There’s less than two months until the ‘Right to Disconnect’ comes into force. The policy, which legally allows employees to avoid work-related communications outside their regular working hours, is already raising questions amongst small business owners about how this will impact their operations and team dynamics.

With the Closing Loopholes No.2 Act scheduled to take effect on 26 August 2024, Australian businesses will be rushing to make preparations over the next two months. Fortunately for SMEs with less than 15 employees, the clause will only come into effect next year in August 2025. Regardless, early preparation will help to prevent unnecessary compliance issues further down the line.

What is the Right to Disconnect?

The right to disconnect allows employees to legally ignore work emails, messages, and calls outside their contracted working hours (asides from exceptional circumstances or emergencies). The aim of this is to ensure employees are able to enjoy their personal time without feeling pressured to respond to work-related communications.

More broadly, this policy is in line with growing concerns about work-life balance and employee burnout, signifying a shift towards practices that prioritise employee welfare. But while the underlying intentions are good, SME leaders may worry that it could negatively affect business operations and financial outcomes.

SMEs face unique challenges

With SMEs characteristically operating with a lean team and tight budget, adhering to industrial relations (IR) reforms can pose a complex challenge. The structured boundaries set by the right to disconnect seem to conflict with the agility and constant engagement that is common in smaller businesses. Practices that are often vital to the innovation and growth of SMEs, like spontaneous collaboration and flexibility, will potentially be disrupted.

On a positive note, SMEs in Europe have dealt with similar reforms and many have adapted successfully. For example, businesses based in France have noted better employee well-being and job satisfaction, resulting in higher productivity. Australian SMEs can look to these examples to find effective strategies to maintain their innovative edge while complying with regulatory requirements.

Plan now, execute later

The question that remains is, what are the steps that SMEs can take now to prevent future compliance challenges? Here are key pillars for SMEs to base their strategies around in order to get a head start:

● Communication: It’s crucial not just to set, but to convey clear definitions and policies when it comes to work-related communications outside of working hours. Ensuring that employees grasp these policies will help manage expectations, and align employees’ work duties with the need for work-life balance.

● Trust: Aim to foster an environment based on trust where both employers and staff respect and understand the new boundaries. Allowing for some flexibility for employees in their schedule can be key to maintaining productivity while being compliant.

● Technology: Technology is key to facilitating asynchronous communications with your team. Tools that accommodate differences in time zones without requiring a constant online presence can help keep productivity levels high without breaching the right to disconnect.

● Work-life balance: Ensuring employees have a healthy work-life balance will not only help avoid a compliance issue, but can increase motivation and reduce burnout. A workplace culture that is supportive can lead to higher job satisfaction, and ultimately result in higher productivity levels.

● Education: Implement training sessions to educate both employees and management on new policies and their effect on the workplace. Collaborative sessions help ensure everyone has a mutual understanding of the expectations and practices.

● External guidance: Reach out to external consultants with financial, legal, and HR expertise. Their insights can provide invaluable guidance, helping to identify and propose strategies to mitigate non-compliance risks.

The right to disconnect won’t come without its challenges; yet it presents a great opportunity for SMEs to revisit their work culture and practices. Being proactive and implementing these strategies early will help SMEs prepare for new policies, and create a healthier work environment.

European businesses that have effectively implemented similar laws serve as a valuable example for Australian SMEs seeking strategies to adapt and flourish under new policies. They have shown us that a drop in productivity does not have to be the outcome. Instead, the right to disconnect can help create a more engaged workforce who are committed to the future prosperity of the business.

Contributed by Matt Loop, VP and Head of Asia, Rippling

For far too long, SMBs have grappled with the detrimental effects of late payments, which can disrupt cash flow, hinder growth, and even force some businesses to shut down. The passing of the Payment Times Reporting Amendment Bill acknowledges the significant positive impact prompt payments have on the sustainability and success of SMBs.

The reform measures aim to enforce stricter regulations and penalties for big businesses that consistently fail to meet payment deadlines. By holding companies accountable for their payment obligations, the reform will ensure that SMBs are not at a disadvantage when it comes to receiving timely payments for their products and services. Here are some of the key benefits this reform represents.

Supporting SMBs and Strengthening the Economy:

Our recent Pursuing Payments Report shed light on the gravity of the problem, revealing that nearly one in five Australian small business owners estimate losing between $6,000 and $30,000 annually due to late payments. This data underscores the urgent need to improve payment times, not only for the survival and growth of local businesses but also for the overall health of the economy. The passing of this legislation marks a significant step in the right direction, as it will allow businesses to get paid faster, resulting in improved cash flow. With better financial stability, SMBs can invest in growth, hire more employees, and contribute to economic prosperity.

