Sales 101 - Increasing the Number of Your Customers

SALES 101 – Increasing the Number of Your Customers

By Nikki Viljoen – Viljoen Consulting CC.

Much has been written about the ‘how to’ of increasing your client base, so I doubt very much that anything that I have to say here will be new or any kind of revelation.  That said, I have found over the years that sometimes we need to be reminded of things and sometimes it takes ‘just one more telling of the story’ before we actually ‘get’ the plot – so here it is.

We know that in order to increase the number of clients that we have, we have to:
• reach new potential clients with the offering that we currently have – be that product or service
• reach new potential clients with a new offering – be that product or service.

But how do we do this?

Well we need to ask ourselves some serious questions – these are (but not limited to):
• Who is our target market?  Who are the people that really have a need of our product or service.  Does our product or service meet the need of the potential client?  Does our product or service save them time or give them some sort of additional value?
• How badly do our potential clients need our product or service?  In other words, how much time do they spend on  a daily basis, trying to find what ever it is that we are selling? In fact do they even know that the product or service that we are selling actually exists?
• How many of these potential clients are there and how do we actually reach them?

Clearly, in order to answer these questions honestly and fully, we would need to do some market research.  In fact, before selling anything it is always a good idea to do some market research – it is the only way that we can accurately ascertain if there is a need for the particular product or service that we are offering and it will also educate us on what we actually need to know about our potential customers, like who in the organization is the best person to speak to, who are the decision makers and what we need to know in order to tell them about our product or service.

Knowing the culture of our potential clients, their likes and their dislikes, their needs and their desires, will make our quest to engage with them that much easier.

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

Networking 101 - Be Careful of What You Say

NETWORKING 101 - Be Careful of What you Say

By Nikki Viljoen of N Viljoen Consulting CC

So I am sure that we all agree that ‘people talk’!  We all do it.  When we talk about people, especially in the business world and particularly in the SMME environment, it is generally about what people have done.  Now of course this could go one of two ways – there is always the instance when someone has messed up – badly, and then the conversation would go along the lines of “Jane Doe did not do what she promised to and as a result Joe Bloggs is out of pocket and he lost the deal”.  The result of this kind of conversation, usually means that the people, within hearing distance, would not be using the services of Jane Doe – well not any time soon anyway.

Then of course the conversation could also go along the lines of “Jane Doe promised to deliver XY & Z and she actually went out of her way and introduced him to  AB & C as well and as a result of that Joe Bloggs not only got the deal, but they have also signed a contract for another deal!”.  The result of this kind of conversation, usually means that people, within hearing distance, would be clambering to meet up with Jane Doe and use her services and her contacts.

That is how it is with ‘networking’ and believe me, the SMME world is not that huge that you don’t get noticed, either way.

So think about which message it is that you would like to send and live your life accordingly.  Make sure you deliver what you promise (even if it takes a while) and make sure that you continually grow your data base with people who understand the Power of Networking.

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

Business Tips - Managing Your Business - Part 5

BUSINESS TIPS – Managing Your Business – Part 5

By Nikki Viljoen – Viljoen Consulting CC

Irrespective of how ‘uncertain’ times are and how difficult it is to get the business in or make the sale, or how much you have downscaled the expenses, the fact of the matter is that you have to keep your staff motivated if you want to still get the business in and the orders processed.  Clearly I am not talking only of the sales staff here!

Here’s the thing, if you have cut back and trimmed away as much as you should have and tightened your belt as far as it can be tightened, then most if not all of your staff have taken over some (if not all) of the duties of the staff who have left and usually for no additional remuneration.  That means that you need to implement some sort of reward system to motivate them.  This is where you have to get creative, as you may not be able to reward them financially. There are many perks that don’t necessarily cost the company a lot of money but could have huge beneficial implications to the staff.  Things like, introducing flexitime, so that they spend less time in traffic and therefore have more quality family time or even, if it can be done, allowing them to work from home.  This could result in you renting out your excess office space and your staff member spending less on fuel and toll fees – a win/win situation, I am sure you will agree.  Rather get rid of the ‘dead wood’ and poor performers and reward those who have invested themselves in your company and who work effectively and efficiently. Poor performers and ‘dead wood’ take up a huge amount of management time and ultimately increase costs in more ways than one.

One of the quickest ways to decrease costs and increase productivity is to ensure that your operational costs are kept to a minimum.  Machinery should be well and regularly maintained to optimise efficient use and processes implemented and properly managed to ensure that both quantity and quality of output.  This should also be measured to ensure that it is of the highest standard.  Regular review of processes and procedures to ensure that they are both effective and efficient and that they comply with legislation will also ensure that workflow output is optimised and constant and that fines or penalties are not levied against you for non-compliance.

Finally, “always keep your enemies close”.  Make sure that you know what your competition is doing to ensure that you are doing things better, more efficiently and more effectively.  Make sure that your always give value for money and that you operate from a place of integrity and honesty with your clients, your suppliers and your staff.

In your Business – honestly really is the best policy!

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 - Taking Responsibility for Our Failure

MOTIVATION –  Taking Responsibility for Our Failure

By Nikki Viljoen of N Viljoen Consulting CC

Oh dear – looks like I got the soap box out again.  Clearly the whole thing on “Failure” has got me in a bit of a spin!

It seems to me that most people think of success or failure as either good or bad luck – that’s just so confusing. Surely your success is based on what you did that was right or what worked and your failure is based on what you did wrong or what didn’t work?

I mean think about it for a moment – when someone succeeds at something, they celebrate all that went before it, the hard work, the making of the right decisions, the planning and precision, the long hours and the sleepless nights.  So how then, when there is failure does it become everyone else’s fault?

