Networking 101 – Identify People You Want to Meet

 Networking 101 – Identify People You Want to Meet

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Dr Renate Volpe, in her “Networking Tips” cards, says “Ask for the attendance list of events upfront so that you can identify the people you would like to meet.”

Some of the networking events will be facilitated or even semi-facilitated and when this is the case, it is easy to get hold of the list of people who will be attending.

For example, if you attend any of the Business Engage events, the list of hosts is generally e-mailed prior to the function taking place.  This ensures that, as a participant, you will be able to decide beforehand which ‘hosts’ you would like to meet, and engage with.

In Inner Circle meetings, however, you will never know who is going to attend upfront.  In many instances, people who have committed to coming to the meeting either don’t pitch up or phone at the last minute to say that they will not be attending.  In this instance, although you are present at the meeting, a list of attendees, with their e-mail addresses is mailed to all the participants during the course of the following day.  This means that you can contact these individuals if for some reason you were unable to engage with them during the course of the meeting.

The BizNetwork meetings sadly, are very informal – there is no facilitation whatsoever and it is up to the individual to engage with whomever they wish.  This, in my opinion, is just as bad, if not worse than cold calling as you have no idea who the person is or in what field they are.

BNI meetings, although very facilitated, usually engage with the same people on a weekly basis.

As an entrepreneur, it is essential that you actually find the medium that you are comfortable in and which allows you to engage with others, in the most comfortable fashion.

For me these are meetings like Women In Finance and Inner Circle – these are the meetings that are semi-facilitated and allow me the freedom to interact with people who I have met, or been introduced to, at the meeting.  BNI meetings for me, are too facilitated and too structured and meetings like BizNetwork are too informal. However, that’s not to say that you might not enjoy them – this is just my personal opinion.

Once you have decided on which meeting is best for you, make sure you are armed with enough business cards; there is nothing worse than running out of them when trying to network.

Should you wish to know more about Dr Renate Volpe and her cards please visit her website at http://www.drrenatavolpe.co.za

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

Business Tips – You Are Not Alone At All

 Business Tips – You Are Not Alone At All

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd – May 2009

Starting your own business and keeping things on track and going in the right direction is probably one of the most daunting tasks you will ever attempt.

You are everything to all people – your clients, your suppliers, service providers, your staff, and even yourself.  Your accountability and responsibility increase dramatically, and the pressure, and stress that you put yourself under would be the same as asking someone to balance a fully grown elephant on the head of a pin.

There are instances where things go wrong, and you haven’t made any kind of provision for them, simply because you actually had no clue that they even existed, and there are other things that go wrong because – well actually, you messed up.  The bottom line is that sometimes things go wrong. 

These mounting issues and the way that you react to them actually will shake you to the very core of your being.  Your self-confidence takes a leave of absence, and you wonder if you should have yourself committed to the nearest mental institution because clearly you are not of sound mind, and judgment, to actually think that you could run your own business, and be successful at it!

Sounds familiar, doesn’t it?  I promise you, you are not alone – we have all been there, to hell, and back again.

Does this mean that you will no longer be passionate about your business – of course not!  What it does mean though is that you will start having to conduct some sort of reality check with yourself.

For me, the easiest way is always to write things down.  So make lists of everything.  Things like “what you have accomplished” and, “what still needs to be done”.  How about “all the opportunities that you have uncovered”? Then, of course, there are “issues” or, “things happening,” or, “things that could happen” in the business that could have a bad, or negative effect on your business.  Decide which are avoidable, and make a decision on how you are going to avoid them going forward.  Look at the ones that are unavoidable, and decide how best to deal with those too.

Put together a plan of action, and then give yourself target dates, and times to complete the task.  Be realistic.

Once you have completed these lists and the “how-to” of what you can, and can’t do you will have a feeling of absolute empowerment.  You see working through issues in this manner shows you that you will be able to work through anything.

Keep your head, keep your cool, calm down, and work through each issue . . . one at a time.

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

HR 101 – What to do When . . . Your Staff Want to Strike – Part 2

HR 101 – What to do When . . . Your Staff Want to Strike – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

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

So what we now know, is when the staff cannot strike – let’s take a step back though and define exactly what a strike is:

Section 213 of the Labour Relations Act (LRA) says “The partial or complete concerted refusal to work or the retardation or obstruction of work, by persons who are or have been employed by the same employer or by different employers, for the purpose of remedying a grievance or resolving a dispute in respect of any matter of mutual interest between an employer and an employee, and reference to “work” in this definition includes overtime work, whether it is voluntary or compulsory.”

What does all of this actually mean?  

This means that in order for it to be termed “a strike” there have to be three definite components.

The first one of course has several parts to it and it revolves around the issue of work.  It is (but not limited to):

• “Refusal to work”.  This means that any refusal to work, whether it is a “go slow” or work relating to overtime or even if the employee refuses to “clock in/out” and so on.   So let’s take the example of George, who is in a production line at a factory.  George’s job is to pack the finished product into tissue paper, place it back onto the conveyer belt and from there it goes to the next person who packs the wrapped product into a box.  George abandons his station at the conveyer belt and refuses to wrap any of the product thereby refusing to perform any of his duties.

• “Partial refusal to work”.  In this instance, George stands at the conveyer belt and wraps only some of the product into the tissue paper and then also refuses to place the wrapped items back onto the conveyer belt.  In this instance, he is only refusing to perform some of his duties but not all.

• “Retardation of work.”  In this example, George continues to perform his duties but at a rate that is as slow as possible, without coming to a dead stop.  This is commonly known as “a go slow”.  George’s manager asks George to assist with the packing of the product into boxes, but George refuses as his contract does not specifically state that he must pack product into boxes.  This is known as “work to rule.”

• “Obstruction of work”.  In this instance, George does not wrap the product at all but does put the unwrapped product back onto the conveyor belt which means the product cannot be packed but must be removed from the packing area and taken back up to the point where it should be wrapped by George before any packing of boxes can continue.

The second component in terms of a strike is that a single employee cannot strike and it, therefore, has to be two or more employees that refuse to work before it can be considered a strike.

The final component in a strike is that there has to be a purpose to the strike which is usually to resolve a dispute or to remedy a grievance.  To resolve a dispute is usually around the issue of salary increases or benefits and a grievance is usually around issues of perceptions of unfair dismissal.  In this instance, George is dismissed for dishonesty in that some of the wrapped product ended up in his pockets or in his home without any of it being paid for.  George is disciplined, found guilty of misconduct and dismissed and his colleagues feel that he has been dismissed unfairly and go on a strike in an effort to force management to give George his job back.

Please remember that a grievance of any nature can be and is anything that is between the employer and the employee whether there has been a collection bargaining process or not.

Next week we will look at protected and unprotected strikes.

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

Blogging 101 – Have fun with it

 Blogging 101 – Have fun with it

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

At the last count, I noticed that I have now officially written in excess of 2000 articles. That’s quite impressive even by my standards.  Sure there have been times when I have written an article every single day.  There have been times when I have even been in advance – that means I have actually written articles before I needed or even wanted to post them.

On the other hand, there certainly have been times when I haven’t posted or written anything for days, or weeks, or even months.  Those have been times when life just “happened” to me instead of me being in control.  These have been sad times, or when my headspace has been wrong.  Those were times when I was unable to write because the writing was “just not fun”!

There is no logical reason to do anything that is not fun, and whilst I do understand that there are often tasks that need to get done irrespective of whether we enjoy doing them or not, the reality is that I cannot be creative if I am not enjoying myself, I cannot be creative if I am not having fun and quite frankly, I certainly would not have been able to sustain, or maintain the number of articles, or even more importantly the quality of the content of the articles if I were not enjoying myself and having fun.

