Four P's of COVID
Chatting with small businesses across Australia I am keen to learn how they have fared during the COVID-19 period to date (noting that this is far from over). Many have temporarily parked their business, some have pivoted, a few have packed their bags (and that is perfectly OK), and the lucky ones are progressing / punching goals. More updates will be added to the top of this post in the coming weeks.
Scroll down to read other updates.
Barton’s Smallgoods
When international borders close down with COVID-19 so do your dreams of export Toni Barton discovered. Her new export business is parked for the moment. On the other hand, she is ‘punching’ goals when it comes to her domestic business.
On the 15 February I caught up with Toni as she was preparing to fly to Dubai later that evening.
‘We’ve sent off two shipments to Dubai since we last spoke,’ Toni confirms, ‘and landed some big accounts in Saudi Arabia, Kuwait, and Qatar’. She explains that ‘tasters’ have been employed to target some high-end customers and they can’t wait to sign up hence Toni’s return trip. ‘Apparently I am the face of the brand and they want to see me.’
Two weeks later she returned with orders secured including with a big Five Star Hotel chain. ‘The sales projections came to $7 million,’ says Toni, ‘more than justifying a continuation of the export business.’
It was full steam ahead but then three days later the borders started closing and suddenly everything was on hold. Sadly, she has had to let the staff go because they were employed on a casual basis until the business got established and did not qualify for Job Keeper. Toni still has many overheads to pay even while not producing. Despite ticking many boxes for financial support, funding is not as easy to access as the business community is led to believe.
‘I’m exhausted,’ Toni admits, but she is far from defeated. ‘I’m an eternal optimist. I’m using this time to develop new products because it makes sense to have a bigger range on a shelf.’
It is also giving her time to firm up her supply chain. ‘I realised how vertically integrated I am.’ With lamb prices skyrocketing over summer she found that abattoirs were decreasing the amount of numbers being processed and limiting her access to additional lamb bellies needed for her products. Toni has been able to establish a partnership with more farmers expanding her supply of mutton. Her strategy is simple. ‘I pay them a better price.’
When I ask about her domestic business, she admits that back at home on the farm, it has been business as usual. ‘Jobs still have to be done.’
While she is far removed from COVID, through the Farmers Markets and her online delivery service, both classified as an essential service, Toni is very much aware of the impact. Protecting her carefully established ecosystem has been a top priority.
‘Supply is critical,’ Toni observes. ‘When its convenient consumers go to the supermarkets, but when there is a threat they go direct to the source.’
‘At the Farmers Market at Flemington, I had to convince customers not to panic buy and reassure them that I would be there the following week,’ she explained. While increasing her sales slightly in response, she is very aware that this also places pressure on her to source more sheep that meet her criteria, as well as her butcher to process the meat.
‘Hats off to the Farmers Market organisers,’ Toni adds. ‘They have become experts in crowd control, social distancing and hygiene. This is above and beyond their position description.’
Looking after regular customers has been another priority. Toni was stunned to discover how many of her customers have compromised immune systems keeping them in self-isolation at home. Her online sales platform has been most useful with customers pre-ordering and paying to reduce the time to wait in long lines at the markets, and also enabling her to make home deliveries.
‘Three days a week I get up at 4.00am to attend Farmers Markets and then I do customer deliveries around the bayside area afterwards, getting home at 7.00pm at night.’
TMC Enviro VIC
Tom Junior is now Managing Director of TMC Enviro, and the business is continuing strongly under his guidance. This savvy rural business continues to adapt and punch goals.
Hot wash units have been introduced by TMC Enviro to assist communities during the pandemic.
‘We’ve pushed through COVID-19 quite well,’ Tom tells me when we touch base in June. ‘We got on to safety early. Every employee has a COVID backpack. Separate accommodation and more transport have been provided to keep everyone safe.’
After a conversation with community leaders TMC Enviro purchased four big hot washing units to sanitise town centres and schools. In May they purchased another Birchip business and operate it under the name of YBS Ag Supplies to keep a valuable service running for the community.
‘Apart from a couple of projects delayed by paperwork held up in client offices during the initial shock we’ve managed to keep all our employees going. We adapted.’
Yes, I guess that is why I already had this business story in the AGILE chapter of my soon to be published book!
READ: Adapting to a new environment published 2016
The Mill VIC
When I caught up with owner Phil McConachy in February 2020, between 12,000 and 15,000 people were visiting The Mill Castlemaine each month. By the end of March, it is a very different story when Coronavirus restrictions come into force. Phil has been forced to ‘park’ some of his plans but at the same time has been able to progress others.
‘The strength of this site is that it’s not focussed on just one thing,’ Phil acknowledges. ‘If we’d been just tourism it would have had a bigger impact.’
While one quarter of the businesses onsite closed their doors, others have still been able to operate in some capacity.
