Leadership 101 - The Role and Responsibility of Directors – Part 3

 Leadership 101 - The Role and Responsibility of Directors – Part 3

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

 

Please note that this pertains to South African Legislation, the King Requirements, and Best Practice.

So today we start looking at some of the specific risks that most companies face and therefore what, in particular, the Board of Directors should be looking at.

Firstly, let’s look at some of the key questions that entrepreneurs should be looking at in terms of themselves.  The reality is that in order for a company to run effectively and indeed be compliant, they have to be headed up by a Board of Directors. The Board of Directors is responsible for directing, governing, and being in control of the company.  Some of the questions that they should be asking are (but not limited to):-

- Does the company have the right people in the right place?  This would be both in terms of those who lead as well as those who manage the business from a directorship perspective as well as senior management or even HOD’s (Heads of Department).

- Whilst the Board of Directors are ultimately responsible they cannot do everything themselves and realistically they need to step out of the way in terms of the day-to-day management of the company.

The next question therefore is, are the Directors independent of management?

- In the instances where external assistance is needed and the Board of Directors can and do outsource expert advice and where they do, do they actually make use of that advice?

- Sometimes it is better to go outside of the company and sometimes it isn’t.  The reality is that the Board of Directors needs to make a decision as to whether they would get greater value from internal or external assistance.  This needs to be evaluated. Remember that this is in the best interests of the company, so egos should be checked in at the door.

- The duties of the Board of Directors are onerous – there is all the compliance stuff and all the leadership stuff and getting the business in and finding the deals and paying the bills and looking after the staff stuff and the reality is that they cannot control everything all of the time.  So, has the Board of Directors delegated sufficiently to committees or sub-committees or even to HODs directly?

- What about the Board of Directors and Committee charters?  Firstly do they have a charter and if so is it updated on a regular basis to ensure that it still meets the requirements of the company as well as any new legislation?  Not meeting new legislation requirements could prove to be very costly.

- How are the sustainability issues dealt with?  Is there a committee or sub-committee set up to handle them or are they handled by a committee that is already set up and if so, which one?  Is it the right one?  To have tasks split between the sub-committees or to have one sub-committee set up specifically to deal with the sustainability issues is a decision that will need to be taken.

- There must be a measurement structure in place to ascertain whether the current roles and structures of the subsidiary Boards are adding value.  This should be monitored on a regular basis and adjusted accordingly.

- How are the Board of Directors incorporating strategy, risk, performance, and sustainability into their decision-making philosophy?  How is this managed and measured?

- What about the directors themselves, are they spending their time effectively and efficiently in meetings and dealing only with material issues?  Again, how is this being monitored and measured?

As you can see from the level of detail in this one section of the requirements, the level of responsibility and accountability is huge.

Next time we will have a look at the Directors responsibilities around the governance of risk. 

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

Business Tips – Opportunity – Buying a Franchise

 Business Tips – Opportunity – Buying a Franchise 

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to the South African Consumer Protection Bill, the Franchise Association of SA, and Best Practice requirements.

Well let me say this – there are franchises and then there are franchises!

As with most things in life, you need to be careful about what you purchase – do the research, check the numbers – better yet get an Accountant (not a bookkeeper mind you) to check that the numbers are correct, insist on a Tax Certificate, if need be, get a Business Broker involved to ensure that the business is all that it is made out to be.

That said, there is a newly promulgated Bill that has just gone through called “The Consumer Protection Bill” (CPB).  This Bill was put into place in order to “promote and advance the social and economic welfare of consumers in South Africa.”

So what does this actually mean?

Well, years ago when the whole Franchise thing started, many people got their fingers seriously burnt. The support that was promised never materialized. The Franchise business was never what it was made out to be, and many people went out of business and lost everything.  Make no mistake, there are still those Franchises that are still exactly like that!  With the new Bill, however, because all Franchise agreements will have to comply with the Bill, which will clearly give the Franchisee a lot more protection, and they will also have some sort of recourse to the Franchisor.

An added protection is if the Franchisor is registered with the Franchise Association of South Africa (FASA).  As a member of FASA, the Franchisor would be obliged to meet the Franchising standards as set out by the Association.  FASA makes sure that everyone follows and is compliant in terms of the internationally accepted Franchise principals.

Quite frankly if for no other reason, I would ensure that the Franchise business that I was intending to purchase, is registered with FASA – that in itself would give me a lot more peace of mind.

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 

Inspiration – Keep Moving

 Inspiration – Keep Moving

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

William Golding in his “lessons In Life” piece says “Consider a man riding a bicycle.  Whoever he is, we can say three things about him.  We know he got on the bicycle and started to move.  We know that at some point he will stop and get off.  Most important of all, we know that if at any point between the beginning and the end of his journey, he stops moving and does not get off the bicycle he will fall off it.  That is a metaphor for the journey through the life of any living thing and I think of any society of living things.”

So what is it about the human race that we are all so incredibly unique and yet exactly the same?  I guess if I knew the answer to that I would know the secrets of the Universe.  What I do know though is that we all have to go through it all in the same way.  There are no short cuts.  We all start somewhere and we all end up somewhere else and in between those two points, we have to move forward and grow as individuals.  Sure there are times that we seem to go around in circles and sometimes we even travel backward for a time, but essentially we are moving all the time.

Some of us move faster than others, some seem to whizz by with little effort, some seem to drag themselves about, some are relatively baggage-free and some seem to be weighed down in the extreme, but what we do is move, searching, in every direction that we choose to take ourselves, for the meaning of life, for our life’s purpose, for whatever it is that we hunger for that always seems to be just out of reach.

The more we think we know, the less we actually know, and the harder we look for it.  I am constantly reminded of my own limitations when I celebrate something that I have just learned only to discover that putting it into practice still needs to be accomplished.  Just when I think I have it sorted the ‘lack of’ my knowledge pushes me ever onwards and upwards.

Sometimes I despair at the constant ‘striving’ to get there – it often reminds me of a journey I once took from Port Elizabeth to Durban.  The road curved left and right at almost impossible angles and it felt like it was climbing ever upwards and as I was getting to the crest of one hill and I thought that it would not get any higher, I would reach the top only to discover that there was yet another hill, a little higher than the one that I had just climbed, ahead of me.  Sure the view was nothing short of spectacular, but the terrain was hard, unyielding, and unforgiving.  I could not imagine how people lived there, yet everywhere typical little African huts dotted the countryside.  Children looked after herds of cattle and sheep and chickens and donkeys walked in the road.  I remember feeling as though I was literally at the top of the world, yet at some point, the road, still twisting and turning sloped ever downwards and with it the feeling of me returning to normalcy (whatever that may mean for me).

I also know that no matter if we are moving forward or round and round or backward or up or down, that we move by the choices that we make or even don’t make.  I know that we can control the speed with which we move and the direction that we move by the acceptance of the lessons that we learn.  By embracing what we learn and by trusting ourselves and believing in ourselves and ‘what is’ we come to the realization of our dreams.

I know that in order for us to be the master of our own destiny we have to keep moving.  I know that in order for us to attain and achieve our goals we have to keep moving.  I know that the minute we stop moving we will literally cease to exist.

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

HR 101 – What to do When . . . There’s a discrepancy on the Job Description - Part 2

 HR 101 – What to do When . . . There’s a discrepancy on the Job Description - Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice Requirements.

So now we know what a job description is, let’s have a look at the case study.  Before we do that, however let me just say that often the question arises about whether job descriptions should be intentionally general to avoid the situation where an employee is obliged to carry out tasks or duties that are not specified in their job description. I have been advised that this has been looked at recently by the CCMA at an arbitration – let’s have a look.

Let’s have my favorite protagonists. Mike and George.

Mike owns a fleet of ‘horse and carriages’.  These are those huge big trucks that carry containers, sometimes they haul ‘double containers’.  We’ve all seen them and I am sure, often been stuck behind one going up a hill!  George is one of the drivers of the ‘horse’.  Mike’s business is both in the various ports in South Africa as well as in Johannesburg.  Mike’s vehicles transport the containers that are off-loaded in the ports and that must then be transported to where-ever the destination of the importer is, or alternatively from the exporter from whichever port the goods are leaving from. There are also times when goods must be transported from the manufacturer to the recipient’s depot.

