Business Tips - What is Cash Flow?

BUSINESS TIPS –  What is Cash Flow


By Nikki Viljoen – Viljoen Consulting CC November 2009

We all hear the words every day – “Cash is King”!  Clearly it is preferable to have physical cash in your hand, than say a cheque or even money in the bank.  Why do you think that that is?

Firstly if the money is in the bank, then there may be expenses that still need to go off your account, you would still need to go to the bank to draw money or alternatively you may not have the card or the correct access codes to get the money out of the bank.  So having physical cash in your hand is always a good thing.

Let’s have a look at what cash flow is – exactly.  Quite simply, it is the physical money that you have access to at any given time.  It’s not the money that you are waiting to be paid.  It’s not the stock that you are waiting to sell – it’s the physical cash that you have access to at any given time.

Having a good cash flow is absolutely imperative.  As SMME’s (Small, Micro, Medium Enterprises) we need a good cash flow in order to purchase our supplies, to pay rent, to pay our staff and to pay our way in the every day manner in which we conduct our business.  In short it is that lifeblood that we need in order to earn our livelihood, without it we would whither up and literally die.

So how do we get this ‘cash flow’?

First of all we need to get money into the business – this is usually referred to as a “cash inflow” and it is usually made of up four different components, these are:
•    Sales of our products and/or services – well that’s pretty self explanatory.
•    Loan or credit card proceeds – this is either money that we have loaned from a bank or financial institution or indeed money that we have loaned our business in our personal capacity and/or money that is coming to us from sales that were paid for by means of credit cards or indeed money that we have ‘borrowed’ on our credit cards, even money that is owed to us by our debtors.
•    Asset Sales – this would be when we sell assets (such as old computers or vehicles etc) that were previously purchased by the company that we are now upgrading and/or even just getting rid of.
•    Owner investments – these would be property and/or financial and/or business investments that we have made on behalf of our company.

Then of course money goes out of the business – this is usually referred to as “cash outflow” and again it is usually made up of four different components, these are:
•    Business expenditures – these are of course the expenses that are raised in the normal day to day running of the business.  This would also include salaries and wages etc for the staff.
•    Loan or credit card principal payments – just as you got the money either from a loan or your credit card, now you have to pay that loan back or pay your credit card back.
•    Asset purchases – again, just as you sold old equipment or equipment that you no longer needed, so now you have to buy new equipment and/or assets for the business.
•    Owner withdrawals – again that is pretty self explanatory and it is when the owner takes money out of the business for personal use.  These drawings are usually offset against the money that the owner has lent to the business out of his/her loan account.

Both the ‘Cash Inflows’ and the ‘Cash Outflows’ also fit into three main categories within the business and these are:
•    Operating – this covers the sales of product and/or services of your business, together with the business expenses that you incur in the selling of your product and/or service.
•    Investing – this would be all the assets that you buy and sell and
•    Financing – this obviously covers all the loans and the repayments of the loans as well as the money that the owner has invested into his/her business and the withdrawals that he/she makes for personal use.

So there you have it, basically what cash flow is and the ‘how’ and ‘what’ it relates to.

Next time we will have a look at some simple tips on how to manage your cash flow.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

MOTIVATION – Greatness is Consistence

MOTIVATION –  Greatness is Consistence


By Nikki Viljoen of N Viljoen Consulting CC – June 2011

I recently attended the International Women’s Day Centenary Conference here in Johannesburg.  Wow!  What an intense but motivational experience that was.

We were lucky enough to have some really interesting internationally renowned speakers as well as some really powerful local women.

Our very own Venete Klein, who used to hold one of the top Management positions in ABSA and who has recently left the bank to pursue her own dream of owning a business, was our opening speaker.

Venete, during her speech said that ‘greatness is not brilliance, greatness is consistency’!

How profoundly powerful is that?  Many SME’s who I encounter seem to think that ‘greatness’ is about being powerful or being brilliant, or indeed being rich beyond measure and whilst there are many individuals who could be called great, who have all of these attributes too, the fact of the matter is that their ‘greatness’ is attributable to the fact that they have been consistent in their endeavors.

Consistent in their goals.  Consistent in their focus.  Consistent in the application of their actions to achieve whatever it is that they set out to achieve.

The mental picture that this always produces for me is the one of Nelson Mandela when he was released from prison – can you just imagine how focused he must have been to have endured 27 years of prison – my mind boggles!

By remaining consistent in his beliefs, his goals and his dreams, he achieved what was thought to be impossible. 

So don’t worry about the power and the wealth – that will all come when it does – just be consistent in your actions and your dreams.  Just continue to put one foot in front of the other, you’ll be amazed at what you will be able to achieve.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

HR 101 - What to do when . . . You have Contractors Working on your Premises - Part 2

ARTICLE 42

WHAT TO DO WHEN . . . . You Have Contractors Working on your Premises – Part 2

By Nikki Viljoen of Viljoen Consulting CC September 2009

Moving along from last week, when we saw Philip, George the Contractor’s employee fall from a ladder when it’s one leg shattered, and where he hurt himself quite badly.  Mike who owns the retail outlet where Philip had his accident may very well be liable for all Philips medical and recovery bills and we are taking a look at how he can protect himself from this.

