COVID-19 – The responsible SA Business Response

[Blurock]

Is there anyone who can offer advise on a way forward

Try and avoid any form of finance that will incur additional interest. Avoid buying anything on a credit card where you will incur the highest interest possible.
Make arrangements with suppliers to extend (interest free) credit.
Offer special discounts for early settlements, which is a source of cash flow for the short term.
(If you have the financial means, you may also offer to pay your creditors early and get a settlement discount.)
If there is any payment holiday, take it, as cash flow will be very important in the next few months.

Make arrangements with staff to take a temporary reduction in salary (remember to cut back on your own salary and expenses - it works both ways)
Assist staff in applying for UIF or other assistance offered.

Follow up on leads and old customers. That is why companies have "annoying" reps. To remind you that they are still there.
Be the rep for your company.

I am sure the Forum members can add much more and can come up with some novel ideas.

[Gaynor]

I am honestly really scared. I'm still working, but my business has just about died. And my husband's employer (he's a buyer in a manufacturing company) was already in trouble before it began and hasn't paid full salaries since January, which means we already cleared out most savings.

Any suggestions? I'm marketing my business flat out - but I'd appreciate any words of wisdom as to how we are going to get through this.

[Theodore]

I am honestly really scared. I'm still working, but my business has just about died. And my husband's employer (he's a buyer in a manufacturing company) was already in trouble before it began and hasn't paid full salaries since January, which means we already cleared out most savings.

Any suggestions? I'm marketing my business flat out - but I'd appreciate any words of wisdom as to how we are going to get through this.

Hi Gaynor. Your fear is understandable. There are a lot of business owners who feel exactly the same as you do right now. What kind of business do you have? And what options have you looked at thus far?

[henry226]

Covid-19 will render so many people bankrupt than it will kill!

[adrianh]

Covid-19 will render so many people bankrupt than it will kill!

Agreed - yet the banks don't do anything useful - they just rake in interest and fees while their customers sink in a domino cascade of failure and debt. I think that the banks are THE WORST bunch of PIGS in this entire affair.

[ians]

Another 2 weeks ...what a bonus... i was running out of time trying to finish off all the home projects... with only 7 days to go i would never have finished everything... another 2 weeks ...i should get a lot more done.

My veg garden is producing everything from lettuce to mint to carrots you name it... we have so many avos we eat them for breakfast lunch and supper... the monkeys came through today... they cleared out all the ready papaya ...i dont mind sharing with them... so long as they dont come in the house.

For me this is just another hundle in the road... so long as i can stay healthy ...nothing will put me down... i have endued a lot worse... including limping around for 2 years after a bad motor cycle accident which left me physically challenged ...i lost the use of my right arm for a couple years... i just made a plan and got a youngster to work with me (as my hands)...then many years ago ...business just didnt get momentum from the beginning of the year... by April my electricity and water was cut due to non payment... i was jobbing during this time but the work just wasnt paying all the bills... collected water out the temp. pool ...boiled the water on a 2 plate gas stove i bought ...so that we could have have warm food and hot water ...eventually 8 months later i got a nice job ...worked 20 hours a day for 2 months ...made enough money for my efforts ...settled every single debt and carried on like nothing had happened.

Why i am sharing this with you ...many people are going to experience hardships... my advice to you ...buckle down... protect your family at what ever cost... dont pay bills until you are forced to ...this whole keep the economy going bullshyte is not going to feed your family when shyte gets real... the government are still drawing wages ...even thought they have forced yu into this situations ...promising the world to everyone...nobody is going to feed your family when the shyte hits the fan....make sure you have a stash of funds in a safe location... right now your health is your number one priority ...without it you are screwed.

The most difficult part is having to take that step back ...you get so use to a lifestyle and the luxuries... loss the expensive which will not directly affect your family ...screw paying school fees if you just cant afford it ...or the insurance... pay what is going to directly affect right now ...who knows what is going to happen in 2 weeks or 2 months or 2 years ...nobody knows.

If you were one of the few people who has a little stash for a rainy day ...lucky you ...ther eis a good chance you are already prepared for what is to come... lets hope it is not hail.

[ians]

Agreed - yet the banks don't do anything useful - they just rake in interest and fees while their customers sink in a domino cascade of failure and debt. I think that the banks are THE WORST bunch of PIGS in this entire affair.

You must understand you are a number in a money making system... nothing more nothing less ...you pay you get ...you stop paying they take.

This is the part that makes me laugh... i dont pay my TV license for 10 years (the ex took it with everything else) ...the sheriff arrives at my door to collect ...he walks around to see what he can attach ...hands me the list ...i ask him why there is everything except a TV on the list and why he should take all this stuff for something which is not even in the house? ...the TV ... I take out the document which i got from the police station to say that nothing in the house belongs to me personally ...ooops... I did offer to give him a TV if he could find one on the property.

My point ...they will take your house and sell it for R50 to cover your outstanding balance on your credit card ...if you are going to fall into a deep hole in the next few month ...get smart and understand the rules of the game ...before debt collectors and the rest of the rats come scavenging...they are bullies who take advantage of people....by the way change your number if shyte really gets bad ...because they will harass you till you eventually give in... dont be conned by debt relief companies they are just as bad as the rest of the scavengers.