This particular issue arose when there were no loads to be transported and George was requested to act as a convoy driver.

George refused on the grounds that he was a ‘horse and carriage’ driver and as such his duties were to the upliftment and transportation of containers and therefore he was restricted to this. His refusal was supported by the SATAWU union.

Mike stated that the instruction to act as a convoy driver, was fair and reasonable and within the requirements of the law and that therefore, George had no right to refuse to perform the task on the grounds that it was not specifically stated in his job description. 

The CCMA Arbitrator was asked to decide “whether, under all circumstances, it is reasonable to instruct a horse and carriage drivers to do convoy work, when there are no loads available.”

Next week we will have a look at what the Arbitrator came up with.

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

Networking 101 - Why I Network

 Networking 101 - Why I Network

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Networking is a daily part of my life, in fact, I could not imagine how my life would be if I were not able to ‘network’! I am a ‘natural’ networker and it is at times excruciatingly difficult for me to understand that this is not the case with many people!  How they ‘manage’ is beyond me, which is probably why I keep threatening to write a book which I will entitle ‘The Reluctant Entrepreneur!’   Most people burst into nervous laughter when I make this statement, I suspect because they never know what next to expect from me, but to illustrate my meaning, I would like to relate the following true story:

During the latter half of 2005, I was fortunate enough to attend a workshop that included Nadia Bilchik as the main speaker.

For those of you who can remember that far back, Nadia used to be an M-Net Anchor Lady during the 1980s and 90s, here in South Africa.  My favorite memory of Nadia was her character in the “Crunchie” ad’s although she also appeared in several South African movies over the years.

The story goes (and this came from Nadia herself) that Nadia has always been a ‘people’s person’ who chatted easily with everyone with no thought of race, colour, social standing, or gender.  A real networker!  Nadia made friends where ever she went.  During this time one of the people that Nadia always touched base with was the Security chap at M-Net.  What possible reason would she have for doing that, you may wonder, but read on and find out!

In 1997, Nadia’s husband was to be relocated to Atlanta Georgia, in America and Nadia’s little world fell apart!  Her whole support group of family and friends, who she had built up over the years were here in sunny South Africa and now she would have to move to an unknown part of the world, where she knew no-one! Not only that but being a ‘big fish in a little pond’, Nadia would be moving somewhere, where she was not known at all!  Imagine if you will, her distress.  Where would she work and how would she get into the kind of work that she was used to?

Nadia told anyone who cared to listen to her dilemma, including the security guard.

The security guard (let’s call him George), unbeknown to Nadia, had been on some or other course, with security guards from all over the world.  Don’t ask what the course was …… I have no idea!  Anyway, I digress – George had, during the course of his course, met a security guard from . . . .  you’ve guessed it, Atlanta Georgia (let’s call this chap Mike) and not only was Mike from Atlanta Georgia, but he also worked at the CNN studios there!  The rest, as they say, is history!

What happened was, that George contacted his buddy Mike and told him all about Nadia back here in South Africa.  Mike promised to help.  George got Nadia to do a videotape of herself in glorious technicolour and when Nadia got to Atlanta, Mike handed said tape to the people who count at the Studios there.  Nadia landed herself a fat job and now has her own slot on CNN, all because Nadia was a friendly, natural Networker!

Powerful stuff wouldn’t you say – who would have thought!

Now because I have discovered that not everyone knows how to network, I have decided that I will be giving out some useful tips on the blog on Networking.

I recently had the privilege of meeting Helen Nicholson, the Guru of Networking.  Helen has written a book entitled “Networking: The Unwritten Rule of Business you need to know”.  Although I consider myself a ‘natural networker’, meeting Helen in person the other day for a chat and then reading her book, without pause, showed me that I too have a lot to learn!

I have my own signed copy of the book and strongly suggest that you get your own copy.  

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

Leadership 101 - The Role and Responsibility of Directors – Part 2

  Leadership 101 - The Role and Responsibility of Directors – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Legislation, the King Requirements, and Best Practice.

When the New Companies Act came into being, the role and responsibilities of the Directors changed - dramatically. The problem, of course, is that still today, most Directors out there have no clue what it is that they are responsible for!

One of the things that Directors will be held responsible and accountable for is managing the risks in the Business? Here are some of the risks that will need to be assessed and then managed.

There are three distinct types of risks. These are:

- Hazard

- Opportunity

- Uncertainty

Let’s have a look at these in more detail.

Hazard risk.

This is usually the "threat" of negative things that could happen to a business and it is usually the most common risk that Directors understand and it usually the only one that is discussed around the boardroom table.

Opportunity Risk

This is usually about an opportunity that is lost due to decisions taking too long to be made, or when an opportunity is not recognized until it is too late. It is about the possibility of "positive" things not happening or taking place.

Uncertainty Risk

This is when the potential is not realized. For example when forecasts and budgets are not met in reality.

All of these should be used to identify the risks.

There are Five Key Functions that the Board needs to agree on when assessing risks.

- The Board needs to agree on three or four critical risks that the organization is facing. Solutions to the risk and solutions to managing the risk need to be identified and documented and then management needs to be monitored to ensure that the risks are in fact being managed.

- The Risk Management Policy must be approved by the Board and must also be monitored by the Board.

- In order to ensure that attention is always focused on the Risks, KPIs (key performance indicators) for the CEO (Chief Executive Officer) should be established.

- The issues around risk should be discussed at all strategy meetings and certainly at all the Board meetings, so it must be included on the agenda.

- A SWOR (strengths, weaknesses, opportunities, and risks) analysis should be conducted for strategic planning purposes.

Next time we will have a look at some of the specific risks that many organizations have.

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

Business Tips – Time is Money

 Business Tips – Time is Money

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

I know that I seem to be harping on about this, but it has become a serious issue in my life.  After making my decision the other day, I am pleased to announce that I managed to get to my x and y yesterday, but not my z.  However, I have billed ‘extra’ for the client crisis that could have been avoided had the client, firstly, listened to what I told them to do in the first place, and secondly. had the client reacted sooner to the problem instead of waiting until the last possible moment.  It felt really good to empower myself in this way.  Today, however, has been an altogether different story!

Today, despite being up and at it since 02.15 (I am an insomniac remember), it is now 13.23pm and I am only getting to write this article now – it is usually done by at least 08.00am!  What have I done for the day – well the z of yesterday was extremely urgent so that has been done, but the a, b, and c for today have not even been looked at.  I have done some admin, sent out several e-mails that had to go out, looked at the e-mails that have come in and prioritized them and dealt with what needed to be dealt with, made the calls that I was supposed to, and received a bunch more that I then had to deal with.  So once again I have been running around – clearly "intent" is not enough I now have to get down and tackle the nitty-gritty.

What I have realized though is that my time and focus are constantly being interrupted by phone calls, people arriving without prior appointments, urgent e-mails, and the like.  For many of these, I am not charging and the question now is – why not!

The first thing that I have to ascertain is – how much is my time actually worth and clearly this cannot be a ‘thumb suck’ type of question.

Now the ‘how to’ go about this needs a little more attention – firstly, from tomorrow I am going to write down every little thing that I do and the time that it takes me to do it (oh dear, this is going to be interesting).  Not only do I have to write this down, but it also needs to be allocated to one of four different headings which will show me exactly how much time I spend on doing client work, how much is spent on Networking and building relationships, how much is spent on administration and how much is spent as personal time (again this is going to be really interesting).  I am going to do this for a period of at least a month so that I have monitored every single aspect of the kind of work that I do.  Once this is established I will be able to work out exactly what my time is worth and can start charging appropriately.

In this way, I will be able to start charging people appropriately for the work that I do for them and I am also quite sure that it will enable me to get rid of the people who waste my time because of course they will also be charged.

In all probability I am going to get the shock of my life when I see just how much time I spend on others without charging them – like I said, this is going to be an interesting exercise!

Now, where did I put my notebook – actually there is no better time to start than the present because after all, my time is one of my most precious commodities, simply because it is so scarce.

Yip – an interesting time indeed!

