COVID-19 has forced South African businesses to cut down on costs in an attempt to remain liquid over the long term.<\/p>\n
The most resilient companies, however, have mostly been those who spent wisely on the right assets – meaning the old adage of \u201cyou have to spend money to make money\u201d remains relevant.<\/p>\n
\u00a0Discover more advice from RentWorks on:<\/strong><\/p>\n According to RentWorks CEO Kuben Rayan<\/strong><\/a>, however, many companies are wary of taking decisive action on spending at the moment, particularly amidst widespread company closures and retrenchments.<\/p>\n This has led to them either choosing to take a wait-and-see attitude or simply keeping their heads down in the hopes that matters will miraculously figure themselves out.<\/p>\n Rayan believes the key to future growth and success is by being disruptive.<\/p>\n \u201cWe\u2019d rather think through this and disrupt ourselves, lest someone else disrupts us,\u201d Rayan said.<\/p>\n \u201cIf we do get disrupted – by a competitor or something else – we are going to become irrelevant, which is going to be further exacerbated by the current macro-economic factors,\u201d he said.<\/p>\n This means that the legacy ways of doing business are no longer an option.<\/p>\n Rayan notes that businesses will also have to carefully consider what assets they require to grow, particularly from a technological perspective.<\/p>\n Additionally, businesses must find ways to minimise further financial instability by optimising their cash to generate income.<\/p>\n To this end, Rayan explains that financing assets is a sound business option, as customers can utilise these \u00a0in the production of income.<\/p>\n The benefit of this is that the assets keep a residual value and the burden of paying for the balance of the remaining asset value is spread out over time.<\/p>\n \u201cEssentially, you are only paying for the value that you utilise,\u201d Rayan said.<\/p>\n This means businesses can utilise the assets without having to outlay a huge amount of capital and deploy any remaining cash reserves into other critical areas.<\/p>\n \u201cThe bottom line is that capital is spent in the most revenue efficient manner, allowing for growth to follow,\u201d he said.<\/p>\n\n
Minimising risk through efficiency\u00a0 <\/strong><\/h3>\n
Moving forward smartly<\/strong><\/h3>\n