The “new normal” is unfolding. How will you adapt and evolve to the changing environment? Small business needs to rethink their business model to survive after COVID-19.
The Australian economy has enjoyed a pretty cruisy run over the past few decades despite the ‘woe is me” attitudes of the banks during the GFC.
Business needs to rethink how their business model is structured to account for how the next few years will unfold. The new normal has not really evolved yet. One thing is for sure, how the economy will operate a year from now will be very different from how it was a year ago.
It is likely that many small business models won’t be suited to be able to make the most of the new normal. Businesses will need to restructure and refocus if they want to thrive in our new order.
Key attributes of our future will be:
- Perpetual low interest rates
- Significantly higher unemployment with structural changes in employment
- International trade will be different. Still unfolding as the major economic powers start to play games with smaller countries like us
- International travel most likely off the cards for many months and limiting what would be the norm for many companies
- The international relationships that have broken down due to COVID-19 may also change the focus of our consumers and clients. This will see them focus more locally for reliability and consistency. It may also be that there is less competition in some industries and heightened competition in others
- Regardless of the changes ahead, there will certainly be changes, and every business, no matter what size, needs to rethink their business model to survive, at worst, or thrive at best
Businesses need to consider how they will get back from the suffering of Coronavirus and find their way to the “new normal”. They need to rethink and adapt their business models as they return to full speed. Those who step up their game will be better off and more likely to thrive.