Small Businesses Must Reconnect with Community

"Kick off the year by asking yourself not what you can do for your business, but what your business could be doing for others!"  That is the advice from Sydney business coach Mike Reddy, who is concerned that small business owners are disconnecting from their local communities.

"Running a small business is fraught with challenges such as cost increases and competition for a shrinking discretionary dollar. But small business is, with 40 times the workforce of the mining sector, Australia's largest employer.  The best way for business owners to connect with the community is to ensure they remain a part of, rather than apart from, that community".

Mr Reddy, who heads business consultancy firm Shape Your Business, cited the recent public backlash against an Adelaide restaurant.  The restaurant had posted a menu with prices nearly three times that usually charged.  They hoped to demonstrate the impact that penal rates had on their costs.  

The overwhelming response was negative and focused on the plight of employees who had to work on public holidays.  This resulted in the owner quickly removing the sign while trying to limit damage as social media channels went into a frenzy.

"They should have adopted a better strategy", said Mr Reddy, "but I understand their frustration.  The fact is that Australia’s standard of living is dependent on the small business sector.  Business owners are finding it tough.  Their houses are usually heavily mortgaged to pay for the business and most work more hours for lower returns compared to their employees. Many would be lucky to have managed a two-week break last year.  And to rub salt into the wound, a majority later find their business is not worth anything like the price they paid".

Mr Reddy suggests that business owners focus on fostering positive relationships with their local community and resolve business issues through their local Chamber of Commerce.

“Get involved with your community.  Although donations may be out of the question many business owners have skills and resources that can be of great value to non-profit groups.  Involve your team, customers and suppliers in the process.  You will be surprised at the difference you can make – and how that support is often reciprocated”.

---------------- ENDS ----------------------

More on Adelaide restaurant http://www.news.com.au/finance/small-business/the-bombay-bicycle-club-under-fire-for-complaining-about-public-holiday-rates/story-fn9evb64-1226806387651

Mike Reddy’s article can be found at http://syb.com.au/blogroll/is-your-business-disconnecting-from-your-community