{"id":801,"date":"2019-06-05T10:31:12","date_gmt":"2019-06-05T10:31:12","guid":{"rendered":"https:\/\/www.indwe.co.za\/indwe-blog\/?p=801"},"modified":"2019-06-05T10:34:17","modified_gmt":"2019-06-05T10:34:17","slug":"five-lessons-learned-todays-business-climate","status":"publish","type":"post","link":"https:\/\/www.indwe.co.za\/indwe-blog\/five-lessons-learned-todays-business-climate\/","title":{"rendered":"FIVE LESSONS LEARNED IN TODAY’S BUSINESS CLIMATE"},"content":{"rendered":"

With GDP growth prospects forecast at a meagre 1.3% for 2019, and 1.7% in 2020, business confidence in mid-2019 remains at an all-time low. Exacerbated by policy uncertainty, debilitating bouts of power cuts, challenges in industries such as mining, and political events like national elections, getting out of the slump continues to be a pipe dream for corporate South Africa.<\/p>\n

 <\/p>\n

But, what past experiences have taught us, is that South Africans are resilient when faced with adversity. Some of our country\u2019s most successful individuals and entrepreneurs such as Patrice Motsepe (African Rainbow Capital<\/a>) and Herman Mashaba (Black Like Me<\/a>), overcame economic, and socio-political hardship to initiate and lead successful businesses. Ian Fuhr (Sorbet<\/a>) endured severe financial pressure to get his start-up off the ground, while Jannie Mouton (PSG Group<\/a>) had to pick himself up after getting fired at age 48. Even Discovery Group<\/a> was not established in a financial boom \u2013 in fact, in the late 1980s and early 1990s, South Africa\u2019s future appeared to be on the figurative cliff edge. The common thread between them all, is that they all found opportunity during trying times. It\u2019s a phenomenon that has been engrained in South Africans\u2019 DNAs, in that, when the odds are stacked against us \u2013 and we find ourselves in \u201cinteresting times\u201d \u2013 our survival instinct kicks in, and we pull out all the stops to reach the top.<\/p>\n

 <\/p>\n

During times of uncertainty, as hard as it may be, leaders need to look for opportunity with zeal and vigour, all of this of course whilst simultaneously trying to keep their existing businesses afloat. If the opportunities were that easy to spot, or provided a sure-fire business revival solution, then everybody would be doing it. Now, more than ever, our quintessential Yenza uhlelo<\/em>; \u2018n boer maak \u2018n plan;<\/em> or \u201cTougher-er\u2122\u201d (with acknowledgement to Toyota<\/a>) gees <\/em>or character, needs to ignite us from within. These opportunities are potentially infinite and could mean, inter alia, identifying other revenue streams, saving clients\u2019 money, realigning business spend, creating new products or services, or simply forging ahead as business-as-usual while industry counterparts throw in the towel.<\/p>\n

 <\/p>\n

Essentially, leaders in the South Africa of today need to ensure that they spend sufficient time reviewing and identifying opportunities, and not just to focus on the day-to-day trials and tribulations of the business. In the financial services sector, there is no point being content with a redundant business model.<\/p>\n

 <\/p>\n

Without purporting to be the holy grail of \u201chow to survive tough economic times\u201d, there are some core fundamentals one should not cast aside in striving for relevance and sustainability:<\/p>\n

 <\/p>\n

    \n
  1. Don\u2019t compromise on integrity<\/strong><\/li>\n<\/ol>\n

    Integrity equates to trust, which is why operating with integrity is vital for a business. Technology has brought with it greater transparency, so businesses need to be honest in their dealings with the general public, and deliver on their promises to customers, or face the wrath of consumer action or risk being boycotted. Remember, integrity is simple to measure \u2013 one either has it or doesn\u2019t. There are no degrees of integrity.<\/p>\n

     <\/p>\n

     <\/p>\n

      \n
    1. Don\u2019t cut your rates to win business, sell quality harder<\/strong><\/li>\n<\/ol>\n

      We\u2019re often tempted to discount our rates, thinking it will win us more customers and drive growth. The reality is that absorbing the costs of a rate cut, means something else will need to get cut, and more often than not, it is the level of service that gets compromised. Sell quality harder \u2013 it\u2019s the differentiator that sets your business apart from the others, and what clients value more. By the same token, if you are operating a bloated business model, look at putting in measures to make it lean.<\/p>\n

      \u00a0<\/strong><\/p>\n

        \n
      1. Relook your business model and adapt to service the current climate<\/strong><\/li>\n<\/ol>\n

        Knowing how to successfully navigate changes, and develop appropriate and effective processes to stay ahead of changing customer needs, new competitors and evolving technology, is critical to the success of a business operating in today\u2019s environment.<\/p>\n

        Quite often, the solutions can be discovered with some introspection. The results from internal self-assessments are often completely opposed to the current business model. Yet organisations fail to implement change because it may mean letting go of certain clients, loss of revenue, downscaling etc.<\/p>\n

         <\/p>\n

          \n
        1. Don\u2019t reinvent your business \u2013 keep your identity and play to your strengths and make sure you have real differentiation <\/strong><\/li>\n<\/ol>\n

          As technology continues to improve, businesses will be forced to adapt according to their customers\u2019 ever-changing demands and expectations. But, in times of uncertainty, all a business could need is realignment to its true identity. It\u2019s easier and more cost-effective to focus on the purpose of the business \u2013 why it entered a market in the first place \u2013 and to play to its strengths, and play them well, rather than trying to re-invent itself. Although in some extreme cases, this is what some businesses have had to do.<\/p>\n

           <\/p>\n

            \n
          1. Lastly, business leaders should always ask themselves the following:<\/strong><\/li>\n<\/ol>\n

            How can you help your clients to make more money, save more money, better use their resources, achieve an optimal balance of risk and reward, boost revenue, and enhance their market offering?<\/p>\n

             <\/p>\n

            At Indwe, we\u2019ve tried to pioneer business improvement solutions during protracted and complex business climates, and when there\u2019s a spark of brilliance, it makes a significant difference to our business. While resilience and being optimistic play a part in driving growth when business confidence is low, seeing potential and finding and exploiting opportunities are, as we believe, the real silver bullets.<\/p>\n

             <\/p>\n

            Written by Peter Olyott, chief executive officer at Indwe Risk Services.<\/p>\n

             <\/p>\n

            \n

             <\/p>\n

            Was this helpful?<\/strong><\/p>\n

             <\/p>\n

            <\/a><\/a><\/p>\n

             <\/p>\n","protected":false},"excerpt":{"rendered":"

            With GDP growth prospects forecast at a meagre 1.3% for 2019, and 1.7% in 2020, business confidence in mid-2019 remains at an all-time low. 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