THE POWER OF NETWORKING
PART 94
By Nikki Viljoen of N Viljoen Consulting CC
Today I am going to share with you, one of the most effective ways to educate your networking partners about what it is and who it is, that you are looking for in a client.
Actually it’s awfully simple – you have to share! Yes it is actually as simple as that, you have to share with them the qualities of your current clientele.
Paint a visual picture or even a virtual picture of the people who you currently do work for. Tell them the top five things (you can tell them more next time to you know) that you do for those particular clients and why those clients need you do to those things for them.
If you can, arrange for the client to come and talk about the difficulties that they were having, how what you have done has made such a big change to their business.
Give some examples of measurements that been made to illustrate your point – for example, Ann said that she was closing one in forty five deals before she had some sales coaching by Tom and now she is closing four in five deals.
Try and do demonstrations where possible, when you can show people something it often has a far more profound effect than just talking about it. Have a power-point presentation done or bring a flipchart.
This kind of ‘show and tell’ interactions really help to ensure that your networking partners really understand the type and calibre of the person that you would like to have referred to you.
The more you show your ‘circle of influence’ the type of referral and the calibre of client that you desire, the more that you will find that the referrals that you begin to get will be of a much higher calibre than you currently (perhaps) have and the more chance you will have of closing the sale.
I have found that if I ‘enlighten’ the people that I want to get referrals from rather than trying to ‘sell’ them what I have, it makes it easier for them to understand what it is that I want.
So change your mindset when you go to a Networking event, don’t try and sell anyone anything, rather try and educate them on how what you do and/or sell can make a difference and then watch and see how the quality of your referrals will improve.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
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Wednesday, December 31, 2008
Tuesday, December 30, 2008
BUSINESS TIPS - Check if you are Blacklisted
BUSINESS TIPS
Check if You Are Blacklisted
By Nikki Viljoen – Viljoen Consulting December 2008.
We’ve all heard about the bad economy and how things are going to get worse before they get better. We’ve all heard about how this is a global recession and how everyone is going to feel the pinch. Well on a personal level, I am not sure that I actually ‘buy into’ that, however that is another subject for another day.
The reality of what is happening today is people are losing their jobs. People are feeling the ‘credit crunch’ and feeling a bit squeezed and people are being blacklisted despite what we are told about the NCA (National Credit Act) and the various rules and regulations.
The Credit Information Ombudsman has, to assist consumers, introduced the “Back to Basics” project.
According to Caroline Buthelezi, who is an Ombudsman spokesperson, “going back to basics was not just budgeting to survive the current financial turmoil, but emphasizing the importance of laying a solid foundation for the future.”
Not knowing where you are financially, both in you personal and business capacity, can have seriously detrimental consequences.
Buthelezi also said “Checking and know what goes on with your credit profile is part of the building blocks for the foundation.”
That said, it makes perfect sense to check your credit profiles at least once a year and to assist consumers in taking control of their credit history, the National Credit Act has decided that consumers are entitles to one free credit report a year. If consumers choose to have more than one, a maximum of R20.00 may be charged. How great is that?
As much as many of us would love to be able to save and then by everything we need for cash, the reality is that there will be times when we absolutely have to purchase items on credit and when we need the credit, our credit record will have to be a healthy one.
Please note that consumers who are battling to get out of debt can make use of Debt Counselors, who will assist them.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Check if You Are Blacklisted
By Nikki Viljoen – Viljoen Consulting December 2008.
We’ve all heard about the bad economy and how things are going to get worse before they get better. We’ve all heard about how this is a global recession and how everyone is going to feel the pinch. Well on a personal level, I am not sure that I actually ‘buy into’ that, however that is another subject for another day.
The reality of what is happening today is people are losing their jobs. People are feeling the ‘credit crunch’ and feeling a bit squeezed and people are being blacklisted despite what we are told about the NCA (National Credit Act) and the various rules and regulations.
The Credit Information Ombudsman has, to assist consumers, introduced the “Back to Basics” project.
According to Caroline Buthelezi, who is an Ombudsman spokesperson, “going back to basics was not just budgeting to survive the current financial turmoil, but emphasizing the importance of laying a solid foundation for the future.”
Not knowing where you are financially, both in you personal and business capacity, can have seriously detrimental consequences.
Buthelezi also said “Checking and know what goes on with your credit profile is part of the building blocks for the foundation.”
That said, it makes perfect sense to check your credit profiles at least once a year and to assist consumers in taking control of their credit history, the National Credit Act has decided that consumers are entitles to one free credit report a year. If consumers choose to have more than one, a maximum of R20.00 may be charged. How great is that?
As much as many of us would love to be able to save and then by everything we need for cash, the reality is that there will be times when we absolutely have to purchase items on credit and when we need the credit, our credit record will have to be a healthy one.
Please note that consumers who are battling to get out of debt can make use of Debt Counselors, who will assist them.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Monday, December 29, 2008
MOTIVATION - It Might Have Been
MOTIVATION – It Might Have Been
By Nikki Viljoen of N Viljoen Consulting CC
John Greenleaf Whittier is the man who wrote today’s quote which goes “For all sad words of tongue & Pen, the saddest are these ‘It might have been’”.
I am often asked if I had to die right now, if I had any regrets. On the face of it, it’s a really simple question but look beneath the surface and it becomes a whole lot more.
For many, there is little more than the drudgery of life. Putting one step in front of the other with no thought to anything other than remaining barely alive.
For many, there is nothing more than the hope of finding a few hours of work in order to put food on the table.
For others, there is nothing than the hope that your favorite intersection has not been taken by someone else, and you are forced to beg elsewhere in the heat of the sun, or the cold of winter, through the storms and winds. Forced to look at people who either show sympathy by giving you a few coins or disgust at the fact that you are begging or many who don’t even see you as human – to them you are invisible.
For many, who merely exist from day to day, there aren’t even any dreams of what could be or what might be, all they have to look forward to tomorrow is exactly what they had today – nothing!
I wonder what they would say if they were asked if they had any regrets? I wonder, if their very lives are something that they regret?
What about those who have been physically and mentally damaged by violence, by crime, by life – would they even understand what a regret is, or are they locked into a world so very far from ours?
So, to get back to the original question – do I have regrets, I don’t think so. There are many things that I have done, that in hindsight, I would have probably done very differently. But actual regrets – no – I think everything that was meant to happen, has happened at exactly the right time and space that it was supposed to have happened. Any sooner and I would not have been able to cope and any later and I would have been off in another direction.
So, you see – I am one of the lucky ones. I can dream, I have hope and although I may have been slightly ‘damaged’ along the way, by life – I am still essentially just exactly who I am meant to be.
Will I change – of course I will! I will continue to grow, I will continue to dream and I will continue to move forward – just as I always have.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
By Nikki Viljoen of N Viljoen Consulting CC
John Greenleaf Whittier is the man who wrote today’s quote which goes “For all sad words of tongue & Pen, the saddest are these ‘It might have been’”.
I am often asked if I had to die right now, if I had any regrets. On the face of it, it’s a really simple question but look beneath the surface and it becomes a whole lot more.
For many, there is little more than the drudgery of life. Putting one step in front of the other with no thought to anything other than remaining barely alive.
For many, there is nothing more than the hope of finding a few hours of work in order to put food on the table.
For others, there is nothing than the hope that your favorite intersection has not been taken by someone else, and you are forced to beg elsewhere in the heat of the sun, or the cold of winter, through the storms and winds. Forced to look at people who either show sympathy by giving you a few coins or disgust at the fact that you are begging or many who don’t even see you as human – to them you are invisible.
For many, who merely exist from day to day, there aren’t even any dreams of what could be or what might be, all they have to look forward to tomorrow is exactly what they had today – nothing!
I wonder what they would say if they were asked if they had any regrets? I wonder, if their very lives are something that they regret?
What about those who have been physically and mentally damaged by violence, by crime, by life – would they even understand what a regret is, or are they locked into a world so very far from ours?
So, to get back to the original question – do I have regrets, I don’t think so. There are many things that I have done, that in hindsight, I would have probably done very differently. But actual regrets – no – I think everything that was meant to happen, has happened at exactly the right time and space that it was supposed to have happened. Any sooner and I would not have been able to cope and any later and I would have been off in another direction.
So, you see – I am one of the lucky ones. I can dream, I have hope and although I may have been slightly ‘damaged’ along the way, by life – I am still essentially just exactly who I am meant to be.
Will I change – of course I will! I will continue to grow, I will continue to dream and I will continue to move forward – just as I always have.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
MOTIVATION - It Might Have Been
MOTIVATION – It Might Have Been
By Nikki Viljoen of N Viljoen Consulting CC
John Greenleaf Whittier is the man who wrote today’s quote which goes “For all sad words of tongue & Pen, the saddest are these ‘It might have been’”.
I am often asked if I had to die right now, if I had any regrets. On the face of it, it’s a really simple question but look beneath the surface and it becomes a whole lot more.
For many, there is little more than the drudgery of life. Putting one step in front of the other with no thought to anything other than remaining barely alive.
For many, there is nothing more than the hope of finding a few hours of work in order to put food on the table.
For others, there is nothing than the hope that your favorite intersection has not been taken by someone else, and you are forced to beg elsewhere in the heat of the sun, or the cold of winter, through the storms and winds. Forced to look at people who either show sympathy by giving you a few coins or disgust at the fact that you are begging or many who don’t even see you as human – to them you are invisible.
For many, who merely exist from day to day, there aren’t even any dreams of what could be or what might be, all they have to look forward to tomorrow is exactly what they had today – nothing!
I wonder what they would say if they were asked if they had any regrets? I wonder, if their very lives are something that they regret?
What about those who have been physically and mentally damaged by violence, by crime, by life – would they even understand what a regret is, or are they locked into a world so very far from ours?
So, to get back to the original question – do I have regrets, I don’t think so. There are many things that I have done, that in hindsight, I would have probably done very differently. But actual regrets – no – I think everything that was meant to happen, has happened at exactly the right time and space that it was supposed to have happened. Any sooner and I would not have been able to cope and any later and I would have been off in another direction.
