Now is the time for South African businesses to re-strategise their energy sources and consumption patterns, for a number of reasons that have recently been highlighted. With the challenges of Stage 6 loadshedding still fresh in our memory, government’s multiple measures to address this national crisis, announced just a month ago by President Cyril Ramaphosa, confirm that there is no quick short-term solution for Eskom’s woes, leaving us responsible for proactively securing our own alternative energy solutions. Fortunately, advances in technology and financing models continue to create more effective and affordable solutions. There are also tax incentives that make it more attractive for businesses to invest in energy efficiency measures and alternative power generation projects.

What qualities would your perfect customer have? On the surface this is a casual question, but a little examination shows it to be one of the most important ones any small business leader will have to answer. The traditional view of customers would hold that anyone you can attract to interact with your company and buy products or services is the ideal customer – the world is your potential client, and you should act accordingly. But what if that wasn't true? Learning to tell the difference between good customers and bad ones will be a critical skill for any small business owner with limited resources. Bad customers can waste time, extend resources and ultimately produce very little revenue, while the good ones can become the launching pad to bigger and better things. But how do you tell the difference? Here are the signs that will help you separate the good customers from the bad.

It's no secret that economies around the world are struggling. Increased inflation, booming petrol prices and erratic stock markets are everywhere, and South Africa is not immune. Recently an economist at Oxford Economics Africa, Jee-A van der Linde, was quoted in the daily Maverick speaking about South Africa specifically. “Real gross domestic product [GDP] contracted on a quarterly basis in Q2, and we expect sluggish growth in the quarters to follow. The possibility of more intense load shedding in Q3 could see the economy enter into a recession,” he said. With recession a distinct possibility in the near future, tough times are doubtless ahead for many businesses and avoiding closure is going to become a priority. So, what can you do to assist your business, ease the pressures of recession and get through to the other side?

When it comes to managing a small business, no tool will be as important as your accounting software. Accounting software allows entrepreneurs to track accounts receivable and accounts payable, have a clear understanding of their profitability, and be prepared for tax season, all of which are essential for keeping cash flows intact and fulfilling obligations. There are, however, a myriad of accounting software solutions available on the market, most of which have features or services a small company may never use. Investing in the wrong accounting software can be like going to the dealership for a small runabout and coming home with a Ferrari. So where does a small business owner begin and just what should they be looking for when it comes time to buy this vital piece of software?

Credit. If you own your own business, it's very likely you already understand the valuable role that having a good credit score can play in a person's private life, but it is just as valuable for your small enterprise. Business credit is one of the most important tools in any entrepreneur’s toolkit. Building a good credit reputation helps the business qualify for credit facilities such as business credit cards and loans, and can open up many other funding opportunities. Your business’ credit begins when you register your new company and is likely to become an important aspect of your success. So how can you build your credit score to ensure you have the best possible score when the time comes that you need it?

Cash flow has been called the ‘lifeblood’ of a business, and all business owners can attest to the harsh reality that cash flow can make or break a company, particularly in the still-constrained financial circumstances of the post-pandemic business world, in which inflation and rising interest rates are creating further cash flow challenges. Given the crucial importance of proactively managing the cash flow in your business – and the fact that it is one of the biggest challenges most business owners face - we share in this article ten top tips you can implement in your business immediately to maintain a positive cash flow and ensure adequate cash flow reserves are always available as the end of the year approaches.

Being in business can sometimes feel a little like running a race. There is a fear that if you aren't moving forward, you are somehow falling behind. This sense leads to business leaders constantly sniffing out new opportunities, and trying to develop, create and grow new avenues of income for their company in the hopes that being diversified may help make them immune to imagined economic crises of the future. Leaders may therefore be surprised to discover that while finding new areas for growth can ultimately help a company it is not always the best solution. Beware of unnecessarily innovating, branching out and pushing boundaries which in turn can mean the obvious choices or otherwise smart decisions may be missed. Here are the reasons that keeping things simple, can be the best solution for your business.

Starting a business is often a lonely process. In the beginning you are doing it all, from registering the company to meeting with clients, putting together presentations and managing stock. As the company grows it then becomes necessary to start giving some of these tasks to other people to ensure everything can get done and it's at this stage that business owners need to learn the subtle art of letting go of full control. As the company grows even further it's going to be essential that more and more important tasks are taken out of the hands of the company founder and given to employees to do, but this doesn't mean the founder no longer has a say in what happens. The transition from doing to leading is probably one of the most important steps a company founder will take and like any other skill it can be learnt. Here is how.

Building your business has been hard, but right now it all seems to be working. You have dozens of clients and a history of good service and strong reviews. It may seem like it will be all smooth sailing from here, but this is almost certainly not the case. As the Covid-19 pandemic proved, a crisis can come out of nowhere and take a successful company to the very edge of bankruptcy or even close it down. Pandemics are fortunately rare, but company closing crises are sadly not. Not all crises are as obvious as product defects, large accidents or a PR disaster. As former senior partner of McKinsey & Company, Doug Yakola says, “sometimes managers underestimated how critical their situation was - or they were looking at the wrong data.” Whatever crisis may befall your company, here are 6 things you can do to get out of it.