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 

Inspiration – Motivation and Inspiration

Inspiration – Motivation and Inspiration

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

This week’s quote comes from S’thandiwe Kgoroge who says; “It’s good to be inspired by other people, but strive for excellence at your own pace.”

So many times, we try and keep up with the people who originally inspired us, or the people that we look up to.  Then when we are not able to do so, we sink to our knees in despair and beat ourselves up because we have failed!

Why?

Why do we feel the need to do things at the same speed or in the same time frame as everyone else?  Are we not unique individuals who should be walking through life to the beat of our own drums?

Surely it would be better for us (and probably less stressful for those we are trying to emulate) to set our own goals and arrive at our own destination in our own time, having now experienced the lessons along the way that we were intended to learn?

Don’t always be in such a hurry!  Take time to enjoy the journey!  Take time to understand the lessons and therefore to learn from them!  Take time to enjoy your life.  Take time to be ‘all that you can be’.

Take time to be you.

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

 

HR 101 – What to do When . . . . There’s a discrepancy on the Job Description – Part 1

 HR 101 – What to do When . . . . There’s a discrepancy on the Job Description – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations & Best Practice Requirements.

How many times has one of your staff members moaned about something that you have asked them to do, by saying “it’s not on my job description”?  I’m sure most of you can relate to this one, hell I’ve used it myself from time to time!

Let’s start at the very beginning – What is a Job Description?  Many of the VSE (Very Small Enterprises) that I have worked with and in since I started my business seem to think that it is the description of what the employee does.  Wrong, wrong, and wrong again!  It is the description of the task that is performed.  You see in some of the bigger Corporations, for example, the Switchboard Operator is just that – a Switchboard Operator.  In this case, their duties would revolve only around what a Switchboard Operator does – answering of calls, determining who a call should be put through to, and perhaps even taking messages.  In a small concern though, where people are many things, one of the duties of a person may be that of a Switchboard Operator.  The Job Description remains the same, but the duties differ! 

Let me be a little clearer on this.  In a small concern, there may be one employee who does many jobs or functions.  They may be the Switchboard Operator, the Receptionist, the Admin Clerk, and the ‘walk-in’ Salesperson.  In this instance, they would have four job descriptions as opposed to one, because they would perform the duties pertaining to four different jobs.

So in the big Corporate instance – the duties listed on the Letter of Appointment, would be listed as something like “Switchboard Operator and all duties pertaining to this position as laid down in the Job Description . . .” whilst in the small concern – the duties listed on the Letter of Appointment, would be listed something like “Switchboard Operator, Receptionist, Administration Clerk, and Sales Person and all duties pertaining to these positions as laid down in their respective job descriptions . . .”

In the big Corporate’s you could have many people using one Job Description – for example you would only have one Job Description for a ‘Sales Person’, yet you have a sales force of several thousand employees.  In the VSE you may have many Job Descriptions, but only a few people to perform the tasks or duties that pertain to those Job Descriptions.

Next week we will have a look at what could happen if extra duties are given to staff and the consequences thereof.

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

VAT 101 – Some of the Requirements – Part 2

 

VAT 101  – Some of the Requirements – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African VAT (Value Added Tax) and Best Practice requirements.

Last time we looked at a number of expenses that most people think they cannot claim on.  Here are some more.

If you hire a car for business purposes, then you are entitled to claim the VAT on the insurance that you are required to take out on the vehicle.  Be sure to get an invoice that lists the insurance, or itemizes it separately, this will make it much easier for record-keeping purposes.

Should one of your staff fall ill at work or get hurt in an accident whilst they are at work and the medical expenses are paid by the company, the VAT on these medical bills can also be claimed back.

Parking fees – now here is one of my favorites.  Do you know how much we spend on parking in the malls and in office park complexes – it’s frightening!  Parking fees, particularly fees that are paid, while working, that have VAT charged on them (in other words Tax Invoice should appear, somewhere on the receipt, and yes you have to have a receipt to claim the VAT back), can be claimed back.      Most malls

have those ‘pay machines’ that actually give out receipts – be sure to request and submit those receipts.  Obviously, monies that are paid out to the ‘car guards’ cannot have the VAT claimed for, but you can, of course, claim them as a business expense as long as they are “reasonable” and it is always better to be able to substantiate them.  I use my diary as a guide when I paid the car guards.

When you send wreaths or flowers to staff or customers who have had a death or bereavement in their families, you can claim the VAT back.  

In terms of postage stamps and postage,  the VAT portion of this too can be claimed back provided of course that the postage is being used for business purposes.

Artwork, in the form of carpets or paintings and pictures or even plants, can have the VAT claimed for, provided of course that they were actually purchased for the office.  Here’s the thing though – they have to physically be in the office.  Understand that if they are not in the office and the VAT man comes to visit, you could be in the deep brown smelly stuff.

Remember, if you’re not sure whether you can claim the VAT back on anything give SARS a call and ask the question.  Always get the name of the person you spoke to and keep a record of what you asked and the response as well as the date and time of the query.

Next time we will look at a different topic.

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 

Leadership 101 - The Role and Responsibility of Directors – Part 1

 Leadership 101 - The Role and Responsibility of Directors – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Legislation, the King Requirements, and Best Practice.

 

There is a great deal of eye winking and chuckling from the “Gogos” (one of the local native names for Grandmother), around the term CEO (Chief Executive Officer), or even Director, here in South Africa.  It seems that everybody that you talk to is either a self- named, self-styled CEO or they aspire to be one!

The fact of the matter is that with the New Companies Act coming into effect, the whole landscape, in terms of business ownership has changed dramatically.

In the good old, bad old days anyone could be a Director of a company and in fact, there were many individuals who made careers out of being Directors of Companies.  I have actually heard of a lady who was a Director of something like 37 different Companies.  She earned a considerable sum of money from each of the Companies for doing very little work, but she had her name on the Company Letterheads.  Other than attending meetings and perhaps voicing an opinion or two there was little to do and of course, there was very little responsibility.

You see before the introduction of the New Company’s Act, responsibility was only really held by very few individuals.  Directors like the Financial Directors were obviously responsible for looking after the financial side of the business, were not only responsible for the financial aspect of the business but were usually accountable for the failure of the business too.  The Sales Director, for example, was responsible for ensuring that sales targets were met (often by any means possible) but never carried the responsibility for the financial well-being of the Company.

Let me explain – often when a Company found themselves in financial difficulty the Financial Director was made responsible because it was his responsibility to ensure that the ‘numbers’ were correct and that expenses were controlled.  In this situation, the Sales Directors would usually absolve themselves from any blame by saying something along the lines of “I brought in the sales and that is what I am responsible for, I am not in charge of the expenses.”  Hardly fair I am sure you will agree as in my experience the salespeople have no problem running up huge expenses.

The New Act makes all Directors equally liable and accountable for what happens in the business.

Let me say that again – all the Directors are equally and jointly responsible for what happens in the Company and they are responsible in their personal capacities.

As I am sure you can understand, this is a huge subject and therefore there are 16 parts in total to this particular series, so ‘buckle up Buttercup’ and let’s enjoy the ride.

Next time we will look at some of the risks that Directors should be aware of and also how best to manage them.

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

Business Tips - Leveraging Off Your Customer Capital

 Business Tips - Leveraging Off Your Customer Capital

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

Everywhere I go these days, be it to Networking meetings like Business Engage or onto Facebook or LinkedIn or any of the many other sites that I contribute to, I hear the same story over and over again.  The story of “I have this brilliant concept, but I need funding – where can I go for funding?”  Sounds familiar, doesn’t it?

So why is it so difficult to raise the funding for your brilliant new business/concept/idea/product/service (insert whatever you like here)?  Well apart from the fact that you probably haven’t done your research properly or perhaps you haven’t done a Business Plan and often you don’t have any collateral, one of the biggest things is that you are trying to raise capital for your business before you have any paying customers!  Actually, it is as simple as that.

The reality of the situation is that investors won’t be interested in your business or your ideas until such time as you can show them that you have got clients who are willing to buy and pay for whatever it is that you are trying to sell – until you have buying customers in place all you have is an idea or a dream and investors are in the business of business, not pipe dreams.