So, you see – I am one of the lucky ones. I can dream, I have hope and although I may have been slightly ‘damaged’ along the way, by life – I am still essentially just exactly who I am meant to be.
Will I change – of course I will! I will continue to grow, I will continue to dream and I will continue to move forward – just as I always have.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
By Nikki Viljoen of N Viljoen Consulting CC
John Greenleaf Whittier is the man who wrote today’s quote which goes “For all sad words of tongue & Pen, the saddest are these ‘It might have been’”.
I am often asked if I had to die right now, if I had any regrets. On the face of it, it’s a really simple question but look beneath the surface and it becomes a whole lot more.
For many, there is little more than the drudgery of life. Putting one step in front of the other with no thought to anything other than remaining barely alive.
For many, there is nothing more than the hope of finding a few hours of work in order to put food on the table.
For others, there is nothing than the hope that your favorite intersection has not been taken by someone else, and you are forced to beg elsewhere in the heat of the sun, or the cold of winter, through the storms and winds. Forced to look at people who either show sympathy by giving you a few coins or disgust at the fact that you are begging or many who don’t even see you as human – to them you are invisible.
For many, who merely exist from day to day, there aren’t even any dreams of what could be or what might be, all they have to look forward to tomorrow is exactly what they had today – nothing!
I wonder what they would say if they were asked if they had any regrets? I wonder, if their very lives are something that they regret?
What about those who have been physically and mentally damaged by violence, by crime, by life – would they even understand what a regret is, or are they locked into a world so very far from ours?
So, to get back to the original question – do I have regrets, I don’t think so. There are many things that I have done, that in hindsight, I would have probably done very differently. But actual regrets – no – I think everything that was meant to happen, has happened at exactly the right time and space that it was supposed to have happened. Any sooner and I would not have been able to cope and any later and I would have been off in another direction.
So, you see – I am one of the lucky ones. I can dream, I have hope and although I may have been slightly ‘damaged’ along the way, by life – I am still essentially just exactly who I am meant to be.
Will I change – of course I will! I will continue to grow, I will continue to dream and I will continue to move forward – just as I always have.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
Friday, December 26, 2008
WHAT TO DO WHEN . . . . Your Staff Want To Strike - Part 6
ARTICLE 16
WHAT TO DO WHEN . . . . Your Staff Want to Strike – Part 6
By Nikki Viljoen – N Viljoen Consulting CC.
So what is a ‘lockout’ actually. A ‘lockout’ is when the employer, locks the striking employees, out of the office/warehouse/factory/store etc. There are two types of ‘Lock Out’ – a ‘defensive’ and an ‘offensive’ ‘lock out’. An employer is not obliged to remunerate an employee for services that the employee does not render during a protected strike or a protected lock-out,
In terms of the Labour Relations Act of 1995, Section 64 (which is the section that deals specifically with “Lock outs”, there are several reasons when the ‘lock out’ can be a really useful tool in there is a strike.
The union has to give ‘Notice of Intention to Strike’ and when they do this you are entitled to issue a “Lock Out Notice’ which means once the strike begins – so does the ‘lock out.’
Let’s have a look at the benefits of a ‘lock out’.
Well firstly a benefit would be that the employer does not have to pay the employee for the duration of the strike.
Secondly, the union officials and their shop stewards very often do not advise the employees of the employers right to ‘lock out’ and often the employees only find this out after the fact, which places them on the ‘back foot’ so to speak. The Lock Out notice must be placed on the Company Notice board so that all employees are aware of what action the employer is going to take.
Giving a notice of lock out changes the ‘power play’ quite drastically. The striking employees are no longer in control of when they come back to work.
A defensive ‘lock out’ must always be in response to a strike, because the employees can not return to work until such time as they have dropped their demands.
Be careful though, the opposite of a ‘defensive’ ‘lock out’ is an ‘offensive’ ‘lock out’ and that occurs if you declare a ‘lock out’ that is not in response to a strike. This would then mean that your employees would have to accept the employers demand to come back to work. If you declare an ‘offensive’ ‘lock out’, you will not be allowed to use any replacement labour and this is in terms of the Labour Relations Act of 1995 section 75(1)(b).
An ‘offensive’ ‘lock out’ lets the striking employees and the union officials know, just how serious you are about the offer that you have put on the table. An ‘offensive’ ‘lock out’ should only be used together with negotiations on an ‘ongoing’ basis and it is highly likely that this will then result in a settlement which should bring the strike to an end.
So make sure that you know and understand exactly which ‘lock out’ you are declaring and why. Declaring the wrong one could cause you a lot of wasted time and energy, not to mention costs incurred.
The bottom line of course is that prevention is always better than cure and although it costs the employer ‘an arm and a leg’, the reality of the situation is that it also costs the employee, usually a lot more than what they bargained for.
So no matter how deadlocked talks appear to be, it is in your own best interests to continue to talk to union officials and shop stewards. They too, more often than not, would also like to see a settlement sooner rather than later.
Next week we will have a look at Unprotected or prohibited strikes.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
WHAT TO DO WHEN . . . . Your Staff Want to Strike – Part 6
By Nikki Viljoen – N Viljoen Consulting CC.
So what is a ‘lockout’ actually. A ‘lockout’ is when the employer, locks the striking employees, out of the office/warehouse/factory/store etc. There are two types of ‘Lock Out’ – a ‘defensive’ and an ‘offensive’ ‘lock out’. An employer is not obliged to remunerate an employee for services that the employee does not render during a protected strike or a protected lock-out,
In terms of the Labour Relations Act of 1995, Section 64 (which is the section that deals specifically with “Lock outs”, there are several reasons when the ‘lock out’ can be a really useful tool in there is a strike.
The union has to give ‘Notice of Intention to Strike’ and when they do this you are entitled to issue a “Lock Out Notice’ which means once the strike begins – so does the ‘lock out.’
Let’s have a look at the benefits of a ‘lock out’.
Well firstly a benefit would be that the employer does not have to pay the employee for the duration of the strike.
Secondly, the union officials and their shop stewards very often do not advise the employees of the employers right to ‘lock out’ and often the employees only find this out after the fact, which places them on the ‘back foot’ so to speak. The Lock Out notice must be placed on the Company Notice board so that all employees are aware of what action the employer is going to take.
Giving a notice of lock out changes the ‘power play’ quite drastically. The striking employees are no longer in control of when they come back to work.
A defensive ‘lock out’ must always be in response to a strike, because the employees can not return to work until such time as they have dropped their demands.
Be careful though, the opposite of a ‘defensive’ ‘lock out’ is an ‘offensive’ ‘lock out’ and that occurs if you declare a ‘lock out’ that is not in response to a strike. This would then mean that your employees would have to accept the employers demand to come back to work. If you declare an ‘offensive’ ‘lock out’, you will not be allowed to use any replacement labour and this is in terms of the Labour Relations Act of 1995 section 75(1)(b).
An ‘offensive’ ‘lock out’ lets the striking employees and the union officials know, just how serious you are about the offer that you have put on the table. An ‘offensive’ ‘lock out’ should only be used together with negotiations on an ‘ongoing’ basis and it is highly likely that this will then result in a settlement which should bring the strike to an end.
So make sure that you know and understand exactly which ‘lock out’ you are declaring and why. Declaring the wrong one could cause you a lot of wasted time and energy, not to mention costs incurred.
The bottom line of course is that prevention is always better than cure and although it costs the employer ‘an arm and a leg’, the reality of the situation is that it also costs the employee, usually a lot more than what they bargained for.
So no matter how deadlocked talks appear to be, it is in your own best interests to continue to talk to union officials and shop stewards. They too, more often than not, would also like to see a settlement sooner rather than later.
Next week we will have a look at Unprotected or prohibited strikes.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Thursday, December 25, 2008
SALES - How to Increase Yours Sales Income - Part 4
Good Morning bloggers - a very Merry Xmas to you all.
SALES
How to Increase Your Sales Income – Part 4
By Nikki Viljoen – Viljoen Consulting December 2008.
How about taking your clients wants and needs into consideration and making the shopping experience that much more pleasurable for them?
I am not a natural shopper. To be honest, I absolutely hate shopping. For me wandering around the shops picking things up to put them down again because they are not quite right is a complete waste of time and only serves as an irritation. So being able to locate exactly what was advertised in the right colour and in the right size without a huge fuss is always first prize.
So remove all the difficulties and ‘red tape’ for your clients. If you’ve advertised it, make sure that you have sufficient stock. Make sure it is visible and that your clients have easy access to it. Putting it on the top shelf which means that I have to find a ladder to get to it is not a good idea and only means that I will walk out without making the purchase.
Make sure that you have sufficient staff to help the customers. Making me wait for hours because you don’t have sufficient staff to process the sale, will result in no sale from me. The frustration of waiting and endless queuing will make me walk out.
Don’t ask customers to complete pages and pages of questions. I am very aware of identity fraud and I don’t like to give my personal details to and sundry.
Don’t ask me to ‘come back later’ or ‘come back this afternoon’ or ‘come back next month’. I don’t have the time and/or the inclination to go backwards and forwards to your shop/office.
Do ask me if I would like something else if you don’t have the exact item that I am looking for, but if I say ‘No Thank You’ don’t try and manipulate me into buying something that I don’t really want. You will not only lose the sale, but the customer as well.
Don’t try and engage me in a conversation where you try and tell me your whole life story. As much as you may feel that your story is very interesting/exciting/humorous (insert what you would like here), quite frankly, I am here to purchase something, nothing else and quite honestly, I am probably not interested at all. I will walk out in the middle of your story – you will think I am rude and in all probability, I will never come back to your store/office to buy anything again – just in case you try and bore me to death again.
Don’t tell me about all of your difficult clients – I have often been told that I a difficult client! I don’t see it like that at all. As far as I am concerned, I am very easy going . . . as long as you give me exactly what it is that I want! By telling me about your difficult clients, you are telling me that you do not meet the needs of your clients and/or their expectations and I will not want to ‘share’ their experience.
If I ask a question that you don’t know the answer to, don’t try and waffle your way through and give me useless, incorrect information. Rather be honest and tell me that you ‘don’t know’. Ask me if I would like to wait until you find out the answer to offer to call me with the relevant information as soon as you have found the answer. Then actually call me!
