2010: small business 'can score'
11 September 2009
South Africa's small, medium and micro enterprises (SMMEs) must plan well if they are to benefit from the 2010 Fifa World Cup, Old Mutual said on Thursday.
"The capacity to balance supply with demand when some 500 000 foreign soccer fans converge on our country's shores for next year's soccer World Cup spectacle will largely determine the level at which South African businesses will be able to capitalise on the event," Andre Diederichs, Old Mutual's SMME specialist, said this week.
With a potential injection of an estimated R55-billion into the economy, business owners would have to make fairly accurate projections if they wanted to claim their piece of the action from the once-in-a-lifetime business opportunity, Diederichs said.
"With no blueprint outlining the needs and budgets of visiting soccer fans, business owners will have little idea of what to expect from the single largest sporting event on the globe."
Enthusiastic business owners might over-expose themselves financially by investing in too much stock or supplies and find themselves with dead stock at the end of the tournament. On the other hand, those who were overly cautious might under-cater for the event and miss out.
Diederichs advised business owners against investing in huge supplies of stocks by optimistically assuming their entire offering would be snatched up by foreign shoppers.
"One way to manage stock levels is through prior arrangement with suppliers to be on stand-by, even after-hours, for sudden shortfalls in your business – whether it be a restaurant, gift shop, small retailer, or other business," he said.
He said it was better to pay a premium for stocks delivered after-hours than have stocks that were not selling.
Business owners wishing to capitalise on the World Cup should familiarise themselves in good time with the fixtures to be played in their city and plan around them, Diederichs said.
They should also draft an action plan on how to maximise opportunities for their businesses.
"Ensure your marketing efforts reach the soccer audiences, and be fair – don't over-charge your foreign patrons just because of favourable exchange rates," he said.
Diederichs advised SMMEs to train their staff in good time, improve their professionalism, and explain the business's expectations to them.
He said SMMEs should not infringe on Fifa trademarks, as they might then be liable for prosecution.
Sapa