Think about it logically for a moment and without emotion – you can theorize and pontificate to your hearts content about whether your idea/concept/product/service (insert whatever you like here) will make you the next billionaire in 5 seconds flat, you can do the sums on a piece of paper evidencing what could happen when it sells, the bottom line is that it is still a dream and it is still only a bunch of numbers on paper.  But when the first customer buys whatever it is that you are selling and then the next one buys and the next – nobody can argue with that – because sales are facts and facts are what the investors want to see.  Sales fact will give you leverage when you are looking for funding.

Every Rand that your business earns from your customers is worth its weight in gold because it demonstrates the fact that people are prepared to pay for whatever it is that you are selling and this makes it less of a risk to the investor and tells them that you are serious about your business and that you are in the business of business to make money.

Facts, not dreams are what investors are looking for, so find some paying clients before you start looking for the funding, it really will make your life a whole lot easier.

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 

Inspiration - Life

 

Inspiration - Life

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Today’s quote comes from Oprah Winfrey who says “If you look at what you have in life – you’ll always have more.  If you look at what you don’t have in life – you’ll never have enough!”

Ain’t that the truth!  Think about it for the moment – all the people (and I am pretty sure that you have them in your life too) that continuously moan and groan, all day long and day in and day out because they ‘don’t’ or they ‘can’t’! This moaning and groan is not only in their personal lives but also in their business lives too.

They are forever crying about “I can’t make a living because of the Government, taxes, the VAT man, the red tape, the competition, the interest rates, the recession, the crime, the virus” man oh man, I could go on and on – pretty much like they do!  I’d like to bet that even if the Government gave them everything that they needed if they had preferential tax breaks or the VAT man actually paid them to be VAT vendors (which he does just by the way), if there was no red tape, or if the competition went out of business, the interest rates came down, the economy was booming and there was no crime – they would still be finding something to moan about because they still would not be making a living!

It’s their attitudes that stinks!  If they changed their attitudes they would be changing their mindsets too and they would see all the opportunities that abound everywhere.

The problem with people like this is that they expect everything to just happen to them, instead of making things happen for themselves.  

Opportunities, like most things in life, need some sort of action.  It’s no good just seeing the opportunity – it’s not going to fall like manna from heaven, into our laps and the miraculously morph itself into something else, just for our benefit – we have to play our part and do something about it!  We have to not only recognize the opportunity, but we also have to grab it and do something with it.

So the next time you hear someone moaning and groaning about all the things that they don’t have, get up off your rear ends and go and make something happen in your life so that you don’t become complacent and become just like them. Celebrate what you have and turn the dreams that you have of what you want into reality.

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

HR 101 – What to do When . . . Staff are Negligent in the Performance of their Duties - Part 6

 HR 101 – What to do When . . .  Staff are Negligent in the Performance of their Duties - PART 6

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements.

So here we are at the very end.  Mike the business owner has had his say, George the security guard has had his say and the Commissioner at the CCMA has had his say.

The bottom line is that Mike has to re-employ George and also has to fork out a bunch of money for dismissing George in the first place, even though the Commissioner agrees that George was, in fact, wrong for not complying with laid down procedures.

So now it is time for me to have my say.

Yes, I agree that George’s misconduct deserved a disciplinary.  Yes, I agree that ultimately George should have been dismissed!  

Yes, I agree that Mike was in a terrible situation, with serious losses occurring, and yes I agree that Mike was well within his rights to have the surveillance equipment installed and monitored.

George’s claim that he had not been trained properly, is as far as I am concerned a load of rubbish – surely after 14 years he should have known what it is that he was doing.  There is also documentary evidence that he was in fact trained – Mike has his signature to prove that.

George’s claim that he was transferred against his will is also a load of nonsense, there is no evidence to substantiate this claim.

My knee-jerk reaction would be that Mike did everything correctly and the decision should have been in his favour.

That said and given time to reflect without any emotion, my mind has been changed.  In terms of the law, Mike should have held the disciplinary and given George a Final Written warning as well as more documented training.  The situation should then have been monitored some more and had George slipped up even once, another disciplinary should have taken place, at which time George should have been dismissed.

This would have shown that Mike had taken steps to correct the matter rather than just get rid of George.  The CCMA outcome would also have been very different in my opinion.

The lesson that should be learned here is always use caution.  Make sure that every avenue has been covered.  Make sure that you have been ‘seen’ to try and remedy before you just dismiss. Make sure that you get legal assistance because much of the law is open to interpretation.

Next time we will tackle a new subject.

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

Leadership 101 – 9 Tips to Becoming a Great Leader – Part 2

 Leadership 101 – 9 Tips to Becoming a Great Leader – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Last time we looked at four tips and today we will look at another five.  These are the ones that sometimes can weigh heavily on our shoulders.

1. Underperformers Are Your Responsibility

You have to understand that as the leader, the buck stops with you!  If you have the wrong team in place or individuals that do not fit and who cause more chaos than anything else – it is your responsibility.

You are the one that needs to control the situation and the reality is that you have set things up the way that you want them to be.  If they are not working properly then it is up to you to make the changes.

It’s no good blaming everyone else.  Be accountable and responsible for what you have or haven’t done.

2. Slow and steady wins the race

No one builds a huge big anything overnight! Not the Branson’s nor the Buffet’s nor anyone else for that matter!

Start off slowly with small projects. Test along the way, over and over again, measuring and adjusting as you go along.  Make sure that you have the right skills to get the task done and that your team is as committed and focused as you are.

As your smaller projects are completed successfully, learn from both what you have done correctly and what you haven’t, and then apply what you have learned as you progress.

Retain what you have learned from the mistakes that you have made and then let the negative stuff go. There’s no need to carry unwanted baggage for the rest of your life.

3. Look at a person’s character

There are many people out there who are hugely skilled and talented but who are of questionable character.

Make sure that the members of your team have the character and drive to meet the capacity requirements.

More often than not the character of one individual will be far more beneficial to you than the qualifications of another.

Choose carefully, choose wisely!

4. Ask the question

Dr. John Demartini always says “The quality of your life is governed by the quality of your questions?”

One of the most powerful questions that you can ask your team members is “what would you do” or “what do you think”?

You will often be pleasantly surprised and amazed at the innovative ideas and thoughts of others around you.

People often don’t “do” things that they feel are expected of them in the manner in which they think it should be done rather than the way they would instinctively do it if they had the choice.  So don’t be blinded by what they do, but rather explore how ‘they think’!

Oh, and if you utilize their great ideas, don’t forget to give them the accolades and praise that they so richly deserve.

5. There’s a great deal of strength in being humble.  

You need only to look at the greatest leader that we’ve ever had, Nelson Mandela, to see how powerful his authentic humbleness was.

The man certainly led us all, by living his life as an example.

The reality is that none of us like a ‘know it all’.  Their arrogance is a constant source of irritation and frustration for me personally.  People who strive to better themselves through constant learning will excel and those who live their lives as humble individuals will be far more respected than those who are arrogant and who are governed by their own egos.

Humble is always way better than arrogance.

Well, that was the last of the nine points that I consider to be important attributes for a leader.  There is obviously a great deal more and this clearly is merely my opinion and I have no doubt that there are others who will have attributes that they consider to be more important.

I think that as individuals we need to learn what we can and then make up our own minds as to which we find more important.

Until next time, don’t forget to have fun!

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

Business Tips – It’s a Sign of the Times

 Business Tips – It’s a Sign of the Times

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

As Business Owners and Entrepreneurs, we all need to look for new opportunities – if the 2008 ‘so-called’ recession did not teach you this and if you are still in business, then I am really surprised.  If our current pandemic has not taught you this, then I am even more surprised. We have all had to ‘pivot’ and find different ways to do business. We all need to find the ‘edge’ over our competitors.  We all need to do things differently.  We all need to ‘think out of the box’ (well those who still live in a box need to – that’s for sure).  We all need to look at doing things differently or finding new ways in which to ‘work it’.