So in order for me to enjoy writing the articles, it is extremely important for me to choose the niche that I am interested in.  The reality is that I write for my own enjoyment.  If what I am writing about is useful to others or if I can make money out of what I am writing about, then for me that is an added bonus.  If I had chosen a niche market in order to write purely for financial gain, I would have, in all probability found the writing difficult if not altogether painful.

Much is said about compromising between what you enjoy, and love to write about and what your readers would like to read.  If you only write about what you love, and not what your readers would like to read – well then you have a problem because chances are you will be the only one who will be reading what you have written.  Clearly, the trick is to either find something that you love to hear, or read as well as something that other people love to hear, or read, that you are comfortable with, and then go with that.

The old adage of “if you can’t measure it you can’t manage it” always applies.  You can’t improve if you cannot see that you are improving, or if you think that people do not value what you are saying.  So set targets, or goals for yourself so that you can track your progress, and as you see that more and more people are reading your blogs, so too will your motivation to write more increase.

As your confidence increases so too will your desire to monetize it.  Money is also a huge motivator, especially in the short term.  This can be done in a number of ways, and the two that readily spring to mind are to add opportunities or affiliate links.

Don’t expect to get rich overnight though – slow and steady usually wins the race.

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 – Networking is an Investment

 Networking 101 – Networking is an Investment

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Dr Renate Volpe, in her “Networking Tips” cards, says “Take a long term view.  Networking is an investment in a longer- term relationship, don’t be overly opportunistic.”

So many times, when I talk to people about networking and how it has changed my business, I get “the look” – you know that look that says it all.  Often “the look” is followed by the words – “I hate networking, it doesn’t work for me”.

Upon delving just a little deeper, I often find out exactly what the problem is.  The person concerned has been to exactly one networking meeting and the expectation has been that they will walk away from the meeting having sold their product or service to every single person in the room!

Let’s think about it logically – every person there has gone to the meeting with that exact same intention.  Let’s face it people – no one goes to a networking meeting with the intention of buying anything.  So you need to change your mindset – yes again!

I always like to say that networking is to building a business relationship as speed dating is to dating!  Ok, you can stop laughing now, let me explain.

When you go to a networking meeting or event, what you are actually doing is meeting the 20 or 30 people there in a very short space of time.  If you went out and did the cold calling thing – how long would it take you to physically meet 20 or 30 people?  Well at a networking event, especially if that event is facilitated or even semi facilitated, then you will be meeting 20 or 30 people in a matter of 2 to 3 hours.

You have now been introduced and when you make contact with them it is no longer a cold call.  Now when you contact them, you have common ground on which to build – you met them at the XYZ event and you would like to set up a follow-up meeting so that you can explore synergies and business opportunities.

You still have to build the relationship mind.  Just because you have met them at one meeting doesn’t now make you bosom buddies!  

Even at your subsequent meeting, don’t go in with the expectation that you are going to sell them anything – go in with the expectation that you are building a foundation for a solid relationship.

I usually ask them the first question (just because I am a natural networker and because I can) and that question is usually – “How can I help you – tell me a bit more about your business and what it is that you do?”  

Listen carefully, making notes (it makes it easier for me to remember) on what the person does and what their needs are.  Ask questions about who their target market is, or what their expectations are etc and then think carefully about who, in your database, you can match them up to in terms of synergies.

Follow up – always follow up!  I usually send a mail to the person that I met giving them the details of who I want them to get in touch with, and a copy to the person that I am introducing them to, with the details of the person that I met.  In this way I am effectively introducing them to one another on an e-mail – again it is not a cold call and does away with the awkwardness of such a call.  

Don’t expect anything in return – it will come at some stage, and when it comes, it will be in a flood!

Remember it is a relationship that you are building, build it one step at a time and build it solidly.

Should you wish to know more about Dr Renate Volpe and her cards, please visit her website on www.drrenatevolpe.co.za 

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

Business Tips – How to Manage Your Cash Flow Crisis – Part 5

 Business Tips – How to Manage Your Cash Flow Crisis – Part 5

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd  

In the last 4 articles, we have looked at and dealt with the fact that there are only 3 reasons why you will find yourself in a cash flow crisis.  To remind ourselves, there were:-

1. You’re not making enough money.  

2. You are not getting your debtors to pay you and

3. You are spending too much money!

We also looked at the first step that should be taken and that was to get clarity on what you owe, and what is owed to you, and we did this by means of a debtors and creditors ageing analysis.

Then we looked at cutting costs, discussed putting a budget together, and then making arrangements with your creditors to pay what you owe.

We have pretty much dealt with parts 2 and 3 from the list above, and so today we look at your sales.

Here’s the thing - it doesn’t matter how well you collect the money or how you cut out all of the expenses, the reality is that if you don’t sell the product or service there will be no money coming in to collect!

So you need to sell, sell, and then sell some more!

The fact that there is money to collect attests to the fact that you can actually sell. You just have to replicate what you did before when you sold, and then just keep on doing that better and better.  

The more you believe in your product or your service, the more “believable” you are, and the more you will sell.

Make sure that the value of what you are selling is in line with what you say you are selling.  

Make sure that you deliver on time and that you deliver what it is you say that you are selling or delivering.

Look at your product or service, and see how you can do it better.  Doing it better will also increase your sales.

Always ensure that you are giving your clients what they want and need rather than trying to sell them what you have, or what you think that they may want or need.

Start with your existing clients and ask the question, especially the one that goes “Is there any other way we can help you?”  More times than not, this will get you results, and because the relationship is already there, the “selling” will be a lot easier.  So start there, and then broaden your reach out into the open market.

Remember that you need to measure in order to manage, so it is very important to have a plan in place.

Some of the things that you need to look at or implement when you are putting your plan together are (but not limited to):-

- Plan a sales strategy

- Put a sales plan into place, and this should include things like:-

• A list of all your products or services, and how these are of benefit to your clients.

• A list of your target markets, and your perception of “the perfect client”

• Your sales processes from cradle to grave

• Your sales tools

• Your sales scripts

• How to handle objections, and how to turn cold leads into sales.

To delve a little more deeply into these aspects let’s break some of them down a little more.

Sales Tools

We all need all the help we can get, so it is a good idea to invest in a basic sales tool and this should include the following:

- A Website - in this age of technology having, at the very least, a basic website is of paramount importance.

- Business Cards - besides telling clients, and prospective clients who you are, they bring a certain level of professionalism to the table.

- Brochures – great for giving a visual aspect to your products or service.

- Presentation – always useful to help close a sale

- Templates or samples of your products, or service

- Sales management systems or CRM’s or similar – as you grow the number of clients it becomes easier to lose track of where you are with clients.  So this is very useful.

Sales Process

It’s always a good idea to have everybody doing the same thing in the same way.  Having a documented sales process will ensure that not only does this happen, but also those certain requirements or important information is not forgotten about. Your sales process should also contain the following:

- Leads -  how, and when to make contact

- Prospect – exactly what product, or service that they are interested in

- Presentation – has a demonstration been done for the client or is it still to take place, and when.

- Objections received - what they are, were they handled by who and how.

- Negotiation – what will work best for the client, and you - how will you go about getting the right balance so that a win/win situation is created.

- Finalization - have the authorizations been received, are contracts agreed to and signed off. How many sales were “won,” and why, (goes to replicating a successful strategy) and how many sales were “lost,” and why

- Monitor  -  the sales process should be monitored carefully, and updated on a regular basis.  You need to know how many leads you have, how many have been contacted, how many have been converted into sales, and exactly where you are in the process with each lead and sale.