The legacy you would leave behind, if today turned out to be your last day, is detailed in your current estate plan and your will (“Last Will and Testament”) - quite possibly the most important document you will ever sign, because it is the only way to ensure those you care about are protected and properly looked after once you are gone. If you are also a small business owner, you will need to include your business in this crucially important planning. We share six key steps to take without delay to ensure your loved ones, partners and employees are taken care of and the business can survive after your passing, leaving a legacy that truly reflects your life’s work and intent.

Informed business decision-making - from effective daily financial management to strategic future planning - requires specific, timely information that allows business owners to understand where the business stands financially at a certain time, what is happening over a period, and where action is required to improve financial performance. This information can be found in a number of common financial reports. When regularly reviewed by small business owners and corporate companies alike, these reports provide a finger on the pulse of an organisation’s financial performance and enable owners and managers to make informed business decisions quickly. In this article, we find out what insights these reports reveal, and which five reports business owners should review regularly

If you are a small business owner it can often feel like you need to do everything yourself in order to keep the wolf from the door. It's easy to feel like everything you can do is money saved. This is, however, misleading and trying to do everything yourself can in fact put your company at a larger risk than if you let other professionals take care of matters for you. Knowing when, where and which services should be outsourced is going to be a critical step along the pathway to success. Optimizing this process will free up your time to focus on core business areas, while also bringing in fresh thinking and expertise that can invigorate the business, lead to fresh insights and take your company to the next level. So how do you know when it's time to outsource a particular task, and which tasks are those most in need of outsourcing?

SMEs have financing opportunities some owners may not be aware of, or if they are, may not know how to fully take advantage of them. There are various schemes available to assist SMEs with grants, business loans and “soft loans” and development programs. These schemes are primarily to support SMEs finance operating costs and expansion projects – however they mostly have an undertone of creating and protecting employment – together with training and skills development.

Individuals, special trusts, companies and small business corporations will see some relief from the Budget 2022 proposals, and to help you quantify that, and as a convenient reminder of the various other taxes that remain unchanged, we share both the official SARS Tax Tables and a link to Fin 24’s Budget Calculator (just follow the four-step process to do your own calculation). The Tax Tables cover Individuals, Special Trusts and Trusts, Companies, Small Business Corporations, Turnover Tax for Micro Businesses and Transfer Duty. Click on the links below each Table for the full SARS “Budget Tax Guide 2022”.

The death of an employee can be a devastating event in a company, particularly in smaller businesses where colleagues work together closely and have become like an extended “work” family. In times of pandemic employers unfortunately face an increased likelihood of an employee passing away and should be prepared to handle this event with the necessary respect and compassion and to keep the business running, while also ensuring that the various compliance and tax matters are addressed swiftly. In this article, we look at seven crucial issues to address immediately when an employee has died. This will not only ensure that the deceased’s family do not experience delays caused by the company but will also reassure other employees.

Statistics South Africa recorded 997 liquidations of companies and close corporations between January and June 2021, 44% up from the 763 corporates over the same period a year before, reflecting how tough the impact of the pandemic has been on the private sector. The medium and long term knock-on effects of the pandemic and restrictions on business activity will doubtless be even more detrimental, and the danger to businesses, particularly small businesses, should not be under-estimated. There are lessons to be drawn from businesses that survived, and it is important to note how they made it through one of the toughest economic climates in memory. We share four insights which every business should take note of in planning for the future…

Whether it’s referred to as the End of Financial Year or “EOFY”, Close of the Financial Period, Financial Year End or FYE, or simply ‘Year End’, this important time is just around the corner for many companies on the 28th of February. It is the end of the annual accounting period and an ideal opportunity to assess your company’s finances and performance. In this article, we find out why companies have a specified financial year end; why it is important; how to ensure your business ticks all the financial year end compliance and tax boxes; and how to reap the maximum benefits from an accurate and timely closing of the financial year.

Statistics South Africa recorded 997 liquidations of companies and close corporations between January and June 2021, 44% up from the 763 corporates over the same period a year before, reflecting how tough the impact of the pandemic has been on the private sector. The medium and long term knock-on effects of the pandemic and restrictions on business activity will doubtless be even more detrimental, and the danger to businesses, particularly small businesses, should not be under-estimated. There are lessons to be drawn from businesses that survived, and it is important to note how they made it through one of the toughest economic climates in memory. We share four insights which every business should take note of in planning for the future…

The SARB's first interest rate hike in November 2021, following almost two years of record low interest rates, signaled a change in the interest rate cycle earlier than many experts had expected, with further increases planned in each quarter of 2022, 2023 and 2024. Rising interest rates have a significant impact on the economy, and certainly on businesses across sectors, impacting cash flow, the cost of and access to credit, as well as the businesses’ customers and their spending patterns, all of which also affects business planning. Let’s have a look at how the interest rate increases will affect your company and share some thoughts on how you can buffer your business against them…

A third of respondents surveyed during a recent study into the hybrid workforce indicated they would continue working from home. Around the world the Covid-19 pandemic has changed work practices and South Africa is no exception. This required a practical solution from businesses which has resulted in the hybrid working model. This may give small businesses a chance to reduce office space and inventory, and possibly to repurpose the funds.

