Stick to your guns for now

Before the first coronavirus case hit South African shores, over seven months ago, the economy was in recession and many businesses were taking strain.

The uncertainty and challenges that lockdown brought with it only added to this strain and many businesses were forced to close.

In this environment, small and medium-sized businesses (SMEs) have often been told to be innovative, adapt and even to rebrand. But global speaker, author and business owner Nicholas Haralambous thinks differently.

Unlike most thought leaders in the industry, he advices entrepreneurs not to completely rebrand.

“It’s crucial to stick to your knitting and do what you’re good at. Maybe pivot 10 degrees to the left, but don’t do a full 180 degrees on your business and your brand. It’s unlikely that we’re going to be in lockdown forever.”

He cites a restaurant owner, who is now changing his business model to online due to the pandemic.

“Being innovative and shifting to online and closing your store is a temporary fix for a problem that is going to be over very soon – whether it’s a year or two years. People are going to go back to malls, they’re going to go back to restaurants and have drinks,” Haralambous believes.

“What has happened is we’ve accelerated towards a future that was inevitable, anyway. Quickly doing a 180 and changing everything you’ve been doing for the past five years is probably not the sanest move right now,” Haralambous says.

Back to basics

He says that for most entrepreneurs, going back to basics will get them through the current hardships and allow their businesses to recover.

In doing so, your customers’ current needs should be at the centre of your business plans.

“You need to focus on your customer, figure out what your customer wants and give it to them. You need to focus on your product, or your service and make sure it’s the best that it can be. And you need to focus on sales,” Haralambous says.

He emphasises that even though most businesses are cash-strapped, they should refrain from seeking funding to boost their businesses, but rather focus on reducing operational costs.

“Most entrepreneurs don’t realise that they don’t need more funding, they need more sales….”

He also advocates being ruthless with your budget: “You need to review your expenses as brutally as you can. Now is the time to cut quickly and cut deeply, and make sure you only must cut things once. Then you can start growing again.”

He advises business owners who are struggling to pay their employees to keep the channels of communication with their staff open and honest.

“Be transparent, be honest, be upfront and trust that your staff is aware of the things that you’re feeling.

“The bosses out there who are lying and telling people that it’s going to be fine when it isn’t, or who are making people work five days, but only paying them for three days – I think all of that has to stop.”

This article first appeared on Moneyweb and was republished with permission.

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