Here we offer some 2020 survival tips for small businesses.
All businesses in South Africa are in the midst of the global COVID-19 pandemic, and a 21-day lockdown has paralysed productivity and immobilised employees.
More than most, small businesses face an uncertain future. But once the public health crisis ends, they will be vital for rebuilding the economy.
If you’re part of a small business, follow these steps to survive the lockdown and beyond.
Rejig the finances
Most business owners’ main concern is related to finances. Small businesses often depend on weekly sales to pay the bills.
Take these steps now:
- create a budget and prioritise expenses
- cut unnecessary costs
- consider lay-offs, terminations or furloughs of employees
- search for other sources of revenue.
Take steps to improve the efficiency of work from home
Many employees are working remotely for the first time. Expectations for remote working need to be set and managed.
Work out simple methods for employees to track their workloads and report on their productivity. For example, consider trying some of these free remote work tools.
Communicate with customers
Stay connected to your customers. This is vital so you can retain them after the COVID-19 restrictions and national lockdown have passed.
Although retail outlets and offices are closed, more people than ever before are active online. Be creative and find new opportunities to market and sell your brand.
Also think how you might be able to help during the crisis. Businesses that are visibly working to benefit their communities may see a payback of new, loyal customers in the future.
Work on improving your business
Sales may have slowed and projects put on hold. However, now is a good opportunity to tackle other parts of your business.
Spend time improving processes, products or services. When the world returns to normal, you’ll be better equipped to provide an outstanding customer experience.
Re-evaluate your 2020 strategy
The lockdown will have affected your business’s goals for the year and your strategy might need modifying.
When we’ve made it through this challenge, you’ll know exactly where to begin to get your business back on track.
For most South Africans, the internet is currently our only access to the outside world. Everything is happening online, from remote work meetings to entertainment.
Minimise your business’s losses by brainstorming ways to provide a digital offering.
This may involve out-of-the-box thinking. For example, is there a service or information resource you could market online?
If this is a possibility, it could help keep your business afloat and on customers’ radars.
Make use of available small business relief
The Department of Small Business Development has introduced three measures to support small medium and micro enterprises (SMMEs) affected by the lockdown.
One of these, the SMME Relief Finance Facility, provides soft-loan funding for businesses in distress for six months starting from 1 April 2020.
To qualify, a business needs to meet three criteria. It must:
- be 100% South African-owned
- employ a workforce that’s 70% South African
- be registered and fully compliant with SARS.
What we offer at Lamna
At Lamna, we don’t offer expert business advice or small business relief – and we certainly don’t have all the answers in terms of 2020 small business survival.
However, we may be able to help with a loan if you’re experiencing a short-term cash flow crisis.
We offer fast, discreet loans against the value of a wide range of assets, from vehicles to valuable artwork.
Client borrows R10,000 for 90 days.
Total Cost of Loan
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.