Automation once promised a cleaner, leaner future with lower costs, faster service and fewer repetitive tasks. Yet some businesses are now reversing course and humans are being returned to jobs only recently given to software. Discover why this is happening, and just how automation might be hurting your business.

Every business leader, from the corner office to the corner store, has a story they wish they could rewrite. A product launched too early, a hire made too hastily, a pivot that led off a cliff. Despite this, bad business decisions are not a sign of a bad leader, they are simply a sign that a leader is human. The real measure of a leader is not whether they stumble, but how they recover. Here is what the evidence says you should do when you make a mistake.

As cloud-based software delivery has lowered the barrier to adoption, many companies are starting to lose track of the number of software subscriptions they have. This phenomenon is known as “SaaS creep” (SaaS stands for Software as a Service) and research suggests that the problem is considerably larger than most leaders recognise. The financial consequences are compounding, and, for organisations without formal oversight, almost entirely invisible.

Millennials and Gen Z – two generations raised on social media, shaped by climate anxiety, and equipped with instant access to information – are now rewriting the rules of consumer behaviour. For these switched-on generations, purchases are a statement of identity. Brands that stand for environmental stewardship, fair labour, and community investment are winning a market share that older marketing models never anticipated. Here’s how you can make this trend work for you.

Big businesses have big budgets, big teams, and big safety nets. Small businesses have none of these things … And at times this can be to their advantage. The mistake many small business owners make is looking up towards their conglomerate competition and trying to replicate what they see. In fact, the playbook that works for a multinational can actually destroy smaller operations. This article explains why.

Particularly in volatile economic times like these, effective budgeting is a critical driver of business success. This is because a budget enables sustainable growth by aligning financial resources with strategic business goals. We can assist you to create well-structured budgets that provide a roadmap for navigating the ongoing market ups and downs, while maintaining cashflow and identifying opportunities for investment.

Personal crises, such as bereavement, divorce, illness, and mental health challenges, are a reality of life, and how you respond when your employee is struggling says everything about you as a leader. Handle the situation badly and you risk losing a good person. Handle it well and you’ll not only be doing the right thing, but you could also forge one of the most loyal working relationships of your career.

While everyone’s talking about AI, trends are emerging that show the most successful small businesses have returned to the fundamentals: maximising every minute and tightening the leaks in local operations. Running a business in today’s topsy-turvy world is all about making the machine run smoother, ensuring that every hour spent translates directly into the bottom line and this is how they are doing it.

Client concentration risk can sink a healthy business faster than falling sales. When one customer accounts for too much revenue, cash flow, valuation, and even survival hinge on decisions you don’t control. Here we explain the “40% Rule.” What it is, why lenders and investors care about it, and how to manage concentration risk before it manages you.

Many small business owners fall into the “do it all” trap. You start with passion, but soon find yourself buried in tasks that have nothing to do with why you launched your venture. This leads to chronic burnout. You are busy, but are you productive? This feeling of being overwhelmed often stems from a failure to distinguish between being busy and making progress. That’s why you have to identify the “invisible work” that consumes your energy without ever appearing on a customer’s invoice or adding real value.

While on the surface they are just a spot of fun, team building exercises are actually a strategic investment in your business culture and performance. Done well, team building strengthens communication, fosters trust, and boosts morale. Done poorly, it feels like a forced afternoon that costs money and delivers little. As a small business owner, you need team building events that produce tangible improvements. Here’s how to do that.

For many small business owners, cash flow problems feel like a financial puzzle that’s impossible to figure out. It’s a numbers game that puts us at the mercy of the markets, and our clients’ payment terms. But what if the real issue isn’t the figures? When it comes down to it, cash flow issues have a lot more to do with our behavioural patterns than we sometimes believe.

Business culture is obsessed with speed. In a world where motion, and constant optimisation is the dream, doing nothing can look like failure. Entrepreneurs, CEOs and other leaders are praised for quick decision making, rapid iteration, and relentless action, yet many of the highest performers quietly practise the opposite at critical moments. They pause. They wait. They refuse to react. Strategic inaction is often one of the most disciplined and profitable decisions a business leader can make.

Diversification is treated as a business virtue so unquestioned it borders on dogma. Expand the product line. Enter new markets. Hedge every risk. Spread exposure everywhere. Yet for many entrepreneurs, diversification may actually bring more risk than it solves. We examine whether more really is safer, and explore why simplicity, not spread, is often the real competitive advantage. Diversification makes perfect investment sense – but it doesn’t always make business sense.

“If you can’t measure it, you can’t improve it.” (Peter F. Drucker, Business Management Guru) Entrepreneurs are hardwired to look forward, and chase the next win. This constant looking ahead can create a costly strategic blind spot. When you rush past December’s data to write January’s plan, you run the risk of missing the critical lessons already paid for in time, money, and stress. A comprehensive review gives you the opportunity to pinpoint previous issues and create solid strategies for growth. Without this backward glance, your resolutions become a wishlist disconnected from operational reality. The key is turning reflection into a data-driven process, not a feelings-based one. Before you look for your new year’s resolutions, it’s therefore wise to sit down and answer these five precise questions. 1. Which goals did we actually achieve last year, and what specific behaviours drove those wins? The most common mistake in goal review is simply ticking boxes. You hit the revenue target – great. But why? While hitting a financial benchmark is great, understanding which tactics got you there is the real win. Instead of simply analysing KPIs, you should compare your initial goals with your final metrics. Analyse the data to understand what's working and what isn't. Was the goal achieved because a specific marketing campaign worked, or did an unexpected market event carry the result? By identifying the exact steps, processes, or resource allocations that delivered the win you can prevent yourself from inadvertently eliminating a high-performing strategy in the new year or, worse still, believing a non-repeatable outcome is a sustainable strategy. 2. Where did we waste the most resources? This question requires an honest, non-emotional audit of your financial and calendar commitments. It’s a review of efficiency, not just income. Beyond the simple rand amount, evaluate the return on investment for projects and tasks. As your accountants we can help by examining your cash flow, expenses, and budget adherence. Which recurring expense failed to generate its expected value? Is there enough money coming in, and are you staying within budget? The next step is to look at which project delivered disappointing results compared to the time and effort it consumed. By identifying the single biggest time waster of the year for you and your key staff, you can cut inefficiencies and free up resources for genuinely productive initiatives. 3. What did the customer or market teach us that changes our fundamental approach? Growth depends on staying relevant and competitive. Your business exists to solve a customer problem, and that problem and the best way to solve it changes constantly. The information you need to adapt is already in your email inboxes, support tickets, and sales reports. First analyse your customer feedback. By looking for common themes of satisfaction and dissatisfaction you can open up areas for new services and pinpoint areas where your process is disappointing your biggest clients. Follow this up with a thorough audit of the latest industry trends and competitor actions. This will help you keep…

“A fresh start is not a place, it is a mindset.” (Jordan Peterson) The beginning of the new year can be more than another Monday morning: it can be a powerful psychological reset button. The ‘fresh start effect’ comes after milestones, like New Year's or anniversaries, that help people believe they can become better versions of themselves – and this applies just as powerfully to teams as it does to individuals.  It’s as if a mere calendar flip wipes the slate clean, making new commitments feel more achievable and reducing the emotional weight of past disappointments.   When your team returns from the holiday break, they aren’t just rested – they are primed for change, and feeling capable of achieving goals that might have seemed daunting just weeks earlier. Capturing the moment: Practical strategies for January 2026 The “fresh start effect” creates a window of heightened motivation, but it is only temporary. Research consistently shows that initial New Year’s enthusiasm naturally fades without proper structure and ongoing engagement. The challenge then is to convert this early motivation into sustainable systems. Timing matters. Schedule your most important organisational initiatives, strategic planning sessions, and team goal-setting meetings in these early weeks of January. The psychological conditions are optimal right now, as your team feels capable, refreshed, and ready for change. Use this window to establish the habits, routines, and systems that will carry you through the entire year. Start by setting specific and measurable goals. Clear and quantifiable goals significantly improve employee engagement and productivity. Break annual targets into smaller quarterly or monthly milestones to prevent overwhelm and provide regular opportunities to maintain momentum and celebrate progress. Team-based goal setting enhances overall performance because it creates accountability, builds collective commitment, and ensures that everyone understands how their individual efforts contribute to larger team goals. Building sustainable momentum beyond January The fresh start effect can be a catalyst for creating systems, habits, and cultural practices that sustain performance all year long. Visual progress tracking taps into our psychological need for achievement and keeps the momentum alive. Implement regular check-ins and progress reviews — at least monthly. These touchpoints maintain accountability, allow for course corrections, and provide opportunities to celebrate wins. Creating fresh starts all year round You can also engineer temporal landmarks throughout the year. Things like monthly reset days, quarterly planning sessions, or team offsite retreats… These moments provide mini fresh starts that can reignite motivation when energy naturally dips. Use these inflection points for team brainstorming sessions, strategic pivots, or launching new initiatives. The psychology works the same way: you’re creating a sense of temporal separation that makes change feel achievable.   The long game: Making 2026 different The new year brings a gift: a team that believes change is possible and feels capable of achieving goals. What you do in the next few weeks – the systems you establish, the habits you build, and the accountability you foster – could significantly impact your team’s performance for the entire year ahead.…

“The outlook is clear: resilience and innovation will define Africa’s growth story.” (Ignatius Sehoole, CEO of KPMG South Africa) “A continent brimming with optimism.” This is how KPMG’s 11th Africa CEO Outlook describes Africa. Among the African CEOs surveyed, 63% expressed optimism about their country’s growth prospects and 78% expressed strong business confidence. Over the short term, 98% expect business expansion and 86% are likely to pursue acquisitions. “African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies,” explains Ignatius Sehoole, CEO of KPMG South Africa. Most CEOs globally (79%) also say they are optimistic about their own organisations’ prospects and the majority anticipate rising revenues over the next three years. Like their African counterparts, they are doubling down on AI, talent investment and ESG as the keys to resilience and growth. Common challenges & shared priorities CEOs, globally and in Africa, face very similar challenges. This has made them more deliberate when deciding how to channel their resources. Investment priorities for global and Africa CEOs  AfricaGlobalCybersecurity and digital risks resilience45%39%AI integration into operations and workflow41%34%Investing in solution and technology innovation for business expansion34%26%Regulatory compliance and reporting31%36%Supply chain resilience and operational continuity24%28%Climate and sustainability initiatives23%16%AI governance, ethics and responsible use20%20%Geopolitical monitoring and analysis20%23% Source: 2025 Africa CEO Outlook - KPMG South Africa In addition, in Africa, CEOs are increasingly prioritising intra-African trade and market expansion on the continent. AI: Top 2026 strategic priority For African and global CEOs heading into 2026, AI is a top strategic priority. 26% of African CEOs plan to allocate more than 20% of their annual budget to AI in the next 12 months, almost twice the global average of 14%. This high level of investment by African CEOs reflects a shift in mindset, with AI being viewed not only as a tool for future growth, but as an immediate lever for operational efficiency, better decision-making, and long-term resilience. To deploy and scale AI, African organisations are faced with three options: build, buy or partner. “Each organisation must weigh the pros and cons of building, buying, or partnering for AI solutions. There is no one-size-fits-all-approach. The right strategy depends on the organisation’s existing capabilities, risk appetite and strategic objectives,” explains Joelene Pierce, CEO Designate of KPMG South Africa. Talent in the age of AI Among African CEOs surveyed, 88% expect to increase headcount over the next year and 62% are focusing on retaining and re-training high-potential talent. The majority (81%) believe that upskilling in AI will directly impact their success and more than two thirds (67%) are redeploying staff into AI enabled roles. These numbers, too, closely reflect global perspectives, with 92% of CEOs expecting to increase headcount next year, and 77% agreeing that AI upskilling will directly impact business success. Already, 71% are focusing on retaining and retraining high-potential talent, and 59% are redeploying staff into AI enabled roles. ESG and sustainability Despite regulatory complexity, African CEOs remain committed to Environmental, Social, and…

"Sometimes the most productive thing you can do is relax." (Mark Black) By prioritising rest and relaxation (R&R) over the holidays, businesses can cultivate a healthier, more productive, and more resilient workforce – which ultimately leads to sustained high performance. Here’s why R&R matters for your business performance… And how to help your team make the most of their December break. 6 ways R&R boosts business performance Prevents costly burnout. Chronic stress leads to burnout, which dramatically decreases performance and increases employee turnover. Regular rest maintains sustainable energy and enthusiasm, protecting your investment in talent. Unlocks creativity and innovation. Downtime allows your subconscious mind to process information and make new connections. Those breakthrough ideas rarely happen amid non-stop meetings and deadlines but rather emerge when your brain has space to wander. Sharpens decision-making. Fatigue impairs cognitive function. Rested leaders and employees analyse situations more clearly, weigh options more effectively, and make sound strategic decisions that move the business forward. Increases productivity and focus. Paradoxically, working non-stop decreases productivity. Taking breaks recharges the brain, improving concentration and efficiency. Research shows that the busier people are, the less creative they become. Enhances problem-solving. Stepping away from a challenge provides fresh perspective. You'll often return with quicker, more effective solutions than if you'd powered through. Improves team communication. When people are tired or stressed, communication suffers. Rest enhances the ability to listen attentively, express ideas clearly, and avoid conflicts caused by fatigue-driven reactions. How to maximise your team’s December leave With the December holidays in a few days, now is the ideal time to encourage your team to make the most of the leave days. A good starting point is to ensure your team knows that taking leave is essential: some people need permission to step away from their responsibilities. Also encourage complete disconnection during leave days, reminding your team members that effective rest means genuinely disengaging from work and doing whatever their heart desires, be that hiking the Otter Trail, spending time with the family or embarking on a DIY project. To reduce anxiety about taking time off and allow everyone to truly switch off when they’re on leave, you need to plan ahead. Work with your team now to establish clear out-of-office dates, handover protocols, and emergency contacts. And ensure projects are covered and clients are informed long before the holidays begin.  Finally, remember to lead by example – when managers and business owners take their own breaks and visibly disconnect, it gives everyone else permission to do the same. Rest well, start well Rest is not an indulgence, it’s a strategic investment in your business’ long-term success. A well-rested team will return sharper, more creative, and ready to tackle challenges with renewed energy in 2026. Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.…

“Christmas is a season not only of rejoicing, but of reflection.” (Winston Churchill) Can you believe November is upon us already? But instead of panicking about Christmas presents, it’s time to get strategic. The end of the year presents a crucial opportunity to settle outstanding matters, measure your business's progress, and establish a strong foundation for a prosperous new year.   This checklist can help you achieve this before December rolls around. Your 10-step checklist Back up your data: Back up essential files including accounting documents, client information, and emails. It’s a good idea to keep at least one copy on the cloud and another copy offline on an external hard drive in a secure location.  Stay on top of employee matters: Update all employee information as well as employee access and passwords to software programs and computer systems. Conduct constructive performance appraisals or feedback sessions and share rewards and recognition for notable contributions.  Connect with your customers: Send festive season wishes and details of your holiday operating hours, and invite your customers to give feedback about your company. Add an out-of-office notification on all your communication channels with specific dates as well as an emergency number. Understand your financial position: Management accounts or reports like the income statement, balance sheet, and cash flow statement provide insight into the expense patterns, profit margins, revenue trends and financial health of your business, enabling informed decisions.  Understand your tax position: Make sure you know your various tax obligations, liabilities and deadlines, and any tax deductions and credits you may qualify for before year-end.    Review marketing and sales efforts: Evaluate which strategies worked, which didn't, and why.  Collect outstanding invoices: Get your December invoices out as early as possible and don't let unpaid invoices carry over into the new year. Follow up on overdue payments now to boost cash flow and start fresh in January.   Verify supplier information: Update your supplier database by confirming contact details, while also evaluating supplier relationships and negotiating better terms.  Take stock: Take a physical inventory of all equipment, supplies and stock to better meet customer demand, identify any discrepancies in your records, prepare tax returns and insurance proposals, and effect necessary repairs, maintenance and upgrades. Set a specific day for the count, organise the space, record quantities, and calculate total value.  Audit your digital presence: Test every link on your website, check your contact forms, review your social media profiles and call your business number to ensure everything works. Start 2026 off on the right foot Once you’ve ended the year right, you can start focusing on what’s to come. Use your financial statements, marketing and sales reviews, customer feedback and team input to evaluate progress on last year's goals and to set new ones.  Create a high-level action plan for each goal to guide your progress throughout the coming year. Please contact us if you need any help with this. Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any…

