How to improve business results in 2015
The year of 2014 will go down as one of the most difficult for businesses in recent times. The strike in the platinum mining sector started in January and was only settled in June. Losses to the mines and their workers were enormous, but the trickle-down effect of the mines not buying meant suppliers were badly affected. That, in turn, affected their supply chains, down to the tax consultants of the managers of third tier suppliers. Only a week after the platinum strike settlement the metalworkers’ strike paralysed industry for a month. The post office did not deliver mail for months in some areas, new power stations again experienced construction delays, the radical EFF appeared on the stage and the e-toll saga developed in Gauteng.
On top of all this the South African national pastime of sharing bad news brought a mood of pessimism and resignation. What, you may ask, will make 2015 any better? One of the answers to that question is – you. There are many things you can do to shield your business from negative external events, and to seek the opportunities that any adverse event brings.
First the bad news. Power outages and strikes are not a possibility in 2015, they are a certainty. The duration and frequency are the only variables. Crime and corruption is not going away any time soon. There will be delays in postal deliveries and traffic light failures. Plan around this, deal with it and move on. Budget for diesel for the generator and courier fees, talk respectfully, not paternalistically, with your workers, listen to their concerns and dreams and do your best to accommodate them. Invest in IT systems to make your business more efficient, secure information off site or in the cloud, optimise deliveries for bad weather and traffic light failures, then move on with business. All of these have a cost, so price or sales volume increases will be required. Make this happen.
The good news is your business has the ability to shine against competitors when adverse events affect everyone. Smart entrepreneurs can turn any event into an opportunity. Energy-efficient products sell well when power costs increase – get or make the right products, then sell that feature aggressively. Exploit power outages to give better service or prices to your customers. Coffee bars may offer laptop and cell phone chargers, retail stores could give a discount when the lights go out. Think of the opportunities for suppliers with inventories of critical parts for their own and customers’ needs during times of disruption from strikes or transport delays. Do you think generator suppliers hope that Medupi comes on line soon, or glaziers do not budget for the hail season in summer? There are huge opportunities in any bad circumstance- see them as a challenge.
We should all stop complaining about how bad things are. Reality check; is it really that bad? If so, why are we still making profits? In a recent survey eight out of ten SME manufacturers indicated that they export manufactured goods and replace imports, according to a Manufacturing Circle report. Have you noticed the exotic houses being built on golf estates at an unprecedented rate?
