Bearing the load-shedding as an SMME

© Scott Betts – 123RF.com

According to Sanjeev Orie, CEO of FNB Business Value-Adds, businesses need to explore alternative measures to minimise the impact of load shedding. "Whilst the majority of big businesses may have contingency plans to minimise the impact of load-shedding, the same cannot be said for most SMMEs, as they do not have adequate resources.

Measures to minimise impact of load shedding:

• Familiarise yourself with the load-shedding schedule: Understanding when and how long your area will be affected will help you plan accordingly so that you are able to coordinate your energy needs. Load-shedding schedules are available across municipal websites as well as the national energy supplier; make it your business to have one at your disposal
  
• Invest in a secondary energy source: Buying a generator could be a useful investment for your small business, especially if you are in the retail sector. Retailers may need to use surplus income generated during peak business periods to satisfy their energy needs for the year ahead
  
• Maximise retail spaces: If your business operates in a retail centre such as a shopping mall, explore sharing generator costs with other small businesses so that the financial burden is not heavy on your business. Work out an arrangement that will not have a major impact on each of the businesses' cash flow
  
• Cash-up at a suitable time: Waiting until close of business before cashing up could be risky, especially if you have no back-up power. Keep less cash in your register and if possible, encourage clients to use bank or loyalty cards to limit the risk of handling cash
  
• Explore opening for longer hours after load shedding: If you do not have back-up power, consider extending operating hours to recoup some of the business lost during load shedding. There is obviously a lot that goes into making such a decision but it is important to explore such a plan.