The business environment, especially in South Africa, was already in a precarious position before the pandemic hit us unprecedently. With a 0.2% economic growth in 2019, businesses from JSE to the streets of Soweto would have to buckle up to survive. COVID19 required extraordinary efforts from businesses. This has been to the benefit of some and the detriment of others.
The pandemic has been the unceremonious force that has revolutionised the way we do business. Part of this change has been paying more attention to the core viability of our businesses. How we amalgamate our business’ value proposition with the parameters that have been created by the pandemic. It’s not an easy endeavour at all, but it’s necessary. In fact, it has been the businesses that have been able to pivot in 2020 that have not seen the daybreak of bankruptcy or liquidation.
“Now more than ever, businesses need to be plugged into the news and the major indicators of their respective industries so that they don’t take a blow when a new tide comes in”.
Staying one, two and three steps ahead
As entrepreneurs, we can become intricately engrossed in developing our products, marketing our business or scouring through administrative work. For this, we never take a minute to look up and examine how we can stay 3 steps ahead of the market environment. Much like the 2008 global financial crisis, the business world could be cited as guilty for resting on it’s laurels. How could we have failed to make contingency plans for global disease outbreaks? Now more than ever, businesses need to be plugged into the news and the significant indicators of their respective industries so that they don’t take a blow when a new tide comes in.
Stats SA recently published our actual gross domestic product results for the fourth quarter of 2020. The results revealed that our economy managed to grow by 6.3%. The top-performing industries were manufacturing, trade and transport. For entrepreneurs in these industries, this information is imperative. The greater the revenue circulating in your industry, the better your supply chain becomes. It signals an increase in consumers’ income again. Information of this nature will assist you in the operations management of your business, capital budgeting decisions, marketing and deciding the niche you want to focus your business on.Â
Thato Mokhothu, is the epitome of what it means to stay 3 steps ahead and respond to your industry is demanding in times of calamity. As a member of the Graça Machel Trust’ WCW Programme, Thato’s main line of business before the pandemic has always been in construction. Her company, RTT Construction & Consulting, was forced to retrench staff and halt all building projects during the height of the pandemic in 2020. For a moment, this left Thato very distressed and helpless. After giving herself a moment to grieve the difficulty, she spotted an opportunity to transition into the consulting space, still within the construction parameters. This led to her achieving unprecedented growth and surviving the economic impact of the pandemic. Â
Thato Mokhothu, WCW Connect and Inspire
Thato’s journey exemplifies the due diligence we as entrepreneurs are supposed to do to stay relevant during periods that shock global supply chains.
Get your house in order
We have learnt about the importance of implementing internal sound controls in our businesses. Reports written during the height of the pandemic have suggested that many SMMEs that did not qualify for the COVID-19 Relief Fund submitted incomplete documentation. And in other cases, some of those documents were non-compliant with the requirements set out by funding agencies. The pandemic has taught us a very bitter lesson on the threat disorganisation pose to our businesses. From the historical accounting records, invoices, registration to the compliance certificates, and plethora of documents required by funding agencies when we seek financing, it’s safe to say that we have received a rude awakening.Â
The biggest principle in business is to control what you can and leave the rest to the markets. Administrative tasks are well within your control either through solely doing it or hiring a staff member who will ensure that “your house is in order”. This principle has always been important, well before the pandemic. However, when SMME’s have copious amounts of opportunities to keep their businesses as going concerns by applying for funding with various agencies, internal controls are more imperative.
The National Empowerment Fund, a government funding agency, has called for SMMEs to apply for their Covid Relief Fund. While the prospect of applying for funding is encouraging, their requirements section on their website is enough to scare disorganised entrepreneurs off. Every application needs to be accompanied by recent management accounts, previous annual financial statements, the shareholders’ personal assets and liabilities statement, bank statements, and compliance certificates.
Maybe your business survival strategy during the pandemic requires more finances. To let opportunities such as these slip away because of administrative issues would be regrettable. Let’s get our houses in order!
“However, at a time when SMME’s have copious amounts of opportunities to keep their businesses as going concerns by applying for funding with various agencies, internal controls are more imperative.”
Put Some Skin In The Game
Fight for your survival. Stand tall and stay focused on your business. Put some skin in the game. Once your house is in order, you’ve examined how you can pivot and where the pandemic is taking us, use the tools at your avail to take your business to the next level.
For some, putting some skin in the game may translate into collaborating with other businesses in your industry, it may mean learning a new skill if the skills you currently possess are redundant or it may require you to be more creative in your marketing to expand your customer base.
As clichĂŠ as it may sound, the saying:Â “Tough times don’t last, only tough people do” is how I can epitomise how one can survive the pandemic.
The Trust supports and mobilises civil society networks on issues of ending child marriage, ending violence against children, ending female genital mutilation and promoting childrenâs rights, to carry out advocacy and action across Africa. Special focus is placed on Malawi, Mozambique, Tanzania and Zambia where child marriage continues to be a problem largely driven by poverty, gender inequality, harmful traditional practices, conflict, low levels of literacy, limited opportunities for girls and weak or non-existent protective and preventive legal frameworks.
Education is a fundamental right for all children, which is also a vehicle for social, economic and political transformation in communities, countries and the African continent at large. Recent studies indicate a lack of progress in some of the critical commitments aimed at improving education quality, access, retention and achievement, particularly for girls. In most African countries, girls may face barriers to learning, especially when they reach post-primary levels of education. By implementing multi-dimensional approaches to education which includes core education, personal development, life skills and economic competencies, the Trust partners with funding partners, governments, civil societies and the private sector to improve education access.
The Nutrition and Reproductive, Maternal, New-born, Child and Adolescent Health and Nutrition, (RMNCAH+N) of the Childrenâs Rights and Development Programme aims at promoting the Global Strategy for women, children and adolescentsâ health within the Sustainable Development Goals (SDG) agenda. The strategy emphasises on the importance of effective country leadership as a common factor across countries making progress in improving the health of women, children and adolescents.
Through its Early Childhood Development (ECD) plan, The Trust will seek to put into action the new science and evidence Report that was presented by Lancet Series on Good and early development – the right of every child. This will be achieved by mobilising like-minded partners to contribute in the new science and evidence to reach all young children with ECD. The Trustâs goal is to be a catalyst for doing things differently, in particular, to rid fragmentation and lack of coordination across ECD sectors. In response to evidence showing the importance of political will in turning the tide against the current poor access and quality of ECD. Even before conception, starting with a motherâs health and social economic conditions, the early years of a childâs life form a fundamental foundation that determines whether a child will survive and thrive optimally.