Tuesday, January 18, 2011

BUSINESS TIPS - Managing Your Business - Part 3

BUSINESS TIPS – Managing Your Business – Part 3


By Nikki Viljoen – Viljoen Consulting CC – January 2011

In my experience, one of the biggest challenges for SMME’s (Small, Medium, Micro Enterprises) is retaining clients. Now I am really not sure why this should be since the fact of the matter is that it is easier to sell to existing clients than it is to procure new ones. So what’s the deal? Perhaps it is because we don’t really know who and what a customer is!
The Wiki says that “A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services.”
So how do we retain our customers? How do we ensure that we not only find new customers, but that we continue to sell our services and our products to current customers or even customers who we have not sold anything to in years?
Well there seems to be a whole host of different options and tips – some of these are (but not limited to):
- The personal touch. Here’s an example of both good and bad. I have been a client of Nedbank in my personal capacity for in excess of 25 years now, and in my business capacity for almost 8 years – quite frankly I bank with them through absolute habit, it certainly is not because of the service that they have given me over the years, but rather the perceived hassle of changing banks, debit orders etc. that keeps me with them. I have no idea who my ‘personal banker’ is, or if indeed I have one. I have been dealing with the Cresta branch for the last 20 odd years and sadly the only person who knows my name, when I walk in, is the security guard. In my opinion, the security guard should be doing their PR, he greets most people by name, always with a smile and a sunny disposition and the good that that does is soon smashed to pieces by the ineffectual, anal retentive service received by the branch staff. So make sure that you give your clients your absolute attention and use your personal touch as part of your branding and marketing.
- Assumption – I always say that perception and assumption are the two most dangerous words on the planet – and certainly what I am going to say now will bear that out. Just because your customers are not complaining, don’t assume that everything is peachy! Your perception of ‘everyone is happy because no-one is complaining’ is probably so far off the mark that it is scary. Many people don’t complain, they just vote with their feet or their wallets. Ask them if they are happy and if they aren’t do something about it!
- Expectations – all customers expect to receive good service, that is a reasonable expectation. Not only meeting that expectation, but exceeding it will bring them great delight and will go a long way to ensure that they become loyal customers. Remember though, do it once and the customer will expect even more the next time around, so don’t stop trying to do better.
- Customization – “One man’s food is another man’s poison”! Just because one client is crazy about your product or your service, doesn’t mean that everyone will be. Be prepared to ‘customize’ your product and/or service to meet the requirement of the client. In fact, make sure that what you are selling (service or product) is what the client wants, rather than what you think that the client may need.
Next time we will have a look at managing your working capital.

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

Monday, January 17, 2011

MOTIVATION - A Life Worth Remembering

MOTIVATION – A Life Worth Remembering


By Nikki Viljoen of N Viljoen Consulting CC – January 2011

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

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

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

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

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

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

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

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

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

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

MOTIVATION - A Life Worth Remembering

MOTIVATION – A Life Worth Remembering


By Nikki Viljoen of N Viljoen Consulting CC – January 2011

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

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

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

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

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

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

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

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

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

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

Friday, January 14, 2011

HR - Check the Work Permit - Part 1

ARTICLE 65

Check the Work Permit – Part 1

By Nikki Viljoen of Viljoen Consulting CC - January 2011

We have probably all been in the position where we have hired a gardener or a domestic helper, who it turns out, is an illegal alien.

The problem is when we have foreigners working for us, who have the incorrect (or worse no) documentation or work permits.

The consequences to them (and you particularly if they bring a specific skill with them) can be quite serious.

Here in South Africa, there are a whole host of different types of work permits – some of these are (but not limited to):
- Quota permits
- Intra Company permits
- General permits
- Exchange permits
- Exceptional skills permits
- Business permits
- Retired persons work permits

Even some of the ‘visitors’ permits allow foreigners to work here for a while. The challenge of course, is to ensure that they have the correct permit.

In my experience, most foreigners who come to South Africa, get their permits by getting a written job offer first and believe me this is not a new thing – when I came to South Africa in 1977, this is exactly how I got my work permit – I got a written job offer and based on that, my work permit and resident’s permit was granted. This is a general work permit and the prospective employer needs to evidence that they have tried unsuccessfully to employ a South African with the necessary skills. This is usually done by advertising nationally.