I have, for several years now been using my blog as a marketing tool and quite honestly it has worked fantastically for me.  Early in 2009 I started using Twitter – just playing around with it, ‘tweeting’ and having fun – it was, quite frankly addictive!  I had to limit the amount of time that I sat playing on it.  It opened up a huge new world for me.  I found interesting articles that I would never have even dreamed of ‘googling’ for and it put me in touch with people that I would never have ordinarily met.  It actually made me look at life in an altogether different way – a great way.  Slowly, but surely I have started building relationships with these people – virtual relationships.  Will I even meet them in person, who knows!  What I do know though is that there are some of them that I follow religiously because I enjoy the type of information that they hook me into.  I like the way that they think and I also like the way that they share.

I have also been on Facebook for a number of years now – I never looked at it other than in an absolutely ‘social’ type of way and it has been great to catch up with friends, all over the world that I had lost contact with.  What’s also great is that thanks to my web designer Meryl Rosenberg of Pixel Magic, I now also have my own ‘page’ on Facebook, which means that I can set up events, such as my workshops and as a result of that I now also have connected with other people all over the world.  Complete strangers, who I interact with on a daily basis.

Then there is LinkedIn, and I must say that I have been diligently using it more and more’, over the last couple of years and have now connected to over 30 000 people from all over the world.  Again, I have to be careful of how much time I spend on it on a daily basis, because it too is addictive and I am slowly but surely connecting in a more meaningful way, one person at a time, every day.

Now here’s the thing, I have started using Twitter, Facebook, and LinkedIn to link to my website and thereby to my blog articles and the response has been absolutely fantastic.  On Twitter, the number of people who want to follow me has increased quite dramatically – clearly, there are people out there that want to read or hear what I have to say.  The number of hits to my website has increased, more than tripling and in the space of 5 months, I had more visitors to my website than I have had from the day that the website was launched to the end of September 2008.  How absolutely cool is that?  

The average time spent, by visitors, at the moment is around 5 ½ minutes and I am told that that is really good and it is because my website is so ‘content-rich’.  Apart from that, I got my first ‘twitter’ client in January 2010 and that makes the whole deal the sweeter!

Then there is LinkedIn, and I must say that I have been diligently using it more and more, over the last couple of years and have now connected to over 30 000 people from all over the world.  Again, I have to be careful of how much time I spend on it on a daily basis, because it too is addictive and I am slowly but surely connecting in a more meaningful way, one person at a time, every day.

Will I stop using traditional methods of Networking – not at all, but what it does do is show me that ‘new’ is not always bad and even if I don’t really understand the technical aspects of what it is that I am doing, I need to move with the times.

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 

Inspiration – Lessons in Life

 Inspiration – Lessons in Life

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

The quote today comes from William Golding who says:

 “Consider a man riding a bicycle. Whoever he is, we can say three things about him. We know he got on the bicycle and started to move. We know that at some point he will stop and get off. Most important of all, we know that if at any point between the beginning and the end of his journey he stops moving and does not get off the bicycle he will fall off it. That is a metaphor for the journey through the life of any living thing, and I think of any society of living things.”

This for me rings true, both from a personal and business perspective.

Imagine, if you will – in your business, just going about things in the same way as when you started.  In my opinion, at some point, everything will just stop moving.  You need to constantly strive to do things better, to improve your service to your clients, to get new clients, to get new products or services.

I am reminded of this by one of my recent clients.  The family business, let’s call it Joe Blog’s Inc., started in 1967, by his father.  In its heyday they had 24 members of staff and a production line that worked very well, selling widgets.  They started off with just the father and his dream and he worked at it, adding new products and different lines and it grew and grew until about 10 years ago when everything seemed to go somewhat pear-shaped.

You see the father became ill and went into semi-retirement, and his son took over the business.  Now the son is an Entrepreneur of note.  He has wonderful ideas but has no plan on how to implement things.  So even while all the ideas are whizzing around in his head, he tries to carry on with “Business as usual”.  The problem is that the area where the factory is positioned, has deteriorated, shops have moved into the malls that have sprung up everywhere you look in Gauteng, and of course, the business has started to slow down.

The son panicked and increased production, but soon – with very few good sales taking place, he has had to start downsizing and eventually is reduced to himself and two staff members.  The premises were allowed to deteriorate and pretty soon, he was making just enough money to ‘tick-over’.

Then he met me and I did an assessment on his business.  The administrative side of the business is in a mess, so we put together a plan to sort it out.  “Spring cleaning” is the first order of the day and the premises were cleaned from top to toe and with a fresh coat of paint, clean windows, and new curtains – the place already looked and felt different and I could see how this small change has actually made a difference to him.

We got all the administration sorted out and then started on a marketing campaign.  His ideas were all recorded (although he never did anything with them before). They were all prioritized and we bring in one new product every two months.  We left ‘adverts’ at all of the Unemployment Offices around town and pretty soon we had a small compliment of work staff, who purchased stock from him for re-sale into the townships.    He now had to increase his production staff and he was back up to five people in the factory.

He now has goals, he has direction and his life has purpose again. He is moving forward, constantly changing, constantly seeking, constantly riding his bicycle, and remaining upright!

Now I get a call once a month or so – to tell me how he is doing.  What he has achieved and what his goals for the following month are.  All he needed was to understand that the bicycle needed to be kept in motion, preferably a forward motion in order for it to stay balanced and upright.

What are you doing on your bicycle?  Are you riding it towards something, are you going round in circles, have you planned your journey?

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

HR 101 – What to do When . . . Staff are Negligent in the Performance of their Duties – Part 5

HR 101 – What to do When . . . Staff are Negligent in the Performance of their Duties – Part 5

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations & Best Practice requirements.

So here we are, still at the CCMA arbitration and now awaiting the verdict of the Commissioner. 

Based on the evidence that was presented at the CCMA Arbitration hearing, the Commissioner rejected both claims made by George.  You will remember that George stated that he had not received any training in relation to the search procedures and that he actually objected to his being transferred to this particular post.

The Commissioner said that he agreed with Mike’s rule that the searches should be conducted in a certain and specific way and he said that he thought that this was a valid way in which to perform this task.  He approved of this particular rule.  The Commissioner also said that he agreed that George had failed in his duty has he had not obeyed the rule.  A problem arises later on though, when the Commissioner decides that George only contravened the rule as a mistake – in other words it was unintentional.  George did not intentionally fail to adhere to laid down procedures – George made a mistake!  But I digress and get ahead of myself – let’s return to the story where it is now.

The Commissioner also took into account Section 188(2) of the Labour Relations Act which states “when a person is considering whether the reason for dismissal is a fair reason, he must take into account the Code of Good Practice – Dismissal.”

Next time we will get the final episode on this particular saga.

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

 

 VAT 101  – Some of the Requirements – Part 1 

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South Africa VAT (Value Added Tax) and Best Practice requirements.

“Who here loves the VAT man?”  That is a question that I ask on a regular basis.  Sadly though, more often than not, mine is the only hand that goes up.  It is definitely a mindset that needs to be changed if we are to make the best use of the concessions that SARS (South African Revenue Services) gives us.

That said, here are a few tips in terms of what must be done regarding the VAT requirements.  

Obviously – number one on the list is that you have to be a registered VAT vendor in order for any of this to apply to you and if your turnover is a million or more per annum, then being a VAT vendor is compulsory.  You can, however, apply to become a ‘voluntary’ VAT vendor.

VAT has to be charged at the current rate which is 15% and of course, you have to make use of a valid ‘Tax Invoice’ and this has to be kept in terms of the correct retention period as promulgated by law.  That means that your documents must be archived and retained.

VAT must be charged for all services or products supplied by the vendor.  These services or products must be wholly or partly used for consumption in the course of making supplies or supplying a service that is taxable.  That means of course that if you buy a potato (as a basic foodstuff this does not attract VAT which means you cannot offset it), to make chips or mash or even a roast potato dish for your restaurant, you used the potato (but changed it in the cooking process) into your product and your product does now attracts VAT.

Going out for a meal with clients is called ‘entertainment’ and as such, you can claim it as a business expense, but you cannot claim the VAT on it, unless . . . 

If you or one of your staff are going out for a meal with a client and you (they) are out of town for longer than one night, you can claim the VAT back on this.  In fact, any meals taken by you and your staff, including alcohol, whilst you are out of town on business for a period longer than one night can have the VAT claimed for.