“The key is not to prioritise what’s on your schedule, but to schedule your priorities.” (Stephen R. Covey, The 7 Habits of Highly Effective People) In business it’s too easy for an entrepreneur or business leader to mistake being busy for being effective. Working long hours with back-to-back meetings can look like productivity – but without clarity and boundaries, the important work, may not actually be getting done.  According to a study conducted by McKinsey, 61% of senior executives believe that at least half of the time they spend making decisions is unproductive. So how can you stop this happening to you?  Time-saving strategies are an essential tool for sustainable modern leadership. Streamlining processes, delegating effectively, and embracing automation can transform your day. Done right, these tactics free up energy for strategic thinking, innovation, and decision-making – all of which can lead to greater growth in your business. Here are some evidence-based tips every business leader should employ to better utilise their time.  1. Prioritise ruthlessly One of the most effective ways to save time is by focusing only on tasks that deliver real impact. The Eisenhower Matrix (dividing tasks into urgent vs. important) remains a powerful tool. Many leaders fall into the trap of handling urgent but low-value work, rather than carving out time for strategic priorities. The fix? Review your to-do list daily and cut or delegate anything that doesn’t directly move the business forward. Treat your time as an investment portfolio and put more into the high-return opportunities. 2. Delegate with trust Effective delegation is a skill, not just because it frees up your time, but also because it empowers your team. Too many leaders hoard responsibilities out of habit or fear that standards won’t be met. But this can bottleneck workflows and burn time on details that others are capable of handling. You should be clearly defining expectations, providing resources, and then stepping back. By learning to fully trust your team you free yourself up for higher-level thinking and decision-making. Just as importantly, you give staff room to grow, in the process increasing employee engagement and retention. 3. The algorithm is your friend Everyone’s talking about AI these days, and with good reason. Technology can be a business leader’s greatest ally. From scheduling tools to delivering automated reporting, letting technology take care of the smaller tasks can strip hours of repetitive labour from your week. The upfront effort and cost of setting up automation pays dividends quickly. According to a Deloitte survey, businesses using automation in finance and operations reported time savings of between 60% and 80% in some high volume, transactional finance processes. As your accountant, we can help you adjust budgets to cater for tech upgrades and installations, and the adjusted workflows that will surely follow. Leaders who resist these tools risk drowning in avoidable admin. 4. Guard your calendar Your calendar is a reflection of your priorities. Yet many leaders allow it to be hijacked by endless meetings. A practical fix is to…

“Beware of little expenses; a small leak will sink a great ship.” (Benjamin Franklin) Extending 30-, 60- or 90-day payment terms may seem like a simple trick to help your sales teams convert sales, smooth negotiations and boost customer service. What you may not recognise, though, is that those terms are not neutral commercial niceties – they are a form of credit. When your business supplies goods or services today and accepts payment weeks or months later, it has effectively provided an unsecured loan to the buyer. That “invisible loan” has measurable costs: higher working-capital needs, lost interest income, distorted pricing decisions and elevated credit risk. When you sell on extended terms, “accounts receivable” grows and cash on the balance sheet shrinks until the buyer pays. That increases days-sales-outstanding (DSO) and raises the working-capital requirement. If you borrow to cover the gap (common for seasonal businesses or those with tight margins) the interest paid on that borrowing is a direct cost of the terms you offered. Even when you don’t borrow, the opportunity cost remains: cash not received cannot be used to reduce debt, invest in higher-return projects, or fund inventory when demand spikes. Over time the cumulative burden of routinely extended terms reduces agility and margins. Unfortunately, many clients demand extended payment terms, and your competition may be prepared to accede to their wishes. So how do you ensure you keep the business without going out of business yourself?           1. Price the finance Treat longer payment terms as a priced service. Build a transparent financing fee into orders that use 60- or 90-day terms, or publish two price lists: a net price for immediate payment and a financed price for deferred settlement. Customers accept explicit fees more readily than hidden margin increases, and your finance team can model return on capital precisely. 2. Offer structured early-payment incentives Instead of unconditional long payment terms, offer predictable early-payment discounts or dynamic discounting tied to actual payment date. A 0.5–1.0% discount for payment within 7–10 days often costs less than the buyer’s short-term borrowing and converts receivables into near-cash for you. 3. Underwrite and limit credit formally Move from ad-hoc allowances to formal credit applications and limits. Require a minimum credit assessment for extended terms, set credit lines tied to payment performance, and review limits at set intervals. For new or higher-risk customers, insist on shorter terms or staged delivery until a track record is established. 4. Design payment terms as part of commercial deals Make terms a negotiation item linked to value. Trade extended terms for commitments: volume guarantees, longer contract terms, staged milestones, or partial upfront payment. Where applicable, split deals into an upfront deposit and a deferred balance tied to delivery or performance to reduce unsecured exposure. 5. Use technology and supply-chain finance options Make payment easier with accurate, timely electronic invoicing, one-click payment links, and multiple payment methods. For larger B2B (business-to-business) accounts, consider invoice finance or supply-chain finance platforms. They enable buyers to settle invoices early and…

“Paying yourself isn’t selfish, it’s sustainable. The goal is to strike a balance that supports your personal life without compromising the growth of your company.”  (Salim Omar, CPA and serial entrepreneur) Many founders see skipping their own salary as a noble way to fund growth. In reality, underpaying yourself often backfires. Research shows that 82% of small business failures stem from cash flow problems and unpaid founders can mask true costs, distort margins, and create hidden financial pressure – and that’s just the start of it. What’s the real cost of your time? When founders refuse to take a salary, they are effectively treating their own time as free. In the scramble to conserve cash, they tell themselves they can wait to be paid until profits improve. But unpaid labour is not free. By not recognising this cost, you skew the economics of your business. Imagine you hire a manager to take over your duties. Their salary would immediately appear as a line item. By not paying yourself, you are masking a true expense. This can mislead investors, lenders, and even yourself about whether the business model is sustainable and prevent changes that need to be made. Pricing, margins, and growth targets all look healthier than they are, setting you up for shocks later.  This is why savvy investors prefer to see founders compensated fairly. An unpaid or underpaid founder may seem admirable in the short term, but it raises questions about whether they and the company can endure the demands of growth. Burnout is real Founders who delay setting a salary usually do so because they are waiting for a day when they feel the business has “earned it.” The problem is that this line keeps moving. There’s always another milestone, another round of investment, or another expense that feels more urgent. Meanwhile the founder is likely eroding personal savings, undermining their career advancement elsewhere and causing stress and sleepless nights in their own home. A survey by Kruze Consulting of over 200 venture-backed start-ups found that business owners who underpaid themselves for too long often burned out and quit before their companies reached key milestones. By paying yourself out, and minimising the financial risks at home, you can avoid the same fate. Tax benefits Not paying yourself a salary isn’t doing the company as many favours as you expect. All expenses put through the company (including salaries) reduce your company’s tax burden, meaning that the benefit you’re providing the company by not taking a salary is significantly smaller than you think.  As a general rule, it’s advised that you take 50% or less of the business’ net profits as compensation and save the rest for reinvestment, but each company is different. As your accountants, we can help you to structure the salary you pay yourself to ensure that the greatest benefit is achieved for all concerned – thereby lessening any guilt you may feel for taking a salary before the business is “ready”.  The effect on morale One…

“Taking bold action on climate change simply makes good business sense. It's also the right thing to do for people and the planet.” (Richard Branson) Climate change impacts the fundamentals of business operations. Rising heat affects productivity, floods and storms damage infrastructure, droughts disrupt supply chains, and new regulations increase compliance costs. Many leaders still believe their sector will be spared, but no industry is truly insulated. Just as one-third of startups fail because they never properly defined their target market, businesses that fail to assess climate risks may find their models undermined by forces beyond their control. The message is clear: failing to future-proof your business, will result in extremely hard times ahead. Start with the risks you’re facing The first step is to identify which climate risks could most directly affect your operations.  These can be physical (think floods, wildfires, and extreme temperatures), or transitional, such as regulatory changes and shifts in customer expectations.  According to the latest prediction models, South Africans can expect a hotter, more erratic climate with the country warming at about twice the global average. This means more very hot days that will hurt worker productivity and equipment reliability. On top of this, the country is also experiencing heavier downpours with increased flood damage. These damaging floods, such as those seen KwaZulu-Natal in April 2022 and the Western Cape in September 2023, will result in enormous insurance and economic losses and prolonged business disruption. Despite the flooding, the country is also not in the clear when it comes to water stress. The 2015–2018 Cape Town “Day Zero” drought was devastating for car wash businesses but a boon for borehole drillers. Day Zero may have been avoided, but there will be more droughts in the future. All of these issues can lead to stock and agriculture failures, infrastructure collapse and process interruptions. A lack of water, for example, creates cleaning and hygiene issues as well as lower staff productivity. Insurers in SA have been reporting increasing weather losses and rising catastrophe claims, which will continue to feed through to higher premiums and excesses and tougher underwriting in high-risk zones. You can only build a realistic plan once you understand exactly where your exposures lie. Build a climate profile for your business Once you understand the risk categories, create a profile detailing how they intersect with your company. You need to consider your location, your sector, your suppliers and your employees. A warehouse on a floodplain carries different risks from a retail store in a heat-stressed city. Manufacturing firms may depend on inputs that are vulnerable to drought or fire, and employees may struggle in adverse weather conditions. Many exposures sit within the supply chain, where a small disruption upstream can ripple through global markets. For example, higher than usual temperatures may result in crops failing, or greater costs for HVAC and cold logistics services. Have you factored in these costs being passed on to your business?  This profile should be updated regularly, as conditions, regulations,…

“Accounting is the language of business.” (Warren Buffett) Increasingly, banks and other organisations are requiring businesses to submit up-to-date management accounts when applying for finance. This is because these compact financial reports enable business analysis even when the latest annual financial statements are not yet available. Management accounts also offer owners and managers timely, accurate and actionable financial insights that facilitate performance evaluation, smart management decisions and informed planning – all of which can transform how your business operates and grows.  What are management accounts? Management accounts are a set of summarised financial reports. They’re similar to annual financial statements but they aren’t as formal, and they’re produced much more frequently – usually monthly or quarterly.  They’re all about providing relevant financial data for informed business decision-making. As such, there’s no fixed format. Instead, management accounts should summarise and combine the financial reports you need to make smarter decisions. These financial reports might include some or all of the following. What can be included in management accounts? Income Statement (Profit & Loss) Detailed breakdown of income and expenses Measures performance over a specific period Balance Sheet Provides a snapshot of the financial position (assets, liabilities, and equity) at a specific point in time Cash Flow Statement Tracks actual cash movements Monitors what funds are available, incoming, and required for outflows Key Performance Indicators (KPIs) Quick performance assessments Trend Analysis Comparisons with previous periods and industry standards Variance Analysis Compares actual figures against budgets Other Debtors and creditors reports Payroll reports VAT and PAYE reconciliations Departmental reports for individual business unit performance   What can management accounts tell you? Performance Comparisons with previous years and industry standards Results analysed against KPIs Are strategies working? Early signs of negative trends Areas for improvement Cash Flow Early warnings of cash flow pressures Avoid cash flow problems Profitability Where is profitability strongest? Where to boost margins or reduce costs New business opportunities Operational Insights Top-performing products and customers Guide decisions about pricing, resources, and reward strategies Control Monitor overheads and stock levels Early detection of irregularities / fraud Risk management and governance Accurate, current records reduce audit fees and enable smarter tax planning Planning & Decision-Making Up-to-date financial reports that support smart strategic decisions The right set of management accounts can do more than record numbers – it can provide meaningful insights that help your business to perform better, plan ahead, and stay in control. We can tailor your management accounts  We tailor management accounts to your company’s exact reporting requirements, turning your financial data into actionable insights that can not only improve operational efficiency but also create a solid foundation for sustainable growth in your company. Think your business could benefit from a management accounts overhaul? Drop us a line! Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and…

“Networking is not about just connecting people. It’s about connecting people with people, people with ideas, and people with opportunities.” (Michele Jennae, business coach and author) Most entrepreneurs know they should be building a network, but not many know this should be a core business strategy. Building and maintaining the right relationships can lead to improved contracts, revenue gains and business growth, provided you know how to use them. The good news is, we aren’t asking you to go out and become a natural networker. You just need to put a few key habits in place and start treating networking as a long-term business investment. Here are six common misconceptions that, when remedied, can help turn handshakes into business growth. 1. “I go to networking events, but I never see any benefits” This is a common complaint, but it’s seldom the event that’s at fault. Many people see no benefits because they approach networking events passively. They show up, have a few chats, hand out business cards, and hope someone follows up. That’s not networking. That’s exposure.  To make events pay off, you need to arrive with a goal, and steer conversations intentionally. Then afterwards, you need to follow up promptly. This doesn’t mean that you need to sell to everyone in the room. Often it’s far better to listen to people’s needs and identify just where you might be useful. A short, personalised follow-up message, the next day could then unlock a real business opportunity. 2. “I simply don’t have time to network” Networking doesn’t have to be a drain on your time. If you’re chatting to the right people, just one or two strategic conversations a week might be all you need. The key is to start thinking of networking as business development – everyone has time for that. If you can carve out 30 minutes a week to check in with past contacts, make introductions for others, or send a useful article to someone in your network, you’re already doing more than most. The results won’t be instant, but it all adds up. 3. “My industry doesn’t work like that” Whether you're in logistics, consulting, construction, or retail, your next deal could still come from a friendly introduction. The channel might differ, but the principle is the same. People do business with people they trust. That old saying, “it’s not what you know, but who you know” has never been truer. No industry is too technical or regulated for word-of-mouth not to matter. 4. “I’ve already got a good network” Knowing people isn’t enough. That network of people needs to be activated. This means that you need to make yourself visible, helpful, and memorable. Stay top-of-mind by making introductions, sharing your insights, or simply checking in without hoping to make a sale. The goal isn’t to extract value, it’s to keep yourself fresh in their minds so you’re the first person they think of when they do need something. And remember: relationships decay over time, so make…

“Too many businesses only realise the value of intellectual capital when a key person leaves – or a competitor copies what they’ve built.” (Alicia Mendes, author of Futureproofing Through People) In the rush to raise capital, improve profitability or streamline efficiency, business owners often miss what truly drives their success: the knowledge, relationships, and systems that power everything behind the scenes. Whether you're a one-person start-up or a growing enterprise, your intellectual capital is the secret key to your future triumphs. It is therefore vital that this intangible resource is protected before it vanishes. Doing so could be the most profitable decision you ever make. Understanding intellectual capital Intellectual capital is grouped into three categories: human capital (skills and experience), structural capital (systems, intellectual property (IP), databases) and relational capital (customer relationships, brand reputation and partnerships).  A recent study by Ocean Tomo revealed that intellectual capital now constitutes approximately 90% of the S&P 500's market value – a significant increase from 68% in 1995. That includes patents, know-how, trade secrets, brand equity, and team knowledge. With numbers like this, it’s absolutely essential that you audit your intellectual capital just as you would your balance sheet. What processes are unique to you? Who on your team holds key relationships or institutional memory? Are your best ideas captured anywhere, or do they leave when someone resigns? Culture and contracts You have to understand that your people are the carriers of knowledge. Their experience, relationships with clients, and systems know-how can be invaluable. Unless you plan carefully, when someone leaves they often take that intellectual capital with them.  Retention doesn’t just come from compensation. It comes from fostering a culture of recognition, curiosity, and inclusion. The 2023 Gallup “State of the Global Workplace Report” stated that, “employees who have had opportunities to learn and grow are 2.9 times more likely to be engaged.” It is therefore essential that you ask your accountant to make space in your budget for learning programs, and other leadership developing initiatives.  But culture alone isn’t enough. It’s important to also back up your culture with a legal framework that protects you. This includes NDAs (non-disclosure agreements), IP assignment agreements, and clear clauses in employment contracts covering confidentiality and ownership of work. Capture knowledge before it walks Most businesses operate through a web of undocumented processes from verbal know-how, to “we’ve always done it this way” workflows. That’s risky. Developing internal playbooks, knowledge bases, and SOPs (standard operating procedures) is one of the most effective ways to turn intellectual capital into something transferrable and scalable. Use tools like Notion, Confluence, or even simple shared drives to document repeatable knowledge. Then embed this into your onboarding and training cycles. Nurture innovation and learning Intellectual capital isn’t static. Like any asset, it can appreciate or depreciate. One of the best ways to nurture it is by creating space for learning, experimentation, and cross-pollination of ideas.  Encourage teams to attend industry events, run internal hackathons, and allocate budget to learning and development.…

“Defining your target market is about understanding motivations, challenges, and goals. Without this, your messaging falls flat and your marketing budget burns fast." (Elena Kwan, Founder of MarketLens Consulting) Fundamentally, businesses start because business owners believe they see a gap and aim to fill it. Their target market is built into the essence of the business. And yet, statistics show that at least one third of those business owners were wrong all along. Many entrepreneurs think their product or service is for “everyone”, but trying to serve everyone usually means you end up serving no one well. Identifying and refining your real audience is critical to creating effective marketing campaigns, building better products, and sustaining long-term growth. Here are five practical tips to help you better define and refine your target market. 1. Start with the problem you're solving As a business owner, the first thing you need to do is identify the specific problem your product or service addresses. Ask yourself: Who has this problem? Who is actively looking for a solution? The more precisely you can answer these questions, the closer you are to identifying your core market. Once you understand the problem, look at existing customer data or run surveys to determine the people most likely to benefit from your solution. Don’t make assumptions. Focus on the why behind their purchasing decisions. 2. Build a customer persona (and revisit it often) A customer persona is a semi-fictional profile of your ideal customer based on research, data, and interviews. Include details like age, job title, income, goals, frustrations, preferred social media platforms, and buying behaviours. Giving your customer a name and a story will help you recall the important aspects of the person you are serving. But remember, a persona isn’t static. As you grow and collect more data, revisit and refine this profile. According to Sales For Startups, companies that use updated personas achieve 73% higher conversion rates than those that don’t. 3. Segment your audience Not every customer will have the same needs or behaviours – and just because someone falls into your target market, doesn’t mean they are automatically going to buy from you. Audience segmentation allows you to create more tailored marketing strategies. Start with basic segments like age, location, or purchase behaviour. Then drill down into psychographics such as values, attitudes, and lifestyle. For example, two people buying your eco-friendly cleaning product might do so for different reasons: one for health reasons, the other out of environmental concerns. Understanding these motivations enables you to craft more resonant messaging. 4. Use analytics to refine your focus Data should drive your decisions. Use website analytics, social media insights, email open rates, and CRM (customer relationship management) data to understand who’s engaging with your content, who’s buying, and who isn’t. Look for patterns: Which landing pages convert best? Which demographic clicks through the most? Your accountant can help you lift accurate sales data for different periods. This can be used to track the success or failure of special…