Finally!  Prevention is always better than the cure, and I have no doubt that once you get yourself out of your cash flow crisis, you will never have any desire to get yourself back into this mess again.

Ensure that the measures that you have implemented to get yourself out of the mess are continued, to ensure that you never go there again.

Measure and monitor what is taking place on a continual basis, and then make the necessary adjustments as, and when they are required.

Remember that according to Parkins’s law, your expenses will always rise to meet your income.  So make sure that your expenses are always under control

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

Inspiration - Profound Success

 Inspiration – Profound Success

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

The quote or rather a piece today comes from Ralph Marston, who says:

“Real success is not merely a matter of getting what you want. After all, a newborn infant with a loud cry can accomplish that.

Real success comes from fully being who you are. Real success comes from giving your own unique value to life.

The less you need, the more fulfilled, and powerful, and effective you are. As your peacefulness increases, so does your energy level.

Choose not to let the small things anger you, or annoy you, or distract you. And keep in mind that most things are small things.

Stop fretting so much about whether or not you're getting your way. Seek instead to relax your judgment, and to find the unique value that is in each moment.

You cannot ever fully control everything that happens, and in fact, you would not want to do so. Enjoy true success by learning how to take whatever happens, and to make it work for the good of all concerned.”

Wow!  Powerful words indeed, and as I read through them, I can see once again, that I really need to work on my anger around small issues, and control issues.  I seem to be getting angry all the time, and it’s over things that I really should be walking away from – such a time waster – anger over silly things.

I think, however, that it is important to examine ourselves from time to time to see where we are at that point in time.  To try, and find the root, or cause of what it is that is making you react in the way that you are currently reacting.

For me at the moment, I am aware of the spurts of anger, and then I usually get annoyed with myself for being angry at silly things!  So it is really time to ascertain what is at the cause of the anger – a time for self-examination – a time to deal with issues so that I can move forward.

So, tell me – do you know what is impeding your advancement towards your own personal success?

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

 

HR 101 – What to do When . . . Your Staff Want to Strike – Part 1

 HR 101 – What to do When . . . Your Staff Want to Strike – Part 1

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

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

How much do we actually know about when the employee can strike and when they can’t?

Let’s explore this situation together.  Firstly let’s have a look at when employees can’t strike.

According to the Department of Labour and the Labour Relations Act (LRA), employees cannot strike if (but not limited to):-

1. the employees have entered into an agreement that they have collectively entered into that then prevents them to strike because of the reason why they want to strike.  Ok, that sounds very confusing, let’s give an example.  Let’s say that the workers and management have all agreed to an incentive bonus at the end of the year based on performance and turnover and profit.  The first year that this is happening, the performance of the employees has not been great and this has resulted in the company not making targets because the turnover was not great and then because of huge theft in the warehouse, the profits are really bad.  The union cannot now call for the company to present 13th cheques as a bonus.  In this instance, if the workers went on strike it would be deemed illegal.

2. the employees have entered into an agreement where any disputes have to be referred to arbitration. What does this mean, let’s have another example? The employees (and/or the Union) have signed a document stating that they will not strike and/or call for strike action until an issue (whatever that issue and/or disagreement may be) has been referred to arbitration. If the matter is still at a deadlock, with neither side being able to move, then under certain conditions (and they then have to list these), strike action may be called for. So the employer offers an increase of 8%, the employees decide that that is not good enough, they want an increase of 20%.  Neither side backs down and the union now calls for strike action.  In this instance, if the workers went on strike it would be deemed illegal because they have not gone through the arbitration process.

3. “the issue in dispute is one that a party has the right to refer to arbitration or the Labour Court in terms of the Act.’”  Again – what does this mean?  Let’s assume that one of the employees was caught with his hands in the cookie jar so to speak.  He has stolen large quantities of money and he has been disciplined and found guilty of misconduct and he has been dismissed.  His fellow workers are really angry about his dismissal because they pretty much like the guy and well stealing from your employee is actually not a bad thing, so they go on strike demanding that he be reinstated.  This would be considered an illegal strike as the dismissed employee has not (yet) gone to the CCMA for arbitration.

4. the employee works in what is considered an essential service or a maintenance service.  So this would be people like nurses and/or the refuse removal guys and so on.

Next week let’s look at exactly what a strike is and when a strike can happen.

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

Blogging 101 - The Writing

 Blogging 101  – The Writing

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

About now we hit a complete blank!

We all know what it is that we know and given any other opportunity to tell people what it is that we know is never a problem.

Ask us to write down what it is that we know in anything other than a ‘strictly business sense’ and quite frankly we are up *&^% street without a paddle.  Actually, if the truth is told, many of us do not even have any kind of business profile to speak of.

Here’s the thing though – to talk and gesture and pontificate, well that’s easy – we do it every day, but to put our thoughts, our passion, our feelings down on paper, well that’s an entirely different thing altogether!

Somehow, through our own perception, we lock into something dark and unacceptable when we put our own thoughts down on paper.  Truth be told, I guess – these thoughts come back to haunt us or bite us on the rear end.  Strangely enough for me at any rate, what I write about is what I most need to hear myself.

Many of my most profound lessons and the things that I have most needed to learn or understand are the things that I have shared with the world, on my blog.

Many is the time that I have ‘kicked’ your rear end and my own at the same time!

You see, I don’t just rely on “what I know”, I research almost every article that I write, which means, not only do I provide you, my reader, with information, but I also keep myself up to date and that is extremely important!

Often as Entrepreneurs and Small Business Owners, we are so caught up in the running of our own businesses that we do not keep up with what is happening in the world around us. Doing the research for my blogs allows me to do this.

My marketing becomes my training and my R & D too – how cool is that?

Blogging really has become part of my marketing and the time that I spend on it is really worthwhile.

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 – Successful Leaders & Networking

 Networking 101 – Successful Leaders & Networking

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

In her “Networking Tips”, Dr Renate Volpe states “Successful leaders spend up to 48% of their time networking.  How much of your time are you spending building your business network?”

Some time ago at one of the Inner Circle meetings that I hosted in Cresta, there was this chap that sat quietly listening to what was being said.  When it was his turn to stand up and tell the audience who he was and what he did, he said something along the lines of “Only unsuccessful people network”.  

Needless to say, I was gob-smacked!  Why then would they have all of these “old boy clubs” that we so often hear about in the movies and that we know, from personal experience to be alive and well?  Why would children in Private Schools make the kind of contacts that they are urged to make, from junior school?  

I have watched my Godson Bruce, grow up from being a little titch in Junior school at the Ridge, where he made friends with all manner and means of children, whose parents were well connected both politically and in the business field.  I watched him go off to Michael House, in the Midlands and heard the tales he told of which children he had befriended and who their parents were.  Then he won for himself a scholarship in one of the most prestigious schools in the world, Wharton’s Business School in the University of Pennsylvania (which incidentally was founded by Benjamin Franklin), I again heard who he is now connected with and which professors he works with for his pocket money or allowance – and what I hear most of all is why he chose to work for them.  

Don’t get me wrong, Bruce is not a snob, he never has been, but he understood how important it was to make the right connections, at the beginning of his working life.  

I wonder why he did that if only ‘unsuccessful’ people need to network!

Could it be that the chap who came to my meeting had it all wrong?  Perhaps what he meant to say was that “Successful people network”!

Do you network enough?

