HR 101 - Maintain Control of your Staff – Part 5
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd -
Please note that this pertains to South African Labour Law and Best Practice requirements.
So here we are, Friday again and as SMME’s you are battling to keep your heads above water, you are battling to close the deals in order to bring in the funds to pay, not only yourselves and your suppliers, but also your staff.
Yet your staff are more often than not, your biggest adversaries. They steal your time, they steal your infrastructure, and in many instances, here in South Africa, they also steal your stock and even your assets and if that is not enough they will throw the legal book (being the Basic Conditions of Employment Act) at you if you don’t follow the correct procedures when you discipline them.
It is imperative that you have a proper ‘Code of Conduct’ and a comprehensive Disciplinary Policy in place to set the boundaries. As usual though, even if you do the boundaries in place, if they are not enforced or only enforced with some, they are not worth the paper that they are written on.
One of the strangest things that I have seen in the workforce though was a fight between two male employees who were after the same female employee, who ironically was happily married and actually wasn’t even aware of the tension that she had caused. It was like watching a movie as she went about her business totally clueless about the chaos that was going on in her wake. Sadly, both of the guys were badly hurt and even when their physical wounds had healed the friction and tension that the whole fight had caused had quite a ripple effect through the entire company. People were taking sides and giving advice and some enterprising youngsters had even started a betting pool going. The effect though of course was that the whole thing had a huge negative effect on productivity and of course the quality of the work was also affected.
The bottom line of course is that it is not okay for the staff to fight or get into fist fights. It’s not okay and it shouldn’t be allowed. In the above instance, both guys had to attend a disciplinary and because their behaviour was not properly monitored and because the friction carried on (if not escalated), things got out of hand and they were both eventually dismissed. This type of behaviour should never be allowed and again in order to ensure that it doesn’t happen in the first place, strict ground rules should be enforced.
This should be documented in the Code of Conduct as well as the Disciplinary Policy.
Next time we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
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Friday, June 28, 2019
Thursday, June 27, 2019
Early Warning - All About Procurement Fraud – Part 2
Early Warning - All About Procurement Fraud – Part 2
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd - January 2013.
Last time we looked at exactly what Procurement is and also briefly, what Procurement Fraud is.
Today we will dig a little deeper and start looking at the different types of procurement.
All decisions to purchase, whether that purchase is in goods or services open you, the business owner up to fraud of one sort or another. This is because all purchasing decisions involve issues around delivery and handling marginal benefit and price fluctuations. One of the most important distinctions to make is the distinction between purchases with a ‘high’ risk fraud and those with a ‘low’ risk.
Larger manufacturing companies often use tools to analyze the economic and financial factors and implications that this produces as there are also two very different types of acquired goods and services and more often than not, procurement activities are split between these two depending of course, on the type of business that you are in. The first type is ‘direct production related procurement’ and the second one is therefore ‘non-production related procurement’. So now let’s have a look at what the main difference is between these two.
Direct procurement usually only happens in a manufacturing type of environment. It includes all the different parts or components of the finished product. This would be raw materials and components and parts. Direct procurement therefore affects the whole production process within the manufacturing arena.
Indirect procurement on the other hand, pertains to the operating expenses and operating resources. It’s the purchases that relate to the operational requirements of the company. Clearly this has a very wide and far reach, as this applies to all the goods and services. It is reflected in the standard office type supplies such as (but not limited to) stationery or regular office supplies to machines of a different caliber such as heavy equipment. It also applies to consulting type services such as legal or accounting services.
In both direct and indirect procurement, systems need to be implemented to ensure that purchases are made at the correct time, from the correct supplies and at the correct price.
Next time we will have a look at these processes in a little more depth.
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
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd - January 2013.
Last time we looked at exactly what Procurement is and also briefly, what Procurement Fraud is.
Today we will dig a little deeper and start looking at the different types of procurement.
All decisions to purchase, whether that purchase is in goods or services open you, the business owner up to fraud of one sort or another. This is because all purchasing decisions involve issues around delivery and handling marginal benefit and price fluctuations. One of the most important distinctions to make is the distinction between purchases with a ‘high’ risk fraud and those with a ‘low’ risk.
Larger manufacturing companies often use tools to analyze the economic and financial factors and implications that this produces as there are also two very different types of acquired goods and services and more often than not, procurement activities are split between these two depending of course, on the type of business that you are in. The first type is ‘direct production related procurement’ and the second one is therefore ‘non-production related procurement’. So now let’s have a look at what the main difference is between these two.
Direct procurement usually only happens in a manufacturing type of environment. It includes all the different parts or components of the finished product. This would be raw materials and components and parts. Direct procurement therefore affects the whole production process within the manufacturing arena.
Indirect procurement on the other hand, pertains to the operating expenses and operating resources. It’s the purchases that relate to the operational requirements of the company. Clearly this has a very wide and far reach, as this applies to all the goods and services. It is reflected in the standard office type supplies such as (but not limited to) stationery or regular office supplies to machines of a different caliber such as heavy equipment. It also applies to consulting type services such as legal or accounting services.
In both direct and indirect procurement, systems need to be implemented to ensure that purchases are made at the correct time, from the correct supplies and at the correct price.
Next time we will have a look at these processes in a little more depth.
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
Wednesday, June 26, 2019
Networking 101 - Have a Database of Resources
Networking 101 - Have a Database of Resources
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Dr. Renate Volpe, in her nugget cards entitled “Networking Tips” says:
“Have a database of resources to help other people.”
What does this mean? Does it mean that you have to work your butt off to add people to your data base and then give your entire data base to anyone who’s looking for one? Of course not!
That said, the more different types of people and the different types of resources that they bring to your data base, means more people that you can refer and add value to.
I have a neuro-surgeon in my data base – forget for a minute how I happen to have this man’s contact details in my data base. I have often stood up at networking meetings and stated that if anyone needs anyone, chances are that I have one of whatever that they need in my database. At this point I usually tell them that I even have a brain surgeon and that usually brings about fits of nervous laughter.
Here’s the thing though – some time last year, a good friend of mine was diagnosed with a debilitating disease and what her doctor told her and the information that she got off the internet just didn’t always make any sense – she was, as I am sure you can imagine, in a highly emotional state. I was not only able to refer her to my brain surgeon, but because he (and his staff know me) I was able to get her an appointment within two weeks instead of the usual 2 months that everyone else had to wait.
Was he able to ‘makes things better’ – actually not, but what he was able to do was answer all of her questions, and put her at ease in terms of what she could do, versus what she should do and then of course what she shouldn’t do at all, and he was able to do this in a relatively short space of time.
I know that this is a case in the extreme, but think about it for a moment – if you need some sort of product or service or you are not even really sure about what it is that you need and I can be of assistance, it means that I add value to you as an individual and to the person that I am referring as well. Chances are, going forward, that if you hear of anyone who is requiring my services that you will pass them along to me.
It’s all about ‘giving’ in order to get and believe me it works very well.
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
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Dr. Renate Volpe, in her nugget cards entitled “Networking Tips” says:
“Have a database of resources to help other people.”
What does this mean? Does it mean that you have to work your butt off to add people to your data base and then give your entire data base to anyone who’s looking for one? Of course not!
That said, the more different types of people and the different types of resources that they bring to your data base, means more people that you can refer and add value to.
I have a neuro-surgeon in my data base – forget for a minute how I happen to have this man’s contact details in my data base. I have often stood up at networking meetings and stated that if anyone needs anyone, chances are that I have one of whatever that they need in my database. At this point I usually tell them that I even have a brain surgeon and that usually brings about fits of nervous laughter.
Here’s the thing though – some time last year, a good friend of mine was diagnosed with a debilitating disease and what her doctor told her and the information that she got off the internet just didn’t always make any sense – she was, as I am sure you can imagine, in a highly emotional state. I was not only able to refer her to my brain surgeon, but because he (and his staff know me) I was able to get her an appointment within two weeks instead of the usual 2 months that everyone else had to wait.
Was he able to ‘makes things better’ – actually not, but what he was able to do was answer all of her questions, and put her at ease in terms of what she could do, versus what she should do and then of course what she shouldn’t do at all, and he was able to do this in a relatively short space of time.
I know that this is a case in the extreme, but think about it for a moment – if you need some sort of product or service or you are not even really sure about what it is that you need and I can be of assistance, it means that I add value to you as an individual and to the person that I am referring as well. Chances are, going forward, that if you hear of anyone who is requiring my services that you will pass them along to me.
It’s all about ‘giving’ in order to get and believe me it works very well.
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
Tuesday, June 25, 2019
Business Tips – Managing Your Business – Part 4
Business Tips – Managing Your Business – Part 4
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd
We’ve looked at Managing your cash flow and making sure that your margins are where they should be, as well as ensuring that you are meeting your client’s needs. Today we will have a look at ‘managing your working capital’ and your advertising.
First off, let’s have a look at your ‘Working Capital Management’. Ensuring that you manage your working capital correctly, will have quite an effect on your cash flow as it ‘releases’ monies that would normally go towards expenses. Let me explain – your clients pay you 30 days, but your suppliers want payment up front. This means that you are carrying the whole thing financially on your own (it will also have an impact on your risk management too). By negotiating better payment terms with your suppliers and your clients, you will decrease your risk and have a better cash flow situation and a stronger working capital, which could go towards growth and expansion.
Other critical areas to look at are (but not limited to), your debtors list. Make sure that you follow up outstanding or overdue accounts on a regular basis and don’t be scared to put ‘errant’ clients on ‘hold’ or in extreme cases, even firing them. Remember this is your business and you make the rules.