How could it possibly be the fault of the Rand being too low, or economics or politics or the tax man or the World Cup?  That’s just bizarre!  The fact of the matter is that very few people want to take responsibility for their own actions.  Very few people want to look at themselves and then admit that perhaps it was their very own actions (or non actions for that matter) that have caused their downfall.  Very few people are prepared to accept that what they have done is their own fault.

Now here’s the problem – if you don’t admit to failure being your own fault, how on earth will you be able to correct whatever it is that you did wrong so that you don’t do it again?  How on earth will you learn from your mistakes and go on to grow as an individual?  How on earth will you ever learn to take responsibility for your actions or when you fail to act?

Part of your goals should be ensuring that you give and receive accolades when they are due and not only for others but for yourself as well. We are all very quick to grab the limelight when we have done something right but seldom that quick when we have done something wrong.  Part of your goals should be being able to look at a situation that has gone wrong and take responsibility, learn from the mistake, make adjustments and move on.

Part of becoming the best person that you can be is to be able to dig deep, admit to what has happened, I promise you, you will feel all the better for it.

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

Networking 101 - Some More Networking Tips for Introverts

Networking 101 - Some More Networking Tips for Introverts

By Nikki Viljoen of N Viljoen CC

Following on from last week’s offerings on Networking for Introverts, here are some more tips for other Introverts.

When I first started Networking for my Business, I was like a kid with a new toy.  If there was a Networking event, I was at it.  I could not get enough!  Not only would I be at every single networking event, I would also scurry around frenetically trying to touch base with every single person at the event.  I wanted every single person’s card or contact details because each person, each card, each contact detail was an opportunity.  It was madness personified!

Many of the individuals were not really interested in meeting with me, but felt obliged to give me their business cards or contact details.  When I contacted them to set up a meeting, they hummed and ha-ed and finally agreed to a meeting and then on d-day, despite me having confirmed the meeting, they just did not pitch!  Wasted time for both of us and a somewhat disillusioned me!

You see, the bottom line is that not everyone ‘gets’ the whole networking concept and as the old saying goes, you can lead a horse to the water, but you cannot force it to drink.  In my enthusiasm I had automatically assumed that everyone would be as excited about networking as I was.  Well they aren’t – so deal with it, get over it and move on!

Nowadays, I am a lot more sedate about networking.  Don’t get me wrong, I am still as passionate about it as I ever was – I just look at it and deal with it a whole lot differently.

I no longer feel the need to attend every networking meeting on the planet – two or three a month are more than enough.

I no longer feel the need to obtain every single participating person’s business card or contact details.  Now I ‘cherry pick’ a few individuals who I think I may either have synergy with or who I feel ‘drawn’ to meet (yes I go with my gut feel!) and I touch base with those who seek me out.

I no longer get stressed out if people don’t pitch for a meeting, now I take work along with me and get on with it, recognising the fact that everyone is not automatically on the same page as what I am.

My diary is still full with meetings sometimes booked as far as two or even three months in advance, but I no longer have this intense need to make a difference in someone’s life.

You see, building relationships takes time and commitment, and although networking gives you a foot in the door, the relationship still needs to be built and that is not something that should be rushed, and quite frankly running around frenetically is not only exhausting, but it is also very time consuming.

So take your time, accept your limitations and the limitations of others.  Go to fewer events but make them quality events.  Meet with fewer people, but make sure they are people who value who you are and what you do and make those meetings count and finally, be gentle with yourself, don’t push yourself too hard and too fast.

Oh . . . . . and remember to have fun!

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

Sales 101 - Knowledge is Key

SALES 101 – Knowledge is Key

By Nikki Viljoen – Viljoen Consulting CC  

I know that I am one of the most impatient people on the planet.  Talk about instant gratification – when I want something, I want it right now!  Sounds familiar doesn’t it?  Fact of the matter is that I am no different from most people on the face of the earth and certainly no different from any of my SMME colleagues.

Here’s the thing though, you would not expect yourself to become proficient or an expert after one piano lesson or a master chef from reading one cookery book, so why on earth would you expect yourself to become an expert sales person after making just one sale?  Doesn’t make any kind of logical sense now does it?

Like most things in life I have to keep learning about it, I have to keep reading up on it, I have to keep implementing what I have learnt.  I have to keep up to date with the trends and what is happening in my working and business environment.  Those of you who know me and who have been in my office will attest to the large piles of books, magazines and articles that I have all over the place, not to mention the pile of magazines in the bathroom and the toilet.  As I have mentioned in some of my articles before, much of what I write is what I most need to hear and this is no exception.  As I do the research for and write these articles for my blog and  share with my fellow SMME’s so I learn and grow my own business.

I understand that after almost 50 years since I was last in a classroom, I have to again become a student and learn, not only about selling but all the other skills that are needed as a small business owner.  Skills such as branding and marketing, general business skills, skills around negotiation and the ‘how to’ of people skills and please don’t forget anything and everything around finance and tax.  New technology also needs to be understood to a certain degree and for me that means knowing what can be done rather than how it does it.

Of late, I find myself becoming quite an information junkie, I devour books, magazines and shamelessly trawl the internet for information, I can’t seem to get enough and I also seem to need more and more.

Don’t forget though, although the saying is ‘knowledge is power’ the true power is unleashed when you do something with that knowledge!  So don’t just be learning, make sure that you do something with your new found knowledge.  That’s the key!

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

HR 101 - What to do when . . . You Want to Dismiss Staff - Part 7

HR 101 - WHAT TO DO WHEN . . . . You Want To Dismiss Staff - Part 7

By Nikki Viljoen – N Viljoen Consulting CC.

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

Today we are going to look at what the guidelines are if you want to dismiss for misconduct.

