Your Business

There is no doubt that the recessionary forces (perhaps the first recession for some) experienced by all businesses are slowly being neutralized by a range of positive developments. Yet behind the signals and signs of an apparently ebb in the recession, we as small business owners and entrepreneurs, need to take cognizance of the fact that a re-emerging economy is NOT going to lift all businesses equally.

The benefits of the 2010 world cup and the state’s infrastructure programmes are well documented. However, more recently there have been signs that the soon-to-be-bonanza is gaining traction.

For starters, England trounced Croatia 5-1 last week and it seems like every British soccer supporter is on their way to South-Africa next year. With the help of the British press, the 2010 world cup has been on UK sports pages for days. Although expected all along, the fact that their supporters have been rushing to book their trips to our country has served as a wake-up call that the world cup is just around the corner.

And even though Eskom continues to ramp up price increases and renewable energy technology costs drop, ESKOM is creating a whole new industry that could open the door of opportunity for entrepreneurs. Just ask SASOL – they have announced plans to generate huge quantities of electricity. So, what does this mean to the would-be entrepreneur? Do yourself a favour by logging onto www.youtube.com or www.google.com and explore keywords such as ‘renewable energy’, ‘solar power’ and ‘wind turbines’. Your new business opportunity is possibly just a few mouse clicks away.

The latest and possibly most significant factor influencing the revival of entrepreneurship is the growing chorus of South-Africans who are on the verge of openly rebelling against the obnoxious level of cell phone prices we have had to live with for years.

I have always maintained that the growth of small businesses in South-Africa would always be a fraction of its true potential because the costs of doing business by phone were so astronomical. At a cost of almost R2.00 or more per minute, most emerging entrepreneurs just can’t afford to risk the high call costs. Thankfully, that is all about to change now that ICASA has plucked up the courage to take on Vodacom et al.

Perhaps you have also noticed that the Rand has strengthened? Generally we all feel good when that happens even if it affects exports and tourism. Inflation is steadily easing and the oil price is trading within a narrow band of 65-75usd per barrel. There is even scope for a further cut in the interest rate .The positive economic picture will certainly boost business but how you take advantage of the opportunities this presents will depend on whether you are familiar with HOW business has changed during the recession.

What are the new rules of doing business? Well, in spite of the downturn the world did not stagnate, it continued changing. Technological progress never stops in a recession (it more likely intensifies)! For example, the world of social media - from Facebook to Twitter and Blogging – are now main-stream marketing tools. These-days laptop computers regularly outsell PCs, and now laptops are even being challenged by net-books (mini laptops that are small and easy enough for the mobile business owner needing constant internet access). Remember how people used to pass on information about good service by ‘word-of-mouth’? Now start thinking ‘word-of-mouse’!

Customers have changed too. Information is everywhere; bad customer service travels at lightning speed on the internet, where choice is unlimited so nothing but the best is expected.

And as the economy shows signs of recovery, mediocrity is just not tolerated because, at the very least, new business owners will be embracing the latest technology, the latest techniques, niches and processes.

The real issue you should be focusing on is not really when the economy will boom again, but whether your business is equipped to exploit the pockets of exceptional growth that will come with such an economic turnaround. Think about this too - will you be a constrained by your own mediocrity or will you adapt to the new rules and reach even greater heights?

By Warwick Smith-Chandler CEO of Bizassist

http://www.bizassist.co.za/news.asp?Cat=Mar&Ref=2167