If you are the owner of a business in South Africa, then you are well aware that changes in politics affect your business as well as your ability to make profits.
Can we expect to see some growth in our businesses? Or … not?
According to the “Allianz Risk Barometer Report 2018, changes in legislation and regulation (government change, economic sanctions, protectionism, Brexit, Euro-zone disintegration) can affect our businesses by up to 27% compared to 25% last year.
In order for us to prepare our business (at least try) for whatever is coming for South Africa this year, we need to take a look at where we currently stand, in our country.
So how can we, as South African Business Owners, minimise any unanticipated risks to our business in 2018 and increase our profits?
Here are 4 Tips to consider to increase your profits in your business:
1. Consider diversifying your current revenue stream
It may be time to consider diversification of your business if you can. Diversification is the key to surviving almost any dramatic shift in a country. Consider new income streams, adding to your production or service line, as this could be the difference between breaking even and becoming profitable in 2018.
2. Also target other markets
Your current target market could be working well, however have you researched whether or not there are others that could also benefit from your product or your service? Get your marketing department to do some research on potential markets you can sell to. For example: If your consumer market ranges from teenagers to college students think about where these people spend most of their time and target new ways to advertise to them.
3. Investigate the potential of exporting your product
Finding an untapped market would bring untold opportunities for your company such as increased profits and improved domestic competitiveness, and so on and so forth. You will gain global market share and could potentially demand a lower per unit cost because of increased volumes.
4. Support for locally made and sourced products
Small businesses are at an advantage in South Africa as they can offer local alternatives to national chains or services. One way to take advantage of selling your local service or product, is to make it clear that you understand the needs of your community and are interested in being a part of transformation in the area in which you operate, as long as you are genuine.
So where do you start?
Unfortunately, it’s a fact that to run a profitable business it is all about preparation and planning. You have to allocate the time to plan where your business is heading otherwise you are just working to “work”.
Some people will be left behind, as they have already probably settled into the same habits as last year.They don’t realise business trends are accelerating. Businesses are moving forward at a faster rate than last year.
Consider doing things differently in your business in the new year.
Start with educating yourself about the changes taking place in your industry and in our country. Making the right decisions becomes clearer when you’re aware of what’s happening around you.
Consider aligning with a mentor who can advise and guide you on how to make your business profitable in South Africa in 2018.