Employers should consider the following before dismissing a staff member for misconduct:

Whether or not the employee failed to comply with a Company rule or Company standards governing conduct in the workplace or whilst they were representing the Company and

If the rule or standard was broken or not met, whether or not:-

i) the rule or standard that was broken was a valid or reasonable one for example – the Company is a nursery and they have a standard rule that employees dress up around a theme for spring day. This year the theme is ‘pot plants’ and George refused to dress up as a pansy. Dismissing George for misconduct would be inviting trouble through the door.

ii) the employer was aware, or could reasonably be expected to be aware of the rule or standard – for example – Jane has been on maternity leave for 3 months. During the time that she was away the Company took a stand regarding “Facebook” and a memorandum was issued stating that staff could no longer access “Facebook” during working hours as it affected productivity. The first thing that Jane did when she got back to work was log onto “Facebook” to catch up with all of her friends. Dismissing Jane on the grounds of misconduct would be inviting trouble through the door.

iii) the rule or standard has been consistently been enforced by the employer – for example, George and James are both store managers in a retail chain. George was caught “borrowing” money out of the till for taxi fare. It was George’s first offence of this nature. George is the top salesman in the Company and his store consistently over performs. George is counseled and is given a written warning. A month later James is also caught “borrowing” money out of the till for taxi fare. It is also James’ first offence of this nature. James, on the other hand, is a trouble maker. He is always stirring up trouble with the unions and the staff. His sales are very poor and his store’s turnover is always below target. If James is dismissed for misconduct at this point, it would be inviting trouble in through the door.

iv) dismissing the staff member for misconduct, the punishment must ‘fit the crime’ for the rule or standard that was broken – for example, let’s use the retail environment again. The till float in James’ store, very seldom balances. It is usually out of balance by a minimum of R1.00 or less. Dismissing the cashier for misconduct in this instance would be inviting trouble in through the door.

As you can see from the above, it is very important to dismiss someone for misconduct for the right reasons as opposed to just seeing an opportunity for getting rid of someone and using that.

It certainly is not difficult to dismiss anyone, but the correct procedures must be followed.

Next week we will look at dismissing someone for Incapacity: Poor work performance.

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

Business Tips - Managing Your Business - Part 4

BUSINESS TIPS – Managing Your Business – Part 4

By Nikki Viljoen – Viljoen Consulting CC

We’ve looked at Managing your cash flow and making sure that your margins are where they should be, as well as ensuring that you are meeting your client’s needs.  Today we will have a look at ‘managing your working capital’ and your advertising.

First off, let’s have a look at your ‘Working Capital Management’. Ensuring that you manage your working capital correctly, will have quite an effect on your cash flow as it ‘releases’ monies that would normally go towards expenses.  Let me explain – your clients pay you 30 days, but your suppliers want payment up front.  This means that you are carrying the whole thing financially on your own (it will also have an impact on your risk management too).  By negotiating better payment terms with your suppliers and your clients, you will decrease your risk and have a better cash flow situation and a stronger working capital, which could go towards growth or expansion.

Other critical areas to look at are (but not limited to), your debtors list.  Make sure that you follow up outstanding or overdue accounts on a regular basis and don’t be scared to put ‘errant’ clients on ‘hold’ or in extreme cases, even firing them.  Remember this is your business and you make the rules.

Stock is also something that needs to be managed both effectively and efficiently as this is one of the first areas that you will experience losses when there is  downturn in the economy (ok, if the truth be told this is all the time, not only when things become a bit rough).  So stock needs to be properly controlled to ensure that the shrinkage is kept to a minimum and that stock levels are kept to acceptable levels.  Too much or too little stock on hand also has its own consequences.  Oh, and don’t forget to make sure that your stock is properly and adequately insured and that (particularly with perishables) that the FIFO (first in first out) method is used, that way you will not end up with stock that has expired.

One of the first things that seem to go for a ball of chalk when times are tough is your advertising.  This is not good at all.  Think about it logically and calmly for a moment. Taking your marketing out of the equation means that less and less customers are going to know about you and less and less customers are therefore going to buy from you! Crazy that -  you are wanting to increase your sales, which means your marketing and advertising should increase.

By all means, modify the way that you market yourself.  Cut down on say, using the big PR agencies (or any agency for that matter) and try and do things for yourself.  Get an e-mail campaign going or use the social networking sites and twitter to drive people to your website.  Start a newsletter and give ‘useful’ information to your clients. Make sure that you are still in the forefront of their minds and that they don’t forget you and go to your opposition or competitors as a result of this.

So change the way that your market yourself, if you must, but ensure that the amount of marketing increases rather than decreases.

Next time we will have a look at some of the other issues around what to do when your business is going through a tough time.

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

Motivation - Taking Some Risk

MOTIVATION – Taking Some Risk

By Nikki Viljoen of N Viljoen Consulting CC – June 2009

Ask anyone about how they would prefer their lives to be and chances are that they will tell you that they would like to go through life being healthy, wealthy and happy.

Well folks – here is a splash of reality – if you sit quietly in a little corner, minding your own business and not doing anything – nothing will happen.  You will not grow as an individual and you will not grow your business (presuming of course that you even have one).  In fact the bottom line is that if you don’t get out there and do something, nothing will happen.

One of the identifiable attributes of an entrepreneur is that they are willing to take risks.  Now contrary to popular belief, that does not necessarily mean that they would stand in front of an on coming train.  It does not mean that they are necessarily reckless or that they would put the lives of their families and indeed, their own lives at risk.  What it does mean though is that they will usually take calculated risks.

Although at first glance, it often seems that they are completely out of control, the fact of the matter is that usually, they are exactly in control.

You see, most entrepreneurs are very aware of the fact that life is not simple, that looking through a pair of rose coloured glasses is not going to give them the reality of what life is all about.  They know that life and indeed business can be really, really hard – so hard in fact that it hurts.

