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Why you should work on your post Covid-19 strategy today

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I don’t have to tell you what the current effects of the Covid-19 health crisis are on our lives and livelihoods today. It’s global, it’s everywhere and we are all going through it at the same time. Turn on the news or browse through your favourite digital platforms and you will be confronted with the reality of things. That, and the fact that most of us are on lockdown at home. Life as we know it, has been disrupted in so many ways.

And while some of the changes in our daily routines are going to be temporary, I believe (and many experts with me) that there will be quite a number of things in our professional and personal environments that are going to change significantly – and for good.

One of the things that we can all agree on, and have witnessed across the globe is how important digital solutions and the internet has become in our society and in our economies. And while access to the internet and these digital solutions is still not readily available to about 4 billion (!) people, many of these tools have enable companies to leverage the power of the internet to reach and impact the lives of people that don’t have.

With people losing jobs, access to resources, limited access to non-covid-19 related healthcare. People losing loved ones – there is a lot going on that we have limited control over right now. This, with the uncertainty of time: how long is the peak of this pandemic going to last?

The truth is, nobody knows exactly how we will come out of this. We can theorise, we can calculate and speculate based on historical data and look at past global crises similar to this. And we still won’t know for sure.

So then really, what does this mean for our businesses? Good question.

One thing we can be sure of; once we do come out of this crisis, it will be to a whole new world, with a different order, and different needs to facilitate an (ever changing) new way of life. And if we have learnt one thing about the past two global crises, it’s those who took action, those who prepared in the midst of it were not only able to make it to the ‘other side’, they came out winning.

And with all the losses that we have had to endure over the past few months, I believe a lot of us are ready to start working towards a win.

I have broken down some points on what I believe the disruption that is currently happening will mean for the future of business, and how you can prepare to come out of it – stronger.

Time to re-strategize

An HBR article published a few years ago found that during the recessions of 1980, 1990, and 2000, 17% of the 4,700 public companies they studied fared particularly badly: They went bankrupt, went private, or were acquired. But just as striking, 9% of the companies didn’t simply recover in the three years after a recession—they flourished, outperforming competitors by at least 10% in sales and profits growth. A more recent analysis by Bain using data from the Great Recession reinforced that finding. The top 10% of companies in Bain’s analysis saw their earnings climb steadily throughout the period and continue to rise afterward. A third study, by McKinsey, found similar results.

Going in to the more recent global financial crisis in 2007 – 2009, not only did a surprising percentage of companies come out of it with steady growth numbers, quite a number of them actually flourished and experienced exponential growth in the years that followed.

The difference maker was preparation. Among the companies that stagnated in the aftermath of the Great Recession, “few made contingency plans or thought through alternative scenarios,” according to the Bain report. “When the downturn hit, they switched to survival mode, making deep cuts and reacting defensively.” Many of the companies that merely limp through a recession are slower to recover and never really catch up. – Source

We are currently seeing a similar divide among businesses. There are those that are now focused on keeping the business running as much as possible, and as close to the way it was before as they possibly can. Then there are those, including some of my ScaleUp clients, who are looking at the developments within their market, the response and behaviour of their clients and are deciding to go back to the drawing board to re-evaluate their position and strategy.

While some companies should definitely keep doing what they are doing (Zoom, Microsoft, Netflix, takeaway.com a lot of others will need to re-strategize, re-invent themselves; pivot.

So here are the first key steps you can take for your business

  • Look for new opportunities and innovate: first, look for new opportunities wherever you can. If the recession is located in one specific geographic area for your particular business, consider expanding to new territory. If your target audience is suffering, change your offering or attract a new audience. If there’s something lacking in your business model, don’t be afraid to reinvent yourself.

A great example of this is that of a local corporate lunch delivery service here in Amsterdam, that went from serving a few hundred clients a week to zero in a matter of days because offices were shutting down as they all started working from home. So the company decided to change their offering. They offered to deliver the lunches to the homes of all the clients employees and thereby retaining their clients. And they started offering their services to families who were now on lock down at home with their kids – attracting a whole new set of clients.

