Small Business Focus

4 strategies to ensure your business thrives (despite sub-1% economic growth)

Mike Wills (standing in for regular “The Money Show” presenter Bruce Whitfield) interviewed Pavlo Phitidis, Director and CEO of the Aurik Business Incubator, for the weekly small business feature.

Phitidis discussed the following strategies to survive and outperform South Africa’s economic growth rate, expected to be less than one percent:

  • Restructuring costs – core and non-core

  • Building reserves – how much is enough?

  • Automating – what and where to begin?

  • Innovating – what, how and when?

(Also read "Shock absorbers to get your small business through what’ll be a bumpy 2016" and "How to ensure your business survives (and thrives) despite the grim economy".)

Scroll down for quotes from the audio below.

Look at your business before you look at costs. What is it that you cannot let go?

Pavlo Phitids, Aurik Business Incubator

Outsourcing is going to grow as budgets get tighter. It’s a great recession tool that you need to consider.

Pavlo Phitids, Aurik Business Incubator

In good times companies move into non-core areas. When times are tough they let them go. Smart entrepreneurs can move into these gaps.

Pavlo Phitids, Aurik Business Incubator

If you don’t build reserves you can’t absorb ‘black swan events’.

Pavlo Phitids, Aurik Business Incubator

You need to be able to cover your overheads for at least six to nine months. Because the last man standing is going to make a killing.

Pavlo Phitids, Aurik Business Incubator

Consider technology that automates some of your processes. Automation is key during tough times.

Pavlo Phitids, Aurik Business Incubator

Don’t make decisions when you’re feeling agitated and emotional.

Pavlo Phitids, Aurik Business Incubator

Subscribe to our Business Wrap Newsletter

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Building a business is a bloody sport. An entrepreneur shares lessons learned...

Building a business is a bloody sport. An entrepreneur shares lessons learned...

Pavlo Phitidis and Karabo Songo share lessons they learned from the bloodiest of blood-sports.

Wanna be your own boss? Considering franchising? You may want to check this out…

Wanna be your own boss? Considering franchising? You may want to check this out…

Find franchising alluring? It is! But things can go wrong. Bruce Whitfield talks to a franchisee, a franchisor and Pavlo Phitidis.

Shock absorbers to get your small business through what’ll be a bumpy 2016

Shock absorbers to get your small business through what’ll be a bumpy 2016

Bruce Whitfield interviews Aurik Business Incubator Director and CEO Pavlo Phitidis for his weekly small business feature.

Good news, bad news… Entrepreneurs find opportunities everywhere!

Good news, bad news… Entrepreneurs find opportunities everywhere!

Small business expert Pavlo Phitidis on how to identify and act on opportunities that are everywhere.

Benefit from starving elephants and bears and turn your business into a wild dog

Benefit from starving elephants and bears and turn your business into a wild dog

Elephant-like businesses can’t eat enough in a 1.4% growth economy while bears are in survival mode. Be a wild dog! Here's how...

SA is gripped by negativity. Why then are so many entrepreneurs thriving?

SA is gripped by negativity. Why then are so many entrepreneurs thriving?

The level of grumpiness today is overwhelming, yet some entrepreneurs, both big and small, are achieving phenomenal growth.

Popular articles
Why Sisulu and Dlamini-Zuma aren't suitable Presidential candidates: analyst

Why Sisulu and Dlamini-Zuma aren't suitable Presidential candidates: analyst

ANC branch in the Eastern Cape, Z.R Mahabana, has launched a campaign backing Lindiwe Sisuslu as an ANC presidential candidate.

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

Pamela Nomvete on her downfalls as actress, and 'climbing back'

Pamela Nomvete on her downfalls as actress, and 'climbing back'

This week Xolani Gwala's speaks to former Generations actor Pamela Nomvete for #WhatInTheWorldHappenedTo feature.

[WATCH] New adapted national anthem by students

[WATCH] New adapted national anthem by students

Fees Must Fall activists singing the national anthem with a new melody and phrases calling it a 'decolonised national anthem'.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?