INDUSTRY TALK
Lessons learnt in are key to the sur South African small and medium-sized enterprises (SMEs) are the engine-room of our economy and the country cannot afford for this to collapse because millions of livelihoods that depend on them. Trevor Gosling CEO of small business service provider Lulalend discusses the valuable business lessons SMEs can learn from the 12 months South Africa has spent dealing with the COVID-19 pandemic.
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or many small business owners, mediumand long-term planning is not a part of their business strategy, but it is time to realise that the steps taken today will determine whether they will survive into 2022 or not. “There is a rich abundance of knowledge, skills and expertise in our SME sector – all of which has played an essential role in SMEs being able to adapt in order to survive the pandemic. Part of this is that we have had to move away from a ‘business as usual’ approach and realise the need to learn from the lessons that the past year has taught us in order to plan and prepare for the future,” says Gosling. Government’s financial assistance to the SME sector will need to be supplemented with decisive action taken within the SME landscape, he adds. “The R1.4bn relief package is not enough to save a sector that contributes an estimated R1.5trillion to the economy. Yes, the financial aid is welcomed but it is crucial that SMEs take action to ensure that they are able to recover from the economic hardship that the last year has dealt them,” says Gosling. To do this, it will require business owners to critically evaluate what did or did not work over the past 12 months. “While there is a renewed optimism, now that the first vaccines have been administered, it is not the time for SMEs to slow down and wait for recovery,” says Gosling. “Are there better, cheaper and more efficient ways of delivering your service and are there unnecessary overheads that you can cut? These are the things that business owners need to think about when mapping out their plans to survive and grow over the next two years,” he explains.
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UNDERSTANDING YOUR CUSTOMER BASE Equally so, Gosling says that SMEs need to understand how their customer base and needs have changed, which includes the competition. “These shifts are important to consider, especially if you want your marketing efforts to yield the maximum results. If your customer base or their needs have changed, it is important that SMEs focus on building new relationships to deliver repeat business in the future.” During the year ahead, time will need to be taken to revisit business plans and develop long-term strategies, to not just survive but to thrive. Many of the actions taken in times of crisis can be beneficial to a business in the long run. Owners should consider how hastily
INDUSTRIAL BUYER MARCH/APRIL 2021
Trevor Gosling CEO of Lulalend streamlined processes and drastically slashed overheads can be refined to create a new, efficient, and cost-effective business
