The Zeller Regional Report: Shining a Spotlight on Regional Businesses

Despite a difficult run initially, as more than 30 brides cancelled or rescheduled their weddings due to restrictions, destabilising a large portion of the newly launched business, Thistle Flowers is thriving. Matt and Chris’s determination to showcase the raw beauty of Australian flora, coupled with their individual flair and personalised service, has quickly attracted the attention of locals. For Matt, it’s the community aspect he loves most about running a small town business.

Thistle Flowers, Port Macquarie, New South Wales

“The best thing about running our business here is that we can visit local flower farms, and sell bunches the next day. It cuts the supply chain down, and is more relationship-based. It’s important to us to develop and keep strong ties with the community,” he says.

The couple’s marketing and sales techniques have been equally as innovative. The Food Farm's first chicken caravan was purchased using the funds generated by a potato pulling event at an open farm day. “We wanted to do something cool, where people can get dirty and have a good time. We had about 4,000 people finding us on social media and wanting to come — so many that we had to go out the night before and bury more potatoes, from a neighbouring farm,” Tim said. 

The Food Farm at the Carriageworks Farmers Market, New South Wales

Hannah and Tim also made the decision early to accept digital payments, as they observed other merchants limiting themselves by relying solely on cash. Throughout the week, a courier delivers boxes, purchased online, to nearby areas. On the weekend, Hannah and Tim travel to the Carriageworks markets in Sydney, where regulars are often waiting to fill their bags and talk of the meals cooked using last week’s purchases. Locals can make a last-minute purchase from Hannah and Tim's front gate using their card or digital device. 

The pair’s out-of-the-box thinking has set them in good stead to grow the business and introduce new animals and fresh produce lines, and they’re not alone. After a difficult couple of years, Australian business owners have shown incredible resilience and ability to adapt. Now, their optimism is shining through.

Of those surveyed, 87% of Zeller merchants are confident in their ability to grow their business in 2022. These changing patterns and newfound business confidence will no doubt make a mark on Australia’s regional economies for decades to come.

Port Macquarie, New South Wales

According to Zeller data, the top three challenges regional business owners have faced in the last year are managing COVID-19 restrictions, a lack of time to do everything, and slow cash flow. Other challenges include steep hikes in rental prices and more competition, and difficulty hiring staff.

The reality is that starting or growing a successful business in regional or rural Australia in 2022 and beyond requires a different approach to that which has worked in the past.

They’ve since expanded the business — opening up more chairs, a tattoo parlour out back, and a cafe out front. This strategic move has seen an increase in foot traffic as regional Australia returns to normal following the ease of restrictions.

The pandemic tested the resilience of regional merchants more than most. Small businesses are the lifeblood of many regional communities, and local communities were quick to rally support those hardest hit by restrictions — like hospitality venues, beauty salons and barbers. With restrictions now a thing of the past, the key to future business success for regional merchants will be to find ways to build upon the relationships established through lockdown.

Boneless Barbershop, Eaglehawk, Victoria

A focus on quick cash flow from the outset

Cash use has been in steep decline for a decade, increasingly passed over in favour of more convenient methods. It’s a shift in spending habits that has seen more than one in three ATMs outside of metropolitan Australia close since June 2017 — in turn making it difficult for those consumers who still want to use cash to access it. Since concerns over cleanliness and hygiene heightened, cash has become even more infrequently used. Instead, consumers are paying contactlessly using their cards, mobile phones and smart devices. 

Fewer customers paying with cash is good news for all business owners. The less cash transactions, the less cash kept on site and the lower the security risk. This translates to fewer trips to the bank to deposit funds.

Rather than needing to manually count cash drawers and then securely move deposits to bank branches, which are now further away than ever before, Zeller merchants can accept the vast majority of funds via their EFTPOS terminal and have those funds settled to them nightly, 365 days a year. The ability to quickly pay rent and other bills, purchase more supplies, and pay yourself as a merchant relies on fast settlement times.

An entrepreneurial mindset to test the market

For local Geelong chef Tolga Biyik, who lost both of his jobs when the hospitality industry was shuttered, a brief break was exactly what was needed to spark a change. “I had a lot of time to reflect on what’s important. I think COVID was the break a lot of people needed to reflect on what they want in life. Losing both jobs was actually good for me,” he said. 

Despite never having run a business before, Tolga leveraged his network to find opportunities to quickly establish a presence in the busy Victorian hospitality scene.

Hair and Halo, Bendigo, Victoria

Dealing with natural disasters

Flooding, bushfires and drought are just some of the unique challenges Australian merchants face. Business owners in remote areas are often disproportionately affected by these extreme weather events and other natural disasters — road closures, telecommunication issues and inventory losses are particularly difficult challenges to overcome outside metro areas, where distance creates additional hurdles. It could take weeks, months, and potentially even years for a business to get back up and running again after a crisis.

While it is difficult to plan for forces of nature, there are a couple of things regional merchants can do to safeguard their business. Establishing a crisis communication policy, business continuity plan and seeking appropriate insurance are all important steps. Yet as the devastating recent floods in Queensland and New South Wales show, one of the best ways to protect your business from the impact of future crisis is to develop and rely on strong community ties.   

Individually-owned businesses play a central role in the social and economic fabric of regional communities. In times of crisis, people look to retailers for supplies. Hospitality owners often open their kitchens and prepare food for their community. Businesses of all shapes and sizes contribute their time and resources. It is in those times that the strength of a community, and the resilient attitude of the merchants operating within it, shines through to get local businesses back on their feet once more.