Apparently there are six ways to ensure that Mike is covered from every possibility and it is these that we are going to have a look at in greater detail today.

First and most obvious is to ensure that your contractors have signed a contract with yourself (have a look at http://www.agreementsonline.co.za).  This contract must include (but not be limited to) the section 37(2) agreement, as we discussed last week, which states that the contractor will comply with all the health and safety laws and your own company rules. 

The contract should also document that it is incumbent upon the contractor to supply you with a copy of their ‘Certificate of Good Standing’ from the Compensation Commissioner which is his proof that he is registered with Workmen’s Compensation.

Make sure that your contractors’ employees have been properly trained in the task that you are hiring them for.  Make sure that they are included in any Health & Safety training that you may be doing with your own staff and that they are aware of your Company safety and health rules.

Make sure that your contractors are compliant in terms of the law.  This includes (but is not limited to) things like First Aid kits and how to use them, fire drills, protective clothing and so on.

Make sure that the contractor that you have hired is fully aware of what his/her obligations are in terms of his responsibilities to his employees and his responsibility if one of your employees are hurt during the course of his employees activities.

If necessary make yourself a checklist of what is required on your site (in Mike’s case his new store) in order to ensure that you are in compliance with the Health and Safety Act.

Failure to do this could result in some very heavy medical bills, rehabilitation bills and additional salary bills that have not been budgeted for.

Remember that getting all your policies, procedures and templates in place is usually far more cost effective than paying the reactive bill.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Blogging 101 - Always be Yourself

BLOGGING TIPS – Always be Yourself


By Nikki Viljoen – Viljoen Consulting CC June 2011

I must admit, I really did have quite a chuckle when I read the article “Be Yourself” by Oleg Mokhov the other day.  You see I am a very literal person and the first thought that jumped up into my mind was ‘well how else could I be anyone other than myself?”  The thought of being or even trying to be someone else is absolutely repugnant to me!

After some thought (and of course reading the whole article through also helped), I got the point.

Mokhov’s point is that that he writes the way that he talks, which is in a ‘very relaxed and informal’ manner and very much like myself, he keeps it simple and easy to understand.

It appears that some people’s perception is that their own type of personality is not particularly successful and the result is that they then try and force themselves to become someone else and quite frankly unless you are an accomplished actor or actress, this just in not going to happen – remember also, even accomplished actors and actresses say the words and become the persona of someone else’s imagination.  So just don’t do it!

In the words of Mokhov “Are you funny, be funny.  Serious, be serious.  Angry, be angry.”

For my part, above all enjoy yourself and have fun – without that, there’s no real point anyway.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Networking 101 - Networking is about Building Relationships

THE POWER OF NETWORKING

PART 119

Networking is about Building Relationships

By Nikki Viljoen of N Viljoen Consulting CC. June  2009

Networking is about building relationships – I am not sure how else to say it!

Perhaps I should paint another picture altogether. 

John and Jane meet each other on a blind date.  Those of us who have been on blind dates know just how intimidating and awkward those can be and how they often result in absolute disaster.

Anyway – I digress, John and Jane meet at a busy restaurant and after a while, engaging in conversation, they begin to relax as they talk with one another and slowly start to get to know one another.

They both begin to realize that in many ways they have the same values, enjoy the same things in life, such as going dancing and spending quality time with family, friends and loved ones.

About twenty minutes into the conversation, John suddenly grabs Jane and start kissing her passionately.  Stunned, Jane manages to pull away and savagely slaps John, hard across the face and without another word leaves.

John is both embarrassed by his behaviour and also by being slapped in public.

Now most of you reading this are probably thinking that John got exactly what he deserved – I know I am, but how and where did it go wrong?

Simple really – it’s all about relationships and timing.  Think about it for a moment.  Had the situation been that John and Jane been dating for several months, Jane would probably have been delighted to have John kiss her publically.  The reality is that they had just met, there was no relationship as such in place, Jane did not know whether she could trust John or even if she liked him enough to want to enter into any sort of relationship with him.  John’s action was therefore inappropriate and his timing was all wrong!

So what makes you think that networking is any different?  Going to a networking event is like going on a blind date – you are going to meet a number of strangers and after engaging in conversation with these people, may or may not result in a fruitful and mutually beneficial business relationship.

Asking for a second meeting (date) to discuss synergies and to explore mutually beneficial opportunities would be far more appropriate than demanding to do business and producing a contract that you want signed on the spot.

Think about it realistically – asking for a referral or wanting business before the relationship has been properly entered into could be the undoing of a potentially successful collaboration.

Getting your timing right and asking for what you want at a more appropriate time would probably result in an abundance of opportunity and more work that you can actually handle.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za

BUSINESS TIPS – Common Mistakes Start-up Businesses Make - Part 2

BUSINESS TIPS – Common Mistakes Start-up Businesses Make -  Part 2


By Nikki Viljoen – Viljoen Consulting CC – July 2011

Following on from last time, here are some more of the common mistakes that are made by SME’s (small, medium enterprises) and start-ups.

