Business Tips – Keeping Yourself Compliant

 Business Tips – Keeping Yourself Compliant

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African legislation and Best Practice requirements.  I’m pretty sure though most countries have something similar in terms of legislation in place.

Over the last couple of years, I have met with several small business owners who run their businesses in a less than moral manner.

In most instances, they are well aware that what they are doing is wrong.  In all fairness to them – they are perhaps not fully aware of the extent to which they have put themselves at risk.

That said, they are still very much aware that there are consequences if they run their businesses in a “reckless or fraudulent” way.

In fact, the bottom line and the harsh reality of the matter are that both the Close Corporations Act and the Companies Act have put processes in place that allow the courts to make the members of a Close Corporation or the directors of a Company, personally liable for the debts incurred it they know that they are running their businesses in a “reckless or fraudulent” way.

The Close Corporation Act says: “A member of a corporation shall be liable to the corporation for loss caused by his or her failure in the carrying on of the business of the corporation to act with the degree of care and skill that may reasonably be expected from a person of his or her knowledge and experience.”

The Companies Act says: “When it appears, whether it be in winding-up, judicial management or otherwise, that any business of the company was or is being carried on recklessly or with intent to defraud creditors of the company or creditors of any other person or for any fraudulent purpose, the Court may, on the application of the Master, the liquidator, the judicial manager, any creditor or member or contributory of the company, declare that any person who was knowingly a party to the carrying on of the business in the manner aforesaid, shall be personally responsible, without limitation of liability, for all or any of the debts or other liabilities of the company as the Court may direct.”

So what does this mean exactly? Here’s the story . . . . .

Mike owns a CC (Close Corporation) and he is in construction, but because he has been sequestrated he cannot have it in his own name, so he puts it in the name of his wife Susan.  Susan is a shipping clerk in a huge corporation, who has no idea of how to run a business, much less anything to do with construction.

Mike has five projects on the go and in the usual fashion with some construction people he has taken 75% of the fees upfront to purchase materials and what have you. The balance of 25% will be paid when Mike completes the project and obtains sign off from the building inspectors and of course the client.

  

Mike has purchased material for projects 1 and 2, using the deposit from project 1.  

Mike has purchased material for projects 3 and 4, using the deposit from project 2.  

Mike has purchased material for project 5 using some of the deposit from project 3.  

The balance of the deposit from project 3 and deposits from projects 4 and 5, Mike has used to buy a new bakkie. 

The materials that Mike has purchased are of inferior quality and workmanship and Mike is hoping that no one is going to notice.  Project 1 is about 80% done and just has to have the finishing touches, like the light fittings and what have you done but he has now run out of money and there are no new projects in the pipeline.  Project 2 is about 50% done and project 3 has just been started.  Neither projects 4 nor 5 have been started at all.

Mike has dealing with several suppliers during the course of these 5 projects and they know him and he has been paying cash upfront or settling the bills on a pretty regular basis.  A relationship has been forged and Mike goes to get more materials promising to pay as ‘soon as he gets to the office’.  Mike has purchased sufficient materials to ‘finish’ project 1 and he is banking on the balance of the money for project 1 to continue with project 2. The problem is that Mike has used inferior fittings and finishes and both the building inspector and the client refuse to sign off because this is not what was ordered or paid for.  In the meantime, the suppliers are hounding Mike for payment and he is now not even taking their calls.

Mike is now deep in the smelly brown stuff – he has set up and is running a business fraudulently as being sequestrated is he is not allowed to register or run a business in his own name.  He has accepted money for work, materials have not been purchased.  Materials purchased are of inferior quality and workmanship, he has not paid for some of the materials.  Mike has spent the money that he was paid on other things.  The workers have not been paid and there is now no money at all.  Mike is now trying to file for bankruptcy which means that the suppliers will get a fraction of what he owes them. Mike has run this business in a fraudulent manner and the Court can hold him responsible in his personal capacity and actually prosecute him to the fullest extent of the law – this could mean not only fines and penalties, but it could also mean jail time.  Actually, if the truth is told, the Court will hold Susan responsible in her personal capacity a well since she is the legal owner of the business and she was complicit in the fraud in that she allowed Mike to register a business in her name.

None of what Mike did, was done by accident, it was all done deliberately and with forethought.  Mike overestimated his own luck and his own intelligence.  You see, by running the business in Susan’s name, Mike thought that he would be outside of the law and could not be held responsible.  How wrong could he actually get?

Please understand that the days when less than honest business owners could get away with this kind of behaviour are long gone.  Hundreds and thousands of small business owners and individuals lost their businesses and their livelihood and sometimes even their homes because of the unscrupulous behaviour of some people – it may take a while, but these days, these people can be brought to justice and be held accountable for their actions.

Remember too, that ‘ignorance of the law’ is no excuse.  Make sure that you understand what your obligations are and make sure that you follow them and that you are compliant.  

Being proactive is always a lot easier than constantly trying to be reactive.

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 Have Accumulated Leave

 HR 101 – What to do When . . . Staff Have Accumulated Leave

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

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

This can be a real nasty!  Clearly, it is in your own best interests to have the correct wording for what you want, in your letter of appointment.

The Basic Conditions of Employment Act says that the staff member is entitled to a minimum of 15 working days leave per annum.  It also states that the staff member cannot ‘sell’ you their leave.

Here’s the problem – there’s nothing in there to stop staff members from accumulating leave and this is where you will ultimately have a problem, one way or another.

Obviously, prevention is better than cure, so let’s put down here some of the things that you should have in your letter of appointment:

Let’s break down the 15 days per year as per the Basic Conditions of Employment Act requirement.  Now if your company closes over the December holiday period, your staff will only accumulate 3 maybe 4 days per annum, which means that they should still take those days during the course of the year.  I would suggest that you have a clause that says something along the lines of – leave cannot be accumulated. At least 80% of the leave must be taken within the course of the year, the balance of 20% must be taken by no later than 31st March of the following year.  Leave accumulated and not taken at this time will be forfeited and lost. Remember though that if the employee resigns or is dismissed, the leave that has not been taken (unless it was forfeited and lost) has to be paid out at this time.

If your company closes down in December, but the staff member wants their full leave during the course of the year.  Your letter of appointment should state clearly that taking leave during the closure of the Company is mandatory and that any leave not taken at that time must be taken during the course of the year.  Staff will only be granted leave at a time that is convenient to the Company.  There is nothing in the Basic Conditions of Employment Act that states that staff can take leave as and when they feel like it, it has to be at a time that is convenient to the Company.

Then, of course, you will have the odd members of staff who will phone you on a Monday morning and say “Oh, by the way, I’m not coming in today because I am taking leave.”  Not nice!  So in your letter of appointment, you should state that – leave must be applied for at least a week or month (whatever is convenient to you as the employer) prior to leave being taken.  This will give you a chance to put measures in place to accommodate being short-staffed.  If the nature of your business means that everyone is under extreme pressure during certain times of the month this can also be factored into the Letter of Appointment along the lines of – Leave will not be granted during the period between the last weekend of a month and the first weekend of the following month.

If you follow these simple guidelines, the only time you will have a problem is if a staff member has applied for leave and you as the employer has denied them that leave for whatever reason. If the employee then resigns or you dismiss them, you will have to pay them out. Don’t do that and believe me you will be paying out – big time. Remember that leave that is paid out when a staff member leaves, is paid out at their current rate of pay, not the rate of pay that they were on when the leave was originally supposed to be taken, but the current rate of pay.

