Smart ways to be business smart in these hard times

The policies of the day and their impact can be observed in how businesses are performing, such as declaring profit warnings, issuing redundancy notices, scaling down production, and opting to outsource, close down, or relocate altogether.

With the government aiming to widen the tax bracket, we’re likely to see more layoffs, pay cuts (which won’t make sense to cushion inflation), hiring freezes, and so on. However, being business-smart matters, and here are a few survival tricks:

Rent sharing

Recently, posters have appeared on windows and doors of business premises advertising vacant spaces. In some instances, to cut rent costs, businesses are relocating to different locations. It’s no wonder there are posters on former buildings informing customers of their new addresses. Businesses that once occupied large, spacious offices - even entire floors - with equal staff numbers, are now operating from smaller offices with skeletal staff. Their new locations may not be as central as before, forcing customers to seek alternatives elsewhere. 

But how about co-sharing space with another business entity to retain loyal customers and save them the hassle of searching the entire town for you? This would save on rent, especially since housing levy taxes have forced landlords to pass these down to tenants.

Remember, you could be the anchor tenant, with other businesses offering auxiliary services or goods to complement what you’re offering. It’s no wonder that when anchor tenants leave, others follow, leaving premises almost vacant.

Innovative ways of doing business

The business may have been operating for years without expanding or diversifying its portfolio. There’s a high probability that the methods used to derive income have no place in the ever-evolving market. While you may expect customers to keep coming, a new market entrant could disrupt your segment.

For example, supermarkets and retail chains conduct aggressive marketing, cutting customer inconveniences related to logistics. Previously, it was rare to see vehicles branded with a brand’s colours and logos delivering goods to clients, but now it’s become the norm. The same applies to brands like Koko, delivering fuel directly to customers’ doorsteps.

Why not, for example, allow loyal customers to take goods on credit and repay after resale, or pay a fraction upfront and the balance after resale? This would facilitate stock movement and save on promotion, clearance, or flash sales for overstayed stock. How about using brand ambassadors to influence your business through marketing? Additionally, invest in social media marketing to expand the customer base.

Be in sync with the market

If you’re struggling to break even, it may not be because of a bad business model or inadequate customer service, but rather a lack of alignment with current market dynamics.

For instance, if you’re in the print business producing academic materials, and you’ve just published hundreds of copies of guidebooks for a literature book, only for the Ministry of Education to announce a replacement next academic year, you’d incur losses.

It’s essential to study how often set books are replaced to avoid losses. Importantly, when a new set book is announced, be the first with guidebooks to beat the competition.

Similarly, what was once considered trendy may now be outdated. If you study the fashion trends of the West and operate in the fashion or clothing business, don’t wait for trends to catch up. Set the trend.Remember, the younger generation loves to make fashion statements or cultivate identities. The once-conservative society that frowned upon “bad” dressing seems to have relinquished the upper hand in preaching morality.

Realign with the realities of the day

As in the print business example, understand where technology is headed. You won’t find the younger generation reading physical novels unless they’re academic material for their courses. They’re more likely to consume content from their phones or laptops. This should encourage you to generate materials that can be uploaded to sites where customers pay for access.

Additionally, with Artificial Intelligence (AI) disrupting careers, ensure your skills are aligned or acquire new skills to survive. Would you rather hire someone trained in AI or train your staff at your organization’s expense? If the latter, how would you feel seeing them leave for your competition across the street?

Learning is a lifelong journey, and you’re never too old to learn new things as they emerge.