Closing the Gender Gap:

It is crucial to recognise that late payments affect every business, but they disproportionately impact women, creating an uneven playing field. Our data indicates that a staggering 29% of women feel uncomfortable asking customers for payment, and this number rises to almost half (46%) when it comes to chasing late payments. In comparison, only 26% and 40% of men share these sentiments, respectively. This disparity highlights the urgent need for reform to address gender-based challenges in the payment process. 

Promoting Transparency and Informed Choices:

One of the key benefits of the payment times reform is the promotion of transparency in business practices. Recognising and highlighting businesses that prioritise prompt payments to small businesses not only instils confidence in SMBs regarding their partnerships but also allows consumers to make informed choices. When consumers are aware of which businesses treat their suppliers well, they can actively support those businesses that adhere to fair payment practices. This empowers consumers and creates a positive cycle of trust and support within the business community.

The approval of the payment times reform legislation marks a significant achievement that deserves recognition from all parties involved. Businesses need to understand that prompt payment is not just a matter of financial responsibility, but also an imperative to keeping the Australian economy in good shape.

Contributed By Luke Fossett, General Manager, GoCardless Australia and New Zealand 

The latest research from leading HR and Payroll solutions provider ADP reveals Australian workers feel underpaid, as the country experiences a widespread cost of living crisis.  

Alarmingly, over four in ten Australian respondents (42%) feel underpaid in their current job, with close to half of all respondents (47%) reporting working close to six hours or more of unpaid work each week.  

For respondents who have not received a pay rise in the last 12 months, eight in ten say they would be happy with other forms of compensation, including: 

• One-off bonus (e.g. Holiday/merit bonus): 32%
• One-off payment to help with cost of living: 31%
• Additional days of annual leave/paid time off: 30%
• Grocery/shopping vouchers: 30%
• Shorter work weeks: 25%

Kylie Baullo, Managing Director ANZ at ADP, comments: “Right now, businesses are under more pressure than ever to balance workers’ expectations with their own challenges around rising costs.” 

“We know many employers are already actively working to offer employees more incentives and ensure their workers are appropriately compensated for their time. For employers who aren’t currently in a financial position to offer a pay rise this time around, it’s reassuring to see that workers are open to additional benefits such as increased flexibility, like additional leave time, and bonuses.”

According to the findings, male workers surveyed say they’re more likely to work six hours or more of unpaid work each week (51%), compared to less than half of female workers (44%). However, more female workers feel underpaid in their current role (46%) than male workers (37%). 

Interestingly, the report also reveals that nearly one in four (21%) workers would consider doing unpaid hours to help secure their job. 

“The rising cost of living, plus ongoing societal conversations around the gender pay gap continues to be on the minds of many employers who are actively trying to get it right,” says Baullo.

“No one should be paid differently if they’re doing the same job to the same standard, on the basis of gender alone. That’s why while some workers are open to taking on unpaid workload to secure or maintain a job, employers must continue ensuring that their employees’ time and contributions, regardless of gender or background, are valued appropriately.”

“Fair recognition and fair pay go hand in hand with job satisfaction, so it is key that businesses prioritise workers’ expectations to increase team morale,” adds Baullo.

New research from Shopify reveals 99% of retailers plan to invest in customer experience in the next 12 months, investing 11% of total annual revenue on average. This comes as the majority (79%) of Australians are cutting down on something to save money, and over half (54%) are seeking the best value in the current economic climate — from lower prices to higher quality products or experiences. 

The latest release of Shopify’s Australian Retail Report, conducted in partnership with industry research firm YouGov, unpacks how retailers can invest for lasting success in today’s economy. The study includes quantitative findings from more than 1,000 Australian consumers and more than 200 senior business decision makers in retail businesses with 50 or more employees, as well as qualitative commentary from leading Australian merchants and partners.

“In the last 12 months, we have seen marked changes in consumer shopping behaviours, which are driving a shift for retailers,” said Shaun Broughton, Managing Director, Asia Pacific and Japan, Shopify. “From increased demand for value to a stronger preference for in-store shopping experiences, retailers have a renewed focus on efficiency and innovation. Although cost continues to be a key factor for consumers switching brands, it’s no surprise that retailers are choosing to compete on enhanced customer experience instead of slashing prices.”

When it comes to consumers’ shopping priorities, over half (54%) of Australians are looking for the best value, up 10% from last year. When asked about switching brands, 92% of consumers have bought items from a different brand than they normally do, predominantly driven by cost, with 57% switching for a better price or discount promotion, up from 49% in 2023.

But that doesn’t mean value and price are the only things consumers are shopping for. A third (34%) of shoppers are looking for quality that lasts, while 23% still treat themselves every month or so, even if money is tight. This suggests there is still space in the budget for life’s little luxuries, opening up opportunities for savvy retailers.

