7 Biggest Challenges For Your Small Business in 2020
Every year brings new responsibilities and challenges for a business. Entrepreneurs have to gear up for the testing times and prepare their capabilities for advancements in technology and changes in the economy. Since 2020 marks the beginning of the new decade, business owners have been progressing to leap into the next phase with a bang. However, the advent of the New Year did not start on a good note as Australia was struggling with disastrous bushfires rampaging through NSW and some parts of Victoria.
An additional burden came in the form of the COVID-19 pandemic, which has shaken the entire world with its ravaging impact. The virus has adversely affected small businesses as non-essential services have been curtailed, and people are maintaining social distancing. Consequently, budding entrepreneurs who had purchased a business for sale in Australia are feeling apprehensive and fretful.
However, the good thing is that our country has been able to keep the lethal disease under control through restrictions. Thus 2020 is proving to be a testing year for small and medium-sized enterprises, and here is how they must tackle the biggest hurdles that can affect them.
1. Health And Hygiene
If you are among those services which do not have the luxury to operate from home, then you will have to be extremely cautious when the lockdown is lifted. You will have to sanitise the whole office and maintain social distancing at all times. The workstations must be placed at least 1.5 metres apart, and there should be no handshakes and congregations at the coffee dispenser. Employees will have to wear masks and wash their hands when they enter the premises.
The health of the workforce should be your priority as a single case can lead to community spread and put your business in jeopardy. So make sure that you are ready to fight with the disease-causing virus as soon as you get your full staff back in the office.
2. Natural Disasters
Australia has been dealing with various natural calamities, including floods and droughts over the years, and the recent bushfires have made it necessary for businesses to prepare for emergencies. You must create an emergency management plan and have a strategy for the safety of your workers and assets. Also, you must assess the impact of the disaster on your business and how you can re-establish your entity and help your staff members.
You must be ready to make an insurance claim when needed and get funds from creditors and leverage government relief to get back on track. In such cases, the ATO also supports businesses by deferring outstanding taxes. You must make sure you are aware of all these resources to utilise them when required.
3. Including Remote Working In Routine
While many business owners want to see their employees working from the office, the recent conditions have led to an increase in the remote workforce. It is being considered as the new way of operating a business, and the digital world is all set to welcome ventures that are managing the entire work online. There are various advantages of having a remote workforce, but you need to have the required tools and techniques in place for the same.
All the employees must be trained to handle the software being used for project management, online meetings, data management, live chatting, etc. All these platforms should be made available to the employees, and they must have an understanding of operating them without any help.
4. Protection From Cyber Threats
Now that most businesses are going the digital way, it is extremely important to stay safe from the cyber attacks. The data breach has been on the rise, and businesses are vulnerable to these threats. It can have a devastating effect on small business and can even lead to their downfall. Thus entrepreneurs must pay special attention to securing all the confidential data of vendors and clients by hiring a security consultant.
All the systems being used for work must be installed with robust firewalls and anti-malware systems, and these must be updated frequently. You must devise a cyber security strategy and communicate it to all the employees so that it is implemented without any obstructions.
5. Low Cash Flow
The global economic downturn and the losses incurred by small businesses due to the lockdown and government restrictions on the movement of people and goods have led to a shortfall of capital. Many small businesses are struggling to stay afloat in the crisis. The Federal Government has extended a helping hand to all such entities by offering business stimulus packages worth 17.6 billion and $66 billion to revive the economy and save the jobs of thousands of employees in the country.
Entrepreneurs can leverage these funds to mitigate risk and bring their businesses out of the negative cash flow zone.
6. Technological Advancements
Technology has been progressing at breakneck speed, and the companies which are not adapting themselves to the changing environment are becoming obsolete. There are plenty of examples in the industry where market leaders refused to adopt new technology and failed miserably later. Nokia is a case in point wherein the mobile phone company refused to jump the bandwagon of Smartphones and became non-existent. Thus businesses must keep track of the latest developments in their field and consult experts to make the right investment at the right time.
7. Finding New Customers
Growing a business and expanding its reach is the long-term objective of every business but is also a challenge. The easiest way to find new customers is through referrals and networking. Find your old customers and connect with them. Improve your digital presence to showcase that you are innovating and moving ahead with the changing times.
Partner with other businesses in the local area to acquire their market share and gain prominence. Ask your patrons to post positive ratings and reviews online, and create a reputable position in the market. All these activities do not require a lot of money. You can use social media to penetrate deeper into the target markets and improve your sales.
Planning for the future is a vital task when you intend to become an entrepreneur. You have to create a roadmap to deal with all the challenges that will come your way if you purchase a business for sale in Australia. Thus keep the obstacles and their solutions mentioned above in mind while making a mark in the industry.