How your business can cope with load-shedding

Over the last few months, various business formations have expressed concerns regarding the overall impact of limited power supply on business sustainability. Significantly, the country’s energy provider continues to emphasise that supply is likely to remain constrained due to ongoing maintenance and pending the completion of the new power station.

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 mainly as they do not have adequate resources. The reality is that SMMEs have no choice but to explore alternative energy sources as a sustained period without an income could jeorpadise the sustainability of their business,” he said.

Orie recommends some of the following measures to minimise the 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 your earliest convenience

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.