Businesses are very fundamental to Uganda’s economic growth. Many these of businesses in different sectors are however downsizing their operation cost budgets. Their owners are on tenterhooks to ensure they survive, amidst the recession the country is experiencing due to the outbreak of the Covid19 pandemic.
The good news is most of the businesses are operated by entrepreneurs who will do what it takes for them to survive.
The following are some of the actionable tips that can be implemented by the business owners to survive the 2020 recession;
Adjusting to the prevailing supply and demand models in the market place
Businesses must adjust to these economic models according to what is prevailing in the market. Many people have been out of employment which means they have low capacity to spend thus a drop in demand for most of the items. Business owners should therefore think of reducing the prices of their commodities without any hesitation and offer discounts if they want to remain as market players.
From the spectrum of supply, businesses should be able to cut down on the quantities supplied to match with the prevailing demand. Agriculture products such as milk and plantain have been overwhelming the market with a lot of supply. What farmers and other stakeholders in the sector should do is to add value to these produces such as making plantain flour from the plantain and setting up state of the art storage facilities to curb the excess supply.
Become valuable to the market
Availing better quality products than other market players can make one’s business stand out, and if the commodities are affordable, being a monopolist is inevitable. Safe boda has been able to monopolize the boda boda industry by adding a twist to its niche of production; on top of being a company with boda bodas that carry passengers, they have been able to ease grocery and fast food shopping prior and post the lockdown by featuring a variety of shops and restaurants on their app.
One can add more value to his business by equipping his employees with more skills especially those can help the business fully satisfy its customers. With the outbreak of the pandemic, many hotels and other accommodation facilities should be in position to equip their employees especially those in the house keeping department with extensive sanitary protocols to curb the spread of COVID19, making the business attain a competitive advantage.
Identify the available opportunities
Since many people are out of employment in very many sectors, this could be an opportune time for other businesses to employ. The cost of employment will be low because very many are desperate for jobs to be able to put food on the table.
Interest rates on loans from banks and other financial institutions are also likely to be lowered to support business growth, an opportunity that can’t be overlooked.
The Ugandan government is also urging business owners from the worst hit sectors to register for an interest free funding that will enable them get back on their feet post-lockdown.
Offer complementary services
A complimentary service is one that is offered alongside a product to help with the product acquisition, usage or even maintenance. Free transportation offered to customers especially those who buy in bulk can be such a great act that will always bring back those customers to your business thus stimulating sales.
Many restaurants today such as Circuit Lounge in Kololo are offering free face masks to their customers in the global fight to curb the spread of Covid19.
Focus on things that bring revenue to the business.
By increasing sales and marketing, revenues can be realized. Extensive marketing makes people aware of the available products thus an increase in sales and inquiries about your products.
Extension of your geographical market can increase on your sales as well. With many social media business platforms such as Facebook for business, instagram and twitter, you can be able to reach many people regardless of their geographical location. These interactions can help you understand your market better for future prospects such as opening up branches in those areas.
Renew old client relationships.
It is easier to sell to an old customer than finding a new one. Develop a marketing program that will communicate to the old customers to inform them about your new and already existing company products. Ask your old customers for referrals and make them feel as valuable.