Under charging for products and services. 
This one I certainly can relate to as it was one of the mistakes that I made when I started out and it became a really big problem.  You see firstly, the way that you ‘charge’ (especially for services or hourly rates) tells people who you are and even what you think of yourself.  Secondly, it all goes to selecting, in part, who your target market is.  Obviously, if your charges are too high, or not in line with the rest of the industry, this could also have quite an effect on your turnover and obviously your cash flow. 

My biggest problem was that I could not find anyone here in South Africa who was doing what I wanted to do – great opportunity for me, but a bit of a ‘thumb suck’ when it came to fixing prices and costs.  So I used my ‘corporate monthly salary’ as a guide line!  What a mistake that turned out to be.  I also did not factor in a whole bunch of stuff, such as (but not limited to), that although there are (well there should be) eight working hours in a day, five days a week to get the work done (well that’s what I got paid for in the corporate world) – the reality is that some of those hours will be spent on marketing and finding those clients – you can’t charge anyone for that and some of those hours will be spent on admin – you can’t charge anyone for that either.  So the bottom line is that you don’t have 22 days in a month that you can charge out at an hourly rate – more realistically it is around 10 days.  Now that sure messes with your calculations.

The second problem was that because I had come in at such a low cost (R200 per hour), I attracted pretty much all the wrong target market.  Yes, they were the SME and start-up market, which was exactly where I wanted to be, and yes they were in desperate need of what I was offering, just like it should be – the problem was that they could not even afford to pay me at that low rate.

Instead of cutting my losses and walking away from the problem, I compounded it by becoming all emotional and feeling sorry for them, so I offered them a) discounts if they paid me cash and b) terms if they couldn’t!  Bad move on both elements.  By offering them discounts on charges that were already too low, I was not even breaking even and of course I was telling them that I did not value myself very much and quite frankly, if I didn’t value myself very much, why on earth would they value me?  Offering them terms . . .  well let’s just say that that wasn’t my finest decision, especially as I continued to work for them, even while I was trying to get money out of them for work that had been done months ago. I am sure you can see where that went – they disappeared and I never got paid and it got quite ugly.  In my first two years of trading, I wrote off tens of thousands of bad debt that I could ill afford.

Finally I got over my emotional self, upped my prices considerably and found myself a better quality of client . . .  One that could pay.  Are my prices still reasonable?  Of course they are, they have to be in order for me to make any impact in my chosen market, but they are no longer ridiculously low.

So this is very important people, you need to make sure that your charges are reasonable enough to evidence good value for money, but you also need to cover all of your costs as well as leave something over as profit.  It needs to be looked at very closely and very honestly and more often than not, very brutally.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

MOTIVATION – Are You Part of the Problem?

MOTIVATION –  Are You Part of the Problem?


By Nikki Viljoen of N Viljoen Consulting CC – June 2011

Are you Part of the Problem? Well are you? 

Coretta Scott King writes “It doesn’t matter how strong your opinions are, if you don’t use your power for positive change, you are indeed, part of the problem.”

Man, oh man, I can sure relate to this! For the past few weeks I have been sorely challenged by someone who pays lip service to bringing about positive change but who is so blinded by her title (of manager) that she blocks every attempt  to make a change that she hasn’t personally thought about or hasn’t been discussed to death with her in an attempt to get her approval.

Quite frankly it’s exhausting!  It’s been seven weeks of ‘exhausting’ and I am no closer to the goal than when I started.  I am seriously very close to finding someone else to run with the idea. I have no doubt that I am not the only person to have experienced this and I am equally sure that this will not be the last time I experience it either.

You see, this woman, let’s call her Alice, has now become a part of the problem instead of part of the solution, to bring about change. Everything has to be in her time, as part of her criteria and with her own agenda and to make matters worse, she also does not communicate effectively, so if she has a query or is not sure of something, instead of making a call to ascertain what/where/how/when, she does . . .  yeah, you’ve got it, absolutely nothing because “someone was supposed to have told me”!

In the meantime, several weeks of opportunity have gone by, nothing has happened and nothing has been resolved and we are still doing this really weird dance around her!  Yes, I am sorely tempted to walk away and find someone else – someone who understands what I am trying to do and someone with the same code of conduct, same set of ethics and the same intention to make a difference and be a part of the solution. I wonder if her Board of Directors will see the situation in this light when we meet this afternoon and I tell them of my decision.  I wonder if they too will become a part of the problem or if they will stand up and be counted, and be a part of the solution too . . . . ?
________________________________________


Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Blogging 101 - Don't be scared to ask for help

BLOGGING TIPS – Don’t be Scared to Ask for Help


By Nikki Viljoen – Viljoen Consulting CC September 2010

Many of the people who I encounter on a daily basis, look at me as if I have lost the plot, when I suggest that they should blog.

I am not sure if it is because they feel insecure about themselves and what they do or indeed if it is merely because the very thought of “I have to write something” scares the crap out of them.  The look of absolute terror on their faces pretty much resembles those of a buck that has been caught unawares in the headlights of an oncoming car – pretty much ‘frozen’ in terror they are!