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

Blogging 101 – 10 Tips when Blogging – Part 1

 Blogging 101 – 10 Tips when Blogging – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

I have of late been engaged with blogging and tweeting more and more on a daily basis and in some instances, I have been both shocked and horrified at some of the comments that I have received and then on the other hand hugely amused and somewhere in the middle too - mildly irritated!  I guess it all has to do with these 4 little words that I consider to be the most dangerous in the dictionary - perception, assumption, expectation and interpretation as they seldom meet reality.

To try and share some of the key points that I have learnt and perhaps defuse some of the reactions based on those four little words, let’s have a look at some of these tips here.

1. Be Yourself

The internet is not a stage or a film set where you play a part.  It might seem like a great place for you to role-play or indeed emulate someone else.  The reality however is that if you are trying to brand yourself or your business, you will do more harm than good if you are not authentically you!

To add to that, why on earth would you want to be anyone other than you? If you are branding yourself, actually even if you’re not branding yourself, why would you want to be or portray yourself as someone else?

Be consistent as you brand yourself across social media platforms.

2. People are just People

One of the things that I always talk about when networking is that it is not about whom you know, but more often about whom you don’t know that knows who you know.  Quite a tongue twister I know but the reality is that irrespective of whether you connect with someone who has 10 followers or someone who has 10 000 followers, you have no idea who they are connected with.

You need to make every connection count and in order to do that, you cannot discount people because they only have a small number of followers.  That small number of followers may include someone who can take your business to the next level!

3. Say what you mean and mean what you say.

Now this one I particularly like!

You should never say anything on social media, not just –Twitter, but social media in general, that you are not prepared to defend in person.

Be true to who you are as a person, be true to your beliefs, be true to the topic and you will develop credibility and trust with your followers.

4. Keep it tidy

I know that I always talk about the “telling of the story” and keeping the message short and brief, or “tidy” as I like to call it, may seem to be a contradiction in terms.  That said I still stand by both.

The reality is that if you have a one-liner that people don’t understand because they have no frame of reference, it’s not going to help you in any way. In fact, if your readers or followers are anything like me, it will frustrate them to such an extent that they will leave anyway.

True as that may be, the story does need to have a point and shouldn’t waffle all over the place.  The story also needs to be entertaining and create pictures in the mind of the reader and leave a lasting impression.

On that note, check out the next post to receive some more tips.

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 Importance of Business Cards

 Networking 101 - The Importance of Business Cards

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

In her cards on Networking Tips, Dr Renate Volpe says “Your business card should read like a headline that is promoting your business.”

Ain’t that the truth?  I can tell you I have seen some strange cards out there.  Some really strange shapes and some really strange textures and some that you can only read if you put them against a white sheet of paper!

For me it’s about being able to read the bloody thing!

I hate to admit it, but there are some cards that I have actually thrown away in absolute frustration!  It tells me who they are and all the numbers are there, cell, work, fax, e-mail – the whole toot.  The problem is that the writing is so small that I needed a magnifying glass to actually read them – there are only just so many times that I am prepared to go downstairs to fetch the magnifying glass to read a business card – so out it went.

Then of course there are the cards that are so different that they do not actually fit into any kind of card holder.  Sure they make an impression, but they also frustrate the hell out of a person – so out they go too.  

Please don’t get me wrong – be different, be innovative – make a statement, but for goodness sake make a statement that most people can read and make a statement on a receptacle that we can keep somewhere comfortably.

The card should tell a person, clearly, who you are and what you do and the numbers should be of a size that anyone can actually see (never mind read).   Be different, be daring but most of all be BOLD.  Your aim at the end of the day is to get someone to contact you – they need to be able to read the numbers on the card in order to do so. 

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 

Business Tips – Intellectual Property

Business Tips – Intellectual Property

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Let’s start at the very beginning – what exactly is Intellectual Property?  Is it something to do with an ‘Invention’ or perhaps something that is associated with a particular product, then don’t leave out things like designs or even copyright?  Would you consider any of these IP (Intellectual Property)?  The reality is that it is all of these and still so much more.  It’s also about all the information that you have in your head and how you use it.  Think about it for a minute – if you go to the doctor, you would not even think twice about the fact that you would need to pay him – you would automatically expect to pay “professional” people.  Yet people think that they can phone me up (whether they actually know me or not) or mail me and ask for all sorts of advice on whatever topic they think that I might be versed in and expect to get that information for free.  Why is that do you suppose?  Is it because I don’t have an “MD” or a “PHD” behind my name? Here’s the thing though, just because I don’t have a degree behind my name, doesn’t mean that I haven’t paid my dues, one way or another!

The reality of the situation is that I have the information and I have in it my head, I don’t have to do the research.  Much of the information that is in my head had been gathered over a period of over 50 years.   It’s information that I have paid dearly for, with my time, with my sweat and with my insatiable curiosity.  I have done without, in many instances, to get my hands on the information.  I have struggled and been tenacious in my quest to get there and do it.  That’s not to say that you could not go that route yourself – much of the information is freely available – what it will cost you is your time, your ability to understand the information and often the price is the cost of your experience.  

The problem here, as I see it, is that you want the information now.  It’s instant gratification that you want.  You don’t have to want to go and look it up on the internet or spend some time in a library or even experience the thrill, the taste or the pleasure of it.  You just want the answer and if I am the only one to be in a position to give it to you right here and now, well then my dear, that makes it my Intellectual Property and that gives me the right to charge you either the time that it takes for me to give it to you or for the actual information or both.  Of course whether you are prepared to pay for it would also come into play, but make no mistake – it’s mine to give or withhold as I see fit.

Mentoring is something that I am very passionate about and it is something I really believe in.  I have a mentor and there have been several people over the years that I have mentored.  That said, I don’t necessarily believe that it is your God given right to demand a mentor or even expect a mentor to give you anything for nothing – even mentor’s need to put food on the table and what kind of mentor would I be if I gave you everything of me and in me and then starved to death – not a very good example I’m afraid!  So where is the line between what I am prepared to give out for nothing, nada and with love and no expectation and where I get to a point where I say ‘enough now – you have to start paying, or reciprocating in some way’?

I recently had an experience whereby I was asked by a colleague to mentor someone (let’s call her Jane).  Jane got half way through a university degree, she then dropped out because of financial constraints and now Jane works as a clerk for a corporate company.  Jane now wants to become an Internal Auditor and wanted my help.  Let me be clear on that Jane wanted my help, I didn’t particularly want Jane in my life!

It was pretty clear from the get go that as much as Jane wanted the help, she didn’t want to pay for it and certainly she did not want to be inconvenienced in any way.  In other words, Jane wanted my help but Jane wanted help in her time and on her terms.  Jane never phoned when she said that she would, she didn’t get back to me when she said that she would and when we eventually did commit to a meeting, she didn’t pitch – not only did she not pitch but she also did not even have the good manners to contact me and tell me that she couldn’t make it.  

How rude!

How absolutely disrespectful!

When I reacted and charged Jane for wasting my time, not the consultation you understand and not the mentoring – but for wasting my time, Jane had a conniption fit!

Poor Jane – you see, she may not pay me, but I will still have the knowledge that she wants and now will not get and quite honestly money is something that is very easy to generate.  

Me, what don’t I have - well thankfully I don’t have Jane!

You, what do you have?  Do you have a mentor with the Intellectual Property that you would love to have and do you treat them with respect or do you ‘trash’ them, much in the same way that Jane tried to ‘teach me a lesson’ by refusing to respect me, by refusing to understand the value of what I could have given and shared with her?  

I wonder, what is my Intellectual Property worth to you? 

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

Inspiration – Our Calling

 Inspiration – Our Calling

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Dr Naomi Stephan says “You have a calling which exists only for you and which only you can fulfil.”

We are, each and every one of us, governed by our beliefs.  Whether that belief system was implemented by our family or whether it is one that has been chosen and designed by ourselves, matters very little in the long run.  The fact and reality of the matter is our actions (and indeed our inactions), the way we think and what we do with our lives, is governed by our belief system.

