Make sure your business can survive for 18 months - Michael Jordaan

[Jamie McKane]

Make sure your business can survive for 18 months - Michael Jordaan

Businesses should be realistic, look at the facts, and make tough choices to ensure they survive during the economic crisis caused by the coronavirus outbreak.

This is advice from former FNB CEO and venture capitalist Michael Jordaan, who was speaking to Winslyn’s Divan Botha.

 

[Magnum]

This migh tactually be the saving of my company. We are a monopoly and are pretty well set financially, Our startup rivals are not.

 

[JayM]

I'm probably going to close my business down. Currently burning R40K a month to keep it afloat. It's probably wiser just to liquidate it (it has some assets worth a fair amount of money), emigrate and go back to a regular day job in a couple of years when the economy has recovered.

 

[bwana]

I'm probably going to close my business down. Currently burning R40K a month to keep it afloat. It's probably wiser just to liquidate it (it has some assets worth a fair amount of money), emigrate and go back to a regular day job in a couple of years when the economy has recovered.

Emigrate? Through which lockeddown border?

 

[JayM]

Emigrate? Through which lockeddown border?

It'll take 5-6 months to wind down the company. I'm assuming by then at least one repatriation flight back to the UK will be available.

 

[RedViking]

Yes, press the red button. It will help your business to survive for 2 years. Also make sure that you sommer have a coupe of million stacked under your office desk. Sommer net so.

 

[RedViking]

I'm probably going to close my business down. Currently burning R40K a month to keep it afloat. It's probably wiser just to liquidate it (it has some assets worth a fair amount of money), emigrate and go back to a regular day job in a couple of years when the economy has recovered.

No, but you must keep it profitable for another 18 months. Easy peasy....

 

[JayM]

No, but you must keep it profitable for another 18 months. Easy peasy....

Agree, his tone was rather flippant. There aren't many companies that can pull cash our their arses to survive 18 months, and even if they could it might still be throwing good money after bad.

 

[RedViking]

This migh tactually be the saving of my company. We are a monopoly and are pretty well set financially, Our startup rivals are not.

So you are going to "be realistic, look at the facts, and make tough choices" and that is going to save your business?

 

[RedViking]

Agree, his tone was rather flippant. There aren't many companies that can pull cash our their arses to survive 18 months, and even if they could it might still be throwing good money after bad.

Well basically he said nothing...

I'm sure he gives actual advise somewhere. But you won't find it in the blog post.

 

[Pixual]

He questions why we aren't allowed to use courier companies for trade. So do I.

What this points to is a shrewd move by government to weed out the informal sector and make them compliant. They will want everybody doing business in this country to be registered, regardless of how they operate.

 

[Mekon]

Easy for someone that doesn't have any financial worries to say some thing like "make sure"
Make sure you brush your teeth
Make sure the doors are locked at night
Make sure you switched the stove off
.....that's easy

 

[d-_-b]

Emigrate? Through which lockeddown border?

I see recruiters advertising positions in eu on linkedin, targeted to za with tags like start now and work from home and emigrate when the borders open again.

Not sure how it will work, but there is that offers out there.

 

[RedViking]

Easy for someone that doesn't have any financial worries to say some thing like "make sure"
Make sure you brush your teeth
Make sure the doors are locked at night
Make sure you switched the stove off
.....that's easy

Here is a little more from 'him'

Michael Jordaan sees tech start-up lockdown resilience

The venture capitalist and former FNB CEO says his tech-based start-ups have adapted well to the COVID-19 lockdown.

www.itweb.co.za

 

[Magnum]

So you are going to "be realistic, look at the facts, and make tough choices" and that is going to save your business?

No it is business as usual. we will be making more money when the Lock down is lifted than before Covid-19.

 

[RedViking]

No it is business as usual. we will be making more money when the Lock down is lifted than before Covid-19.

Ah I see what you mean. COVID 19 / lockdown is actually going to make you money.

 

[Magnum]

Ah I see what you mean. COVID 19 / lockdown is actually going to make you money.

Yes because Our competitors are now set back years.

 

[azbob]

It'll take 5-6 months to wind down the company. I'm assuming by then at least one repatriation flight back to the UK will be available.

There were already about 7 repatriation flights to the UK in early April. Why would there still be repatriation flights 6 months from now? Also, repatriation flights are mostly for tourists and short term visitors. You don’t seem to be either?

 

[Fulcrum29]

I like it when bankers tell businesses how to survive, and it is mostly sound advice, but they want you to survive within their own banking ecosystems. Their core advise is to ensure business continuity through continues transactions. So, how do banks survive?

 

[JayM]

There were already about 7 repatriation flights to the UK in early April. Why would there still be repatriation flights 6 months from now? Also, repatriation flights are mostly for tourists and short term visitors. You don’t seem to be either?

My bad, I guess calling them repatriation flights is incorrect. I'm referring to any flight at reasonable cost. If there aren't any, then I wait until there are.