Riding the virus economic wave
WAY FORWARD: WHY NEED TO RESTRATEGISE
Now, more than ever, business owners need to step up in their leadership role.
When they say it is unprecedented times it is no joke. The sad reality is that when Covid-19 hit, there was a “lot of panic” and some entrepreneurs even made “irrational” decisions.
With the regulations in Level 3 easing further, allowing for more businesses like hair salons and restaurants to operate, it is important as an entrepreneur to restrategise on how your business will do things differently going forward so you may gracefully ride the economic wave.
Raizcorp chief executive officer Allon Raiz said now was the time for entrepreneurs to remember why they started the business.
“I think it’s very important to go back to why you started, and then test, in that time, if the market that you had in your mind at the time when you started is still the market that’s available to you now,” Raiz said.
He said that it was, of utmost importance to study whether your service or product will continue to exist under the “normal” caused by the global pandemic.
“One of the decisions that you’ve got to make right now is whether the market that you were in when you started your business, the market you were in pre-Covid-19, is still going to be available to you into the future. And, if it is, is it still going to be in the same form? Are people going to still want those products and services at the same price point delivered in the same way,” Raiz asked.
The biggest challenge for business owners has been cashflow, and a lot of businesses have had their income dry up.
He said what he was asking of entrepreneurs at this point was to start preserving as much cash as possible and to safeguard current clients while gaining new markets.
Leadership was a very important characteristic of an entrepreneur, and Raiz reminded business owners to take up this role, now more than ever.
“We know all the downsides to Covid-19. We know the threat to health; we know the threat to the economy – but knowing it does nothing for one. Doing something about it, leading is what changes everything,” Raiz said.
He said in his journey as an entrepreneur and small business incubator founder he has seen a stark difference between two types of entrepreneurs – those, who were leading and those that were following now.
“The ones who are leading are actively looking for opportunities, are actively changing their business structure, are actively looking for new markets, are leading the way,” Raiz said.
He said when entrepreneurs were leaders it was even visible in their businesses.
“They are leading their staff, they are communicating with their staff, they are communicating to their clients, they’re communicating to new clients that are out there, and leading,” Raiz said.
He also advised that if new business opportunities came your way, check whether they were in line with your market and relative to your core competencies.
“If that opportunity is not within your market, don’t take up that opportunity. You need to be within your market or your client base, or your core competency – and ideally both,” Raiz said.
We know all the downsides to Covid-19