It is no rumor that Sudhir Ruparelia is renown for his success in business and in the current global recession phase, UNECA estimates that the pandemic may result in 78% decline in GDP growth, from 3.2% to 1.8%.
The Business mogul, Sudhir Ruparelia shares his insights on the “New-normal Uganda”:
After the slow down, what will change:
1. Luxury spending will drop dramatically,
2. Long-term / capital spending, such as construction, would almost limit infrastructure to zero.
3. Lifestyle spending would be reduced, such as salaries, leasing, utilities, entertainment
4. There will be enormous strain on working capital. Businesses, in particular those riding on borrowed working capital, would exit business
5. The evolution of modern imaginative business models
What during the slow down will NOT change:
1. Consumption of people on basics will proceed
2. Investment in concepts / technical technologies that boost productivity increases
3. Short-term trading firms with sound cash flow policies will prosper.
As an individual, what you should do:
1. Keep back certain investments in luxury / high risk where it is difficult to estimate visibility of returns
2. Minimize everyday expenditure-keep an eye on your lifestyle spending-ask the question, it’s very important!
3. Create yourself to improve competency and build skills to become stronger and more successful
4. Share the financial situation with the members of the family and advise them on the financial status of the family and on measures to change
5. Invest – Yes, invest in the right things. History repeats itself. Based on comprehensive analysis, take risks. Now is not the time to be too protective of money but to be an entrepreneur.
As an Entrepreneur, what you can do:
1. Take charge of the staff; connect better than ever before. Be fair with them and be clear
2. Using the slowing to optimize procedures / individuals
3. Invest in technologies / systems that speed up your ability and add value and your consumers.
4. Be frugal in judgments on working capital and running expenditures