Do always make sure that you are hygienic in your personal capacity. If you have body odour, bad breath or dirty fingernails, I will walk out.
Remember that word of mouth is a very powerful medium and that negative or bad referrals travel faster and to more people than good ones.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
SALES
How to Increase Your Sales Income – Part 4
By Nikki Viljoen – Viljoen Consulting December 2008.
How about taking your clients wants and needs into consideration and making the shopping experience that much more pleasurable for them?
I am not a natural shopper. To be honest, I absolutely hate shopping. For me wandering around the shops picking things up to put them down again because they are not quite right is a complete waste of time and only serves as an irritation. So being able to locate exactly what was advertised in the right colour and in the right size without a huge fuss is always first prize.
So remove all the difficulties and ‘red tape’ for your clients. If you’ve advertised it, make sure that you have sufficient stock. Make sure it is visible and that your clients have easy access to it. Putting it on the top shelf which means that I have to find a ladder to get to it is not a good idea and only means that I will walk out without making the purchase.
Make sure that you have sufficient staff to help the customers. Making me wait for hours because you don’t have sufficient staff to process the sale, will result in no sale from me. The frustration of waiting and endless queuing will make me walk out.
Don’t ask customers to complete pages and pages of questions. I am very aware of identity fraud and I don’t like to give my personal details to and sundry.
Don’t ask me to ‘come back later’ or ‘come back this afternoon’ or ‘come back next month’. I don’t have the time and/or the inclination to go backwards and forwards to your shop/office.
Do ask me if I would like something else if you don’t have the exact item that I am looking for, but if I say ‘No Thank You’ don’t try and manipulate me into buying something that I don’t really want. You will not only lose the sale, but the customer as well.
Don’t try and engage me in a conversation where you try and tell me your whole life story. As much as you may feel that your story is very interesting/exciting/humorous (insert what you would like here), quite frankly, I am here to purchase something, nothing else and quite honestly, I am probably not interested at all. I will walk out in the middle of your story – you will think I am rude and in all probability, I will never come back to your store/office to buy anything again – just in case you try and bore me to death again.
Don’t tell me about all of your difficult clients – I have often been told that I a difficult client! I don’t see it like that at all. As far as I am concerned, I am very easy going . . . as long as you give me exactly what it is that I want! By telling me about your difficult clients, you are telling me that you do not meet the needs of your clients and/or their expectations and I will not want to ‘share’ their experience.
If I ask a question that you don’t know the answer to, don’t try and waffle your way through and give me useless, incorrect information. Rather be honest and tell me that you ‘don’t know’. Ask me if I would like to wait until you find out the answer to offer to call me with the relevant information as soon as you have found the answer. Then actually call me!
Do always make sure that you are hygienic in your personal capacity. If you have body odour, bad breath or dirty fingernails, I will walk out.
Remember that word of mouth is a very powerful medium and that negative or bad referrals travel faster and to more people than good ones.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Wednesday, December 24, 2008
THE POWER OF NETWORKING - PART 93
THE POWER OF NETWORKING
PART 93
By Nikki Viljoen of N Viljoen Consulting CC
On the table today is simplifying the components of your business. Remember that people who go to networking meetings are going to be listening to a great number of people, all in the space of a minimum of time. It’s natural to want to tell everybody who attends, all 300 things that you do in your business. It’s just too much information – so please do your best to resist the urge!
Even if you attend one meeting a week, that’s 52 times you will be given the opportunity to tell people who you are and the wonderful bouquet of products and/or services. At any given meeting though, try and limit your product and/or services to just one.
Take the time to explain in detail, educate your networking partners – create visual posters or images in their minds. Let them ‘feel’ and see and smell and touch your products and/or service. Demonstrate your product or tell them stories about the value of your service. Explain in detail the value add properties and the consequences of what can/will/might go wrong if people don’t use your product and/or service or what it is that they might be missing out on.
Each week, talk about a different product or a different aspect of your business. Each week get detailed and ‘up close and personal’. Make your stories and tales really interesting and full of useful information, so that they cannot wait for the next meeting and/or encounter.
Make them want to know more about what it is that you do.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
PART 93
By Nikki Viljoen of N Viljoen Consulting CC
On the table today is simplifying the components of your business. Remember that people who go to networking meetings are going to be listening to a great number of people, all in the space of a minimum of time. It’s natural to want to tell everybody who attends, all 300 things that you do in your business. It’s just too much information – so please do your best to resist the urge!
Even if you attend one meeting a week, that’s 52 times you will be given the opportunity to tell people who you are and the wonderful bouquet of products and/or services. At any given meeting though, try and limit your product and/or services to just one.
Take the time to explain in detail, educate your networking partners – create visual posters or images in their minds. Let them ‘feel’ and see and smell and touch your products and/or service. Demonstrate your product or tell them stories about the value of your service. Explain in detail the value add properties and the consequences of what can/will/might go wrong if people don’t use your product and/or service or what it is that they might be missing out on.
Each week, talk about a different product or a different aspect of your business. Each week get detailed and ‘up close and personal’. Make your stories and tales really interesting and full of useful information, so that they cannot wait for the next meeting and/or encounter.
Make them want to know more about what it is that you do.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Tuesday, December 23, 2008
BUSINESS TIPS - Using Your Voice
BUSINESS TIPS
Using your Voice
By Nikki Viljoen – Viljoen Consulting December 2008.
It is said that “You never get a second chance to make a good impression and it only takes 15 seconds to make that impression.”
Rightly or wrongly the fact of the matter is that it’s the ‘visual’ – all of you – yes warts and all, that ultimately contributes to the creation of that impression. It’s your appearance, your attitude (portrayed by your body language) and even your voice that people first get to see and/or hear, and they then make a judgment on who you are, based on that. Really crazy, but that is the truth of the matter.
Much has been stated on your appearance and there are style and image consultants galore, who will mold you and dress you and ensure that you are wearing the right clothes, in the right colours, with the right shoes and the right accessories, the right make up and the right hair colour/cut/shape (insert what you will here).
Still more has been said about the eating of food and the diets that go along with them to get you into some sort of shape (other than round) and that will greatly enhance your appearance.
Don’t for a minute forget all the coaching, counseling and hours that you spend, at great expense I might add, getting a good a healthy attitude adjustment. Making sure that your head is not only screwed on tightly, but also facing in the correct direction.
On a personal note though, there is nothing more strange and off-putting for me, than meeting the most beautiful woman on the planet and then when she opens her mouth to speak, out comes something that can only be described as, a high pitched squeak in a clearly phony American/English/French (insert what you want here) accent! Or how about the very tall, extremely well built, slightly bronzed next James Bond, with the dashing smile and rippling muscles, who opens his mouth only to sound like my neighbour’s 13 year old son, whose voice is changing.
Quite honestly, when I am confronted with voices that sound like these, I am so busy trying to keep a straight face and not burst out into gales of laughter, that I have missed whatever it is that they are trying to say.
The point of the whole article is to highlight the fact that it is clear that good vocals and good speech also is of vital importance to the package that is you and will contribute greatly in the selling the concept, service and/or product that you are trying to sell.
Phony accents and/or voices that are clearly ‘put on’ do huge amounts of damage to your credibility and therefore to your value. If you are putting on a fake accent and/or voice – what else about you is fake and phony.
Imagine hearing a presentation done in an unnaturally high pitched voice with a phony accent. How much of that particular presentation would you actually hear and how much of what you have heard will you actually believe?
Research shows that people who converse in a ‘rich resonant voice, in the lower frequencies’, irrespective of whether they are male or female, are usually see to be more sincere and/or credible.
So, if you have a problem with a voice that is high pitched or nasal sounding or monotonous and flat, perhaps it would be a good idea to invest in some professional assistance and advice – for the sake of your business.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Using your Voice
By Nikki Viljoen – Viljoen Consulting December 2008.
It is said that “You never get a second chance to make a good impression and it only takes 15 seconds to make that impression.”
Rightly or wrongly the fact of the matter is that it’s the ‘visual’ – all of you – yes warts and all, that ultimately contributes to the creation of that impression. It’s your appearance, your attitude (portrayed by your body language) and even your voice that people first get to see and/or hear, and they then make a judgment on who you are, based on that. Really crazy, but that is the truth of the matter.
Much has been stated on your appearance and there are style and image consultants galore, who will mold you and dress you and ensure that you are wearing the right clothes, in the right colours, with the right shoes and the right accessories, the right make up and the right hair colour/cut/shape (insert what you will here).
Still more has been said about the eating of food and the diets that go along with them to get you into some sort of shape (other than round) and that will greatly enhance your appearance.
Don’t for a minute forget all the coaching, counseling and hours that you spend, at great expense I might add, getting a good a healthy attitude adjustment. Making sure that your head is not only screwed on tightly, but also facing in the correct direction.
On a personal note though, there is nothing more strange and off-putting for me, than meeting the most beautiful woman on the planet and then when she opens her mouth to speak, out comes something that can only be described as, a high pitched squeak in a clearly phony American/English/French (insert what you want here) accent! Or how about the very tall, extremely well built, slightly bronzed next James Bond, with the dashing smile and rippling muscles, who opens his mouth only to sound like my neighbour’s 13 year old son, whose voice is changing.
Quite honestly, when I am confronted with voices that sound like these, I am so busy trying to keep a straight face and not burst out into gales of laughter, that I have missed whatever it is that they are trying to say.
The point of the whole article is to highlight the fact that it is clear that good vocals and good speech also is of vital importance to the package that is you and will contribute greatly in the selling the concept, service and/or product that you are trying to sell.
Phony accents and/or voices that are clearly ‘put on’ do huge amounts of damage to your credibility and therefore to your value. If you are putting on a fake accent and/or voice – what else about you is fake and phony.
Imagine hearing a presentation done in an unnaturally high pitched voice with a phony accent. How much of that particular presentation would you actually hear and how much of what you have heard will you actually believe?
Research shows that people who converse in a ‘rich resonant voice, in the lower frequencies’, irrespective of whether they are male or female, are usually see to be more sincere and/or credible.