Yet it is these self same individuals, whose faces light up in animation and with intense passion as they verbally describe who they are and what it is that they do and why you should purchase their product or engage their services.  Why is that do you think?

What is it about the written word that sends people into an absolute tizz?  I mean, at some point we all have to document things, proposals or Business Plans and what have you – why is it so difficult to document something that we are really passionate about?

I actually have several clients and colleagues who have grasped the ‘idea’ of writing blogs, but who are doubtful of their ability to communicate in the written word.

We sat down together and I ‘talked’ them through it.  They made lists of all the topics that they wanted to write about and then we broke them down into sub topics and  then further into bite sized chunks that would easily fit into articles of around 300 words or so.

Ideas of what they actually wanted to share, were jotted down and then the whole exercise of writing could begin.  Once the article was written, they sent it to me to read and critique.

For most, what started out as a monthly blog has now become a weekly blog and I suspect, it won’t stay as just a weekly blog for much longer and some have even added a monthly newsletter to the mix.

To be quite honest, in many ways I feel like a ‘proud’ parent as I watch their writing grow from strength to strength and as I watch their style of writing morph and flourish and become more about ‘who’ they are.

Well done to them I say – for taking that first step into a whole new, exciting and magical world of the written word.

Well done!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Networking 101 - Listen More Than You Speak

THE POWER OF NETWORKING

PART 118

Listen More Than You Speak

By Nikki Viljoen of N Viljoen Consulting CC – June 2009

Dr. Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Become an astute listener.  Listen more than you speak.”

From Renate’s pen to God’s ears!  Honestly folks, this doesn’t only pertain to Networking, but to just about any avenue in business, especially customer service.

Seriously though, one of the biggest reasons that Networking ‘fails’ for a lot of people is because they don’t listen!

Yes, I understand that you want to sell yourself, your product or your service.  Yes, I understand that you are in a difficult situation, where you have become quite desperate for sales or a deal.  That said, if you just talk all the time and don’t give the other person a chance to tell you what they need, or are looking for and are only concerned about what you can give them (irrespective of whether they need it or not), they will walk away and you will have lost the opportunity.

When you ask someone “how can I help you?” you open up the door to a whole host of possibilities.  Not only possibilities for yourself, but also for people in your database or your circle of influence.  You tell people that their needs are important to you and that you care about what it is that they need or want and not just about what you want to give them.  You tell them that you care enough to listen to them instead of talking ‘at’ them and that my friend is extremely important.

So ‘shut up’ for a few minutes.  Calm yourself so that you are not formulating anything in your head until such time as they have finished telling you what they need for you to hear – take down some notes, so that you can look back and understand what their needs are – chances are that even if you cannot help them yourself, you can refer them to someone who can.  At some point, you too will be referred.

Remember, Networking is about building relationships and relationships can only be built if there is a ‘give and take’ between two people.

For more information on Renate, please visit her website at http://www.drrentevolpe.co.za

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za

BUSINESS TIPS – Common Mistakes Start-up Businesses Make – Part 1

BUSINESS TIPS – Common Mistakes Start-up Businesses Make – Part 1


By Nikki Viljoen – Viljoen Consulting CC – June 2011

More and more I am coming across individuals, who want to start up a business, but who have no clue about what they are doing and who don’t have any kind of plan in place.  Now having an idea is great, that is what starts the dream but quite honestly, not having any kind of plan in place is the same as committing suicide – business suicide!

A business that does not have any kind of plan in place will often have neither direction nor focus and if that is the way that you are starting up, quite honestly, that is the quickest way to just close the doors.  Many start-ups feel that the only reason to have a business plan in place is if they need to raise capital and they couldn’t be further from the truth.  Having a documented business plan in place will help to direct the process of starting a new business and for those businesses that are already established, it will help them keep focused on what they want to achieve and by when they want it achieved.

Your business plan however, is not a ‘once off’ kind of document.  It needs to be updated and changed as the business grows and as your requirements and needs change too.

Being cocky and full of nonsense, is definitely not going to endear you to anyone.  So many newly started business owners, who are in the first flush of success (read: they are in their 2nd month of trading and the glow hasn’t worn off yet) think they are invincible. My advice to them is “Get a grip!”  They often compare themselves to the greats out there and strut their stuff, but as tempting as it is, they need to remember that they are still taking the first steps and adjust themselves to that. 

Don’t get me wrong, there is nothing wrong with dreaming that you will get there . . . one day, but you need to remain grounded, focused and with your feet firmly planted on the ground.  Remember all big businesses started out as little businesses and although every journey starts with a single step – you have taken that first step and now you need to take the next, and then the next and then . . .  you get my drift I am sure.

Trying to sell yourself to your clients and suppliers as ‘established’, when you’re not will only make them see you as dishonest and it will not work in your favour in the long run – so just don’t do it!

Don’t try and be clever by extending credit to your clients when you have just started out – the reality is that you will end up with a lot of bad debt and clearly this will affect your cash flow in a negative way.  Getting money in quickly and efficiently will allow you to go to the next step of your plan a lot quicker and without as much risk.  Having to continuously wait for your money puts your business at risk and will cause you untold unnecessary stress.