True entrepreneurs, who know all of these things also know that in order for them to succeed, they  will have to be willing to accept the pain that will come from stepping out of their comfort zone.  They know the secret and I am going to share that particular secret with you.

You see by being willing to endure a little bit of toughness and discomfort in the short term, they will usually make their lives that much easier in the long term.

Have a look around you – really look.  All the people who are crying and moaning and groaning about how tough it is out there are usually the ones who wallow in their tough lives.  They are scared of moving forward and doing things a little bit differently, they are scared to go backwards because, well it was tough there too and they are scared to stay exactly where they are because it’s so tough there.  So all they can do is moan and whine about how tough it is and how unfair life is – is it any wonder?

On the other hand show me a successful person and you will see someone who has endured the pain, the hurt and the often sleepless nights.  They did something though, they moved forward.  They took the calculated risks, they sucked up the tough times and they came out the other end, not only successful, but better individuals for it.

It didn’t matter how people laughed at them, or how they were criticized by friends and family, they had a dream and they were committed to their dream and they stuck with it.

It always boils down to attitude in the end – if your attitude and your mindset is right, you will ‘swim’, but if your attitude stinks – you sink!

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

HR 101 - What to Do When . . . You Want to Dismiss Staff - Part 6

HR 101 - WHAT TO DO WHEN . . . . You Want To Dismiss Staff? Part 6

By Nikki Viljoen – N Viljoen Consulting CC.

Staff who take part in, or participate in any way, a strike that does not comply with the provisions in chapter iv of the Act, are by default, guilty of misconduct.

Please remember, just because they have taken part in an illegal strike, and that that is considered “misconduct”, it does not necessarily mean that they deserve to be dismissed.  It still has to be determined whether or not a dismissal is fair.

In these instances the following needs to be taken into consideration:
- the seriousness of the contravention of the Act
- whether any attempt was make to comply with the Act
- whether or not the strike was in response to any unjustified conduct by the employer.

Before dismissal takes place the employer must, discuss the intended dismissal or any other action that they intend to take, with the trade union concerned.

The employer also needs to make it very clear, in simple language that all can understand, the terms and conditions of what is required and what the consequences will be, should they not comply with the requirements.

Once again the employees should be allowed a reasonable amount of time, in which to make a decision to either agree to the requirements or reject them.

Once again there may be instances where the employer cannot reasonably be expected to comply with these requirements, with the employees concerned.  In these instances the employer may disregard the guidelines.  Again this must be documented and a copy retained in the employee’s personnel file.

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

Sales 101 - Be a Specialist

SALES 101 - Be a Specialist

By Nikki Viljoen – Viljoen Consulting CC

This one is a case of ‘Do as I tell you, don’t do as I do’ kind of article.  You see, although I am a ‘specialist’ in what I do, I am also a ‘generalist’ in what I know!  Talk about confusing the masses!

Actually it’s not that difficult.  Let me explain – as an Internal Auditor, I was trained (and through experience over the years) to notice certain things.  Let’s me be honest here – if you have changed your hairstyle or bought a new outfit, generally speaking, I won’t notice anything at all.  Put me in a ‘business or working’ environment though and I will be able to spot everything ‘out of the ordinary’ and even some things that you never even thought about looking at.  Now here comes the kicker – it doesn’t matter if that business or working environment is in the retail sector, manufacturing sector, security sector, medical sector – in fact any sector that you could possibly think of, I would still be able to tell you if something was ‘off’.  So in this instance, although I am a ‘specialist’ in what I do, I am also a ‘generalist’ too.

Ok, now that we have that out of the way, let’s get back to the business at hand.  I love going to the Rosebank flea market – not because I love to shop – but because that’s where I buy my slippers and that’s where I love to buy cheese and there are one or two second hand book stalls that I have to be very disciplined in when I get there.  The rest of the flea market – quite honestly, I don’t even bother with.  The reason for that is that they are all the same!  Every stall sells the same thing – all the clothing stalls sell more or less the same clothing, all the tourist souvenir spots all sell the same and boredom sets in very quickly.

Think about it logically for a moment – if you are exactly the same as all of your competitors, the whole thing becomes quite monotonous and actually what you are doing is making selling that much harder for yourself.  Who wants to make life harder for themselves.  Certainly not me, and I suspect you wouldn’t want to do that either.

So now logic must tell you that you have to make yourself different in some way, more exciting, more appealing.  You could ‘narrow’ your target market a bit – make whatever you do (product or service) more specialized.  Up your credibility or your service.  Collaborate with someone else and give ‘more’ than expected.

Whatever it is that you decide to do, remember you have to be ‘a cut above the rest’ – be noticed, be remembered, be credible, be authentic.

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

Networking 101 - More Tips for Introverts

Networking 101 - More Tips for Introverts

By Nikki Viljoen of N Viljoen Consulting CC

Following on from last week’s offerings on Networking for Introverts, here are some more tips for other Introverts.

When I first started looking for business at networking events, I felt that I had to get myself to every networking function that was available.  Please believe me when I tell you that I spent many a very uncomfortable hour standing around trying to force myself to smile and introduce myself to total strangers, because I wanted their business desperately, whilst trying to look casual, professional and anything but desperate.  Going to every meeting that was taking place was a really good thing though because, no matter how difficult it was at the time that is how I learnt, what kind of  meeting best suited me.  For me (and I suspect that this would work for most of the other introverts out there) a semi-facilitated, loosely structured type of environment works best.  At least I am sort of introduced to people, (not necessarily one at a time or even one on one) and they recognise me (and I them) and we can strike up a conversation and get talking.  Going to networking functions where you don’t know any one and nobody knows you and you have to go up to strangers and introduce yourself is like going ‘cold calling’!  That, as far as I am concerned is for the birds and I am not a vulture!