“The new challenges retailers are facing also bring about new opportunities — one of the reasons I love the retail industry, as there’s never a dull moment,” said Paul Zahra, CEO Australian Retailers Association. “Given the current market pressures, Aussie retailers should double down on what they are best at: delivering exceptional customer experiences, providing customers with high-value products, and staying attuned to local customer preferences.”

Further highlights and insights from the Shopify Australian Retail Report:

Cost of living concerns spark a hunt for value

• Australians are pessimistic about the economy and their personal situation, with a third (32%) falling into this category, compared to 25% in 2023. Just over a quarter (26%) of consumers claim to be optimistic about the economy and their personal situation in 2024, a drop from 37% last year.
• But that doesn’t mean value and price are the only things consumers are shopping for. A third (34%) of shoppers are looking for quality that lasts, while 23% still treat themselves every month or so, even if money is tight.
• Retailers are focused on marketing, with 62% of retail business leaders surveyed indicating that their organisations are taking marketing-related measures, including a quarter (26%) engaging in more targeted customer marketing, and almost as many (25%) are increasing their customer service. 

Unify experiences across channels or get left behind

• Over two-fifths (43%) of consumers prefer shopping in-store in 2024, up from 38% last year, and proportionately more than those who like shopping online (31%).
• A quarter (26%) of consumers like both in-store and online shopping equally, creating a compelling imperative for retailers to focus on both online and offline channels to suit shopper needs.
• Just 1% of those surveyed are not planning to invest in customer experience in 2024, and those that are plan to invest an estimated 11% of their total annual revenue, on average, while 61% plan to increase investment in customer personalisation in the next 12 months.
• Half (49%) of retailers surveyed plan to increase their omnichannel experience investment in the next year, and 57% in their in-store experience, further highlighting the returning role of physical stores in the retail mix. 

Securing customer loyalty without competing on price

• Over nine in ten (92%) consumers would become loyal to a brand if it offered them something, most notably consistently low prices (59%). The same proportion (92%) have also switched brands, often for a better price (57%).
• Beyond price, the offer of high-quality goods would keep half (51%) of consumers loyal, while 45% of consumers cite loyalty points or rewards as an effective way to foster loyalty. Moreover, a third (32%) of shoppers would be more loyal if offered a seamless user experience.
• Over six in ten (63%) retailers surveyed plan to increase investment in their product ranges in the next 12 months. Meanwhile, 62% of retailers are increasing investment in new revenue streams, and 59% plan to increase investment in expanding into new international markets. 

Harnessing data for operational efficiency

• Three in ten (29%) retailers surveyed are facing challenges related to poor staff retention and high staff turnover — the top single internal challenge faced by retailers in 2024. 
• Efficiency issues (e.g. lack of operational efficiency, inefficient supply chain practices, complex business systems, and manual processes) are a major contributor to retailers’ internal challenges, impacting three in five (61%) retailers.
• When it comes to the top external challenges, higher supply chain costs (49%) were rated as the single most cited external issue, followed closely by operational costs (42%), higher cost of goods (40%) and higher cost of wages (38%). Unsurprisingly, inflation-related challenges were cited by 88% of Australian retailers.
• The number one area in which retailers plan to boost spending to drive growth over the coming year is investment in employee attraction and retention programs to drive growth (65%)
• And a big part of staff retention is in enabling staff to do more with less, as reflected by the nearly two-thirds (65%) of retailers planning to increase their technology investment in business intelligence over the next year, while 64% expect to boost their investment in automation.

Reshaping retail with more business intelligence, automation, and AI

• Nine in ten (91%) retailers surveyed believe that the role of the chief technology officer (CTO) contributes to the evolution of the business and/or revenue growth.
• Nearly all (99%) retailers plan to invest in innovation in the coming 12 months, allocating an average of 18% of their total annual revenue to it.
• With this focus on innovation, the total cost of ownership (TCO) for digital infrastructure is a prominent consideration for retailers. In fact, the number one consideration when looking at potential technology investments is operational, platform servicing, and support costs, cited by 43% of business respondents as being among their top five such considerations.
• When determining the ROI for commerce infrastructure, the most important metrics among retailers are profit margin, cited by 34% of retailers, revenue per customer (30%), and total online revenue (30%).

Click here to view the full report

When it comes to warranties for business and enterprise-grade IT kit in Australia, the prevailing attitude seems to be: don’t worry about it.  

And why would you? Most networking gear is solid state and will last a lifetime. So why don’t more brands offer a lifetime warranty? TP-Link’s Omada Pro answers that question very simply: by offering a Limited Lifetime Warranty (LLW). 

This warranty applies to Omada Pro controllers, access points, routers, and switches. A quick refresher on warranty law: A lifetime warranty covers a product for the lifetime of that product, which is generally the time that product stays in production, and some years after that date. In TP-Link’s case, that means the whole period the Omada Pro device is in production, plus five years after it is discontinued. 