Normally, you cannot claim VAT for ‘office refreshments’, however, if you purchase refreshments for the delegates that you are training, then you can claim VAT on those refreshments.

As usual, it is about what you know and how you use it that will allow you to make the most of your relationship with SARS.  Next week we will have a look at a few more expenses that you can, in fact, claim the VAT back on.

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 

Leadership Tips – 9 Tips to Becoming a Great Leader – Part 1

Leadership Tips – 9 Tips to Becoming a Great Leader – Part 1

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd 

Much has been debated and discussed about leadership and in view of the fact that it is common knowledge that economies rest on the shoulders of Entrepreneurs, it stands to reason that at some point, as business owners, Entrepreneurs will have to lead in order to get the task completed.  So here is my take on some of the things that need to be in place in order for that leadership to be great.

1. Admit that you are a Leader

This is especially true as a start-up or SMME or an Entrepreneur.  The reality is that it is your brainchild, your baby and you know how you want things to happen, so you need to (wo)man up and take the lead.

Have discussions and brainstorm by all means, but at the end of the day you are the one that is accountable and responsible so you are ultimately the one who should be making the final decision.

2. Clarity is Key

Before you can guide or direct or lead anyone anywhere, you have to be clear on what it is that you want to achieve. One of my favorite mantras is “If cash is King, then clarity must be Queen!” If you don’t know where you want to go, how on earth are you going to get there? So defining your vision and intentions is of the utmost importance.

Questions such as ‘who is the target market’ and ‘what is the value to the clients’ need to be asked and answered by yourself before you get going.

Questions such as ‘how are we going to get there’ and ‘what is the process’ can be brainstormed later, although it would be a good idea to have some thoughts around this too.

3. Communication

Clear communications between Leaders and subordinates is extremely important. If you cannot communicate your intentions or explain the reason behind the action, your employees are going to be floundering. Again . . .  clarity is of vital importance.

You have to help people interpret what you are saying correctly so that they understand what it is that you want them to do.  Failure to get clarity here will result in skewered perceptions and unmet expectations!  Not a good place to be at all!

4. Be Direct

Don’t pussyfoot about!  Say what you mean and mean what you say.  Listen carefully to what is being said around you and to you and then be direct about what you see and hear or your understanding of what is being said. If you’re not sure, ask the question.  My take on this is that the ‘only stupid question that there is, is the one that you do not ask.” Don’t be afraid to ask the question if you are not 100% clear on what is being said.

I always say that the 4 most dangerous words in the dictionary are:- perception, expectation, assumption, and interpretation because they seldom meet reality. So make sure that everyone understands what is needed. One way to do this is to get them to explain back to you, what it is that they think you meant.

Don’t forget though that you need to be quiet in order to listen and you need to listen carefully if you are to understand the communication and it’s only in the understanding that an informed decision can be made.

Next time we will have a look at some of the other tips around Leadership.

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

Business Tips - Improving Your Business Website

 Business Tips - Improving Your Business Website

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Before we go any further, and before all who know me fall about with laughter – I am a bit of (hell let’s be honest – a helleva)  technophobe.  So what I am putting down here is what I have found on the web (a little common sense and logic) and because, no matter what I tell you or write here, my web is looked after by Meryl of Pixelmagic (http://www.pixelmagic.co.za), so no matter how much I ‘break stuff’ she assures me she can fix it!  How cool is that?  Anyway, back to the subject at hand.  The bottom line of course, is that if you are going to try these things yourself, it’s a good idea for you to have a “Meryl” of your own, or I am quite happy to share mine with you.

Here goes!

It really does not matter if you use your website for fun, family connections (when your family is scattered to the four corners of the world, like mine is) or for Business purposes, the fact is that around 70% of Businesses have websites.  No wonder we are spoilt for choice!  The problem however is that the majority (some home made and even some that have been professionally done) are really crappy!

The reality is that even the really crappy ones are competing in the market and trying to sell their products  or services – how scary is that!

So – let’s have a look at what the internet says are the top 10 tips for improving your Business Website.

1. You have to have a plan!

As is most things in life, if you don’t have a plan, you have exactly . . . nothing!  Write it down – what is the purpose of your website, what do you hope to achieve.  Write down your goals, short term, medium term, long term and then brainstorm them – how are you going to achieve them.  What do you need to do in order to fulfill them.  Be realistic, we all have budgets.  Match your immediate goals to your wallet – you’ll be surprised at what you can achieve!

2. Measure.

Again – if you can’t measure it you have a problem.  How would you know if your website is being effective, or if you are just wasting your time, money and effort.  You need to measure, how many people visit your website, how many sales result from your website, how many connections are made out of your website?  Is enough traffic being driven to the website and how can you improve on these numbers?

3. Promote yourself?

I keep saying – if you don’t tell people who you are, how will they know?  So, use your website.  Keep your customers updated on what is happening in your life – actually they are interested.  Tell them about your successes, post your testimonials, tell them what plans are in the pipeline (they may want to partner up with you).  Now is not the time to hide your light under the bushel – now is the time to let it shine out brightly!

4. Branding

Remember your brand will always be associated with you – so make sure that it is special! Your brand, logo and by line should be unique to you and your product or service. It has to stand out to the world and especially your target market.  Keep it simple though – complicated branding looks messy and cluttered on a website.

5. Content

You are the expert on what it is that you do – aren’t you?  So write down what it is that you do, give out tips or teasers.  Keep your content updated and interesting.  Like it or not, we are all looking for information (yes even in this world of information overload) – make sure your information is new, fresh and current – it will keep people coming to your site on a regular basis.

6. Navigation

This is one of my pet hates – getting myself lost on a website or having to ‘go back’ all of the time to get myself to the home page or where-ever it is that I want to go, is really just a pain in the rear end.  Let me tell you from experience – the easier it is for me to get around your site the longer I will stay and browse.  So keep it simple.

7. Sales

Statistics tell us that Product or Services sold over the internet increased by 100% between 2002 and 2005.  How fabulous is that?  This means that your website should make it easy for your clients to purchase what they want/need/desire online.

8. Database

Your database on your website should not only have all your business and personal contacts on it, but it should surpass anything that you may have in your ‘little black book’ or your customer base.  This is because as people visit your website, they should be encouraged to leave their contact details behind.  This gives you a huge opportunity to entice them to spend some money with you by sending out regular communications to them, in the form of newsletters, specials and useful tips and information.

9. Promotion

Make sure that everybody gets to know about your website.  Put the address on every single piece of literature that you have, your Business Cards, your Letter Heads, in the signature on your e-mail – everywhere!

And finally

10. Overloading your website

It is said that often ‘less is more’ – keep everything short, simple and to the point.  Don’t waffle on and on about something.  Say what you have to and then move forward.

Now – let’s have a look at an additional 3 tips as recommended by Meryl.  Meryl says:

a. Know what you want your website to do for you

Yes, generate more income, but how?  Do you want to be talking about your past successes and showing testimonials from other clients?  Do you want your site pointed towards getting the visitor to contact you?

b. Know what you want your website to ‘feel’ like

The ‘feel’ of a website selling kids’ toys is going to be very different from one selling financial services to big corporates.  Draw up a list of 20 or so emotive words that describe the tone of your site: fun, funky, young, colourful or corporate, serious trustworthy etc.

c. Copywrite

Also, asking your designer to get you a good copywriter is a very valuable option.  Copywriters ensure that Search Engines love reading your site as much as humans do, as well as getting the feel you’ve chosen to carry across into the words!

Oh, and a – don’t have a look at my website just yet – Meryl and I will be doing some changes right now!

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 

Inspiration – It’s not the What, It’s the Who

 Inspiration – It’s not the What, It’s the Who

By Nikki Viljoen of  Viljoen Consulting (Pty) Ltd

It is said that “It’s not what you have, but WHO you have in your life that counts the most.”

Whilst on some level I agree whole heartedly with that statement, I would like to take it one step further and say that ‘It’s not only WHO you have in your life, but also who they have in their lives, that will count the most in yours’.

I have watched this in play over and over and over again – people sitting around a table chatting about this and that and suddenly a single comment is made and everybody interacts with everybody else in terms of somebody who knows somebody who can assist.  It’s wonderful to watch this when it happens.