If you would like to know more about Dr Renate Volpe, please feel free to visit her on www.drrenatevolpe.co.za 

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

Business Tips – How to Manage Your Cash Flow Crisis – Part 4

 Business Tips – How to Manage Your Cash Flow Crisis – Part 4

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

In the last 3 articles, we have looked at and dealt with the fact that there are only 3 reasons why you will find yourself in a cash flow crisis.  To remind ourselves, there were:-

1. You’re not making enough money.  

2. You are not getting your debtors to pay you and

3. You are spending too much money!

We also looked at the first step that should be taken and that was to get clarity on what you owe and what is owed to you and we did this by means of a debtors and creditors ageing analysis.

Then we looked at cutting costs, discussed putting a budget together and then making arrangements with your creditors to pay what you owe.

This time we continue with some things that you can do immediately to help alleviate the situation.

Remember in part 2 we discussed the importance of knowing exactly what you owe and what you are owed.

Now it is the turn of your clients who owe you money (or your debtors as they are known) to get sorted.

This is where you have to use every single communication medium that you can, to communicate with your client.  So you can phone, or e-mail, or SMS and even ‘WhatsApp’ them or use all the different types of social media communication to contact them.  You see, you have to communicate with them and continue to do so until you have been paid in full.

It’s always a good idea to make notes on who you have spoken to, mailed, sms’d etc.  Record the date and time, who you spoke to and what was said. If for example, they said that they would pay on Wednesday the 12, make a note to remind them that they have promised to make a payment.  When they pay, contact them again to a) thank them for making payment and b) to get a commitment for the next payment.  If they don’t pay on the due date, of course, you need to contact them to a) find out why they did not make a payment and b) to get them to make another commitment to pay.  Be friendly but firm in your dealings with them and make them understand that they do have to pay and pay sooner rather than later.

For the money that has been outstanding for a long time (for me that is anything over 60 days, but you need to make this decision upfront), the reality is that you have to take the emotion out of the situation and get tough with yourself.  Hand them over to the attorney for collection.  The reality is of course that many of them are in all probability, dealing with their own cash flow problems.  So being empathetic with their plight will stand you in good stead.  That said though, you still have to deal with your own cash flow crisis – so get them to pay up, or hand them over.

Finally, for today’s lesson, remember that you cannot expect your clients to pay you or be honourable with you if you are not being honourable with your suppliers.  You need to do to others what you want done to be done to you!

Be honourable yourself.  Let your words be congruent with your intent and as your receive, the money payout what you owe – even if it is before the due date.

Next time we will look a bit more in-depth at how to take back control of your “in crisis” cash flow.

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

Business Tips – How to Manage Your Cash Flow Crisis – Part 4

 Business Tips – How to Manage Your Cash Flow Crisis – Part 4

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

In the last 3 articles, we have looked at and dealt with the fact that there are only 3 reasons why you will find yourself in a cash flow crisis.  To remind ourselves, there were:-

1. You’re not making enough money.  

2. You are not getting your debtors to pay you and

3. You are spending too much money!

We also looked at the first step that should be taken and that was to get clarity on what you owe and what is owed to you and we did this by means of a debtors and creditors ageing analysis.

Then we looked at cutting costs, discussed putting a budget together and then making arrangements with your creditors to pay what you owe.

This time we continue with some things that you can do immediately to help alleviate the situation.

Remember in part 2 we discussed the importance of knowing exactly what you owe and what you are owed.

Now it is the turn of your clients who owe you money (or your debtors as they are known) to get sorted.

This is where you have to use every single communication medium that you can, to communicate with your client.  So you can phone, or e-mail, or SMS and even ‘WhatsApp’ them or use all the different types of social media communication to contact them.  You see, you have to communicate with them and continue to do so until you have been paid in full.

It’s always a good idea to make notes on who you have spoken to, mailed, sms’d etc.  Record the date and time, who you spoke to and what was said. If for example, they said that they would pay on Wednesday the 12, make a note to remind them that they have promised to make a payment.  When they pay, contact them again to a) thank them for making payment and b) to get a commitment for the next payment.  If they don’t pay on the due date, of course, you need to contact them to a) find out why they did not make a payment and b) to get them to make another commitment to pay.  Be friendly but firm in your dealings with them and make them understand that they do have to pay and pay sooner rather than later.

For the money that has been outstanding for a long time (for me that is anything over 60 days, but you need to make this decision upfront), the reality is that you have to take the emotion out of the situation and get tough with yourself.  Hand them over to the attorney for collection.  The reality is of course that many of them are in all probability, dealing with their own cash flow problems.  So being empathetic with their plight will stand you in good stead.  That said though, you still have to deal with your own cash flow crisis – so get them to pay up, or hand them over.

Finally, for today’s lesson, remember that you cannot expect your clients to pay you or be honourable with you if you are not being honourable with your suppliers.  You need to do to others what you want to be done to you!

Be honourable yourself.  Let your words be congruent with your intent and as your receive, the money payout what you owe – even if it is before the due date.

Next time we will look a bit more in-depth at how to take back control of your “in crisis” cash flow.

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

Inspiration – Problems & Challenges

 Inspiration – Problems & Challenges

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

This was submitted to Thought for the Day by Juanita Welgemoed.  “Now is the time to change all your problems into challenges.”

I am sure that I am not the only one, to take some time out now and then, to reflect on what has gone right in my business over the last year and what has gone wrong and why.  Now the things that have gone right and why they have gone right is always a good thing and it is usually quite easy to replicate what you did before in order for it to happen that way again.

It’s the issues of what went wrong and how to resolve those issues that are always a tad more difficult.

But what if . . .  what if, instead of seeing these issues as problems that we have to agonize over, or beating ourselves up over problems that we don’t seem to be able to resolve, what if we turn them into challenges.  Challenges that can provide us with alternative income streams, or where we collaborate or joint venture with others in order to use the problem in its alternative form and turn it into a positive.

Think about it for a moment.  Take crime for example – 30 or so years ago, we did not have hi-jackings or armed robberies (well not if you weren’t a bank).  There were very few walls, let alone gates and electric fencing and the like around residential areas and homes.  As the problem of crime became progressively worse (for whatever reason), instead of moaning and griping about how bad the crime was, people started doing things to help themselves and so a problem was turned into a challenge and an opportunity.

Can you imagine the challenges that the first “armed response” company had to face, with no infrastructure in place?  The vehicles, the training of the guards, the control rooms that operate 24/7 and so on – today I am sure that you would agree that it must have been quite a daunting task, but they took the challenge on and they turned it into a positive.

Does that make crime right?  Of course, it doesn’t.  Has crime gone away?  Of course, it hasn’t and the challenges that they face today, I am sure, are of a completely different nature.  Today, 30 years later, the people who chose to bemoan the crime problem are probably still moaning and groaning.  Yes, they have the car alarm, the armed response and alarm contract, the electric fence and everything that goes with it, but it has “cost” them financially and they are still moaning.  Those that turned the problem into a challenge have made money out of it and will continue to do so as they change newly acquired problems into challenges.

The bottom line, of course, is that we can choose to take a problem and look at it, cry about it, talk about it, bang our head against it and perhaps even try and solve it – or we can choose to take that problem and turn it into a challenge or an opportunity.

The choice, as always, is entirely ours.

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 Avoid Clashes with Employees

 HR 101 – What to do When . . . You Want to Avoid Clashes with Employees

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

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

For me, prevention is always much better than a cure.

Here are a few tips that will assist in ensuring that there are fewer “clashes” between employees and employers.

• Make sure that the employees that are in charge of “procurement” of any kind, do not have private relationships with your suppliers.