The “limited” aspect of the warranty means the warranty only applies to the hardware’s case and internal parts. External accessories like power supplies, modules, and other accessories, are covered under their own warranties. These are usually TP-Link’s three-year limited warranty, but naturally you should check the small print before making any purchase decision for your business.  

Troubleshooting and returns 

A limited lifetime warranty is great on paper, but it’s also only as good as the return merchandise authorisation (RMA) support behind it. TP-Link offers a toll-free hotline on 1300 875 465 where they’ll help businesses first troubleshoot a problematic device, to get a case number they can take to their reseller. And if the reseller won’t accept the return or there’s a problem, TP-Link can also process the warranty claim directly. 

As with the company’s other warranties, if an Omada Pro device is found to be defective and is covered by the LLW, customers can choose whether to get the device repaired, or simply replaced. 

Naturally there are some conditions that disqualify devices, but it’s nothing especially surprising: Don’t kick it down the stairs (unusual wear and tear), don’t try to service it yourself, don’t “jailbreak” it or use open-source software instead of what comes pre-loaded, and so on. One to watch out for is damage caused by transportation – so make sure your Omada Pro device isn’t damaged out of the box when you get it. 

Backing themselves for life 

A Limited Lifetime Warranty is also about peace of mind. After all, TP-Link isn’t offering such an extended warranty because it expects a lot of Omada Pro devices to fail – the exact opposite in fact.  

What a Limited Lifetime Warranty says is that TP-Link expects Omada Pro to be so reliable, you won’t ever have to get it repaired or replaced, and that it will just keep plugging along until you choose to upgrade your network (hopefully with the next generation of Omada Pro devices, right?).  

There’s something especially frustrating about networking gear that doesn’t work properly or having your network “go down” as a small business. Troubleshooting a router or trying to work out why an access point has a green light but no internet – it’s not just costing your business money in lost productivity; it feels like a waste of time. These things should just work! 

TP-Link is essentially making the claim that Omada Pro devices WILL just work, for years on end. And that has to look like a good deal, for any Aussie or NZ business. 

Read more TP-Link articles on Small Business Answers. 

Xero, the global small business platform, has released a Xero Small Business Insights (XSBI) special report, uncovering notable disparities in small business labour productivity across key Australian industries and regions.

The report, Small business productivity: Industry and regional trends, serves as a follow-up to the first XSBI productivity report released in April 2024, which highlighted a nationwide decline in small business productivity throughout 2023.

Small business labour productivity key findings include:

● The most productive Australian industry in 2023 was wholesale trade (A$214.20/hour), while hospitality lagged at A$40.20/hour

● While a decline in productivity was experienced across all industries, 10 sectors, including manufacturing, agriculture and construction, surpassed the national productivity average (A$100.30)

● Western Australia emerged as the most productive state (A$102.50/hour), with average productivity 15% higher than Tasmania (A$89.00/hour), the least productive state

Louise Southall, Xero Economist, said: “Xero’s new productivity data offers timely insights into small business productivity trends, due to its focus on small businesses, speed to market, monthly measurement cadence, and objective, anonymised, aggregated data. This is in contrast to other productivity data which is generally broader, slower to be released and covers a longer time period. What the report reveals is differences in small business labour productivity, varying significantly across industries and states.”

Industry data highlights the importance of embracing technology and investing in skills

Despite being traditional industries, agriculture and construction were two of Australia’s most productive industries between 2017 and 2023. Agriculture operators appear to have embraced innovation, achieving a productivity rate of A$120.60/hour in 2023, while construction businesses have seemingly prioritised skill development, recording A$117.00/hour — the fourth most productive industry.

Conversely, hospitality had one of the lowest levels of productivity at A$40.20/hour in 2023, but Xero’s data suggests the industry is embracing technology to lift productivity in response to ongoing staff shortages.

“The hospitality industry has been able to lift its productivity post-pandemic, and it’s promising to see some operators turning to other solutions to boost efficiencies, such as QR codes or online ordering,” Southall added.

All Australian regions experienced fall in productivity

The variation in labour productivity across states and the Australian Capital Territory was smaller than it was across the industries in 2023, with Victoria (A$101.90/hr) and New South Wales (A$101.10/hr) only marginally behind the most productive state, Western Australia (A$102.50/hour). All regions tracked in the XSBI data experienced a decline in productivity, compared to 2022. Queensland experienced the smallest decline in productivity (-2.3%), a few percentage points higher than the average national decline (-2.5%). Interestingly, the largest decline was seen in Western Australia (-4.0%).

