Amid a challenging economic climate, Australian businesses face the daunting task of navigating uncertainty while striving for growth and stability. While many were already noticing their pennies weren’t stretching as far as they once did, the recent consumer price index release revealed an annual increase of 3.4% in January, indicating the cost of doing business will remain expensive this year. But while the outlook may look gloomy on paper, the figure is the lowest annual inflation update since November 2021 and shows a continued deceleration in the pace of inflation. Not only does this offer a welcome beacon of relief for businesses after two years of economic upheaval, it also means they can more confidently innovate, adapt and grow moving forward.

As market conditions continue to stabilise, the following five strategies offer a roadmap for businesses to not only survive but thrive:

Strategic business planning: With ongoing market volatility and increasingly frequent macroeconomic shocks, businesses should no longer think of these as “black swan events”. Instead, potential disruptions should be factored into regular planning and forecasting and businesses should regularly undergo “what-if” scenario planning exercises to mitigate the risks from potential uncertainties.

Create operational efficiencies with AI: Investing in AI and workforce development can counter productivity declines and boost efficiency. Strategic use of the technology will allow employees to reduce the number of hours they spend working on manual tasks and allow them to focus on higher-value work instead. AI - when leveraged effectively - can complement and enhance employees’ capabilities rather than supplant their roles and will simultaneously keep productivity up and costs down.

Form the right partnerships: Staying ahead of the competition often means accelerating speed to market in today’s business landscape, which can be difficult in a turbulent economy. By tapping strategic partners with expertise in areas - like HR, compliance, and legal - businesses can better tackle ongoing challenges and accelerate global growth. This collaborative approach allows organisations to focus on the sustainability and scalability of their operations.

Embrace remote work and virtual teams: Businesses can now tap into a global talent pool without incurring the expenses associated with traditional office setups. By embracing remote work and virtual teams, businesses can access skilled professionals from around the world at competitive rates. Platforms like G-P can facilitate the hiring and management of remote employees, ensuring compliance with local labour laws and providing support for international payroll and benefits administration.

Build borderless workforces: In the face of ongoing talent shortages and a tight labour market, it’s crucial for businesses to think beyond geographical borders in order to set themselves up for growth. Tapping into global talent pools and establishing an 'everywhere workforce' will allow these businesses to diminish dependence on particular talent types and build sustainable talent pipelines with the necessary skills, irrespective of location. When employees are equipped with a broader range of skills and work across multiple different locations, businesses are no longer confined to a specific market and become more resilient against frequent business disruptions.

Navigating a tight economic climate often pushes businesses into unchartered territory, prompting strategic decisions that enable growth despite the financial constraints. By adopting a combination of these innovation-first strategies, prudent financial management, and a focus on value creation, businesses can not only weather the challenges of economic turbulence but also emerge stronger and wiser.

The author

Charles Furguson general manager at G-P