So, if you have a problem with a voice that is high pitched or nasal sounding or monotonous and flat, perhaps it would be a good idea to invest in some professional assistance and advice – for the sake of your business.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Monday, December 22, 2008
MOTIVATION - My Stones
MOTIVATION – MY STONES
By Nikki Viljoen of N Viljoen Consulting CC
William Arthur Ward says “We can throw stones, complain about them, stumble on them, climb over them or build with them.”
Well here we are again and it’s all about the choices that we make to any of the situations that we may find ourselves in.
A huge debate has been raging on one of the forums that I used to belong to. You see as in most aspects of life, there were several people who were very active and prolific on the forum. They all came from different backgrounds, different cultures, different religions and so on.
Whilst discussion took place over a varied number of issues, usually these could become quite colourful as people voiced their opinions and their beliefs and it was easy to see that people were really passionate about what they did and what they believed in.
Where the whole thing started to go pear shaped (well for me anyway) is when certain individuals would not allow people their own opinions in their own beliefs (or lack there of) and started to almost force their own religious beliefs onto everyone else, belittling the beliefs of everyone else and quoting chapter and verse at every inappropriate opportunity.
Pretty soon every discussion ended up having some sort of religious debate and the own/founder of the forum stepped in and censorship was born.
Constantly members complained about what could be or couldn’t be discussed as the offending few continued their barrage of religious innuendo, until many members just quietly left, no longer wanting to be party in the foray!
Several members bravely continued to try and keep the forum going and new discussions were started only to be promptly invaded by the quoting of scripture either offered up as a solution and/or given as the cause of whatever happened. It became so that you couldn’t go anywhere on the forum without tripping up or falling over a scripture of some sort.
The founder of the forum, whilst implementing rules, failed to enforce said rules and the offending few just continued at every opportunity, climbing over every discussion and every debate, quoting scripture after scripture, chapter after chapter and verse after verse. Remember this a Business forum, where issues around business were discussed and so every discussion from ‘Crime affecting Business’ to ‘staff behaviour’ came under some sort of religious attack until finally, in disgust and frustration, I have picked my stones, that I was trying to build a community with, and I have left.
I will use my stones to build another community. One whose members will, hopefully also use their stones, to build the forum into a community with a strong foundation, good business ethics, a value of friendship, an understanding and respect of the opinions of others and their right to think differently.
A community who can share ideas, debate issues, care about one another and laugh together.
But if they don’t – remember my stones can always be gathered up, tucked back under my arm and moved to greener pastures.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
By Nikki Viljoen of N Viljoen Consulting CC
William Arthur Ward says “We can throw stones, complain about them, stumble on them, climb over them or build with them.”
Well here we are again and it’s all about the choices that we make to any of the situations that we may find ourselves in.
A huge debate has been raging on one of the forums that I used to belong to. You see as in most aspects of life, there were several people who were very active and prolific on the forum. They all came from different backgrounds, different cultures, different religions and so on.
Whilst discussion took place over a varied number of issues, usually these could become quite colourful as people voiced their opinions and their beliefs and it was easy to see that people were really passionate about what they did and what they believed in.
Where the whole thing started to go pear shaped (well for me anyway) is when certain individuals would not allow people their own opinions in their own beliefs (or lack there of) and started to almost force their own religious beliefs onto everyone else, belittling the beliefs of everyone else and quoting chapter and verse at every inappropriate opportunity.
Pretty soon every discussion ended up having some sort of religious debate and the own/founder of the forum stepped in and censorship was born.
Constantly members complained about what could be or couldn’t be discussed as the offending few continued their barrage of religious innuendo, until many members just quietly left, no longer wanting to be party in the foray!
Several members bravely continued to try and keep the forum going and new discussions were started only to be promptly invaded by the quoting of scripture either offered up as a solution and/or given as the cause of whatever happened. It became so that you couldn’t go anywhere on the forum without tripping up or falling over a scripture of some sort.
The founder of the forum, whilst implementing rules, failed to enforce said rules and the offending few just continued at every opportunity, climbing over every discussion and every debate, quoting scripture after scripture, chapter after chapter and verse after verse. Remember this a Business forum, where issues around business were discussed and so every discussion from ‘Crime affecting Business’ to ‘staff behaviour’ came under some sort of religious attack until finally, in disgust and frustration, I have picked my stones, that I was trying to build a community with, and I have left.
I will use my stones to build another community. One whose members will, hopefully also use their stones, to build the forum into a community with a strong foundation, good business ethics, a value of friendship, an understanding and respect of the opinions of others and their right to think differently.
A community who can share ideas, debate issues, care about one another and laugh together.
But if they don’t – remember my stones can always be gathered up, tucked back under my arm and moved to greener pastures.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
Friday, December 19, 2008
WHAT TO DO WHEN . . . . Your Staff Want To Strike - Part 5
ARTICLE 16
WHAT TO DO WHEN . . . . Your Staff Want to Strike – Part 5
By Nikki Viljoen – N Viljoen Consulting CC.
Replacement labour is the topic on the table today. Let’s have a look at the reality of a strike.
A strike can have devastating financial implications to a company. Look at the results of some of the strikes that took place over the last couple of years.
Think about Pick ‘n Pay – the last really bad one that I remember is when shoppers were confronted with Toi Toi-ing staff as they tried to enter the stores to do their shopping. I remember Jeremy Mansfield of Highveld Stereo trying to make light of the situation by saying something along the lines of “I have never felt so welcome in all of my life – there were what seemed like hundreds of people singing and dancing as they came towards me with arms open wide to greet me and welcome me into the store!” Ja Boet – and I also believe in Santa Claus and the tooth fairy! Jokes aside, many customers did not want to be personally ‘welcomed’ into the store and despite assurances that they would not be harmed in any way, they chose to shop elsewhere. I have no doubt that millions of Rands worth of turnover was lost by the company.
Now in this situation, Pick n’ Pay would have no alternative but to hire replacement labour if they wanted to have any kind of turnover at all and if they did not want to close their doors to the public.
It is a given however, that replacement staff, irrespective of whether they have been supplied by a labour broker and/or sourced by yourselves or even if you use your own staff from other areas, will invariably be subjected to intimidation and even physical and/or verbal abuse in some instances. So you need to ensure that they necessary precautionary steps are in place to ensure that your replacement labour is protected.
You can (and perhaps should) for example install some additional security surveillance such as CCTV type camera and video set ups or hire additional independent security. Whatever you do, inform the union of what you are doing or intend to do in order to re-enforce their responsibility to ensure that they control their members.
Be aware though, that all of these additional bits and pieces will have a financial implication too. Don’t for a minute think that a strike is not going to cost you and ultimately prevention is always better that cure (and often a lot cheaper in the long run).
Next week we will look at what a ‘lock out’ is and the benefits and/or implications of having one.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
WHAT TO DO WHEN . . . . Your Staff Want to Strike – Part 5
By Nikki Viljoen – N Viljoen Consulting CC.
Replacement labour is the topic on the table today. Let’s have a look at the reality of a strike.
A strike can have devastating financial implications to a company. Look at the results of some of the strikes that took place over the last couple of years.
Think about Pick ‘n Pay – the last really bad one that I remember is when shoppers were confronted with Toi Toi-ing staff as they tried to enter the stores to do their shopping. I remember Jeremy Mansfield of Highveld Stereo trying to make light of the situation by saying something along the lines of “I have never felt so welcome in all of my life – there were what seemed like hundreds of people singing and dancing as they came towards me with arms open wide to greet me and welcome me into the store!” Ja Boet – and I also believe in Santa Claus and the tooth fairy! Jokes aside, many customers did not want to be personally ‘welcomed’ into the store and despite assurances that they would not be harmed in any way, they chose to shop elsewhere. I have no doubt that millions of Rands worth of turnover was lost by the company.
Now in this situation, Pick n’ Pay would have no alternative but to hire replacement labour if they wanted to have any kind of turnover at all and if they did not want to close their doors to the public.
It is a given however, that replacement staff, irrespective of whether they have been supplied by a labour broker and/or sourced by yourselves or even if you use your own staff from other areas, will invariably be subjected to intimidation and even physical and/or verbal abuse in some instances. So you need to ensure that they necessary precautionary steps are in place to ensure that your replacement labour is protected.
You can (and perhaps should) for example install some additional security surveillance such as CCTV type camera and video set ups or hire additional independent security. Whatever you do, inform the union of what you are doing or intend to do in order to re-enforce their responsibility to ensure that they control their members.
Be aware though, that all of these additional bits and pieces will have a financial implication too. Don’t for a minute think that a strike is not going to cost you and ultimately prevention is always better that cure (and often a lot cheaper in the long run).
Next week we will look at what a ‘lock out’ is and the benefits and/or implications of having one.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Thursday, December 18, 2008
SALES - How to Increase Yours Sales Income - Part 3
SALES
How to Increase Your Sales Income – Part 3
By Nikki Viljoen – Viljoen Consulting December 2008.
What I am going to say now, may be offensive to some at first glance, but I promise to explain myself during the course of the article.
Take advantage of the failure of others!
Now that may sound really hard and even very mean, but think about it for a while.
Let’s step back for a moment. We all understand that education equals knowledge. I am equally sure that we have all heard about “knowledge is power”. I would like to suggest however, that it is what we do with that knowledge that makes us powerful.
When we look at businesses to see why they have failed, specifically businesses that have been selling the same or similar products and/or services as ours, it should be so that we can learn from their mistakes and hopefully thereby avoid the same failure and not to ‘gloat’.
We need to look at what they were doing and where/how it went wrong and then we need to find ways to ensure that whatever they did to make it fall over – is not something that we do.
Questions like (but not limited to);
· who was their target market
· what was the quality of their product and/or services
· what was the value of their product and/or service
· what was the value add to their customers of their product and/or services
· was their product and/or service unique and different to that of their competitors and if so how?
