The South African construction industry has been remarkably resilient in the face of the pandemic, managing to rebound as quickly and effectively as possible. Now, as businesses and individuals alike begin to look forward to 2023, it is essential that everyone starts setting themselves up for success in the coming year. For small business owners this can be a particularly challenging task, as they must attempt to make predictions and plan ahead without having any real guarantee of what the future holds. To that end, taking a proactive approach is recommended: planning thoroughly and investing in contingencies will help to ensure that SMEs are ready for whatever lies ahead.
Furthermore, expanding their reach beyond local markets and diversifying their activities can also help them weather any potential storms down the line. As part of this process, it is important for SMEs to focus on gathering information about current trends in order to assess where best to invest their resources and how best to take advantage of any opportunities which may arise.
Staying informed about changes in regulations and relevant technologies is equally important – being able to quickly adjust operations or processes based on new information can be invaluable during times of uncertainty. Finally, it is vital for SMEs to maintain good relationships with suppliers and other partners so that they can benefit from increased efficiency or cost reductions when it comes time for them to purchase materials or services needed for operations. Ultimately, by taking these steps now small businesses will have set themselves up well ahead of time for whatever might come their way in 2023.
A recent report painted a positive outlook for the construction sector. It found the sector would stabilize at an annual average growth rate of 3% from 2023 to 2026, supported by investments in transport, renewable energy, housing, and manufacturing projects.[1]
“Growth over the past 11 months was largely supported by the restart of projects that were delayed due to the pandemic and its restrictions, together with an increase in the number of building plans passed in 2021,” says Tom Stuart, chief marketing officer at SME funding provider Lulalend. According to Stats SA, the total value of recorded building plans passed by larger municipalities rose by 28% year on year.
Stuart says SMEs need to be ready to tap into the opportunities that exist in the coming months. A key aspect of this forward planning is securing one’s cash flow, and this includes both the December shutdown period as well as the year ahead once you reopen in January. Access to working capital allows SMEs in this industry to cover fixed costs and overheads while the business shuts down over the holiday period.
The appropriate capital levels will also help increase opportunities for small and mid-sized construction businesses. They can then better grasp opportunities created by diversification, for example, when a company decides to tap into the solar energy and renewables market.
“Small construction businesses are under renovation and need access to funds that will help them adapt and grow. They need this kind of financial access within days and not only after a drawn-out application process. This is why we offer SMEs the opportunity to get funding which only requires repayments starting in January.”
Lulalend is offering SA’s manufacturing businesses a repayment holiday until 11th January 2023. You can apply online for up to R5m of working capital, and if you do so before the 18th of December you won’t have to start repaying until next year.
The application process is fully online and paperless, requires no collateral, and Lulalend offers flexible repayment terms with no hidden fees.”
“It’s essential for small construction businesses to have access to a reliable line of funding that enables them to plan for future growth with confidence while being able to face any challenges that may arise,” says Stuart.
[1] https://www.businesswire.com/