Today is the first day my business can open up properly after more than 6 months of lock down. Luckily we didn't renew our lease on the warehouse and off loaded it at the end of January. That would have put some serious pressure on the finances. My business partner and myself haven't taken one solitary cent over this period instead we invested on new equipment and expanded our factory.
We were chatting this weekend on how long we could have survived like this and the answer was we could as even though our numbers are down we have very little staff and low overheads.
Our competitors around us from what we can tell have been struggling as the orders have not been the same. Most businesses have been open, but running at less than half capacity. This would have cost them more eating up any nest eggs they might have. I see price increases coming as it is an easy way of making back lost profits which we will not do as it is not needed.
To say there is a lot to do is an understatement as catching up and getting ahead before any other lock down is mentioned again. I tend to always think of the worst case scenarios so as to avoid it being bigger than it really is. Urgency and using the time we have now wisely hoping we can remain open for the seasonal months at least. Possibly there will be another lock down at some point like we have seen elsewhere around the world but I think it unlikely.
The harsh reality is that over 30 percent of businesses in South Africa have already gone or are teetering on the edge. Many have made huge losses which if they survive will take them years to recoup back. The bigger more established companies seem to be the ones that have been hit the hardest and this by far has been a test of endurance and how deep your pockets are.
I am not stupid and see opportunities with this right now. Many decent experienced staff are out of work and now is the right time to find someone who can help me capitalise on the business opportunities. Someone who has contacts and years of experience in my industry is what I need right now. Expanding and growth is what we need and I know I can only do so much on my own up here.
Having two heads in the game is not something I wanted, but I believe it is now the right decision. Most experienced staff in the industry will pay their own way with the businesses they know already as those accounts will follow them. Giving someone the chance to shine with a factory backing them is not something many will turn down. There are a limited number of factories around the country as most in the industry are wholesalers and middlemen.
I have always said that I believed the bigger accounts were mainly corrupt and was approached by someone I know who is not in the packaging industry. He is a friend of a buyer who wants his mate to supply him. Not kosher, but who am I to say no as it is good volumes even with a sweetener added in. This makes me sick as business shouldn't be like that in my mind yet it is common practice. It is no wonder some of these big companies are feeling the heat right now with added hidden expenses on their purchases.
I came in thinking I could change the industry by being smarter and more open in our dealings. This has worked out in some ways and hoping it will win in the end as I still feel that is the only way. I know once I am in a big account and supplying them I will have them for life with the way we work and operate.