Next time we will have a look at some of the other common mistakes.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

MOTIVATION – A Life Worth Remembering

MOTIVATION –  A Life Worth Remembering


By Nikki Viljoen of N Viljoen Consulting CC – January 2011

I’m an avid 94.7 Highveld radio listener and even (and perhaps more so at this time of the year) as the question is asked by the DJ’s, I am conscious of my own decision to ‘make a difference’.  Before I go any further, let me tell you the question that all of the DJ’s are asking – it is “Are you making a difference?”

Augustine of Hippo said “The key to immortality is first living a life worth remembering”.

Think about it for a moment – why are we actually on this planet?  The truth of the matter is that we are born, we pay taxes (well some of us do) and then we die and there is nothing that we can take out of this world except for the name that we have made for ourselves.  The name that we take out of this world is determined by the manner in which we have lived our lives, what we have achieved and the difference we have made (good or bad).

Sadly millions of people have passed into obscurity, never to be remembered or even thought of.  People who lived mundane lives, never adding anything of value to the world that they came into.

For me, I guess, it is about striving to leave my little corner of the world a little bit better than it was when I arrived in it.

Have I achieved this – I suppose I have to a certain extent.  Will I ever achieve it to the extent of my potential?  Who knows – I certainly will give it my best shot though!

What I do know for sure though, is that life would be pretty meaningless for me, if I did not continue to try.  If I just stopped giving back and just took what I could get.  Just the thought of a life like that makes me realize that I would have lost my purpose and that for me, a life without purpose would be a life without meaning.

So I try and live each day to the full.  I try and make a difference to ensure that my world, such as it is, is a little better or even just a little different to the day before.  As I look around me in wonder at all the beauty that still does exist in the world today, I know that I am not alone in my quest.

I know that I will be remembered – the question of course now, is will you?

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

HR 101 - What to do when . . . You Have Contractors Working on your Premises - Part 1

ARTICLE 42

WHAT TO DO WHEN . . . . You Have Contractors Working on your Premises – Part 1

By Nikki Viljoen of Viljoen Consulting CC September 2009

According to the law, if you have contractors working on your premises you are liable for their health and safety.

Here’s the story

Mike owns a retail store in a busy mall.  Mike’s business is doing really well and the store next to his has become available and Mike decides that he needs to expand his operation into that space.

So Mike hires George, the contractor and soon work begins.  Mike is really impressed at the way George and his team go about getting the work done.

Within hours there are ladders all over the place and workers are going about their specific tasks.  All of a sudden, there is a loud CRACK/SNAP and a ladder collapses as one of its legs shatters.  Phillip, who is on the top of the ladder, doing something in the ceiling, falls some three meters and lands on the concrete floor with a loud THUD.  Phillip’s one leg is lying at a very odd angle beneath the rest of his body and it is clearly broken and it is also clear that he is hurt badly.  The ambulance is summoned and Phillip is rushed off to hospital.

Now we get to the serious bit – the money.  Who is responsible for what?  Here’s the thing, if George, the contractor is not compliant in terms of the Health and Safety Act, then Mike is liable and responsible for all the costs including but not limited to, the cost of the accident, medical costs, rehabilitation costs and even 75% of employees wages.

Let’s see what Mike has to do in order to ensure that he will not be held financially accountable and/or liable for the safety and health of the contractors working in his store.

One of the things that Mike should have included in his procurement policy is that the contractor (in this case George), would need to sign a Section 37(2) agreement.  The agreement would need to state (but not be limited to) that the contractor will comply with all health and safety laws and company rules (in this case Mike’s Company).  Mike should also insist in obtaining a certified copy of George’s “Certificate of Good Standing” from the Compensation Commissioner, which will evidence that the contractor (in this case George) is in fact registered and compliant with the Workmen’s Compensation fund Act.

Next week we will have a look at some of the other issues that Mike should include in his Contractor Procurement Policy to ensure that everything is managed correctly and that Mike is in no way liable for anything other than the Contractors invoice.

 Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Blogging 101 - Growing your Visitor List

Article 2 - BLOGGING TIPS – Growing Your Visitor List


By Nikki Viljoen – Viljoen Consulting CC May 2011

I started writing blogs purely for my own enjoyment.  It was a way for me to engage with the creative part of who I am.

As I became more confident though, and as more and more people joined the list of people “following” me – I quickly realized how blogging could be turned, not only into a marketing exercise but also a source of revenue generation.

Clearly I needed and wanted to grow the list of people following me and in order to do this, logic tells me that I have to, not only entice new visitors, but also convert visitors into dedicated readers.

This is obviously a ‘two pronged approach’.  To entice ‘new’ visitors I would need to write about something that they were interested in and in order to do that, I expanded the topics that I write about.  I also started driving readers to my website by using facebook and twitter and it worked.  The number of visits to my website increased and the average amount of time spent on the website also increased.

Enticing visitors to become dedicated readers is also not that difficult.  If you are giving people ‘more’ of what they want, logic tells you that they will be back for more.  So giving people what they want rather than what I think they need is very important (incidentally this is how this particular series on blogging started, someone asked for it).

