South African SMEs urged to prepare for Black Friday surge

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Black Friday, expected in November, signals one of the country’s most significant trading periods, with billions anticipated to flow through both online and in-store channels. For SMEs, the challenge extends beyond competing with large retailers, encompassing cash flow management, operational readiness, and cybersecurity.

“Black Friday acts as a stress test for businesses, particularly small enterprises,” says Garth Rossiter, chief risk officer at SME services provider Lula. “It highlights both strengths and weaknesses, from cash flow to cyber resilience. Business owners who identify gaps early can use this period to position themselves for sustainable growth.”

Key considerations for SMEs this Black Friday include:

• Cash flow management: Anticipating sales surges and planning for supplier payments is crucial to avoid liquidity challenges.
• Cybersecurity: Increased online activity during the period raises the risk of fraud, phishing, and data breaches.
• Operational efficiency: Adequate stock levels, timely fulfilment, and robust customer service are essential to maintain reputation and meet demand.
• Funding partners: Choosing financial services that offer easy access to funding, fast approvals, and flexible repayment can help SMEs navigate high-trade periods effectively.

Industry experts also recommend long-term planning, noting that Black Friday can serve as a launchpad for broader festive-season growth rather than a one-day push. Bundling products, rather than simply offering discounts, can help businesses maintain margins while increasing average order value.

“The SMEs that perform best on Black Friday are those that plan carefully, manage risks, and convert seasonal demand into sustainable customer relationships,” adds Rossiter. “The period provides a crucial opportunity to acquire new customers and increase brand awareness, turning one-off buyers into repeat clients.”