Since 2001, taxpayers in South Africa have been liable for Capital Gains Tax (CGT) on profits (capital gains) arising from the disposal of assets – at a hefty 18% for individuals. There is a less well-known specific exclusion to the CGT payable on the disposal of a small business or its active business assets that provides certain small business owners with welcome CGT relief that could be a substantial boost to your future plans. In this article, we provide a quick overview of the many conditions that apply before small business owners can claim this exclusion of up to R1.8 million; some examples to illustrate the substantial difference it can make to your future plans; as well as best advice for maximising this exclusion.

Building and maintaining an effective online presence should be at the heart of any business plan, and it may come as some surprise in 2021 that there are still a huge number of businesses with absolutely none. Owners cite the fact that they are “not in a digital industry” but they ignore the internet at their own peril. The truth is that an online presence is vital for boosting profitability in any business, even for brick-and-mortar stores that don't conduct e-commerce. Further, in a world where 250 000 websites are created every day, it's important that the website you do have stands out, delivers on your brand promises and can be quickly and easily found by anyone who is looking. Here are six tips to make sure that happens.

Cashless transactions have been increasing in popularity as a preferred means of payment, particularly by smaller businesses and particularly since the start of the Covid-19 pandemic. “Fintech” solutions such as tap-to-pay, interbank instant deposits, eWallet, PayPal, Snapscan, Zapper continue to grow in popularity. We have a look at a survey conducted during the pandemic, and at the resulting report which draws out interesting behavioural changes taking place under lockdown and discusses whether these will endure. There is a notable move towards digital methods of conducting financial transactions and SMEs are embracing the trend. We list four reasons why this could benefit your small business.

Starting a new business can be stressful. Long hours and late nights become the norm as you battle to do as much as possible yourself knowing that taking on staff is a big commitment. Understanding just when to onboard staff and pass on some of the responsibility is a skill in and of itself, but you need not take the plunge immediately. Building a team of reliable freelancers can give you as a business owner peace of mind within a budget and has none of the commitment that hiring staff does. A team of freelancers can easily be upgraded and downgraded as necessary depending on conditions and you only need to hire to fit your current workload. It is this flexibility that makes working with freelancers a valuable tool to growing your business. Here is how you do it.

For many, having their own business is a dream. It seems to hold out the offer of independence and the opportunity to do things your own way and ‘be my own boss’. However, for many this dream turns out to be one of hard work, loneliness, long hours and the need to be effective in many varied skills. Any business, no matter how small, is in reality the real task-master. So, could collaboration with other small businesses offer the opportunity for growth? This article is based on the true story of a plumber and his collaborative climb to success.

Microinsurance in South Africa is regarded as the next big thing, however there is still a lot to be learned about this growing area of insurance and how small businesses and their employees may benefit. Traditionally the microinsurance sector offered only funeral cover. However, since the Insurance Act of 2017 became effective on 1 July 2018, it now offers more options. On a practical level, microinsurance now offers life insurance, credit life insurance, risk insurance and funeral cover. In addition, non-life insurance categories of motor insurance, property insurance, legal expenses cover as well as accident and health insurance are available. However, SMEs run the risk of wasting money if they include these covers as employee benefits without doing their due diligence.

Starting a new business will force the owner to take on many roles and wear many hats. Having a broad range of skills, or at least a thorough understanding of just what is needed is essential for small business owners/managers where bad decisions and poor judgement can have a much quicker, and potentially fatal, impact on the bottom line than in larger organisations with checks and balances in place. From the outset a small business leader must keep track of every aspect of their business, but there are some areas that require a lot more focus than others if that business is to succeed. These are the five leadership skills every entrepreneur must have.

It's no secret that the business environment is tough, particularly for small enterprises where the margins are always a little thin. One late payment from a client can cause consternation, but what happens when that client fails? The chances of one of your major clients collapsing before paying you is very real and sometimes there may not be any warning whatsoever. This situation can be a death knell for a company that has already spent the expected money. So, when a client goes bankrupt, how do you avoid slipping under with them? Here is a list of six things you can do to ensure your client's misfortune doesn't become your own.

On 18 July every year, Nelson Mandela International Day is observed worldwide as companies, organisations and individuals join in a global movement to honour our former president’s life’s work and to change the world for the better. It is a great opportunity for companies and individuals to ask: “What can we do to make the world better?” Discover great tips for ensuring your company makes an impactful contribution, get inspired with our extensive list of ideas and find out what the benefits are for your company…

If you are an entrepreneur then you no doubt carefully look at your company's profit or loss statements to analyse how the company is doing. Your balance sheet and annual reviews and the reflected profit and profitability seem the obvious way to determine the health of your organisation. What many do not however know, or focus on, is all those other, non-financial performance measures that may give you an even better understanding of the future potential of your company. These non-financial performance measures are all those things which are not expressed as a monetary value and instead focus on other aspects of the business. The benefit is that often, unlike lagging measures like profit, these non-financial performance measures may actually be a better predictive tool for gauging the future success of your business.