Stock is also something that needs to be managed both effectively and efficiently as this is one of the first areas that you will experience losses when there is downturn in the economy (ok, if the truth be told this is all the time, not only when things become a bit rough). So stock needs to be properly controlled to ensure that the shrinkage is kept to a minimum and that stock levels are kept to acceptable levels. Too much or too little stock on hand also has its own consequences. Oh, and don’t forget to make sure that your stock is properly and adequately insured and that (particularly with perishables) that the FIFO (first in first out) method is used, that way you will not end up with stock that has expired.
One of the first things that seem to go for a ball of chalk when times are tough is your advertising. This is not good at all. Think about it logically and calmly for a moment. Taking your marketing out of the equation means that less and less customers are going to know about you and less and less customers are therefore going to buy from you! Crazy that - you are wanting to increase your sales, which means your marketing and advertising should increase.
By all means, modify the way that you market yourself. Cut down on say, using the big PR agencies (or any agency for that matter) and try and do things for yourself. Get an e-mail campaign going or use the social networking sites and twitter to drive people to your website. Start a newsletter and give ‘useful’ information to your clients. Make sure that you are still in the forefront of their minds and that they don’t forget you and go to your opposition or competitors as a result of this.
So change the way that your market yourself, if you must, but ensure that the amount of marketing increases rather than decreases.
Next time we will have a look at some of the other issues around what to do when your business is going through a tough time.
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
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd
We’ve looked at Managing your cash flow and making sure that your margins are where they should be, as well as ensuring that you are meeting your client’s needs. Today we will have a look at ‘managing your working capital’ and your advertising.
First off, let’s have a look at your ‘Working Capital Management’. Ensuring that you manage your working capital correctly, will have quite an effect on your cash flow as it ‘releases’ monies that would normally go towards expenses. Let me explain – your clients pay you 30 days, but your suppliers want payment up front. This means that you are carrying the whole thing financially on your own (it will also have an impact on your risk management too). By negotiating better payment terms with your suppliers and your clients, you will decrease your risk and have a better cash flow situation and a stronger working capital, which could go towards growth and expansion.
Other critical areas to look at are (but not limited to), your debtors list. Make sure that you follow up outstanding or overdue accounts on a regular basis and don’t be scared to put ‘errant’ clients on ‘hold’ or in extreme cases, even firing them. Remember this is your business and you make the rules.
Stock is also something that needs to be managed both effectively and efficiently as this is one of the first areas that you will experience losses when there is downturn in the economy (ok, if the truth be told this is all the time, not only when things become a bit rough). So stock needs to be properly controlled to ensure that the shrinkage is kept to a minimum and that stock levels are kept to acceptable levels. Too much or too little stock on hand also has its own consequences. Oh, and don’t forget to make sure that your stock is properly and adequately insured and that (particularly with perishables) that the FIFO (first in first out) method is used, that way you will not end up with stock that has expired.
One of the first things that seem to go for a ball of chalk when times are tough is your advertising. This is not good at all. Think about it logically and calmly for a moment. Taking your marketing out of the equation means that less and less customers are going to know about you and less and less customers are therefore going to buy from you! Crazy that - you are wanting to increase your sales, which means your marketing and advertising should increase.
By all means, modify the way that you market yourself. Cut down on say, using the big PR agencies (or any agency for that matter) and try and do things for yourself. Get an e-mail campaign going or use the social networking sites and twitter to drive people to your website. Start a newsletter and give ‘useful’ information to your clients. Make sure that you are still in the forefront of their minds and that they don’t forget you and go to your opposition or competitors as a result of this.
So change the way that your market yourself, if you must, but ensure that the amount of marketing increases rather than decreases.
Next time we will have a look at some of the other issues around what to do when your business is going through a tough time.
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
Monday, June 24, 2019
Inspiration – Accepting Responsibility
Inspiration – Accepting Responsibility
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Les Brown says “Accept responsibility for your life. Know that it is you who will get you where you want to go – no one else.”
Man, oh man – I love this. You can’t even begin to understand how I so relate to this?
I am so sick and tired of hearing stuff like “He made me do it” or “I didn’t have a choice” or even “It was the voices in my head – they made me do it.”
What a load of BS!
What is it about the world today that no-one wants to take responsibility for their own actions?
We have become a generation of individuals who hide our inadequacies behind the backs of any scapegoat that we find along the way.
I am often left completely speechless by the lengths that people go to in an attempt to escape their accountability.
Why is this? Is it because we are afraid of what the consequences are? Is it because we are afraid of what the consequences will do to our precious credibility or is it perhaps that we are cowards and that it is easier to follow the path of many of our leaders and politicians? It is easier to place all the blame on others or to make excuses than it is to stand up and admit our faults, like the person caught speeding who blames the traffic police for catching him, rather than himself for breaking the speed limit.
Perhaps it is really time to go back to the basics. Go back to the time that when a person gave their word, it was their bond, when deals were struck on the strength of a hand shake.
Perhaps it is really time to go back to when people had morals and values and when the “What’s in it for me” took into account everybody who had contributed.
Perhaps it is really time to go back to when people took responsibility for their actions and inactions and accepted the consequences by being accountable.
Perhaps . . . yes, 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
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Les Brown says “Accept responsibility for your life. Know that it is you who will get you where you want to go – no one else.”
Man, oh man – I love this. You can’t even begin to understand how I so relate to this?
I am so sick and tired of hearing stuff like “He made me do it” or “I didn’t have a choice” or even “It was the voices in my head – they made me do it.”
What a load of BS!
What is it about the world today that no-one wants to take responsibility for their own actions?
We have become a generation of individuals who hide our inadequacies behind the backs of any scapegoat that we find along the way.
I am often left completely speechless by the lengths that people go to in an attempt to escape their accountability.
Why is this? Is it because we are afraid of what the consequences are? Is it because we are afraid of what the consequences will do to our precious credibility or is it perhaps that we are cowards and that it is easier to follow the path of many of our leaders and politicians? It is easier to place all the blame on others or to make excuses than it is to stand up and admit our faults, like the person caught speeding who blames the traffic police for catching him, rather than himself for breaking the speed limit.
Perhaps it is really time to go back to the basics. Go back to the time that when a person gave their word, it was their bond, when deals were struck on the strength of a hand shake.
Perhaps it is really time to go back to when people had morals and values and when the “What’s in it for me” took into account everybody who had contributed.
Perhaps it is really time to go back to when people took responsibility for their actions and inactions and accepted the consequences by being accountable.
Perhaps . . . yes, 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
Friday, June 21, 2019
HR 101 - Maintain Control of your Staff – Part 4
HR 101 - Maintain Control of your Staff – Part 4
By Nikki Viljoen of Viljoen Consulting (Pty) Ltd
Please note that this pertains to South African Labour and Best Practice requirements.
Although we have walked through some pretty hair-raising examples around this issue, it’s time to bring you some more.
Here’s a nasty – in terms of the “Communications Act”, the employer is responsible for the content/pictures/jokes/articles etc. that the employee writes and sends out. So every time your wannabe office ‘Don Juan’ sends out leery suggestive e-mails to all the female staff in the office, the employer can be held responsible and accountable, should one of those female staff members file charges of ‘sexual harassment’. Yip – that is a fact! The fact of the matter is that it is the employees misuse of the internet and it can cost you, the employer – plenty. Not only in lawsuits but also in the time that they have stolen or the second rate work that they have produced whilst playing on the internet.
Talking about playing on the internet, I have recently discovered “Zoo World” on Facebook and along with my discovery of the game is my discovery that I have an addictive personality. This game has got me by the short and curlies and I find myself playing at every opportunity. Now I am relatively self disciplined and so I find myself getting up earlier or going to bed later, so that I can play – but what of the average employee?
Generally speaking, what employee, addicted to playing computer games, is going to give a damn about the fact that they are stealing time from their employers in order to meet their own needs?
Again proper policies and procedures should be implemented to prevent misuse of both the internet, the company telephones and personal cell phone abuse. Most medium and even some smaller companies now have an effective “Communications Policy” in place. Again there has to be a consequence and again it has to be monitored and managed.
Please remember that this policy should also apply to the number and content of private e-mails that are sent and received through business e-mail addresses, and just because an employee has a ‘yahoo’ or ‘hotmail’ or ‘gmail’ address, that doesn’t mean that is it personal – it just means that the employee is a bit more sneaky about how they use it with your infrastructure.
Next time we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
By Nikki Viljoen of Viljoen Consulting (Pty) Ltd
Please note that this pertains to South African Labour and Best Practice requirements.
Although we have walked through some pretty hair-raising examples around this issue, it’s time to bring you some more.
Here’s a nasty – in terms of the “Communications Act”, the employer is responsible for the content/pictures/jokes/articles etc. that the employee writes and sends out. So every time your wannabe office ‘Don Juan’ sends out leery suggestive e-mails to all the female staff in the office, the employer can be held responsible and accountable, should one of those female staff members file charges of ‘sexual harassment’. Yip – that is a fact! The fact of the matter is that it is the employees misuse of the internet and it can cost you, the employer – plenty. Not only in lawsuits but also in the time that they have stolen or the second rate work that they have produced whilst playing on the internet.
Talking about playing on the internet, I have recently discovered “Zoo World” on Facebook and along with my discovery of the game is my discovery that I have an addictive personality. This game has got me by the short and curlies and I find myself playing at every opportunity. Now I am relatively self disciplined and so I find myself getting up earlier or going to bed later, so that I can play – but what of the average employee?