A ‘quota’ work permit is one that is available for foreigners, whose work skills fall into a particular category. This category is determined by whatever skill shortage is currently prevalent in the country at that particular time – so last year it may have been engineers and this year it may be accountants (just to give an example). The categories that are nominated chosen by the Minister of Home Affairs who also decides on the number of quota permits that will be issued, and to which category they will be issued. Here’s the thing though – only about 20% of the quota permits are ever actually filled as Home Affairs does not actually market and recruit for these particular skills and/or requirements outside of South Africa (makes me wonder what the point then is actually). It is also very difficult for foreigners, who are based outside of our borders, to apply and go through the application process themselves.

In many, if not most of these cases, it would be a good idea not to even try and process these applications yourselves, but to rather get the services of the right Professional Immigration Practitioner.

Next time, we will have a look at some of the other types of permits in a little more detail.

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

Thursday, January 13, 2011

EARLY WARNING - Facebook Virus

EARLY WARNING – Facebook Virus



By Nikki Viljoen – Viljoen Consulting - January 2011 .

I received a mail from David Green of Switched On IT, that says “Facebook Virus Turns Your Computer into a Zombie”.

Apparently, through the IM (Instant Messaging) portal of Facebook, people are getting messages that go “I have this hilarious video of you dancing. Your face is so red. You should check it out.”

Now I personally haven’t had that exact message, but I have had plenty of similar ones that also seem to involve me in a video – here’s the thing though – there are no “video’s” of me out there that would have anyone in a state of shock or laughing their rear-ends off, so that raised a very red flag for me and I refrained from the temptation of clicking on that particular button. Furthermore, it was sent to me who although they are a ‘facebook friend’ (I play zoo and Farmville, so I have many ‘friends’ who I actually don’t know at all), they are not someone that I have ever met or know in any way other than ‘in passing’ in whatever game it is that we are playing. How very fortunate for me, that I didn’t click on the link!

You see, by clicking on that particular link (or any similar ones for that matter – either on Facebook or MySpace) you “might have been exposed to the Koobface virus” says the message that David forwarded to me. Apparently what happens then is that once you have clicked the Koobface virus then prompts you to update your Flash player (that’s the only way you would be able watch the video) and the virus is contained in the flash player file. What happens then is that “the worms transform victim machines into zombie computers to form botnets.” Now, I personally have no idea what that means, but it certainly sounds serious.

Kaspersky (which is my anti virus of choice) says that you can ‘usually spot phony e-mails by their titles’ and they found several as examples. These are (but not limited to) “Paris Hilton Tosses Dwarf on the Street” – I know that she is a troubled child, but I can’t see her doing anything like that – or how about “Examiners Caught Downloading Grades From the Internet – You must see it!!! LOL” – that also just doesn’t sound right. Another easy way to spot a problem is that the spelling is usually very bad – if it looks dodgy then it usually is.

As usual with a little bit of common sense and precaution, you can avoid these things – don’t just be ‘clicking’ on everything that pops up. Don’t open things from people that you don’t know personally and my personal favorite – if it doesn’t look right then it usually isn’t.

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

Wednesday, January 12, 2011

BLOGGING TIPS - The Pros and Cons of Weekend Writing

BLOGGING TIPS – The Pros and Cons of Weekend Writing


By Nikki Viljoen – Viljoen Consulting CC January 2011

I have often been asked why I don’t have a weekend post. Well the truth of the matter is that generally speaking, I am battling to keep up with the writing of the daily articles that that right now, even the thought of having to write another one or two more articles a week, is enough to send me into a state of panic.

The reality though is that many people only work on the internet during the week, although as we small business owners would generally not fit into that particular category. Depending on who you target with your blogs, this would mean that there would be a lower number of readers over the weekend but that the number of readers on a Monday would increase sharply as these readers played “catch up”.

Many individuals though, just stop following a blog if they feel that they have missed too many ‘episodes’ and some also feel really overwhelmed if they have too many unread articles waiting for them from their favorite blogs.

So in view of this, is there even a point to posting something over a weekend?

Well here’s the thing, even though there are many individuals who aren’t on the internet over the weekend, there are still many who are and these clearly are the folk that you need to target.

All the articles that I have read on the subject though really emphasize the need to write shorter, thought provoking articles. These are sure to catch the attention of the individuals who brave the internet on the weekends as well as appeal to the Monday morning folk who play ‘catch up’. The weekend readers are also more likely to end up with a burning desire to ‘know more’ and hopefully will then also begin reading your posts during the course of the week.