IF you are going to loose you vehicle ...never sign the release document the collection agent requests you to sign... make sure you read it properly ...all you are doing is signing to say you will be liable for the outstanding debt once they have unloaded the vehicle at an auction....then they start harassing you again within 2-3 months.

[adrianh]

There is a far wider problem to consider with banks - business is a large domino game with little businesses underpinning larger businesses. When lots of small businesses fail they take large businesses down with them due to the knock on effect of bad debt. If the banks allow small businesses to fail it will increase their own exposure as larger businesses up the chain fail one after another.

Banks should be supporting small business as well as large business now.

[AndyD]

Banks know they'll get bailed out if things go sideways, they always do.

[adrianh]

I think that Capitec is going to be hit very hard - they've already been bailed out a couple of times and their main business sector is the low income wage earner. The big banks are immune as you said and they don't care whether their customers make it or not.

[ians]

Wow a 33 % drop in their salary ...a mere R66 000.00 of their R200 000.00 salary ...i would be too embarrassed to insult the very people who pay this ridiculous amount of money to me... as they sit at home with a 100 % wage cut until we can scratch and beg for a few pennies to get by.

Please correct me if i am wrong ...dont forget all the perks... houses ...cars ...security... still on top of this crazy amount of money in country where people are starving on the streets...on a normal day ...before they they made the decision to prevent the working class from earning a living wages.

Anyone have a breakdown of why it is necessary for a public servant to earn this kind of money?

[ians]

Something i noticed as this year rolled into February ...how many people were already complaining about the lack of work... one of 2 things is going to happen at the end of the lockdown ... either the industry is going to take off with a bang and there is gonna be so much work we are not going to know what to do with ourselves ...or people are gonna hold onto their money and the market is just gonna keep diving ...which is also not a bad thing ...as companies go bust

Property will be cheaper to buy...as the banks try to salvage losses.

Rent will be cheaper...as tenants leave due to non payment.

Equipment will be cheap to buy as companies try unload stuff to survive.

There will be less competition ...so we can start charging more realistic rates.

So it is not all doom and gloom

[Derlyn]

Wow a 33 % drop in their salary ...a mere R66 000.00 of their R200 000.00 salary ...i would be too embarrassed to insult the very people who pay this ridiculous amount of money to me... as they sit at home with a 100 % wage cut until we can scratch and beg for a few pennies to get by.

Please correct me if i am wrong ...dont forget all the perks... houses ...cars ...security... still on top of this crazy amount of money in country where people are starving on the streets...on a normal day ...before they they made the decision to prevent the working class from earning a living wages.

Anyone have a breakdown of why it is necessary for a public servant to earn this kind of money?

Imagine that ? Instead of 6 bottles of french champagne a week .... only four. I feel so sorry for them. Not nice to sukkel.

[Derlyn]

Something i noticed as this year rolled into February ...how many people were already complaining about the lack of work... one of 2 things is going to happen at the end of the lockdown ... either the industry is going to take off with a bang and there is gonna be so much work we are not going to know what to do with ourselves ...or people are gonna hold onto their money and the market is just gonna keep diving ...which is also not a bad thing ...as companies go bust

Property will be cheaper to buy...as the banks try to salvage losses.

Rent will be cheaper...as tenants leave due to non payment.

Equipment will be cheap to buy as companies try unload stuff to survive.

There will be less competition ...so we can start charging more realistic rates.

So it is not all doom and gloom

Unless you have a contract with a supermarket ( they are about the only one's making money at the moment ) I'm afraid we are in for a very tough time.

Most of the normal clients will find themselves in the same position as ourselves ( out of pocket with very little, if any, cashflow )

Sorry to be the bringer of bad tidings, but we need to be realistic.

Tough times ahead, I'm afraid.

Cheers & peace out ... Derek

[Theodore]

LOCKDOWN DAY 18 REFLECTION

How do you build a strong mindset?

Right now, arguably an even greater challenge than COVID-19 for most people, is the mindset challenges that they are struggling to deal with. Many people are mentally crippled by fear, anxiety, worry, maybe self-doubt, and various other limiting beliefs triggered by the lockdown situation.

What this does is that it distracts you from focusing on your vision, goals and anything else you want to achieve in your business, career or life.

It is thus imperative that you learn how to build a strong mindset to withstand the negativity and negative influences bombarding us at the moment. Here are a few tips to build a strong mindset:

1. Develop daily mental disciplines such as meditation, gratitude, visualisation, writing your goals down.
2. Listen to motivational messages daily.
3. Avoid negative influences, especially in the first 20 to 30 minutes after waking up.
4. Get regular exercise and watch your health.
5. Develop yourself.
6. Get a professional coach.
7. Develop technical mastery in your field.
8. Be consistent.
9. Be patient.
10.Stay in the hunt.

I hope this helps someone who wants to focus on something constructive and positive, rather than be hamstrung by the challenges and negativities out there.