This means that you should not have a staff member in charge of purchasing all of the stationary for the Company, who is married to someone who owns a stationery store.  This is clearly a conflict of interest and could result in illegal ‘kickbacks’ and the earning of unearned commissions.  It could also end up meaning that your Company is paying bigger fees for purchases than you should be.

• Make sure that your staff members have written permission to carry on with a business that is in competition with your own.

Now, this is just common sense don’t you think?  Staff members shouldn’t be doing anything on the side without your written consent.  Make sure that whatever it is that they are going to be doing to earn extra cash, is not in competition with you, and make sure that it is not going to interfere with their duties at the office.

• Employers cannot expect employees to perform illegal duties.

Be careful here.  If you instruct the bookkeeper not to pay SARS for any reason, you are instructing said bookkeeper to break the law!  Although the bookkeeper works for you and should be loyal to you and your company, you cannot expect the employee to break the law on your behalf.  Make sure that the instructions that you give to your employee are within the boundaries of the law.

• Employers cannot expect employees to ignore their own legal rights in order to satisfy the interests of the employer.

Again, be fair – it’s your business and you can work as much overtime as you like, but you cannot expect your employees to work excessive overtime. It’s not good for their well being and ultimately it’s not good for your Company.  Overly tired employees make mistakes that could cost the company dearly.

• An employee who is involved with a Trade Union’s first loyalty is to the Trade Union and not the employer, particularly where the law is protecting the employees’ rights and not the employer’s interests.

As much as this is a difficult one to swallow, it is the law!  An employee, who is a Manager for example, and who is also a member of the Trade Union, cannot be expected to inform on issues that were discussed in the Trade Union meetings.  It is also illegal for the Employer to prevent someone in a managerial position from becoming a Union member.  That said, Managers who are Union members can be disciplined in certain instances.  For example, if a Manager was discovered, not disciplining their subordinates because they were fellow Union members, said Manager could be disciplined themselves for not performing their own functions.

This is a very difficult one to constrict though therefore if you have a situation where you feel that a Manager is not performing their duties because of Union issues, I would suggest that you contact an accredited Labour Attorney who will advise you on the case in question.

Whatever the problem, remember to always be fair, be transparent, be approachable and on occasion be flexible.

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

Blogging 101 – Your Writing Style

 Blogging 101 – Your Writing Style

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

As many of you know, I am an avid reader.  I have this insatiable need to learn and reading keeps that particular monster fed and at bay.  Over the years though, I have certainly become more of a discerning reader and obviously tend to look at articles that are of particular interest to me.

I am not, for example, going to be reading about IT hardware (or software for that matter) – I don’t understand the terminology and would probably have more fun watching paint dry.  So how do I choose what I read?

First and foremost, the title would have to grab my attention and then the content would have to be not only interesting, but in my case, it needs to make me “see” the picture in my mind’s eye.

If my imagination is not captured within the first few paragraphs, I move on!  It’s that simple.

As I have often said before, it’s all in the telling of the story and if that is not told in an interesting way or if I don’t find it exciting or funny, well then it’s not likely to hold my attention.

For me, the easiest way to write is to tell the story in exactly the same manner as I would if I were chatting to a friend or even a client. Using simple words I create the picture or vision, if you will, in the mind of the listener.

Remember, in this instance, your listener becomes your reader and you have to keep them engaged by ensuring that the tale you tell is interesting and insightful from the get-go.

Keep it short, keep it sweet and keep it 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 

Networking 101 - Believe in Yourself

 Networking 101 - Believe in Yourself

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Self Esteem  

Grace Hansen once said, “Don’t be afraid that your life will end; be afraid that it will never begin”.

Helen Nicolson says – “You have to believe in yourself enough to believe that you have something of value to offer in any networking relationship.”

If you really think that you are worthless and have nothing that anyone else will want, then that is exactly how other people will see you.  If you do not believe in yourself, you cannot expect anyone else to believe in you.

The way that you introduce yourself and your or service or product to people is of the utmost importance.  You have to be proud of who you are and what you do – this will show in the manner in which you present yourself.  If you are confident in yourself, your abilities or your product this will be evident to the person who you are talking to, conversely, if you are not confident in yourself, your abilities or your product, this will also be evident.

You have to sell yourself before you can sell your product.  People will have to “buy-in” to who you are in order for you to make the sale.  Even if you are nervous, act in a confident manner and have something of value to offer.  As time goes by, your confidence will improve and pretty soon you will find that you are not so nervous and that it becomes easier each time.

Be friendly, make eye contact and show interest in the other person too.

Always remember . . . you are enough!  

Now go out there and show them that!

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

Business Tips – How to Manage Your Cash Flow Crisis

 Business Tips  – How to Manage Your Cash Flow Crisis 

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd – April 2016

Remember, there are only 3 reasons why you will find yourself in a cash flow crisis.  To remind ourselves, there were:-

1. You’re not making enough money.  

2. You are not getting your debtors to pay you and

3. You are spending too much money!

Last time we looked at the first step that should be taken and that was to get clarity on what you owe and what is owed to you and we did this by means of debtors and creditors ageing analysis.

This time we continue with the next step and that is cutting costs.

Entrepreneurs, like individuals, seldom even think about cutting costs.  Most believe that if they can just increase the number of sales or alternatively if they can just get all the outstanding monies in then all will be well in their world.

The reality of course is that the more you make the more you spend.  Your expenses will rise up to meet your income, so of course, it is of the utmost importance that you regularly review your expenses to keep them in check

Remember, cash flow is exactly that - the flow of money into and out of the business, therefore both the entry (input) flow and the exit (output) flow must be monitored and measured on a continual basis.  Consistency is the key here.

Once you have all your expenses under control and have cut what you can and allocated that ‘spending’ to some of your outstanding debts, it is time again to look at what is outstanding and see how best to deal with these.  This is also a good time to put a budget into place in order to control spending going forward and this will help you to ensure that your spending does not get the better of you again in the future.

There are several ways to now deal with the outstanding money that you owe to your creditors. This will, however, depend on the supplier and how ‘flexible’ they can be or are willing to be.

What happens next will probably be one of the hardest things that you will have to do, and that is a) full transparency and b) absolute honesty.

You will need to contact every single one of your creditors and meet with them.  Face to face is best.  When you meet with them you will have to explain ‘how’ you are going to sort your debt to them out.

Be realistic don’t promise what you cannot deliver!  This is the time to err on the side of caution.  Rather under-promise and over-deliver than the other way around.

For the expenses that are paid by debit order, try and stagger them throughout the month so that they do not all fall due on the same day, or even better yet, stop them altogether and pay as and when your funds become available, but make sure that you pay the minimum that you have agreed to pay, on or before the date that you have agreed to pay it.

This is one time that you have to be absolutely honourable, not only in your intent but also in your execution.

Next time we will look a bit more in-depth at how to take back control of your “in crisis” cash flow.

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

Inspiration – Taking Action?

 Inspiration –  Taking Action?

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd  

Todays’ quote comes from Al Batt who says “It is easy to sit up and take notice.  What is difficult is getting up and taking action.”

I must admit I did have a quiet chuckle about this one.  I guess I have watched too many movies where the wife yells at the husband at every possible opportunity “You never take any notice of me or what I am saying!”  Honestly speaking, not only is he not taking notice, but he is also not doing anything about the problem either and the more she continues to shout and scream, the less likely he is to pay any attention or take any action.

For me, just like it’s not having the knowledge that makes me powerful, it is what I do with that knowledge that makes me powerful – taking notice without putting the action into play is just a complete waste of time!