“The decline in productivity in Western Australia over 2023 is surprising and most likely just a small pull-back in a state that has outperformed other areas of Australia in recent years. Western Australia is one of only two states that had higher productivity post-pandemic – average over 2022 and 2023 – than it did in the three years prior to the pandemic,” said Southall.

Small businesses can take steps to lift productivity For practical tips on boosting productivity, Xero has compiled a guide covering key areas such as investing in better tools, refining processes, upskilling employees, and leveraging entrepreneurship skills.

Anthony Drury, Managing Director ANZ, Xero, said: “Labour productivity is an important indicator of small business success, and it’s clear some industries and states are thriving while others lag. We encourage small businesses to look at ways to digitalise to drive greater efficiencies in their day-to-day operations. This is particularly crucial for service-based businesses like hospitality and healthcare, which are currently tracking below the national productivity average.”

“Looking ahead, sustained productivity growth is critical for small businesses and the broader economy, and the government must introduce smarter policies that have widespread application for any location or industry,” Drury concluded.

You can find a copy of Small business productivity: Industry and regional trends here.

Amid turbulent times for Australian small businesses, with many on the brink, Employment Hero’s latest SME Index, which draws from an expansive dataset of over 1.5 million employees and 150,000 small and medium enterprises (SMEs), reveals major discrepancies in wages that pin the winners and losers of wage growth across different industries.

Wage Growth Winners & Losers: Crumbs for hospitality workers

At the bottom of the pay ladder, the retail and hospitality sector recorded the lowest hourly rate at $33.10; a monthly decrease of -1.3 per cent since April. This is aligned with a downward trajectory, recorded from the Index since the start of 2024, causing repeated concern for both workers and business owners in this space.

At the top of the chain, the technology sector currently boasts the highest hourly rate at $55.79. However, a -3.3 per cent dip in monthly wages and an annual drop of -2.5 per cent suggests a continued cooling within this industry, and challenges in maintaining competitive pay as austerity continues in the sector’s push for growth.  

Despite a -2.2 per cent monthly drop in healthcare wages, the sector recorded robust annual wage growth of +7.5 per cent, reflecting the ongoing demand for healthcare professionals.

On the other end of the spectrum, the construction and trade sector, amongst the biggest contributors to the nation’s economy, has shown steady wage growth over the past year, with significant annual growth of +6.2 per cent. Month-on-month, hourly rates grew by +0.7 per cent, up to $40.35, and quarterly growth of +0.9 per cent, indicating consistent upward momentum for this sector, after a concerning slump in recent months.

Overall, the average hourly rate across Australia sits at $38.67 Month-on-Month, a drop of -1.4 per cent in April. However, Year-on-Year, the average rate has grown annually by +8 per cent, which while potentially good for employees in the short-term, suggests an unsustainable and continued cost burden on SME employers.

Wages Signal Wider Economic Implications

Ben Thompson, Co-Founder and CEO of Employment Hero said: “The disparity in wage growth across industries paints a complex picture of the Australian economy right now. While the tech sector’s wage drop may signal an adjustment period, the overall high pay levels suggest sustained investment and demand in this field. 

“Conversely, the retail and hospitality sector’s slower wage growth highlights challenges in maintaining profitability amid fluctuating consumer spending. However, for many industries, if ongoing wage growth continues unchecked, it may contribute to further inflation, posing risks to economic stability. And while the healthcare sector’s consistent growth reflects essential investments in public health and workforce sustainability, the same level of attention should be equally given to our retail and hospitality workers who are currently struggling.”

Healthcare & Construction leading in business growth

Over the past month, overall employee growth increased by +0.5 per cent, with an annual growth rate of +7.0 per cent in May. The healthcare sector saw the highest annual employee growth at +9.4 per cent, indicative of the sector’s critical role and the increasing demand for health services post-pandemic. 

This was followed by the construction and trade sector, which saw a monthly growth rate of +8.7 per cent. This can be largely attributed to ongoing infrastructure development projects, and increasing demand for skilled labour in this sector. Interestingly, despite leading in wage growth, the lowest employee growth was recorded in the technology sector at just +0.1 per cent monthly.

Job stability fading for Hospo, Retail

The median hours worked have remained relatively stable across most sectors, with an average of 141.9 hours per month. Construction and trade employees worked the most hours, equating to 167.7 in May. This represented a -0.4 per cent drop Month-on-Month; the lowest drop of all other industries.

The healthcare sector saw the second highest number of hours worked with an average of 105.1, a -1.1 per cent drop in May, aligning with an overall growth trajectory seen in this sector.

For the retail and hospitality sector, the downward slope continues, with median hours dropping by -2.5 per cent; the biggest dip of all industries. As restaurants and retailers shut shop across the country, more pain may be on the horizon for workers in these businesses. 

