There’s no let-up in sight to the rising cost of living, but there is one group of Aussie business owners who aren’t letting price pressures keep them down – side-hustlers. Aussies with a business on the side are remaining resilient in the face of hikes to interest rates, utilities and daily costs. And they are taking proactive steps to insulate their business operations from the cost-of-living crunch.
A recent GoDaddy survey of more than 500 Aussies with a side-hustle revealed many are confident their businesses will grow this year and shone a light on the practical steps they are taking to protect their profits. Of the side-hustlers surveyed, almost two-thirds were tipping their businesses to grow this year, with nearly a quarter predicting they would be successful enough to turn their business into a full-time career.
Further, one in five said they were so confident in their business that they planned to expand their online presence. Only two per cent of those surveyed expected their business to decline this year while more than a third predicted business to remain steady. So, how are they tackling price pressures?
One in three small-business owners said they had raised prices to offset the growing cost of doing business, while 29 per cent updated shipping costs or options. More than a quarter of those surveyed said they had invested in automation or technology. The survey also found:
- 15 per cent have pivoted from global to local selling.
- 14 per cent have taken out a loan to help with cashflow.
- 11 per cent have applied for government assistance or a grant.
How to handle a price rise
Most small-business owners will do their best to insulate their customers from price rises, but sometimes there’s no other option but to pass on some of the increase in costs. If you have to raise prices, honesty and transparency are the best policies. A note at the point of sale, on your website or through email marketing to explain the increase can help take the surprise away for customers.
Check your shipping costs
While free shipping can be a powerful marketing tool, transport costs can also represent a significant portion of an online business’s overheads. To manage rising shipping costs, consider investigating a flat shipping rate, taking a close look at packaging materials and sizes and check you are on the best deal. It’s also important to have a clear shipping policy on your website to avoid customer confusion. It is worth being upfront about shipping costs to reduce the risk shoppers will abandon their carts.
Harness the power of shopping local
The power of local became especially clear during the pandemic as supply chain challenges and the rise in online shopping encouraged consumers to support those businesses closer to home. Emphasising your local credentials and the benefits of local products through email and social marketing can help you build rapport and loyalty with your customers. Your website can have a local flavour with an Australian domain name extension like “.au” or “.com.au” or even a hyper-local extension like “.sydney” and “.melbourne” which can help build trust.
Boost your productivity with technology
Being a small-business owner usually means wearing many hats at once so any way to reduce the load can boost your productivity. eCommerce stores often have features that can help to manage inventory as well as free analytics and you can link your social media channels to your website to share content. It’s also worth making use of online templates for email marketing and social media assets to remove some of the design hassles.
There’s no doubt many small businesses are grappling with price pressures as the cost of living and doing business continues to grow. However, small-business owners have found many different ways to help navigate the economic turbulence and remain optimistic about the year ahead.