  • Digitize your offering: If you weren’t sure if digital was the way to go for your business before now, it’s time to look at your options again. For many businesses there lies a huge opportunity to retain and attract customers by moving your offline services to a digital offering. Think about the high value products and services that you have that you can sell online through your own online store or other platforms, and events that you can host virtually using virtual summit tools, or moving your consultations to digital meeting rooms and increase interaction using collaboration tools. And guess what? It’s been proven likely that you will be able to cut significantly on costs, increase productivity and efficiency to name a few advantages.
  • Help those in need: Both consumers and businesses struggle in an economic recession, so find a way to serve those sufferers specifically, with different pricing structure or new opportunities they can leverage to make it through. *This is not the time to commercialise on the back of the crisis – be genuine in your outreach.
  • Present an alternative: In a recession, people will make hard choices about what to cut out of their lives. If you can give them a more cost-efficient alternative to what they’re cutting out, you’ll stand to win big.

Pro branding tip: empower your employees to become brand ambassadors: You will be surprised by the number of employees you have working in your company that could be amazing brand ambassadors for your business (really, they all should be) and help drive more of your core clients your way. Question is, do they have your support – or better yet are you cheering them on to do so?

Case study Lin Qingxuan responds to lockdown Corona crisis

For example, cosmetics company Lin Qingxuan was forced to close 40% of its stores during the crisis, including all of its locations in Wuhan. However, the company redeployed its 100+ beauty advisors from those stores to become online influencers who leveraged digital tools, such as WeChat, to engage customers virtually and drive online sales. As a result, its sales in Wuhan achieved 200% growth compared to the prior year’s sales.

The harsh reality is that some businesses may simply not survive if this pandemic takes much longer (do try to apply for government aid if you can). But that doesn’t mean we can’t put in the effort to make the absolute best of it. And who knows, perhaps the shutting down of one business will be your open door to a new business that is relevant and uniquely positioned for the new business climate that awaits us.

Also Read: Erica Tavares: Passionate About A Greener, Better Future

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Kimberly Ofori

Kimberly Ofori: An Entrepreneur, Game changer, ScaleUp Consultant, Strategist and Managing Director at Ofori Inc.

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Possibilities of Making Profits On Crypto, Risk-Free

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Over the course of the last decade, cryptocurrencies have experienced unprecedented growth and garnered a lot of interest across a range of demographics from all over the world. Interest in digital currencies is spiking globally and search terms such as “how to buy Bitcoin” have seen an uptick in interest according to Google trends. This is just one of many indicators that suggests a notable influx of people are entering the blockchain space and looking to explore the crypto ecosystem.

While the market cap of digital assets has varied extremely with price fluctuations, it, however, grew from about US$10 billion in 2013 to about $237 billion in 2019. Also, in the last 5 years, the increase in Bitcoin (BTC) private accounts and trades has averaged about sixty percent every year. Currently, the market cap for digital currencies is just above $2 trillion.

Even though many people have made early gains in digital assets, the cryptocurrency space is still in the early phase of development. The Internet for example, was created in 1969 and the “worldwide web” was designed in 1989 and subsequently the first web browser in 1990. Compared to those revolutionary technologies which massively transformed the communications landscape, blockchain technology is nascent and cryptocurrencies have only been in use for only a decade.

Crypto goes mainstream

Social media has exposed a lot of people to the crypto industry. The mass media is quick to broadcast the movements in bitcoin prices, leading to FOMO and FUD or the hysteria that sometimes characterizes crypto markets. Overall the ever growing coverage has done more to spur further development of new innovations within the space.