It is my belief that we are all here on this planet, sharing this journey with the billions of other people all around us, for a specific reason and that that specific reason is our life purpose.

Now, I know that many will disagree with me and then of course there are those who will insist on embarking on a negative journey, one that is full of anger and destruction or hatred and hurt.  That is their choice and I have no doubt that they will reap their just deserts one way or another.

 I am filled with a feeling of hope that we all will find our true calling, the only one that we, as the unique individuals that we are, can fulfil.

I am full of a sense of anticipation when I look around and see all the opportunities.  The journeys and the projects that we have already started or that wait patiently for us to start.

I am engulfed with a sense of wonder at the realization of what my purpose is and that of my own personal calling and I do understand that it is something that only I can do, and I think I’m ready, hell – I hope I am ready to take it on and meet the challenge.  Actually, if the truth be told, I can’t wait to get started! I am chomping at the bit, straining against the inactivity, frustrated at the fact that I have to wait, for a little while in any event, while everyone rests over the holiday periods or because they are busy with something else and I know that perhaps I should also be resting so that I am fit and able to take on the huge task ahead of me.  But the reality is that I cannot wait, I am eager to start – I want to see where the journey takes me!

The feeling for me is akin to what I feel when we are about to get an electrical storm. I can sense it, I can smell it, I can feel it and I know that pretty soon I will see it too.  It’s exciting, it’s really scary and I am almost breathless with the anticipation of what is to come and the profound effect that I know it will have on my life.  My senses are all ‘a tingle’ and I am intoxicated with the delicious expectancy of what is about to happen.

So perhaps this missive is a warning to all who know me, a warning that this year will see me like I have never been seen before.  The words at the end of my e-mail of “Lead, follow or get out of the way” will never be truer and I challenge you all, to take the opportunities, seize the day and live every moment with every fibre of your being and then step back – step back and watch 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 http://www.viljoenconsulting.co.za

HR 101 – What to do When . . . You Have to Pay UIF

 HR 101 – What to do When . . . You Have to Pay UIF

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

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

It is said that there are three things in life that you can count on, they are:-

1) You will pay taxes;

2) Things will change; and

3) You will die.

Keeping this in mind, I am constantly amazed at the number of people who think that they don’t have to pay UIF (Unemployment Insurance Fund) for themselves and their staff members.

Here’s the thing, it is a legal requirement.  If the Labour Department sends an Inspector to your place of business or even your home and they discover that you have staff members or that you have a Gardener or that you have a Domestic worker or that you pay yourself a salary and you do not pay UIF, you will be fined.  There is a penalty.

Don’t be thinking that because you have had the same gardener for the last 20 years and he only comes in once a week, that you don’t have to pay UIF on his behalf.  You do and please don’t come with the ‘he’s a casual’ story either!

The Basic Conditions of Employment Act is very clear on this.  A casual worker is someone that you pick up on the side of the road and who does something for you on a ‘once off’ basis.  You never see him again, you probably don’t know his name and you certainly don’t welcome him into your home or your garden on a weekly basis.   

In fact, anyone who works for you for more than 24 hours a month (that 3 days people) is considered a permanent employee and is entitled to the benefits of a permanent employee irrespective of whether you have given them a letter of appointment or not!

So make sure that you have registered your business as an employer and make sure that you have registered yourselves as employees and register your Gardener and your Domestic worker and then register yourself.

It’s really not a big deal and the amount of money that has to be paid every month is really quite insignificant in the grand scheme of things.  That said, the irritation, the inconvenience and the size of the fine that you will get if you do not comply is far greater than making the payment every month and with the introduction of e-filing, paying this is an absolute pleasure.

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

Blogging 101 – Focus on Your Readers

 Blogging 101 – Focus on Your Readers

By Nikki Viljoen – Viljoen Consulting (Pty) 

This is most definitely a case of “Do as I tell you and not Do as I Do!”

Let me explain . . . 

You see I started out writing my blogs for my own gratification, my own enjoyment.  Not for the enjoyment of anyone other than myself.  Sounds really selfish, doesn’t it?  But that is the honest truth!

Now, most folk will tell you that you need to focus on what your readers want to read about, not what you necessarily want to say and yes, they are usually two very different things. Pretty much like when you are doing the research on what you are going to sell (be it product or service), you need to ascertain what people want rather than what you think they need.

The reality of the situation is that no one really cares about what you think or indeed what it is that you have to say unless of course, it happens to be what they want to hear or have a need to hear (and yes those are also two very different things too).  If you don’t give them what they want, they will just go somewhere else to get it – yip, people are pretty fickle like that.

Fortunately though, what I wanted to write about because generally it was something that I had just learnt and was excited about and just wanted to share – or alternatively, something that I needed to hear, was also something that most SMME’s (small, micro, medium enterprises) wanted to read themselves.  I am just lucky that it turned out that way.

That and the fact that I have penned in excess of 2000 articles, makes me believable, especially when they read an article and it resonates with them – the general consensus then is that I must know what I am talking about, so they read another one and so on.

The fact of the matter is that if you are looking to earn money out of your writing, it has to be about the reader – you have to pander to their every need.  You have to strike a chord in them or challenge them or give them righteous indignation – something that makes them think about what you are trying to say that they either wholeheartedly agree with or they completely disagree with.  If it is the latter you need to hope that they are indignant enough to respond to you in some way that will open up a discussion.

Fortunately for me, my blogs (and yes even the business ones) are generally presented in the form of a story, and it’s in the ‘telling’ of the story that I am most successful.  You see, I am a person who sees the words in pictures and when I read I have this whole video thing going through my mind as the words conjure up the most colourful pictures and when I write, I tend to write in the same way.  The words produce pictures in my mind and this is what people tend to grab ahold of. Those pictures in their minds have more impact on the story being told or the lesson that is being learnt than just a bunch of facts and figures would have and this gives the words (or the lesson) great value.  

People usually appreciate getting good value for money and they appreciate it even more if they get the great value without having to pay anything, including the usual school fees that come with starting a new business or going on your own.

Me, well I don’t really care one way or the other – you see my words give me the greatest value and the most enjoyment, and there’s nothing more that I could actually want from them. The fact that they also make a difference in the lives of others . . .  well that’s just a hidden bonus for both the reader and me!

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

Networking 101 – Be On Time

 Networking 101 – Be On Time

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

One of the most frustrating things, specifically in a facilitated or semi-facilitated networking meeting is the stragglers coming in.

Imagine the scene if you will – a person is standing up, telling everyone about who they are and what it is that they do.  How wonderful their product or service is and why it is that people should be purchasing said product or service from them.  Everyone in the room is focused on what this person is saying and hopefully, either deciding that they need the product or they know of someone who may require the services of the speaker.  

In the middle of all of this, another person enters the room.  So far not a problem I am sure that you would agree.  The room is packed though and said person wants to slink into the only remaining seat which is clear across the room.  So there is many “excuse me’s” going on with much bending over and head bobbing, whilst they find the seat that they are looking for and finally settle in.  

By this time the speaker has lost their thread and momentum, the rest of the networker’s have lost their focus and have forgotten the questions that they wanted to ask – the moment is lost.

If possible make sure that you can get to the venue on time, if not a little early.  Before anyone heaves a huge ‘sigh’ and rolls their eyes heaven bound – I know that no-one intentionally wants to be late, but then for goodness sake, use a little bit of common sense – wait until the person who is talking about themselves is finished and either steps down or sits down – there is time enough at this point to dash off to the seat in the corner that you now have had time to see.  This will cause the least amount of interruption and allow the speaker to say what it is that they need to.