So now, when a new meeting (with a bunch of people that I have not come across yet) is marketed or I am invited to attend something new, I always go to check it out, but that does not necessarily mean that I will automatically join up.  There are different types of networking meetings and I function better at these when I feel comfortable in my surroundings.  This also does not mean that I am restricted to one group – quite the contrary – I belong to several different groups, each one slightly different from the other, but all semi-facilitated, loosely structured and made up of individuals who are serious about doing business!

Find the type of meeting that fits with you as an individual.  Make sure that you feel comfortable, meet the individuals and grab all of the opportunities that come your way.

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

Business Tips - Managing Your Business - Part 3

BUSINESS TIPS – Managing Your Business – Part 3

By Nikki Viljoen – Viljoen Consulting CC

So far we have dealt  with Finance and Margins.  Today we have a look at your Customer’s requirements.

In my experience, one of the biggest challenges for SMME’s (Small, Medium, Micro Enterprises) is retaining clients.  Now I am really not sure why this should be since the fact of the matter is that it is easier to sell to existing clients than it is to procure new ones.  So what’s the deal? Perhaps it is because we don’t really know who and what a customer is!

The Wiki says that “A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services.”
So how do we retain our customers?  How do we ensure that we not only find new customers, but that we continue to sell our services and our products to current customers or even customers who we have not sold anything to in years?

Well there seems to be a whole host of different options and tips – some of these are (but not limited to):
- The personal touch.  Here’s an example of both good and bad.  I have been a client of Nedbank in my personal capacity  for in excess of 30 years now, and in my business capacity for almost 15 years – quite frankly I bank with them through absolute habit, it certainly is not because of the service that they have given me over the years, but rather the perceived hassle of changing banks, debit orders etc. that keeps me with them.  I have no idea who my ‘personal banker’ is, or if indeed I have one.  I have been dealing with the Cresta branch for the last 20 odd years and sadly the only person who knows my name, when I walk in, is the security guard.  In my opinion, the security guard should be doing their PR, he greets most people by name, always with a smile and a sunny disposition and the good that that does is soon smashed to pieces by the ineffectual, anal retentive service received by the branch staff. So make sure that you give your clients your absolute attention and use your personal touch as part of your branding and marketing.
- Assumption – I always say that perception and assumption are the two most dangerous words on the planet – and certainly what I am going to say now will bear that out.  Just because your customers are not complaining, don’t assume that everything is peachy!  Your perception of ‘everyone is happy because no-one is complaining’ is probably so far off the mark that it is scary.  Many people don’t complain, they just vote with their feet or their wallets.  Ask them if they are happy and if they aren’t do something about it!
- Expectations – all customers expect to receive good service and that is a reasonable expectation.  Not only meeting that expectation, but exceeding it will bring them great delight and will go a long way to ensure that they become loyal customers.  Remember though, do it once and the customer will expect even more the next time around, so don’t stop trying to do better.
- Customization – “One man’s food is another man’s poison!”  Just because one client is crazy about your product or your service, doesn’t mean that everyone will be.  Be prepared to ‘customize’ your product or service to meet the requirement of the client.  In fact, make sure that what you are selling (service or product) is what the client wants, rather than what you think that the client may need.

Next time we will have a look at managing your working capital.

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

Motivation - Teacher

MOTIVATION - TEACHER

By Nikki Viljoen of N Viljoen Consulting CC

The quote today comes from William Arthur Ward who says:

The mediocre teacher tells.

The good teacher explains.

The superior teacher demonstrates.

The great teacher inspires.

I know that from a personal perspective, I have always had the most out of someone (teacher or not) who inspires.  People who “tell” me things get my interest, but that is about all and yes it is great when people can explain things to me, especially if I do not understand the concept.  It’s good to explain so that you can get a ‘buy in’ and certainly the teacher, who demonstrates, will also get my attention, but usually just until the demonstration is over.  For me, the bonus is a teacher who can do all of the above – man oh man, that is pure inspiration!

A teacher can tell you about passion, a teacher can explain what passion is all about.  I dare say that, on occasion, a teacher can even demonstrate what passion is, but for me my mentor, inspires the passion in me.

Some time ago, I wrote about my mentor – she inspires me.  She challenges me to be all that I can be and then some more.

We are all, in one way or another ‘teachers’, whether by formal training or not.  We teach our children, our animals, our staff, our friends and acquaintances – most of all we teach ourselves as we learn about life.

What kind of impression will be your legacy?  What kind of teacher are you?

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

HR 101 - What to do When . . . You Want to Dismiss Staff - Part 5

HR 101 - WHAT TO DO WHEN . . . . You Want To Dismiss Staff? Part 5

By Nikki Viljoen – N Viljoen Consulting CC.

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

Following on from last time . So what exactly would be considered as “fair practice”?

Let’s examine this a bit more.

Firstly the employer must ensure that a proper investigation takes place in order to ensure that there are grounds for dismissal.  Whether or not this is a formal enquiry at this point does not make any kind of difference as this is just the preliminary investigation.

Once it is ascertained that there are sufficient grounds, the employee must be notified in writing, that there are allegations and what these allegations are.  Remember to use language that the employee will understand – so in essence – keep it as simple as possible.

The employee should then be allowed to respond and state their case or give circumstances etc around why they did whatever it is that they have been accused of doing.  They have to be given the opportunity to answer to the charges or allegations made and give their own explanation.  This is usually when the disciplinary hearing would take place.

The employee also needs to be given a reasonable amount of time in which to formulate a response to the allegation(s) or charges that has been levied against them.

The employee is also entitled to request and receive any assistance that they may require from a trade union representative or fellow employee and may even ask for assistance from the HR department if they are not sure of the process or how to proceed.

