Five ways small business owners are driving growth, boosting cash flow and protecting their bottom line in the face of rising costs.

At a glance

Here’s a snapshot of the advice from our interviewees:

• Stock products you believe in and surround yourself with like-minded companies – you can start to build community and let people know what you're about.
• According to business mindset coach Christine Corcoran, "the companies that are making the effort to really understand what's going on for their customers are the ones that are winning”.
• Consider how your business’s brand informs the effectiveness of your marketing.
• "If you can't interpret your customer through analytics and use the right keywords to attract them, I think that's a disadvantage," says cafe owner Jason Moore.

In January, small business sales fell to their weakest levels since September 2021, according to the Xero Small Business Index. But gloomy conversations around scarcity and possible recessions can cause business owners to make bad decisions for their companies because they panic, explains business mindset coach Christine Corcoran, who has clients across Australia, New Zealand, the US and Europe. “They may start discounting their prices, copying their competitors or doing a sale that’s completely off-brand, which can be damaging,” she says. “Instead, draw your attention back to your own business, focus on the customer and look for possibilities.”

Here are five tips for how small business owners can plan to counter rising costs this financial year and boost cash flow by encouraging customers to spend.

1. Focus on your strengths

Colin and Donna Stobie stock clothing and lifestyle products from conscious brands at their design studio and store The Good Tonic in Whakatane. Colin says their customers are seeking something made with love. “People now want to know where products are made, so we share the stories behind our brands,” he says. “Stock products you believe in and surround yourself with like-minded companies. You start to build your communities and people start to know what you’re about.”

2. Target your marketing

With customers being more discerning, it’s never been more important to know and understand them, says Christine. “The companies that are making the effort to really understand what’s going on for their customers are the ones that are winning,” she says. Colin says while Bay of Plenty attracts plenty of tourists, he markets mainly to locals. “We hold workshops and interact with the local community, both through social media and at events around town.”

“You could be spending in a place that’s not really benefiting your business.”

Consider also how your business’s brand impacts the effectiveness of your marketing. “A common misconception is thinking your brand is your logo, shopfront and business card,” says marketing and branding expert Sean Withford. “It’s not. Your brand is how people feel about you. “Think of a brand as the gut response customers have to your business. Your logo is a part of that, but it’s not everything. A cafe might have an amazing logo, but if the staff are rude, the food is served cold and customers are consistently overcharged, they end up with a negative brand – regardless of how good their logo is. “A nice logo and website do not make a brand.”

3. Get technical

Jason Moore owns cafe and coffee roastery Vanguard Coffee in Dunedin. He says teaching himself about SEO, Google Analytics and Google Business Profile – rather than paying someone else to – has been invaluable for his business. “If you want to be more than just a local business, having a great understanding of the online world is key,” he says. “I have done courses and watched YouTube tutorials to better understand where people are coming from, what they’re after and how they’re finding us. “If you can’t interpret your customer through analytics and use the right keywords to attract them, I think that’s a disadvantage.”

4. Keep an eye on new markets

Jason is eyeing foreign markets as a possible outlet for expanding and reaching new customers. “With only five million people in New Zealand, trying to engage with a small niche is difficult,” he says. “Companies doing some of the things we’re doing in America are exploding with growth. “If there’s a gap in the overseas market for your product or service, absolutely consider it.”