Survive, thrive in new world

Small and micro businesses can future-proof their operations.

In Level 3 lockdown, many businesses have been given the green light to resume operations. This is welcome news, considering the alarming South African SME Finance Association projection that 75% of small and micro businesses may be forced to close down if the lockdown ran beyond 30 June.

Simply resuming operations will not be enough for most of these businesses to survive, though.

This is according to Jeremy Lang, regional general manager at Business Partners Limited, who believes that while swift adaptation is essential for commercial survival during this time, to thrive in a post-Covid-19 world, many will need to reimagine parts of their business models.

“The reality is that the pandemic will permanently reshape many aspects of the world as we know it. Business owners need to not only adapt to the new normal, but use this as an opportunity to future-proof their operations.”

Lang cites a recent McKinsey feature that suggests four strategic areas for businesses to focus on.

Recover revenue

Spending hasn’t necessarily stopped, it’s just changed direction, notes Lang.

“Returning ... businesses need to quickly review and identify their primary sources of revenue and pivot operations accordingly.

“It’s important that businesses take a future-focused approach, taking into consideration how dayto-day life will continue to evolve.”

Rebuild operations

Certain weak spots in global supply chains and operations are being exposed.

“This is an opportunity to rebuild business operations in a way that guards against these risks in the future. For example, interrupted global supply chains might mean more emphasis on locally produced goods.”

Rethink the organisation

Small and medium businesses should rethink their internal structure and external orientation.

“If the business ever considered trialling remote working, now is the time. Remote working has been seen to increase staff loyalty, enhance worker productivity and lower operational costs.”

Accelerate the adoption of digital solutions

Digital is key to business recovery, says Lang, urging business owners to take their operations online and work towards digital solutions if they don’t yet exist.

“Many businesses can be successfully taken online with enough perseverance and innovative thinking.”

Remain agile and future-facing

South Africa is faced with a unique set of challenges that need to be tackled in a uniquely South African manner.

“We entered the lockdown with a struggling economy and experienced some of the strictest lockdown conditions in the world, so our economy will likely emerge from this period very differently to others.

“Businesses will need to remain agile and adapt as the situation shifts,” concludes Lang.