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Despite everything else that is going on, Spring is here, bringing with it a special new arrival at the Kruger family’s Stillwater lifestyle block. The family got their first sheep for Ag Day at Dairy Flat School in 2018, and this year their Dorper x Wiltshire ewe, and black ram Steve, produced twin lambs –one black, and one white. Although when the ram is dark and the ewe white there is a 50/50 genetic chance of this, it doesn’t seem to happen very often. The lambs are thriving under the care of Francine and her 12-year-old son Daniel, who owns the sheep. Hibiscus Matters readers can choose names for the twin lambs.
The recent second lockdown, and the likelihood of more to come, shows that there is no longer ‘business as usual’, or any type of ‘normal’ as the community knows it.
In the face of these uncertainties, your community newspaper spoke with a number of experts who provided advice on how to adapt and be resilient in the changing times we all face.
This area’s town centres are largely comprised of small to medium sized businesses, and so advice for owners of such businesses – local hairdressers, retailers, car services, hospitality and takeaway outlets, entertainment facilities, tradies, gymnasiums, and many others – and their teams – is desperately needed.
The latest retail sales figures from Statistics NZ are for the June quarter, which included the Level 4 lockdown. They show an unprecedented fall, with the drop in sales of food and beverage services down 40 percent, accommodation down 44 percent, and fuel 35 percent down. This was only partly offset by strong supermarket and grocery sales (up 12 percent). On the Coast, the first lockdown was blamed for the closure of at least seven businesses and the Level 3 lockdown was a further setback with two more stores recently closing in Ōrewa.
Dr Tracy Hatton is joint managing director of Resilient Organisations, a Christchurch-based company that provides research and consulting on resilience. Her organisation worked with Auckland Council to provide workshops for small businesses during the last lockdown.
“Covid-19 is a disaster, just like the Christchurch earthquakes, but this is shared pain and will be over a long period of time,” Dr Hatton says. “We must face it, head on. We found during the workshops that quite a few business owners had their heads in the sand. One retailer made $13 on a lockdown day. If it’s costing you to be open, then hard decisions need to be made.”
“Sit down, open the books and do the cashflow. Try and take a big picture view. These are tough times and no one knows what demand will be like. Everyone wants to keep going, but sometimes the most resilient decision may be to shut up shop, preserve your capital and make that conscious decision while there is still money in the bank. Sometimes if you keep fighting, you will only get into more debt and perhaps take other companies down with you. In six weeks, or six months when we are back in summer and might be in Level 1, it can be reassessed.”
Providing high quality service has never been more important, she says. “The core basics of business are key when you are fighting – great service and treating your customers well makes a big difference when people are spending less. Bake a batch of mini muffins and give them as a ‘thank you’ with every coffee. People will remember that. Band together with other businesses and you may be able to afford to publicise what you offer as a street.”
Dr Hatton says communicating – with your team, other businesses and customers – is key when times are hard.
“Be open, transparent and honest with everyone – your bank, landlord, staff and customers. If you are struggling to keep all your staff, have that conversation with them. They might have some ideas. Doing this also shares the load on business owners’ shoulders. Their mental wellbeing is a real concern.”
The need to combine forces is a sentiment echoed by Bridget Vercoe, principal business resilience advisor for Auckland Council emergency management.
“One of the most important things is to talk to others and work together. You may be able to share equipment, staff or delivery services,” she says. “To survive in this rapidly changing business environment, it is important to share experiences and creatively problem solve with others. Now is also the time to dust off your business continuity plans.”
These plans identify how an organisation can keep its essential functions up and running in times of disruption, and gives them a better chance of recovering quickly. It includes understanding the key tasks of employees, knowing who your key customers or clients are and having other options of getting your product or service to them.
“These are things we don’t necessarily think about until an emergency occurs, such as the Christchurch earthquakes or a pandemic, and then they become vital,” she says.
Info and resources: resorgs.org.nz and aucklandemergencymanagement.org.nz