Generally speaking, what employee, addicted to playing computer games, is going to give a damn about the fact that they are stealing time from their employers in order to meet their own needs?
Again proper policies and procedures should be implemented to prevent misuse of both the internet, the company telephones and personal cell phone abuse. Most medium and even some smaller companies now have an effective “Communications Policy” in place. Again there has to be a consequence and again it has to be monitored and managed.
Please remember that this policy should also apply to the number and content of private e-mails that are sent and received through business e-mail addresses, and just because an employee has a ‘yahoo’ or ‘hotmail’ or ‘gmail’ address, that doesn’t mean that is it personal – it just means that the employee is a bit more sneaky about how they use it with your infrastructure.
Next time we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
Thursday, June 20, 2019
Early Warning - All About Procurement Fraud – Part 1
Early Warning - All About Procurement Fraud – Part 1
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd
I have decided that going forward, not only will the “Early Warning” section be used to highlight some of the negative things that are currently happening, but it will also be used proactively to try and avoid the negative things from happening. In this particular case “Procurement Fraud”. It is quite a large topic so as usual when this happens, it will be segmented into smaller parts.
So . . . let’s start at the beginning – What is Procurement?
According to the Wiki “Procurement is the acquisition of goods or services”. The Wiki goes on to say (sic) “It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quantity and quality, time and locations (Weele 2010). Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion.”
So what then is “Procurement Fraud?”
Again, according to the Wiki (sic) “Procurement Fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to public property or various means during procurement process by public servants, contractors or any other person involved in the procurement process.”
In the Corporate world and certainly in the Government Departments and Parastatels, the whole procurement process is handled by specific “Procurement Departments” with often, hundreds of personnel and this usually is where all the mischief happens. Remember that in the larger companies (and obviously on a much smaller scale in the SMME playground), there are many different ‘types’ of procurement, depending on the sector – some of the more generic ones are (but not limited to):-
Staffing
Staff Training
Services
Stationery
Vehicles
Equipment (office and other)
IT (hardware and software) etc.
Keeping control of these purchases and these expenses has become a priority, as crime escalates and as always, as it affects the bottom line.
Sadly, more and more I am discovering that “Procurement Fraud” is not only taking place in the larger Corporates or Government or the Parastatels, but also in smaller companies, so going forward, in this series, we will together identify the ‘red flags’ and find practical solutions on how to avoid this particular scam.
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
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd
I have decided that going forward, not only will the “Early Warning” section be used to highlight some of the negative things that are currently happening, but it will also be used proactively to try and avoid the negative things from happening. In this particular case “Procurement Fraud”. It is quite a large topic so as usual when this happens, it will be segmented into smaller parts.
So . . . let’s start at the beginning – What is Procurement?
According to the Wiki “Procurement is the acquisition of goods or services”. The Wiki goes on to say (sic) “It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quantity and quality, time and locations (Weele 2010). Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion.”
So what then is “Procurement Fraud?”
Again, according to the Wiki (sic) “Procurement Fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to public property or various means during procurement process by public servants, contractors or any other person involved in the procurement process.”
In the Corporate world and certainly in the Government Departments and Parastatels, the whole procurement process is handled by specific “Procurement Departments” with often, hundreds of personnel and this usually is where all the mischief happens. Remember that in the larger companies (and obviously on a much smaller scale in the SMME playground), there are many different ‘types’ of procurement, depending on the sector – some of the more generic ones are (but not limited to):-
Staffing
Staff Training
Services
Stationery
Vehicles
Equipment (office and other)
IT (hardware and software) etc.
Keeping control of these purchases and these expenses has become a priority, as crime escalates and as always, as it affects the bottom line.
Sadly, more and more I am discovering that “Procurement Fraud” is not only taking place in the larger Corporates or Government or the Parastatels, but also in smaller companies, so going forward, in this series, we will together identify the ‘red flags’ and find practical solutions on how to avoid this particular scam.
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
Wednesday, June 19, 2019
Networking 101 - Freebies
Networking 101 - Freebies
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Most of us like to get stuff. “Freebies” are the order of the day and I doubt that there are many of us, who would actually turn a ‘freebie’ down.
But why do people hand out freebies? It’s certainly not because they have a great love for us – how many of us, as individuals, actually even know the person who funded or ‘foot the bill’ for the freebie that we so enthusiastically receive? Not many I suspect.
Actually they have an expectation – and that expectation is that they hope that we will enjoy the freebie and then because we have enjoyed it, we will begin to start purchasing it (as apposed to our usual brand).
Then of course there are the freebies that are used for advertising purposes. The reality of course is that they give you something for free and in using that item you are in reality advertising for them (think about every time you wear the t-shirt with the designer logo), and of course this means that you are endorsing them too.
So what makes you think that networking is any different? Actually it isn’t. As much as some people will send referrals your way, the expectation is that you will reciprocate and if you don’t, you need to understand that the referrals will just simply dry up altogether.
Successful Networkers usually believe in the ‘give to get’ type of philosophy.
On a personal level, I have found that the more I give, in terms of ideas and referrals, the more people give to me – not necessarily the people that I have given to, but the Universe always gives back and there are many ways in which to give back that won’t cost you an arm and a leg.
As you go about your business, listen to what people want. As you Network more and more, you will find that you will build up a data base, full of people who supply all sorts of products or services and when hearing what people need, you will be able to add value to yourself, the person who you are referring to and the person you have referred – that’s a serious win/win/win situation!
Pretty soon you will be forming strategic alliances and collaborations or joint ventures and partnerships and with each person that you form this kind of relationship with, you strengthen, not only your own business and their business, but you also strengthen the business of every person in your team or your database.
So go on – give a little – give a ‘freebie’, you will be on the road to getting a lot back in return.
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
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Most of us like to get stuff. “Freebies” are the order of the day and I doubt that there are many of us, who would actually turn a ‘freebie’ down.
But why do people hand out freebies? It’s certainly not because they have a great love for us – how many of us, as individuals, actually even know the person who funded or ‘foot the bill’ for the freebie that we so enthusiastically receive? Not many I suspect.
Actually they have an expectation – and that expectation is that they hope that we will enjoy the freebie and then because we have enjoyed it, we will begin to start purchasing it (as apposed to our usual brand).
Then of course there are the freebies that are used for advertising purposes. The reality of course is that they give you something for free and in using that item you are in reality advertising for them (think about every time you wear the t-shirt with the designer logo), and of course this means that you are endorsing them too.
So what makes you think that networking is any different? Actually it isn’t. As much as some people will send referrals your way, the expectation is that you will reciprocate and if you don’t, you need to understand that the referrals will just simply dry up altogether.
Successful Networkers usually believe in the ‘give to get’ type of philosophy.
On a personal level, I have found that the more I give, in terms of ideas and referrals, the more people give to me – not necessarily the people that I have given to, but the Universe always gives back and there are many ways in which to give back that won’t cost you an arm and a leg.
As you go about your business, listen to what people want. As you Network more and more, you will find that you will build up a data base, full of people who supply all sorts of products or services and when hearing what people need, you will be able to add value to yourself, the person who you are referring to and the person you have referred – that’s a serious win/win/win situation!
Pretty soon you will be forming strategic alliances and collaborations or joint ventures and partnerships and with each person that you form this kind of relationship with, you strengthen, not only your own business and their business, but you also strengthen the business of every person in your team or your database.
So go on – give a little – give a ‘freebie’, you will be on the road to getting a lot back in return.
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
Tuesday, June 18, 2019
Business Tips – Managing Your Business – Part 3
Business Tips – Managing Your Business – Part 3
By Nikki Viljoen – Viljoen Consulting (Pty) Ltd – January 2011
So far we have dealt with Finance and Margins. Today we have a look at your Customer’s requirements.
In my experience, one of the biggest challenges for SMME’s (Small, Medium, Micro Enterprises) is retaining clients. Now I am really not sure why this should be since the fact of the matter is that it is easier to sell to existing clients than it is to procure new ones. So what’s the deal? Perhaps it is because we don’t really know who and what a customer is!
The Wiki says that “A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services.”
So how do we retain our customers? How do we ensure that we not only find new customers, but that we continue to sell our services and our products to current customers or even customers who we have not sold anything to in years?
Well there seems to be a whole host of different options and tips – some of these are (but not limited to):
- The personal touch. Here’s an example of both good and bad. I have been a client of Nedbank in my personal capacity for in excess of 30 years now, and in my business capacity for almost 17 years – quite frankly I bank with them through absolute habit, it certainly is not because of the service that they have given me over the years, but rather the perceived hassle of changing banks, debit orders etc. that keeps me with them. I have no idea who my ‘personal banker’ is, or if indeed I have one. I have been dealing with the Cresta branch for the last 20 odd years and sadly the only person who knows my name, when I walk in, is the security guard. In my opinion, the security guard should be doing their PR, he greets most people by name, always with a smile and a sunny disposition and the good that that does is soon smashed to pieces by the ineffectual, anal retentive service received by the branch staff. So make sure that you give your clients your absolute attention and use your personal touch as part of your branding and marketing.
- Assumption – I always say that perception and assumption are the two most dangerous words on the planet – and certainly what I am going to say now will bear that out. Just because your customers are not complaining, don’t assume that everything is peachy! Your perception of ‘everyone is happy because no-one is complaining’ is probably so far off the mark that it is scary. Many people don’t complain, they just vote with their feet or their wallets. Ask them if they are happy and if they aren’t do something about it!