“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” (Simon Sinek) Employee engagement. It determines so much about the direction of a company, its staff productivity and how likely it is to succeed. According to a Gallup poll just 23% of South African employees are actively engaged, and the support offered by your company during difficult times is a key predictor of whether your employees are doing better or worse than that. Ignoring a personal crisis or mismanaging it can result in diminished trust, high turnover, and costly legal complications. On the other hand, getting it right can transform a tough moment into a team-building exercise that drives loyalty across your enterprise. Here are our five tips for handling an employee's crisis with care, compassion, and professionalism. 1.  Listen without judgement The first step in supporting someone through a crisis is simply to listen. Not all employees will be forthcoming, and many will fear repercussions or shame if they do share. By creating a psychologically safe environment where they feel heard and respected, you allow the conversation to unfold in a way that will allow you to help.Listening does not mean solving. Ask what they need. Avoid overpromising or reacting too quickly. This is their experience, not yours, and your job is to provide space for them to express it. 2.  Tailor your support to the individual There is no one-size-fits-all approach. While one employee might benefit from time off, another may prefer flexible hours or a change in responsibilities. Consider what reasonable accommodations can be made, in accordance with HR policies and employment laws. What’s important is that the support feels personal and meaningful, not generic or performative. You will likely want to speak to HR or, in a smaller business, ask for outside advice. 3.  Communicate clearly (and privately) When an employee’s going through emotional turmoil, one of the most challenging aspects is managing the line between transparency and confidentiality. While you may need to inform certain stakeholders about changes in workflow or responsibilities, the nature of an employee’s crisis should never be discussed openly or speculated about in the office. Establish clear, private channels of communication and check in regularly. Let the employee know what’s being shared and with whom – and always ask for their consent where appropriate. Trust is fragile and you need to protect it. 4.  Support your other employees too It’s not just the employee in crisis who needs help – often their direct manager, or co-workers will also be feeling overwhelmed, overworked or unsure how to proceed. Offering management training on crisis response, mental health first aid, and compassionate communication can improve outcomes for everyone involved.Managers are on the front line of employee wellbeing, and giving them the right tools helps avoid missteps that could escalate the situation. 5.  Make room in your budget for empathy There’s no denying that crisis support can come with financial implications, from offering extra leave to making…

“Trust the young people; trust this generation's innovation. They're making things, changing innovation every day.” (Jack Ma, Co-Founder Alibaba Group) South African businesses are always looking for ways to foster growth and innovation while still reducing costs.    One way to achieve both is to employ young people. Young workers bring unique advantages that can transform your organisation. What’s more, the government subsidises part of the employment costs for qualifying young employees through SARS’ Employment Tax Incentive or ETI.  What young employees can bring to your business Tech savvy: More comfortable with new technologies, young employees can accelerate digital adoption in your business. Fresh perspectives: Young employees often introduce innovative approaches and creative solutions. Adaptability: Young people tend to be more flexible and better equipped to respond to sudden changes and unexpected circumstances. Fast learning: Fresh out of formal education, young people often learn more readily and are eager to apply their skills. Energy and enthusiasm: The energy and optimism of younger workers can positively impact team dynamics and workplace morale. Future-proofing: Young employees help businesses keep up to date with technological developments, emerging trends and the millennial and Gen Z markets. How the ETI benefits local companies The ETI makes it more cost-effective for companies to employ young people and to harness all the benefits mentioned above. Essentially, this incentive subsidises part of your employment costs for qualifying young employees for two years. There is no limit to the number of qualifying employees that an employer can hire. The young employees’ wages are paid by the employer in full, and the ETI is claimed by reducing the employer’s monthly Pay-As-You-Earn (PAYE) liability by the calculated ETI amount. This creates immediate positive effects on your cash flow. It goes without saying that hiring more employees at a lower cost – and the boost of youthful energy they bring – will positively impact productivity and innovation in any company. Many South African businesses use the ETI to create a competitive advantage, build a talent pipeline for the future, and enhance their Corporate Social Responsibility credentials. How the ETI works   * Adapted from SARS  Common ETI pitfalls Claiming for non-qualifying employees Incorrectly calculating ETI amounts Failing to adjust claims after the 12-month threshold Not maintaining proper payroll records  Overlooking the ‘monthly remuneration’ definition and required adjustments. How professional assistance makes a difference The ETI offers significant benefits, but it also comes with considerable compliance requirements and potential penalties for incorrect implementation. Our team of experienced accountants and tax professionals stays up to date with the ever-changing regulations, uses professional systems to identify qualifying employees, accurately calculate claims, and keep proper records, and is ready to assist if any issues, compliance checks or audits arise.  In this way, we ensure your business can maximise the ETI benefits – and the benefits of having young employees - while minimising compliance risks. Speak to us if you need help taking advantage of the ETI. Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can…

“Too often we hold fast to the clichés of our forebears. We subject all facts to a prefabricated set of interpretations. We enjoy the comfort of opinion without the discomfort of thought.” (John F. Kennedy, former US president) Humans are creatures of habit. We form opinions and sets of actions that we use as shorthand for all future decisions. We become trapped in loops of our own making and fall prey to common human ways of thinking that may save time, but ultimately hurt us. In business, these sorts of cognitive biases can damage relationships, and lead companies down dangerous paths. The sad thing? Most of us don’t even realise they exist. Here are five cognitive biases that could sink your business if you’re not careful. 1.  Favouring evidence that backs our beliefs Back in the days of VHS, video rental behemoth Blockbuster was offered the opportunity to buy a start-up that distributed their videos by mail, and were building the infrastructure to stream videos online. Convinced that the video store model was the only way to go, the board rejected the opportunity to purchase Netflix and over the next few years Blockbuster went bankrupt. While it’s tempting to see this as a sign of foolishness, the reality is that all of us are prone to undervaluing data which contradicts our beliefs and favouring that which reinforces it. These confirmation biases can only be overcome by actively seeking out disconfirming evidence and encouraging a culture of robust debate among your employees. 2.  Doggedly holding the line In 2008, signs began to leak out across the American economy that a large collapse was coming. Banks were overextended and the money from loans was not being returned fast enough – but many large businesses held the line and did not prepare for failure. The information they’d been given for years suggested the loans model worked and they did not adjust their behaviour as the data first trickled, and then thundered in. The result? An economic collapse for the ages. A 1974 study by Tversky and Kahneman explains their decision making with the anchoring bias. This study showed that even when presented with later information, people's numerical estimates were significantly influenced by irrelevant initial figures. The first information is given much more weight than later information, even if the later information comes from stronger sources. Luckily this bias is easy to overcome, by simply distrusting the early data – always compare it carefully with what comes later. 3.  Too much self-belief Convinced their market dominance would carry them through, and unimpressed with the new digital cameras, photographic film manufacturer Kodak continued business as usual in the early 2000s. Despite their position as market leader and an early pioneer, these decisions lead to their eventual complete collapse. Kodak is a clear example of the overconfidence bias, which Bazerman and Moore detailed in their book Judgement in Managerial Decision Making.  Overconfidence bias is our very human tendency to overestimate one's own knowledge, skills, or the accuracy…

“Reviews aren't just about feedback, they're about building a relationship with your customers." (Oprah Winfrey) According to a recent survey, 91% of people regularly or occasionally read online reviews, and 84% trust online reviews as much as a personal recommendation from a friend. There’s no doubt that reviews are having a moment.  The challenge comes when you learn that it can take as many as 20 good reviews to overcome a single bad one. Little wonder, then, that many companies try to focus on encouraging unhappy customers to remove their bad reviews, while generally neglecting the good ones, save for a short thank you message. This may, however, be short-sighted as using reviews correctly, can change the entire good vs bad formula, strengthen your company, improve sales and improve your bottom line. Here are our tips for maximising those good reviews.  1. Maximise your visibility online Gone are the days when search engine optimisation (SEO) was purely about the words on your website. Google is now working tirelessly to ensure that good companies with great customer service are more visible online. Customer reviews can be used in your online content to add credibility and “expertise” and therefore improve the way Google views your content. But reviews can’t simply be shoe-horned into your site – they must be incorporated in a way that’s justifiable and organic. Remember, you can no longer simply write your own reviews as Google tracks which reviews are left when and by whom. Real people leaving reviews in a believable way boost rankings – but fake ones hurt them. 2. Boost your conversion rates Conversion rates are probably the single most important stat for an online business and your reviews can be used to make a significant impact. Research conducted by the Medill Spiegel Research Center has revealed that displaying reviews across your website has the potential to boost conversions by as much as 270%. Because of the weight users give to the views of others, simply seeing a good review boosts credibility and trust and encourages users to take the next step. 3. Don’t hide bad reviews, use them to boost trust Earlier we spoke about how many companies try to remove their bad reviews. This is not necessary. Everyone’s going to get a bad review from time to time, and your customers know this. Leaving your bad reviews up – along with your clear responses to try and fix the issues – has actually been shown to boost customer confidence. People like to know that if something goes wrong, you’ll do whatever you can to fix it. These bad reviews help them to see that far better than if you simply sweep them under the carpet.  4. Good reviews can lead to better hires Your reviews can also be used to attract better staff. A 2024 study by Deloitte showed that 44% of millennials and 49% of Gen Zs consider a company's values before accepting a job. People want to work for likeable companies. Including…

“The measure of intelligence is the ability to change.” (Albert Einstein)  Change can be uncomfortable and often we humans love to avoid it. In business, however, being brave enough to embrace change could be the difference between going under and thriving. All business owners should be constantly on the lookout for opportunities to improve their products, services or offerings.  A good pivot into a new area, technology or even target customer base could be just the ticket your business needs to position itself for a very bright future. But how do you know when it’s time to change tack? Look out for these six signs… 1. These are not the results you were looking for Achieving results takes time. But if you’ve held the line consistently for a year and the business isn’t expanding – or worse, is in decline – it’s probably time for a change. Don’t let emotions take over – now is the time to be honest with yourself and take a long, hard look at your marketing plans, and your product. Most good pivots don’t come from hard shifts but from subtle changes to products and offerings. If the customers aren’t biting, now is the time to ask them why.  2. The market has changed We live in an era of technological advancement and massive change. If you’re still doing things the way you did them five years ago (or perhaps even a year ago, depending on the industry) it might be time to start looking at changing. As a business owner, you need to constantly make adjustments to your service or product to suit changing market conditions. If a new technology or way of doing business has popped up, you need to understand how it impacts your business and develop a plan to match the new conditions. If you can’t, then it may be time to think about moving into an entirely new industry or shutting down entirely. 3. People can’t see your vision In business, we often speak about the elevator pitch – the quick two-minute description of what your business does and how it does it differently. If your elevator pitch is generally met with blank stares, and you never get enthusiastic responses, then you either need a new elevator pitch or a new business model. 4. You’re constantly exhausted Working hard to get a new business going is par for the course, but if you’re putting in the hard hours and it’s not catching on, then something is going wrong. The pivot you need may be something as simple as better marketing, or a slight adjustment to your product – but it’s important to act sooner rather than later. 5. You’ve got cash flow issues Temporary cash flow issues are one thing, but if you’re permanently battling, then something has gone wrong. Perhaps your pricing structure is wrong, or perhaps you are in the wrong game altogether. Persistent cash flow issues are a sign that you need to rethink your business model.…

“He who buys what he does not need, steals from himself.” (Swedish Proverb) Many think of corporate travel expenses as being a non-negotiable, and expensive part of doing business. The thing is, it is possible to cut back on travel expenses without cutting out the necessary requirements and little luxuries. Here are our four top tips for saving money on your corporate travel account. 1. Plan ahead Most corporate travel is not an emergency. Whether you need to pitch to new clients in London, attend a conference in Los Angeles or visit a supplier in China, proper planning can save a great deal of money. All travel expenses increase the closer you get to the departure date. Simply looking at the necessary travel for the year ahead, scheduling it in advance and booking comfortably ahead of time will save you a significant amount. Flights are generally at their cheapest between 30 and 60 days before departure.  Taking this one step further, you can also make sure you aren’t travelling during peak times. If you need to visit your clients every second month, make sure your trips don’t coincide with large conferences or entertainment events as these can drive up hotel costs.  For domestic travel it makes sense to try and fly on Tuesday, Wednesday or Thursday, as flights are generally cheaper than on other days. Early morning or early afternoon flights (before 3 PM) are not only cheaper, but also tend to have fewer delays and cancellations – which means there’s less chance of additional accommodation or car hire charges. 2. Set up a travel policy In order to effectively plan ahead and book all that’s needed, you need to implement a company-wide travel policy. This policy should cover all aspects of travel including:  The booking process for accommodation, flights, transfers, vehicle rentals and everything else. Expenses and meal allowances. The approval and reimbursement process. 3. Be as loyal as possible Hotels and airlines offer loyalty programs that reward their most frequent travellers with perks like airport lounges and dining discounts, but they also offer important benefits for the business. Airline loyalty members often get to cancel their bookings or change dates at a reduced fee, and the frequent flyer miles and rewards can add up to other free travel benefits. Hotels are much more forgiving on loyalty members when it comes to late and early check-ins and room upgrades. And they typically offer a guaranteed discount on their room rates. 4. Use an agent Travel agents are basically a free (or at least very cheap) service for the people who use them. Often the prices are the same whether you book yourself or do it through an agency because the agent commissions are already built into the prices of the rooms, flights and car rentals. Booking with an agent can save your HR, receptionist or PA valuable hours that could be put into something more productive.  Agents are already experts so paying them a small service fee (if required)…

“As an entrepreneur, one of the biggest challenges you will face will be building your brand. The ultimate goal is to set your company and your brand apart from the crowd.” (Ryan Holmes, Founder and CEO of Hootsuite) Trying to get a business off the ground is challenging. Every step of the process requires a mountain of time and investment. Choosing between going it alone or involving others as partners or investors is a decision that should not be taken lightly. In this article we’ll break down the options available and take a look at the pros and cons of each. 1. Going it alone Self-funding, also known as bootstrapping, is when a business owner goes it alone, providing all funding, time and energy themselves. Pros of bootstrapping Whether you’re finding the money from savings, or your monthly pay cheque at another job, bootstrapping is perfect for the entrepreneur who wants full control over their business. With no partners on board, all decisions are yours to make, and all the profits, achievements, and losses are yours alone. Apart from the independence it offers, bootstrapping can also be easier. There’s no time spent filling in application forms or putting together pitch decks to impress would-be investors. There is also no accrued interest on the debt involved and no loss of equity in your own business. This makes running the business far simpler. Cons of bootstrapping On the downside, bootstrapping can be much slower. Each cent spent on the business needs to come from your own pocket and so necessary investments need to be prioritised from month-to-month. Things that are essential for success may need to wait another month – and this can mean your break-even point takes longer to arrive. Bootstrapping also increases your chances of failure, as some expenses simply can’t wait if you want to make money. Bootstrappers are also more likely to become frustrated with the slow pace and give up.    2. Tapping into venture capital Venture capital (VC) is one of the most popular routes for finding funding in entrepreneurship. This is where a company or an individual provides funding to your business in exchange for a percentage of ownership. Pros of VC Venture capitalists are able to offer significant investment in the company and can often provide all the funding necessary to take the company from start-up to established business. What’s more, venture capitalists likely come with significant experience in business and a strong network of contacts. Cons of VC Working with venture capitalists requires that you give up some control of your business. This new partnership can create friction if the person who pays the bills doesn’t share your ideas of where the company should be headed. In some instances, their investment may even give them a majority stake and the dream you had of being your own boss might now be a thing of the past. 3. Touched by an angel (investor) Angel investors are also happy to provide the financing necessary for…

“The unfortunate need people who will be kind to them; the prosperous need people to be kind to.” (Aristotle) Strategic business partnerships are an integral part of any successful business and yet very few entrepreneurs think of the opportunities which arise from partnering with non-profit organisations. Collaborating with NGOs and charities has been shown to offer many of the same benefits achieved through regular business partnerships – as well as a few additional, and perhaps unconsidered ones. Here’s why helping others may also end up helping you. Make the circle bigger Like any other business partnership, aligning with a non-profit gives businesses shared access to one another’s contacts and opens up doors that previously may have been locked, or not considered. By hosting combined events you’re sure to not only meet the leaders of other companies in your position, but may also uncover new talent, enthusiastic and empathetic leaders and creative mentors and volunteers. Greater brand exposure By moving into these new areas, brands stand to not only make valuable business allies but are also likely to expand their own customer base. By partnering on events or activities with a non-profit, your brand immediately becomes exposed to the non-profit’s audience in a way that’s real, and likely to generate a warm first impression. According to research conducted by Consumer Goods, 82% of shoppers want a brand’s values to align with their own. When a charity’s audience sees you offering your support, they know you care about the same things they care about. Improve employee happiness In a survey commissioned by former Unilever CEO Paul Polman in 2023, a whopping 76% of respondents said that they want “to work for a company that is trying to have a positive impact on the world”. The study further found that more than half of employees said that “they would consider resigning from their job if the values demonstrated by their employer did not align with their own”, while 35% of respondents claimed to already have quit a job for this reason. Improve your image How your business is presented in the media impacts consumers, current and potential employees, and prospective partners. Good press is therefore vital for business expansion – and assisting a non-profit is a great way of ensuring that what’s being said is positive. When you help a charity, you put your brand values and ethics front-and-centre for people to see and admire. This goes a long way toward fostering goodwill toward your company and building positive brand association. Reap the tax benefits There can also be tax benefits to assisting charities and non-profit organisations. The donations made can be in cash or kind, and must be made to qualifying public-benefit organisations (PBOs). These organisations are registered with SARS and will issue donors with a certificate in terms of section 18A of the Income Tax Act. The total deduction must comprise no more than 10% of your taxable income for the given year of assessment and must be made with no…