‘The café is still roasting coffee and the brewery is still brewing.’
Phil believes that community support has grown for their local manufacturer and internet business tenants.
‘It will be quite interesting to see what happens in the next twelve months.’
From his own business perspective, Phil is negotiating with a number of tenants about rent relief and has had to push a few of his plans back while progressing others. Communicating with the bank was a priority. With reduced foot traffic on site, it has been a great opportunity to drive forward some ‘not so tourism friendly’ works.
‘The timing has also worked well for our new Cheese Maker tenant,’ he points out. ‘It’s made their build much easier.’
With only four vacant spaces remaining on site, Phil has continued to receive enquiries from prospective tenants during the restrictions, a positive sign for the future.
READ: New Life for Industrial Site published 2016
Retro Respection WA
Continuing to trade on an established online platform they’ve targeted hygiene products, kept their customers engaged though social media, and introduced a new generation (the oldies) to online shopping
One look at the Retro Respection Facebook and Instagram Pages in the New Year and I am immediately laughing at their antics and entertaining posts. No wonder they have such a big following. Joleen is still trying on vintage clothes instead of working and reports that she has achieved her goal of introducing a sustainable range of onyalife products. Unfortunately for my bank balance, they seem to be very astute when it comes to what I like to buy.
When the COVID-19 restrictions were introduced in March, their physical shop front was closed but a strong advantage was their already established online sales platform.
‘Yes, we shut the doors for a month with children at home and the foot traffic quite bare,’ Storm confirms. ‘Online sales and a few phone orders have enabled us to survive. We’ve noticed older people suddenly realising that online shopping isn’t all that bad.’
In response to community needs they increased their hand sanitiser and soap ranges. The I’m stuck at home with you bastards hygienic range particularly caught my eye.
As the more extrovert of these two business partners, Joleen, has made use of the down-time to do Facebook Live chats about gift ideas and introduce their new inhouse range of pet treats and resident expert. Free home deliveries were promoted to locals.
‘We’ve always dropped things off to locals at no charge but just advertised it more the past few weeks,’ explains Storm.
‘It is going to be interesting to see what happens over the next year, but I think we are well positioned to keep doing well. Things are turning back for the better again and we will keep working on consolidating our financial position.’
These two may not have achieved their tongue-in-cheek vision of opening a chain of stores yet, but they have moved to a new store front in the same street to accommodate an increase in stock, and they are definitely still having a lot of fun.
READ the full article first published in 2019
Katherine Outback Experience NT
Reverting to base skills to maintain cash flow and introducing online tutorials
Since I first interviewed Tom and Annabel, The Katherine Outback Experience has been awarded the Best Tourist Attraction in the Northern Territory in 2018 and 2019 and took home bronze at the 2018 National Tourism Awards. Life has been pretty busy for the couple as they have worked tirelessly to ramp up the business despite the arrival of little Harry. Congratulations!
As usual, during the Northern Territory’s wet season, the Katherine Outback Experience was on the road between November and March. While touring the eastern states with special guests, Tom also took the time to drop into primary schools to share Dolly’s Speak Up message, talk to people affected by the bushfires, and walk the red carpet at the Tamworth Country Music Awards.
‘We thought we had all our bases covered,’ Annabel smiles. ‘And then came COVID-19.’
While Tom admits to being grateful to enjoy a break after the road-trip, they also had to quickly reassess their business model.
‘It wasn’t an option to sit back and do nothing,’ Annabel confirms, ‘we have livestock to feed and we promised to keep our employees on.’
‘In a normal year we would be doing up to twelve shows a week, servicing The Ghan as it stops in Katherine, and putting on shows for business events in Darwin and around the region. Then the borders were shut and suddenly there was no tourism,’ says Tom.
Instead he focussed on what skills he had and put them to work.
Being a former horse breaker for the cattle stations, Tom rang up a former boss and immediately received 70 horses to ‘get cracking.’ They also identified a gap in the market with horse riding lessons in Katherine.
‘I work from 4.00am until lunchtime breaking the horses then take one-on-one riding lessons from 1.00pm until 7.00pm’
Tom says that it has been ‘a quick win’ cash flow wise. He is cherishing the time in the round yards handling the horses. ‘I’m developing new methods to try out and assess. It gives me time to think and write new songs.’
Annabel also sees these new activities as an opportunity to grow their team with local employees and accelerate their plans which include online tutorials featuring Tom’s music and horse breaking skills. They now have 60 first time riders that are growing in confidence and helping to forge stronger relationships within their local community.
Music is still a big part of his life. Following on from two Golden Guitars awards in 2018 for his single Never Never Land, Tom released another new album and title of the 2019-20 wet season tour, We’re Still Here, which strongly resonated with his fans. Post COVID-19 the song will have a whole new meaning to a lot of people, and I think we can expect some more music coming our way.