Outsmarting the recession Presented by Riana Grobler

Outsmarting

the recession

Presented by Riana Grobler

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Niche markets

Franchises

Farmers

Self-employed professionals(medical,

legal, accounting, engineering

etc)

Family owned

businesses

(FOB)

Small Office Home Office

(SOHO)

Selected niche markets

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Franchise industry

• 81% success rate compared to 25% of independent start-ups.

• Advantage of Franchising: Huge contribution to employment.

• Growing at a rate of 30% p.a. (according to FASA – Franchise association of South Africa).

• Growing trend to lower distribution costs & expand the business.

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• Approx. 80% of SA businesses

• Family Businesses have outlasted

governments, nations & cities

• FOBs wealth creator all over globe

Family businesses (FOBs) in South Africa

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Family business association of South Africa - FABASA

• Old Mutual founding sponsor

• Mouthpiece for Family businesses in South Africa

• Independent body

• 1st President is Fanie van der Merwe of Boplaas – oldest family business in SA – 9th generation

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11 point plan

How to survive in the present

economic climate

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FirstlyImprove your market position/regain market

share

Consider - Reducing business expenses without

compromising on quality.

How?

• Suspending business class travel;

• Replace client dinners with breakfasts;

• Sharing office space/relocate to less expensive premises.

Cut expenses, not quality of products/services

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2. Motivate your staff

• Imperative to encourage, motivate & reward your top personnel;

• Beware of reducing staff only to cut costs;

• Have to train new recruits;

• Costly exercise in the long run.

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3. Open discussion with staffPositive spin-offs:

• Employees offer advice,

• Support & even go extra mile.

Inspire staff to work harder & smarter.

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4. Meet customer needs

• Speak to existing and loyal client base;

• Continue satisfying their needs.

Look for ways to add even more value.

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5. Marketing strategies

• Present client base

• Increase marketing efforts – target existing clients

• Sell more to them

Defined approach allow you to reduce marketing

spend in other areas

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6.Time is money

• Develop tighter work schedules

• Results-driven schedules designed to

• Improve profitability &

• Improve sustainability.

Never mistake schedules, or activities for

achievement John Wooden

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7. New profit & growth opportunities• Not in line with market needs;

• More of the same;

• Differentiate yourself;

• Create scarcity in an era of plenty;

• New cash cows; new niche markets.

Your profits may be locked in your stock.

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8. Cash is King – Debt destroy• Economies are cyclical

• Plan for next recession – START SAVING!!

• Repay your business debt

• Get cash positive

“It is not how much you make that counts, but how much money you keep.” Robert Kiyosaki

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9. Trust yourself

• Keep your faith;

• Believe in yourself;

• Believe in your business;

Always keep a positive attitude!!

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10. Look at the big picture

• No room for the small-minded

Singer, Loretta Lynn nailed it when she said:

“You gotta be first, best or different.”

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11. Consider assistance• Specialist consultants:

• Accountants;

• Business consultants.

• To identify problem areas;

• Provide solutions to challenges.

Acknowledge your problems & seek solutions.

Your business is worth it!

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Conclusion

• You hold the key to the success of your business.

• Think big!

Believe in yourself & in your business & you

will not only survive, but thrive into the

future!!

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Thank you

Riana Groblerrgrobler@oldmutual.com