To be quite honest I am completely at a loss with people who are inactive.  I think in the grand scheme of things, many people do not understand that there are also consequences for inaction.  Most people understand (although they may not accept) that there are consequences for your actions, but few understand that there are also consequences for inaction – it’s the whole “but how can you hold me accountable – I did nothing!”  The fact that their doing nothing resulted in the consequences is, for some reason, more difficult for some people to wrap their heads around. Yet the reality of the situation is that often the consequences for doing nothing often is far greater than the consequences for actually doing nothing.

Here’s an example – you’re driving from Johannesburg to Cape Town – you see the petrol gauge moving from “F” to “E” slowly but surely.  You continue on your journey going through one town after another – passing one petrol garage after another, but not stopping to fill up.  Clearly, the consequence of that behaviour is that eventually the car will run out of petrol and you will come to a standstill.  You have done nothing and there is a consequence.  This is a consequence of your non-action. Conversely, you have stopped at the garage to fill up with fuel, but the petrol attendant filled up with diesel instead of petrol – now that is a consequence of an action that took place.

Many folks seem to just float through life without committing to anything, but having huge dreams about what can be.  

Odd that, 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 Are Not Sure About Workmen’s Compensation – Part 4

 HR 101 – What to do When . . . You Are Not Sure About Workmen’s Compensation – Part 4

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

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

Well, here we are and it is crunch time.  The registration is complete, the documents all sent in, the business assessed and it is all over – bar for the paying of course.  Well you didn’t think that this was all going to happen for free, did you?

So here’s what happens next:

You pay within the required 30 days – no problem, except that you get to repeat the whole exercise all over again next year, but at least you can relax for a whole year.

You don’t have the money to pay:  Well here, as in most aspects of life, there is a consequence or two or even several.  This is what can, but is not limited to what will happen:-

• The Commission may impose a fine on you (the employer)

• In the instance that an employee has an accident and the assessment has not been paid, the Commission may, in addition to the original fine, impose an additional fine that is equal to the payment that would have been payable to the employee.

If you (the employer) still do not pay the assessment or the subsequent fines, the Commission is entitled to take legal action against you by approaching the Magistrates Court in order to obtain the monies due.  The Magistrate has the power to impose an additional fine as well as a prison sentence not exceeding one year.

As you can see from the above, this is serious business.  Therefore, if for whatever reason you cannot pay it all upfront, it is in your best interests to obtain permission to pay the money off in instalments.

Should you have any additional queries, it may be a good idea to contact the Commission directly or seek assistance from a Labour Attorney.

Next week we tackle a brand new subject.

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

Blogging 101 – The What To Do

 Blogging 101  – The What To Do

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

Ok, so here we are.  You know why you need to blog and then what . . . ?  What on earth are you going to write about?  Let’s just face it, many of us have no clue how to write effectively, let alone what to write about.  I know that when I started out, I would often just sit in front of a blank screen and wait – wait for an idea, wait for inspiration – just wait.  It took a while for me to “get it”, but with practice, it happens a lot faster now and it is a lot easier.

I have collected stacks of material over the last few years and still diligently do.  I read an article that perhaps will spark something in me or light a fire under my rear end – that’s usually what happens.  I have an opinion or it sparks an entirely different idea.  I usually sit with the article in front of me, read it through, think about what the impact that that particular article has/might have/ should have on my life and then a thread starts to form in my mind.  In the beginning, the only way that I could describe what happens in my mind is that it starts off as a little leaf blowing around in the breeze.  The breeze becomes a twister and the little leaf becomes a vast quantity of leaves all going round and round in my mind until I have to “get it out” (by writing it down) and so quell the storm.  In the beginning, this could take days – with a lot of practice, nowadays once I have read through the article it takes me about 15 minutes to write the article – an amazing thing that – practice.

Don’t commit yourself to more than you can manage in the beginning.  Even if it means that you write only one article a month or once every two weeks, don’t stress it.  I started off with my Networking Tips on a Wednesday, months later I increased that to include the HR tip on a Friday.  Again, months later I started my Monday Inspiration (although it’s usually presented in the form of a challenge) and then the Thursdays (or perhaps it was the Tuesday’s – I forget which now) articles and opportunities presented themselves and it has been just over several years now that I am submitting 5  articles a week.  Don’t get me wrong, there are days when it is incredibly hard to write and to get what I am trying to say in some sort of articulate way.  Other days my fingers fly across the keyboard, barely able to keep up with my thoughts.

I do try and write the articles in advance, so that if there is some sort of problem or if I have an early morning meeting that I do have an article ready for posting.  It’s not always possible though and then I find myself under pressure – not pleasant at all.  So try and not get yourself into a situation where you are running against a clock.  Apart from my commitment to my own blog of an article a day, I also have other writing commitments – I have a bi-monthly column in the Your Business magazine.  These articles obviously take a lot more time as they involve a lot more research and also sometimes have me “interviewing” people – but they are great fun to do.

What I have come to realize though is that I do love to write, it has become a passion and my only regret is that I discovered it very late in my 40’s.  Can you imagine the number of articles that I could have written had I started in my 20’s or even 30’s?  I love ”finding” out about the things that I write.  I love that I am making a difference, not only in my life but also in the lives of others.  I love how the words on the pages transform themselves into pictures in my mind.

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

Networking 101 – The Importance of Integrity & Credibility

 Networking 101 – The Importance of Integrity & Credibility

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

It’s all about integrity and credibility.  

Imagine if you will, that you have been running around like a maniac trying to find someone to provide you with a service, let’s call it a handyman (for the purpose of this exercise).  Now I am sure that we have all had the same sort of experience here, and if anyone reading this is a handyman and does not fit into this category, I apologise in advance.  

So you are hunting high and low for a handyman as there are several “little jobs” around the house that require a tad more expertise than you currently have.  You find a flyer in your post box, or someone leaves a flyer on your windscreen, advertising their services as a handyman and you rush home to phone and make an appointment.  You get an answering machine, you leave a message and . . . nothing!  No one phones you back.  Or, you get hold of the handyman and he promises to come and have a look, tomorrow, at what needs doing and give you a quote, and you stay at home the whole day waiting for him and . .  he doesn’t pitch.  Or, he comes round the following day and has a look at everything that needs to be done and promises to send you a quote and . . . you never receive one.  Sound familiar!

So when you are bemoaning the fact to anyone who will listen, somebody suddenly says, “Hey, I’ve got a handyman type person who will come and assist you, his name is Joe Soap and his number is ……”, you are really excited.  You see Joe Soap has come recommended.  Now that is still only 50% of your problem resolved, because Joe Soap, could very well go the same route as the chaps referred to above, or he could actually be a real business person who actually wants the work.  

Herein lies the problem.

First of all if Joe Soap, actually is a real business person, who wants and desires his business to be successful, he will of course pitch up, ascertain what needs to be done, give you a quote and then actually arrive to do the work and finally, he will perform the service in a professional manner.  This means now, that you will refer him to all of your friends and colleagues and anyone else who requires anything done around the house or the office.  His business will grow and he will flourish.  You will become regarded as someone who “knows” people and your credibility will become legendary and your business will flourish.  Everyone is happy.

But what if . . .  and here comes the crunch, what if after delivering you the wonderful service, Joe Soap, suddenly becomes like the rest of the handymen out there and becomes sloppy, don’t phone people back, doesn’t pitch up etc.  Well not only will Joe Soap’s business die, like the rest of the handymen out there, but also your credibility will be affected – remember you have recommended him.

The moral of this story should now be obvious.  If you want people to recommend you, not only is your credibility at stake, but you are putting theirs at risk as well if you do not deliver or behave in a professional manner.

