COVID-19 – The responsible SA Business Response

[Dave A]

Even if your industry comes out of lockdown, you can still be hammered by connected party dependencies. For example, given its reliance on the property transfer market, if my electrical company can operate, but Deeds Office doesn't re-open or estate agents can't function and close new deals, the company is still going to be severely negatively impacted.

[ythewait]

Corona-virus is main problem for everyone and a lot of who are face this problem and corona-virus spread is emotionally challenging for people, changing day-to-day life in unprecedented ways. All sections of society – including employers and employees – should play a role to protect themselves and each other and help prevent further spread of the disease. WHO is providing advice and updated information on COVID-19, and on how employers can protect their employees, what measures they should take in the workplace and other related factors.

[adrianh]

Even if your industry comes out of lockdown, you can still be hammered by connected party dependencies. For example, given its reliance on the property transfer market, if my electrical company can operate, but Deeds Office doesn't re-open or estate agents can't function and close new deals, the company is still going to be severely negatively impacted.

Another issue is that the demand side is down too. People are simply not spending their money on luxuries because of job losses and fear of further lockdowns. One of my customers is an international food producer and they say that their local demand is down to 30% of what it was before. They are also heavily depended on various other industries such as custom packaging manufacturers and also logistics and transport companies. It is going to take a long time to get that entire infrastructure up and running.

There is another interesting side to this debate - I was speaking to a friend that supplies an industry that is mostly entrepreneur driven industry (kinda like the make your own T-shirts or mugs sort of stuff) - He said that he just had THE BEST month ever. It seems that people are realizing that they should do something for themselves to supplement their income. His products cost anything between R30k and R200k so people are investing heavily in the future. We spoke at great length and I can see the opportunities in joining forces with him. I think that there is money to be made if one supplies products or services to those who are keen on getting their own home industries off the ground.

[zomes]

Unfortunately, this virus has greatly affected all areas of business worldwide. Time is not the easiest, and many have to survive.

[adrianh]

Unfortunately, this virus has greatly affected all areas of business worldwide. Time is not the easiest, and many have to survive.

I would rephrase this to: "The IDIOTIC over-the-top stupid response to the Covid-19 virus by some governments is destroying many businesses"

[ians]

Trying to be the responsible employer ... getting a little tired of wasting time trying to claim UIF for my emplyees

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[Theodore]

Things certainly have been very difficult and challenging for a lot of small businesses. And I do agree that the response of some governments has not been well considered at all, especially regarding the impact of that response on small businesses. But, shifting focus a bit, what has worked for your businesses during this time, despite the challenges and problems? And what are the top 3 biggest challenges your business has had to deal with since the pandemic and lockdown started?

[Blurock]

Things certainly have been very difficult and challenging for a lot of small businesses. And I do agree that the response of some governments has not been well considered at all, especially regarding the impact of that response on small businesses. But, shifting focus a bit, what has worked for your businesses during this time, despite the challenges and problems? And what are the top 3 biggest challenges your business has had to deal with since the pandemic and lockdown started?

One of the biggest problems is the effect of lock-down on the supply chain. We will experience the domino effect of travel restrictions and closed factories for a considerable time. No use opening your factory if raw materials are not available. Depending on the industry that you are in, you may gain or lose all. The hospitality industry for one has suffered to the extent that some establishments have closed, while others with political connections (although substandard and not fit for human occupation) have flourished.
The demand curve of certain products will fall as people have less or no disposable income and are now just focusing on survival. The ban on imports have forced buyers to source locally. Hopefully, people will now look at the labels and bar codes and continue to support locally manufactured products. South African bar codes start with 600 or 601. Prefix 690 to 699 belong to Chinese companies, but be aware that many global manufacturers such as Nike have a US bar code, but outsource to China or other countries.

One good thing that have come out of this, is that people are now more aware of their environment and also the suffering of people affected. I hear and see stories of people sharing or helping where they can and am amazed by how friendly people in our community greet each other when exercising outside. Previously we just ignored each other without greeting.

[ians]

Its good to see this virus has rooted out a lot of unregistered busineses ... tax dodgers ... companies who have failed to pay over UIF ... People who have been skimming under the radar ... it seems they are working hard to target these businesses and attempting to collect outstanding revenue.

So if you got suckered into applying for relief ... be aware they have the best hounds out to make sure all you are up to date with everything.

Dont forget to pay your UIF