Business Tips – Cash Flow - How to Manage Cash Flow – Part 2

 Business Tips –  Cash Flow - How to Manage Cash Flow – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Last week we looked at exactly what cash flow is and this week we will look at the “how-to” of managing cash flow.  For me as usual, it’s the simplest method of “how-to” that I will be sharing, so please just be aware that there are many more components and levels of complexity to this subject.

It is important to understand that most of the money that you generate as an inflow should be from the sale of your product or service.  It cannot be from investing or finance – if this is the case you are going to be very deep in the smelly brown stuff without a shovel to dig yourself out.  So sales are obviously key, irrespective of whether you are selling a product or a service.

It is also important to understand that the inflow and outflow of your business tells the story of how healthy or unhealthy your company is.  That is one of the reasons that I believe it is so important to have the services of a really good accountant to assist you.  The understanding and “reading” of the story of your business can only be done by someone who is experienced in these matters and someone who will tell you where you are going wrong and guide you back onto the correct path.  My someone is Nico Labuschagne of Less Tax 4 U and I am quite happy to share his contact details if you ask for them. 

That said it is also very important to understand that cash flow is a “real-time” issue as opposed to having your books done on a monthly basis – by the time they get to the bookkeeper/accountant they are already a month or so old and are therefore a “reactive” issue.  You cannot wait for a whole month to then realize that you have no money to pay the bills that are coming in and are due, right now!  In terms of cash flow, you have to be proactive – you have to know what is happening right now!

To create a cash flow statement, and remember that it is a living breathing document and it changes all the time, you need to take all the business inflows and subtract all the business cash outflows.  This is usually done on a monthly basis but it can be done for any specific period.  Obviously doing this manually is a pain in the rear end and using an accounting package to generate financial statements and thereby producing a Cash Flow statement, would be the simplest way to do it (another reason for a Nico in my life, I don’t have to invest in expensive software accounting packages.)

When you work out your budgets, it is extremely important to use “cash flow projections“, because if you as a business owner, do not understand the way that your cash flow operates, you will find yourself in a cash flow crunch, where you will be waiting for funds to come in, but have operating expenses that need to be paid now.

This is particularly true if you have or run sales on account (hopefully you are then registered with the National Credit Authorities as a service provider), or alternatively have clients who pay 30 or 60 or even 90 days.  You need to make provisions to ensure that you have enough cash on hand to pay your bills while you wait for monies to come in.

As SMME’s, I am sure that you will agree that this is a very difficult position to be in and this is why it is vital to first know, what is happening from a financial perspective, in your business and secondly to understand what happens when you have cash flowing both in and out of your business.

Understanding and knowing where your money is coming in from and where your money is going out to is key to controlling your cash flow.

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

<< Part 1

http://www.viljoenconsulting.co.za/2009/11/business-tips-cash-flow-what-is-cash-flow-part-1business-tips-what-is-cash-flow/

Inspiration – Potentials Rather Than Problems

 Inspiration – Potentials Rather Than Problems

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

“If human beings are perceived as potentials rather than problems, as possessing strengths instead of weaknesses, as unlimited rather than dull and unresponsive, then they thrive and grow to their capabilities.” Barbara Bush.

What an amazing opportunity for us to change our mindsets – to see things from a positive perspective instead of the negative.  That’s all it is at the end of the day – a simple mindset, yet we as humans tend to focus on the negative, on what is our perception of what is wrong instead of what could be right.

A couple of years ago, a friend of mine (let’s call her Jane) was out and about in the Company bakkie – not doing anything that she shouldn’t have you understand – just going about company business.  Someone missed a stop street and missed hitting her by literally millimetres. Tyres shrieking, brakes almost smoking, vehicle swinging and swaying all over the road, Jane fought to bring the “out of control” vehicle back under control.  Thankfully there were no other vehicles around and Jane eventually brought the bakkie to stop and when she got out of the vehicle she was so shaky she could not stand properly and fell to the ground weeping uncontrollably.  

Jane was distraught!  For days, she went about in a highly emotional state, telling everyone who would listen to the whole story, blow by blow – second by second.  She went from anger at the person who did not stop at the stop street and who sped away after the incident, to fits of weeping and then bouts of strange laughter.  She ranted and raved at the bad “roadside manner” of many drivers and driving either with her at the wheel or her as a passenger became quite a challenge as she went from a normally relatively calm individual to someone in the throes of “road rage” in seconds.  It was driving me nuts I tell you!  Nuts!

Eventually, one morning, whilst listening to the story for the 1000th time, I had had enough and in the middle of her tirade, I turned to her and said “Jane – are you alive?  Do you have any bruises? Is the bakkie okay?”  She turned to me with a quizzical look on her face and replied that she was.  “Well then I countered, what on earth are you on about – yes it could have happened, but the reality is that it didn’t – so can we please move forward now?”  She sat quietly for a few minutes and then looked at me and said “I’ve been a bit of a pain this last week, haven’t I?  I’m fine, alive and in good health – let’s go and celebrate!”  And we did . . . 

The point here is that we often get fixated on the negative, on the bad, or the things that irritate instead of with a simple mindset change, focusing on the good, the positive and the potential.

Here’s my challenge to you this week (and if you are aware of it, it will be much easier), at least once a day, when you find yourself in the negative or looking at the bad – consciously move it to the positive – find the good and focus on that.  You will be amazed at what it does to your mood.

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

HR 101 – What to do When . . . You Need to Compile a Job Description - Part 5

 HR 101 – What to do When  . . . You Need to Compile a Job Description - Part 5

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

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

In the final instalment of this series, let’s have a look at some more of the “Do’s” and “Don’ts” of writing a Job Description.

• Do ensure that the questions “what”, “why”, “how” and “how often” are answered, clearly and concisely.  Remember to use words that are easily understood so that there can be no confusion.

• Do make sure that there is sufficient detail for each task.  Again, you don’t want to confuse the issue – make sure that it is simple and to the point.

• Do use examples in order to highlight or explain tasks, especially where a task is described in general terms.

• Do use short and concise sentences.

• Do begin all sentences with an action verb (for example use words like assists, advises, controls, approves or authorizes.)

• Do use precise numbers (for example – reports into two directors rather than reports into a number of directors.) It is better to be specific.

• Do number the task.

- Don’t use an individual’s name in preference to job titles (for example – reports into Operation’s Manager rather than report into Joe Soap – Joe Soap may leave the Company in the next few weeks and then who do they report into?)

- Don’t include duties or responsibilities of others where these don’t directly affect the job that is being described.

- Don’t include incidental activities which occur once only and are never likely to be repeated.

- Don’t lose the basics of the task by putting in data that is totally irrelevant.

- Don’t describe attitudes and opinions – stick with the facts.

- Don’t start sentences with “if” and “when”.

- Don’t pad the job description to make it look more important than what it is.  Sometimes things are just what they are – leave it simple clear and concise.

Remember always, the Job Description must fit the job not the person or the person must always fit in with the Job Description.

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

Blogging 101 – The Harsh Reality

 Blogging 101 – The Harsh Reality

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

I was asked the other day by my Life Coach what it is about blogging that I find so addictive, having penned over 2000 articles.  I must admit I had to stop for a moment and think carefully about my answer and I am so glad that I did.

You see I have been struggling for some time now to get articles written.  It’s not for a lack of material you understand (I probably have enough material to keep me writing an article a day for the rest of my life and beyond).  The problem for me is a lack of time, or rather to be completely honest with myself (as well as you lot) and more to the point, a lack of organizing my time!  There . . . . I’ve said it!

I have on many occasions stated that I often write about what I most need to hear and this is again one of those instances.  I am ashamed to say that I have become a procrastinator of note!  Shocking hey!  To the point that every time I see an article about procrastination, I hastily file it without even opening it – now that’s just me being a huge coward on top of everything!