Do not give people’s contact details out unless you have received their permission to do so!  Not only will they not trust you again but in all likelihood they will not be happy to assist whomever you have given the details to, thus resulting in two people being pretty disgruntled with you.

If you are on the receiving end of getting someone’s contact details as a referral.  Treat those details with respect – don’t be spamming them!  That’s just rude!  If you have received those details, it was for a specific reason, use them for that specific reason and not only will you gain the service/product/assistance that you were looking for, but you will also gain a valuable contact.

Treat other people’s contact details, with the same dignity and respect that you would want other people to treat yours.  I am sure you wouldn’t like to see your name and address and contact details sprawled all over the toilet door, so don’t do that with anyone else’s details.

The Business world in South Africa is a smaller place than you think, people talk, reputations are built up over time, but destroyed in seconds.  Always, operate with Integrity and Credibility.

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

Business Tips – How to Manage Your Cash Flow Crisis – Part 2

 Business Tips – How to Manage Your Cash Flow Crisis – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd  

Last time, remember, we discussed the only 3 reasons why you will find yourself in a cash flow crisis.  To remind ourselves, there were:-

1. You’re not making enough money.  This usually means that you have to increase the number of sales that you are making or alternatively it may mean that your margins are incorrect, which means that your profits are too small or even non-existent.  Either way, you are not making enough money.

2. You are not getting your debtors to pay you.  That means that your money coming in is insufficient to meet the needs of your money going out.

3. You are spending too much money!

In the interests of clarity, let’s just be clear on something else here too – the only person responsible for your cash flow crisis is you.  You are the only person who has to manage your cash flow and the only way that you could have ended up with a cash flow problem is if you failed to manage your sales, your collections and your expenses.

You need to step up and take responsibility and be accountable for the situation that you find yourself in.  I know that this is probably not what you want to hear but in order for you to take ownership of the problem and sort it out, you need to understand that you have the problem because you failed to adequately manage these three elements.

In order for you to overcome your cash flow problem, you need to take control of the situation.

So let’s break it down

Firstly, take a big breath and calm yourself down!

Getting into a state is not going to help the situation.  You need to give your full attention to finding the solutions to your problem and you will not be able to do this effectively if you are in a state of panic.

First things first.

Before you can fix the problem you have to know exactly what the problem is.  It may be that you have a specific problem, for example, you are not collecting your funds efficiently or it may be that it is a combination of all three.

So the first thing that you need to know is exactly how much money you owe to people and how much is owed to you.

You will need to be brutally honest with yourself here and although it can be one of the most painful exercises that you will ever have to do, please understand that it will have to be done and once done will be very liberating too. Don’t leave anyone off the list.  If you owe the newspaper guy R5, put it on the list.

By the same token, if somebody owes you R5, that must also go onto the list.

To take this one step further you need to record the date from which you owe the money or are owed.  Then calculate how long the debt has been outstanding for both your creditors (those who gave you credit or who you owe money to) and your debtors (those you owe a debt to and who you owe money).  This document is called an ageing analysis.  This will give you a better understanding of exactly how much you owe as well as how much you are owed and in both instances, for how long.

Once you have all of this information, have a closer look at all your creditors and in order of priority, list those who need to be paid immediately as well as who can be paid a bit later. The length of time that the money is owed, plus the value of the debt and of course the person who is shouting the loudest for their money, usually determines who gets paid first and how much is paid.

Whilst you are in this state of “crisis”, it is advisable to do this exercise on a daily basis, recorded which suppliers you have paid, how much you paid, when they were paid and the balance that you still owe them.  Remember to add all your “new” suppliers onto the list too.

On the debtor’s side, make sure that you list each and every payment that you receive and make a note of “how” you have allocated it to the creditors that you have paid.  Again, for the moment do this on a daily basis so that you can track what has come in and gone out to those that you need to pay, in order for them to give you a little breathing space and room to manoeuver. 

Next time we will have a look at how to take the next important step!

Next time we will delve a little deeper into the mystery that is cash flow to get a little more clarity

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

Inspiration – Perseverance

 Inspiration –  Perseverance

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd – December 2010

H Jackson Brown says “In the confrontation between the stream and the rock, the stream always wins – not through strength, but by perseverance.”

Ain’t that the truth!

On a personal level, I find that when I am going through a particularly rough patch or trying time, the only way to get through it is to ‘Grit’ my teeth, square my shoulders and put one foot in front of the other and just keep going – sooner or later you have to come out the other end.

I remember my favourite teacher at junior school – her name was Olga Barrett, and she was the strictest disciplinarian in the school – stricter than even the headmaster.  Mrs Barrett saw something in me that I don’t think anyone else saw.  She saw my ‘heart’ and understood that I was different to the other kids.  She saw that although I was by no means gifted or genius, but that my mind needed to be stimulated differently.

She saw that I was determined to succeed, but that I went about things differently and instead of trying to force me into a mould as the other teachers seemed hell-bent on doing, she took my tenacity and taught me how to harness that energy, that spirit, that heart . . . and then use it to my own advantage.

Olga Barrett encouraged me to reach for the stars and not give in to the challenges that would come my way.  Instead of forcing me to look at the world through her eyes, she tried to see it through mine.

Her patience and perseverance in helping me to achieve and be all that I can be certainly went far beyond the call of duty and I will be forever grateful to her.

That tenacity and perseverance have certainly allowed me to meet the challenges and heartache that I have endured in this lifetime and I have no doubt that it will continue to serve me to the end of my days.

So remember, if your life is challenging or if there is something that you really want because you have dared to dream – square your shoulders, grit your teeth and put one foot in the front of the other and just keep going.

You will eventually get there.

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 Are Not Sure About Workmen’s Compensation? – Part 3

 HR 101 – What to do When . . . You Are Not Sure About Workmen’s Compensation? – Part 3

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd

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

You are now registered with Workmen’s Compensation and are in the process of submitting your Return of Earnings, but somehow though, you don’t feel that the tariffs used to calculate your assessment is 100% correct for what it is that you do.  Is there anything you can do about it?  Of course, there is.  As in most things in life – not everything is a 100% fit!

The Commission has the authority to vary the rates that apply to your specific Company based on a whole bunch of criteria.

What you need to do now is get a Commissioner involved to do an assessment on your Company.  If the Commission is of the opinion that your business is structured and set up in such a way to make it highly unlikely that any accidents would occur and that if perchance there was an accident, that it would be highly likely that they would occur far less often and be of a far less serious nature, than in another similar business, the Director-General of the Commission may allow your business to be rated at a much lower rate.

Be aware though, that in life, as there is an ‘upswing’ so too there is a ‘downswing’ because if the Commission finds that you are not really as organized or safe as you thought you were and that in fact, it is far more likely that your staff will have more accidents and more serious accidents than in another similar business, they also have the right and the responsibility to increase the rate that you would have been charged.  So make sure that you have all of your ducks in a row!

The annual fees are due and payable within 30 days of the receipt of their ‘Notice of Assessment’.  Should you have cash flow problems, however, you can make arrangements with the Commissioner to pay the assessment fee in instalments. 

Currently, there are 3 acceptable payment methods – they are cheque, direct deposit and internet banking.

If you pay by cheque, the remittance advice part of the notice of assessment must be included with the cheque.  Don’t forget to write your reference numbers at that the back of the cheque.

Paying by direct deposit means that you will have to make a trip to ABSA bank, however, payment can be made at any branch.  If possible use the deposit slip that is attached to your notice of assessment as it already has all your reference numbers printed on it.  If you use a generic deposit slip though, remember to write your reference numbers on the deposit slip.  Always retain your deposit slip as proof of payment.

