Is your business ready for the future?

The COVID-19 crisis has changed the world dramatically. It was only three months ago that Australia recorded its first case, and a little over a month ago that the Government closed the borders and social distancing became a thing.

Compared to many other countries Australia is doing well. We have had few deaths and unemployment is only a little over 5%. However, it is hard to see our lives returning to what they were. For a lot business owners we will need to change the way we work. However, if you approach this the right way it can lead to a more profitable and more sustainable business.

With this in mind, this article is about some of the things I think will change in the post COVID world and potential business opportunities.

Hopefully in a few months the children have returned to school and everyone can return to work. However, it is not unrealistic to think some people will continue working from home. Even if it is only for two or three days a week. Likewise, it is likely people will get used to doing more things online than they used to.

Some of the business opportunities could be:

• IT support staff to help the people working remotely or website developers helping businesses that previously didn’t have an online presence.
• Builders and carpenters to remodel houses to make home office spaces more comfortable.
• Dedicated business hubs in small regional towns that make it easy for people to work remotely.
• House staging and video making to help real estate agents move more of their viewings online.

From an investment perspective, there may be also more demand for housing in attractive regional centres, especially those in a commutable distance to the major cities. A three hour commute is not that appealing, but it could be OK if it was only for one or two days a week. Especially if it lets you go from a mortgage of $1 million to being debt free.

People that lived through the great depression were generally frugal. It became an ingrained trait, and something that may happen if the economic crisis is as bad as many are predicting. It is feasible that as a population we change the way we entertain ourselves and reduce the amount we spend on luxuries. For example, we might cut down how much we go to restaurants; stop buying clothes that we don’t really need; or cancel the gym membership.

Some of the business opportunities could be:

• Catering businesses that help people entertain at home instead of going out.
• Personal fitness trainers that deliver their classes online for far cheaper than what they could do face to face.
• Luxury holidays and memorable experiences in Australia may be in more demand if people decide to travel overseas less.

All business owners should see the current crisis as an opportunity. If you have to change the way you work, you should do it. Just don’t wait until things return to normal, as we don’t really know what normal will be.

I for one have changed the way that I work so that nearly 100% of what I do is online. It took work, but the upside is that I will be able to more easily service clients in places like Sydney, Melbourne and Perth.

Another example of a local business in Bungendore is Bella’s Feast. They went from a catering company to one that provides fresh meal kits. This opens up a whole new business for them which potentially could be better than the old one.

If you are looking to change your business and would like to discuss it, contact me on 0417034252 or email me at office@constructwealth.com.au.

General Advice Warning
This advice may not be suitable to you because it contains general information and does not consider your personal circumstances. Phil Harvey is an Independent Financial Adviser licensed by IFA-Australia (AFSL 464629)