Remember, the more you fail on your market testing, the more you actually succeed in the long run. So keep testing your market all the time. Analyze the results and try to improve the value and the value add to your target market all the time. Even when you have a “winning formula”, you still need to continually move forward, change, morph and evolve.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
How to Increase Your Sales Income – Part 3
By Nikki Viljoen – Viljoen Consulting December 2008.
What I am going to say now, may be offensive to some at first glance, but I promise to explain myself during the course of the article.
Take advantage of the failure of others!
Now that may sound really hard and even very mean, but think about it for a while.
Let’s step back for a moment. We all understand that education equals knowledge. I am equally sure that we have all heard about “knowledge is power”. I would like to suggest however, that it is what we do with that knowledge that makes us powerful.
When we look at businesses to see why they have failed, specifically businesses that have been selling the same or similar products and/or services as ours, it should be so that we can learn from their mistakes and hopefully thereby avoid the same failure and not to ‘gloat’.
We need to look at what they were doing and where/how it went wrong and then we need to find ways to ensure that whatever they did to make it fall over – is not something that we do.
Questions like (but not limited to);
· who was their target market
· what was the quality of their product and/or services
· what was the value of their product and/or service
· what was the value add to their customers of their product and/or services
· was their product and/or service unique and different to that of their competitors and if so how?
Remember, the more you fail on your market testing, the more you actually succeed in the long run. So keep testing your market all the time. Analyze the results and try to improve the value and the value add to your target market all the time. Even when you have a “winning formula”, you still need to continually move forward, change, morph and evolve.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Wednesday, December 17, 2008
THE POWER OF NETWORKING - PART 92
THE POWER OF NETWORKING
PART 92
By Nikki Viljoen of N Viljoen Consulting CC
Today I continue with my tips on the ‘how to’ of getting your dream referrals from your ‘Circle of Influence’ or Network.
Last week we looked at teaching our Networks about what our “Dream Referral” looks like. This week I would like to talk about ‘getting what we ask for’.
Now I’m sure that brought a smile to many faces, as we are often told to ‘be careful what you ask for’ and yet this is exactly what it is that I want to discuss.
We often hear people at Networking meetings, asking us to refer them to “Anyone who wants and/or who is looking for . . . .” or how about “Everyone who want and/or who is looking for . . . .” I am sure you remember exactly who they are and also exactly what the product and/or service is that they want you to refer on their behalf. You don’t! You really don’t! Ok, let me explain why you don’t.
It appears that when we hear to many ‘anyone’s’ and ‘everyone’s’ we tune out because we know so many anyone’s and/or everyone’s that it becomes too much and we end up not referring ‘anyone’ to ‘everyone’, or is it the other way around? I am led to believe that this has something to do with information overload, and let’s face it – there is a huge amount of irrelevant information out there. So in order for us to access the correct information we need to ask specific questions.
So too it is with referrals! If you want the right referral, you have to be specific with your request when asking for referrals.
Be specific about who you would like to do work for and the kind of work that you want to do, so that your Networking partners have a clear picture in their minds of the type of person/referral that you are wanting.
Remember though – Be careful what you wish for!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
PART 92
By Nikki Viljoen of N Viljoen Consulting CC
Today I continue with my tips on the ‘how to’ of getting your dream referrals from your ‘Circle of Influence’ or Network.
Last week we looked at teaching our Networks about what our “Dream Referral” looks like. This week I would like to talk about ‘getting what we ask for’.
Now I’m sure that brought a smile to many faces, as we are often told to ‘be careful what you ask for’ and yet this is exactly what it is that I want to discuss.
We often hear people at Networking meetings, asking us to refer them to “Anyone who wants and/or who is looking for . . . .” or how about “Everyone who want and/or who is looking for . . . .” I am sure you remember exactly who they are and also exactly what the product and/or service is that they want you to refer on their behalf. You don’t! You really don’t! Ok, let me explain why you don’t.
It appears that when we hear to many ‘anyone’s’ and ‘everyone’s’ we tune out because we know so many anyone’s and/or everyone’s that it becomes too much and we end up not referring ‘anyone’ to ‘everyone’, or is it the other way around? I am led to believe that this has something to do with information overload, and let’s face it – there is a huge amount of irrelevant information out there. So in order for us to access the correct information we need to ask specific questions.
So too it is with referrals! If you want the right referral, you have to be specific with your request when asking for referrals.
Be specific about who you would like to do work for and the kind of work that you want to do, so that your Networking partners have a clear picture in their minds of the type of person/referral that you are wanting.
Remember though – Be careful what you wish for!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Tuesday, December 16, 2008
PREPARING YOUR BUSINESS FOR SALE - Dreams and Nightmares
PREPARING YOUR BUSINESS FOR SALE
Dreams and Nightmares by Mark Corke
Good Morning Bloggers
For a while, with his permission, I will be posting articles from Mark Corke of Suitegum.
Mark is a Business Broker, who writes articles on, and runs seminars on “Preparing you Business for Sale”. Should you wish to register for some of Mark’s free articles and tips, Here is the link.
Both Mark and I are of the opinion that ensuring that your Business is Prepared for Sale at all times will ensure that your business always commands the highest value. It actually increases the value of your Business quite considerably.
It hasn't happened to me for many years now, and long may it stay that way... The last time I experienced the terror, I was a much younger man. The shame, the embarrassment and cold sweat. Who knows? Who saw? Who cares? I would wake up in my bed, eyes wide in the dark, sweating and terrified. How the hell had I managed to get to the bottom of my road without my pants?.
"Fear is not an unknown emotion to us." Neil Armstrong
Have you ever had the dream where you get all dolled up to go out somewhere important? You find yourself walking down the road, talking excitedly with your mates as you all head off to the same party. As you approach your destination you gradually become aware that all is not quite right. Something is missing; your shirt is clean, you have a jersey or jacket for the cooler evening. But why the breeze? You subconsciously adjust your tie; and then it dawns on you.
The weird thing is that none of your mates has noticed until then. It's only once you grab down to cover your genitals that the others notice. And then they really notice, and the laughter starts. You wake with a start. Sweating.
I'm no psychologist, but the metaphor should not be wasted on us: Perhaps this is an early warning to us for our later lives; our pension lives maybe? As small business people, so many of us take the view that we cannot afford to make monthly payments towards pension funds and savings accounts, opting instead to invest in our own businesses. The aim of course is to ultimately sell the business, and use the proceeds to look after ourselves into our old age. For others who do save or contribute to pension schemes, the planned sale of a business will add even more wealth.
A wonderful ideal, and one that works brilliantly for many small business owners. For some it works better than they would ever have imagined, and they are better off than they thought to the tune of several millions, as their businesses sell for way more than they planned. And then of course all too many discover that they left home without their trousers. None of their friends tell them so, and the first they know about their shame is at the gates to the party.
Contrast that if you will, with a client of ours who had been made an offer for the purchase of half his shares in his business by a BEE group. With no idea as to the real value of his business, he approached Suitegum to ascertain a market value of the business. The result was a number in the region of R3M. Given that he had been offered R6M for 50%, we advised him to grab the deal. Understandably, the purchaser's bank declined to finance the deal, and it fell through. So at annual intervals, the business owner revisited the valuation, and made several improvements to the manner in which the business was conducted
Values jumped from the original R3M to more than R20M over the next few years, and it is at this level that we are likely to help him conclude a deal before the end of the year. Please don't become intimidated by these figures in the millions. Last year I struggled to find more than R100,000 in the value of a small retail and wholesale enterprise. It was not run very well, and the reporting left a lot to be desired. I am finishing off a revaluation today, and am stunned by the improvement brought about by some simple interventions. Today that business will command a price in excess of R500,000. Without the valuation last year, it would more likely have deteriorated further.
Boyzangirls, it is such a simple matter to take stock of where you are every few years. A sort of business health check if you want. The cost is negligible in the greater scheme of things, and that very health check can provide you with valuable insights to making your current wealth vehicle a little bit faster and more comfortable. It may even alert you to an early exit and reinvestment before you have that girl in the pig tails examining your own little pig tail too far from decent cover.
Where to start? Prepare your financial statements properly, and get them up to date. It's that simple, and it is a legal requirement any way. Worry about consultants and valuations later.
Cheers
Mark Corke
Rob has been receiving a steady stream of competitor research questionnaires, but he still has a way to go before he has a good representative sample. He also still has several give away prizes to temp you to complete the questionnaire. Remember that he will be providing a copy of the results to all participants. This will give you, as a co-respondent, valuable information about how other respondents conduct their competitor research. To participate, download and save the file. Then open it and complete the questions as they are presented. The file automatically sends itself to Rob when completed.
I am running a new seminar series in Johannesburg, and in Cape Town and Durban during the course of the year. Please join me to learn how to Prepare your Business For Sale and Present Your Business For Transfer.
I hope to meet up with you there.
For additional information and course dates, please visit Mark and the Suitegum team on http://www.suitegum.co.za
Dreams and Nightmares by Mark Corke
Good Morning Bloggers
For a while, with his permission, I will be posting articles from Mark Corke of Suitegum.
Mark is a Business Broker, who writes articles on, and runs seminars on “Preparing you Business for Sale”. Should you wish to register for some of Mark’s free articles and tips, Here is the link.
Both Mark and I are of the opinion that ensuring that your Business is Prepared for Sale at all times will ensure that your business always commands the highest value. It actually increases the value of your Business quite considerably.
It hasn't happened to me for many years now, and long may it stay that way... The last time I experienced the terror, I was a much younger man. The shame, the embarrassment and cold sweat. Who knows? Who saw? Who cares? I would wake up in my bed, eyes wide in the dark, sweating and terrified. How the hell had I managed to get to the bottom of my road without my pants?.
"Fear is not an unknown emotion to us." Neil Armstrong
Have you ever had the dream where you get all dolled up to go out somewhere important? You find yourself walking down the road, talking excitedly with your mates as you all head off to the same party. As you approach your destination you gradually become aware that all is not quite right. Something is missing; your shirt is clean, you have a jersey or jacket for the cooler evening. But why the breeze? You subconsciously adjust your tie; and then it dawns on you.
The weird thing is that none of your mates has noticed until then. It's only once you grab down to cover your genitals that the others notice. And then they really notice, and the laughter starts. You wake with a start. Sweating.
