CAPITAL: The Voice of Business Issue 1, 2015 | Page 69

Opinion Leader | Finance

It’s not all
doom and
gloom

W

hen I reflect on 2014, I realise that it has
been without doubt one of the toughest
banking years of my career. The recession
that began in 2008 has had long-lasting
effects on the economy today, lingering longer than
everyone’s expectations, and is set to continue into 2015
and beyond. What is clear to me is that the business
landscape has undoubtedly become a lot tougher to
operate in.
My experience is that businesses have experienced
slower growth in sales along with increased costs,
which has translated to lower profits. On top of this,
margins are being squeezed as demand for product
has dropped off and buyers have become acutely price
sensitive, bargaining for every last cent. All of this has
put cash flows under pressure, which has been further
exacerbated by debtors stretching payment terms, even
if only for a few days. As a banker, I have definitely felt
the additional cash-flow needs of the market over the
past year.
But the business world is not all doom and gloom, and
I have seen some interesting developments come out
of the environment to which we have all had to adapt.
There is no doubt that some businesses that were unable
to trade profitably through the period have been forced
to close, and these sales have been absorbed by those
remaining. Others have merged or been bought out by
stronger competitors. More pleasing to me, however, is
the attention paid by most businesses to improving their
efficiencies and developing alternative sales strategies
to grow their top line while still containing costs. In
many instances, businesses have actually improved their
position through the period and when they reflect back
they wonder why they never did this when times were
good. I guess it is a good lesson to file in our memory
banks because the good times will come back, and after

a while we tend to forget the pain we went through
and the mistakes we made. My advice is to never get
complacent about your business and constantly look
for where to improve, while also keeping an eye on the
horizon for what is coming at you.
I do need to comment on the wonderful business
community we operate within. When I first moved to
Pietermaritzburg eight years ago from the land of the
big smoke and crazy traffic, my friends and colleagues
all said the same thing: “Off to the ‘Sleepy Hollow’!”
That perception could not have been further from the
truth. The growth I have seen in the City of Choice has
been phenomenal and the quality of the businesses
that exists in our ‘Vibrant Valley’ amazes me on a daily
basis. We have world-class businesses producing and
supplying quality products all across South Africa,
and the world, for that matter. There are leading-edge
technologies being employed on our doorstep and
businesses that are recognised as world leaders in their
fields of expertise.
Often we are quick to complain about what is not
working in our world, but seldom do we acknowledge
the good things and the great work being done in our
community. I trust that this publication will help us
celebrate the fantastic achievements that I know are
happening in our city.
Finally, a lot of credit needs to go to the very active
Pietermaritz-burg Chamber of Business (PCB), ably led
by Melanie Veness, who proactively supports members
to grow their businesses in these trying times.Their
support is truly valued by their members.
John Bush
Area manager, Nedbank Business Banking KZN Inland

Capital | Issue 1 |

69