How your small business can cope
With winter around the corner, electricity supply and demands can damage your business.
Over the last few months, various businesses have expressed concerns regarding the overall impact of limited power supply the sustainability of their operations.
The country’s energy provider continues to emphasise that supply is likely to remain constrained due to ongoing maintenance and pending the completion of the new power station.
According to Sanjeev Orie, CEO of FNB Business Value-Adds, businesses need to explore alternative measures to minimise the impact of load shedding.
“Whilst the majority of big businesses may have contingency plans to minimise the impact of load shedding, the same cannot be said for most small, medium and micro enterprises (SMMEs), mainly as they do not have adequate resources.
The reality is that SMMEs have no choice but to explore alternative energy sources as a sustained period without an income could jeopardise the sustainability of their business,” he said.
Orie recommended the following measures to minimise the impact of load shedding:
Familiarise yourself with the schedule
Understanding when and how long your area will be affected will help you plan accordingly so that you are able to coordinate your energy needs. Load-shedding schedules are available across municipal websites as well as the national energy supplier; make it your business to have one at your disposal.
Invest in a secondary energy source
Buying a generator could be a useful investment for your small business, especially if you are in the retail sector. Retailers may need to use surplus income generated during peak business periods to satisfy their energy needs for the year ahead.
Maximise retail spaces
If your business operates in a retail centre such as a shopping mall, explore sharing generator costs with other small businesses so that the financial burden is not heavy on your business. Work out an arrangement that will not have a major impact on each of the businesses’ cash-flow.
Cash up at your earliest convenience
Waiting until close of business before cashing up could be risky, especially if you have no back-up power. Keep less cash in your register and if possible, encourage clients to use bank or loyalty cards to limit the risk of handling cash.
Explore being open for longer hours after load shedding
If you do not have back-up power, consider extending operating hours to recoup some of the business lost during load shedding. Obviously there is a lot to consider before making such a decision but it is important to explore such a plan.