The price increase of cryptocurrency will probably be boosted by increased cryptocurrency adoption. While many institutions have started to invest and buy Bitcoin, there are still a lot of firms waiting in line to invest and buy Bitcoin. The average volume of digital assets transacted on any given day is just one percent of the FX trade. Regardless of cryptocurrencies increasing to more than $2 trillion in market cap according to Coinmarketcap, digital assets are still a tiny fraction of global equity trade ($34.8 trillion in 2020) and worldwide debt trade (over 281 trillion in 2020) according to Bloomberg.

With more institutional adoption of Bitcoin and other digital assets, traders and investors are presented with more chances to make money in the digital asset space.

How to make money with crypto

There are several ways of making profits with digital assets. Given that digital assets are basically volatile, many digital assets involve a great level of risk while some need greater expertise. It is important to have prerequisite knowledge about digital assets before you buy bitcoin.

One of the ways of making profits with cryptocurrency is through investing. This is generally for long-term purposes. It requires you to buy Bitcoin or other cryptocurrencies and hold them for a chosen period of time. This can be done via different traditional crypto exchanges or P2P platforms like Remitano. Digital assets are usually well-suited to the investing practice of buying low, holding and then selling high. Cryptocurrencies are highly volatile in shorter timeframes, however, they typically and have historically offered a much more lucrative upside over long periods compared to traditional investment vehicles.

Studies have also shown that most BTC profits are realized in the ten best trading periods of the year.

Due to cryptocurrencies being naturally volatile, investing for a long period is one of the ways of making profits with cryptocurrency. Just like with any type of investing, risks have to be thoroughly considered and expectations of rewards have to be managed well.

Another way of making profits with cryptocurrency is to trade digital assets. The most notable difference between investing and trading is the general time frames between entering and exiting positions. Investing is for a long period, while trading is basically to leverage opportunities over a short period. To trade digital assets successfully, it is important to know the basic fundamentals and have the capability to conduct technical analysis in order to avoid making costly mistakes.

Making profits via trading cryptocurrencies is more about knowing the price trend and pattern and utilizing it to forecast future value, many times over a short period. Find out the 20 best platforms to buy Bitcoin and other digital currencies in South Africa.

What is the possibility of making profits on crypto, risk-free?

Trading digital assets sounds relatively easy, however, due to the highly volatile nature of crypto assets, it involves a lot of risks. One of the ways to make profits on cryptocurrency with relatively low risk is by doing cryptocurrency arbitrage. This trading method exploits price and demand gaps between different digital asset marketplaces. But, the trades have to be done almost instantaneously to realize gains.

Arbitrage Trading

Crypto arbitrage involves exploiting price differences on different crypto exchanges for your benefit. This method is effective in places where bitcoin price varies from one exchange to the other like in South Africa and Nigeria. The price differences could be a result of several factors.

Arbitrage trading involves buying bitcoin or other digital assets from one exchange and selling it on other exchanges at a higher price. Selling the asset after the purchase must be done relatively quickly to avoid price movements narrowing margins or leading to loss at times.

Exploiting the price difference using the cryptocurrency arbitrage technique requires a cryptocurrency market that has price discrepancies depending on the supply and demand in the different markets.

Remitano Invest

Another way to make money risk-free is with Remitano Invest. Remitano invest allows you to buy and invest in cryptocurrencies without putting your capital at risk.

How?

With the Stop Loss and Take Profit features, your crypto asset will be liquidated to USDT (a stable coin) to prevent loss and maximize your profit. You simply set the auto sell price for the Stop Loss and Take Profit. When the asset you have invested hits your Take Profit price, Remitano Invest converts it into USDT to secure your profit. However, if the asset’s price falls to your Stop Loss price, the system will convert it into USDT to help you secure your capital and prevent further loss.

Risks and benefits are an intrinsic part of most money markets and they go hand in hand. Risks cannot be eradicated but they can be managed. Some risks can be managed by utilizing effective risk management practices. Personal risks like wallet hacks, coin theft, and loss of access to funds can be offset by making sure you implement good security practices.