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

Tuesday, January 11, 2011

BUSINESS TIPS - Managing Your Business - Part 2

BUSINESS TIPS – Managing Your Business – Part 2


By Nikki Viljoen – Viljoen Consulting CC – December 2010

As usual, let’s have a look at exactly what a “margin” is. The Wiki says :
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.[1]

The profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss.
Profit margin is an indicator of a company's pricing strategies and how well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies.[2]
The easiest way for me to remember it is that the margin is the difference (financially) between what everything cost (not only materials, but also time and expenses [for me as a service type business] and research, printing, paper, ink etc) and what I charge. If your margins are too low, you will never make a profit and on the other hand if you set your margins too high, you run the risk of never making a sale – it’s a delicately balanced scenario!
Essentially there are two ways to increase your margins (profit margins) and those are either to cut costs or cut prices. In order to know which one to do it is obviously essential that you focus on your margins on a regular basis and also on what the current economic trends are as it is not always a good thing to cut prices, although it is always a good thing to cut costs, as long as that does not interfere with the quality.
Sometimes increasing the price of your services and/or your product has a powerful statement attached to it – it says “I’m worth it” or “the product is worth it”. I know that when I started out, I had nothing to compare my services to and the result is that I used my corporate ‘salary’ as a gauge to set my hourly rates – wow, was that ever a big mistake. I priced myself far too low and the result is that I attracted many clients, all of who desperately needed by expertise, but all of who could not afford me! Within 24 months I had doubled my hourly rate and I was attracting clients who needed me, but who could also afford me.
In this particular instance, me raising my charges had an incredibly power effect – it said ‘this is what I am worth’ and the psychological effect on me, as an individual, was incredible. Before, even though my prices were very low, I was chasing business by giving discounts, hoping to retain the very clients that could not afford my services in the first place – that was a very costly mistake – I wrote off a lot of money to bad debt.
Nowadays, if I am going to give a discount – it is because there is a huge value to me and it is based on a whole different set of criteria, such as (but not limited to) early or timeous payment etc.
Cutting costs is definitely the best way to increase your margins and thereby increase your profits. This is not always an easy thing to do particularly in tough times, when you are looking at staff and salaries. You have to divorce yourself from the emotions and look at the cold hard facts. Can you do without this particular function being performed by a single person, in other words “Don’t make it about a person or personal”, but rather about what’s good for the Company. If you have two people doing work that can be done by one person, then it stands to reason that you only need to employ one person – don’t get sucked into the emotional side of things.

Keeping your costs to a minimum and your clients to a maximum is therefore the best way to ensure that your margin remain on track and is the best way to meet and even surpass your budget requirements.

Next time we will have a look at your customers.

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

Monday, January 10, 2011

MOTIVATION - Where is Greatness Found

MOTIVATION – Where is Greatness Found


By Nikki Viljoen of N Viljoen Consulting CC – January 2011

William Arthur Ward says “Greatness is not found in possessions, power, position or prestige. It is discovered in goodness, humility, service and character.”

Well that should certainly shake things up a little, don’t you think? There are all these powerful (well they think they are) people in the world who are so full of their own importance, puffed up and proud and according to this statement – they are not great at all! That’s just really funny!

I guess that is why people like Nelson Mandela is one of the “greatest” men on the planet as opposed to, I don’t know – someone like George W Bush, who perhaps was one of the most powerful men on the planet (when his puppet masters pulled the strings you understand).

So who are the great leaders of the world today? Sadly when I look around, I don’t really see any? What I see are men who think that they are great, but who are destroying rather than building. I see men who are concerned only with ‘what’s in it for them’ rather than for the greater good and I understand the ‘how’ and ‘why’ conspiracy theories spring up all over the place – because it’s all about the money, human kind be damned!

Then I look around and I see ordinary people, doing extra-ordinary things – making a difference one day at a time, one person at a time. I see ordinary people who have become celebrities and have used that platform to make a difference, one day at a time, one person at a time. I see people who have very little, helping people who have even less, one day at a time, one person at a time and I understand that I am in the presence of greatness.

So where does this take us to, during the beginning of this New Year – to traditionally, the place and time when people start all over again, with new hopes, new determination and new resolve? Who knows?

To borrow the line from Oprah Winfrey – “what I know for sure” though, is that there is hope, there is resolution and there is a change-a-coming and that we have the choice as individuals to be a part of that change or to sit back and reflect, in years to come on how we ‘missed the boat’.

I know what choice I am making – do you know what choices you are going to be making?

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