This economic crisis experienced by Ghanaians was a result of both external factors – COVID-19 and the Ukraine war, as well as internal factors like the cedi depreciation, high fuel prices, and bad economic management by the New Patriotic Party (NPP).
Pulse Picks: 4 business tips to aid survival in Ghana in 2023
The year 2022 was a very tough and difficult one for Ghanaians in general due to the economic breakdown the country found itself in.
The economic stress facing the country is also affecting a lot of businesses, especially SMEs. The current economic crisis in Ghana has led a number of small businesses and start-ups to fold.
Pulse Ghana explores some survival techniques to adopt if you are a business, especially SME.
Experts say the status quo is no longer enough for small businesses to thrive and survive.
It is fair to say that SMEs all over the world are thinking of alternative methods to keep operating and/or to minimize cost.
Here are five essential survival strategies for businesses during these trying times and going forward generally. We believe this applies regardless of sector or product type.
1. Protect Cash flow – the only way to ensure cash flow is to protect and minimize unnecessary expenditures. You can also re-negotiate payment terms for creditors and debtors. Remember cash is the lifeblood of every business!
2. Digitize/Virtualize Operations – Digitising operations is one sure way to cut costs. Most of the costs associated with doing business on the continent relate to the loss of productive time as a result of having to conduct business on an ‘in-person’ basis.
3. Collaboration – Collaboration is one sure way of development for businesses. The deficit suffered by most African businesses, vis-à-vis their counterparts in the more developed world, means that no African SME can truly go at it alone.
4. Streamline – Now is the time for business owners to seriously scrutinize their overheads and be disciplined enough to effect the necessary changes where reductions are possible. There must be minimal wastage.
In conclusion, we hope businesses will do the needful to ensure that they are robust enough to withstand future shocks.
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