Article & Image source: Heath Muchena

 

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How to Make Money Online by Buying and Selling Bitcoin

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Bitcoin is a cryptocurrency that doesn’t require much introduction. It is the leading digital asset in terms of market cap and a top trend that has been around for a while. With increased popularity and adoption comes the debate around the best way to make money with Bitcoin. There are several ways to make money with the asset, it all depends on your investing approach or trading strategy. Buying and selling bitcoin or called bitcoin trading is one of the ways you can make money with the digital asset. But if you want to buy bitcoin and sell with the aim of making a profit, there are certain evaluations you have to make.

Bitcoin Trading

Trading simply means buying and selling, mostly with the aim of making profits/money. So bitcoin trading means buying bitcoin at a reasonably low price and selling it at a much higher price. Bitcoin trading depends greatly on how effective you are at gathering intelligence, analysing the market, and taking calculated risks. Having a good risk mitigation strategy and a profit taking plan is also crucial. Below are some of the strategies traders implement when crypto trading.

Day Trading

Day trading entails taking trades within short timeframes. The method involves a careful reading of the market, spotting the small opportunities to make profit, and making the most of those opportunities by taking decisive action. So basically, you buy bitcoin at a low price, wait for a little positive swing in price and then you sell. You are taking advantage of the daily volatility in the price of BTC and those price market movements. Although the gains could seem relatively small especially when trading with modest capital, over time those smaller profits accumulate into quite significant gains. When implementing the day trading strategy, you can open and close several trades daily. Traders implementing this strategy spend a lot of time closely monitoring their positions. Some experts believe that day trading is the most effective way to make profits from bitcoin trading since the market is highly volatile.

Swing Trading

Swing trading mainly involves a trader buying an asset at a low price, then waiting for that asset’s price to appreciate before selling it off at a higher price. In essence, this type of trading involves taking advantage of swings in crypto asset prices. Swing trading may require waiting a long time compared to day trading, but not as long as when you are implementing the HODL strategy. Basically, you buy BTC at a low price, wait a while for a positive price swing, and close your trade at a higher price. Swing traders don’t spend much time looking at their screen as they can wait for weeks or sometimes months before closing a position.

Arbitrage

This simply means taking advantage of varying bitcoin prices on different digital currency exchanges rather than within the same exchange. This method is effective in places where bitcoin price varies from one exchange to the other like South Africa. So you buy bitcoin from an exchange at a low price and sell on another exchange at a higher price.

Buying and HODLing

HODL is just a play on the word HOLD that has become a common word within the crypto community. HODLing simply means buying bitcoin and then holding with an expectation that the price will go higher in the future. Although the concept of the strategy might sound easy, it nonetheless requires patience and emotional stability. Basically, there are two factors that make trading quite difficult, the first is FOMO which is the fear of missing out, and FUD – fear, uncertainty and doubt. Traders who cannot keep their composure when markets are volatile typically end up buying or selling as a result of either FOMO or FUD which means they buy above the market price or sell at a loss.

In conclusion, bitcoin trading can yield amazing results when done correctly, however, it can also be risky when you don’t have an idea of how to properly make your profit out of it. The rule of thumb is always to only invest or trade what you are prepared to risk losing.

Bitcoin can be a highly volatile asset, and its price actions can be unpredictable at times. While its price movements can be exceptionally high and sometimes low, no one can time the market for certain as there are always many forces and factors that determine the trajectory of market performance.

That’s one reason why risking large amounts of money on a single trade is never recommended. Even if you think you’ve done enough research, making extremely risky moves such as leveraged trading when you don’t have the know-how to properly risk manage could result in massive losses which is never a good idea.

It is important to maintain your composure and to take a level-headed approach to trading. Knowing the fundamentals and understanding that sometimes a cryptocurrency can drop in price sharply but also rebound massively can help you avoid panic selling at a loss. However, also holding on to an asset that continues to poorly perform can sometimes be even worse. It’s ultimately about following through on your chosen trading strategy and adapting as you learn new information in order that your decision making and action taking are always aligned with your objectives. Find out more about 20 of the best platforms to sell or buy Bitcoin in South Africa.

