How Small Businesses Can Reset for 2022

Welcome to my final #ElewaAfricaThinking newsletter for 2021. Subscribe here to have new editions of the newsletter sent directly to your inbox.

Who’d want to be an entrepreneur or small business owner right now?

COVID-19 has changed the economy dramatically. In South Africa, GDP is down sharply, and unemployment is at an all-time high. I know of numerous small businesses that have been forced to close this year. Those that have survived have had to adjust to a different business climate, a world of remote and hybrid work, and clients who are spending less but wanting more.

But, to answer the question: Me! I’d absolutely still want to be an entrepreneur. I still want to surround myself with entrepreneurs every day. Their energy is infectious, their ability to recognize and conquer challenges unrivalled. We know small businesses are the largest employer in practically every country in Africa, and the engine of our continent’s economy. And thankfully, there are millions of people across Africa who feel exactly the same way I do.

So as 2021 draws to a close, what advice could I possibly give to small business owners? What have I learnt this year that is helping me mentor the many small business owners I talk to every day? What can business owners focus on? What should they start doing, and just as importantly, stop doing?

Here are six things I think you can do now to hit the ground running in 2022:

Prepare for a future with COVID

Let’s not fool ourselves. COVID-19’s not going away any time soon. But it’s been around long enough for us to have a baseline for how the world works in a time of pandemic. Think about how you can build a sustainable small business with the future in mind. Where there are problems, there are solutions. Look for opportunity in the mayhem.

Review your business plan

Take time over the festive season to think, evaluate and refocus. Even the smallest business should have a business plan that you update as market conditions change. And if ever there’s been a time when conditions have changed, the past couple of years have been it. Right now, forecasting and planning should be something you do almost monthly. Keep it simple – in product, in process, in go-to-market. Be obsessive about the costs of acquisition and retention. Get the basics right.

Forget about the old rules

I’ve been saying this since 2013: when digital stops being a thing, it becomes everything. As an entrepreneur or small business owner, you can’t be doing things in old ways and expect to succeed in the digital economy. Everything today is about the consumer. They call the shots, and you need to make it easy for them to find you and use your products and services. Recognize who you are serving, and find ways to be essential to your customers.

Know who you are and what you’re good at

Everyone has strengths and weaknesses. You can’t be good at everything, or do everything yourself. I love to see entrepreneurs who are prepared to learn, but in general, you should be spending most of your time in 2022 playing to your strengths. Can you partner with someone who has better efficiencies in certain areas? Is what you do complementary to another business? As we move into 2022, find ways to become part of the ‘sharing’ economy.

Do the hard work

Do the admin often and early. I call these tasks the ‘industrialized’ part of your business: the tasks that are repetitive, but necessary. Get them done with the least amount of fuss possible. Your primary job as an entrepreneur or small business owner is to align yourself to tasks that ‘move the needle’.

Price right

This is an area where I see many small businesses getting it wrong. Don’t underprice: you must know your worth and your value. Don’t scale on freebies: it’s just not sustainable. Never, but never, accept exposure as payment. It doesn’t pay the bills.

Finally, take the time to recognize what you and your business have achieved this year. Savor your successes. And get ready for 2022 – I know it will be memorable!

Thank you for engaging with me in 2021! I’m certainly excited for 2022… and beyond.