID-19 before but we put good systems in place early on,” Mr Rubinic said.

“I met regularly with staff to reassure them that the business wasn’t going anywhere and to encourage them to be proactive in supporting our customers, because our office was inundated with tenants and landlords not knowing what to do.

“There was a lot of uncertainty out there so we set up a system where we could refer tenants to appropriate places that could advise them on financial support, and then we could speak to their landlord to discuss rental arrangements.”

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While the sales side of the business initially suffered, in the past few weeks home buyers have returned. The easing of restrictions around numbers that can attend inspections has helped.

“I can see the light at the end of the tunnel. We’re seeing good numbers at opens and we’re getting some good results,” he said.

“Coming out of this, I think the younger people within the business have learned a lot. They’ve seen that clear and regular communication, looking after customers as best you can, and building honest relationships is vital in any business.”