Eddie Kowalski, Senior Insights Manager at Employment Hero, said: “The stability in median hours worked across most sectors is encouraging, particularly in construction and trade services, which saw the least decline. This resilience can perhaps be attributed to the ongoing demand for workers on large-scale infrastructure projects across the country.

“Meanwhile, the healthcare sector continues to show high numbers of hours worked despite a slight drop, reflecting its critical role and growth trajectory which can somewhat be attributed to a rising population. However, the significant decrease in hours in the retail and hospitality sector highlights ongoing challenges and the need for strategic adaptation to shifting consumer behaviours, but even more so, it represents yet another concrete sign of struggle that signals a greater need for government support for small businesses.”

Mr Thompson added: “The retail and hospitality sector is particularly vulnerable in the current economic climate. Business owners are strapped for cash and the declining wages and reduced hours are symptomatic of broader financial pressures these businesses are facing. This trend not only impacts employees but also overall consumer spending and economic stability. Addressing these challenges is crucial for the health of the broader economy, and businesses need to now explore sustainable strategies to navigate these challenges and support their workforce as a direct result.”

The SME Index offers a detailed overview of the current economic landscape, highlighting the need for balanced growth across all sectors. While wage growth is a positive indicator of economic recovery, it must be carefully managed to prevent inflationary risks. The insights provided by the Index enable businesses and policymakers to make informed decisions that support sustainable economic development.

In May 2020, like many of us, my wife Sarah-Jane and I found ourselves in unchartered territory as we found ourselves navigating our first pandemic. With our normal 9 to 5s in disarray, we very quickly realised that there was only so much bread we could make in lockdown. Sorry to take you back to the dreaded days of the covid, but it is the very reason we are here today. We found ourselves in lockdown one day needing to send a gift to a male friend of ours who was turning 31 (no biggy), which meant that we were looking for a simple gift with a wine and a treat or two. Nothing that was going to break the bank, but we still wanted the gift to be fun and boutique. We scoured Google trying to find the perfect gift hamper, but to our surprise there was nothing that tickled our fancy, zero, zip! Now, hear us out – the gift hamper industry was, and is, saturated. However, we simply couldn’t find something that was up our alley at that point in time. We were looking for something that had a collection of cool local brands, as opposed to white-labelled products, something that was beautiful and fun, yet gender-neutral. We wanted quality over quantity.  Six weeks later Good Day People was born.

From the chaos of launching a business during Covid we had a determination to make something extraordinary out of challenging times, little did we know that the chaos had only just begun. I want to share some learnings and insights on finding hidden opportunities when things get tough, leveraging your strengths and resources, and what we wish we knew in the building of a business.  

Seek Out Opportunities During Challenging Times 

When the pandemic hit, everything paused. But instead of wallowing in frustration, we saw an opportunity not only in a business idea but rather an opportunity of more time than we have ever had before. We noticed that there was a gap in the online gift market for gifts that catered to a younger demographic and so, decided to do something different. Good Day People was born, offering boutique, unique, and, bloody brilliant gifts that supported Australian businesses.  

The lesson for us was when life throws pandemics, economy downturns, etc., there is always some new opportunity or gaps in the market. What do people need or want that they can’t get right now? How can you fill that void? Sometimes, the best ideas come from the most unexpected places. 

Tapping into Your Strengths and Resources 

Starting a business in the middle of a global crisis might sound crazy, but we knew with our combined skills and resources that we could make something good. Sarah-Jane, with her background in design and photography, created a stunning visual story for our brand. I, with my experience as a food stylist and cookbook author, focused on curating the best local Australian products and crafting our brand voice. It’s amazing what can be achieved when you have complimentary skills. 

We transformed our skills and resources into a business that not only stands out but also supports local businesses. Our quirky, bright canisters filled with everything from wine and spirits to kitchen gadgets and beauty products quickly became a hit very quickly, too quicky. Our original goal was to sell a hamper day, after the first 12 months of trading we had sold over 10,000+ gift hampers Australia wide.  

So, what’s the takeaway? Leverage what you’re good at. Identify the strengths and resources you already have and think about how you can use them to your advantage. You might be surprised at what you can achieve with what’s already at your fingertips and who may be complimentary to what you offer. 

What Advice Would We Give To New Business People? 

If we could go back and have a chat with our younger selves, we would say: 

1. Embrace Uncertainty 

Life is full of uncertainties, and that’s okay. Don’t let fear of the unknown hold you back. Embrace it, and use it as a driving force to innovate and create. There will be setbacks. Some days will be tougher than others. But resilience is key. Stay focused on your goals or mission and keep pushing forward, even when it feels like everything is against you. 

2. Be Agile, Not Fragile 

I once heard a physio say you need to keep agile otherwise you will get fragile. Never stop learning. Whether it’s a new skill, a piece of advice from a mentor, or feedback from customers, suppliers or business partners, keep an open mind and be willing to be agile and pivot quickly.  

