At long last, the second biggest informal sector in the world is reopening!
This is good news although there is a catch….formalise your operations! Have you registered yet? Are you in compliance of local laws and regulations?
The costs of non compliance
- Running battles with the police
- Lost business when you engage on a temple run with authorities
- The opportunity cost of fines
- Little growth and being overtaken by those registered
So formal registration should be on top of your agenda and we will be promoting members involved in company registrations such as Kudzi Mafuta, Maxine and more…
Renting Premises or Online Businesses
You have to seriously consider whether to operate in the CBD or maximise on Online Businesses.
Bricks and Mortar Buildings: This is what has always worked in the past-proven business model. Most customers are used to experiences of seeing the goods they want to buy, who is selling them and the experience of seeing others buying too.
The drawback is getting into town is going to be a hustle for business owners and clients too. You should have witnessed it by now-long queues of passengers waiting for ZUPCO buses and kombis. The long winding queues of vehicles at most fuel stations should be a reminder that travelling in the current environment is a huge challenge. For big cities, transport is going to be a big headache but small cities where many can walk into town; they may not be adversely affected.
Online Businesses: Numbers do not lie, latest figures of internet activity shows an upsurge in online activity across the globe. Even on our forums, we added 10,000 members during the first 30days of the lockdown-a number we used to get in 12 months. Having no presence on online platforms is a literally a cardinal sin. The nation has moved online and being absent means a large chunk of lost business.
You will benefit from the transport inconveniences if you have an online business located in your suburb specific area. Take for example online businesses in Chitungwiza. Clients will have to calculate the transport inconveniences of travelling to the CBD versus buying local.
We compiled as easy to read book on Digital Marketing which we feel should be on the book shelf of every entrepreneur. The E-copy is available for US$1 or RTGS Equivalent of 60 Bond.
Mixture: I would not advise small businesses to totally abandon business premises and fully go online. You may still have clients who prefer buying from your premises-do not lose them!
Carry out an analysis of who they are, capture them and encourage them to join your online business platforms such as Facebook, Twitter, Instagram, Whatsapp and Telegram. If you do not have a website, the time to invest in one is now!
In your financial statements, record brick and mortar revenues versus online revenues. Calculate profits too for each funnel. Use this evidence for decision making on whether to maintain business premises or close.
If online business is more profitable, then consider downscaling physical premises but you may still need small space for goods collection by clients.
We wish you all the best and do not forget to join our Social Media platforms especially Suburb Specific Whatsapp groups.
