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BUSINESS FEATURE

SIX TACTICS FOR BUILDING

A RESILIENT BUSINESS IN

TOUGH ECONOMIC TIMES

BY BERT WEENINK

Making your business resilient to economic downswings is not a new thing for
SME business owners in South Africa. However, determining what to do to survive,

no matter what the economy is like, is key.

he difference between a prepared to deal with the effect of inflation on and stronger purchasing and pricing
response and a knee-jerk reaction higher commodity pricing, supply capabilities.”
Tby business owners is the fact that constraints and higher wage costs. The
prepared business owners engage in Harvard Business Review reported that Money matters
deliberate preparation, prior planning, the USA producer price index (PPI) rose Yes, money is what matters, and you need
and intentional action. by 10% in the first half of 2021. Therefore the best strategies for dealing with it as
I believe that as companies deal with it could make or break your business.
At ActionCOACH-Inspire, our quarterly inflation, they should not only consider I would like to highlight the following
business planning workshops, also called adjusting their prices, but also critically six proven tactics that, according to the
GrowthCLUB sessions, are the main reason look at their spend and cutting costs as Harvard Business Review, companies
why business owners who work with an part of managing their businesses in the must deploy to achieve their financial
ActionCOACH business coach are better economic storm. goals in these turbulent and high
prepared. They are therefore more resilient inflationary times.
in their thinking and action plans. Management must manage
Managing a business effectively requires
Why, you may ask? I believe it has a lot a well-constructed budget and strong • Create spending visibility – managers
to do with spending enough time in the accounting practices, on-time reporting must have a high resolution view of
planning process. Developing scenarios and skilful use of time and resources. It is where the money is flowing to. Where is
or alternate plans of action and thinking essential to hold your team accountable the money spent and who is spending
them through properly is key to survival to deliver the budgeted numbers, follow it? It is important to establish the right
and opening your eyes to different up, train and guide employees to reach accountability levels throughout the
possibilities. By fully understanding the maximum performance. Intelligent business.
risks to their businesses as well as the managers know how to systemise • Distinguish between strategic and
available alternatives, business owners routine procedures while humanising the non-strategic spending – as the
will develop a strategic advantage over exceptions. business owner you must be careful
other players in the market. not to make choices that will influence
All companies must prepare for higher the company’s long-term strategy
So how do you protect the profit inflation in this new post pandemic negatively. Prioritise higher ROI
in your business against inflation? environment, including the uncertainty investments and out-invest competitors.
According to the Harvard Business of the impact of the war in Ukraine. The • Understand the spend drivers –
Review (HBR) studies of more than 5700 HBR states that “companies will have Develop a robust understanding of
global companies, cutting expenses is a to cut costs, build scalable business the real drivers of cost in the current
vital part of how companies must deal growth platforms and strategically environment. Fully understand the price
with inflation. Today they are scrambling invest in programmes that deliver better paid, volume bought and underlying

20 Landscape SA • Issue 113 2022