Outsmarting the recession Presented by Riana Grobler Niche

Outsmarting the recession Presented by Riana Grobler

Niche markets Franchises Family owned businesses (FOB) Farmers Small Office Home Office (SOHO) Selfemployed professional s(medical, legal, accounting, engineering etc) Selected niche markets simple solutions simple for success solutions for success

Franchise industry • 81% success rate compared independent start-ups. to 25% of • Advantage of Franchising: Huge contribution to employment. • Growing at a rate of 30% p. a. (according to FASA – Franchise association of South Africa). • Growing trend to lower distribution costs & expand the business. simple solutions simple for success solutions for success

Family businesses (FOBs) in South Africa • Approx. 80% of SA businesses • Family Businesses have outlasted governments, nations & cities • FOBs wealth creator all over globe simple solutions simple for success solutions for success

Family business association of South Africa - FABASA • Old Mutual founding sponsor • Mouthpiece for Family businesses in South Africa • Independent body • 1 st President is Fanie van der Merwe of Boplaas – oldest family business in SA – 9 th generation simple solutions simple for success solutions for success

11 point plan How to survive in the present economic climate simple solutions simple for success solutions for success

Firstly Improve your market position/regain market share Consider - Reducing business expenses without compromising on quality. How? • Suspending business class travel; • Replace client dinners with breakfasts; • Sharing office space/relocate to less expensive premises. Cut expenses, not quality of products/services simple solutions simple for success solutions for success

2. Motivate your staff • Imperative to encourage, motivate & reward your top personnel; • Beware of reducing staff only to cut costs; • Have to train new recruits; • Costly exercise in the long run. simple solutions simple for success solutions for success

3. Open discussion with staff Positive spin-offs: • Employees offer advice, • Support & even go extra mile. Inspire staff to work harder & smarter. simple solutions simple for success solutions for success

4. Meet customer needs • Speak to existing and loyal client base; • Continue satisfying their needs. Look for ways to add even more value. simple solutions simple for success solutions for success

5. Marketing strategies • Present client base • Increase marketing efforts – target existing clients • Sell more to them Defined approach allow you to reduce marketing spend in other areas simple solutions simple for success solutions for success

6. Time is money • Develop tighter work schedules • Results-driven schedules designed to • Improve profitability & • Improve sustainability. Never mistake schedules, or activities for achievement John Wooden simple solutions simple for success solutions for success

7. New profit & growth opportunities • Not in line with market needs; • More of the same; • Differentiate yourself; • Create scarcity in an era of plenty; • New cash cows; new niche markets. Your profits may be locked in your stock. simple solutions simple for success solutions for success

8. Cash is King – Debt destroy • Economies are cyclical • Plan for next recession – START SAVING!! • Repay your business debt • Get cash positive “It is not how much you make that counts, but how much money you keep. ” Robert Kiyosaki simple solutions simple for success solutions for success

9. Trust yourself • Keep your faith; • Believe in yourself; • Believe in your business; Always keep a positive attitude!! simple solutions simple for success solutions for success

10. Look at the big picture • No room for the small-minded Singer, Loretta Lynn nailed it when she said: “You gotta be first, best or different. ” simple solutions simple for success solutions for success

11. Consider assistance • Specialist consultants: • Accountants; • Business consultants. • To identify problem areas; • Provide solutions to challenges. Acknowledge your problems & seek solutions. Your business is worth it! simple solutions simple for success solutions for success

Conclusion • You hold the key to the success of your business. • Think big! Believe in yourself & in your business & you will not only survive, but thrive into the future!! simple solutions simple for success solutions for success

Thank you Riana Grobler rgrobler@oldmutual. com simple solutions simple for success solutions for success