3. Cash is King 

We’ve all heard the saying “cash is king,” and trust me, it’s true. In the early days of Good Day People, we faced some serious cash flow challenges. Running out of cash is a tough reality many start-ups face, especially self-funded ones. Accelerated growth, especially when you aren’t ready for it, can be a blessing and a curse. We had to get creative and make some hard decisions to sustain the unexpected growth we had during the lockdowns. Given supply and demand, we were able to increase prices, negotiate better rates with our suppliers, get 30 day payment terms and we also ordered ourselves a business credit card to give us an additional 30 days. We were conservative with taking on risk such as increasing our overheads too quickly as we did not know what lied ahead of us beyond the pandemic. Keeping lean has meant that even as we’ve come out of lockdown and into a much slower economic climate, we’ve still managed to achieve a stable revenue stream that is growing year on year.  

4. Build a Brand That Customers Love 

We carved out a niche in our industry with a brand that has a fun voice and personality and a clear mission. We champion our amazing local brands. We are committed to doing better for the environment. We love on our customers and we take them on the journey. 

5. Think Big 

When times are tough, it’s easy to feel overwhelmed and discouraged. But remember, nearly all challenges can also be opportunities in disguise. By seeking out hidden opportunities, tapping into your strengths, and staying resilient, you can turn even the toughest times into a launchpad for success. At Good Day People, we turned a pandemic-induced pause into a thriving business that’s all about mobilising generosity and making it a Good Day for others, one bougie gift at a time.  

Written by Jacob Leung, Co-Founder of Good Day People and keynote speaker at Online Retailer Conference in Sydney, 24^th July. Jacob’s session will focus on ‘When the Going Gets Tough, the Tough Gets Going’ with more information available here.  

A new study conducted by online payments provider Pin Payments has revealed the biggest concerns for small businesses in Australia, with cybercrime, cost of living and late payments taking the lead.

The survey had responses from over 700 participants, who were either business owners or employed at a managerial or executive level within an SME. The results provided a unique snapshot into the current state of play for SMEs in Australia, highlighting the core issues and key differences between the countries.

Cybercrime was top of the list for Australian businesses, with 72 percent reporting fears regarding business fraud and 43 percent stating it was their biggest concern. Despite these worries, only 36 percent reported using two factor authentication as a security measure, showing a lack of fraud prevention across SMBs in Australia.

In New Zealand, the biggest concern for small businesses was late payments, with one in two businesses reporting it as a major challenge. Aussie SMBs weren’t far behind, with one in three people claiming it as a significant issue.

Unsurprisingly, economic instability was a major pain point for businesses in both nations, with a staggering 76 percent in Australia and 75 percent in New Zealand reporting that business has been impacted by inflation or rising costs, with customer spending decreasing by over 60 percent in both countries. Other reasons included, high borrowing costs and an inability to expand.

CEO of Pin Payments Chris Dahl said, it is clear to see the real impacts interest rate rises, inflation and increased costs of living is having on small businesses across both countries.

“This has been a growing area of concern for small businesses for years. Post-pandemic businesses haven’t had a break, with rising costs crippling opportunities for growth and leading to missed opportunities that impact revenue and, ultimately, business survival,” said Chris.

“In the last 12 months, the Australian Consumer Price Index (CPI) rose by 7.8 percent, its highest since 1990. Coupled with the difficulties businesses are already facing, that’s

concerning for the survival of small businesses which underpin our nation,” said Chris. In New Zealand, 50 percent of businesses said they had no plans to grow or expand. This was in stark contrast to Australia, who reported 1 in 2 businesses with plans to scale.

“It’s clear to see from these survey results, that New Zealand small businesses have been hit harder than Australia by recent global economic instability. Yet, New Zealand is a nation made up of small businesses, with over 5 million SMBs, making their survival vital to the country’s vibrant culture and GDP,” said Chris.

Recruitment sentiments between the two countries were another indicator of the disproportionate impacts of inflation, with Australian businesses being 27 percent more likely to hire in 2024 than New Zealand.

“There’s a lot of uncertainty for small businesses in both countries right now which leads to a halt in innovation and growth. Our nations share a union and often work side by side, with an overlap in businesses and staff. Therefore, the survival and support of the startup and SMB ecosystems in both countries is vital,” said Chris.

Looking ahead, the future of small businesses in Australia and New Zealand will depend heavily on greater collaboration, comprehensive support, and the fostering of a vibrant ecosystem for the SME and startup community.

Initiatives such as providing better access to funding, implementing robust mentorship programs, and fostering innovation through technology adoption are crucial to the continued success and survival of small businesses.

