7 principles to help local retail businesses through the Covid recession.

I get it, Australia is in a recession, a Covid recession brought on by the pandemic and responses to it here and overseas. Okay, some say we are out of recession already. Who really knows? To ma ny, the recession is real and present.

Relentlessly, media outlets overload us with recession stories, fuelling worry and anxiety and challenging consumer confidence.

It’s tempting to get drawn to the doom and gloom stories, to amplify the woe is me narrative.

Plenty of people in business, especially small business, prefer to look ahead, to focus on the other side of the recession as it is that view of what could be that motivates.

I think a back to basics approach is what is needed to get us through the recession. I think it’s right for our business, the retail shops I own and for the many local businesses I serve.

The back to basics guiding principles I share here are focussed on this, focussed on providing sure footing today and encouraging optimism for tomorrow.

This is not a list from which you choose what you like. My advice is that you do everything on this list, because together they provide the best chance of navigating the recession well.

1. Nurture what makes the business moneyand fix or stop what does not make the business money. Leverage strengths. Fix or eliminate weaknesses.
2. Embrace ways tobroaden the reach of the business.
3. Makesafe decisions, decisions you know will work. For example, buy well. That is, buy what will sell easily, quickly.
4. Embrace ways you canadd value to what you sell without spending more.
5. Be frugal. Before every spending decision ask 2 questions: do we need this? Will this add value? Review every business expense. Cut those that do not add value.
6. Your next step is in front of you. Look ahead, not behind. Talk up, not down.
7. If you feel overwhelmed, take it one step at a time. Every day, do something that makes you happy.

When should you start? Now. But not alone. This is a whole of business project. Involve the whole team and embrace the 10 points at every opportunity.

How do I know these principles work? I’ve traded through two recessions, one country wide and the other sector wide. I’ve also traded through Covid with excellent results – because businesses I am connected with embraced these principles back in early March 2020.

Let’s take a moment to unpack principle #3, make safe decisions. Safe decisions are those you can bet on because they work every time. They may not be exciting, but they are safe. They may not be the best margin, but they are safe. Safe decisions are all about certainty, providing a small step that is stable. Put a few of those in a row and you feel better. Feeling better is key to helping you navigate the Covid recession.

While I understand the value of news, there may be value in consuming less news, staying away from the negative stories. Your success is the most important news right now.