The really sad thing about all of this is that on some level I have to write every single day (and I am not talking about Policies and Procedures here either) in order for me to be fulfilled – it is my one creative outlet and I know and understand that if I don’t write and express myself and dig down deep into the core that is essentially me – well then I don’t grow and if I don’t grow - well a part of me dies!  That sounded quite melodramatic don’t you think?

So what happened – why is it that I have not been writing every day – the simple answer is . . . life.  I have allowed the everyday clutter and clatter to creep into what is fundamentally time that should be sacred to me.  The “slap upside the head” for me was yesterday when I had a meeting with a client who wants me to mentor him and we were discussing time constraints and how we would fit it into our respective diaries and he said “I know that on a Friday you like to catch up on your admin and that you like to take some time for your “dream time”, so let’s have the meeting on a Friday.”  My “knee jerk” reaction to that was – Noooooooo!  Actually, now that I have really thought about it (in the writing of this article to be exact), the answer is still a resounding “No!”

I have to take back my “me” time!  I have to get back into the habit that was mine for so long, where writing an article was part of my daily stuff – the daily stuff that matters.  I have to get back to doing what is best for me, in order for me to grow as a human being and an individual.

So if you are going through the same dilemma, understand it is about facing the “time thief”, even if that is you and taking control of your life.

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 - Generosity Rules

 Networking 101 -  Generosity Rules

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

In her cards on Networking Tips, Dr Renate Volpe says “Be generous with what you know.  Circulate information.  Connect people.”

I am often amazed at the absolute generosity of some people (Renate included) and then equally amazed at how some people will not share anything.  The mind boggles – well mine does anyway!

Some people hold everything so close to themselves, they will not give out a lead or a referral, but are sure to be in the very front of the queue if they are sure to receive anything!  Go figure!  

Apart from the fact that there is an abundance of opportunity and work out there, they are so busy keeping everything close to themselves that they do not see what is right under their very noses – the abundance.  They agonise and stress about every little thing and how people are trying to cheat them and the competition is stealing all of their ideas and business is sooo bad because . . . .(insert what you will here).  Sounds familiar, doesn’t it?  Yet if they had only opened their hands and their hearts and gave something back, they would receive hugely.

My late friend and colleague Kevin Foot always said that “you have to give to get”.  I agree and have found that you actually don’t have to give too much in order to get a whole lot back.

Look, I don’t mean that you have to give the shirt off your back or give out your IP for nothing.  Not at all!  But put people in touch with one another.  Give out referrals and leads.  Invite your competition to a networking meeting with you – chances are that you will be able to work together on a big project that neither of you could manage to work on alone (now there’s a thought for you).  

Share information – where the next networking meeting is, who is going to be there, opportunities that are not for you but you know someone who is dying to do that sort of thing.

When you are in front of a client or even a prospective client, who you are pitching to, listen to the needs of the client – it may be that the client not only has need of your services, but also the services of someone that you know.  On the other hand, it may be that the client does not need your services at all, but has a need of someone that you know – imagine how impressed they will be when you say “I’m sorry I cannot help you with this as it is not my field, however, I can recommend Jane Doe as this is exactly what she does.”

Not only will Jane Doe think you’re great and start looking out for work for you, but the client will also bear that in mind and when they do have work that you can do for them, you will be called in.  That kind of generous behaviour tends to stick out in the minds of people.  

This is the best value add that you can have.

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

Business Tips – Cash Flow - What is Cash Flow – Part 1

 BUSINESS TIPS – Cash Flow -  What is Cash Flow – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

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

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

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

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

So how do we get this “cash flow”?

First of all, we need to get money into the business – this is usually referred to as a “cash inflow” and it is usually made of up four different components, these are:

• Sales of our products and services – well that’s pretty self- explanatory.

• Loan or credit card proceeds – this is either money that we have loaned from a bank or financial institution or indeed money that we have loaned our business in our personal capacity or money that is coming to us from sales that were paid for by means of credit cards or indeed money that we have “borrowed” on our credit cards, even money that is owed to us by our debtors.

• Asset Sales – this would be when we sell assets (such as old computers or vehicles etc) that were previously purchased by the company that we are now upgrading or even just getting rid of.

• Owner investments – these would be property or financial or business investments that we have made on behalf of our company.

Then of course money goes out of the business – this is usually referred to as “cash outflow” and again it is usually made up of four different components, these are:

• Business expenditures – these are of course the expenses that are raised in the normal day to day running of the business.  This would also include salaries and wages etc for the staff.

• Loan or credit card principal payments – just as you got the money either from a loan or your credit card, now you have to pay that loan back or pay your credit card back.

• Asset purchases – again, just as you sold old equipment or equipment that you no longer needed, so now you have to buy new equipment or assets for the business.

• Owner withdrawals – again that is pretty self-explanatory and it is when the owner takes money out of the business for personal use.  These drawings are usually offset against the money that the owner has lent to the business out of his/her loan account.

Both the “Cash Inflows” and the “Cash Outflows” also fit into three main categories within the business and these are:

• Operating – this covers the sales of products or services of your business, together with the business expenses that you incur in the selling of your product or service.

• Investing – this would be all the assets that you buy and sell and

• Financing – this obviously covers all the loans and the repayments of the loans as well as the money that the owner has invested into his/her business and the withdrawals that he/she makes for personal use.

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

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

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

>> Part 2

http://www.viljoenconsulting.co.za/2009/07/business-tips-cash-flow-how-to-manage-your-cash-flow-part-2business-tips-how-to-manage-your-cash-flow/

Inspiration – Powerful Words – Part 5

 Inspiration –  Powerful Words – Part 5

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

I have, in my opinion, left the two most powerful words until last.  The first of these of course is the word “Action”.

We all need to understand that nothing and I mean absolutely nothing, happens without some sort of action.  Let me put it another way, without some sort of action – nothing will happen.

We all have them I’m sure – you know those thoughts of “when is ……. going to happen” or “why is . . . . happening to me“?  Yes, I can see all of those heads nodding!  The fact of the matter is that things happen (or don’t) because of an action that has taken place, so if something is not happening in quite the way that you want it to, you will need to adjust your actions or at the very least, have one!

Irrespective of what your doubts are, or whether you are feeling blue and invisible, you have to keep going and doing.  By your very actions, something will start happening and it may seem like it is the smallest of twitches, but that small “twitch” will motivate you.  Sheer tenacity is often all that is needed to get through it all and when you least expect it, the floodgates will open and you will be awash with everything that it is that you need.  Lying in bed and bemoaning your fate will never help the situation (and quite frankly, after the first few minutes I am bored with my own inactivity) but getting yourself up and doing something proactive will certainly be a step in the right direction to change your circumstances.  It works every time!

Finally, the most powerful word for me (and it is one that we very rarely use for ourselves) is the reward.

Rewards are often what we give to others, but very seldom what we give to ourselves.  That’s just crazy!  Think about it for a moment – we strive and work towards a goal – but we beat ourselves up on a daily basis because we haven’t achieved what was on our list of “things to do” for the day.  We work 18 hour days, sometimes seven days a week – yet we berate ourselves at every opportunity and we very seldom stop and look around to see how far it is that we have come and what we have achieved that wasn’t even on the list.

Rewarding yourself for a job well done from time to time will often be the greatest inspiration and motivation that you could ever give to yourself.  Subconsciously it tells you, that in your book – you’re ok, you’ve done well and that you have been successful.  It’s a wonderful feeling and it’s an afterglow that will stick around long after the reward has been given and taken and it will spur you on to greater achievements.