After the inquiry has been held, the employer must advise the employee of whatever the decision is that has been made.  This advice or notification must be made in writing and a copy retained in the employees records.

Any disciplinary that is taken against trade union representatives or any employee that holds any kind of office bearing position or any official of a trade union, should not be taken without first notifying the trade union.  The trade union should then be consulted before any action is taken against that particular staff member.

If the decision is taken to dismiss an employee, the employee has to be notified in writing that they are being dismissed and of course the reason for the dismissal.  At this point the employee has to be reminded of their rights in terms of the appeal hearings and their right to refer the matter to a council with jurisdiction or even to the CCMA for mediation or to any other dispute resolution, in terms of the employers laid down, or previously negotiated and accepted policies and procedures, or any other policies and procedures that have been established and agreed to by means of a collective agreement.

There are obviously exceptional circumstances where the employer cannot reasonably be expected to follow these guidelines and in these instances the employer would then document the reason why these guidelines could not be followed and copies of this documentation must then be retained and filed in the employee’s personnel file for future reference.

It is a legal requirement for employers to keep and maintain records for each employee.  All transgressions, whether they resulted in a disciplinary hearing or not, should be recorded in the file together with any hearings that may have taken place.  Actions taken against the employee by the employer must also be recorded and maintained as well as the reason that these actions were taken.

Next week we will look at Dismissals and Industrial Action.

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

Sales 101 - Boosting the Sale and Soft Selling

I don’t know about you guys, but I am a real fan of the South African Lotto (AKA the lottery).  Granted most of us win far less than we pay to play, but for me, as long as it is fun and not an addiction – where’s the problem?

I used to grab a couple of ‘quick picks’ each week leaving the thrill of the win up to the Universe as the machine picks the numbers that you end up playing, on a random basis.  I was fairly successful and used to feel the same sense of elation and well being, whether I won R7.00 (my smallest and most frequent win) to a few thousand Rand (my largest win), and since each ticket was R2.50 the R20.00 or so I spent a week was really not a train smash at all.

Then they upped the cost to R3.50 a ticket and now they have introduced another component called “Power Ball”.

Powerball forced you to choose your own numbers and that has changed the whole ‘feel’ of the experience because now I have to choose the numbers which means that I am also looking at statistics to see which numbers come up more than others and ‘my win’ is no longer left entirely up to chance.  The draw is also done on two entirely different days to the normal lotto draws. This has also changed with time though and now the machine can also choose these numbers for me.

Thing is though that whilst I was quite happy to accept the R1.00 increase, I doubt very much that I would have been enamored with, say a R2.50 or R3.00 increase.

The R1.00 increase, together with the introduction of the “Power Ball” game gives the perception that I am getting more value for my money.

But what if the lotto ticket was, say R100.00 a ticket?  Would I be willing to spend that amount of money twice a week?  I doubt it very much – in fact knowing the kind of person that I am – I probably would not play anymore at all.

So what does this all tell me?  Well, generally speaking it evidences that the more the item costs the more reluctant people are to spend the money in the first place.  Put that together with the risk involved and people become even more reluctant to spend the money.

In the grand scheme of things, there are a relatively small number of individuals who are willing to take financial risks.

So therefore to make the ‘sale’ more attractive, it is in your own best interests to ensure that the perception is that the risk is kept to a minimum.

That’s why referrals work so well.  You see, because the product or service arrives tried, tested and trusted, the perception is that there is very little risk.

So for me, the biggest and easiest way to reduce risk is by being recommended by an existing client or contact.

It’s the easiest way to increase my database and the easiest way to boost my sales and most definitely the easiest way for me to get new business.

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

Business Tips - Managing Your Business - Part 2

BUSINESS TIPS – Managing Your Business – Part 2

By Nikki Viljoen – Viljoen Consulting CC – December 2010
Last week we had a look at some of the issues around Finance and today we continue with Margins.
As usual, let’s have a look at exactly what a “margin” is.  The Wiki says :
“Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.

The profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss.
Profit margin is an indicator of a company's pricing strategies and how well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies.”
The easiest way for me to remember it is that the margin is the difference (financially) between what everything cost (not only materials, but also time and expenses [for me as a service type business] and research, printing, paper, ink etc.) and what I charge.  If your margins are too low, you will never make a profit and on the other hand if you set your margins too high, you run the risk of never making a sale – it’s a delicately balanced scenario!
Essentially there are two ways to increase your margins (profit margins) and those are either to cut costs or cut prices.  In order to know which one to do it is obviously essential that you focus on your margins on a regular basis and also on what the current economic trends are as it is not always a good thing to cut prices, although it is always a good thing to cut costs, as long as that ‘cost’ does not interfere with the quality of your product or service.
Sometimes increasing the price of your services or your product has a powerful statement attached to it – it says “I’m worth it” or “the product is worth it”.  I know that when I started out, I had nothing to compare my services to and the result is that I used my corporate ‘salary’ as a gauge to set my hourly rates – wow, was that ever a big mistake.  I priced myself far too low and the result is that I attracted many clients, all of who desperately needed by expertise, but all of who could not afford me!  Within 24 months I had doubled my hourly rate and I was attracting clients who not only needed me, but who could also afford me.
In this particular instance, me raising my charges had an incredibly powerful effect – it said ‘this is what I am worth’ and the psychological effect on me, as an individual, was incredible. Before, even though my prices were very low, I was chasing business by giving discounts, hoping to retain the very clients that could not afford my services in the first place – that was a very costly mistake – I wrote off a lot of money to bad debt.
Nowadays, if I am going to give a discount – it is because there is a huge value to me and it is based on a whole different set of criteria, such as (but not limited to) early or timeous payment, no of hours on retainer etc.
Cutting costs is definitely the best way to increase your margins and thereby increase your profits.  This is not always an easy thing to do particularly in tough times, when you are looking at staff and salaries.  You have to divorce yourself from the emotions and look at the cold hard facts.  Can you do without this particular function being performed by a single person, in other words “Don’t make it about a person or personal”, but rather about what’s good for the Company.  If you have two people doing work that can be done by one person, then it stands to reason that you only need to employ one person – don’t get sucked into the emotional side of things.
Keeping your costs to a minimum and your clients to a maximum is therefore the best way to ensure that your margin remains on track and is the best way to meet and even surpass your budget requirements.