Tag onto the end of that - I asked people to let me know what topics they want information on or by using the day to day life experiences with problems and issues that I encounter, I research and write about these individual requirements and share what I have learned.  You would be surprised at the number of similar experiences people in the world of SME’s, startups and entrepreneurs, share and strangely enough we always tend to think that we are the only ones going through this.


The length of time that people spend on my website reading my blogs evidences that people are in fact reading what I write and it evidences that the visitors are becoming dedicated readers.

So my message today is this – find out what your readers would like to read about and do something completely different . . . .  give people exactly what they want!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Networking 101 - Be Prepared

THE POWER OF NETWORKING

PART 116

Be Prepared

By Nikki Viljoen of N Viljoen Consulting CC – June 2009

Dr. Renate Volpe, in her nugget cards entitled “Networking Tips” says:

“Be prepared, act confident and have your business cards at the ready.”

“Be Prepared” – not something that is hugely difficult, I am sure that you would agree, yet you cannot begin to believe the number of times that I go to a Networking event (not to even mention any other kind of event), where the whole idea of the event is to actually Network and people don’t have their cards with them.  I was at a ‘Networking’ breakfast the other morning and sat at a table with nine other people – only one had a business card on her.  I shook my head in absolute wonderment – there I was, dolling out bits of paper for people to write their contact details down on.

Ladies, I am sure that you wouldn’t leave home to go to any kind of event without ensuring that you have make up on, at the very least, and gents – I am sure that you wouldn’t leave home without your wallet – yet people to go Networking events, specifically put together, often at great expense for you to Network and build relationships and not a card in sight!  What a waste of a perfectly great opportunity!

Really, think about it – carefully.  If you want to make the most of every opportunity that could present itself to you and I am sure you would agree that you cannot presume where that may be, then you really do need to be prepared.  Being prepared doesn’t mean like being prepared for a boardroom presentation, it quite simply means always having a business card or two on you. Always, always, always – have your business cards on hand.  Keep a supply in your car, so that if you don’t perhaps have one in your handbag or wallet that you can, if necessary run out to the car and get one.

So ‘be prepared’ and by being prepared you can be confident and look around you – can you see that opportunity?  I can!

For more information on Renate, please visit her website at http://www.drrenatevolpe.co.za

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za

Motivation - Procrastination

MOTIVATION –  Procrastination


By Nikki Viljoen of N Viljoen Consulting CC – June 2011

The quote today is by an anonymous person who once said “Procrastination is the natural assassin of opportunity.”

Oh boy, oh boy, oh boy – the universe certainly delivered a swift sharp well aimed boot to my rear end when it gave me this particular quote.

Make no mistake – I am the master of procrastination – except in my world it is called anything but – Procrastination.

Much like I never, never, ever exaggerate, I don’t procrastinate either!  Oh don’t get me wrong – I dream, I plan, I just have to do this or that, it’s too late in the day or it’s too early or I need a cup of tea, or a quick trip to the bathroom.  I’m really tired and I can’t concentrate or need some ‘down’ time – anything to distract myself from what I know I have to do – all justified, all legitimate and all very true!

Here’s the thing though, when I do get my head together and I actually sit down and in the words of Jacob Zuma “apply my mind”, the actual task itself usually doesn’t take long and it’s usually quite painless, completely contrary to my initial perception.  Then of course I end up kicking my own rear end because I have procrastinated to such an extent that I have left everything to the last minute and put myself under pressure.  How ridiculous is that!

Have I learnt the lesson – sometimes I think I have, but the reality is, if I am completely honest, that I still procrastinate.

Thankfully though, I have been made aware of my negative ways and nowadays when I find or realize that I am procrastinating, I stop and make a list of the reasons as to why I am avoiding the task in question.  Once I have the understanding of what the problem is, then I can solve it and get to the task a lot quicker.  The challenge of course, is to actually admit that I am ‘procrastinating’.

Will I continue to procrastinate in the future – of course I will, its human nature, but I will also be far more aware of what I am doing and hopefully that means I will continually check to see that I am managing my time in the most efficient way.

So how about you – how do you manage your procrastination?

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

BUSINESS TIPS – Customers, Our Invited Guests

BUSINESS TIPS – Customers, Our Invited Guests


By Nikki Viljoen – Viljoen Consulting CC September 2009

Jeff Bezos says “We see our customers as invited guests to a party, and we are the hosts.  It’s our job every day to make every important aspect of the customer experience a little bit better.”

Actually, if the truth be told, I really don’t think that we see our customers as anything like invited guests.  Certainly not the way that I have been treated lately (although in all fairness I have to be the world’s worst customer).

I think we have panic attacks when we perceive that there is a lack of clients, but the minute we have them they become an irritation and I know I feel that some of my services providers feel that they are doing me a favour just to give me any type of service.  In fact in the last couple of days, I have stated on several occasions that if I were to treat my clients the way that I was being treated there would be no clients!

