What to do about a lack of support can do for your business

When there is a glitch in infrastructure and service delivery, it can radically impact your business’s success. Businesses need support now more than ever.

Over the last year, there have been so many interruptions that it is difficult to pinpoint one specific reason to fail. 

Power outages

The load shedding that SA experiences regularly is a significant factor in the loss of sales and productivity. If you have a store in a mall, you shut your doors for 4 hours if the landlord does not have backup power supplies. 

If you have a large factory and do not invest in your own backup supply, your staff sit idle for 4 hours at a time. It is a key requirement to do business for so many companies, and the constant shutdowns stop businesses from growing. 

Solution: If possible, companies must get off the grid and rely on government-supplied infrastructure. It is an investment, of course, but the benefit will outweigh the cost as a business. 

Crime

It is a contributing factor when deciding on-premises for your company too. You may be exempt from the crime waves if you can be in a gated community, office park, or something similar. If not, you need to spend more on security features, which increases the costs regardless. 

Solution: Business-led, community security options are key. If you can get the buy-in from all the immediate surrounding businesses to contribute to security, it reduces the costs. Possible gated roads for added security after hours can also be an option. 

Civil Unrest

The recent riots that spread through the country had severe consequences for many companies. Businesses shut down for good, spurring another wave of emigration, as business owners could claim insurance and take their liquid capital to a safer environment. 

It meant closing their doors for a while, repairing any damage, and then only getting back to business for other companies. These added expenses hit the bottom line far worse than just closing shop for a week. The long-lasting consequences will still result in job losses as the income and profits decline.

Pandemics

In year two of the pandemic, some businesses are back to trading, but many did not survive and closed permanently for the restaurants and smaller companies. For the ones still trading, it is tough to manage fractions of turnover from pre-covid days. Targets and turnovers have to be re-adjusted to accommodate the change in the business environment. 

Solution: Continue to measure the business success or shortfall and make the hard decisions early to enable the business’s survival. 

As South Africans head to the polls today for the local government elections, it will be interesting to see where the votes sway based on the parties’ promises. South African businesses need government support more now than ever. 

Bizcash is a South African company that wants to grow SME’s in SA to ensure a sustainable future for all.

Please speak to our team to find out more about how we can support your business with expansion plans with alternative funding options. Get in touch with us on 0861 93 93 93 or email us on info@bizcash.co.za or contact us here.

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