I'm no psychologist, but the metaphor should not be wasted on us: Perhaps this is an early warning to us for our later lives; our pension lives maybe? As small business people, so many of us take the view that we cannot afford to make monthly payments towards pension funds and savings accounts, opting instead to invest in our own businesses. The aim of course is to ultimately sell the business, and use the proceeds to look after ourselves into our old age. For others who do save or contribute to pension schemes, the planned sale of a business will add even more wealth.
A wonderful ideal, and one that works brilliantly for many small business owners. For some it works better than they would ever have imagined, and they are better off than they thought to the tune of several millions, as their businesses sell for way more than they planned. And then of course all too many discover that they left home without their trousers. None of their friends tell them so, and the first they know about their shame is at the gates to the party.
Contrast that if you will, with a client of ours who had been made an offer for the purchase of half his shares in his business by a BEE group. With no idea as to the real value of his business, he approached Suitegum to ascertain a market value of the business. The result was a number in the region of R3M. Given that he had been offered R6M for 50%, we advised him to grab the deal. Understandably, the purchaser's bank declined to finance the deal, and it fell through. So at annual intervals, the business owner revisited the valuation, and made several improvements to the manner in which the business was conducted
Values jumped from the original R3M to more than R20M over the next few years, and it is at this level that we are likely to help him conclude a deal before the end of the year. Please don't become intimidated by these figures in the millions. Last year I struggled to find more than R100,000 in the value of a small retail and wholesale enterprise. It was not run very well, and the reporting left a lot to be desired. I am finishing off a revaluation today, and am stunned by the improvement brought about by some simple interventions. Today that business will command a price in excess of R500,000. Without the valuation last year, it would more likely have deteriorated further.
Boyzangirls, it is such a simple matter to take stock of where you are every few years. A sort of business health check if you want. The cost is negligible in the greater scheme of things, and that very health check can provide you with valuable insights to making your current wealth vehicle a little bit faster and more comfortable. It may even alert you to an early exit and reinvestment before you have that girl in the pig tails examining your own little pig tail too far from decent cover.
Where to start? Prepare your financial statements properly, and get them up to date. It's that simple, and it is a legal requirement any way. Worry about consultants and valuations later.
Cheers
Mark Corke
Rob has been receiving a steady stream of competitor research questionnaires, but he still has a way to go before he has a good representative sample. He also still has several give away prizes to temp you to complete the questionnaire. Remember that he will be providing a copy of the results to all participants. This will give you, as a co-respondent, valuable information about how other respondents conduct their competitor research. To participate, download and save the file. Then open it and complete the questions as they are presented. The file automatically sends itself to Rob when completed.
I am running a new seminar series in Johannesburg, and in Cape Town and Durban during the course of the year. Please join me to learn how to Prepare your Business For Sale and Present Your Business For Transfer.
I hope to meet up with you there.
For additional information and course dates, please visit Mark and the Suitegum team on http://www.suitegum.co.za
Monday, December 15, 2008
LATEST SCAM - THIS IS SERIOUS
From: Operations Communication Centre Sent: 12 December 2008 12:11 PMSubject: Ops alert (MasterCard Scam)
Here is the latest scam used by fraudsters:
An SMS is addressed to a client, reflecting his/her ID number, postal address and e-mail address
(all correct), and then reads…
"would you fax the front and back of your credit card to 0866456323, Online Festive Season Proctection.
Standard Bank Limited"
(Note the spelling error - Proctection.)
We have confirmed this with Card Division, and it is indeed fraudulent.
Here is the latest scam used by fraudsters:
An SMS is addressed to a client, reflecting his/her ID number, postal address and e-mail address
(all correct), and then reads…
"would you fax the front and back of your credit card to 0866456323, Online Festive Season Proctection.
Standard Bank Limited"
(Note the spelling error - Proctection.)
We have confirmed this with Card Division, and it is indeed fraudulent.
MOTIVATION - The Price of Excellence
MOTIVATION – The Price of Excellence
By Nikki Viljoen of N Viljoen Consulting CC
William Arthur Ward says “the Price of Excellence is discipline. The Cost of mediocrity is disappointment.”
I cannot begin to tell you about the number of clients who I see on a daily basis who are faced with the disappointment that comes because of their own mediocrity.
Oh don’t for a minute think that they are disappointed or angry or even resentful because they see themselves as the problem or that they have been mediocre in their businesses or with their staff or with the VAT/Tax man. Oh no! Their disappointment is always because of something and/or someone else. It couldn’t possibly be because of what they may have or may not have done!
The reality of course is usually very different. It is entirely because of their own actions or more often than not, their inactions.
Often though (to give them a little benefit of the doubt), their action and/or inaction is directly attributable to their lack of knowledge on the subject. Again, in all truthfulness, this is also directly attributable to their own lack of discipline. I can actually see everybody’s hackles rising as they read these words. But actually that is exactly what it is – lack of discipline because inadequate research has been done and it’s been a case of, “Jump right in honey, the water is just fine!”
You see too often we have an idea for a product and/or business and without doing the proper research or understanding the full consequences of our actions and/or inactions, we just jump right in and then of course when we fail, it’s everybody else’s fault, definitely not ours. We didn’t have the self discipline to sit down, do the research, work out the numbers, calculate the risks against the rewards and then make an informed decision.
Of course, there are those of us who have the information and the know the risks but who choose not to work in a disciplined environment, or who want to ‘cheat’ the system or who thrive on taking risks. For those too, it’s also everyone else’s fault when they get ‘caught out’. It’s the VAT/tax man who has killed their business – not their lack of discipline to manage their VAT or tax. Or how about the Department of Labour, who has imposed a huge fine for non compliance, that may result in the business folding – not their unfair Labour practice or lack of discipline in following the rules, that protect both them and their staff.
In both of these instances (and thousands of others that result in the failure of a business), the implementation of simple policies and procedures and the discipline needed to follow them, would have been sufficient to avoid the problems and their subsequent consequences altogether.
But no – it’s easier to apportion blame than it is to admit that we were in the wrong!
It’s easier to ‘go with the flow’ than it is to set the boundaries and limits and be disciplined enough to stay within these parameters.
Be warned though – those of you who just ‘go with the flow’ usually end up learning and also paying for the hardest lesson of all – the lesson of failure and disappointment.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
By Nikki Viljoen of N Viljoen Consulting CC
William Arthur Ward says “the Price of Excellence is discipline. The Cost of mediocrity is disappointment.”
I cannot begin to tell you about the number of clients who I see on a daily basis who are faced with the disappointment that comes because of their own mediocrity.
Oh don’t for a minute think that they are disappointed or angry or even resentful because they see themselves as the problem or that they have been mediocre in their businesses or with their staff or with the VAT/Tax man. Oh no! Their disappointment is always because of something and/or someone else. It couldn’t possibly be because of what they may have or may not have done!
The reality of course is usually very different. It is entirely because of their own actions or more often than not, their inactions.
Often though (to give them a little benefit of the doubt), their action and/or inaction is directly attributable to their lack of knowledge on the subject. Again, in all truthfulness, this is also directly attributable to their own lack of discipline. I can actually see everybody’s hackles rising as they read these words. But actually that is exactly what it is – lack of discipline because inadequate research has been done and it’s been a case of, “Jump right in honey, the water is just fine!”
You see too often we have an idea for a product and/or business and without doing the proper research or understanding the full consequences of our actions and/or inactions, we just jump right in and then of course when we fail, it’s everybody else’s fault, definitely not ours. We didn’t have the self discipline to sit down, do the research, work out the numbers, calculate the risks against the rewards and then make an informed decision.
Of course, there are those of us who have the information and the know the risks but who choose not to work in a disciplined environment, or who want to ‘cheat’ the system or who thrive on taking risks. For those too, it’s also everyone else’s fault when they get ‘caught out’. It’s the VAT/tax man who has killed their business – not their lack of discipline to manage their VAT or tax. Or how about the Department of Labour, who has imposed a huge fine for non compliance, that may result in the business folding – not their unfair Labour practice or lack of discipline in following the rules, that protect both them and their staff.
In both of these instances (and thousands of others that result in the failure of a business), the implementation of simple policies and procedures and the discipline needed to follow them, would have been sufficient to avoid the problems and their subsequent consequences altogether.
But no – it’s easier to apportion blame than it is to admit that we were in the wrong!
It’s easier to ‘go with the flow’ than it is to set the boundaries and limits and be disciplined enough to stay within these parameters.
Be warned though – those of you who just ‘go with the flow’ usually end up learning and also paying for the hardest lesson of all – the lesson of failure and disappointment.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
Friday, December 12, 2008
WHAT TO DO WHEN . . . . Your Staff Want To Strike - Part 4
ARTICLE 16
WHAT TO DO WHEN . . . . Your Staff Want to Strike – Part 4
By Nikki Viljoen – N Viljoen Consulting CC.
This week we will look at some tips on ‘how to’ control a strike action.
Often what happens within an organization is that one the union has given notice of intention to strike to Management, the employees then go on a mission to increase their numbers and support. They do this by asking non-union member to join them in the strike. This usually becomes intimidation and as we have all often seen in the past this can lead to violence.
Make sure that the unions are advised, as soon as the notice of intention to strike has been given, that they are obliged to ensure that all non-union members are not intimidated in any way. Advise them that it is their responsibility to ensure that they control their members.
Put a notice on notice boards and/or send out an e-mail or a memo to all the staff stating that you have a ‘zero tolerance’ policy in terms of intimidation. Make sure that they understand that any employee who intimidates another employee will be requested to attend a disciplinary hearing and that if they are found guilty of intimidation, they may be dismissed.
Be aware that proving intimidation is very difficult as the only witness that you may have is the person who was actually intimidated and they often don’t want to give evidence at a disciplinary as this may result in further reprisals against them.
Misconduct, in the form of violence and/or verbal abuse, should also not be tolerated at all, during a strike. Again all employees and the union should be notified in writing, that under no circumstances with misconduct in the form of violence, verbal abuse and/or destruction of property will not be tolerated and anyone found in the Act of Misconduct will face disciplinary procedures and those found guilty may dismissed. It’s also a good idea to make sure that the union understand that any losses incurred as a direct result of misconduct, will be for their account and that the union will be held liable. Ensure that the union officials understand that any form of misconduct and/or intimidation will result in the Company approaching the Labour Court for an urgent interdict.