- Expectations – all customers expect to receive good service and that is a reasonable expectation. Not only meeting that expectation, but exceeding it will bring them great delight and will go a long way to ensure that they become loyal customers. Remember though, do it once and the customer will expect even more the next time around, so don’t stop trying to do better.
- Customization – “One man’s food is another man’s poison!” Just because one client is crazy about your product or your service, doesn’t mean that everyone will be. Be prepared to ‘customize’ your product or service to meet the requirement of the client. In fact, make sure that what you are selling (service or product) is what the client wants, rather than what you think that the client may need.
Next time we will have a look at managing your working capital.
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
By Nikki Viljoen – Viljoen Consulting (Pty) Ltd – January 2011
So far we have dealt with Finance and Margins. Today we have a look at your Customer’s requirements.
In my experience, one of the biggest challenges for SMME’s (Small, Medium, Micro Enterprises) is retaining clients. Now I am really not sure why this should be since the fact of the matter is that it is easier to sell to existing clients than it is to procure new ones. So what’s the deal? Perhaps it is because we don’t really know who and what a customer is!
The Wiki says that “A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services.”
So how do we retain our customers? How do we ensure that we not only find new customers, but that we continue to sell our services and our products to current customers or even customers who we have not sold anything to in years?
Well there seems to be a whole host of different options and tips – some of these are (but not limited to):
- The personal touch. Here’s an example of both good and bad. I have been a client of Nedbank in my personal capacity for in excess of 30 years now, and in my business capacity for almost 17 years – quite frankly I bank with them through absolute habit, it certainly is not because of the service that they have given me over the years, but rather the perceived hassle of changing banks, debit orders etc. that keeps me with them. I have no idea who my ‘personal banker’ is, or if indeed I have one. I have been dealing with the Cresta branch for the last 20 odd years and sadly the only person who knows my name, when I walk in, is the security guard. In my opinion, the security guard should be doing their PR, he greets most people by name, always with a smile and a sunny disposition and the good that that does is soon smashed to pieces by the ineffectual, anal retentive service received by the branch staff. So make sure that you give your clients your absolute attention and use your personal touch as part of your branding and marketing.
- Assumption – I always say that perception and assumption are the two most dangerous words on the planet – and certainly what I am going to say now will bear that out. Just because your customers are not complaining, don’t assume that everything is peachy! Your perception of ‘everyone is happy because no-one is complaining’ is probably so far off the mark that it is scary. Many people don’t complain, they just vote with their feet or their wallets. Ask them if they are happy and if they aren’t do something about it!
- Expectations – all customers expect to receive good service and that is a reasonable expectation. Not only meeting that expectation, but exceeding it will bring them great delight and will go a long way to ensure that they become loyal customers. Remember though, do it once and the customer will expect even more the next time around, so don’t stop trying to do better.
- Customization – “One man’s food is another man’s poison!” Just because one client is crazy about your product or your service, doesn’t mean that everyone will be. Be prepared to ‘customize’ your product or service to meet the requirement of the client. In fact, make sure that what you are selling (service or product) is what the client wants, rather than what you think that the client may need.
Next time we will have a look at managing your working capital.
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
Friday, June 14, 2019
HR 101 - Maintain Control of your Staff – Part 3
HR 101 - Maintain Control of your Staff – Part 3
By Nikki Viljoen of Viljoen Consulting (Pty) Ltd
Please note that this pertains to South African Labour and Best Practice requirements.
Continuing from last time here are some additional examples of what staff can get up to at their employers expense if they are not properly managed.
I’ve had two separate clients this year who have staff who abuse sick leave. The one client’s employee took a total of 65 days sick leave over a 12 month period – that is more than double her 3 year allocation – and when we put a stop to that and told her that any further sick leave would be taken as unpaid, she promptly asked for her 3 days family responsibility leave as her son was having a medical procedure done. Her son is 25 years old and the medical procedure turned out to be he had a tooth pulled. Needless to say that leave was also taken as unpaid!
Then there was another client who had a husband and wife team working for him (that is also never a good idea). Both went to the clinic once a month – on different days, but when the wife went the husband had to take her (so he couldn’t come to work) and when he went the wife couldn’t get to work (clearly the buses and taxis don’t work) and then they also expected to get their full quota of sick leave on top of that because ‘it wasn’t their fault that they had to go to the clinic every month’! I guess maybe that they thought it was their boss’s fault! Needless to say, they too have discovered the joys of unpaid leave!
Sick leave and especially excessive sick leave that is not monitored and controlled can cost the company hundreds and thousands and indeed can even cripple a company. Having a proper leave policy in place that clearly states and outlines the consequences of excessive sick leave and ensuring that those consequences are upheld, will go a long way to ensuring that this particular problem does not rear its ugly head. Having a disciplinary policy that also clearly outlines ‘incapacity’ and that consequences of that, also often ensures that staff get to work on a more regular basis.
My father always used to say that no-matter what your job is, you should always do it with pride and it should always be done to the best of your ability. Sadly this no longer seems to apply to people in general anymore. People no longer seem to feel the need to take any kind of pride in the work that they produce and sadder still is the fact that that not only do they not feel the need to take pride in their work but they also seem to feel that employers should be very happy to accept their second and third rate work, whilst paying wages and salaries for first rate expectations. Crazy idea that! Again checklists laying out exactly what must be done and then ensuring that they are correctly signed off will ensure accountability. Again though, it needs to be properly monitored and consequences must be metered out if the procedures are not complied with.
Next time we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
By Nikki Viljoen of Viljoen Consulting (Pty) Ltd
Please note that this pertains to South African Labour and Best Practice requirements.
Continuing from last time here are some additional examples of what staff can get up to at their employers expense if they are not properly managed.
I’ve had two separate clients this year who have staff who abuse sick leave. The one client’s employee took a total of 65 days sick leave over a 12 month period – that is more than double her 3 year allocation – and when we put a stop to that and told her that any further sick leave would be taken as unpaid, she promptly asked for her 3 days family responsibility leave as her son was having a medical procedure done. Her son is 25 years old and the medical procedure turned out to be he had a tooth pulled. Needless to say that leave was also taken as unpaid!
Then there was another client who had a husband and wife team working for him (that is also never a good idea). Both went to the clinic once a month – on different days, but when the wife went the husband had to take her (so he couldn’t come to work) and when he went the wife couldn’t get to work (clearly the buses and taxis don’t work) and then they also expected to get their full quota of sick leave on top of that because ‘it wasn’t their fault that they had to go to the clinic every month’! I guess maybe that they thought it was their boss’s fault! Needless to say, they too have discovered the joys of unpaid leave!
Sick leave and especially excessive sick leave that is not monitored and controlled can cost the company hundreds and thousands and indeed can even cripple a company. Having a proper leave policy in place that clearly states and outlines the consequences of excessive sick leave and ensuring that those consequences are upheld, will go a long way to ensuring that this particular problem does not rear its ugly head. Having a disciplinary policy that also clearly outlines ‘incapacity’ and that consequences of that, also often ensures that staff get to work on a more regular basis.
My father always used to say that no-matter what your job is, you should always do it with pride and it should always be done to the best of your ability. Sadly this no longer seems to apply to people in general anymore. People no longer seem to feel the need to take any kind of pride in the work that they produce and sadder still is the fact that that not only do they not feel the need to take pride in their work but they also seem to feel that employers should be very happy to accept their second and third rate work, whilst paying wages and salaries for first rate expectations. Crazy idea that! Again checklists laying out exactly what must be done and then ensuring that they are correctly signed off will ensure accountability. Again though, it needs to be properly monitored and consequences must be metered out if the procedures are not complied with.
Next time we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
Thursday, June 13, 2019
Early Warning - Is Your Identity Safe?
Early Warning - Is Your Identity Safe?
By Nikki Viljoen – N Viljoen Consulting(Pty) Ltd
Please note that this pertains to South African FICA, FAIS and Best Practice requirements.
I know that I have written about this before – but hell, it needs to be talked about again.
Just last week something was delivered by a bank to one of my clients, by means of a courier, the delivery guy demanded a copy of client’s ID document. I instructed my client not to hand over a copy of their ID! Whatever next? I was told by the bank official that the delivery guy had to make sure that he had delivered to the correct person. My response – well he can look at the person, then look at the ID as well as the ID number that you have given him and if the picture looks like the person he is handing the package to and if the ID # is the same – then guess what – it’s the right person. If he is not satisfied that it is the right person, then he doesn’t have to leave the package here. Quite simple really. The end solution – the courier company delivered to the bank guy (taking a copy of his ID I’m sure) and the bank guy delivered to my client, without getting another copy of the ID!
Here are some of the issues that have been reported in terms of identity documents:
How about these guys – as reported by Lyse Comins and Arthi – “Fraud syndicates are using identity theft to exploit the huge number of life and funeral policies being taken out because of the HIV and Aids pandemic. They steal an identity, take out a policy and then declare the person dead and claim the money.”
How absolutely disgusting and reprehensible is that?
To make matters worse, according to Pat Cunningham, SA Fraud Prevention Services Head, “Syndicates frequently used informants at state mortuaries and funeral parlors to alert them to unidentified and unclaimed bodies. They will also disfigure and sell an unidentified body between syndicates (to commit multiple fraud).”
Now that is even more disgusting! I doubt that anyone reading this will disagree with anything that I have said here.
