Guest Post by: Tumi Frazier, founder of Tumi Frazier International
With South Africa currently experiencing tough economic conditions, high inflation and a difficult monetary policy environment, is it really a good time to start a business? Although the economy is expected to recover and hopefully grow in 2017, times are extremely hard. Corporations are shedding jobs, negotiating lower rates on contracts and spending less due to budget cuts. People are re-evaluating their financial status, tightening their belts where possible and wondering what the future holds.
However, while resources may be scarce, the truth is that the ailing economy creates challenges that require solutions. So, there are still opportunities for start-up companies despite the bleak situation. This is your time to offer new solutions to current challenges in order to revitalize the economy. Remember, fostering innovation is a key factor in contributing to the national GDP growth.
So, how do you take advantage of an ailing economy as a start-up company:
- Listen to customers or clients
- Identify a need
- Develop a strong value proposition – why should people buy what you are selling?
- Offer less expensive, yet still quality products and services as alternatives to what’s currently available
- Operate a lean model and keep your overheads to a minimum
- Be flexible enough to work within your customers’ limited resources as it’s not business as usual
- Consider industries such as retail and other industries where it’s easier to offer discounted rates on a large scale and still do well in the weak economy
If you are brave enough to start a business when everyone is slowing down, you have a chance of succeeding in business in general, as this requires innovation, tenacity, resilience and guts.
Tumi Frazier is a South African entrepreneur, professional speaker, author, TV personality, consultant, and founder of Tumi Frazier International, Tumi Leadership Academy, and Tumi Foundation. Tumi is an internationally acclaimed Leadership and Change Management expert who has worked with high profile clients and organizations across Africa, United States and Europe. Tumi has authored 4 books: Courageous Stories of Inspiration; In the Midst of the Storm; Stepping Stones to Success; and Your Moment. Follow Tumi Twitter | LinkedIn
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