There is strength in unity, we need to rediscover it

At the beginning of the Lord of Rings film trilogy, the narrator framed the trilogy with the line: the world has changed.

In hindsight, those words now seem a bit prophetic. While not as cataclysmic and dramatic as the change described in JRR Tolkien’s epic, COVID-19 has changed the world as we know it. It has changed social dynamics, economies and the way that companies do business.

COVID-19 has also introduced heightened anxiety at home. On March 26th, in an effort to contain its spread, President Cyril Ramaphosa implemented a nationwide three-week lockdown. This was later extended for a further two weeks, bringing most of the economy to a grinding halt until the end of April. This unprecedented decision was taken to give us time to prepare and slow down the rates of transmission.

This has seen workers throughout the country, many of whom are business owners, forced to stay at home and try to make sense of what the future may bring.

Vulnerable sectors

While the mining, agriculture and manufacturing sectors are the main pillars of South Africa’s economy, the role of SMMEs in our economy cannot be underestimated. South Africa is known as an entrepreneurial country and the informal trading sector is massive.

South Africa is starting to make strides towards the gig economy, and Ramaphosa’s plea for companies to go online, if they can, has been headed. However, the reality is that not every company can achieve this with anything approaching simplicity. Some cannot achieve it at all.

The economic impact on these companies is significant. While we have heard stories about big corporates facing possible financial ruin, imagine the impact on small business.

For business owners who work as street vendors, own beauty salons, nail bars and day spas, business ground to a halt on 15 March as the schools closed and social distancing measures were implemented.

This sudden change also affected informal traders and spaza shop owners, many of whom are not South African. These business owners don’t only face the constant fear of renewed xenophobic violence, but they cannot apply for any relief as such funding is only available to companies that are 100% South African owned.

Perhaps the biggest impact has been seen in the restaurant and fast food industry. Restaurants and fast food outlets were completely shut at the beginning of the lockdown and face an uncertain future as there is no guarantee as to when they will be allowed to resume business as usual, as even after lockdown is eased many patrons will be practicing social distancing for a long time to come.

The tourism sector also plays a major role in the economy. Travel – internationally and domestically – has ground to a halt during the COVID-19 crisis and those who own travel agencies face a very uncertain future.

The way forward

We cannot be complacent and simply hope for a rapid economic recovery from the COVID-19 crisis. There is a long road ahead.

However, there is an ancient Chinese proverb which says that the journey of a thousand miles begins with one step. Government can ill afford to extend the lockdown much longer than it has already without completely crippling the economy. It is now time for companies – especially small business owners – to get back into business mode.

Life following COVID-19 will be different. Even bricks and mortar businesses will be forced to evaluate which processes they can move online. COVID-19 has demonstrated that online purchasing and deliveries do work, and companies should be looking to move those processes online.

Companies will no longer hold massive amounts of stock and business owners will need to be brutal when it comes to cutting the fat and getting rid of product lines that are underperforming.

Unfortunately, labour relations will inevitably suffer as companies try to recover from COVID-19 and these strained relationships will need to be carefully managed. The reality is that some companies will not be able to have the same amount of employees that they had before.

Perhaps this crisis will spark a necessary revolution when in customer service in South Africa. If suppliers cannot live up to their promises, companies will be brutal in their treatment of these suppliers. All parties will be looking to put their best foot forward.

Communication is key

Communication during a time of crisis is key.

There is no “Public Relations for Dummies During a Global Pandemic”, whilst directors are feeling overwhelmed and communication departments are under pressure to deliver an effective communication strategy.

Lola Lazarus, Founder of Bullion PR & Communication points out “this is not a time to go silent, nor is it a time to make a business pitch, but to rather communicate with empathy, taking into account the emotional state of the readers. This is a time when your audience really needs to hear from you and how you too are being impacted by Covid 19.”

“If you are drafting a press release or email targeted at your customers, read it through their eyes and ears”.

A good example of an industry that really ought not to go silent at a time like this is the travel industry, where tourists are concerned about bookings.

Companies may also need to be rebranded or repositioned after this crisis. Bullion PR has worked with a number of the country’s top corporations on brand repositioning which proved effective in the long run.

Saving grace

There is another light at the end of the tunnel. While liquidation and bankruptcy are something that every business fears, it does not have to be a defining reality. Business rescue is an option.

Companies typically file for business rescue if they cannot meet their financial commitments for the next six months. A business rescue practitioner is brought into the business and options are then discussed with the business owner and relevant stakeholders (including creditors) to save the business.

“A business doesn’t even have to get to the stage of needing to be rescued to enlist the assistance of a business rescue practitioner. Some of the services that a business turnaround and business rescue practitioner offer include debt restructuring, crisis management, and advice around changing business models. These practitioners play an important role in the economy as it is their job to try and save businesses and preserve jobs,” said Bruce Berry, CEO of the Turnaround Management Association of Southern Africa (TMA-SA).

Strong leadership

The worst thing that companies can do in this situation is nothing. I am reminded of a quote from the movie Rocky Balboa, it is not about how hard you get hit. It's about how hard you can get hit and keep moving forward. How much you can take and keep moving forward.

This is the time for strong leadership. Business leaders are going to face impossible situations in the coming months, but they need to make decisions that will benefit their businesses and those that rely on these businesses.

It is also a time where communication will play an important role in the success of any business. Communication needs to be relevant, timeous and on brand, effective communication will help to reassure patrons and employees alike. We all prefer to be informed, even if the news is not always good. Again, the value of partnering with a public relations consultancy cannot be underestimated.

This the time when we should be embracing the spirit of Ubuntu and lending a helping hand where possible. Small businesses need to galvanise each other and offer support. There is strength in unity, we need to rediscover it.