Think about it for a moment – when you invite guests into your home, there are those that you feel comfortable around, that you have perhaps had as friends for many years.  These guests have a great deal more freedom than say new guests.  They are encouraged to make themselves at home, they potter around your home, perhaps follow you into the kitchen and help with the cooking or keep you company whilst you cook.  The conversation may become playful and the feeling is one of easy wellbeing.  So too should it be with your customers that have been with you for some time.  Relationships have been built and the feeling is one of mutual respect and well being.  Still, even these guests you would not expect to wash the dishes (even if they offered – they are guests after all, not family or extended family or even good friends).  You would not go to bed and leave them wandering around your home unattended.

What about your new clients or guests that you have only just met?  Whilst you are not strictly formal with them, the atmosphere is still a lot more formal than with your guests that you have known for some time. I mean, I am sure that you would not let them get their own drinks, you would serve them.  They would not be in the kitchen with you as you cooked or prepared the meal and they certainly would not be encouraged to wonder around your home on their own.  Yes you would try and make them feel comfortable but there would be limits.  Isn’t that exactly the way that it is with your new clients – are you not a whole lot more wary around them, trying to put your best foot forward, trying to give them exactly what it is that they ask for?

Actually, perhaps the question should be, isn’t that the way that it is supposed to be happening, rather than the constant irritation that I have been experiencing of late.  The sullen faces, the less than interested attitude and the glances and sighs that make me feel that they are actually doing me a huge big favour and I had better just accept what it is that they give me and I had better not say anything about the manner in which I have been treated or that they have given me inferior service and useless product.

Perhaps it is time that we have another look at who and what our customers are and why they are in our lives.  Perhaps if we treat them a little better, they will stick around a little longer and buy some more product or give us some more work.

Perhaps . . . .

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

HR 101 - It's how you play the game - Part 1

ARTICLE 41

WHAT TO DO WHEN . . . . It’s How You Play The Game – Part 1

By Nikki Viljoen of Viljoen Consulting CC September 2009

There are often times that you will end up at the CCMA no matter how closely you follow the rules. Now I know that that sounds a bit harsh, but following the rules doesn’t mean that you will not end up at the CCMA, but what it does mean is that if you do end up at the CCMA, there is less chance of you losing your case.

Sadly there are also many cases where the ‘loser’ at the CCMA is not only disappointed at the verdict but that they also appear to be quite shell shocked!  Most of the time these individuals were extremely confident of success only to have that confidence lying shattered at their feet.

The reality is that often it is not about right and wrong – it’s about how you play the game.  I just heard all the pins drop, the chins drop and the sharp intake of breath being rapidly inhaled and resulting in a shocked gasp!

You see in the majority of cases are lost as a direct result of procedures not being followed, so you lose the case on those grounds.

But what about where you have followed every single rule, I hear you say?  Well here are some of (but not limited to) the main reasons people (both employers and employees) lose their cases.

•    The case was weak without you realizing it or despite the fact that you thought it was a strong case.  Often this is because you did not have your case properly prepared, no documents and/or witnesses to give or confirm your evidence.  Your sense of outrage and your emotion here was actually stronger than the facts in the case.

•    Then of course you have the situation where you actually do have an extremely strong case, the problem is that again you are inadequately prepared.  You don’t have the correct documentation or you failed to present your case in an understandable and/or convincing manner.  Pretty much like representing yourself in a murder case in court.  If you don’t know what you are doing, chances are you will make a mess – so get some help!

•    The worst of the lot is when it is genuinely unfair to the loser.  This is when you have a strong case, you have followed all of the procedures correctly, you have presented it in the proper manner, you are properly prepared with all of the correct documents, you have witnesses who have corroborated your evidence, in fact you have done everything correctly, but the arbitrator has failed to appreciate your case and you lose.

This is the one that you really want to challenge and this is the one that you absolutely have the right to challenge via review at the Labour court.

Next week we will have a look at how to do this.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

BLOGGING TIPS – Always Proof Read

BLOGGING TIPS – Always Proof Read


By Nikki Viljoen – Viljoen Consulting CC July 2010

Just because you are writing on a blog, or posting on twitter, or even on some of the social sites such as FaceBook, doesn’t mean you shouldn’t view or treat your writing with any less respect than if you were say, writing an article for a newspaper column or for a magazine.

I am sure that I would be absolutely on the money if I were to assume that articles of this nature would be checked, several times to ensure that the spelling was correct or, that the links actually worked, or that the language that you used was grammatically correct.

I know and understand that common sense is in really short supply these days (if not altogether a rare commodity) but logic should tell you that, at the very least, the article/post should be read over again, at least once.

For me, often the thoughts and ideas come at me in bits and pieces and usually over a period of time.  Additionally ideas ‘pop-up’ while I am busy writing and rather than lose the momentum, I jot them down either on the page (if I am writing by hand) or on the screen page (if I am writing directly onto the computer).  This, of course means that the piece will not flow. The sentences will not be in the right order and arguments, discussions or even points to ponder, will seem stilted, all over the place and not always make any kind of sense (except to me of course).

Obviously, I have to go back and put everything where it should be or change things around so that the story unfolds correctly.

There are times too, when perhaps an explanation needs to be expanded to make the point clearer or additional material needs to be added to make the piece complete.

