22/06/2020
INFORMATIVE MONDAYS - THE RIPPLE EFFECT. "Local is Lekker" is a business drive aimed at companies supporting each other within the area that they operate, instead of outsourcing their work, thereby creating a symbiotic network in an effort to sustain, especially, SMBs from the blows that have been delivered by both Covid and the lockdown.
These two devastating events have left most companies with the tendency to want to hold onto those 'all important' budget pennies. This could be a mistake! According to Frank Mullen (CEO of ICT provider Zinia), "now is not the time to stop doing business or bring a halt to spending".
This is a natural progression stemming from an uncertainty towards the future, and leaving most of us with the question of securing overheads versus spending. Mullen, however, points out that putting a halt to spending would send out a ripple effect throughout the companies that are normally dealt with, leading to an impact on those suppliers, their livelihoods, and those that they, in turn, support.
We can already see, from the companies that have been allowed to open, that the "ripple effect" is an actuality, but the full impact can only be gauged once all of SA business is back at 100% operation.
On a more positive note, the upswing trend of social media marketing, and it's reduced costs, show a glimmer of hope. Again, though, unless proper digital marketing strategies can be put into place, to ensure that each cent spent is made to work for itself, the saving on the one hand could lead to budget wastage on the other.
It's a fine line that companies will now have to walk, for the foreseeable future, but it is certainly not insurmountable. Perceiving these challenges in the correct manner, and enlisting the help of the correct people, could lead to their coming out of this with a more structured and stable core business, having been forced to cut away "dead wood" and streamline, where possible.
Helping to keep SA business running
Take care, Mandy
Businesses must support each other during Covid-19 crisis to stand together to keep business moving, protect employment and the economy ticking over.