The Opportunity in Adversity

"So-called bad times present a great opportunity; you cut your costs back to the bone, so that when the market starts to go up, you’re in a fantastic position. You’ve got costs that are 50 to 60% of what you were running on, so you’re quickly back to where you were... The bad times are a good time to go for it.

"And you spend more, not less, on marketing. With your competition cutting back, this is the perfect time to annex market share."

Back in 2010, I was asked to write a chapter for South Africa's Greatest Entrepreneurs, on Pam Golding, founder of Pam Golding Properties (PGP). I had interviewed Pam at length as well as her sons, Andrew and Peter. It was Peter who recommended I speak to his father Cecil.

While researching the company, I'd noticed that whenever South Africa's economy hit a trough, far from waiting it out, PGP had surged forward into new waters. Here are just three examples:

• opening a branch in London in 1986 to market South African property at a time when foreign investment was fleeing the country,

• launching in Johannesburg at the height of the bond crisis in 1988,

• establishing a franchise division (and one of the first commercial websites in the world) in the turmoil of the early '90s.

When I asked if this was a strategic policy, Cecil gave the answer above.

His words have come back to me often over the last two years, which have been so tough for so many.

The other learnings from the chapter are:

1. Trust your instincts

“An entrepreneur is one who dares to try, who hopes to make a difference, who

doesn’t know how she gets there, but is determined to do so.” – Pam Golding

2. Employ with care

“We always employed the right people. There was a standard that we absolutely

insisted on.” – Pam Golding

3. Lead with the latest technology

“The purchase of [that first] computer was like buying a Rolls Royce for your first car – it

was that significant. It created enormous, unlimited capacity to expand.” – Peter

Golding

4. Be determined

“There was never any lack of resilience: when the going got tough Pam just got

more determined. We’ve got a saying in our family: ‘Press on, regardless’.” –

Andrew Golding

5. Confidence is catching

“Their trust in us, belief in us, and confidence in our recommendations was a

direct reflection of our confidence in ourselves.” – Pam Golding

6. Never underestimate the importance of marketing

“The percentage of turnover devoted to marketing varied but we never stopped

advertising.”

7. You’re never too old to start an empire

In 1976, when she started Pam Golding Properties, Pam was 48.

8. Be positive, no matter what

“I’m blessed with a really optimistic nature. You simply can’t be down.” – Pam

Golding

9. When you see a chance, take it

“It wasn’t so much a matter of: 'We’re here, here and here so we have to open

there to achieve this …’ It was nothing like that. It was Pam taking advantage of

opportunities as they presented themselves." – Peter Golding

However Pam might have motivated the timing, moving into a brand-new region

in 1988 when there was so little liquidity in the market took chutzpah, courage

and confidence.

10. When the time comes, be ready and willing to step back

“My instinct was to let Andrew have space; to be around, keeping an eye, but to

move away to give him space.” – Pam Golding