CAPE TOWN - Entrepreneurs and small business owners have taken a commercial knock with the unstable economic climate.
South Africa's economic volatility has increased pressure on small businesses who have seen a 62% reduction in consumer demand, according to Xero’s 2017 State of Small Business report.
Significantly, despite the unstable economic climate, 40% of individuals anticipate growth over the next year.
Added to these entrepreneur's ambitious and hopeful spirit to overcome the current turbulent time, we provide 3 useful ways to boost small business growth:
1. Automate administrative tasks
Small businesses administration is crucial as it indefinitely keeps a business afloat.
With that being said, it is important to manage administration of a business.
Although this is time-consuming, business-owners can now automate their administrative tasks.
Routine tasks such as issuing invoices and hounding clients for payment can now be taken care of with a click of a button.
2. Be careful managing money
This is self-explanatory, especially during tough economic times. A business should always manage money wisely and this is worth repeating.
When small businesses lose their financial grip, they succumb to negative growth and compromise their survival.
A healthy cash flow is the key ingredient for a successful business.
Company owners should strive toward minimum expenditure and maximum revenue.
Managing cash flow is now easier with online accounting software.
Online accounting not only simplifies complex tasks but also minimises the possibility of human error.
3. Invest well
The turbulent economic climate should not stop entrepreneurs from investing.
However, it is crucial to invest wisely as a bad investment is unlikely to yield positive return.
Significant research should be done into how your business can make money.
It is well known that businesses who know how to make their money work, are more likely to grow.
Ventures such as generation marketing or how the company can boost its customer experience with word-of-mouth referrals can generate positive financial growth.
However, these ideas have to be well-thought out as it will eliminate linear and deflated ideas which are only attractive on paper.
Lastly, it is important to bear in mind that drive, a good business idea, and some investment is not enough to make it in this uncertain economic climate.
South Africa’s entrepreneurs need to harness the right tools and technologies to support their ambitions.
- BUSINESS REPORT ONLINE