Whenever you feel down in the dumps or you feel that you have hit a brick wall and don’t know which way to turn – have a look at these words, pick one and match it to your particular challenge of the moment – I have no doubt that it will pick you up, put you back on the path and back on track towards getting and/or achieving your goals and allowing you to be the best that you can be.

Just keep going . . .  forward.  Try to be or do better today than you were or did yesterday.  That is all that we can do . . . . one step forward at a time!

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

HR 101 – What to do When . . . . You Need to Compile a Job Description - Part 4

 HR 101 – What to do When . . . . You Need to Compile a Job Description - Part 4

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

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

So far we have covered that the Job Description needs to be accurate and realistic.  It has to outline the location of the job within the organization, the purpose of the job, the content, the relationships, authority, controls and checks.  Both the supervisor and the staff member must understand and interpret it the same way.

Today we will examine some more of what must be in the Job Description and the first thing that we need to understand here is that the Job Description MUST be used as an interview guide.  The candidate must match the basic requirements of what is expected in the Job Description.  Remember, it must always be the “person” who matched the Job Description and not the other way around.  So if the Job Description requires someone who has Matric, then interviewing someone who never finished school is not a good idea.  You wouldn’t hire a medical student as the Chief of Surgery, so you shouldn’t hire someone who doesn’t have the right qualifications to do the job.

When your staff members are appraised, the Job Description should also be used as a tool to assess their performance.  If the perception is that they are not fulfilling their obligations in any way, this could be established by checking to see what their requirements are and if the particular task, in question is listed, then you have a case.  So make sure that all the tasks that are required to be performed are listed.

It also makes sense to list the tasks in order of importance or alternatively in some sort of logical sequence.  Each task should have enough information with them to ensure that the incumbent (and the supervisor) understands the WHAT and the HOW of the job.  When this is stated correctly, it becomes a measurable entity and it makes the requirement clear, concise and to the point.

Next time we will continue with some Do’s and Don’ts -  tips when writing a Job Description.

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

Blogging 101 – Where Else to look for Ideas – Part 7

 Blogging 101 – Where Else to look for Ideas – Part 7

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Last time we looked at the opportunities around what the last year brought; Everyday Activities and Hiatus, for inspiration or ideas for articles of interest that pertain to your particular passion.  Today we will have a look at a few more.

Free Writing

I have recently come across a style of blog writing called “Free Writing”.  Now apparently what you do is ensure that you will not be disturbed by phone calls or e-mails etc., decide on a small amount of time (like 10 or 15 minutes), sit down and just start writing.  Don’t worry about your mind wandering, just let your thoughts guide the writing.  Once you are done, you will obviously discard some of what you have written, but you will also be astounded by some of the profound things you have written.

Don’t be scared of your imagination.  Don’t be scared by the playfulness of your inner child, just have fun.

Movies

I often use movies, both the big screen and the small screen, that I have recently watched to illustrate a particular point that I am trying to make.  When your readers identify themselves with a favourite actor or actress or indeed even a favourite movie or show, they often “get” the point that you are trying to make a whole lot easier.

Read fiction

Read fiction – lots of it!  Sure it is also great to read factual type books, but fiction and fantasy are also wonderful.   Quite honestly, they inspire me and I am often amazed by the minds of the authors and how their brains work.  In particular authors like Dean Koontz, who is well known as a “horror story” writer, and what about fantasy writers like J K  Rawling and her tales of Harry Potter or J R R Tolkien and his Lord of the Rings series, who wrote of hobbits and fairies and made-up languages – what incredible imaginations they must have, what incredible minds . . . and their stories . . . that transport you to magical places.  They terrify, horrify, intrigue and mystify you, but most of all they entertain you and that is exactly what your blog should do – entertain your readers.

Nature

Years ago before everyone had a computer or the internet was available to many, I used to travel a great deal for work.  I also have a really great Russian friend Olga, who is married to a Greek chap and who lives on a tiny island in Greece.  We corresponded regularly and I introduced her to this incredible country by mail.  As I travelled and mostly drove to wherever I was going I would compose my letters to her in my head.  From the wide-open spaces and “Big Sky” country of the Free State to the magnificence of the Drakensburg and beauty of the Cape and the breathtaking views in the Eastern Transvaal.

Wherever I visited I bought picture postcards and then told the story of my journey there and what I saw around me.

More than 20 years later we still correspond regularly via SKYPE.  We chat often and she tells me that she often goes back to her bundle of letters and postcards from me, during the long cold winter months and imagines herself travelling those roads and seeing those sights.

I certainly learnt a lot about South Africa as I looked around me and I mean really looked.  There is nothing like having to describe something that you take for granted to make you open your eyes and really see!

Next time we will have a look at some more ideas to keep those blogs flowing. Until then “Happy Writing” and 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 

Networking 101 – Be Respectful

 Networking 101 – Be Respectful

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Craig Harrison says that the reason that Networking may not be working for you is because of the basic 9 mistakes that Networker’s make.  I have been going through these over the few weeks and let’s see if this is what is holding you back.

The ninth and final mistake that Networker’s make, according to Craig is “Disrespect the Tao of Networking.  Networker’s who are obsequious to those they believe can help them, yet rude to those they believe can’t help them, disrespect networking.  I’ve had networker’s disparage the last person they met whilst in conversation with me.  I was afraid to let them go for fear of what they would next say about me!  That’s antithetical to the spirit of networking.  One networker took my card and in front of me, wrote the letter A on it, and boasted he was “putting me in his A list.”  Let’s just say he was clearly the biggest A I met that night!”

I recently experienced someone who disrespected me and my time and quite frankly I am still peeved about the whole incident.  This person, let’s call him George, was happy to set up an appointment with me and I sat with him for an hour, listening carefully to what he did and who his target market was and then put together a list of people out of my database that I felt could help him or even, in some cases who he could pitch his product to.  It took another hour to sit down and mail him with the names and contact details of all these referrals and copy them in on the mail, telling them who he was and what it was that he did – so that they knew he would be contacting them.  I call this a warm lead.  

A few months later George and I met at another networking meeting.  After the meeting, he, another fellow and I sat having a drink and discussing how networking was “working” for us when George asked me if I had any additional folk that I could recommend him to.  I again made a list of people and a few days later repeated the exercise of mailing him and the people that I was recommending him to.

Imagine, my disgust when several months later George and I hooked up, again at a networking event.  George had had a few too many glasses of red wine and was clearly not in control of all of his faculties as he smilingly told me that he had not bothered to contact a single person that I had referred him to.  I was absolutely astonished, and he “sort of realising” his mistake, actually asked me to resend all the information and contact details that I had so painstakingly already sent to him.

This for me was the highest form of disrespect to me as an individual.  George had not only wasted my time, but in not contacting anyone, he had basically told me that my contacts and referrals were not worth the paper that they were written on.

You see, George had a mindset that he himself couldn’t get past.  George had decided in his own mind that I was not worthy because he could not sell me anything and therefore there was no one that I knew who could possibly be worthy of his product.  

The worst of it is that George believes that he is a networker of note!

Needless to say, George will never get a name or a telephone number out of me again, let alone the time of day.

Understand that although the individual with whom you meet, may not be able to use or need whatever product or whatever service that you are selling, they have, without a shadow of a doubt though, someone in their own database that will need that product or that service.  

Don’t be quick to judge someone.  You have no idea who they are and more importantly, you have no idea who they know.

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 

Business Tips – Common Mistakes Start-up Businesses Make - Part 2

 Business Tips – Common Mistakes Start-up Businesses Make -  Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

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

Undercharging for products and services.  

