Publications
Partners
Johannesburg - One of the unfortunate results of lacklustre consumer spending is the negative impact on commercial businesses, according to Michael Vacy-Lyle, CEO of FNB Commercial Banking.
During last quarter of 2013, the FNB/Bureau of Economic Research Consumer Confidence Index found that factors such as lost wages during strikes, higher household tax burdens and a slowdown in unsecured lending have been eroding consumers’ ability to spend.
“The current economic conditions demand that commercial businesses introduce convincing measures to position themselves for long-term profitability,” says Vacy-Lyle.
He recommends the following ways to keep your business afloat:
Maximise business efficiency
This simply means making the most of what you have. For businesses which sell consumer goods, the goal should be to keep the customer coming back for more and for those providing a service, the objective should be retention.
A number of elements play a role in achieving this. Some of those include superior customer service, quality products and cost.
Take calculated risks
With economic conditions remaining tougher, it’s always important not to over-expose your business to potentially severe forms of risk.
This certainly doesn’t mean one needs to be conservative, but it’s always essential to take calculated risks.
Organic growth remains crucial
Simply put, grow your business through existing customers. Any form of business has the potential to reap great results through organic growth.
Organic growth could simply be offering more products or services to your current customers or identifying customer trends to improve an offering at a relative cost increase.
Customer remains king
Any commercial business that doesn’t meet the needs of its customers will seize to exist.
Customers are under pressure to do more with less. Therefore, the way businesses structure their offering needs to respond to the customer’s core needs.
Convenience is crucial
If your commercial business has an opportunity to use technology to create convenience for customers, don’t pass up on the opportunity.
A convenient solution is often the most appealing and in certain cases technology tends to play a huge role in enabling convenience.
Vacy-Lyle said these are only a few of the solutions that commercial businesses could adopt to ensure that they remain competitive and profitable.
“Consumers will continue to wield the power due to the direct and indirect economic impact, but there is still an opportunity to succeed as a commercial business,” he said.
During last quarter of 2013, the FNB/Bureau of Economic Research Consumer Confidence Index found that factors such as lost wages during strikes, higher household tax burdens and a slowdown in unsecured lending have been eroding consumers’ ability to spend.
“The current economic conditions demand that commercial businesses introduce convincing measures to position themselves for long-term profitability,” says Vacy-Lyle.
He recommends the following ways to keep your business afloat:
Maximise business efficiency
This simply means making the most of what you have. For businesses which sell consumer goods, the goal should be to keep the customer coming back for more and for those providing a service, the objective should be retention.
A number of elements play a role in achieving this. Some of those include superior customer service, quality products and cost.
Take calculated risks
With economic conditions remaining tougher, it’s always important not to over-expose your business to potentially severe forms of risk.
This certainly doesn’t mean one needs to be conservative, but it’s always essential to take calculated risks.
Organic growth remains crucial
Simply put, grow your business through existing customers. Any form of business has the potential to reap great results through organic growth.
Organic growth could simply be offering more products or services to your current customers or identifying customer trends to improve an offering at a relative cost increase.
Customer remains king
Any commercial business that doesn’t meet the needs of its customers will seize to exist.
Customers are under pressure to do more with less. Therefore, the way businesses structure their offering needs to respond to the customer’s core needs.
Convenience is crucial
If your commercial business has an opportunity to use technology to create convenience for customers, don’t pass up on the opportunity.
A convenient solution is often the most appealing and in certain cases technology tends to play a huge role in enabling convenience.
Vacy-Lyle said these are only a few of the solutions that commercial businesses could adopt to ensure that they remain competitive and profitable.
“Consumers will continue to wield the power due to the direct and indirect economic impact, but there is still an opportunity to succeed as a commercial business,” he said.