Next time we will have a look at your customers.

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

Motivation - The Basics to Succeed

MOTIVATION – The Basics To Succeed

By Nikki Viljoen of N Viljoen Consulting CC- June

I am often asked “what is the recipe for success?”  Well at the risk of upsetting a huge bunch of the population, let me say this – success for each person means different things.  So how you as an individual would then achieve that success would also then vary from individual to individual.

In my opinion through there are certain elements that are necessary, irrespective of what your idea of success may be.

These are (but not limited to) having the right attitude.  Your attitude must reflect who you are as an individual.  So if you feel that you are lost and on a ‘road to nowhere’ that is exactly what will be reflected in your attitude.  Clearly the best attitude to have is a “Winning Attitude”.  If you think of yourself as a winner, as someone who can do what is required or necessary, then this will be reflected in the way that you conduct your business.

Don’t get me wrong – you still have to have fun with what you are doing, otherwise – what’s the point?

But getting things done, efficiently and effectively and treating people in an open minded manner will show that although you mean business you are still open to the point of view of others.  It’s all in your attitude.

Common sense, although in very short supply, in my opinion also counts for a great deal in having the right attitude as does those who are willing to go the extra mile.

So have a good look at your attitude, the way it is rather than the way you think it is.  Be honest with yourself and if you feel that you need an attitude adjustment  - there is no time like the present!

What about belief? Do you believe in yourself?  Do you believe that you can be a leader or that you can be true to yourself and that you can make a difference in the lives of others?  You see, if you cannot believe in yourself – how is it possible that you think that others would believe in you.

Stands to reason don’t you think?

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

HR 101 - What to do When . . . You Want to Dismiss Staff - Part 4

HR 101 - WHAT TO DO WHEN . . . . You Want To Dismiss Staff? Part 4

By Nikki Viljoen – N Viljoen Consulting CC.

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

So here we have George, who has now attended his disciplinary hearing for a) stealing stock and b) hitting Simon.  Now what?

Well, generally speaking it would not be the right thing to do, to dismiss an employee for a first offence.  Obviously there are always exceptions, depending on the severity of the offence!

Some of the examples of serious misconduct are, but not limited to, and it should be noted that each case has to be judged on its own merits;
• gross dishonesty
• willful damage to the property of the employer
• willful endangering of the safety of others
• physical assault on the employer
• physical assault on a fellow employee
• physical assault on a client and/or customer
• gross insubordination.

If the case does not meet the requirements of section 188, which states

(1) A dismissal that is not automatically unfair, is unfair if the
employer fails to prove-
(a) that the reason for dismissal is a fair reason-
(i) related to the employee's conduct or capacity; or
(ii) based on the employer's operational requirements; and
(b) that the dismissal was effected in accordance with a fair
procedure.
(2) Any person considering whether or not the reason for dismissal is a
fair reason or whether or not the dismissal was effected in accordance
with a fair procedure must take into account any relevant code of good
practice issued in terms of this Act.51

then the dismissal will not be fair.

When the chairperson was deliberating on whether or not to impose the penalty of dismissal on George, not only should he take into consideration the gravity of the misconduct but he also has to take into account other factors such as, but not limited to:
• length of service
• previous disciplinary record
• personal circumstances
• the nature of the job
• the circumstances of the infringement itself.

The chairperson also has to take into account what the penalty was for any previous case, in which the circumstances were the same.  You see all employees have to be treated in the same manner – so if there was a previous case such as this, the penalty has to be the same as this.

Next week we will have a look at what a “Fair Procedure” would be.

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

Sales 101 - Taking the Pain for Gain

SALES 101 – Taking the Pain For Gain

By Nikki Viljoen – Viljoen Consulting CC  September 2009.

One of my biggest challenges, when I am selling, is getting people to think proactively.  It’s a real problem I can tell you.  Most people, especially those who are small business owners or entrepreneurs are so busy guarding every cent, that they very seldom see the woods for the trees.  Quite frankly, therein lies most of the problem – that and the fact that they usually treat their staff like members of their families.

These are the very people who should be buying my policies and procedures to be implemented to cut down the risk of fraud or theft.  I am often saddened when I see their pain and total lack of understanding of what has just happened to them.  You see, they don’t expect the worst and they are therefore often totally unprepared for what comes their way.

The result is of course, that I usually am only called in when there is problem.  When theft has already occurred, I get called in to do the disciplinary, or do the audit on the stock to ascertain exactly how much stock or money has gone missing and then implement policies and procedures to ensure that it doesn’t happen again.  Talk about closing the stable door once the horse has immigrated! My problem of course is that when the smelly brown stuff hits the fan, I am then expected to sort the whole problem out and I am supposed to do that immediately!  Suddenly when the client feels the pain, they want something done about it, but until they feel that pain they have no concept of pain.  It’s the same as realizing you have completely run out of toilet paper when you’re already seated on the pot!