If possible get a written undertaking from the union acknowledging that they have a duty to control their members during a strike.
If any acts of misconduct and/or intimidation occur during the strike, make sure that disciplinary hearings are undertaken after the strike is over. It is of the utmost importance that you do this in order to set a precedent, irrespective of whether the strike had the desired effect or not. This re-iterates your stand on misconduct and/or intimidation and sends a clear message that you have ‘zero’ tolerance in terms of intimidation and/or misconduct.
As usual, prevention is better than cure and so it is a good idea to ensure that you have all of these policies in place before you are in a ‘strike’ type situation. Put your rules in place, or negotiate your rules with the union about strike related conduct before you are in any kind of dispute and when you are more likely to get a reasonable resolution in place. Obviously, if there is a pre-agreement in place and this is breached in any way, you have to take action – but having a pre-agreement in place means that you are in a much stronger position to do so.
Next week we will look at replacement labour.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
WHAT TO DO WHEN . . . . Your Staff Want to Strike – Part 4
By Nikki Viljoen – N Viljoen Consulting CC.
This week we will look at some tips on ‘how to’ control a strike action.
Often what happens within an organization is that one the union has given notice of intention to strike to Management, the employees then go on a mission to increase their numbers and support. They do this by asking non-union member to join them in the strike. This usually becomes intimidation and as we have all often seen in the past this can lead to violence.
Make sure that the unions are advised, as soon as the notice of intention to strike has been given, that they are obliged to ensure that all non-union members are not intimidated in any way. Advise them that it is their responsibility to ensure that they control their members.
Put a notice on notice boards and/or send out an e-mail or a memo to all the staff stating that you have a ‘zero tolerance’ policy in terms of intimidation. Make sure that they understand that any employee who intimidates another employee will be requested to attend a disciplinary hearing and that if they are found guilty of intimidation, they may be dismissed.
Be aware that proving intimidation is very difficult as the only witness that you may have is the person who was actually intimidated and they often don’t want to give evidence at a disciplinary as this may result in further reprisals against them.
Misconduct, in the form of violence and/or verbal abuse, should also not be tolerated at all, during a strike. Again all employees and the union should be notified in writing, that under no circumstances with misconduct in the form of violence, verbal abuse and/or destruction of property will not be tolerated and anyone found in the Act of Misconduct will face disciplinary procedures and those found guilty may dismissed. It’s also a good idea to make sure that the union understand that any losses incurred as a direct result of misconduct, will be for their account and that the union will be held liable. Ensure that the union officials understand that any form of misconduct and/or intimidation will result in the Company approaching the Labour Court for an urgent interdict.
If possible get a written undertaking from the union acknowledging that they have a duty to control their members during a strike.
If any acts of misconduct and/or intimidation occur during the strike, make sure that disciplinary hearings are undertaken after the strike is over. It is of the utmost importance that you do this in order to set a precedent, irrespective of whether the strike had the desired effect or not. This re-iterates your stand on misconduct and/or intimidation and sends a clear message that you have ‘zero’ tolerance in terms of intimidation and/or misconduct.
As usual, prevention is better than cure and so it is a good idea to ensure that you have all of these policies in place before you are in a ‘strike’ type situation. Put your rules in place, or negotiate your rules with the union about strike related conduct before you are in any kind of dispute and when you are more likely to get a reasonable resolution in place. Obviously, if there is a pre-agreement in place and this is breached in any way, you have to take action – but having a pre-agreement in place means that you are in a much stronger position to do so.
Next week we will look at replacement labour.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Thursday, December 11, 2008
SALES - How to Increase Yours Sales Income - Part 2
SALES
How to Increase Your Sales Income – Part 2
By Nikki Viljoen – Viljoen Consulting December 2008.
Today we are again looking at some of the different ways in which we can increase our Sales Income.
Education is key! Educating your target market or market ignorance is what it is generally called. Let’s face it people, unless you tell people what it is that you sell, be it product and/or service, how will they know?
So get yourself a blog and write/post articles and/or tips related to your product and/or service. Give people useful tips and/or information – share ideas or get a discussion going that explores different ideas or gives answers to related challenges.
Get satisfied customers to tell their stories of what made them use your product and/or service and how it worked for them, what were the benefits, what were the challenges and how these were overcome. Try to get your stories published in the newspapers or magazines or even on the radio or television. You would be absolutely amazed how ‘hungry’ for material all of these mediums are and even if you don’t get paid to tell your stories or share your tips and advice, get them to publish it under your branding – get your name out there.
Use direct mail or direct sales or direct telesales to get your message across. Some people understand pictures better than words, some like to hear rather than read and some prefer a combination of all. Whichever you choose – make sure that you get your message across and that people understand the value of what it is that you are selling.
Educate your target market.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
How to Increase Your Sales Income – Part 2
By Nikki Viljoen – Viljoen Consulting December 2008.
Today we are again looking at some of the different ways in which we can increase our Sales Income.
Education is key! Educating your target market or market ignorance is what it is generally called. Let’s face it people, unless you tell people what it is that you sell, be it product and/or service, how will they know?
So get yourself a blog and write/post articles and/or tips related to your product and/or service. Give people useful tips and/or information – share ideas or get a discussion going that explores different ideas or gives answers to related challenges.
Get satisfied customers to tell their stories of what made them use your product and/or service and how it worked for them, what were the benefits, what were the challenges and how these were overcome. Try to get your stories published in the newspapers or magazines or even on the radio or television. You would be absolutely amazed how ‘hungry’ for material all of these mediums are and even if you don’t get paid to tell your stories or share your tips and advice, get them to publish it under your branding – get your name out there.
Use direct mail or direct sales or direct telesales to get your message across. Some people understand pictures better than words, some like to hear rather than read and some prefer a combination of all. Whichever you choose – make sure that you get your message across and that people understand the value of what it is that you are selling.
Educate your target market.
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Wednesday, December 10, 2008
THE POWER OF NETWORKING - PART 91
THE POWER OF NETWORKING
PART 91
By Nikki Viljoen of N Viljoen Consulting CC
Often when we entrepreneurs try to build relationships within ‘our circle of influence’, we try and ‘sell’ ourselves and/or our products to those individuals with the express hope that they will in turn ‘sell’ us to their respective ‘circle of influence’ and we will receive qualified, consistent and dynamic leads. This in theory is how it should work.
That said, in order to optimize what our needs are we should add several steps along the way, in order to ensure that the leads that we get are of the highest quality. Let’s face it – none of us want a ‘bad client’! So for the next couple of weeks I am going to concentrate on ‘getting the best referrals and/or clients’ from your Networking relationships.
Let’s presume that your product and/or service is unique, (let me say here that it doesn’t matter how many competitors you have, you have made it unique because of the level of service or the value adds or what have you) and it (the product and/or service) has made a profound difference in the life of one of your clients and let’s call her Sue.
In any event, Sue is immensely grateful for the product and/or service that you have provided her and as far as she is concerned you have single handedly literally ‘saved her life,’ and she is not at all shy about telling the whole world about how it is that you came to ‘save her life’. I have no doubt at all that we all have a “Sue” somewhere in our businesses.
So now here is what you do – at the very next Networking meeting that you go to (and all subsequent ones to), get Sue to go along with you – get her to tell everyone what you sold/did that was so ordinarily extraordinary.
For all intent and purposes, Sue is your dream client, she is your dream referral and everybody can see what she looks like. An ordinary person – just like everybody else, someone who has the normal requirements - just like everyone else, but to whom your product and/or service has made an incredible difference. Now think about it for a moment – if your product and/or service has made such a difference in her life, imagine what it can do for theirs?
If your ‘Sue’ cannot manage to go to the meeting with you – there is nothing at all to stop you from describing your ‘Sue’ and her reaction to the difference and/or the actual difference that you made itself. The more detail you can give them about ‘Sue’s’ experience and the kind of person that she is (in other words your target market) the greater the understanding that your collaborative networking partners will have in recognising your prospective clients when they meet them outside of the Networking meeting.
Hiding your particular light under a bushel when you want to generate referrals that lead to sales is not a good idea.
So don’t be scared to tell people just how great your product and/or service is. No-one will know unless you actually tell them!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
PART 91
By Nikki Viljoen of N Viljoen Consulting CC
Often when we entrepreneurs try to build relationships within ‘our circle of influence’, we try and ‘sell’ ourselves and/or our products to those individuals with the express hope that they will in turn ‘sell’ us to their respective ‘circle of influence’ and we will receive qualified, consistent and dynamic leads. This in theory is how it should work.
That said, in order to optimize what our needs are we should add several steps along the way, in order to ensure that the leads that we get are of the highest quality. Let’s face it – none of us want a ‘bad client’! So for the next couple of weeks I am going to concentrate on ‘getting the best referrals and/or clients’ from your Networking relationships.
Let’s presume that your product and/or service is unique, (let me say here that it doesn’t matter how many competitors you have, you have made it unique because of the level of service or the value adds or what have you) and it (the product and/or service) has made a profound difference in the life of one of your clients and let’s call her Sue.
In any event, Sue is immensely grateful for the product and/or service that you have provided her and as far as she is concerned you have single handedly literally ‘saved her life,’ and she is not at all shy about telling the whole world about how it is that you came to ‘save her life’. I have no doubt at all that we all have a “Sue” somewhere in our businesses.
So now here is what you do – at the very next Networking meeting that you go to (and all subsequent ones to), get Sue to go along with you – get her to tell everyone what you sold/did that was so ordinarily extraordinary.
For all intent and purposes, Sue is your dream client, she is your dream referral and everybody can see what she looks like. An ordinary person – just like everybody else, someone who has the normal requirements - just like everyone else, but to whom your product and/or service has made an incredible difference. Now think about it for a moment – if your product and/or service has made such a difference in her life, imagine what it can do for theirs?