“There are no secrets to success. It is the result of preparation, hard work and learning from failure.” (Colin Powell, United States Secretary of State) Of course you plan for your business to grow. But in an environment of constant change, it can be hard to know where to place your energy. These three focus areas will help you position your business for growth, regardless of the external circumstances. 1. Clean up your finances A business that’s ready for growth is one that understands its finances. How much money can you afford to spend on advertising? What investments need to be made to maintain infrastructure or hire the right staff? And can you afford to keep going if there’s a disruption in your supply lines? Businesses with tidy finances are able to answer all of these questions and more.  If you can’t answer every conceivable question about your finances, then you need to ask your accountant (that’s us) to help you get them in order. Here are a few pointers: Separate business and personal financesBusiness finances that are intermingled with personal ones create confusion and make it difficult to get a clear picture of just where the business is headed. Introduce bookkeeping softwareYou may not have the time to stay on top of your finances when you’re running the business – but that’s okay. Using bookkeeping software can keep you one step ahead of the game, and it will definitely save your accountant time. Regularly update your financial statementsAsk us to keep a set of financial statements up-to-date and on hand at all times. Financial statements can open doors, allowing you to get necessary funding, apply for awards or government incentive programs and/or build an accurate business strategy. 2. Optimise your client base Improving company finances doesn’t have to mean introducing new products or expanding into new territories. It’s far simpler to maximise the benefit you’re getting from your current market. Do this by ensuring your sales and marketing teams are functioning at the best possible level, getting the right information to your clients, and then maximising the impact they have on those clients. Focus on building genuine relationships with your customers by engaging with them and their needs, providing top-level service and offering value beyond the sale. If you truly care for your customers they will care for you, and you will find yourself at the front of the queue when it comes to new market information and advice on how your product could be improved. Your sales team should also be encouraged to follow up with potential new clients to ensure opportunities aren’t being missed.  3. Analyse your existing offering Growth can also be generated by making sure you’re offering the products your clients need at the right price. It’s no good pouring money into a product that’s not right, or which isn’t as good as its competitors. The first step to finding out if you’re on the right track is to ask yourself the question, “If we stopped…

“There's life and death in every email.” (Bill Gates) Over the past 25 years, email has become synonymous with office life: a recent study found that the average worker sends between 9,000 and 15,000 emails a year. All of this is happening despite email being fundamentally flawed in multiple ways that choke businesses and, in some cases, even kill them off. Here are four reasons why email needs to go. It thwarts productivityThe first thing most employees do in the morning is to check if they have any important emails. Undoubtedly, they do – but these are often buried among a slew of customer queries, spam emails, company newsletters, messages from business partners, employee announcements, HR updates and IT memos. According to one study, wading through these emails to find the vital pieces of information can take employees up to two-and-a-half hours every day.The need to constantly check emails can interrupt employee thinking processes and break the vital concentration they need to keep their workflow going. This can slow down projects at every step with the hours adding up dramatically over each project’s lifetime. Worse, the need to be permanently online can mean this is happening with personal emails too. It slows down collaborationFor one-to-one communication, email retains a powerful role. But in groups, it’s seldom efficient. Email threads where some are always included, and others seldom lead to email dead-ends, lost information and uninformed team members. Even if you are kept in the loop, it can still be confusing. Is the version of the document in your inbox the latest one? Or has it been updated by someone else on another thread?  It’s damaging staff mental healthThe two challenges above lead directly to a third, perhaps more dangerous one – an attack on employee mental health. The need to constantly be available, connected and ready-to-reply is exhausting and can lead some employees into anxiety or depression. Humans simply aren’t wired to have their attention constantly divided. No wonder email overload can lead to a notable decrease in our ability to function, with one study suggesting this to be the equivalent of a 10-point drop in IQ.  It’s a threat to your safetyThe internet is full of scam artists, criminals and opportunists – all of whom are trying to find a way to steal your data and/or your cash. While antiviruses and firewalls may offer protection from many forms of attack, they can’t protect from everything. According to Seacom, 40% of cyber events that result in loss are Business Email Compromise (BEC) scams. BECs – emails designed to trick staff into giving up vital information or downloading malicious software – result in an estimated R53bn in global company losses each year.  So, what can you do? Train your staff  Email isn’t going anywhere. All enterprises, no matter their size, need to find the budget to adequately train their staff in the correct, most efficient way to use emails to reduce the burdens on themselves and their colleagues, while also reducing the…

“The only real mistake is the one from which we learn nothing.” (Henry Ford) Without revenue targets, businesses are unable to measure their performance against past years, reward employees, or accurately forecast and plan. Targets set by leaders for individuals or teams can shape morale and expectations for employees and bring accountability to team actions. But it doesn’t always work like this. You might have found yourself in the unenviable position where your targets are consistently being missed – despite your team leaders reporting that their teams are giving it everything they’ve got. Here are four reasons why this may be happening – and what you can do about it. Reason 1: You set the wrong goals For many leaders, revenue targets are calculated by simply adding a percentage to the previous year’s turnover to show growth. While this system may seem sensible, it’s actually very wrong. When setting revenue targets, you must consider a number of factors that go beyond the achievements of the previous year (or quarter), and the current inflationary environment. Consumer behaviours change; sometimes overnight. The market adjusts and new competitors are always springing up. What’s more, a new technology could arise, bringing new challenges or rendering one of your products or services obsolete. The first step to setting accurate revenue targets is gathering all the data. Once you’ve done a thorough analysis of the market, competition, and consumer behaviour, you should look at each product or service you offer and evaluate its existing sales and potential for new sales. Setting individual targets should result in much more realistic numbers. Reason 2: Short-term thinking Pressure to show growth can cause you to rely too much on channels that deliver speedy growth. It’s easy to fall into the trap of doing things for short-term benefit, rather than building your business one brick at a time. Loads of things that are time-consuming and have no obvious short-term gain could eventually reap huge rewards – things like building an organic online presence or nurturing a business community. The demand for short-term growth can also lead you to abandon strategies that do work simply because they don’t show immediate success. There’s almost always a lag between implementing a new strategy and seeing an impact on your bottom line – often a little patience is all it takes. Reason 3: Failing to plan Having a revenue target is not the same as having a plan. At the end of the day, it’s your staff who will convert the proposed numbers into a reality. Your teams must be given the tools they need to meet your revenue targets. Have your numbers factored in a new competitor? Then your staff need to know how to market around that new competitor, and your sales teams need to know how to answer the questions they’re going to get about the competitor’s products. If it’s growth you’re after, will your current team be able to handle the extra hours needed to achieve it? Or do you…

“Always treat your employees exactly as you want them to treat your best customers.” (Stephen R. Covey, author of ‘7 Habits of Highly Effective People’) Good business leaders recognise that regular employee performance reviews play a vital role in improving transparency, identifying talent, and enhancing performance – yet often this process is handled in a casual fashion or even not implemented at all. In fact, a recent study revealed that only 13% of employees and managers, and only 6% of CEOs, think their organisation’s performance appraisal system is useful. Even worse, 88% of respondents said their current performance review negatively impacted their opinion of the HR department. Here are six tips for turning those opinions around and getting maximum value from your performance reviews. Tip 1: Really listen During a review it’s vital that the employee feels truly understood. Data shows that leaders who come to reviews with preconceived notions and a list of complaints are more likely to have unhappy teams. A massive 85% of employees would consider quitting if they thought their review to be unfair – and there is no surer way of making someone feel unfairly treated than to brush off their side of the story and make them feel unheard. Companies should therefore focus on getting their leaders to: actively listen to employees during reviews avoid making assumptions ignore distractions such as phone calls pay attention to verbal and nonverbal cues. Tip 2: Be transparent Because performance reviews are often linked to raises and other benefits, it’s extremely important that the employee understands exactly why certain decisions were made. Giving clear, fair, specific and actionable feedback allows the employee to see how they can get a better raise next year and what they need to do to gain a promotion. Vague or unclear feedback only leads to distrust of the system – and of the company’s HR and leadership. Tip 3: Keep looking forward While the very name “performance review” suggests a look back over the course of the past year, it’s also the ideal time to project forward into the future. By using the review to set new goals and speak about career progression, your leaders will be able to motivate employees to do well. Knowing that you’re being considered for promotions or that there are rewards at the end of the tunnel is motivational. Little wonder, then, that forward-looking performance reviews have been shown to improve employee productivity by 13%. Tip 4: Your employee’s opinion matters A decent performance review is a conversation between employer and employee. It is a chance to listen as well as to speak, and this dynamic should be carried through to the very design of the review. Speak with both managers and employees about the reviews. Ask them what works and what doesn’t and encourage them to suggest things that would make the process more useful. Then actually adjust the review to accommodate these requests where possible. Employees who feel they have power and buy-in over the review…

“Many companies have forgotten they sell to actual people. Humans care about the entire experience, not just marketing, sales, or service.” (Dharmesh Shah, CTO and co-founder, HubSpot) Brand awareness is at the heart of building a successful business. If your target customers, and the public at large don’t know who you are, you might as well close your doors. Promotional gifts have long been a powerful and effective element of successful marketing. But recently companies seem to be forgetting this and instead are offering their customers the cheapest thing they can stick a logo on. This attitude lowers the effectiveness of the brand campaign, and risks making your promotional gifting a total waste of money. Here are five reasons you should ask your accountant to free up the budget for a proper campaign, rather than handing out something your client is just going to put in the bin. Build a real connection By giving your customer a cheap, nearly useless gift you inadvertently send them the signal that they are unimportant to you. A well-thought-out gift that they can actually use does the opposite. This doesn’t mean you need to break the bank (although spending big for high-end clients can be well worth it). Think of items that they may need such as a torch, measuring tape, or small kitchen implement. Another great option is experiential gifting. Depending on the customer, this might be a round of golf at a sought-after course, or a bungee jumping voucher. By giving customers something they might really use (or an experience they will never forget), you make them feel like you value them as more than just a source of income. In a recent report, 58% of respondents said that they kept useful promotional gifts for more than a year, and many of them for a lot longer. Your customer becomes the advert If you’re really crafty, you’ll give people something they can actually use outside of their home. By giving folks a gift they’ll go out with, you turn them into a walking billboard for your business. An umbrella, backpack, or warm jacket that is built to last will give you many years of value as your brand will be subtly showcased at events and venues you haven’t even dreamed of. Love at first sight Many companies first meet new customers at events or expos. By giving potential customers a gift before they have even bought anything, you stand out from the horde of other companies vying for their business. Once again, you need to make your gift useful – if everyone else is doing pens and lanyards, your bottle opener, snack or kids’ toy can be the difference between blending into the crowd and being remembered when the time comes to make an enquiry. According to Giftsenda’s Customer Gifting Report for 2024, almost 85% of people who receive a promotional item remember the advertiser, with 82% of recipients saying it gave them a more favourable perception of that brand. What’s more,…

“Beware of little expenses; a small leak will sink a great ship.” (Benjamin Franklin) When a company is struggling with cashflow, or simply looking to improve profitability, the directors will often consider making grand sweeping changes like retrenching staff, slashing the marketing budget or even selling off resources. While this kind of kneejerk reaction can provide instant gratification, it may not be the solution to your long-term struggles. Cutting back on marketing might impact future sales, for example, and end up making things even worse. That’s why it’s often a good idea to eliminate small expenses and wasteful expenditures, when you’re looking to streamline cash flow. Here are five simple ways to save money that you may not have considered. 1. Beware bank charges How did your company open its first bank account? Why did you choose that particular bank? If you haven’t thought about these things in a while, now’s a good time to start. The first step would be comparing bank charges – how much are you being charged to transact, and could you be paying less? Your accountant can help you to break down your company’s needs and find the best solution. Do you need to transact every day, or can you save money by paying off your creditors in scheduled payment runs? Would bundled services work better than transacting at will? How many credit cards do you need? Do you use overdraft facilities? The bottom line: stop paying for services you don’t need. 2. Trim the tech costs Technology is essential for running a business, but do you need (or even use) everything you currently have? Costs such as software subscriptions, fibre lines and cell phone contracts should all be looked at closely. Do you need a 200Mb/s download or will a 50Mb/s work just as well? Which of your employees really uses their company phones to generate profit? Small businesses will even benefit from looking at their software licences. Many popular work solutions have free, open-source counterparts that work very well and don’t require a monthly payment. Even if you decide you do need to pay for licences, you might be able to cut down on the number of licences. 3. Exercise office efficiency Monthly utilities may seem like something you can’t go without, but it might be wise to reconsider. Have a look at your work arrangement. Could you operate a shared desk situation for hybrid workers? Have you considered installing flow restriction nozzles on bathroom taps, and LED bulbs in the light fittings? Reducing the size of your office space and then maximising the savings attained on the utilities can save thousands each month – money that could be spent on attracting new clients. 4. Commit to your favourite vendors In business, commitment can be a cost-saving. If you have regular suppliers you’re happy with, why not speak to them about longer-term arrangements for cheaper monthly charges? Small business owners are particularly guilty of accepting supplier prices without considering the various ways these…

“Your brand is what other people say about you when you’re not in the room.” (Jeff Bezos) You have a great product or service that fills a need. You are doing your marketing. Your accountant has helped you streamline your cashflow and provided you with your financial forecasts. You are well aware of the risks and challenges, but you are still not connecting with your customers. What could possibly be going wrong? There’s a strong chance you may need a rebrand. Here are five signs that it’s time to think of a brand refresh. 1. Your business has changed Growth is generally considered a good thing, but if you have grown too much you might have left behind the little brand you once were. Merging with competitors, bringing in new products and moving into new areas to seize opportunities can all result in your brand becoming muddled. If you’ve morphed into a jumble of different products, services and merged divisions it can become hard for your customers to work out exactly what you do. Now might be the time to bring everything under one new banner – or, alternatively, to split your brand into clearly identifiable offerings. 2. You don’t stand out from the competition If you look up your services and see a multitude of similar companies, chances are your brand is not defined well enough. If your company looks just like the others in the same sector, then how will your customers know to choose you over anyone else? You need to show the market that you are different – and a well-articulated brand offering can do just that. 3. Your business has suffered reputational damage This is a tough one for leadership to admit. Did you get off to a bad start? Did something happen that put your company in the news for the wrong reasons? Were you caught up in something unsavoury that maybe you had nothing to do with? Or were the previous owners simply incompetent? If you answered yes to any of these questions, then it’s definitely time for a brand refresh. Casting off the old image and adopting a new one is the quickest way to leave the past in the past – and it needs to happen urgently. 4. Your poll results are confusing The best thing you can do if sales aren’t living up to expectations is to start asking people why. A simple poll that asks your clients, employees, friends and family what your company does and how it could do things better could be just what the doctor ordered. If the results are inconsistent, then you have your answer: it’s time for a rebrand. Your brand narrative needs to be strong and focused if you want your audience to recognise your value. 5. You have high employee turnover We live in an age where employees want to work for companies they believe in. It follows, that companies with weaker brands and undefined missions can find it hard to hang…

“There are no shortcuts when it comes to getting out of debt.” (Dave Ramsey, finance journalist and author) Most businesses have debt of some kind or another. Whether you need help to buy stock, maintain equipment or even fund a property, it’s likely that at some stage in your business’ life you will need to take out loans. The challenge comes in balancing the needs of your business with the debt you’ve taken on in a way that ensures growth. Here are our five tips for managing debt in your startup. 1. Understand your debt In order to successfully manage debt, you first need to fully understand it. As your accountants, we can help you create a complete spreadsheet of your debts detailing everything from the amounts owed, to interest rates, repayment schedules, and even penalties that may be triggered by late payments. This information will be critical for making the right choices. 2. N is for negotiate Provided you have a good relationship with your lenders, your next step should be to try to renegotiate all your loans. Asking for lower interest rates, extended repayment terms or consolidation of debts could make the whole process of debt repayment simpler. 3. Not all debts are created equal With your debts now in their healthiest place, it’s important to recognise that some debts are more important than others and thus need to be paid off first. Generally, you should aim to pay off high-interest loans first as these will cost you the most in the long run. Next you need to cover any debts which are secured by collateral – this will stop you from losing your assets in the future. Tax debts should also be prioritised as these can come with severe penalties and even criminal prosecution. Sometimes the choices are not immediately obvious, so don’t be afraid to ask us for a debt repayment schedule which factors in your business’ operating conditions, cashflow and ultimate goals. 4. Improve cash flow If you want to make sure your debt never becomes a problem, it’s vital that you improve the cash flow in your business to the point where you can meet your obligations. This can happen either through increasing sales, decreasing costs, or optimising operations – or from a combination of all three. For example, any money you can save on unnecessary expenses can go towards repaying your debt, lowering your interest payments and ultimately increasing the likelihood of success. It’s therefore essential that you work with us, your accountants, to optimise your inventory, cut costs, improve sales opportunities and chase your debtors and invoices to ensure prompt payment. 5. Monitor your debt carefully Your repayment schedule should not be set in stone. It needs to be reviewed and adjusted regularly to account for any changes in your business condition. The goal here is not to be entirely free of debt, but rather to leverage debt for improved business growth. Managing debt is an ongoing process that could very likely…