Article & Image source: Heath Muchena 

 

 

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Lami, Kenya-based Insurtech secures $1.8 million to accelerate digital insurance in Africa

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Lami team and press release (Source: Eva Barasa/Lami Tech/medium)

Lami Technologies, a Kenyan insurance technology (insurtech) company that aims to democratize insurance products and services for low-income Kenyans, announced today it had raised $1.8 million in seed funding.

The round was led by Accion Venture Lab’s seed-stage investment initiative that provides capital and extensive support to innovative fintech startups that improve the reach, quality, and affordability of financial services for the underserved.

Founded by Jihan Abass in 2018, Lami is a digital insurance platform that enables partner businesses — including banks, tech companies, and other entities to easily and seamlessly offer digital insurance products to their users via its API. Lami can also be used by partner businesses to manage their own insurance needs. Lami connects partner organizations, such as the e-commerce platform Jumia, with underwriters and allows them to offer a superior customer journey. Through its API, users can get a quotation for motor, medical, or other tailored insurance products in seconds, then customize the benefits and adjust the premium to suit their needs, get their policy documents instantly, and claims are paid in record time.

Lami’s services are enabled by its flexible insurance rating engine and direct integration with several parties and insurance companies. Lami co-designs innovative products with its underwriting partners to enable businesses to offer unique insurance products to their underlying customer base, with flexible options that meet their needs and cash flows, such as monthly medical policies for startup employees.

Jihan Abass, CEO & Founder of Lami (Source: Eva Barasa/Lami Tech/medium)

Jihan Abass, CEO, Lami, said: “This funding will allow us to invest in hiring more people, improving our technology, and growing our presence across Africa as we can continue to address the persistent insurance gap. At Lami, our vision is to help improve the financial resilience of millions by making insurance products more accessible and affordable for underserved populations. By enabling our business partners to offer customized insurance solutions, we are helping them provide more value to their customers while enabling large volumes of users to access insurance, often for the first time.”

Africa’s insurance market currently stands at a 3 percent penetration rate, except for South Africa, and is facing modernization and innovation challenges. Most insurance providers on the continent fail to offer flexible, affordable and tailored insurance coverage to provide a safety net for the African consumer. Low insurance uptake is partly due to the traditional distribution and administration of policies, mainly relying on brick-and-mortar channels where policies are sold and processed manually. This results in a longer processing cycle, poor customer satisfaction, and higher distribution costs.

Lami’s digital insurance platform leverages cloud computing, automation, and third-party service providers such as emergency and valuation, or identity and asset verification databases, to offer a comprehensive ecosystem for the businesses they partner with to develop, distribute and manage highly streamlined and competitive insurance products that are designed to meet their customers’ needs.

Since its inception, the insurtech startup has sold more than 5,000 policies and has partnered with more than 25 active underwriters, including Britam, Pioneer, and Madison Insurance, distributing more than 30 products available including medical, motor, employee benefits, and device insurance. As an innovator in the digital insurance space, Lami aims to continue diversifying its business by looking for new partners and building on its core technology.

Michael Schlein, President and CEO, Accion Venture Lab, said: “Ninety-seven percent of Africans lack access to insurance — a financial safety net that can help them build resilience against economic shocks. Lami helps address this need for consumers across Africa through its innovative approach that leverages technology and partnerships to help any business develop and sell insurance.”

“At Accion Venture Lab, we’re excited by how Lami is using technology to create a pathway for customers to purchase insurance that is specific to their needs. By embedding customized insurance within businesses that customers know and trust, Lami is making insurance accessible for underserved populations in Africa and enabling them to build financial resilience. “said Ashley Lewis, Africa Director, Accion Venture Lab

This investment highlights the strong commitment of all organizations to ensuring that financial services are made accessible and affordable for the underserved.

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