If your ‘Sue’ cannot manage to go to the meeting with you – there is nothing at all to stop you from describing your ‘Sue’ and her reaction to the difference and/or the actual difference that you made itself. The more detail you can give them about ‘Sue’s’ experience and the kind of person that she is (in other words your target market) the greater the understanding that your collaborative networking partners will have in recognising your prospective clients when they meet them outside of the Networking meeting.
Hiding your particular light under a bushel when you want to generate referrals that lead to sales is not a good idea.
So don’t be scared to tell people just how great your product and/or service is. No-one will know unless you actually tell them!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za
Tuesday, December 09, 2008
PREPARE YOUR BUSINESS FOR SALE - Strategies for Demise
PREPARE YOUR BUSINESS FOR SALE
Strategies for Demise by Mark Corke
Mark is a Business Broker, who writes articles on, and runs seminars on “Preparing you Business for Sale”. Should you wish to register for some of Mark’s free articles and tips, Here is the link.
Both Mark and I are of the opinion that ensuring that your Business is Prepared for Sale at all times will ensure that your business always commands the highest value. It actually increases the value of your Business quite considerably.
I sat in a strategy meeting of one of our clients last Friday. The discussion revolved around how the business could improve its BBBEE scorecard.
After some discussion with opinions swinging first this way, then that, it was resolved that from 1 October the business would only purchase from suppliers who were able to demonstrate a level 4 or better scorecard themselves. The result of this policy change is that our client will benefit its own scorecard exactly the way the designers of the system intended, as its procurement score is lifted. But what are the consequences?
"Kites rise highest against the wind, not with it. " Winston Churchill
Discussions over the merits and demerits of the BBBEE legislation aside; what struck me was the ease with which the decision was made. A motion was tabled, a debate ensued, and a major policy change was made. I found my thoughts wandering to the well being of the business’s current suppliers. What will be the effect on those suppliers’ employees and their wider families, come the end of October?
It was so easy: An economic and political imperative will become the destiny of other small businesses very soon. None of them have any warning that they will no longer be servicing this customer of theirs.
Then on Saturday, a week after the strategy meeting above, I was in Durban and was asked to meet with a guy who wants to sell his business. Fairly standard stuff, I know, but bear with me: As the discussion progressed, it transpired that his biggest customer accounts for an astounding 80% of his turnover.
Now that may make for easy invoicing and collecting, but it is extremely dangerous for any business, small or not so small. In fact in this situation, the business owner is little more than the incentive driven head of the customer’s service department, but without the employee protection afforded in legislation. Let’s face it, if there is a change of management, ownership or heart in the boardroom of the customer, all that income could dry up in an instant… or after a short debate one Friday afternoon!
As we run valuations on businesses, we ask three questions in this regard:
What is the percentage of turnover attributed to your biggest customer?
What percentage of turnover do your three biggest customers account for?
80% of your turnover is attributed to what percentage of your customers?
This last question is a direct reference to Vilfredo Pareto’s famous 80/20 rule, and the greater distance that any business can put between itself and the classic ratio, the better. In this context, this rule would state something along the lines of “20% of customers account for 80% of turnover”.
Retailers are famously immune from this rule, but agencies, factories and professionals are not, and need to guard against turnover complacency making them blind to the enormous risks dressed up as “continued ongoing bankable business”.
This and other strategies for business success while preparing your business for sale are covered for free in my email course, for which you can register here. So far we have 500 subscribers, all of whom will be head and shoulders above the rest of the crowd one day when they cash in their current money spinners.
By the way… with all that under the bridge, consider what it may be like for the new supplier of the first business who does have his BBBEE ducks lined up. They are about to grow some with very little extra effort.
And if your turnover is below R35M per annum, achieving a level 4 is dead easy - a bit like lining up two ducks.
If your turnover is approaching R35M per annum or is already exceeding this magic figure, more ducks enter the lineup, and getting them to stand in a straight line becomes a bit more tricky. BUT it is at this level that opportunities for owner wealth gearing magically appear.
A few weeks ago I wrote about this sort of circumstance and offered a solution which would gear the business owner's wealth dramatically over the next few years. For many business people who are currently knocking heads with their BEE scorecard demanding customers, this should be revisited.
You can write to me to ask me more if this situation applies to you, or enjoy the benefits of Prepare your Business For Sale by joining the seminar email course. You won't be charged a cent, I promise! The feedback I have been getting from subscribers has made it a very rewarding task for me. If you haven't already subscribed, please do so.
CheersMark Corke
Strategies for Demise by Mark Corke
Mark is a Business Broker, who writes articles on, and runs seminars on “Preparing you Business for Sale”. Should you wish to register for some of Mark’s free articles and tips, Here is the link.
Both Mark and I are of the opinion that ensuring that your Business is Prepared for Sale at all times will ensure that your business always commands the highest value. It actually increases the value of your Business quite considerably.
I sat in a strategy meeting of one of our clients last Friday. The discussion revolved around how the business could improve its BBBEE scorecard.
After some discussion with opinions swinging first this way, then that, it was resolved that from 1 October the business would only purchase from suppliers who were able to demonstrate a level 4 or better scorecard themselves. The result of this policy change is that our client will benefit its own scorecard exactly the way the designers of the system intended, as its procurement score is lifted. But what are the consequences?
"Kites rise highest against the wind, not with it. " Winston Churchill
Discussions over the merits and demerits of the BBBEE legislation aside; what struck me was the ease with which the decision was made. A motion was tabled, a debate ensued, and a major policy change was made. I found my thoughts wandering to the well being of the business’s current suppliers. What will be the effect on those suppliers’ employees and their wider families, come the end of October?
It was so easy: An economic and political imperative will become the destiny of other small businesses very soon. None of them have any warning that they will no longer be servicing this customer of theirs.
Then on Saturday, a week after the strategy meeting above, I was in Durban and was asked to meet with a guy who wants to sell his business. Fairly standard stuff, I know, but bear with me: As the discussion progressed, it transpired that his biggest customer accounts for an astounding 80% of his turnover.
Now that may make for easy invoicing and collecting, but it is extremely dangerous for any business, small or not so small. In fact in this situation, the business owner is little more than the incentive driven head of the customer’s service department, but without the employee protection afforded in legislation. Let’s face it, if there is a change of management, ownership or heart in the boardroom of the customer, all that income could dry up in an instant… or after a short debate one Friday afternoon!
As we run valuations on businesses, we ask three questions in this regard:
What is the percentage of turnover attributed to your biggest customer?
What percentage of turnover do your three biggest customers account for?
80% of your turnover is attributed to what percentage of your customers?
This last question is a direct reference to Vilfredo Pareto’s famous 80/20 rule, and the greater distance that any business can put between itself and the classic ratio, the better. In this context, this rule would state something along the lines of “20% of customers account for 80% of turnover”.
Retailers are famously immune from this rule, but agencies, factories and professionals are not, and need to guard against turnover complacency making them blind to the enormous risks dressed up as “continued ongoing bankable business”.
This and other strategies for business success while preparing your business for sale are covered for free in my email course, for which you can register here. So far we have 500 subscribers, all of whom will be head and shoulders above the rest of the crowd one day when they cash in their current money spinners.
By the way… with all that under the bridge, consider what it may be like for the new supplier of the first business who does have his BBBEE ducks lined up. They are about to grow some with very little extra effort.
And if your turnover is below R35M per annum, achieving a level 4 is dead easy - a bit like lining up two ducks.
If your turnover is approaching R35M per annum or is already exceeding this magic figure, more ducks enter the lineup, and getting them to stand in a straight line becomes a bit more tricky. BUT it is at this level that opportunities for owner wealth gearing magically appear.
A few weeks ago I wrote about this sort of circumstance and offered a solution which would gear the business owner's wealth dramatically over the next few years. For many business people who are currently knocking heads with their BEE scorecard demanding customers, this should be revisited.
You can write to me to ask me more if this situation applies to you, or enjoy the benefits of Prepare your Business For Sale by joining the seminar email course. You won't be charged a cent, I promise! The feedback I have been getting from subscribers has made it a very rewarding task for me. If you haven't already subscribed, please do so.
CheersMark Corke
Monday, December 08, 2008
MOTIVATION - Work
MOTIVATION – WORK
By Nikki Viljoen of N Viljoen Consulting CC
The quote today comes from Zig Zigler who says “The most practical, beautiful, workable, philosophy won’t work – if you won’t.”
This one sure made me smile – a big smile! You see for years now, I have sat in Networking meetings and for me it was kind of like stating the obvious. Networking doesn’t work unless you work at it! No matter how great the opportunity that presents itself, if you don’t do something with it – nothing will happen. Building relationships is futile, if you don’t work at them.
I am often astounded by the fact that people go to Networking meetings (or even Business meetings for that matter) and say things like – ‘It doesn’t work for me because nothing happened.’ Well of course nothing happened! You did nothing!
Despite the fact that the Universe is really abundant, despite the fact that opportunities abound, despite the fact that for every door that closes, several open – you, the individual still have to do something! For goodness sake people, think about it for a moment – in order to win the Lotto, you still have to buy the ticket!
So perhaps you will believe me now – now that I have the endorsement of the great Zig Zigler!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
By Nikki Viljoen of N Viljoen Consulting CC
The quote today comes from Zig Zigler who says “The most practical, beautiful, workable, philosophy won’t work – if you won’t.”
This one sure made me smile – a big smile! You see for years now, I have sat in Networking meetings and for me it was kind of like stating the obvious. Networking doesn’t work unless you work at it! No matter how great the opportunity that presents itself, if you don’t do something with it – nothing will happen. Building relationships is futile, if you don’t work at them.
I am often astounded by the fact that people go to Networking meetings (or even Business meetings for that matter) and say things like – ‘It doesn’t work for me because nothing happened.’ Well of course nothing happened! You did nothing!
Despite the fact that the Universe is really abundant, despite the fact that opportunities abound, despite the fact that for every door that closes, several open – you, the individual still have to do something! For goodness sake people, think about it for a moment – in order to win the Lotto, you still have to buy the ticket!
So perhaps you will believe me now – now that I have the endorsement of the great Zig Zigler!
Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za.
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