“It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that you will do things differently.” (Warren Buffett) During tough economic times it can be tempting to illegally cut corners, hire staff at lower salaries, or avoid paying taxes you know you should be paying. The unethical approach can be very tempting if you find yourself battling to keep your business going. Taking the low road, would, however, be the wrong choice. An ethical business is one that’s transparent and honest about everything from its accounting practices, to its treatment of employees, interactions with the public, and the information it shares with shareholders. Truly ethical companies put the wellbeing of their customers and employees on par with profits. Now, backed by repeated studies, the financial experts agree that running a business ethically isn’t just better for a business’ short-term success, it’s also far more profitable in the long run. But why? Consumers demand ethical management With climate change at the forefront of every modern consumer’s thinking, the demand for sustainable, and ethical business practices has never been higher. Company business practices are now easier to scrutinise and more consumers are taking an active interest in the ethical aspects of the companies they deal with. In short, customers want to buy from ethical businesses. A recent study into consumer intent carried out by OpenText found that 88% of global consumers surveyed would rather buy from companies with ethical sourcing structures in place and that 83% of global respondents said they’d be willing to pay more for products they could be sure were ethically sourced. The trickle-down effect Moral and ethical business leadership has also been shown to reduce friction in teams and allow employees to better focus on their jobs. In a recent study, researchers at the University of Lahore revealed that supervisors who act ethically are more trusted by their employees and that this trust translates into boosted productivity from staff who are both more engaged and less emotionally exhausted. According to Gallup, teams which are highly engaged are, on average, 21% more productive and 28% less likely to steal from the company. Big Brother is watching When Volkswagen was ordered to pay back R201-billion to customers in the US who had been sold cars with falsified emissions data in 2015, the writing was on the wall for companies hoping to save money through unethical behaviour. In South Africa, you don’t need to look far for examples of large companies being brought to their knees by the unethical finance decisions of the boards. Steinhoff and Telkom have suffered for their questionable finance decisions and abusing their industry dominance respectively. And a R4.1-billion fine was issued to global software company SAP around bribes paid to South African and Indonesian officials to obtain valuable government business. The truth is, regulators are looking at companies harder than ever before, and those who think they can slip through the legal cracks are increasingly finding themselves coming…

“We can in fact change the world and make of it a better place.” (Nelson Mandela) Rolihlahla Mandela was born into the Madiba clan in Mvezo, Transkei, on 18 July 1918. He was given the name Nelson by a teacher on his first day at school. Affectionately known as Tata, grandfather of the Rainbow Nation, Mandela is best remembered for successfully leading South Africa’s transition from apartheid to a multiracial democracy. Mandela is the only person honoured by the United Nations with his own international day: Nelson Mandela Day on 18 July each year. On this day people around the world honour Mandela’s contributions and humanitarian work by following the example he set. He donated half of his presidential salary and part of his Nobel prize money to help street children. And he established the Nelson Mandela Children’s Fund which continues his legacy by focussing on education, HIV/AIDS and ‘peace and reconciliation’. Nelson Mandela’s life and words of wisdom provide inspiration that can help you lead your business to greater success. 1. “Everyone can rise above their circumstances and achieve success if they are dedicated to and passionate about what they do.” Passion and dedication are crucial to successful business: passion drives innovation and creativity, and dedication keeps you going when things get tough. 2. “Vision without action is just a dream, action without vision just passes the time, vision with action can change the world.” As an entrepreneur or business owner, vision is vital. But it doesn’t count for anything if you and your team don’t take action to make it a reality. 3. “The mark of great leaders is the ability to understand the context in which they are operating and act accordingly.” Today’s business context is more complex, multifaceted, and fast-changing than ever before, requiring agility in both decision making and execution. 4. “After climbing a great hill, one only finds that there are many more hills to climb.” Entrepreneurship and business ownership inherently entail challenge after challenge, day after day, year after year. Expect and embrace challenges, focussing on finding the opportunities they hold. 5. “The brave man is not he who does not feel afraid, but he who conquers that fear.” We all face many kinds of fears all the time: fear of failure, disappointment, the unknown, even of success. What sets entrepreneurs and business owners apart is that they don’t allow fear to stop them – they are brave enough to try, to step out, to take the risk … despite the fear. 6. “Education is the most powerful weapon which you can use to change the world.” Continuously educate yourself to better manage and grow your business. Also educate and upskill your employees on an ongoing basis: offer mentorships, internships, learnerships and apprenticeships; facilitate capacity building for Non-Governmental Organisations (NGOs); and sponsor schools or scholarships in the community or in your industry. 7. “Overcoming poverty is not a task of charity, it is an act of justice.” Even small businesses can make a meaningful contribution, and…

“Leadership and learning are indispensable to each other.” (John F. Kennedy) The world of work is changing, rapidly. With more teams made up of diverse people from a wide variety of locations, leadership these days has become less about personal relationships and more about managing across distance and effective organisation. Leaders in this world need skills they had never considered previously, and companies need to train them. Despite companies spending hundreds of billions of rands in leadership training globally, 63% of millennials feel their leadership were letting them down and only 27% of leaders believe they are equipped to lead hybrid teams. Here’s what you should be thinking about when implementing leadership development in your organisation. 1. Analysis and Assessment In order to build leadership capacity for the future, the first thing you should do is look at your organisation’s unique values, challenges, and priorities. Are you looking to increase profits, cut costs, improve employee retention or mitigate risks? Remember, your analysis needs to focus not only on what’s happening now, but on the coming changes in your industry and your goals for where you want to be in the future. Doing this will then allow you to take a closer look at the skills of your leaders as they currently stand and determine which leadership skills are most lacking. 2. Research The next step is choosing which leadership training organisations to partner with. There is currently no shortage of leadership development resources, speakers and organisations that offer training. The resources you work with should be vetted, relevant, and applicable to learning goals you established in the analysis phase. In order to ensure you are getting the best possible course you should evaluate the course material and format and research the course instructors. Who is offering this course? Do they have the requisite experience? When it comes to making a difference, instructors with a strong educational foundation and relevant qualifications will always trump the charismatic author with multiple tattoos and a matric. As your accountants, we are able to help you build a training budget, which can help prioritise training and ensure you get the most impact from your spend. 3. Involve your seniors You and your senior leaders understand leadership in the context of the company better than most and as such should play a mentorship role in the development of future leaders. Training engagement has been shown to increase dramatically for attendees when it is their leader who is among the teachers, so don’t be afraid to engage your team as an active part of the process. This will also help you too. By taking part you will also be aware of the course content and can more easily spot teachable moments during the day-to-day running of the company, reinforce the lessons in their mentorship sessions and better spot those who are implementing the lessons in their own personal development. 4. Inform your employees Building future leaders is about spotting talent, then using the training to position that…

“Fraud and deceit are anxious for your money. Be informed and prudent” (John Andreas Widtsoe, scientist, author and religious leader) While accountants have become adept at spotting and preventing financial fraud simply by analysing a company’s books, there is another kind of fraud that needs alert leadership, record keeping and careful analysis to completely snuff out. Time fraud sounds like a concept from a sci-fi movie, but in reality, it’s actually quite a simple concept. Like with those who commit regular fraud, a time fraudster is purposefully stealing from the company, but what they are stealing is a much less tangible asset – time. Time fraud is any kind of employee behaviour that knowingly steals time from a company. It could be as minor as taking an extra smoke break, or purposefully arriving late, but can also involve using extended company time for side projects, and even illegally clocking in for shifts that weren’t worked. The 10-10-80 rule of business fraud says that 10% of employees will never cheat a company, 80% will cheat a company under the right circumstances and 10% are always actively looking for ways to cheat the company. This means that if it is unchecked time fraud can become a companywide problem that chokes profitability, irritates customers and destroys team morale. Here are our tips for making sure it doesn’t destroy your company. Spotting time fraud Recognising the red flags Detecting time fraud is about watching patterns. An employee who comes in late occasionally is not a fraudster, one who comes in late every day just might be. Catching a time fraudster therefore requires you to pay close attention to the employee’s behaviour. Sometimes honest employees can be guilty of one or more of these things, dependent on their skill level or job requirements, but if they are adding up, you are likely looking at a thief. Is the employee regularly claiming they worked long hours, but getting very little done? Do they frequently miss deadlines? Are there inconsistencies in their time tracking or billable hours records? What are the employee’s colleagues saying about their efforts? The fraud triangle Fraud criminologist Donald R. Cressey has developed what he calls the Fraud triangle, a tool businesses can use to determine which employees are most likely to commit any kind of fraud, including time theft. As the name suggests, the fraud triangle asks managers to pay particular attention to employees who exhibit any of these three components: Motivation: People with motivation to commit time fraud are more likely to do it. Motivation covers a wide range of incentives from the receptionist with a new boyfriend she loves chatting to on the phone, to the ambitious go-getter who is trying to start their own side-hustle. Opportunity: Opportunity is much more common now when so many people work from home. Employees who would be able to indulge in time fraud without comment are much more likely to infringe. Rationalisation: Again, employees who are able to rationalise their time theft are much…

“The Compensation Fund is mandated to provide social security to the injured-on-duty employees and those who contracted diseases at the workplace.” (Compensation Fund Annual Report 2021/2022) By law, all employers are compelled to register for COIDA (Compensation for Occupational Injuries and Diseases Act No. 130 of 1993) within 7 days of employing their first employee. COIDA provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees during the course of their employment, or for death resulting from such injuries or diseases, in which case the dependents can claim compensation. Without this ‘insurance’, employers are held liable for the costs of an injured employee’s medical treatment and are also open to civil claims in respect of medical costs and compensation for loss of earnings, permanent disablement, death and even pension payments. In addition, failure to comply with the provisions of COIDA constitutes a criminal offense. On the other hand, employers that meet the requirements and have paid the assessment fees can request a Letter of Good Standing (LOGS), a document often required when tendering for substantial projects or new business. To access this ‘insurance’ for their employees, employers are required to register and contribute a fee to the Compensation Fund (CF) each year. In doing so, employers must also submit a Return of Earnings (ROE) every year. The ROE is a declaration of employees’ earnings for the past year, made by the employer to the Compensation Fund, and the ROE for the 2023 assessment period is now due at the end of June for all employers. What must be done Register with the Compensation Fund, if not yet registered. The 12-digit CF registration number starting with 99 is required for submissions and payments. Prepare the required information to be submitted for the 2023 assessment period, which extended from 1 March 2023 to 29 February 2024. Earnings to be included in the declaration are regular overtime, regular bonusses (e.g. annual bonusses), cash value of fringe benefits and earnings or drawings paid to working company directors or members of close corporations. For each month, actual earnings for the period, and head count including directors and members. Projected earnings and head count for the year ahead. Submit the Return of Earnings (ROE), also known as the 2A Form (W.As.8), as well as the list of required supporting documents, within the deadline. Make sure the correct nature of business or assessment tariff subclass is used. There are more than a hundred subclasses, each with its own assessment tariff based on the risks associated with the type of work. The annual assessment fee is calculated with the relevant assessment tariff and on workers’ earnings. (Formula Assessment Fee = total workers’ pay ÷ 100 x assessment tariff) In addition, if an employer’s accident costs are higher than others in the same subclass, the assessment tariff may be increased. If costs are lower, the rate may be reduced. Ensure a Notice of Assessment/Invoice (W.As.6) is received, showing the amount owing to the…

“Find the right price for an irresistible offer, which, by the way, isn’t necessarily the lower price.” ― (W. Chan Kim, Business strategy advisor and author)        A good businessperson pays attention to the price of their products. With accountants by their side, they wisely analyse every expense, tax and logistical possibility to ensure their product goes out at the best rate for maximum profitability. Like with everything in society, no matter how thorough the maths, pricing strategies can also be influenced by the underlying psychological principles that drive consumer behaviour and purchasing decisions. Ultimately, customers want to know that they’re getting either the best price point, the best quality, or the best value. Psychological pricing leans into that idea, and ethically uses price as a way to send the right signals to make customers feel one of these three benefits. By decoding these subtle nuances, businesses gain a competitive edge by subtly adjusting their pricing strategies to lure customers and bolster profitability. Here we uncover the strategies and insights essential for businesses aiming to thrive in today’s dynamic market landscape. Price Appearance All businesses know that pricing an object at R49.99 is more likely to attract a sale than simply pricing it at R50. In the West people read from the left so the lower number on the left is attractive. Of course, many customers know this too, but there are other ways of making the appearance of the price boost sales. The first of these is simply to leave off the cents in a price. Studies have shown that marking a product as R49 is more likely to make a sale than R49.00 simply because it looks shorter. In fact, according to The New York Times, even putting the currency sign at the start of a price can trigger purchasers into feeling the “pain of paying.” The best route? Remove the currency sign and cents altogether. Premium Pricing and Price Anchoring Premium pricing is when a brand chooses to price themselves at the top of the market rather than set a competitive price. This can work due to the public’s long-established perception that higher prices equal higher quality or rarer products. This does not always work, but there is a far subtler way to take advantage of the same effect – price anchoring. Price Anchoring is where a business releases their first product at a premium price but releases subsequent products at more competitive rates. The existence of the premium product makes the other products seem that much more reasonable than they otherwise would and encourages sales. Price anchoring can also refer to a practice in retail where the store puts an expensive product alongside a cheaper one, thereby making the cheaper one’s price seem like a bargain. For example, retailers, putting prime virgin olive oil at R89.99 for 500ml next to the sunflower oil, makes the latter seem cost-effective, even if they have priced it above the usual market price. Discount language Offering discounts is a great way to sell off stock that may…

“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”- (Warren Buffett, investor, businessman and philanthropist) When buying a small business there are a number of things that need to be checked before pulling the trigger and signing the contract. Doing proper due diligence will ensure you don’t invest hard earned money on a lemon. Here are the five most important things to look out for. • Finances Carefully examining the finances of the company is vital and bringing an expert on board to do it for you will ensure you don’t miss those hidden details that could be signs of a faltering company. Let us examine your past financial statements and tax returns for you to discover trends and establish whether sales are on the way up or down. We will also look closely at the assets and liabilities of your company, review the status of any inventory, equipment, and physical assets and analyse your likely costing for maintenance, necessary upgrades and stock issues. This is all essential as buying a company and then finding yourself in an immediate cash flow crisis is the worst possible start to your hopeful new venture. • Intellectual Property Does the company you are buying depend on one invention or many? If so, have those inventions been patented, copyrighted or trademarked? And just who owns those things? It’s no good buying a business only to find you now owe the former owners for the rights to using their creations. • Customer opinions The first step is to examine the internet for reviews. Perhaps the previous owners have been rude and undermined any goodwill that should have arisen from an otherwise excellent concept? Maybe the much-vaunted invention isn’t quite as good as expected? Speak to key customers and ask them their opinion on a takeover. Does it bother them or will they stay on with the company when it has been sold? Does the goodwill of the business rest with the product and the business itself or is it personal to the current owners? • Employees Where possible conduct employee interviews to fully understand what they think of the company, how they believe it can be improved and whether they are planning on staying on if there is a new owner. The employees may be able to spot gaps or weaknesses you may not easily see, but more importantly may also reveal undiscovered areas for expansion. A full employee analysis will, with the help of your accountant, also help you determine just where there are gaps that need to be filled, what training still needs to be done, and most importantly, what all of that will cost. • Existing contracts Take a look at any long-term existing contracts. Anything from a rental agreement to a customer service contract could reveal problems. Are there any burdensome terms and conditions that you will be locked into? Is there a customer who has to be serviced at…

“The only thing worse than training your employees and having them leave is not training them and having them stay.” – (Henry Ford, Founder, Ford Motor Company) In a world where everything seems more expensive today than it was yesterday training and advancement of staff can seem of lesser importance. As an increasing number of studies show, however, this could not be further from the truth. A lack of training at businesses can lead to decreasing quality of service, high employee churn rates, and more recently, an inability to match more technologically savvy competitors in the market. In 2024, speak to your accountant to budget for the advancement of your employees and the development of skills within your organisation. Businesses who fail to bring these skills on board, whether through training or additional hires, are guaranteeing tough times ahead. 1. AI Prompting Like Excel in the 2000s this is the one skill every office employee will need to have over the coming years. At the moment, prompt engineers are commanding enormous salaries for their understanding of just which commands are genuinely helpful when dealing with AI. It’s all very well having the latest technology, but if you are unable to unlock its potential then you are wasting the investment and falling behind every day. 2. Creative Communication Ironically, in an era where AI is capable of producing a facsimile of good writing in a matter of minutes, genuine heartfelt, creative and original communication is going to become even more critical. Ensuring you have employees who are capable of identifying communication opportunities, and actively translating the insights of AI into easily understood, actionable and motivational text will be the difference in a world littered with paint-by-numbers ChatGPT blog posts and internal emails. 3. Cybersecurity As the world moves increasingly digital and automated it also becomes more vulnerable to cyber-attacks. Online threats can cripple companies and put them out of commission for weeks if not months, and lost information can be very hard to retrieve. While it is imperative that your company has experts employed who understand the threats, each and every employee should also be trained in the basics and potential loopholes that criminals will exploit. Failing to train in this area will no doubt lead to far greater costs down the line. 4. People Management Managing a team requires a completely different set of skills to just ten years ago. With most jobs incorporating at least a percentage of remote work, and freelancers becoming an integral part of projects, managers need to be up to date on a number of new communication and management apps and solutions. Additionally, they need to know how to motivate and communicate effectively online and develop teams from people located around the world. 5. Customer Service In the modern era of online reviews and social media, customer service has never been more important. Now, one bad experience doesn’t disappear, but instead lives with a company online forever. As a result, it’s critical that staff be…