Yet we happily give copies of our ID’s to all and sundry, to anyone who asks. We hand copies of our ID’s to people who deliver stuff to us because we are ‘told’ to, because this is the ‘procedure’ or the ‘policy’ of the company!
Well here’s a thought – I have my own set of ‘policies and procedures’ – I don’t give copies of my ID to just anybody.
Quite frankly, I am the client and not a sheep and actually the FICA and FAIS Acts are there to protect me too.
Yes people have a right to insist that I verify who I am and I can do that by showing them my ID – they can look at the ID and look at me and make a decision as to whether the person in the photograph is me. Hell, that’s what they do when we leave or enter a country – they don’t take copies of our passports! What they don’t have, and this is actually in terms of the FICA Act, is the right to insist that I give them a copy of my ID.
As individuals, we all have to take some responsibility for keeping our identity safe.
So think, think carefully before you just hand over copies of your ID.
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
By Nikki Viljoen – N Viljoen Consulting(Pty) Ltd
Please note that this pertains to South African FICA, FAIS and Best Practice requirements.
I know that I have written about this before – but hell, it needs to be talked about again.
Just last week something was delivered by a bank to one of my clients, by means of a courier, the delivery guy demanded a copy of client’s ID document. I instructed my client not to hand over a copy of their ID! Whatever next? I was told by the bank official that the delivery guy had to make sure that he had delivered to the correct person. My response – well he can look at the person, then look at the ID as well as the ID number that you have given him and if the picture looks like the person he is handing the package to and if the ID # is the same – then guess what – it’s the right person. If he is not satisfied that it is the right person, then he doesn’t have to leave the package here. Quite simple really. The end solution – the courier company delivered to the bank guy (taking a copy of his ID I’m sure) and the bank guy delivered to my client, without getting another copy of the ID!
Here are some of the issues that have been reported in terms of identity documents:
How about these guys – as reported by Lyse Comins and Arthi – “Fraud syndicates are using identity theft to exploit the huge number of life and funeral policies being taken out because of the HIV and Aids pandemic. They steal an identity, take out a policy and then declare the person dead and claim the money.”
How absolutely disgusting and reprehensible is that?
To make matters worse, according to Pat Cunningham, SA Fraud Prevention Services Head, “Syndicates frequently used informants at state mortuaries and funeral parlors to alert them to unidentified and unclaimed bodies. They will also disfigure and sell an unidentified body between syndicates (to commit multiple fraud).”
Now that is even more disgusting! I doubt that anyone reading this will disagree with anything that I have said here.
Yet we happily give copies of our ID’s to all and sundry, to anyone who asks. We hand copies of our ID’s to people who deliver stuff to us because we are ‘told’ to, because this is the ‘procedure’ or the ‘policy’ of the company!
Well here’s a thought – I have my own set of ‘policies and procedures’ – I don’t give copies of my ID to just anybody.
Quite frankly, I am the client and not a sheep and actually the FICA and FAIS Acts are there to protect me too.
Yes people have a right to insist that I verify who I am and I can do that by showing them my ID – they can look at the ID and look at me and make a decision as to whether the person in the photograph is me. Hell, that’s what they do when we leave or enter a country – they don’t take copies of our passports! What they don’t have, and this is actually in terms of the FICA Act, is the right to insist that I give them a copy of my ID.
As individuals, we all have to take some responsibility for keeping our identity safe.
So think, think carefully before you just hand over copies of your ID.
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
Wednesday, June 12, 2019
Networking 101 - Identify Specific Events
Networking 101 - Identify Specific Events
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Dr. Renate Volpe, in her nugget cards entitled “Networking Tips” says:
“Identify specific events such as industry association gatherings, ward or academic evening which you can attend.”
In 2005, after I attended my first networking meeting I was so wound up and amazed by the number of opportunities that, that one meeting opened up for me that I ended up running around like a Dura-cell bunny!
I went to every single meeting I could find, I pestered people into setting up meetings with me and was devastated when they did not pitch. In short, I ran myself ragged, running here and there and all over the place without any sort of plan in my mind except that I had to network and connect with people. Not a good idea hey?
Once I calmed down though, I realized that I needed to be more selective. So instead of going to everything that was happening, I started attending functions and meetings that were attended by like minded individuals who were closer to home. So that meant small business owners in the Cresta area. I further curtailed my ‘30 meter dash to the middle of whatever is happening’ by also slowing down on the number of meetings that I went to. I started having a ‘meeting day’ so that I was left with time and space in which to do my work and not be interrupted every two hours to dash off to a meeting.
I found that I could comfortably cope with four meetings a month, anymore than that I couldn’t cope with the number of ‘one-on-one’ meetings after the event that I insist on, to start building the relationships needed before any business was conducted.
As I experimented and found my feet, I targeted more and more events that would encourage the type of person that I wanted to do business with and only met with individuals who truly wanted to meet and do business with me.
Slowly, but surely I have built up a huge network that continues to grow on a daily basis. I have met some incredible people, some of whom are extremely influential and well connected, but who remain people who want to make a difference. I have referred many, many people who have ended up doing great business as a direct result of those referrals and yes, I have also met a few sharks along the way. In life, those are to be expected from time to time.
So, start at the beginning – go to events that are likely to attract, like minded individuals and grow from there.
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
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Dr. Renate Volpe, in her nugget cards entitled “Networking Tips” says:
“Identify specific events such as industry association gatherings, ward or academic evening which you can attend.”
In 2005, after I attended my first networking meeting I was so wound up and amazed by the number of opportunities that, that one meeting opened up for me that I ended up running around like a Dura-cell bunny!
I went to every single meeting I could find, I pestered people into setting up meetings with me and was devastated when they did not pitch. In short, I ran myself ragged, running here and there and all over the place without any sort of plan in my mind except that I had to network and connect with people. Not a good idea hey?
Once I calmed down though, I realized that I needed to be more selective. So instead of going to everything that was happening, I started attending functions and meetings that were attended by like minded individuals who were closer to home. So that meant small business owners in the Cresta area. I further curtailed my ‘30 meter dash to the middle of whatever is happening’ by also slowing down on the number of meetings that I went to. I started having a ‘meeting day’ so that I was left with time and space in which to do my work and not be interrupted every two hours to dash off to a meeting.
I found that I could comfortably cope with four meetings a month, anymore than that I couldn’t cope with the number of ‘one-on-one’ meetings after the event that I insist on, to start building the relationships needed before any business was conducted.
As I experimented and found my feet, I targeted more and more events that would encourage the type of person that I wanted to do business with and only met with individuals who truly wanted to meet and do business with me.
Slowly, but surely I have built up a huge network that continues to grow on a daily basis. I have met some incredible people, some of whom are extremely influential and well connected, but who remain people who want to make a difference. I have referred many, many people who have ended up doing great business as a direct result of those referrals and yes, I have also met a few sharks along the way. In life, those are to be expected from time to time.
So, start at the beginning – go to events that are likely to attract, like minded individuals and grow from there.
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
Tuesday, June 11, 2019
Business Tips - Managing Your Business - Part 2
Business Tips – Managing Your Business – Part 2
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd
Last week we had a look at some of the issues around Finance and today we continue with Margins.
As usual, let’s have a look at exactly what a “margin” is. The Wiki says :
“Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.
The profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss.
Profit margin is an indicator of a company's pricing strategies and how well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies.”
The easiest way for me to remember it is that the margin is the difference (financially) between what everything cost (not only materials, but also time and expenses [for me as a service type business] and research, printing, paper, ink etc.) and what I charge. If your margins are too low, you will never make a profit and on the other hand if you set your margins too high, you run the risk of never making a sale – it’s a delicately balanced scenario!
Essentially there are two ways to increase your margins (profit margins) and those are either to cut costs or cut prices. In order to know which one to do it is obviously essential that you focus on your margins on a regular basis and also on what the current economic trends are as it is not always a good thing to cut prices, although it is always a good thing to cut costs, as long as that ‘cost’ does not interfere with the quality of your product or service.
Sometimes increasing the price of your services or your product has a powerful statement attached to it – it says “I’m worth it” or “the product is worth it”. I know that when I started out, I had nothing to compare my services to and the result is that I used my corporate ‘salary’ as a gauge to set my hourly rates – wow, was that ever a big mistake. I priced myself far too low and the result is that I attracted many clients, all of who desperately needed by expertise, but all of who could not afford me! Within 24 months I had doubled my hourly rate and I was attracting clients who not only needed me, but who could also afford me.
In this particular instance, me raising my charges had an incredibly powerful effect – it said ‘this is what I am worth’ and the psychological effect on me, as an individual, was incredible. Before, even though my prices were very low, I was chasing business by giving discounts, hoping to retain the very clients that could not afford my services in the first place – that was a very costly mistake – I wrote off a lot of money to bad debt.
Nowadays, if I am going to give a discount – it is because there is a huge value to me and it is based on a whole different set of criteria, such as (but not limited to) early or timeous payment, number of hours on retainer etc.
Cutting costs is definitely the best way to increase your margins and thereby increase your profits. This is not always an easy thing to do particularly in tough times, when you are looking at staff and salaries. You have to divorce yourself from the emotions and look at the cold hard facts. Can you do without this particular function being performed by a single person, in other words “Don’t make it about a person or personal”, but rather about what’s good for the Company. If you have two people doing work that can be done by one person, then it stands to reason that you only need to employ one person – don’t get sucked into the emotional side of things.
