MOSSEL BAY NEWS - As the effects of the Covid-19 lockdown are felt, with many being unable to work and earn money and many being retrenched or having their salaries cut, people are thinking of new ways to earn a living.
It is a conundrum because it is difficult starting up a new enterprise when the economy is rock bottom and people do not have money to spend on services you may plan to offer.
The Mossel Bay Advertiser sought comment on the economic crisis from financial expert and former chairman of the Mossel Bay Business Chamber, Fanus Truter.
Truter was asked which businesses might do well, now or post lockdown.
He is the director of the George branch of the company, Moore, part of the global accountancy and financial consulting firm. In September last year the name of the company changed from Moore Stephens to simply, Moore.
Truter said: "It's difficult to give an indication which types of businesses will be successful. We're facing a possible monster we haven't seen before.
Protect successful businesses
"The best for the economy is that existing successful businesses are protected, and everything done for their survival.
"The relief packages will hopefully start at ground level, bringing a measure of calm."
Truter advised that every business does a SWOT analysis, assessing its strengths, weaknesses, opportunities and threats.
Looking at Mossel Bay's SWOT analysis as a town, Truter said: "In my opinion, people's spending patterns will change. I'd be surprised if there is not a scaling down of buying luxury goods.
"In the same breath, keep in mind there is the effect that one person's demise can mean another person's gain, so there will be businesses that will still do well or perhaps better than before."
Truter lists the following examples of businesses that will do well:
- Firms within the personal protection products (PPE) and disinfectant sectors.
- Firms which assist in rescuing businesses.
- Liquidators. Truter adds: "We hope it won't happen, but the economy suggests liquidators will be needed."
He says people will be looking at buying less luxurious houses than before and second hand cars rather than new vehicles.
Mossel Bay's strengths
Truter noted that Mossel Bay has a number of strengths:
- We have a good infrastructure;
- Our municipality functions well;
- We are a sought-after retirement area. "There should still be an inflow of retired people who are not dependent on being employed," Truter says.
He notes that although the retirees' investments might have been squeezed by the lockdown, they still have disposable income.
Business opportunities with regards to the retirement market are what entrepreneurs should seize.
Many of the elderly are immobile and business people should ascertain their needs.
Truter said businesses to do with the sea and fishing could do well. He said with lockdown rules gradually being eased, people will be able to go to the sea and enjoy swimming, sea sports and fishing. They can still practise social distancing with these activities.
Drive-in facilities
Bearing in mind restrictions will be in place for a while, there may be a need for "drive-in" roadhouses, churches, concerts and theatres after the national curfew has been lifted.
Families could go out in their cars to a movie drive-in and staff on roller skates and wearing masks and gloves, could come and serve them at their cars.
Mossel Bay has the space for this. There are parking areas near the sea, Truter points out."People really want to start going out again with their families. If every family is in their own car, social distancing can be practised."
Counselling
There will be a need for counselling, life coaching and financial consulting services. It will be important to have business coaches, from whom people can gain advice, especially legal advice on how they should handle creditors and not be declared insolvent or be liquidated.
"Businesses will have to be restructured."
Truter said many enquiries were being made about home schooling, especially by parents working in essential services or working from home and unable to home school their children themselves.
"This is an opportunity for retired teachers to give Zoom classes for about 10 learners so parents can still work, even if it is from home.
Truter predicts that food deliveries will increase and also deliveries of groceries, medicine and computer and IT equipment.
In the near future hairdressers and beauty therapists will do home visits and the installers of computer equipment and printers will be extremely busy, Truter predicts.
Technology training for people working from home will become important.
Truter says many countries could have learnt the disadvantage of an over-reliance on China for products and they could start up more factories to manufacture their own products. Having a harbour could count in Mossel Bay's favour, he concludes.
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