You see most people instinctively want to help others and sometimes this is the only way that they know how.

So I consider myself truly blessed, because I know a great many people, who know a great many people, and when I need help and assistance all I have to do is ask!

Never be afraid to ask for help!  We are not alone in this world. We are not an island. Whilst it is our responsibility to “serve”, it is also our gift to receive.

Receive the gift with grace and then ‘pay it forward.’

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

HR 101 – What to do When . . . Staff are Negligent in the Performance of their Duties - Part 4

 HR 101 – What to do When . . . Staff are Negligent in the Performance of their Duties - Part 4

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Labour Relations and Best Practice requirements. 

At the CCMA, it is now an arbitration hearing and remember – all the evidence has to be presented by both Mike and George, all over again.

One of Mike’s witnesses (who in fact was George’s supervisor – let's call him Andrew) was very clear on the fact that George had in fact been trained and George was well aware of how to conduct the searches on staff.  Andrew also stated that George had been posted to his particular position to conduct the searches and that is what George’s specific function was.  Having said all of the above, Andrew did say that under normal circumstances – this function would have been carried out by someone who was more senior than George.

Although the function of searching staff, would normally be carried out by someone more senior than George, Andrew stated that the reason George had been posted to this particular position was because of the length of time he had worked in the security services division, which was the Security Division of all of Mike’s businesses.  George, of course, had been with the company for about 14 years. This of course, meant that George had the most experience in the security arena of the company, and it was for this reason that George had been chosen for this post.

One of the senior managers in the store (let’s call him Simon) stated that the reason that the video surveillance equipment had been installed at the exit was because of the large losses that the store was experiencing.  Video surveillance had always been in the actual store itself and it had been ascertained that very little of the shrinkage was due to theft from the public.  Therefore it was assumed that the staff were stealing, hence the need for the staff to be correctly searched.  Simon stated that the company could be held responsible if searches were not conducted correctly as staff could bring about various charges, against the company.

It was noted at this point that the stores' losses were around the R500 000 per annum mark.

George, at this point, claimed that he had not received any training at all, in terms of the correct procedures on how to search the staff and that furthermore, he had objected to being posted to this particular position being the Staff  Exit Section. 

Next time we will continue with what the Commissioner at Arbitration had to say.

 

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

VAT 101 - VAT on Fuel

 VAT 101 - VAT on Fuel

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African VAT (Value Added Tax) and Best Practice requirements.

We all know (well I hope we do) that we cannot claim VAT on the fuel that we use.

So how do we handle VAT and fuel levies? How do we claim back all that we can without falling foul of the law?

Let’s call in the protagonists.

Mike owns a transport company that collects fresh produce from all over the country and delivers it to the various branches of his clients, again all over the country.

With the various increases in fuel that we as South Africans have experienced over the last two years and Mike has been forced to introduce a fuel levy to his delivery charges on all of his deliveries.  Mike being an honorable man ensures that if the fuel price decreases, so do his levies, so the levy therefore fluctuates from month to month.

According to the law, Mike meets the minimum requirements and he is a registered VAT vendor.  Mike has to charge VAT.

The ‘fuel levy’ is not zero-rated.  It is a charge that Mike levies in respect of the service that he supplies and it is therefore not exempt.

You see Mike is not supplying fuel to his clients, he is supplying a service – the fuel levy now becomes a part of the services that Mike provides, much the same as the cost of maintenance of the vehicles is factored into Mike’s costs and therefore Mike is quite entitled to charge VAT on the fuel levy.

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

Networking 101 - The Art of Conversation

 Networking 101 - The Art of Conversation

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

After one hundred and seventy articles on how to Network, I am getting to the point where it is becoming difficult for me to think about how to say things differently and I am beginning to dread the weekly post.  That’s just not too good at all, I am sure you will agree.  So I have decided that this will be the last Networking article for a while.  Don’t fret though, it does not mean that I will never give any more advice about Networking, but rather that I am taking a bit of a vacation from writing about Networking.

So now, onto the last tip on Networking in this series.

I think that it’s appropriate to push the buttons a little and talk about the ‘art of conversation’.

At so many Networking meetings that I have attended, there is always the person who hogs the conversation and who drones on and on about how fabulous they are and how wonderful they are.  You know the type I am sure.  It’s the person who, no matter what you’ve done or you’ve  accomplished or where you’ve gone and what you’ve seen, they have done it all and what’s more – they have done it better and faster and. . . .  ja – we are all well versed with this type of individual.

It’s one of the quickest ways to empty a room though and to be quite honest, I no longer even entertain these individuals, I have been known to just walk away mid-sentence!

Sure it’s great to keep the conversation flowing, sure it’s great to help the newbies who are too scared to open their mouths and sure it’s great to assist the introverts who would prefer not to say anything at all.  

Fact is though that if everybody is not taking part in the discussion, all you are doing is standing on your soap box as you deliver your soliloquy.  How sad is that?

Fact is, everybody is there for the same reason, everybody wants to engage with like-minded people, everybody there wants to start building relationships and everybody wants to tell people about what they do and who they are.

Breaking the ice to get the conversation going is really great, but talking for the sake of talking will be the death of any kind of relationship that you hoped to get going.

So find the common ground - interesting, light hearted things to get going and get everyone included in the conversation – you’ll be so glad you did.

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 

Inspiration – If You Can Dream It

 Inspiration – If You Can Dream It

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

One of the most profound sayings that I know of is Walt Disney’s “If you can DREAM it, you can DO it.”

This certainly is one of the inspirational tips that resonates the most with me – and boy do I love to dream.  It is my most favorite part of the day.  When I am lying in my bed at night, just before I slip into ‘lala land’ (if I am extremely lucky you understand), in that place between being awake and being asleep that I love to call ‘the twilight zone’, where I allow my mind to wonder to all the delicious possibilities that are available, and believe me when I tell you there are millions!  I doubt very much that there is a single night that I don’t go to sleep with a huge big grin on my face and that, I think, is very good for the soul!

Sadly, even in this day and age, there are still millions of people out there, who never mind don’t have even a single dream, but worse still, they have no idea how to dream.  People who are caught up in their mundane lives, who are so busy putting ‘one foot in front of the other’ in order to stay alive, so focused and intent on just existing that there is no room for anything else.  Or, what about those folk who have been so damaged by life that they do not think that they deserve anything good in their lives, much less even the notion that they too can dream?  Then of course you have the people who do not even believe in dreams, people who are so cynical about the magical aspects of life that they cannot even begin to understand how important it is to dream.  My heart really does go out to all of these – I could not even being to imagine my life without my dreams.

Here’s the thing though – it’s no good just dreaming!  Sure it’s a lot of fun and sure it feeds the mystical, magical, fantasy side of our lives, but in order to have those dreams become a reality (the ones that you do want to be part of your reality that is, not the ones about the flying red dragons), then you have to do something with them, about them and to them, in order for them to become the reality.  There has to be some sort of action on your part.  You have to become (if you’re not one already) a ‘doer’!   You have to create the ‘space’ for the dream to become a reality and I think for most, therein lies the challenge.

Think about it for a moment – how would you feel about reading a book that has no ending!  You get all caught up in the twists and turns, the plots and the pleasures, the drama and seductions and as you get to the most critical stage, you turn the page and . . . .  nothing.  You hastily turn the page back, believing that you have missed something, that you have done something wrong and no, there it is the twists and turns, the plot and the pleasures and you turn the page again, hoping that the tale continues and there, as plain as day, staring right back at you, a blank page!  

That for me is what happens when a dream is not turned into reality.  Irritation at having been brought this far down the road and then left dangling, the plot not realized, the twists and turns only half completed and the story that started off rich and vibrant and full of life brought to an abrupt end.

So remember that the dream that you want to turn into reality, must be brought to fruition, the tale needs to unfold and the story needs to have an ending and quite honestly, whichever ending that you need to write will be the right one for you – it’s all about the choices that you make and how you want the dream to end.  So put in the effort, make it happen.  Dream the dream but don’t forget to turn the dream into your reality.