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

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

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

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

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

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

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

<<

Part 1

 http://www.viljoenconsulting.co.za/2011/06/business-tips-common-mistakes-start-up-businesses-make-part-1/

Inspiration – Powerful Words – Part 4

 Inspiration –  Powerful Words – Part 4

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Networking for me, is one of the most powerful words, for my business.  It conjures up meetings with new people and that always gives me the perception of new business and an abundance of new opportunities.

Networking is where I meet people who are like-minded, who share the same goals as I do and who are serious about business.

Remember though that Networking is something that you have to do on a continual basis and not just when you need new or additional business.  It’s easy when you are busy, not to Network, but that is when you need to Network the most – that is how you stay busy.

Refresh/Rebirth/Revitalize/Re-invent – whatever word you use to describe what it is when you change or add to what it is that you do in your business is also a very important word.  Looking back on my business I can see that it has morphed into something similar, but also very different to what it originally was and that’s not a bad thing.  As Entrepreneurs, we have to move and change with what the market requires or needs from us or we will wither and die.  Being able to change, quickly and often in a completely different direction is an Entrepreneurs greatest strength.  It stretches your mind, it makes you think and it makes you see and become aware of all the different opportunities and options that are available to you.

Next time we will have a look at the final two powerful words, until then remember 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

HR 101 – What To Do When . . . You Need to Compile a Job Description - Part 3

 HR 101 – What To Do When  . . . You Need to Compile a Job Description - Part 3

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd.

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

The one tip that we discussed last week was that the description of what the staff member needs to do has to be accurate and realistic.

The next tip is that the Job Description has to outline the job’s location, job purpose and content.  It also has to document the relationships involved, the authority involved and the controls and checks.

Let’s examine what this means.  Let’s take an Operations Manager’s position in a retail chain.  Now clearly in this type of scenario, there are many different types of Managers.  There would be store managers, Area or Regional Managers, Procurement Managers, Administration Managers,  (and that’s just for the stores, never mind what happens at Head Office.) and so on.  So if you were looking for an Operations Manager for the “stores” as opposed to an Operations Manager for Head Office or the Warehouse or Factory, this would need to be specified and the fact that it is a Manager that is required and not an operations assistant or an operation’s clerk is of vital importance.  This would highlight that the “job’s location in the organization” is one of the Operations Manager of the stores.  It stands to reason then, that all the Operations Managers in the company would have similar, but not necessarily the same tasks to fulfil, so these need to be itemized carefully.

The job purpose and content would of course be to “Manage the Operational” requirements of all the stores countrywide and take responsibility for how well the stores run.  This would include, but not be limited to, the responsibility of the staff, the sales of the stores and the reaching of targets, as well as the control of budgets and related financial movements.  The projection of the company image to the public is also something that should be taken into account.  It would include things like staff training on product and sales training, setting of budgets and targets, the responsibility of ensuring that Government legislation is complied with and that the HR and Labour issues are met and controlled.  Issues of safety and health would also need to be controlled, not only for the staff but also for clients. Merchandising of stock and procurement of supplies would also fall under the responsibility of the Operations Manager.  So be sure to list everything that needs to be done.

The relationships involved would include the staff who would report to the Operations Manager, who the Operations Manager would report into as well as what controls and checks would be in place to measure the Operations Manager performance. This would include, but not be limited to, targets and budgets being met and so on.  It would also be necessary to include things like the minimum requirements of the job, you would not employ someone straight out of school to perform this task, now would you? Issues such as, what are the minimum educational requirements (for example, a minimum of matric and a Management diploma or degree or a minimum of x number of years working experience in an Operational Environment or Managerial position) and so on.

Clearly, the expectation of both the holder of the job (in this case the Operations Manager) and their supervisor must be the same or similar.  They must equally understand exactly what is required when it is required and how the job must be done.  Often issues of “expectation” and “perception,” not meeting in the middle are what causes the most headaches and conflict within an organization.

Next week we will continue with some more tips on how to write a Job Description.

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

 

 

Blogging 101 – Where Else to Look for Ideas – Part 6

Blogging 101 – Where Else to look for Ideas – Part 6

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Last time we looked at the opportunities around television, being angry or upset and victory and defeat, for inspiration or ideas for articles of interest that pertain to your particular passion.  Today we will have a look at a few more.

Year

Share the lessons that you have learned during the course of the past year and maybe some of what you consider to be your greatest achievements.

In terms of ‘lessons learned', if you have had to learn the lesson the hard way, I am sure that there are many individuals out there who would really appreciate not having to go through the angst and anxiety themselves.

When you share your achievements it might be a good idea to take your readers on the journey, as you experienced it as there may be someone who is on a similar journey who will be motivated and inspired by your achievements.

Everyday Activities

For me, the ‘everyday activities’ are about the routine things that I have tasked myself to do every day, like for example the writing of my blog. It might be a good idea to explain ‘why’ you have chosen to perform these tasks on a daily basis and how you feel once the task has been completed.  Again for me, writing is extremely important as it is part of the creative side of me.  If I don’t write something every day, then I am not ‘balanced’ and that causes its own set of complications. So once my blog for the day is written I feel that I have released my creative energy for the day and that brings about a sense of peace and well-being – clearly a great way to start the day.

Hiatus

Believe me when I tell you that you can literally write something to death!  I know I did.  When I first started on my ‘blogging’ journey, all I wrote about was “The Power of Networking” – 170 odd blogs on Networking later, I found myself procrastinating every time I had to write another article and realized that I was all blogged out on the subject.  So I stopped writing about Networking and found something else to write about.  Am I still passionate about Networking – of course, I am, but I can find no more to write on the subject and it is still all there for anyone to read?

Also, sometimes the creative juices are just not there – don’t force it, give yourself a break for the day or several days for that matter – you can always come back to it and re-kindle your passion for writing.

Remember though, if you do not enjoy what you are doing, then what is the point!  Always have fun!

Next time we will have a look at some more ideas to keep those blogs flowing. Until then “Happy Writing” and 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 

Networking 101 – Effective Communication is Key

 Networking 101 – Effective Communication is Key

By Nikki Viljoen of N Viljoen Consulting (Pty) Ltd

Craig Harrison says that the reason that Networking may not be working for you is because of the basic 9 mistakes that Networker’s make.  I will be going through these over the next few weeks and let’s see if this is what is holding you back.

The eighth mistake, Craig says is “Slinging slang.  Many networkers profess to have excellent communication skills yet use slang or mispronounce big words when little words would have been better.  Beware the use of contractions, excessive acronyms and name-dropping too.  Don’t tell us what you’re gonna do!  I would like to hear what you are going to do instead.”

This is also one of my favourites and I must say I am often hugely amused when people used words that they don’t know how to pronounce and then given time, once I have worked out what they were trying to say, I have lost most of what they did say.

The one that springs to mind right now is the chap that said “a certain” instead of ascertain!  Obviously the meaning of “a certain” is completely different to ascertain and the result of that was that what he was saying made no sense at all.  By the time I had figured out that he had meant to say “ascertain”, I had lost the rest of his speech, on what he was trying to say and what he did.  Make no mistake, I had also lost the will to try and do any kind of networking or business with him as well.

I know that we live in the “new” South Africa and that there are 11 official languages out there – 10 of whom I have no idea how to communicate in, and yes I am often amazed that the fact that many people here can speak four or five of those languages, clearly I am not one of them.  The bottom line is that most business is conducted in English and if you cannot speak English so that it can be understood, by the people who do speak it, you will have a very difficult time and you will miss out on opportunities that will be snapped up by others.

Make sure that the words that you do want to use are pronounced clearly and in the manner in which they are supposed to be pronounced.  Practice what you want to say in your delivery speech and if need be, get someone who is fluent in English, to listen to your delivery and make corrections where needed.

Most of all have fun!  Having your own business should not be all stress and seriousness.   Remember why you went into business for yourself in the first place.  It’s an integral part of your life and you should be enjoying it to the hilt.

