As South Africa moves closer to the busy Black Friday retail season, SME services provider Lula has urged entrepreneurs to view the season as more than just a retail sales spike. Instead, it is an opportunity to strengthen business resilience, test operational systems, and unlock new growth channels.
Black Friday (in November) signals the start of one of South Africa’s most significant trading periods, with billions expected to flow through both online and in-store channels. However, for small and medium-sized businesses, the challenge is not just competing with big players. It is about managing liquidity, safeguarding digital transactions, and ensuring operational readiness.
“Black Friday has become a stress test for businesses generally and small businesses in particular,” says Garth Rossiter, Chief Risk Officer at Lula. “It is a massive opportunity for businesses to make their mark, but it can highlight both business strengths and weaknesses, from cash flow to cyber resilience. Business owners should carefully consider acting on any gaps they see to help them grow and expand their business prospects. We might still only be in September, but time and money move fast. Your planning should start now, if you haven’t started already.”
The hidden gaps small businesses must address:
- Cash flow pressure: If you’re expecting a sales surge on Black Friday, the time to plan for that is now. Suppliers often demand upfront payment, while customer receipts often lag, leaving SMEs squeezed at their busiest time.
- Cybersecurity risks: The surge in online sales attracts fraud, phishing scams, and data breaches—areas where many small businesses remain vulnerable.
- Operational strain: You need to consider lead times, especially if you import stock. Too little and you won’t have stock to sell; too long and you will have cash tied up for longer than you’d want. Stockouts, slow fulfillment, and underinvestment in customer service can damage reputations beyond Black Friday.
Choose the right banking and funding partner for your business. Ideally, they will understand your business and your growth needs, some of which are likely to be:
- Ease of use: Easy onboarding, powerful financial management and easier access to business funding when you need it
- Fast, flexible funding: Approvals in under 24 hours allow your business to stock up, invest in marketing, and keep operations running smoothly.
- Smart repayment solutions: Flexible terms align with seasonal sales patterns, reducing pressure during high-trade periods.
Advice for SMEs this coming Black Friday:
- Invest in cyber resilience—implement two-factor authentication (2FA), update payment systems, and teach staff about common scams.
- Bundle; don’t just discount—protect margins while boosting average order value.
- Plan liquidity early—don’t wait for cash crunches; secure funding before demand peaks.
- Think long term—treat Black Friday as a launchpad for festive season growth, not just a one-day push.
“The small businesses that normally win on Black Friday aren’t the ones offering just the deepest discounts,” adds Rossiter. “They’re the ones that planned smartly, managed risk, and positioned themselves to convert seasonal demand into sustainable growth. The biggest benefit for small businesses from Black Friday is customer acquisition and brand awareness. It enables these businesses to attract several new customers who are actively seeking deals and provides a crucial opportunity to expand their customer base beyond their usual market. You really want that first experience to be so good that these customers become long-term buyers, not just one-offs.”
