Service levels, bottom lines, marketing and getting rid of dead wood. Some good advice as we enter the first recession since 2009.
Stats South Africa announced on Tuesday that the country is in its first technical recession in nine years.
In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.
Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
Attention South Africa… Don’t worry about the state of the economy, focus on these key elements
But Dave Nemeth, a South African businessman has shared some good advice for South Africans who own businesses or work in management in businesses.
So we are technically in a recession but I would like to remind you of the many businesses that had started during a recession, as well as those that thrived during a recession. Times are going to be tough, make no mistake. So a couple of things you have to do:
You need to take market share from your competitors.
Service levels need to be impeccable.
Understand your good and bad costs in the business as you need to eradicate those that are not having an effect on your bottom line.
If anything, you need to increase your Marketing budget to reach more people, effectively. Most companies cut this first and end up with their market share being reduced by those that are bold.
You have to innovate. Try and test new things without spending a fortune to see what works.
Get rid of the slackers in your organisation. There is no place for dead wood or bad attitudes.
Work hard, work smart and try to stay positive.
Look for new avenues of revenue in your business, dig deep and look at your current resources…… you may be surprised at what you come up with.
Believe in yourself and manage your team well. This is where it starts. – know you will succeed, Dave Nemeth
The Recession is going to be an incredibly tough time for many businesses but good positive advice can only assist to get you through it. Focus on making your business work, and your business will work for you.
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