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

 

Business Tips – Common Mistakes Start-up Businesses Make – Part 1

 Business Tips – Common Mistakes Start-up Businesses Make – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

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

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

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

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

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

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

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

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

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

Part 2

>> http://www.viljoenconsulting.co.za/2011/07/business-tips-common-mistakes-start-up-businesses-make-part-2/ 

Business Tips – Common Mistakes Start-up Businesses Make – Part 1 By Nikki Viljoen – Viljoen Consulting (Pty) Ltd – June 2011 More and more I am coming across individuals, who want to start up a business, but who have no clue about what they are doing and who don’t have any kind of plan in place. Now having an idea is great, that is what starts the dream but quite honestly, not having any kind of plan in place is the same as committing suicide – business suicide! A business that does not have any kind of plan in place will often have neither direction nor focus and if that is the way that you are starting up, quite honestly, that is the quickest way to just close the doors. Many start-ups feel that the only reason to have a business plan in place is if they need to raise capital and they couldn’t be further from the truth. Having a documented business plan in place will help to direct the process of starting a new business and for those businesses that are already established, it will help them keep focused on what they want to achieve and by when they want it achieved. Your business plan however, is not a “once off” kind of document. It needs to be updated and changed as the business grows and as your requirements and needs change too. Being cocky and full of nonsense is definitely not going to endear you to anyone. So many newly started business owners, who are in the first flush of success (read: they are in their 2nd month of trading and the glow hasn’t worn off yet) think they are invincible. My advice to them is “Get a grip!” They often compare themselves to the greats out there and strutt their stuff, but as tempting as it is, they need to remember that they are still taking the first steps and adjust themselves to that. Don’t get me wrong, there is nothing wrong with dreaming that you will get there . . . one day, but you need to remain grounded, focused and with your feet firmly planted on the ground. Remember all big businesses started out as little businesses and although every journey starts with a single step – you have taken that first step and now you need to take the next, and then the next and then . . . you get my drift I am sure. Trying to sell yourself to your clients and suppliers as ‘established’, when you’re not, will only make them see you as dishonest and it will not work in your favour in the long run – so just don’t do it! Don’t try and be clever by extending credit to your clients when you have just started out – the reality is that you will end up with a lot of bad debt and clearly this will affect your cash flow in a negative way. Getting money in quickly and efficiently will allow you to go to the next step of your plan a lot quicker and without as much risk. Having to continuously wait for your money puts your business at risk and will cause you untold unnecessary stress. Next time we will have a look at some of the other common mistakes. Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za Part 2 >> http://www.viljoenconsulting.co.za/2011/07/business-tips-common-mistakes-start-up-businesses-make-part-2/

HR 101 – What to do When . . . You Need to Compile a Job Description - Part 2

 HR 101 – What to do When . . .  You Need to Compile a Job Description - Part 2

By Nikki Viljoen – N Viljoen Consulting (Pty) Ltd

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

Last time we had a look at the difference between an employee’s duties and the job description.

Here are some of (but not limited to) the things that you need to look at and take into account when you want to write a job description.

First of all, you need to be accurate and realistic about the requirements of the job.

Let me tell you a story.  Many years ago I was employed by an insurance company, to capture all their handwritten client data onto their computer system and in so doing, drag them kicking and screaming into the 20th Century.  They needed to get all of their client information into an electronic format if they were to remain in business and have any sort of competitive edge.  At the same time, their own business Administration was in a state of total chaos, and they needed proper procedures and controls put into place to bring some sort of order into their lives.

A few days after I started, I was asked to perform bookkeeping tasks.  Now although I am a qualified bookkeeper, I have never done a full set of books for a client and certainly never done a set of books in an accounting package.  You see they had seen that I was a qualified bookkeeper (as this information was on my CV) and they thought that they could get two jobs done for the price of one.

Don’t do that – the one job has nothing to do with the other and in this instance actually required two different people.

Make sure that what you require is realistic.

Then there is the case of the domestic worker – here is another story of how things go pear-shaped.  

You cannot believe the number of small businesses that have hired their domestic worker as the cleaner/housekeeper/tea lady.  This in itself is not a problem at all, in fact, I have done this myself.  What is the problem is that all of a sudden the domestic worker becomes the filing clerk and then the office administration clerk.

Now, giving someone the opportunity, if they are capable is absolutely fantastic.  Promoting someone to a position that is outside of their capabilities and then holding them accountable when they cannot cope or mess something up, is just plain irresponsible.  You cannot fit the Job Description to the person – the person must fit the Job Description.  So be honest about what the job entails and what your requirements are for that particular job and then find the person that fits those requirements.

Next time we will continue with some more tips on how to write a Job Description.

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

Blogging 101 – Where Else to look for Ideas – Part 5

 Blogging 101 – Where Else to look for Ideas – Part 5

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Last time we looked at the opportunities around Lateral Thinking and even the Wisdom of our Parents, for inspiration or ideas for articles of interest that pertain to your particular passion.  Today we will have a look at a few more.

Television

Now I know that there are many people out there who very seldom watch TV and whilst on some level I do understand their reasons, it is one of the ways that I relax and chill out.  Also, if I am really honest, there are several shows that I am particularly fond of (read absolutely hooked on).  The fact of the matter is that I learn from many of these shows, trying to figure out who the culprit is in all of the “who-dun-its” and learning the life lessons on the fantasy and esoteric type ones and just pure enjoyment and predicting the winners on the reality ones.  Yip, it’s official – I love watching TV.  There I said it!

Actually, I have used examples of what I watched and the lessons learned, in several of my blogs – two that come to mind immediately are when one of the contestants in a reality show dissed the opinion of one of the judges – that was a motivational piece on respect and the other was a woman who documented her every move (giving specifics like pictures and the name of the place that she was at and then the next place she was going to) on Facebook (I think it was  CSI or one of those profiling shows) – that was an early warning about the content we share online.

So very much like Celebrities, watching TV can spark an idea that you can link to your subject material to illustrate what you mean.

Anger or being Upset

Who would have thought that being upset about something that you have read/watched/listened to/seen (insert anything you like here) would produce some of the greatest articles that you have ever written?  I know that there is nothing like a good rant to clear the air and for me writing it all down transfers the anger (or indeed sadness) from my mind onto the paper.  It is one of the ways that I have of “releasing” the pain or the anger. Obviously, once you have calmed down, you need to edit it to ensure that you have all your ducks in a row and that you haven’t mentioned anyone’s name, or you could find yourself in trouble.  Again I have, on occasion used some of these writings to illustrate a point.  Two that come to mind immediately are the one I wrote on the unrealistic begging bowl type expectations of entrepreneurs or start-ups, especially around the issue of funding and the other was also about an unrealistic expectation of someone who expected everything to fall into her lap, or everything done for her, without her actually doing anything herself!  Both really got my blood boiling!

Victory or Defeat

This is one that I have used on many occasions and this year will be no exception.  A friend of mine said to me one evening during the course of the holidays, as we sat on her balcony sipping at an extremely cold beverage as we watched the sunset dip into the ocean “What were your highlights in the last year and what were your biggest regrets”?  I really had to think carefully about this and decided to split it into two separate camps – one being in my professional life and the other in my personal life.  In both instances. there were huge lessons learnt, but it was only in the “looking back” that the lessons became clear and this only re-iterates my conviction that we need to “look back and see where we have come from and what we have achieved” more often.  

This is a theme that I have written about on more than one occasion and clearly something that I will be writing about again, through the coming years.

Remember though, if you do not enjoy what you are doing, then what is the point!  Always have fun!

Next time we will have a look at some more ideas to keep those blogs flowing. Until then “Happy Writing” and 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