Business viability is a genuine, ongoing question for most SMEs, not a one-time assessment you make at launch and forget. It refers to a general assessment of whether a business is, or will remain, successful, covering everything from operations and marketing to the underlying financials.
There are concrete steps business owners can take to strengthen that viability over time, running a properly compliant, well-marketed, technology-enabled business while staying alert to emerging risks rather than reacting only once they hit.
Here are five ways to improve your company’s long-term viability.
1. Get compliance right
Most business owners understand why running a professional business matters, but many underestimate how critical compliance is until they actually need it, whether that is approaching funders during a difficult period or accessing government tax incentives and financial support.
A compliant business adheres to tax laws and regulations. This means being properly registered with the CIPC and meeting the requirements that apply to your specific industry: zoning laws, licensing and permits, and labour law.
2. Focus on marketing, especially when times are tough
It is tempting to pause marketing spend during a difficult period, but that is exactly when staying visible to your existing and potential customers matters most.
Digital marketing remains an affordable, trackable alternative to traditional advertising for most SMEs. Social media, email marketing and SEO are the core tactics worth building consistent effort around, since they let you advertise directly to your actual customer base while building both a business and personal brand over time.
3. Invest in IT
Technology continues to play a substantial role in improving how small and medium businesses in South Africa operate. Cloud-based software makes it considerably easier to manage finances, operations and people efficiently, without the overhead of maintaining your own infrastructure.
Worthwhile IT investments include a proper website, ecommerce capability where relevant, digital marketing tools, and customer relationship management (CRM) software to keep client data and follow-up organised as the business grows.
4. Improve customer service
Customer expectations have shifted meaningfully in recent years. Consumers now expect businesses to offer better service while making it genuinely easy to shop and pay however and whenever suits them.
Investing in your website and offering a consistent, multi-channel experience, in person and online, is one of the more direct ways to meet that expectation without a major operational overhaul.
5. Prioritise profit and build real reserves
Many small businesses operate without a genuine financial safety net, and unlike larger corporates, SMEs typically do not have the cash reserves to absorb a serious setback. Building up healthy cash reserves protects the business against unbudgeted shocks and gives you the flexibility to invest in new ideas when the opportunity arises, rather than only when the balance sheet allows it.
Frequently asked questions
What does business viability actually mean?
A general assessment of whether a business is, or will be, successful, covering operations, marketing and financials together rather than any single metric in isolation.
Why does compliance matter for long-term business viability?
Because it directly determines whether you can access funding, government incentives and financial assistance when you actually need them. A non-compliant business often discovers this only when it is too late to fix quickly.
Should I cut marketing spend during a difficult financial period?
No. Staying visible to customers during a downturn is often more important than during stable periods, since it is exactly when competitors may be pulling back and attention is easier to win.
What IT investments matter most for a small business?
A proper website, ecommerce capability if relevant to your business, digital marketing tools, and CRM software to keep client relationships organised as the business scales.
How much of a cash reserve should a small business hold?
There is no universal figure, but the principle is consistent: build enough of a reserve to absorb an unbudgeted shock without threatening the business’s survival, then grow that reserve as the business itself grows.
Building a business that lasts
Business viability is not a single decision, it is a habit built from consistent compliance, sustained marketing, sensible technology investment, strong customer service and disciplined financial management. Get these five fundamentals right, and your business is considerably better placed to withstand whatever the next disruption turns out to be.
Originally published in June 2022. Updated September 2026 to remove dated COVID-era framing and focus on lasting business viability practices. Confirm current tools and providers directly before adopting any specific solution.