Keeping your costs to a minimum and your clients to a maximum is therefore the best way to ensure that your margin remains on track and is the best way to meet and even surpass your budget requirements.
Next time we will have a look at your customers.
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
By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd
Last week we had a look at some of the issues around Finance and today we continue with Margins.
As usual, let’s have a look at exactly what a “margin” is. The Wiki says :
“Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.
The profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss.
Profit margin is an indicator of a company's pricing strategies and how well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies.”
The easiest way for me to remember it is that the margin is the difference (financially) between what everything cost (not only materials, but also time and expenses [for me as a service type business] and research, printing, paper, ink etc.) and what I charge. If your margins are too low, you will never make a profit and on the other hand if you set your margins too high, you run the risk of never making a sale – it’s a delicately balanced scenario!
Essentially there are two ways to increase your margins (profit margins) and those are either to cut costs or cut prices. In order to know which one to do it is obviously essential that you focus on your margins on a regular basis and also on what the current economic trends are as it is not always a good thing to cut prices, although it is always a good thing to cut costs, as long as that ‘cost’ does not interfere with the quality of your product or service.
Sometimes increasing the price of your services or your product has a powerful statement attached to it – it says “I’m worth it” or “the product is worth it”. I know that when I started out, I had nothing to compare my services to and the result is that I used my corporate ‘salary’ as a gauge to set my hourly rates – wow, was that ever a big mistake. I priced myself far too low and the result is that I attracted many clients, all of who desperately needed by expertise, but all of who could not afford me! Within 24 months I had doubled my hourly rate and I was attracting clients who not only needed me, but who could also afford me.
In this particular instance, me raising my charges had an incredibly powerful effect – it said ‘this is what I am worth’ and the psychological effect on me, as an individual, was incredible. Before, even though my prices were very low, I was chasing business by giving discounts, hoping to retain the very clients that could not afford my services in the first place – that was a very costly mistake – I wrote off a lot of money to bad debt.
Nowadays, if I am going to give a discount – it is because there is a huge value to me and it is based on a whole different set of criteria, such as (but not limited to) early or timeous payment, number of hours on retainer etc.
Cutting costs is definitely the best way to increase your margins and thereby increase your profits. This is not always an easy thing to do particularly in tough times, when you are looking at staff and salaries. You have to divorce yourself from the emotions and look at the cold hard facts. Can you do without this particular function being performed by a single person, in other words “Don’t make it about a person or personal”, but rather about what’s good for the Company. If you have two people doing work that can be done by one person, then it stands to reason that you only need to employ one person – don’t get sucked into the emotional side of things.
Keeping your costs to a minimum and your clients to a maximum is therefore the best way to ensure that your margin remains on track and is the best way to meet and even surpass your budget requirements.
Next time we will have a look at your customers.
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
Monday, June 10, 2019
Inspiration – Acceptance or Change
Inspiration – Acceptance or Change
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Today’s quote comes from an anonymous wise person who says “Life can either be accepted or changed. If it is not accepted, it must be changed. If it cannot be changed, then it must be accepted.”
Man, oh man! I can just see all the heads a nodding in agreement. Well here’s the kicker – the next time I hear any of you complain about something, I am going to remind you of this message!
Instead of complaining and moaning and groaning about the economy, the interest rates, the government, the tax man (insert anything you like here), find a way to change it.
If it is the economy – look for innovative ways to do business – notice, I did not say look for illegal ways to do business! There are a million and one opportunities out there – find one the suits you and change your mind set to make it work for you.
How about the interest rates – well it is my understanding (and I am no economist here) that the rates are put up to combat inflation. The reasons that we have inflation are many – one I know is because we here in South Africa, live on credit. So spend less on credit, try and pay off more of your debt so that you can become debt free and find a way to start a savings account. If we all did this we would certainly be a lot better.
The government – well here’s a fun one! Certainly here in South Africa we live in very interesting times in terms of what has happened in 2019. I hope you made the effort – find out who was offering what, back a party and actually went and voted. How can you complain about the government and what it has and hasn’t done, if you didn’t vote?
The tax man – this is one of my favorite’s! You see the tax man makes money for me! Yes he does, because I have learnt how to manage my VAT – so instead of me groaning and moaning every second month because I can’t find the money to pay the VAT man, I now celebrate because of how much the VAT man has ‘paid’ me to be a VAT vendor.
So come on people, I challenge you – find a way to make a change and in making a change, make a difference and if you seriously cannot do anything to change the situation, have the grace to accept it, make your peace with it and get on with the business of life!
Don’t let situations or issues control your life – take ownership of your life and make sure that you control the situations and issues in your own life.
Let’s get on with the rest of 2019 on the right foot, going in the right direction – find a way to change something or make a difference every day of your life, even if that difference is to you. You’ll find that it is not that difficult to do.
Wishing you all the very best, in advance for the rest of 2019 – let’s make a difference!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Today’s quote comes from an anonymous wise person who says “Life can either be accepted or changed. If it is not accepted, it must be changed. If it cannot be changed, then it must be accepted.”
Man, oh man! I can just see all the heads a nodding in agreement. Well here’s the kicker – the next time I hear any of you complain about something, I am going to remind you of this message!
Instead of complaining and moaning and groaning about the economy, the interest rates, the government, the tax man (insert anything you like here), find a way to change it.
If it is the economy – look for innovative ways to do business – notice, I did not say look for illegal ways to do business! There are a million and one opportunities out there – find one the suits you and change your mind set to make it work for you.
How about the interest rates – well it is my understanding (and I am no economist here) that the rates are put up to combat inflation. The reasons that we have inflation are many – one I know is because we here in South Africa, live on credit. So spend less on credit, try and pay off more of your debt so that you can become debt free and find a way to start a savings account. If we all did this we would certainly be a lot better.
The government – well here’s a fun one! Certainly here in South Africa we live in very interesting times in terms of what has happened in 2019. I hope you made the effort – find out who was offering what, back a party and actually went and voted. How can you complain about the government and what it has and hasn’t done, if you didn’t vote?
The tax man – this is one of my favorite’s! You see the tax man makes money for me! Yes he does, because I have learnt how to manage my VAT – so instead of me groaning and moaning every second month because I can’t find the money to pay the VAT man, I now celebrate because of how much the VAT man has ‘paid’ me to be a VAT vendor.
So come on people, I challenge you – find a way to make a change and in making a change, make a difference and if you seriously cannot do anything to change the situation, have the grace to accept it, make your peace with it and get on with the business of life!
Don’t let situations or issues control your life – take ownership of your life and make sure that you control the situations and issues in your own life.
Let’s get on with the rest of 2019 on the right foot, going in the right direction – find a way to change something or make a difference every day of your life, even if that difference is to you. You’ll find that it is not that difficult to do.
Wishing you all the very best, in advance for the rest of 2019 – let’s make a difference!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
Friday, June 07, 2019
HR 101 - Maintain Control of your Staff – Part 2
HR 101 - Maintain Control of your Staff – Part 2
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Please note that this pertains to South African Labour Relations and Best Practice Requirements.
I must admit that writing this particular article has taken me down memory lane and some of the most bizarre experiences, in terms of staff who just do not want to co-operate and who are in turn often mismanaged. Just this year alone I have had more than half a dozen incidents where the employer has turned to me in absolute frustration and said “I know that I have allowed this to carry on far too long, but . . .”. Sadly it has cost them all – dearly, not only in fees to pay me and then my HR specialist who had to be consulted in terms of dismissal and in some instances even representing them at the CCMA, but also in their own time that was wasted in trying to sort this out.
Some more examples of what staff do (or don’t do in certain instances), when they are not properly controlled and managed are, (but not limited to):
• Refuse to carry out instructions. Often staff will pay ‘lip service’ to an instruction that you give them. To outward appearances they have ‘bought into’ what you have asked them to do and you go about your business thinking that your instruction has been carried out only to find out later (and often when it is too late and the damage has been done) that the instruction was in fact not carried out. This particular issue is worse than when the employee, straight out refuses to carry out an instruction – at least that way you know where you stand. Here’s the thing though, in both of these instances this is grounds for dismissal and it needs to be dealt with immediately, especially if you have other employees who are watching to see what will happen. The employee needs to be verbally cautioned about the fact that they are ‘refusing’ to follow a reasonable instruction and that this could lead to a disciplinary which in turn could lead to their dismissal. If they still refuse to perform the task, disciplinary action should be taken. In the instances where the employee has just not performed the task that they were instructed to, disciplinary action should also be taken – obviously this will not help the situation as you will still be sitting with the consequences of not having had something done, but it will send out a very clear message. Remember by doing nothing, the message that you are sending out is that this is acceptable behaviour and that makes it all the more difficult to control the next time around. Furthermore you are in all probability setting a precedent and if you don’t discipline the first person you cannot discipline the next one that does it. That would be considered ‘unfair practice’.
• A personal favourite of mine – it’s sure to send me crazy, is when staff do the work but then don’t check what they have done! Man oh man, that does it to me every time. For me it is indicative of a person who is doing the bare minimum to get by, someone who is not proud of their work or someone who just does not give a damn and quite honestly, I believe that we can all do without people like that in our lives. If I have to check everything that staff do before it goes out then quite frankly I may as well do it myself. One of the quickest and easiest ways to control this type of person is by means of a ‘check list’ for the task. The last thing on the list should be ‘check and double check your work’ – make them sign off on that and that record will ensure that they remain on the straight and narrow and if they don’t, you will have evidence showing that they have not completed the task correctly. Make sure that they sign for each step and this will make them a lot more careful. Again, any deviation or variation on the procedures must be dealt with immediately to ensure that it does not reoccur.