“Despite challenging conditions, SMEs across both nations have demonstrated remarkable resilience and adaptability over the past few years. Inflation has undoubtedly had a significant impact on small businesses, but with acknowledgment of these challenges and ongoing support, SMEs will continue to overcome obstacles and thrive in the long term,” said Chris Dahl.

In this era of AI, professionals must develop new skills to advance their careers. However, new research from LinkedIn shows they are facing roadblocks in their learning journey. Despite over half (52%) of professionals in Australia saying that their company is doing enough to cultivate a culture of learning, findings show that 9 in 10 (90%) say they face barriers that prevent them from learning new skills. Loud Learning is seen as a means to overcome this.

Top barriers faced include feeling exhausted and burnt out (39%), a lack of time due to family responsibilities or other personal commitments (37%), lack of motivation or discipline to set aside time (24%) and feeling overwhelmed by the amount of learning resources available (21%). 

Professionals are Loud Learning to overcome barriers to upskilling

‘Loud Learning’ – the act of being vocal and intentional about learning ambitions in the workplace — has emerged as a promising solution to this problem. Over half (54%) of professionals in Australia say that this practice can help them dedicate time to improve their skills. 

The top three ways that professionals in Australia are ‘Loud Learning’ include #1 informing their team members of their learning time blocks (41%), #2 sharing their learnings with teammates (38%) and #3 sharing their learning journey or accomplishments on LinkedIn (35%). Remarkably, 27% of professionals in Australia are already engaging in ‘Loud Learning’. 

Over half (60%) of professionals in Australia say that seeing their peers engage in ‘Loud Learning’ will motivate them to do the same. To complement their learning experiences, a third (30%) of professionals in Australia also say that they have a Learning BFF, with 41% also interested in getting one. A Learning BFF is a friend who supports and learns with them, makes the whole learning experience more fun and effective, while helping them stay accountable to their learning goals. 

Professionals are leveraging Loud Learning to grow their careers 

LinkedIn research shows that many(49%) of professionals in Australia believe that engaging in ‘Loud Learning’ can support their career growth. Some of the benefits include providing opportunities for mentorship and guidance from experienced professionals (30%),  facilitating knowledge and insights sharing amongst peers (28%)and opening doors to new career opportunities or advancement (27%).

Cayla Dengate, LinkedIn Career Expert, said:,  “According to LinkedIn data, skills needed for a job in Australia are expected to change by 66% by 2030, so it is vital for professionals to be super-focused on learning. ‘Loud Learning’ is a great hack that they can use to overcome the challenges faced when it comes to dedicating time to learning. By engaging in ‘Loud Learning’, you not only prioritise your own learning journey but also inspire and encourage others to dedicate time towards developing skills.” 

LinkedIn is also introducing new AI powered Premium tools to help professionals accelerate their learning journey. LinkedIn Learning’s new AI-powered coaching can help guide professionals’ course experience by allowing learners to ask for summaries of content or clarifying questions and providing real time insights and takeaways directly from the course pages. Powered by AI, LinkedIn’s expert advice allows learners to interact in an easy to use chat interface with select instructors and instantly receive personalised and actionable advice.

LinkedIn has also unlocked free LinkedIn Learning Courses including AI focused courses such as Building AI Literacy and Advancing Your Skills in Deep Learning and Neural Networks, as well as courses to support career advancement like Beating Procrastination and Project Management Foundations. These courses are available until 8 July 2024.

Here are LinkedIn Career Expert Tips from Caylaon how professionals can prioritise and commit time towards learning: 

• Be vocal by blocking out time for learning: Time-blocking your calendar is a simple way to commit to learning a new skill and for others to see you doing it. You could start with committing even just 15 mins a day and that can help you stay on track. 
• Post updates on your learning journey at work and on LinkedIn: Sharing your learning journey can encourage others. Share about your learning progress and how you overcame barriers with your colleagues and your LinkedIn network. This could help to spark discussions and might just inspire others to also dedicate time towards learning. 
• Buddy up with a Learning BFF: A supportive Learning BFF can make the process less daunting and more enjoyable while also holding you to account. Share insights and hold one another to your learning commitments to stay motivated throughout your learning journeys. A Learning BFF can also help to broaden your learning toolkit by introducing you to new tools and resources. 
• Leverage AI to supercharge your learning experience: LinkedIn’s new AI-powered coaching tool features a user-friendly chat interface to guide your course experience. Ask for advice around your learning gaps and get real-time insights on courses. Each response will also be personalised to you based on your title, career goals, and the skills you follow on LinkedIn Learning, so be sure to keep these up to date.
• Build your learning community: Engage in discussions on LinkedIn Groups – online communities where like-minded professionals come together to share insights around different topics. You can also contribute to collaborative articles to further exchange diverse perspectives.