“Great things in business are never done by one person. They’re done by a team of people.” (Steve Jobs) There are many benefits to having a great team, and these have been backed up by scientific research around the world. These include, for example: Improved productivity, with thousands of employees noting that having the respect of their peers is the number one reason they go the extra mile at work. Better problem-solving, as team members pool their diverse unique talents and skills to find smart solutions to ever-more complex problems. Generation of innovative ideas as team members with different experiences, opinions and perspectives collaborate. Taking more calculated risks, as team members know they have the support of a team.Personal growth, increased job satisfaction and reduced stress are all benefits of working in a team. Reduced risk of burnout as the workload is shared among team members. Five steps to build your team stronger  Take care of the basics with the help of your accountant Ensure fair remuneration and that each team member’s salary is optimally structured. Put the basics in place: Employment contracts, salary slips, leave and sick leave, job descriptions and performance reviews. Offer incentives for employees to increase their earnings – from simply working extra hours to profit sharing for achieving company goals. Provide the right skills and tools for each team member Team members should have a clear understanding of their roles and responsibilities, and how it contributes to achieving the team’s goals. In addition to safe, clean and friendly working conditions, each team member should have the right skills and the right tools to make their contribution to the team’s success effectively and efficiently. Be sure to provide practical means to track the team’s progress to maintain motivation. Offer perks that matter! Non-monetary perks that have proven to be very popular include flexible working hours, extra time off, transport, childminding facilities, fun social activities and opportunities to volunteer during work time. Health and wellness programmes are an affordable and practical option to help team members to better care for their health, improving productivity and reducing both absenteeism and presenteeism (when team members are at work, but are too ill to perform their duties). Financial wellness programmes can provide team members completely confidential assistance to deal with the financial stress that is known to negatively affect work performance. Ensure open and regular communication Regular and prioritised communication – from weekly team meetings to reports with regular due dates are crucial to share information and provide feedback to the team and individual members. Provide all team members with opportunities to share their input, actively seek out suggestions, listen to understand and work to build consensus, which is likely to result in the best decisions. Define common goals and clear steps to achieving these goals. Celebrating successes and implementing lessons learned Be certain to celebrate milestones and successes with the team, recognising each team member’s efforts. Define the lessons learnt from failures and adjust the team’s approach accordingly. Consider team-building…

“At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies.” John Chambers, former CEO of Cisco Systems) Around the boardroom tables of the world, one thing is on every agenda – digital transformation. From global conglomerates to SMEs, leadership is keenly aware that in a digital world, those who do not adapt will quickly become irrelevant. In fact, a recent study revealed that 55% of businesses believe they have less than a year to digitalise before they start to suffer financially and lose market share. Businesses must adapt to stay ahead of the game. By integrating advanced technologies across all aspects of the enterprise, businesses are able to significantly improve a business’s efficiency by automating manual processes, reducing errors and improving productivity. This allows them to not only keep up with the competition, but also to enjoy greater efficiency, productivity and customer satisfaction. This process of implementing these modernising technology advancements is referred to as a digital transformation. However, the process of digital transformation is not one a company should enter into lightly as it’s not simply about implementing the latest technology and tools. The goal of digital transformation isn’t just to eliminate manual processes, but to augment your operations, streamlining workflows and improving the customer experience. This must all be considered within the context of your budgets, timelines and overall business goals, while managing organisational risks. As a result, it’s imperative to develop a digital transformation strategy which takes into account all of these aspects and potential pitfalls of an overhaul of this nature. Get buy in from the highest levels A digital transformation is a necessary change, but it can’t work without buy in and leadership from the top down. This is something the company needs to do together, and some tough choices are coming. With a likely high price tag and disruptions on the cards, the company is about to go through a challenging time; making sure everyone at the top understands this is a powerful first step. Analyse your current system Before embarking on your digital transformation, you will need to know exactly what needs to change. To do this you will need to do a complete, top to bottom analysis of your current technology and systems in order to: Review business processes and highlight inefficiencies Identify technology gaps or areas where your existing systems fall short Define functional capabilities needed to effectively support or improve your processes. Develop your company mindset Digital transformations are not as much about technology as they are about change. A thorough digital transformation will likely change the way everything is done in your company and will therefore require a culture of agility, communication and open mindedness. Leaders will need to take ownership of the transformation and prepare all involved well ahead of any actual proposed developments. Employees, clients and other stakeholders will all need to understand the transformation strategy and how it…

“The best way to predict the future is to create it.” (Peter Drucker) Facing what may well be another tough year, company owners and managers will be well aware that many of the external challenges will be beyond their control. Fortunately, what remains under your control is how this new year is approached and starting 2024 with a thorough understanding of the three metrics below will ensure that this could be the best year yet for your business – The business’ past performance, Its current status, and Its mission for the new year. You don’t need an MBA or special knowledge to assess the company’s past performance, to understand the present situation, or to plan for the year ahead. Just schedule some time with your accountant, take inventory of what’s truly going on in your business and decide how to make 2024 your best year yet. Assessing the past An assessment of the company’s performance over previous years provides invaluable information about what is working and what needs to be changed. A relatively quick and easy way of assessing the past performance is looking at the business accounts and financial reports. For example, your profit and loss (P&L) statement, or income statement, will reveal reasons for periods when net losses were recorded (for example, slow business periods or extraordinary expenses) as well as raise red flags where expenses regularly exceed income. A balance sheet summarises total assets and total liabilities, showing the company’s financial position and measuring liquidity or ability to pay short-term liabilities. Summarising expected cash inflows and outflows over a period, a cashflow report reveals where the most cash is generated and used; highlights potential cash flow problems and enables informed budgeting and spending decisions. Regular debtors’ reports enable proactive management of current and overdue invoices to improve cashflow. Similarly, budget vs actual spend reports compare actual spending to the amounts budgeted for the period, to reveal areas over or under budget and to flag problem areas. Determine where the business is now Review the business operations, successes and challenges, and the reasons for missed targets, whether simply drawing on paper or using special software. Understand the company’s current capacity for production and its performance – how many targets met, on target and/or overdue. This enables current strategies, practices and operations to be evaluated, and to pinpoint what is working or not. Also look at customer satisfaction and retention rates, as well as employee satisfaction, both of which can be assessed through electronic surveys or simply speaking to clients and staff. Planning ahead Building on what’s working and realising that doing things differently is the only way to achieve different results, you can choose the goals that will create the future of your business. Specific, Measurable, Achievable, Relevant and Time bound goals – or SMART goals – focus your team’s efforts and increase the chances of successfully achieving the targets, particularly if these are supported by step-by-step plans, a budget for the required resources, accountability assigned to specific people, and ongoing reviews to track progress. SMART goals are crucial for achieving success, as they provide a clear…

“The way to get started is to quit talking and begin doing.” (Walt Disney) Whether starting a business is your New Year's resolution or something you have been waiting to do for years, if you are thinking of launching it in January 2024, then you have already made a wise decision. January is a popular month to officially launch new businesses, not just for those inspired by a New Year's Eve conversation, but for seasoned entrepreneurs. There are several reasons why January is so popular. Perhaps they will inspire you to make it your foundation month too? You have the energy Coming off a holiday and filled with the buzz of a new year is the perfect time to launch a business. New businesses require long hours and energy you may not have after a year in your corporate job, but that short break can do wonders for your energy and give you just the lift you need to get it all started. January is a slow month Following on from the Christmas spending boom and a lazy holiday it usually takes corporates a few weeks to get back to full speed. While this might sound terrible to someone eager to get going immediately with a new venture, it's a big benefit. There are a lot of admin tasks that need to be done to launch a business, from registering with the CIPC to opening a bank account, drawing up business and financial plans and getting your logo designed, so having a quiet first month to get that out the way while you aren't missing out on sales will help. Hiring According to TransformSA, January in South Africa is the month when the highest percentage of people quit their jobs. Following on from the holiday many unsatisfied, driven or unsettled people decide they can't face another year of doing the same thing and leave looking for something else. As a start-up, this means that there are many more people on the job market looking for a new opportunity and you stand a greater chance of finding the right people for your enterprise. Given that you will be starting small, it is absolutely critical to get the first few hires right, and January's talent pool will make that easier. Refreshed clients Just like employees, potential clients are also arriving at work eager to do something new and exciting. It is extremely common for business leaders to use the chance of a quiet January to go over the past year's figures and reevaluate client relationships and long-standing suppliers. This is the perfect time to walk into their offices with something fresh. Lower advertising costs Studies show that the fourth quarter of every year is by far the busiest when it comes to advertising, while quarter one, and particularly January can be a problem. If you are looking to do a significant amount of advertising, walking into a publisher to negotiate ad space in January is a power move that could see you…

“If you do not know where you are going, every road will get you nowhere.” (Henry A. Kissinger) Creating a business plan is one of the most important processes when running a business. It is the roadmap for the success of any business and should include everything from cash flow planning to expansion strategies and the company’s mission statement. If you want to take out a loan a full-length plan is invaluable, but on a day-to-day basis these documents can be lengthy and difficult to access. A one-page business plan is primarily a communication tool and is developed as a way to quickly summarise the key points of a business and its goals. It’s a great way to clearly define often complex issues in a simple manner and keep executives, partners or staff focused on the mission at hand. They are also a strong place to start when developing a full-length business plan and can help companies to pivot in changing times. What should a one-page business plan include? Your one-page business plan needs to include everything below, but resist going into the details. Keep each point to a few well focused sentences. Remove unnecessary words and adjectives. A Brief Description The first thing to do is to simply describe the types of products and services that make up your business. Customer Pain Points What problem are you solving for your customers? Why does your product or service exist? And why are these products or services better than those of your competitors? Avoid generalities and keep your answer focused. Competitive Advantages This is where you look at the things that make you and your company perfect for your industry. What makes you stand out? Is it the team you have put together? Your business model or a unique invention? Making Money This is the space for a three-point financial model. It should include your revenue sources, your company costs and the pricing strategy for your products. Again, avoid the specific amounts. This is not a budget. It simply points to where the money comes from and how it is spent in three sentences. Marketing Plan How do you get your product to your customers and how do you tell people about your business? What are your main sources for attracting new business? This is just a high-level overview on how you go about marketing and making sales. The Competition In one line only, describe each of your major competitors and what makes their business a success. Your Co-workers This is your chance to look at the key figures you have hired to make your company a success. Who are the most important people and why are they important? This will help you to understand which of your employees should be earmarked for promotions or bonuses, and training. Future Funding What are the major things you may need funding for over the next few years? Why do you foresee the need for money in these areas? Your “Why” Why are you…

“Always treat your employees exactly as you want them to treat your best customers.” (Stephen R. Covey, author of The Seven Habits of Highly Effective People) Small businesses often lose their talent to large companies simply because they can’t afford the kinds of salaries and incentives on offer at a global corporate. Keeping staff happy is, however, critical for business success. Here are five employee incentives that really work to keep your staff happy, effective and engaged. 1. Allow flexible time In the modern world nothing is as precious as time and employers should not underestimate what this would mean for employee motivation. In a recent study on the 4-day work week 89% of all respondents said they would make sacrifices to work four days a week, and 54% said they would gladly work longer hours on the other four days. It costs nothing to offer employees the opportunity to set their own hours, and work when they are able. It also gives them the ability to look after families, run errands and still meet their work obligations – something larger companies may not be able to do. 2. Profit sharing Profit sharing is a bonus incentive scheme that effectively only kicks in when the company is profitable. Better yet, it provides personal incentive to employees to make the company as profitable as possible. By offering employees an equal share in the profit sharing regardless of their position you also create a strong sense of teamwork and bond them in a united cause. 3. Public recognition A big positive of working in a small company is being able to see and know each employee as an individual. Genuine recognition of achievements is therefore possible – did someone go above and beyond, or make a personal sacrifice to make a deadline? Acknowledge it publicly, in front of everyone else. In a recent survey, 92% of all employees say they are likely to repeat an action if they are recognised for it. Simple acknowledgement can be motivation enough, but if this is backed up with a real reward, like paid time off or a monetary bonus it can become even more effective. 4. Make the office more fun Small companies can introduce flexibility in office protocols as well as work hours. Think about how you can make things more relaxed in a genuine and helpful way. Consider providing a room where people can bring their children to do their homework after school pick up or allow employees to bring pets in on one day a week. Is South Africa playing a cricket test match? Put it on in the break room. Let people have a say in which coffee and tea are available and always remember birthdays with a thoughtful gift. 5. Points-based incentives A points-based incentive program allows employees to gather points and ultimately redeem them for rewards. You could develop a book of rewards your employees will genuinely enjoy from small things like free lunch and gift cards to theatre…

“There are only two things in a business that make money – innovation and marketing, everything else is cost” (Peter Drucker, author) Running a business is never cheap and starting one up may be one of the most expensive things you ever do. According to the U.S. Small Business Administration, most microbusinesses cost around R60 000 just to get to the point where you are ready to start operating. Clearly, larger businesses with extensive infrastructure would cost much more. While it’s easy to plan for obvious production costs, office equipment, marketing and even taxes, the hidden costs we list below may come as something of a surprise. Registration, licences and permits Business registration is a cost that is absolutely essential for all businesses. Just registering a business name will require a payment to the CIPC. Depending on your industry there may also be licences and permits necessary to manufacture or sell your products. This is particularly relevant in the manufacture and supply of foods. Restaurants, hotels and B&Bs may also need permits to offer specific services and any business that wants to make use of natural resources, such as fish, water, or land will undoubtedly also need to pay for government permission. Health clinics, spas, nightclubs and many more will also have to find money to meet permit requirements. Business Insurance Not every business owner needs to take out insurance, but anyone with a business that deals with the public would be wise to at least cover their liabilities in that regard. If employees are going to operate onsite, employee liability insurance is also highly recommended. In addition to this you may need to insure key equipment, vehicles, and important and expensive stock items. Shrinkage Shrinkage is any loss of inventory that occurs before it can be delivered to your customer. New business owners may not account for any loss whatsoever, but studies indicate that depending on the industry, shrinkage can account for up to 7% of turnover. Usually though, shrinkage will be in the region of 1% to 2% of turnover, which can add up.  These losses come from customer thefts, employee fraud, administrative errors and damage, and need to be controlled, but the truth is, some will always sneak through and have to be accounted for in any business calculations. Delayed payments New business owners might develop their projections based on their sales always going to customers who pay for the products or services as soon as they are received. The reality of doing business is that this is extremely rare. Some large corporates may only pay on a 90-day cycle. Meanwhile, new stock must be purchased/developed and staff have to be paid. Taking loans to cover costs because of delays will result in interest payments, whereas monies held back to meet these payment requirements will mean that other investments or growth opportunities will have to be delayed. All of this incurs unexpected costs. It is therefore essential that you meet with your accountant to determine the most…

“Growth is never by mere chance; it is the result of forces working together” – (James Cash Penney, Founder of JCPenney) Every business decision carries profound consequences for the enduring existence of the organisation, and this is no more true than when it is applied to those decisions affecting business growth. Knowing how and when to expand, open new branches, roll out new features or engineer new products takes planning and is not something leaders should be trying to do by the seat of their pants in response to external events. A meticulously crafted business growth strategy is therefore essential to plotting sustainable growth. Here are the things you will need to consider when constructing yours. Set clear targets You know you want to be successful, but do you know what that success looks like? Just how much money do you want to make? What do you want the lifestyles of your employees and yourself to be like? What kind of turnover and profit would you consider to be successful? What would you like your reputation in the industry to be? If you haven’t considered the destination for your journey, how will you ever plot how to get there? Talk to customers You probably already realise the value of getting expert advice. Speaking to accountants about your finances, or lawyers about contracting just makes sense. But perhaps you have not considered that no one knows your customer’s needs quite like your customers? When choosing which customers to speak to, first look to those who are your ideal customers – those people who are getting good value from your services and who are happy with your products. By speaking to them, you will slowly uncover patterns for what you are doing right and what a successful business in your industry looks like. The next step is to speak to those customers who are not happy with your service and find out why. This will help you to uncover the opportunities you are missing, and the things you need to fix to get yourself onto the right growth path. Don’t ask these customers what you should be doing though, as changing everything based on the impressions of a few disgruntled clients is a sure-fire way to failure. Rather ask them what the challenge was that they came to you to fix, why they came to you specifically, and then what they were feeling at each stage of their journey. Once again, it is about uncovering patterns, and by asking these sorts of questions you will quickly work out whether you did something wrong, whether your services lack potential solutions the industry might need or whether you were simply the wrong fit all along. Now that you know what a successful client interaction looks like, and where your business is falling short, it becomes easier to see which holes will need to be plugged and where you can comfortably expand over the coming years. Build a road map Now that you know where…