Next week we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Please note that this pertains to South African Labour Relations and Best Practice Requirements.
I must admit that writing this particular article has taken me down memory lane and some of the most bizarre experiences, in terms of staff who just do not want to co-operate and who are in turn often mismanaged. Just this year alone I have had more than half a dozen incidents where the employer has turned to me in absolute frustration and said “I know that I have allowed this to carry on far too long, but . . .”. Sadly it has cost them all – dearly, not only in fees to pay me and then my HR specialist who had to be consulted in terms of dismissal and in some instances even representing them at the CCMA, but also in their own time that was wasted in trying to sort this out.
Some more examples of what staff do (or don’t do in certain instances), when they are not properly controlled and managed are, (but not limited to):
• Refuse to carry out instructions. Often staff will pay ‘lip service’ to an instruction that you give them. To outward appearances they have ‘bought into’ what you have asked them to do and you go about your business thinking that your instruction has been carried out only to find out later (and often when it is too late and the damage has been done) that the instruction was in fact not carried out. This particular issue is worse than when the employee, straight out refuses to carry out an instruction – at least that way you know where you stand. Here’s the thing though, in both of these instances this is grounds for dismissal and it needs to be dealt with immediately, especially if you have other employees who are watching to see what will happen. The employee needs to be verbally cautioned about the fact that they are ‘refusing’ to follow a reasonable instruction and that this could lead to a disciplinary which in turn could lead to their dismissal. If they still refuse to perform the task, disciplinary action should be taken. In the instances where the employee has just not performed the task that they were instructed to, disciplinary action should also be taken – obviously this will not help the situation as you will still be sitting with the consequences of not having had something done, but it will send out a very clear message. Remember by doing nothing, the message that you are sending out is that this is acceptable behaviour and that makes it all the more difficult to control the next time around. Furthermore you are in all probability setting a precedent and if you don’t discipline the first person you cannot discipline the next one that does it. That would be considered ‘unfair practice’.
• A personal favourite of mine – it’s sure to send me crazy, is when staff do the work but then don’t check what they have done! Man oh man, that does it to me every time. For me it is indicative of a person who is doing the bare minimum to get by, someone who is not proud of their work or someone who just does not give a damn and quite honestly, I believe that we can all do without people like that in our lives. If I have to check everything that staff do before it goes out then quite frankly I may as well do it myself. One of the quickest and easiest ways to control this type of person is by means of a ‘check list’ for the task. The last thing on the list should be ‘check and double check your work’ – make them sign off on that and that record will ensure that they remain on the straight and narrow and if they don’t, you will have evidence showing that they have not completed the task correctly. Make sure that they sign for each step and this will make them a lot more careful. Again, any deviation or variation on the procedures must be dealt with immediately to ensure that it does not reoccur.
Next week we will have a look at some more examples of what employees get up to when they are not effectively managed.
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
Thursday, June 06, 2019
Early Warning - The Stolen Cell Phone
Early Warning - The Stolen Cell Phone
By Nikki Viljoen – N Viljoen Consulting(Pty) Ltd
I received this story from my friend and colleague Toni Guerrero, who writes:
“This lady has now changed her habit of how she lists her names on her mobile phone after her handbag was stolen. Her handbag, which contained her cell phone, credit card, wallet . . . . etc . . . . was stolen.
20 minutes later when she called her hubby, from a pay phone telling him what happened, hubby says ‘I received your text asking about our Pin number and I’ve replied a little while ago.’
When they rushed down to the bank, the bank staff told them all the money was already withdrawn. The thief had actually used the stolen cell phone to text ‘hubby’ in the contact list and got hold of the pin number. Within 20 minutes he had withdrawn all the money from their bank account.
Moral of the lesson: Do not disclose the relationship between you and the people in your contact list.
Avoid using names like Home, Honey, Hubby, Sweetheart, Dad, Mom and so on.
And very importantly, when sensitive info is being asked for through texts CONFIRM by calling back.
Also, when you’re being texted by friends or family to meet them somewhere, be sure to call back and confirm that the message came from them. If you don’t reach them, be very careful about going places to meet ‘family and friends’ who text you.”
I certainly did not think of the above! Take care and be safe. Oh, and don’t forget – pass this on to everyone that you know.
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
By Nikki Viljoen – N Viljoen Consulting(Pty) Ltd
I received this story from my friend and colleague Toni Guerrero, who writes:
“This lady has now changed her habit of how she lists her names on her mobile phone after her handbag was stolen. Her handbag, which contained her cell phone, credit card, wallet . . . . etc . . . . was stolen.
20 minutes later when she called her hubby, from a pay phone telling him what happened, hubby says ‘I received your text asking about our Pin number and I’ve replied a little while ago.’
When they rushed down to the bank, the bank staff told them all the money was already withdrawn. The thief had actually used the stolen cell phone to text ‘hubby’ in the contact list and got hold of the pin number. Within 20 minutes he had withdrawn all the money from their bank account.
Moral of the lesson: Do not disclose the relationship between you and the people in your contact list.
Avoid using names like Home, Honey, Hubby, Sweetheart, Dad, Mom and so on.
And very importantly, when sensitive info is being asked for through texts CONFIRM by calling back.
Also, when you’re being texted by friends or family to meet them somewhere, be sure to call back and confirm that the message came from them. If you don’t reach them, be very careful about going places to meet ‘family and friends’ who text you.”
I certainly did not think of the above! Take care and be safe. Oh, and don’t forget – pass this on to everyone that you know.
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
Wednesday, June 05, 2019
Networking 101 - Get Some Diversity Going
I am an Internal Auditor & Business Administration specialist and work here in South Africa (and in some other parts of the world from time to time), with hundreds of Entrepreneurs and Start-ups, where I teach them the ‘how to’ of Starting and Running a sustainable business. My business has been going for over 15 years now but I have almost 45 years’ experience in the Operations and Administrative field.
I run workshops for entrepreneurs and Start-ups on the “how to” of several aspects of business, such as (but not limited to) How to Write a Business Plan; A Basic Practical Guide to Starting and Running a Business; Financial Literacy for Non-Financial Entrepreneurs; Contract, Proposals and Tender Documents - The How To for Entrepreneurs; HR 101 for Entrepreneurs; Corporate Governance, Compliance & the New Companies Act - for Entrepreneurs; How to Export – for Entrepreneurs.
I also work with big corporate companies, especially with their procurement processes and their supply chain, where they use their CSI spend to upskill their supply chain. It means a more effective and efficient supply chain, they get additional points for using their CSI spend on Entrepreneurs and again additional BEE points for using Entrepreneurs. I am also an automatic Level 4.
I work in some of the Corporates to help them, firstly to identify the problem areas within their businesses and then to assist them with putting processes and procedures in place to correct the problem areas. This of course, means that they too will become more efficient and sustainable.
On rare occasions I get to perform forensic audits, which I particularly enjoy.
I have written and shared over 2000 blogs on a variety of topics that are geared specifically for Entrepreneurs, but can also be used by Start-ups and even Corporates. This led to me being rated and ranked by Blogger.Com who rated me 8.9 out of a possible 10 and this ranked me 5th in the world in my category.
I have a by-monthly column in the Your Business Magazine and have been writing for them since 2010.
I am interviewed on a regular basis on the Big Small Business Show and am able to give out valuable business related tips.
I am one of a hand full of individuals who has been certified by ILO (International Labour Organisation) to perform Gender Audits and finally, I am an Alumnae Mentor for the Cherie Blair Foundation, where I have been mentoring women Entrepreneurs from all over the world, since 2012.
I run workshops for entrepreneurs and Start-ups on the “how to” of several aspects of business, such as (but not limited to) How to Write a Business Plan; A Basic Practical Guide to Starting and Running a Business; Financial Literacy for Non-Financial Entrepreneurs; Contract, Proposals and Tender Documents - The How To for Entrepreneurs; HR 101 for Entrepreneurs; Corporate Governance, Compliance & the New Companies Act - for Entrepreneurs; How to Export – for Entrepreneurs.
I also work with big corporate companies, especially with their procurement processes and their supply chain, where they use their CSI spend to upskill their supply chain. It means a more effective and efficient supply chain, they get additional points for using their CSI spend on Entrepreneurs and again additional BEE points for using Entrepreneurs. I am also an automatic Level 4.
I work in some of the Corporates to help them, firstly to identify the problem areas within their businesses and then to assist them with putting processes and procedures in place to correct the problem areas. This of course, means that they too will become more efficient and sustainable.
On rare occasions I get to perform forensic audits, which I particularly enjoy.
I have written and shared over 2000 blogs on a variety of topics that are geared specifically for Entrepreneurs, but can also be used by Start-ups and even Corporates. This led to me being rated and ranked by Blogger.Com who rated me 8.9 out of a possible 10 and this ranked me 5th in the world in my category.
I have a by-monthly column in the Your Business Magazine and have been writing for them since 2010.
I am interviewed on a regular basis on the Big Small Business Show and am able to give out valuable business related tips.
I am one of a hand full of individuals who has been certified by ILO (International Labour Organisation) to perform Gender Audits and finally, I am an Alumnae Mentor for the Cherie Blair Foundation, where I have been mentoring women Entrepreneurs from all over the world, since 2012.