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

HR 101 – What to do When . . . . Staff are Negligent in the Performance of their Duties – Part 3

 

HR 101 – What to do When . . . . Staff are Negligent in the Performance of their Duties – Part 3

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to the South African Labour & Best Practice Requirements.

So here we are on the brink of an Appeal Hearing.  George has decided that he has been unfairly dismissed and he has lodged a formal request for an appeal hearing, which of course is his right.

A senior staff member has been called in to chair the hearing (the chairman of the dismissal disciplinary cannot chair the appeal hearing), let’s call him Steve.

Steve had a look at all the material that had been presented at the disciplinary and he decided that because George had not been charged with dishonesty and because there had been no stock losses (although remember at this point that was purely supposition), that this information was irrelevant to the case as George had been charged for being negligent because he did not follow procedures – he had not been charged for dishonesty.

Steve did think that it was important though that because procedures had not been correctly followed, Mike could have suffered losses.

Steve diligently looked for an alternative decision to the one of dismissal, but could not find any solution that would be appropriate – therefore the decision of ‘dismissal’ was upheld, and the appeal was dismissed.

So that gives up the background to why this particular case was lodged at the CCMA.

For the record, an arbitration proceeding done as CCMA level is done as a ‘de novo’ hearing.

What this means is that it becomes a completely new case or hearing.   It is not a re-hearing or a re-proceeding of the employer’s (Mike’s) disciplinary procedure.  Nothing that happened at the George’s hearing or even the appeal hearing is taken into consideration – it’s as if it never happened.  It is a completely new hearing, on a new page, with a clean slate.  

Therefore only the evidence that is presented at the arbitration hearing is taken into consideration – not any of the evidence that was presented at George’s “company” hearing.  This is very important to remember!

Next time we will continue with what happens.

 

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

VAT 101 – The Company, the Trading Name and the VAT

 VAT 101 – The Company, the Trading Name and the VAT

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African VAT (Value Added Tax) regulations and Best Practice requirements.

Sounds like the title of a bad movie, doesn’t it?

The reality is that it can be very confusing so let’s try and explain it in the most simplistic manner.

Let’s bring in the protagonists.  Mike, who is a plumber, has been trading as a ‘Sole Prop’ now for a number of years.  You see when he first started out he was concerned about whether he would be successful or not and he has now decided, due to the tax benefits and other Government concessions for small businesses, that he needs to be properly registered.  Mike has been trading under the name “Mike’s Plumbing & Supplies” and would obviously not like to start from the very beginning again, in terms of marketing and branding.

Unfortunately the name “Mike’s Plumbing & Supplies” has already been reserved and Mike has had to register his Company in his full name, being Mike Jennings Company (Pty) Ltd T/A Mike’s Plumbing & Supplies

Mike has had to register the VAT under his new Company.  The VAT that he collects is now under the name of Mike Jennings Company (Pty) Ltd T/A Mike’s Plumbing & Supplies.

Mike is having difficulty in finding properly qualified plumbers and clearly needs to employ some if he wants to grow his business.

Mike recognizes the opportunity and decides to open up a training school to train aspiring plumbers.  Mike decides to use his existing Company to start the training school.

In view of the fact that Mike is using his existing company and it is already VAT registered, Mike has to charge VAT for his school right from the very beginning, although the training of plumbing students is very different to being a plumber, and in fact is a completely different entity to his plumbing business.

In time, Mike decides that he wants to operate his training division as a completely separate entity as it is doing really well.  Mike doesn’t want to start or register a new business, but he does want to separate the bookkeeping functions of the two businesses.

Mike’s bookkeeper, who knows what he is doing, registers a ‘branch’ to Mike’s original Company and so Mike Jennings Company (Pty) Ltd T/A Mike’s Plumbing School is born.  This entity is now also registered for VAT and has its own VAT number.  He does this by means of a VAT 102 form.  The second VAT number for the same “holding” company does not have a minimum threshold and Mike  is able to continue charging VAT to the students.

As Mike’s business grows and he expands into more and different avenues, he is able to separate each entity, register them as ‘branches’ and register a VAT number for each one as he separates the bookkeeping functions so that each ‘branch’ is responsible for it’s own income and expenses and VAT requirements.

Well done to Mike for growing such a profitable business and running it in the correct manner.

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

Networking 101 - Always have Business Cards with You

 Networking 101 -  Always have Business Cards with You

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

I am at a total loss!  No really – at a complete and total loss!  Yip, sometimes words fail me and this, is one of those time!

People who go to (or even set up) Networking meetings or events, who do not have business cards with them!

I mean I can sort of kind of understand being somewhere and running out of cards because the crowd that you expected to be there, is somewhat smaller than the crowd that actually arrived (but that’s why I always have a full box of cards in the car), but people going to a Networking event or even hosting a Networking event and not having any cards – well that, for me just defies logic. I mean, why are you going to a Networking event (not to mention actually hosting one) if your intent is not to Network?

The bottom line of course, is always be prepared (for me it’s always about being proactive) and that means always having cards with me – it’s my branding, it’s my marketing, it’s my PRO, it’s the way that I Network and it does work for me.  So I always have cards in my wallet, cards in my work bag, cards in my notebook (the one that I usually take when I go to Networking functions) and cards in my car.  That way, I may run out of cards on me, but I always have a back up supply.

My business cards are crucial to my getting new business.  They represent me, they represent my skills and services and having them with me always, tells people that I am serious about what I do – that I am serious about my business and that I am a professional, regardless of whether I am at a Networking meeting, or at my nephew’s school watching a soccer match.  My business cards tell people that my business is open . . .  well for business.

I never know when the next opportunity is going to come knocking at my door – it could be as I stand in the queue at the post office or waiting for my car to be vacuumed at the car wash (and yes I did meet a colleague there, who was invited to attend some Networking meetings and the rest, as they say, is history), so I make it a point to never be without a card or two.

So the next time you head out the door, check for car keys, house keys, watch, wallet and of course . . .  those business cards!  There will come a time when you will be pleased that you did.

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

Business Tips - Firing a Client – Part 4

 Business Tips - Firing a Client – Part 4

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Following on from last week, here is the last part of the series.

The next client has got to be of the worst kind.  They are the clients that are really stressful to work with.  In many ways they are the most fabulous clients to have – they pay on time, they don’t quibble about the price, there’s always work coming in and the work itself is exciting and it stretches your mind.  It’s challenging and a pleasure to do.  So what’s the problem, I hear you asking? Well for me it is when I don’t particularly like the client as a person.  They are usually unpleasant, difficult to work with, rude and over bearing.  They have no respect for what you do, yet would not be able to do it themselves, which is why they hired you in the first place.  They impose ridiculous deadlines and feel that they have the right to call you any time of the day and night and that you should be at their beck and call.  Quite simply put they are exhausting.

When you are caught up in this merry-go-round, you will need to think very carefully about whether or not you want to continue this relationship – if you do, you will need to set very firm ground rules.  One of my colleagues does it by charging double time for anything that she has to do after hours and that includes taking telephone calls.  They soon learnt not to call her after hours.

Whatever the reason – before you fire a client, you need to sit down and ask yourself some questions.  Are you ok about losing the client?  Would you be able to work with them again if you had some sort of break with them?  Would you consider doing any future work with them?

The answers that you give yourself would clearly make a difference on how you went about actually firing the client.

Here’s the thing – screaming and shouting, swearing and slamming the phone down, storming out of the office and saying things in the heat of the moment, is not  the way to do it – remember you are supposed to be a professional person.

Not returning messages, phone calls, e-mails and just ignoring them until they go away is just plain rude – also not the way to do it.

Then of course you are just too busy and you will be too busy for the rest of your natural life. For me this is also not the right way to go about it.  For me it’s about being upfront and honest about it. It’s about being professional and dealing with the problem in a mature manner.  Let’s be honest, often the client will not even know that they are being a royal pain in the butt.  If you show them and explain to them what the problem is, and they are equally mature about things, there may even be a way to salvage the relationship.

If you can’t, or if (as in the case of a friend who ended up being threatened by the client) they don’t want to or you realize that you don’t want to keep them either – then it’s time to walk away.  Don’t walk away angry – learn from the experience and just walk away.  Remember the Universe is a funny old place and as one door closes, somewhere another opens.

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