“We need to do a better job of putting ourselves higher on our own ‘to-do’ list.” (Michelle Obama, former First Lady of the United States) The four-day work week has been in the news a lot recently with a number of significant studies and trials coming out in favour of the arrangement. While many would assume that workers are thrilled with four-day weeks, but that bosses are finding it hinders business, the results do not back this up. Repeatedly, these studies are coming out in support of the four-day work week with the benefits simply racking up. Here are the reasons why it just might work: Employees want it In terms of work schedules, employees are increasingly seeking flexibility, with a four-day workweek emerging as their top preference, according to a recent survey of American employees conducted by Bankrate. The survey revealed that a significant majority of full-time workers and job seekers, a staggering 81%, express strong support for a four-day workweek over the conventional five-day arrangement. What's more, an impressive 89% of these respondents indicated their willingness to make sacrifices in order to enjoy a four-day workweek. Among these concessions, a noteworthy 54% are open to working longer hours, while a substantial 37% are even willing to explore career changes or transition to different industries. Additionally, a considerable 27% are open to increasing their in-person office presence or working entirely on-site. Productivity Increases Many assumed that a four-day work week would hamper productivity, but a recent study in the UK that included 61 companies and more than 3000 workers found exactly the opposite. The study, which followed the companies and their workers through a six-month test of a 32-hour, four-day week, with no loss of pay for employees was the largest of its kind, making its results extremely impactful. Perhaps more impressive though, is that after the study was over, 56 of the 61 companies that were involved decided to continue with the shorter week indefinitely, and two more said they were voluntarily extending the trial. Among the benefits reported by companies were an increase in revenue over the same period in previous years, as well as a sharp decline in resignations. One company reported a productivity increase of 22%, a lower carbon footprint as well as an increase of 88% in job applications, and a 66% decrease in absenteeism. The results back up those achieved by a smaller pilot program that covered another 30 companies and 1000 employees. Employees are happier As for employees, well they were almost unanimously happy. Participation in the above trial led to a significant decrease in people saying they lacked sufficient time during the week to attend to their responsibilities towards children, grandchildren, or elderly family members. Additionally, they reported feeling reduced work stress as well as better mental health, more time for exercise, better sleep and generally less negativity. 55% reported an increased ability to work. The results also suggest that the shortened workweek could lead to better gender parity as the time men reported spending with their…

“Don’t be fearful of risks. Understand them, and manage and minimize them to an acceptable level.” (Naved Abdali, Financial journalist and author) Managing risk in your business is absolutely critical for developing it to success. Knowing exactly which threats are really relevant and which will help any leader to develop strategy and prepare for the worst eventualities. One of the simplest and most useful ways of determining the greatest risks to a business is through developing a “risk matrix”, otherwise known as a “risk assessment matrix”. Risk matrices give leaders a visual way of understanding the risks in their business by plotting these risks on a grid. An example to illustrate… Let’s illustrate the concept with the help of an example. A catering company has identified three risks to its business and has plotted them on a typical matrix which looks like this – Source: Adapted from a template available for free download from ProjectManager.com As you can see – The caterer has decided that a food poisoning event is deemed to be unlikely but with severe consequences. This puts it in the orange “High” category. Staff not arriving for shift is deemed likely with major consequences. This puts it in the red “Very High” category. Catering customer paying a month late is deemed possible with insignificant consequences. This puts it in the green “Low” category. This allows the caterer to visually compare the identified risks with one another at a glance, and to prioritise addressing them. Create your risk matrix in the context of your own business Any risk that is high on the likelihood scale and high on the consequence scale needs to be paid attention to immediately, while conversely those that are low on both axes can be attended to last. Leaders would determine where each individual risk falls on the matrix dependent on the context for their own business. For example, while a food poisoning risk may be a very low risk and unlikely event at a mining company, it is more likely for, and could mean bankruptcy for, a catering company. This simple outline may differ depending on the organisation or leader using it. Often, they appear colour coded with severe risks marked in red and less severe ones in blue or green. The effect of the matrix, however, remains the same, so choose whichever format works for you. How to build your risk matrix There are essentially four steps to creating a risk matrix, each of which will be influenced by your knowledge of your business and its particular details. 1. Identify risks The first step is to identify all the likely risks to your business. You cannot plan for things that you don’t know about and haven’t imagined. At this stage every avenue should be covered, and each eventuality considered. The catering company cannot prepare for a mass food poisoning if they have never even considered it enough to put it on their risk matrix. Risks are not just direct dire threats, however, and…

“The value of a business is a function of how well the financial capital and intellectual capital are managed by human capital.” (Dave Bookbinder, author) There are a lot of factors that go into working out the true cost of an employee. According to the US Small Business Administration, employees really cost between 1.25 and 1.4 times their monthly wages.  Understanding why this is, is critical to working out whether the company can really afford to bring someone onto the team. Determining the true cost of an employee helps a company to draw up better budgets, cost products more accurately and ultimately, make more profit. Here are all the things you need to consider before choosing to onboard a new hire. Salary: The monthly wage paid to an employee is usually the base for deciding whether a company can afford to bring them on board. Obviously, the full “Cost to company” monthly wage needs to be taken into account including taxes, UIF and any other built-in components such as equity schemes or medical aid. The salary also includes the cost of leave. All employees are by law allowed to take holidays and days off when they are ill. These are days that you are paying your employee, but not gaining any benefit. Additional employees: When you hire new employees, you may also need to consider hiring other people to manage those people, conduct the hiring process, administer employee disputes and complaints and ensure they are paid timeously each month. While new business owners may find it possible to do this themselves for one or two new employees, this can quickly start taking over in terms of hours, meaning the company owner is no longer doing their own vital job. It is advised that the costs of HR, finance and middle management are therefore looked at separately as this will give you a clearer idea of the ongoing costs for each employee. Onboarding and training: From the minute you start writing the advert for a job posting, the cost of hiring an employee starts to add up. How much time is lost sifting through CVs, conducting interviews and running background checks? Once they are onboard, they will need to be trained on the company systems and rules and will take time to get used to their role. How much time do other employees need to do this rather than their own jobs? Employers should also not expect peak performance right from the beginning and this loss of productivity also has a cost. Equipment: Any employee you hire will need to be given equipment, the cost of which will be determined by your industry. Everything from overalls to laptops and company cell phones as well as desks, chairs and meeting rooms need to be considered. What software do they need installed and how much is the annual subscription? How much office space does each employee take up? What does that space cost you to rent each month? On top of this comes costs like toilet paper, lighting,…

"Eskom plays a critical role in the life of South Africa, and life of South Africans. Due to its important role in the economy, its inability to provide electricity on demand and on time is a crisis." (President Cyril Ramaphosa) The South African Reserve Bank’s Financial Sector Contingency Forum (FSCF) has recently encouraged South African businesses to develop plans for operation at stage 8 load-shedding levels and a total countrywide blackout. While it has tempered this warning by saying that total blackout is an improbable scenario (with a chance of 0.1% to 1% of happening), it’s not an impossible one. The FSCF does however, think that businesses would be prudent to prepare nonetheless, particularly given the very real possibility of load-shedding levels that could see power being shut off for 12 hours a day or more. Here is how businesses can make that happen. Analysis The first step is for your business to analyse exactly how a critical power failure or extended loss of power would impact you. Would it be a shutdown of production or a loss of e-commerce sales? Would information loss be important, or do you still need to communicate with clients? Understanding this will inform the rest of the process. Plan financially Talk to your bank, investors and insurance companies to fully understand what can be done at the moment of shutdown to ensure continued operations and put risk financing in place to make sure you can cover costs in the event of grid collapse. If you have insurance, you need to know if they cover blackouts and what you need to do when that occurs to ensure they provide assistance. Make sure you have a hard copy of the policy accessible even when the power goes out. We are no longer at the stage where blackouts can be considered “unforeseen”, which means your insurer will have requirements for your preparation in such an event if you expect them to pay out. Backups Set your computers to autosave and back up all necessary information to the cloud regularly. Alternate Power Sources While it may not be feasible to run the whole business on alternate power indefinitely, you should at least provide UPS units at key positions such as Wi-Fi to ensure that when the power goes out you can still save the necessary work, run billing, or ring up customer sales. Also turn off and unplug all sensitive equipment so that the surge of returning power does not damage equipment. Security In the event of a total collapse, businesses may be wiser to shut down entirely. With both fires and crime expected to dramatically increase at that time it’s important to prepare an evacuation plan for your building or factory and shut off all electricity points at the mains. Ensure your property is safe, even when electric fences and CCTV are off. Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions…

“The difference between successful people and really successful people is that really successful people say no to almost everything.” (Warren Buffet, Investor) Anyone who has ever started a business knows the feeling a new enquiry can generate. The excitement that things seem to be working, may make the new entrepreneur set aside their concerns and leap at any opportunity. The sad news is that this excitement to help anyone who asks could be diluting the brand, lowering the quality of output and even damaging the business’s ability to grow. Here are the signs it may be time to say no to an opportunity. When you don’t have the capacity Your hours are stretched as it is, but now a potential new client has come calling and you are determined to make it work. In the early days clients are a lifeline to a business, but there will come a point where taking on new responsibilities could see you dropping the ball when it comes to your other clients. With each new arrival, it is therefore important to carefully analyse your resources, and options and determine whether you can truly do justice to their needs, and those of your other clients, with the capacity you have. If you can’t, and you try, then you will only end up damaging your reputation for good work and harming your business in the long run. When you don’t have the skills Knowing what you can’t do is as important as knowing what you can do. Don’t assume you will learn as you go. Taking on work under your brand banner that you are incapable of delivering will be a death knell to your business. When the long-term cost outweighs the short-term benefit A new client has come in with a promise to pay you more money than you have ever seen for the next three months, but they need you to drop your other clients to do it. This is a perfect example of short-term gain being outweighed by long term benefit. Sure, these next three months will be good, but those clients you currently have won’t come back and worse, will tell others that you dropped them. Six months down the line, the new client’s money will be gone along with your original clients. It’s not making financial sense – saying no to “barnacles” Traditionally, it is thought that loyal customers are the heartbeat of a business, but increasingly studies are finding that businesses need to ask their accountants to regularly evaluate the value versus effort that these loyal clients are bringing to the business. Harvard business review suggests that some “loyal customers” may in fact be using more of your resources for less of your profit, preventing you from servicing other potentially more lucrative clients. These customers who use up your resources, perhaps through continued complaints, returns for changes, or negotiations for better prices, are referred to as “barnacles” and like barnacles on a ship they can slow down your business growth.…

“Always treat your employees exactly as you want them to treat your best customers.” (Stephen R. Covey) Gallup describes “engaged employees” as those who are involved in, enthusiastic about, and committed to their work and workplace. Numerous studies over many decades have confirmed the benefits of engaged employees especially to smaller companies, where they are often required to take on many diverse responsibilities. Many studies have also identified employee engagement strategies that have proven most meaningful to employees and are therefore most effective. In these difficult economic times, business owners and managers will be pleased to find that some of the most effective employee engagement strategies do not require a substantial cost. The many benefits of engaged employees This isn’t just hype. Studies have confirmed that - Engaged employees often go beyond the call of duty. Employee engagement is positively correlated to company growth rates. Improved employee retention and loyalty. Lower absenteeism rates. Higher productivity – some studies have found engaged workers to be up to 21% more productive. Improved customer satisfaction. Improved company reputation and overall stakeholder value. Reduced incidence of internal theft and fraud. Reduced safety incidents. Some effective employee engagement strategies Employees have a good understanding of the business's values and mission, and clear expectations about their role in achieving these. Employees have the necessary equipment, resources and authority to do their jobs well. Regular employee performance and progress catch-ups with good quality, authentic and genuine feedback. Good relationships with superiors who are truly concerned for employees’ wellbeing and willing to provide support. Opportunities for employees to voice opinions and contribute ideas. Genuine and meaningful recognition, given publicly and timeously in front of superiors and peers. Peer-to-peer recognition has been found to have twice the impact of recognition from managers. Flexible work schedules and remote working options that allow employees to meet family obligations. Onsite employee programmes addressing, for example, health and wellness, or personal finances. Onsite family day care facilities and/or onsite food services. Having friends at work significantly improves employee commitment and satisfaction, by as much as 50% according to some studies. Volunteering unites employees towards a common greater good. Implementing employee engagement strategies on a budget When looking at the employee engagement strategies listed above, it is encouraging that most don’t involve high costs. What is crucial is to ensure that any strategies implemented add real value to your employees and impact their work and personal lives in a meaningful way. The best way to do so would be to ask your employees directly, perhaps at a team meeting or via an anonymous online survey. Perhaps an employee-of-the-month program with rewards such as breakfast with the Boss or gift cards could yield great results. It may be that a Friday afternoon off once a month or paid leave on an employee’s birthday are top choices. Celebrating national holidays or sporting events as a company, or providing paid time off for volunteering together, will create opportunities to build friendships and create a sense of belonging. Especially…

“We need to give importance to skill development because this way we can end unemployment.” (Narendra Modi, Prime Minister, India) Since 1999, the Skills Development Levy (SDL) has served to fund skills development in the country. It encourages a planned and structured approach to skills development so employers, employees and the economy can benefit from a better skilled and more productive workforce. All South African companies with a payroll exceeding R500,000 per year (that’s just under R42,000 per month) - including salaries, wages, overtime payments, leave pay, bonuses, fees, commissions and lump sum payments, and with certain specific exclusions - are required to pay SDL of 1% of the total amount paid in salaries to employees each month. It is declared and paid by employers to SARS with the other monthly employee taxes (PAYE and UIF) via the Monthly Employer Declaration (EMP201) and is then paid over to the relevant SETA by SARS. Employers can claim back more than half of the levies paid each year, but most miss the opportunity by not meeting the stipulated requirements. Depending on the size of a company’s payroll, this could be a substantial amount. There are also other benefits that can be unlocked by meeting the requirements for claiming back the levies paid. We briefly summarise below the benefits of claiming back the SDL paid, as well as how to do it in the most efficient way. Benefits of claiming back levies paid Claiming ensures valuable revenue is not forfeited - up to 70% of SDL paid to SARS in the financial period can be claimed back through the mandatory grant and other avenues. 20% of the levy paid can be claimed via the mandatory grant, paid by the Seta every quarter, which is accessed as follows: Appointing and registering a skills development facilitator (SDF) Timeously submitting an approved Workplace Skills Plan (WSP) Timeously submitting an Annual Training Report (ATR) based on the WSP. 50% of levies paid can be claimed in discretionary grants for learnerships, skills programmes, apprenticeships, workplace experience placements, internships and bursaries, and organisations can apply using the same requirements for claiming the mandatory grant. By offering SETA-accredited training, for example, mandatory training and registered learnerships, further tax rebates can be accessed. Successful submission of the required reports will earn your company points for the Skills Development priority element under the revised B-BBEE Codes. The WSP and ATR reports contain similar labour demographics information as the Employment Equity reports, facilitating improved employment equity management in the workplace. Skills development initiatives positively promote a better skilled and more productive workforce, as well as proper succession planning. Submitting the reports provides important sector information to the SETAs (Sector Education and Training Authorities), which informs the development of the SETA’s sector skills plan (SSP) and ultimately the National Skills Development Plan. How to claim back levies paid Appoint a suitably qualified and registered SDF to facilitate the training needs within the organisation and liaise with the SETA. Companies with 50 or more employees need to…

“Proper business planning demands that you focus on the self-interest of the customer at all times.” – (Brian Tracy, Author and Speaker) Writing a business plan can feel like a daunting process, and making mistakes is part of the package, even if you follow the online guides and templates.  To make this process simpler, we have made a short list of common errors that somehow keep creeping into these vital documents. Making it too long As Amazon founder Jeff Bezos once said, “You know the business plan won’t survive its first encounters with reality. It will always be different. The reality will never be the plan.” He did, however then go on to stress that writing a business plan is essential to understanding what will make your business tick. It’s important to realise that your business plan will never be able to cover every contingency and every possible incident that can occur and should rather be focused on revealing the core business. Once you understand your core business implicitly, you will be able to write it down in a much more succinct fashion. A long business plan is therefore only evidence that you don’t yet understand what’s going on. Understand your target market No product is for everyone. Understanding who you are selling to and what will motivate them to buy is the first thing any investor will look for, and the most fundamental thing you will need to understand to be successful. It will shape who you hire, what your marketing looks like, and even what your startup's logo will be. Simply believing you will market to everyone is putting your business on the path to failure. Ignoring competitors It is extremely common for companies to exclude business competitors from their business plan. Many believe that their new product is so superior, cheap or well-supported that competitors won’t stand a chance once it is marketed correctly, or simply don’t have as much understanding of the market they are entering as they think they do.  Having a sound, realistic competitor analysis shows investors you understand the market and know where your unique differentiators lie. Neglecting a financial forecast Many business plans ignore financial forecasts as they either don’t have the experience necessary or don’t believe they are important – of what use is guessing things that don’t exist? The truth is that a good financial planner or accountant should be able to help with these forecasts which need to include profit and loss, but also, essentially, cash flow and balance sheet. This area of the business plan will reveal to potential investors whether your plan has been carefully thought out, and takes realistic rates of growth into account, or whether it’s simply pie in the sky. No investor is going to work with someone who believes they will sell a million items in the first three months. Being too strict The business plan should always be viewed as a guide and not as a set of hard and fast rules.…

“Consumers don’t just buy products and services anymore; they buy experiences. This demands a new approach to marketing, sales, and services; one that hinges on winning customer trust.” (Ben Jackson, Author "The Future of Commerce) With customer trust being the most important element in attracting sales, contracts and clients, gaining that trust is an important step for any new start up. How can you make sales if you have no way to prove you are good at making sales? These tips should help any start up build that all important trust and make their first sales. Make top level products It may seem obvious, but whether you are offering a service, or selling products online, the first, and most critical thing you can do to develop as a company is to make sure your product is as high-quality as possible. Products that are easy for a customer to use, and that fulfil the client’s needs will always win their loyalty. Price your product accurately Pricing a product isn’t as easy as adding profit to cost. You need to price your product in such a way that you are covering all costs, making a profit, and pricing yourself correctly within the market. Getting this right will be crucial to finding, developing and retaining customers. Your accountant can help ensure no one feels cheated while you are also operationally effective. Provide top level service in every way The first few weeks and months of operation are absolutely critical when it comes to customer service. It may feel like nothing is coming in, but the day you receive an email it would be extremely wise for you to answer as quickly as possible. Handling enquiries politely, quickly and thoroughly will translate in the customer’s mind to a business which is caring and paying attention. Show them your humanity The first inclination for any customer is to mistrust brands – they are money-making machines. We do, however, want to trust new people we meet. Because of this, it’s a great idea to reveal the human face of your business early. Use the About Us page to introduce yourself and the team right from the start. Let people know your story, and how you came to establish your company. This allows you to imbue your brand with the real-life values you believe in and so establish the human connection in a way that only small brands really can. Offer a free sample People view free things as being risk-free interactions, and so are generally likely to take you up on the offer. By trading free samples or an hour of your work at no cost, in exchange for nothing but an email address, you give clients the chance to try your product or service and potentially even leave a review. You also get their email address, which is a good way to communicate with them and establish a genuine relationship. Use testimonials Whenever anyone compliments your business, you should think about asking them for a…