Tuesday, June 04, 2019
Business Tips – Managing Your Business – Part 1
Business Tips – Managing Your Business – Part 1
By Nikki Viljoen – Viljoen Consulting (Pty) Ltd
Most will agree that the light at the end of the tunnel is no longer an oncoming train and whilst the 2008 recession (such as it was) is now officially over, it will take the economy (read SMME’s) some time to rally, make a come-back and hopefully deposit us right back to where we were – obviously not in terms of what caused the melt down in the first place, but certainly in terms of running productive, successful businesses.
I know that I really had to ‘grit’ my teeth and bear it for a few months – you know what I mean – the uncertainty of money coming in or getting work in or making the sale and so on.
Fact of the matter is , that when you are in the dwang – that’s exactly where you are and sometimes it is just a matter of waiting it out. There are a number of tips though, that will help and guide you through, should you find yourself in difficult or trying times. Actually it is not a bad thing to get yourself in the habit of doing these all the time – bad or good times.
Finance
For me, if you have lost control of your finances, then you have lost control of your business. I think that most people, when they think of business finances, what they think about are the books and whilst I agree with that on some level, I also want to make it very clear that the books are ‘reactive’. By that I mean that they are ‘in the past’ – what is contained in your books has already happened. Cash flow, on the other hand, governs what is happening right now.
Think about it for a moment – it doesn’t matter how many people owe you money, or who have promised to pay you – the bottom line is that when you look at your bank account, it is about what is actually there (less what needs to be paid out) that actually counts. So it stands to reason that the cash flow needs to be properly managed and should be discussed at every management meeting. If, like me, you are on your own, it is a good idea to make time (at least weekly) to check up and see what is going on.
Make sure that the Management Accounts are monitored on a regular basis and that they are consistently checked for issues such as the key ratios, this will assist in enabling you to identify trends earlier, when you can still do something about them, rather than later, when you are already in the smelly brown stuff. Updating your cash flow forecasts on a regular basis will also assist in ensuring that you are ahead of the game – remember to watch the sensitive bits – issues like a change in the exchange rate or a price hike in fuel could have a huge effect on your margins.
Next time we will have a closer look at margins.
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
By Nikki Viljoen – Viljoen Consulting (Pty) Ltd
Most will agree that the light at the end of the tunnel is no longer an oncoming train and whilst the 2008 recession (such as it was) is now officially over, it will take the economy (read SMME’s) some time to rally, make a come-back and hopefully deposit us right back to where we were – obviously not in terms of what caused the melt down in the first place, but certainly in terms of running productive, successful businesses.
I know that I really had to ‘grit’ my teeth and bear it for a few months – you know what I mean – the uncertainty of money coming in or getting work in or making the sale and so on.
Fact of the matter is , that when you are in the dwang – that’s exactly where you are and sometimes it is just a matter of waiting it out. There are a number of tips though, that will help and guide you through, should you find yourself in difficult or trying times. Actually it is not a bad thing to get yourself in the habit of doing these all the time – bad or good times.
Finance
For me, if you have lost control of your finances, then you have lost control of your business. I think that most people, when they think of business finances, what they think about are the books and whilst I agree with that on some level, I also want to make it very clear that the books are ‘reactive’. By that I mean that they are ‘in the past’ – what is contained in your books has already happened. Cash flow, on the other hand, governs what is happening right now.
Think about it for a moment – it doesn’t matter how many people owe you money, or who have promised to pay you – the bottom line is that when you look at your bank account, it is about what is actually there (less what needs to be paid out) that actually counts. So it stands to reason that the cash flow needs to be properly managed and should be discussed at every management meeting. If, like me, you are on your own, it is a good idea to make time (at least weekly) to check up and see what is going on.
Make sure that the Management Accounts are monitored on a regular basis and that they are consistently checked for issues such as the key ratios, this will assist in enabling you to identify trends earlier, when you can still do something about them, rather than later, when you are already in the smelly brown stuff. Updating your cash flow forecasts on a regular basis will also assist in ensuring that you are ahead of the game – remember to watch the sensitive bits – issues like a change in the exchange rate or a price hike in fuel could have a huge effect on your margins.
Next time we will have a closer look at margins.
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
Monday, June 03, 2019
Inspiration – Lack of . . .
Inspiration – Lack of . . .
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Ken Hakuta says “Lack of money is no obstacle. Lack of an idea is an obstacle.”
Well I am not sure if “Lack of money” is not an obstacle – ask anyone who doesn’t have any (and I’m not talking about ‘having enough’ here) and I am sure that they will see it as a huge challenge! I do get what he is trying to say though – it is about not having any money and having no idea about where or how you are going to get some or make some – now that is the biggest obstacle for sure!
For me, I guess, it still is all about having the dream and making the right choices in order to turn that dream into a reality and that is the biggest obstacle. Taking something that you are really passionate about, that is fun for you to do and then turning it into a money spinner – now that is the greatest challenge for me.
You see, whilst I am doing what I love, the last thing on my mind is money. I’m just enjoying the experience, loving every single minute of it. Think for a moment about an artist – drawing and painting is something that they have to do in order to fulfill themselves – their most basic needs. I doubt very much that they can stop the flow of their artistic endeavours, no matter how hard you tried. As they work on their canvasses or drawing books, all of their senses come alive as they watch the lines on the page or the strokes of the brush, turn whatever the picture they have in their heads into something that everybody can see – the beauty of art. I guarantee you, that whilst they are reveling in the beauty of what they are busy creating, the last thing on their minds is money – it’s perhaps thinking about what to add to get that colour just right, or how to shade that section in order to highlight the focus of this limb. No, it’s got nothing to do with money at all. In fact, I would go so far as to say, that many artists are so emotionally attached to some of their paintings and drawings that it is almost physically impossible for them to sell their work – for them it is the same as selling one of their children.
Yet that is exactly that is what they have to do, in order to make the money for them to then purchase the supplies in order for them to once again use their talents, their passion and to make their ideas and their dreams into a reality and so the cycle continues.
Sometimes, I really do think that it may be easier to just work at a job that is completely mindless, but that pays a good wage, that I don’t have to be emotionally invested in – you know the one – the ‘other people’s idea/passion’ one. Fortunately it always comes to me as a fleeting thought, because then I think about it carefully and I know and understand that the days that I worked in Corporate are over. The days that I worked making other people’s ideas and dream a reality are over. The days that I worked and in so doing, fanned the flames of someone else’s passion, are over.
These days I find my own ideas, I work with my own passion, with love and the same kind of amazement that artists have when they look at the beauty of the painting or the drawing that they have just completed and they think “Wow – did I do that?”
Does money have a place in there – absolutely! I have to make the money in order to be able to indulge myself in doing the things that I love. As difficult as the lesson was, has been and continues to be, I do understand that I have to think about money and ‘sell’ the ideas.
Using my passion and love for what I do is immensely rewarding on so many different levels and one of them is being able to pay the bills 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
By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd
Ken Hakuta says “Lack of money is no obstacle. Lack of an idea is an obstacle.”
Well I am not sure if “Lack of money” is not an obstacle – ask anyone who doesn’t have any (and I’m not talking about ‘having enough’ here) and I am sure that they will see it as a huge challenge! I do get what he is trying to say though – it is about not having any money and having no idea about where or how you are going to get some or make some – now that is the biggest obstacle for sure!
For me, I guess, it still is all about having the dream and making the right choices in order to turn that dream into a reality and that is the biggest obstacle. Taking something that you are really passionate about, that is fun for you to do and then turning it into a money spinner – now that is the greatest challenge for me.
You see, whilst I am doing what I love, the last thing on my mind is money. I’m just enjoying the experience, loving every single minute of it. Think for a moment about an artist – drawing and painting is something that they have to do in order to fulfill themselves – their most basic needs. I doubt very much that they can stop the flow of their artistic endeavours, no matter how hard you tried. As they work on their canvasses or drawing books, all of their senses come alive as they watch the lines on the page or the strokes of the brush, turn whatever the picture they have in their heads into something that everybody can see – the beauty of art. I guarantee you, that whilst they are reveling in the beauty of what they are busy creating, the last thing on their minds is money – it’s perhaps thinking about what to add to get that colour just right, or how to shade that section in order to highlight the focus of this limb. No, it’s got nothing to do with money at all. In fact, I would go so far as to say, that many artists are so emotionally attached to some of their paintings and drawings that it is almost physically impossible for them to sell their work – for them it is the same as selling one of their children.
Yet that is exactly that is what they have to do, in order to make the money for them to then purchase the supplies in order for them to once again use their talents, their passion and to make their ideas and their dreams into a reality and so the cycle continues.
Sometimes, I really do think that it may be easier to just work at a job that is completely mindless, but that pays a good wage, that I don’t have to be emotionally invested in – you know the one – the ‘other people’s idea/passion’ one. Fortunately it always comes to me as a fleeting thought, because then I think about it carefully and I know and understand that the days that I worked in Corporate are over. The days that I worked making other people’s ideas and dream a reality are over. The days that I worked and in so doing, fanned the flames of someone else’s passion, are over.
These days I find my own ideas, I work with my own passion, with love and the same kind of amazement that artists have when they look at the beauty of the painting or the drawing that they have just completed and they think “Wow – did I do that?”
Does money have a place in there – absolutely! I have to make the money in order to be able to indulge myself in doing the things that I love. As difficult as the lesson was, has been and continues to be, I do understand that I have to think about money and ‘sell’ the ideas.
Using my passion and love for what I do is immensely rewarding on so many different levels and one of them is being able to pay the bills 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
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