Sometimes, it is really difficult for me to understand why people don’t want to listen or refuse to understand that failure to implement procedures and controls, will in all probability end up in pain especially when these people plan everything else so meticulously in their lives.  The have worked out to 3 decimal points exactly how much it costs them to print a page but they don’t have, say a supplier procurement policy in place that could save them thousands of rand in VAT claims or staff members don’t have to sign an attendance register and they end up at the CCMA having to pay out thousands of rand to a disgruntled employee whose perception it is that they are hard done by.

Yep, sometimes people just have to feel the pain before they believe that the experience could be a painful one.

I really have to start thinking of myself as a ‘pain hunter’.  I have to ensure that my prospects understand just how painful it can become if they do not have proper policies and procedures in place, then I have to convince them that I can take that pain way, irrespective of whether that pain is perceived or real – I am the one who will take the pain away.  I have to make them really grateful that they have me there to take the pain away.  I have to pay special attention to understanding all the different aspects of the client’s situation, to their fears, perceived or otherwise.  I have to understand just what will take to make them react in a proactive way and thereby save them a whole lot of unnecessary pain (and then of course the additional expense that goes with that).

But you know what, perhaps I should just leave them to experience the pain that I know is going to come – I get more money that way!  Perhaps I am just that little bit tired of explaining things to people who clearly don’t want to listen or take actions because “well, it won’t/can’t/shouldn’t happen” to them. Perhaps that is why I have two prices – a ‘proactive’ price for putting things into place when I suggest them and then of course my ‘reactive’ price when I have to run around like a mad person to fix up and sort out the mess when it happens.

Yep, perhaps I should just sit back and wait for the smelly brown stuff to hit the fan, splatter and splash all over the place, then arrive with my sunny smile and pleasant disposition and sort it all out for them and then sit back and watch my bank balance grow.

I think I know what I am going to do . . . . as a small business owner or entrepreneur, do you know what you are going to do?

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

Networking 101 - Introverts & Extroverts

NETWORKING 101 - Introverts & Extroverts

By Nikki Viljoen of N Viljoen Consulting CC

I was discussing Networking with one of my colleagues the other day when he turned around to me and said, in all honesty “I’m not a natural networker because I am an introvert!”  I stood there with my mouth hanging open . . .  for several seconds.  You see, I am a natural networker and I am also an introvert!  Ok everybody, you can get up off the floor now and stop laughing!  I am an introvert!  Ask my shrink!

It’s not that I am shy around people or afraid to be in public.  Those of you who know me can attest to that.  I not too good at small talk though, I much prefer to get into debates on issues that are important to me or not . . . Being with people on a constant basis often leaves me completely drained of all energy and I spend most weekends, on my own, relishing in the ‘space’ that I have on my own without any other people around me.

I am not ‘naturally’ good with people and although I have been told that I am a ‘people’s person’, I don’t feel that way at all.  Mixing with people and interacting with them is a conscious thing for me and it is something that I have to work at – hard.

Why do I work hard at it?  Well that’s quite simple – you see I understand the value of networking.  I don’t see networking as a waste of time or a pain in the butt (although generally speaking, for introverts it is exactly that).

Networking for me, is me investing in myself and my company.  You see, by developing my network in the way that I have, when I need a particular product or a particular service, I don’t have to spend hours doing research on the internet, or paging through the yellow pages, or time and money sending out endless e-mails looking for help. It takes me one or two phone calls to find the exact person that I am looking for.  In fact, if the truth be told, most of my colleagues phone me when they need anything because I usually have that particular contact within my data base.

For me that is a triple win situation.  You see not only do I add value to the person who is looking for someone/something, I also add value to the person in my database who is that someone or who can provide that service, but in connecting these two, I have added huge value to myself – both will feel indebted to me and payback is always very sweet!

There’s a great deal more to Networking as an introvert, so more next week.

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

Business Tips - Managing Your Business - Part 1

BUSINESS TIPS – Managing Your Business – Part 1

By Nikki Viljoen – Viljoen Consulting CC

Most will agree that the light at the end of the tunnel is no longer an oncoming train and whilst the 2008 recession (such as it was) is now officially over, it will take the economy (read SMME’s) some time to rally, make a come-back and hopefully deposit us right back to where we were – obviously not in terms of what caused the melt down in the first place, but certainly in terms of running productive, successful businesses.

I know that I really had to ‘grit’ my teeth and bear it for a few months – you know what I mean – the uncertainty of money coming in or getting work in or making the sale and so on.

Fact of the matter is , that when you are in the dwang – that’s exactly where you are and sometimes it is just a matter of waiting it out.  There are a number of tips though, that will help and guide you through, should you find yourself in difficult and/or trying times.  Actually it is not a bad thing to get yourself in the habit of doing these all the time – bad or good times.

Finance
For me, if you have lost control of your finances, then you have lost control of your business.  I think that most people, when they think of business finances, what they think about are the books and whilst I agree with that on some level, I also want to make it very clear that the books are ‘reactive’. By that I mean that they are ‘in the past’ – what is contained in your books has already happened.  Cash flow, on the other hand, governs what is happening right now.

Think about it for a moment – it doesn’t matter how many people owe you money, or who have promised to pay you – the bottom line is that when you look at your bank account, it is about what is actually there (less what needs to be paid out) that actually counts.  So it stands to reason that the cash flow needs to be properly managed and should be discussed at every management meeting.  If, like me, you are on your own, it is a good idea to make time (at least weekly) to check up and see what is going on.

Make sure that the Management Accounts are monitored on a regular basis and that they are consistently checked for issues such as the key ratios, this will assist in enabling you to identify trends earlier, when you can still do something about them, rather than later, when you are already in the smelly brown stuff.  Updating your cash flow forecasts on a regular basis will also assist in ensuring that you are ahead of the game – remember to watch the sensitive bits – issues like a change in the exchange rate or a price hike in fuel could have a huge effect on your margins.

Next time we will have a closer look at margins.


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