Often it is only by the fourth or fifth reading that I am satisfied with the ‘unfolding’ of the story and then, although I usually correct spelling mistakes as I go along, I read it again to check for any more spelling mistakes or grammatical errors.

After this comes what I call the ‘audience test’.  Here’s the thing – reading something quietly in your mind is not the same as reading it out loud, to a captive audience, where you pause at the required moment to add emphasis to what you are saying and put all the correct inflections on the words as you say them.

Forget for a moment  that my ‘captive audience’ is usually my cat, who may or may not be fast asleep on the couch in my office – there are usually a few more changes to be make at this point.  Changes made, the cat gets to hear it all over again and once the words roll off my tongue, without pause to correct or add something else, and the meaning is clear, then and only then, is the piece complete and ready for posting.

Think about it for a moment – you want people to take the time to read and understand what it is that you have written – not so?  Then it stands to reason that you should take the time and trouble to make that reading experience an enjoyable one.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

Networking 101 - Maintenance Tips

THE POWER OF NETWORKING
PART 115

Maintenance Tips

By Nikki Viljoen of N Viljoen Consulting CC. June  2009

All of my business comes through networking, which means of course that most of my business comes through referrals.

How do I do this?  Well for me this is very simple.  Here are some of the steps that I take:

1. It doesn’t matter how busy I get, I still try to go to at least 2 networking meetings a month.  You see – networking is about  building relationships and building relationships takes time.  When I am busy, going to meetings often puts me under real pressure, but if I didn’t I would have many periods where there would be no work and I would have to start networking and building relationships from the beginning again. This does not happen to me though as I am constantly networking.

2. Using my own database – I try, at least once a quarter, to go through my database and contact people who I have not ‘touched base’ with for a while.  This keeps the ‘visual’ me in the forefront of their minds.

3. Business cards, for me are an opportunity, so as soon as I get a business card I do something with it.  Usually this means that I send the card owner my business and personal profile.  This is then followed up by a call to set up a ‘one on appointment’ to discuss possible synergies and to explore mutually beneficial business opportunities.

4. Going through my database on a regular basis also means that I am able to contact ‘dormant’ clients.  You have no idea how this brings in more and more work, every time I do it.

5. Don’t forget your cell phone – now I have my entire database on my cell-phone, but that situation is the exception rather than the rule.  So most of you folk will have telephone numbers on your cell phones that do not appear in your data base.  Use them, do something with them.  Make a call and set up a meeting.

Do some great business!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za  or http://www.viljoenconsulting.co.za

Business Tips - A Startup Never Closes

BUSINESS TIPS – A Startup Never Closes

By Nikki Viljoen – Viljoen Consulting CC – June 2011

Judging from some of the queries and e-mails that I have been getting over the last couple of months, it is abundantly clear that the perception around business startups is really, really, really skewered.

I know that at the moment, everyone wants to be a “CEO” or a “Director” and that on the face of things it is not a bad thing – it’s good to dream.  The reality though is that having a title won’t make your business a success and having a title doesn’t mean that you can sit back and delegate all the tasks and that’s the extent of your involvement in the business.

The reality is that as a startup – more often than not, you are not only the “CEO”, but also the PA, the marketing department, the admin department, the tea lady (whether you are male or female) and the delivery driver.  The reality is that although your ‘doors’ may close to customers at the end of the day, it is highly unlikely that your business duties will allow you to pack up and have the luxury of putting your tools down for the day.

Sadly many corporate employees look at their bosses and/or directors and see only what they want to see – the afternoons playing golf or the expensive cars or expensive clothes. What they don’t see is all the hard work, the 18 hour days and no week-ends to public holidays, the loss of family life.  They don’t see the working while you are under the weather and sick, and oh . .  don’t forget the trying to convince yourself that you were in bed for two days recuperating from a surgical procedure and those days amount to your time off for the next 6 months.

When you work from home, unless you control it, it actually becomes worse.  Going upstairs to bed at night, I more often than not turn right at the top of the stairs – into the office, instead of left into the bedroom.

I soon realized that no matter how ‘smart’ I worked, I needed to put in the long hours in order to set things up and get ahead of the competition.  I knew that I had to make the sacrifices then, in order for me to reap the rewards further on down the line.

Needless to say, many would be Entrepreneurs give up and fall by the wayside, disillusioned by the world of business – the reality of what it takes to grow and run  a sustainable business, victims of their own shortsighted, un-researched, rose-tinted expectations.

Most return to the types of bosses from whence they came, blaming the government, the red tape, the economy and in fact everyone other than themselves, unwilling to take the responsibility for their own lack of judgment.  Some forage forward to the next pipe dream or hare brained scheme of ‘instant riches’ that can be amassed, again without any idea of ‘what it takes’ to achieve the type of success that only successful people can make look so easy.

Understand though – in order for them to have achieved that level of success in their businesses, they have had to put in the time – they have had to make the sacrifices, often at the cost of their marriages, their families and their loved ones and they have had to remain focused on their goals. Ultimately they have had to believe in themselves.

Question is – do you believe enough in yourself and are you willing to make this kind of sacrifice?

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za