"The time to prepare for disasters is before they happen” (Stephen Matheson, Vice President of Product at BridgeHead) Given how reliant we all are on our IT infrastructure, it will come as no surprise to learn that one of the worst things that can happen to a business is for a failure to occur in that department. Whether it’s fire, floods, or hacking, being taken offline can spell a serious period of trouble for most organisations. In the time it takes to get back up and operational projects can be delayed, the quality of work can suffer, or worst of all, everything is put on hold for months while data is recreated. All of this can lead to strained relationships with both customers and suppliers and potentially the end of the business. A Disaster Recovery Plan is the pre-planned process a company will turn to when disaster strikes to ensure that a short-term problem does not become a permanent one. Here are five simple tips for what you need to consider when drawing one up. Have a response checklist The response checklist is a detailed breakdown of which employees should be contacted and what they should do in the event of a disaster. These should cover everything from who phones your IT support company to who puts out the fire or organises the evacuation drill. Ideally, these responses should be practiced. It’s no good telling someone they have to turn off the building’s water in the event of a flood if they don’t know where to do that. Have a data backup plan All company data needs to be backed up, as regularly as possible. How this is done will depend on how vital that data is to the operational capabilities of your business but should happen at least once a day. Look at your company carefully and decide which information is vital and which can safely be lost. You don’t need to back up all your client emails if you also keep other records of their projects for instance.Data is a business asset and has real value. The more important the data, the more strictly and safely that data needs to be backed up. Can you do it yourself on a hard disk that the secretary takes home, or do you need a full-scale external, cloud-based solution? How are you going to tell your clients? While it's usually a good idea to keep drama and difficulties far away from your clients, in this instance it may be important to tell them what is going on to explain any delays they may be about to experience and how you are planning to meet their orders.  In addition, provide them with any alternate contact details.Your plan should detail exactly how that is going to happen. Having pre setup and approved email addresses and telephone numbers organised will save a lot of time and frustration until your company is back on its feet. Cost considerations Your plan should also take into account…

"We want to assure business that by the time you get back to work in January, we will have a much more stable situation." (Public Enterprises Minister, Pravin Gordhan, December 7, 2018) With loadshedding now a constant reality in our lives and Eskom and the government offering no signs of any form of short-term recovery, small business owners are being forced to increasingly adapt in order to survive. Here are our top five tips that might help, beyond simply “buy a generator/inverter”. Adopt work from home Those who are single will have heard the advice to date someone on a different loadshedding schedule, and this tip can be liberally applied across a company. By allowing staff to work from home, most businesses can be reasonably assured of having someone online and capable of handling client calls and enquiries at any given time. At the very least companies need to be looking at offering flexible work hours, so they don’t find employees sitting in the traffic caused by all the traffic lights being out, only to arrive at work to sit in the dark. Allowing staff to do the work when and where they want could do wonders for productivity. Perhaps you can even negotiate with a local coffee shop for discounts when your staff come to work there? Move to cloud-based solutions If you aren’t already using cloud-based solutions now is the time to adapt. Storing everything you do on the cloud with storage and backup solutions such as Dropbox or Microsoft’s OneDrive will mean your data can be accessed from anywhere and is much less likely to be lost should servers or computers become damaged by the power cuts. Set computers to do regular saves and backups so nothing gets lost. Use mains-free tools If your tools can come in a battery-operated version, then now is the time to start trading out of plug reliant technology. PCs should be traded in for laptops, electric cookers and fridges can be traded in for gas and everything from power tools to hairdryers have battery operated versions. Move your company's main number to a cell phone or to a VoIP solution and make sure all key personnel cell phones are permanently charged. Unplug equipment The second the power goes down it’s time to unplug all the expensive equipment. Don’t take the risk of the surge destroying your vital machines, assembly lines and computers when the power comes back on. If you can, invest in insurance, but make 100% sure that it covers loadshedding damage, as some companies have removed that protection from their contracts. Ensure that your, and your key employees’ Wi-Fi connections are attached to a UPS system. Use more than one payment system Using two or even three different network options will ensure you are always able to take payments whenever your equipment is charged, even if the power is off. Don’t lose a vital sale or shut up shop simply because you have a contract with one network service…

“Good fortune is what happens when opportunity meets planning,” - Thomas Edison You have your idea, you have your mission statement and perhaps you even have an idea of who your first customers will be, but there are still a few things you should consider doing before you launch your company. When it comes to your finances doing these five things in advance will ready you and your business for success and allow you to focus more on the company and less on the necessary financial administration. Deal with your personal finances For some entrepreneurs starting a company is seen as a way to get themselves out of financial trouble. Unfortunately, if this is the case, the company will be starting off on the back foot. If your motivation for starting a business is as a way to repay your own loans or debts, then you won't be making the best decisions for the company. Ideally, your finances should be clean with debts paid off and taxes up to date. This will allow you to focus on the company for what it is, rather than on what you need. Ideally, you will be starting your company with your own personal finances sorted for the first six months at least, and with no debt.  If you are in trouble, or don't have any savings, then it is important that you get any loans and debts under control and reshape your personal expenses in line with leaner times before you take your first new business step. Consolidate any debts you may have and arrange for lower monthly payments. Cancel any unnecessary services and costs and try to get your monthly outgoings as low as you can before you quit your job or start your company. You are going to have tough months and it's important that you are ready to weather them if you hope to succeed. Open a business account Many new businesses begin as extensions of the owner. Sometimes the owner's finances are used to pay for business expenses and these costs get lost along the way in the search for success. It is therefore important to decide on a vehicle for your business (ask your accountant to advise you on whether you will be best off with a company, trading trust, or sole tradership) then open a business banking account to more accurately keep track of exactly what is owed by your business to you, or you to your business. All relevant business expenses are tax deductible, but this can't happen if they aren't accurately tracked and accounted for in the business. Opening an account will help you not only look more professional but also track your income and outgoings more effectively. Get your taxes up to date Your personal taxes are an important aspect of business leadership. If your taxes are not properly filed and up to date when you have a job, the chances are they are only going to get worse. Ask your accountant to look…

“In business, you don't get what you deserve, you get what you negotiate,” Chester Karrass, Founder of Seminar group Karrass. At some point, around halfway through the pandemic, experts began to whisper that office space was dead. “No one will be using an office by 2023,” they said. And yet, while it's true that office space use has declined steeply in some parts of the country, many companies are still finding a use for a dedicated environment in which to conduct business. Do you need an office for your business? Remote work has proven that the humble office we remember is not essential, but there are still several functions an office can serve. For many employees, an office can serve simply as a distraction-free environment in which to work, while for others it may cement team relationships. For others, it can be a way to separate work and home lives. Employees also often need physical meeting spaces, a place to pore over designs and showcase physical models. Moreover, introducing new employees is easier in a formal physical office space, as is hosting company celebrations. Despite this, remote work has seen a decrease in demand in many parts of South Africa and given this there has never been a better time than now to negotiate for that dedicated office space if you find that your company needs it. These tips will help you get what you need. Get the right amount of space Here's a quick guide to getting the space you need and no more: Conference room (15 to 30 people): 75 to 90 square metres Small meeting room (2 to 4 people): 30 square metres Large meeting room (4 to 8 people): 45 square metres Manager's office: 25 square metres Senior Manager's office including private meeting table: 50 square metres Server room (1 to 4 racks): 12 to 40 square metres. In addition, you will need roughly 30 square metres of space per employee. This may adjust upward dependent on the kind of work you do (do your employees need to spread plans out on their desks for instance?) or downward if employees are hot-desking and not expected to be in the office each day. Finally, remember your future expectations. If the plan is to hire more people shortly, then they should be catered for as well. No use incurring the cost of moving in a few years if you can avoid it. For a more accurate picture that includes what you need, try this office space calculator. Consider also the “hive” or “shared office space” alternatives on offer in some cities. Other facilities When renting an office, you may want to consider a variety of factors that don't include size. How easy is the office to travel to? Is there traffic and easy access to public transport? Does the block have a generator or solar for loadshedding? Do you need access to printing shops or mailing? What sort of hours will you be open, and will employees need night…

“Pricing power is important in business. You want your business to have the ability to raise prices as needed, especially with regard to inflation.” (Hendrith Vanlon Smith Jr) It is imperative that businesses increase their fees, rates or product prices annually by at least the rate of inflation, just to keep pace with the ongoing increases in the cost of materials and production. Inflation is the increase in the cost of goods and services in an economy. It ensures that, year after year, a business pays more and more for the same goods or services it uses in the production of its income. The higher the inflation rate, the higher the increase in your costs each year. Without related annual price increases on goods or services provided by your business, the inflationary increases in the costs of production will result in lower profits, reduced product or service quality, or even market perceptions that your goods or services are cheap. In addition, the compounding impact of not increasing prices means your business falls progressively further behind in its ability to generate the appropriate and needed levels of profits. Why do businesses neglect price increases? There are many reasons why businesses do not increase their rates annually. Some may simply not have the business skills to set or maintain correct pricing. Many business owners are concerned that in a highly competitive market, a price increase will result in lost customers - a fear that was particularly heightened during the COVID years. Most businesses may simply not know how to increase their prices, especially if they have not done so for a few years, and then a substantial increase is required just to return to previous levels of profitability. Why increases are crucial In South Africa, the inflation rate is currently at a 13-year high of 7.5% - almost double the average inflation rate of 4.5% in 2021. This means that the cost of producing goods and services has increased by 12% over just two years, and without a related increase in sales prices, your business profits are being eroded at an alarming rate and with every sale.         Conversely, increasing prices correctly can have a substantial impact on a company’s profitability. Studies quoted in The Harvard Business Review found that improvements in price typically have three to four times the effect on profitability as proportionate increases in volume. In fact, it was noted that a 1% improvement in price, assuming no loss of volume, increases operating profit by 11.1%. Top tips for implementing price increases Speak to your accountant about the impact of various price increases on your company’s income, profitability and tax liabilities. Remember to discuss the potential impact of price increases with all staff, from the production team to marketing, sales and the accounts teams. An easy place to start raising prices is to issue quotes for new business at the higher prices. Include an annual price increase clause in all new client contracts and in contracts that are…

"Communication is a skill that you can learn. It's like riding a bicycle or typing. If you're willing to work at it, you can rapidly improve the quality of every part of your life.” (American business speaker Brian Tracy) Successful communication can be the difference between a profitable business and a failing one. Leaders who are unable to get across the needs of the company to their employees will very quickly close its doors. Likewise, people who are effectively able to communicate the things they need to be done will find their reward in a harmonious team and profitable enterprise. This article is for those people who believe themselves to be among the latter. Those who have managed to traverse the minefield of communication and who find themselves surrounded by a largely effective team. In this position, it is possible you may still be making communication errors that are chipping away at your profitability and leading to a team that isn't as effective as it possibly could be. They are common errors that anyone could make and everyone has seen at some point, but they definitely impact the bottom line. Here is how to cut them out and take your company to a brand-new level. Avoid these communication errors Not answering the questionNo matter how well you explain things, being a leader sometimes requires you to answer follow-up questions from your team. While most of the time these questions are simple enough to answer, there may be occasions in which a manager may not be able to answer the question. Perhaps they don't know the answer or simply didn't take time to understand the question or misunderstood the question.When it comes to the effectiveness of your employee who is asking the question though, purposefully avoiding a response is as bad as mistakenly answering it incorrectly or ambiguously.For example, imagine your employee has sent you an email asking, “Did you say you wanted that report today, or next week?”A distracted communicator may see the first half of the message and rush to reply “Absolutely” or “Yes.” This ambiguous reply now wastes time and further confuses the employee. Does this mean the deadline has been pushed out or that it's still due today? The employee may then be forced to follow up, or worse, assume an extension has been granted when it has not. Either situation wastes that employee's time and can even lose a client.Avoid this simple error by ensuring you automatically read the full email and understand it before responding. Then make sure you make it clear which answer is to which question. Don't assume the employee will be able to infer what is meant each step of the way. Too much informationThere is a very clear difference between providing your employee with the context and information they need to do their jobs and live up to expectations and giving them too much information. Giving an order with the right amount of information and the proper context will save time…

“Metaverse isn't a thing a company builds. It's the next chapter of the internet overall” (Mark Zuckerberg, Meta) Among businesses, one of the most misunderstood aspects at the moment is ‘The Metaverse’. Businesses that do understand this new phase of the internet are currently seizing opportunities that their competition doesn't even know exist. This is beginning to change the face of business and social interaction around the world. But what is the Metaverse and why should you be paying attention? What is the Metaverse? Quite simply, the metaverse is an extension of the current internet. It is a virtual three-dimensional space where people can interact with one another by developing 3D avatars. This space can take on the appearance of numerous real-world places, such as meeting rooms or concerts, or even more fantastical spaces. It is a fully immersive space on the internet A blend of virtual reality, second lifestyle online worlds and augmented reality, the Metaverse can be accessed using a simple smartphone or laptop. This makes it extremely accessible for everyone. What will it be used for? No one knows for sure just how wide the eventual use case will be, but it will no doubt be huge. Some diverse examples will help illustrate just how fundamentally this might affect our lives and businesses: Advertising and marketing – finding new customers and communicating with them; The average person in the street - who may use it as a virtual reality gaming platform, or a place to attend a concert by an artist they would otherwise never get to see; Businesses tapping into machine learning and AI to incorporate multiple, diverse data sets into a virtual space to improve presentations and decision making; Surgeons from around the world all interacting over a patient's scans; Classrooms exploring the James Webb telescope images in 3D projections they can fly through; Immersive in-depth product demonstrations; Interactive TV shows; Remote maintenance assistance to areas where technicians are usually unavailable; or News production that puts viewers seemingly on the spot. At the moment, the opportunities seem unlimited. How will this affect your business? At the moment only a small percentage of businesses are using, or even aware of the Metaverse, but this is set to change.  A recent Gartner Marketing Survey found that 35% of consumers have never heard of the Metaverse but as per projections, Gartner expects that by 2026, 25% of people will spend at least one hour a day in the Metaverse for work, shopping, education, social media, and entertainment etc. Be ready to adapt! Here are just a few areas the rapidly developing Metaverse may impact your industry: Remote work Using the Metaverse for remote work will involve more than simply creating a virtual office to connect teams that may be working from home. Short, interactive virtual reality meet-ups could allow chats between colleagues and facilitate gatherings with, for example, a comedian or musician for entertainment. Three-dimensional online shopping Online shopping has the distinct downside of not allowing customers to interact with what they…

“In a way, fraud in business is no different from infidelity in marriage or plagiarism in scholarly work. Even people committed to high moral standards succumb” (Miroslav Volf, Director of the Yale Center for Faith and Culture)  Fraud (in this context) is the act wherein an employee or trusted partner makes a financial gain through criminal behaviour or deception within an organisation and it is extremely common. Recent studies suggest that as much as 46% of all companies will succumb at some stage or another. Given this, much thought has been put into how to prevent fraud and lower the impact that it can have on a business. Unsurprisingly, the issue is extremely complex and there is a lot that you as a business owner will need to do if you want to avoid the financial loss and reputation damage that fraud can cause to your business.  What is fraud? Business fraud has many aspects, and generally comes in three defined categories: Asset Misappropriation This is the most common type of fraud. Some numbers suggest that 90% of all fraud is this kind, in which employees will either steal or exploit their company's resources. Examples include where employees make false expense claims, help themselves to cash or even non-cash items, the creation of ghost employees, “buddy clocking” systems or under recording of the cash that is received for goods.Financial Statement Fraud Significantly less common than asset misappropriation these schemes are, however, significantly more damaging to the company itself. This is the deliberate manipulation of financial statements to mislead those who would use those statements for legitimate purposes. Usually, this is done to make a company appear more profitable than it is, or to avoid tax payments. CorruptionCorruption occurs when employees use their influence or positions in a company to benefit themselves to the cost of the company or agency for whom they work. An example of this would be when someone agrees to hire a less than ideal candidate because they are being paid a kickback to do so. Tips for detecting and preventing fraud Know your employeeAccording to the Association of Certified Fraud Examiners the average fraudster will operate their scheme for 18 months before getting caught. The reason for this according to employers’ reports is that quite often it was the employee they least suspectedIt is therefore vital to have regular feedback sessions with employees, even those who have been with the company for a long time, to discuss their personal circumstances and be aware of any significant changes in their lives. Someone who has been a model employee for years, may, due to changes in their life’s circumstances, feel they have no choice but to steal to make ends meet. Look for those employees whose habits have suddenly changed or who exhibit a change in attitude. These habits can point to problems in their personal lives, or potential bitterness at their employer resulting from perceived slights they may have received, such as a poor raise, or lack of promotion.Fraud policySet up a fraud policy and…