Two and a half years after the start of the Covid-19 pandemic hit the South African shores, we can see an almost full recovery.

Some industries collapsed when the South African government shut down the country to contain the spread of the virus.

Industries hardest hit

Cape Town is filled with companies that rely on the tourism trade to make a living. The Covid-19 pandemic hit anything involved with tourism hard. Everything from lodges, activities, and restaurants suffered as a result.

Many businesses did not survive. If the company was already reeling concerning cash flow, the pandemic was the straw that broke the camel’s back.

 Cape Town shed more than 100 retail businesses in 2020 alone. The companies that still needed to pay for rentals and amenities when they could not trade ended up closing down. If the business has an understanding landlord, it stands a better chance of survival.

According to Business Insider, by the third quarter of this year, 98% of the Cape Town retail businesses are running again, and the expectation is a full recovery by the end of the year.

As the tourists return, the business community that survived the pandemic can pick up the pieces and ensure they can offer a world-class service to the visitors to the city.

Critical factors to surviving the pandemic

Critical aspects of running a business can ensure success, even in the throes of a pandemic.

A healthy bank balance and cash flow

A well-run business will always ensure that they have a slush fund for the quiet months or in the event of an emergency. The companies that only survived on a month-by-month basis, or even worse, relied on loans, overdrafts, or the like, battled.

Quick actions by the management team

You have to be able to act fast. In the first two weeks of the initial lockdown, many companies had already completed the furlough program for staff. The financial situation did not worsen unnecessarily by acting fast for lack of action. Large corporates often take too long to make decisions based on their red tape.

Change your business model and pivot to a demand-based service or product

A great example of companies that could make a fast change, like Netflorist moving from delivering flowers, to delivering groceries, ensured that the staff and business could continue in some shape or form. For more tips on getting your business back on track, read here:

Bizcash is a South African business that supports and grows SMME’s with alternative funding options. Please speak to our team to find out more about how we can help your business remain in business, through the tough times. Get in touch with us on 0861 93 93 93 or email us on info@bizcashscf.co.za or contact us here.

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