Dubbo's reigning Gold Rhino awardee has identified water restrictions and the rising cost of food and other consumables as some of its key challenges in the drought.
Regand Park Early Childhood Education Centre (ECEC) owner and director Justine Richards also encouraged businesses to tackle issues arising from the dry directly and with a team approach.
She shared the advice as the city gears up for level four water restrictions on November 1.
The centre was named Dubbo's most outstanding business in 2018 after winning the Silver Rhino for Excellence in Sustainability.
Mrs Richards said the awards recognised Regand Park ECEC had implemented numerous strategies already to be "more sustainable both environmentally, productively and as a business that will continue well into the future".
It has continued to build on those actions, and Dubbo moving on to water restrictions on June 1 produced a new set of challenges.
"As the drought intensifies, I encourage businesses to look at the issues they are likely to face and utilise the ideas of their whole team to be as proactive as possible," Mrs Richards said.
"Every business will face different challenges.
"For us, the risk families will enrol their children for less days; water restrictions and the increase cost of consumable supplies and food are items we have had to consider and plan for."
The countdown is on to Friday's Rhino Awards, organised by the Dubbo Chamber of Commerce.
The centre director considers the annual event "extremely important in highlighting and recognising the amazing local businesses we have in our community".
"They are not only a great celebration of the hard work local business owners and their teams have put in, but they serve as a reminder to our wider community to support local business in order to keep our region thriving," Mrs Richards said.
"Supporting local businesses keeps money in our region and allows our town to grow and prosper.
"Running a business is hard and the Dubbo Chamber of Commerce and the Rhino Awards brings businesses together which builds collaboration, support and growth."
Mrs Richards thanked the chamber and event sponsors.
"We have loved having Russel the Rhino at our service and the children have delighted in seeing Russel's adventures as he has become a unique connection within our service," she said.
"We congratulate all the finalists on their efforts so far and look forward to celebrating with the 2019 winners at Dubbo Chamber's night of nights."