Small Business Focus

4 strategies to ensure your business thrives (despite sub-1% economic growth)

Mike Wills (standing in for regular “The Money Show” presenter Bruce Whitfield) interviewed Pavlo Phitidis, Director and CEO of the Aurik Business Incubator, for the weekly small business feature.

Phitidis discussed the following strategies to survive and outperform South Africa’s economic growth rate, expected to be less than one percent:

  • Restructuring costs – core and non-core

  • Building reserves – how much is enough?

  • Automating – what and where to begin?

  • Innovating – what, how and when?

(Also read "Shock absorbers to get your small business through what’ll be a bumpy 2016" and "How to ensure your business survives (and thrives) despite the grim economy".)

Scroll down for quotes from the audio below.

Look at your business before you look at costs. What is it that you cannot let go?

Pavlo Phitids, Aurik Business Incubator

Outsourcing is going to grow as budgets get tighter. It’s a great recession tool that you need to consider.

Pavlo Phitids, Aurik Business Incubator

In good times companies move into non-core areas. When times are tough they let them go. Smart entrepreneurs can move into these gaps.

Pavlo Phitids, Aurik Business Incubator

If you don’t build reserves you can’t absorb ‘black swan events’.

Pavlo Phitids, Aurik Business Incubator

You need to be able to cover your overheads for at least six to nine months. Because the last man standing is going to make a killing.

Pavlo Phitids, Aurik Business Incubator

Consider technology that automates some of your processes. Automation is key during tough times.

Pavlo Phitids, Aurik Business Incubator

Don’t make decisions when you’re feeling agitated and emotional.

Pavlo Phitids, Aurik Business Incubator

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This article first appeared on 702 : 4 strategies to ensure your business thrives (despite sub-1% economic growth)


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