When paying by internet banking, be sure to include all the relevant information that is required by your financial institution as well as the correct reference number of your assessment.

The banking details of the Compensation fund are always included with your assessment.

Next week we will look at what happens when you fail to make payment.

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

Blogging 101 – What Makes a Blog Well Written? - Part 2

 Blogging 101 – What Makes a Blog Well Written? - Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

So now we have a great title and . . .  now what?

It feels like a hundred years ago since I was at school, but I do remember the English teacher always drilling into us the basics of good composition – it, the story that is, has to have a beginning, a middle and an ending.  Let’s be honest here, what is a blog – if not a story about your business, or about who you are or what it is that you are doing and why you are doing it?  The reality is that it is a story and it is in the telling of the story, that you have the power.  

A story is no good if the beginning makes you want to fall asleep.  Most people will stop right there and not continue reading.  So too is having a fantastic and strong ending, without a great beginning.  That is just a hopeless exercise.  Conversely having a fantastic beginning, that grips the imagination or curiosity of the reader and then having an ending that makes them feel like they have just lit the soggy end of a wet squib, will also make them reluctant to read any of your future offerings.

So you’ve got a fabulous beginning and an ending that will make the reader bang down the door for the next instalment, but what about the middle?  How do you tell the story?  Does it follow the twists and turns, does it have a surprise somewhere along the way, does it make the reader engage with the characters or feel that they want to buy your product or service?  Does it conjure up pictures or colours or smells or memories that reach down into the very core of a being?  How does it make them feel inside?  For example, what are you ‘feeling’ right now as you read these words.  Are you nodding your head furiously because you understand exactly how you feel when you are reading something that bores you to tears or the excitement that creeps up from within as you read something that gives you an "ah-ha" moment or that challenges you or that makes you think, I mean really think – or are you sadly shaking your head from side to side because you don’t have a clue about what it is that I am going on about (and yes, there will always be those who remain utterly clueless – no matter what the topic)!

For me, the beginning must grab my attention from the getgo – I must think, I have to just read this page before I  . . . .  (insert what you will here).  The ending must make me sigh with pleasure, sad that I have come to the end and eager to start reading the next article or the next book by the same author and the middle, well the middle must keep me engrossed, it must feed my imagination and satisfy my curiosity, it must stretch my mind and leave me with an internal sense of well being. It must make me willing to follow without question, not make me feel like I am being dragged along, resisting all of the ways.  Reading the kind of articles that make me feel like I am being forced to read, irritate and annoy and sap all the pleasure out of reading the written word.

Step back from your page for a moment and ponder – what is the picture that you want your reader to have?  What is the experience that you wish for them to have? Is it a pleasurable one?  Now sit down and write the story with all of those images that run around and swirl about in your head – they will see them, they will feel them and I have no doubt that they will enjoy them.

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

Networking 101 – Listen Before You Speak

 Networking 101 – Listen Before You Speak

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

The Art of Listening.  

My friend Geraldine always says that her mother used to say that “God gave us two ears and one mouth for a reason!”

People are so busy trying to get their 5c worth in, that they don’t listen to the other person, what their needs are and therefore what their requirements are.  If you don’t know what they need, how can you effectively sell your skill or product – it might not be what they want at all!

Most people seem to think that you have to be an extrovert to be a good networker.  This is often not the case.  Most extroverts are usually too busy talking about their favourite subject matter, which usually means that they are talking about themselves.

Introverts, on the other hand, seem to be better listeners.  They are keen to find out what the possible synergies are, not just for themselves, but also for the people within their own network.

So when you meet with someone, and the purpose of the meeting is to see where there are possible synergies, ask the other people how you can help them.  Listen carefully to what it is that they are saying.  Encourage them to talk about their business, what it is that they do, take down notes and if you don’t understand, ask questions.  You don’t have to know the intricate details of their business and how it works, but you need to have an idea of what it is that they do – remember you should be referring them to people within your network and it’s no good sending them someone to print their business cards when what they need is someone to design the logo!

Those 5 little words are the most important in your life, remember “How can I help you?”

Listen carefully and then react!

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

Business Tips – How to Manage Your Cash Flow Crisis – Part 1

 Business Tips – How to Manage Your Cash Flow Crisis – Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Brian Walsh of Entrepreneur and lately the “Real Success Club” always says “get clarity!” I say “If cash is King, then clarity must be Queen!”

So, let’s start off by getting ourselves very clear on what is and what isn’t.

Cash flow is the measurement between money coming in and then going out of your business.  If you have more money coming into your business than going out - that’s a good thing because it is a positive cash flow and is, therefore, a profit. If you have more money going out of your business than coming in then you obviously have a cash flow problem!

There are only three (3) types of issues that cause cash flow problems and these are:-

1. You’re not making enough money.  This usually means that you have to increase the number of sales that you are making or alternatively it may mean that your margins are incorrect, which means that your profits are too small or even non-existent.  Either way, you are not making enough money.

2. You are not getting your debtors to pay you.  That means that your money coming in is insufficient to meet the needs of your money going out.

3. You are spending too much money!

Let’s unpack these individually.

You’re not making enough money.

As can be clearly seen from the above, this can be broken down further into two parts.

The first part is about sales. You are not selling enough product or service and you need to get yourself out there and sell! If that is not your strength, then you need to hire someone whose strength it is and get them to sell.  If your marketing or branding needs to be improved or your product or service is the problem that needs to be updated or improved, that needs to get done sooner rather than later.  Whatever must happen, must happen and then you need to sell, sell, sell! 

Test and measure and then test again along the way so that you can see where things are going awry and then “tweak” them and test again.  Throw away what doesn’t work and move on.  Replicate what does work, it’s really as simple as that.

The second part being your margins is a little more complicated.  In order to calculate your margins correctly, you need to know exactly what your cost of the product is and what your cost of sale is.  There is obviously a huge difference between whether you are selling a product or a service but irrespective of which you sell, the issue is the same but from different perspectives and I will deal with each of these issues more comprehensively next time.

Struggling to collect your money.

Again there are two avenues here and again I will deal with them in more depth in a future article.

Basically, they are:-

- Being a registered credit provider and carrying a ‘book’ and

- Being a regular, no credit offered type business.

In both cases, you need to be in control of the money that is owed to you and the payment thereof. In other words, you need to collect the money that is owed to you more effectively.

In both cases, you need to ensure that an ageing analysis is generated on a regular basis to ensure that you collect your funds timeously.

Do NOT become emotionally attached to your wayward clients.  Decide on the rules e.g. if they haven’t paid in 30 days they get a lawyers letter and if they haven’t paid in 60 days they get handed over to the lawyers. Stick to whatever it is that you have decided upon – no exceptions!

You are spending too much money.

Systematically go through your General Ledger and look at each and every expense and see how you can cut it.

Again, check your emotions at the door, if your staff are no longer productive for a full day, chances are that your cash flow will no longer sustain them.  Start a retrenchment process.

Next time we will delve a little deeper into the mystery that is cash flow to get a little more clarity

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

Inspiration – Playing The Victim

 Inspiration – Playing The Victim

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd 

Stedman Graham says “People who consider themselves victims of their circumstances, will always remain victims unless they develop a greater vision for their lives.”

That just hits the spot!  I am so tired of hearing about people being ‘previously disadvantaged’ and the ‘suffering’ and the rest that goes with it.  The racist card is played at every opportunity and the “poor me” card brought out at the drop of a hat and yet we don’t seem to do anything about it.

A couple of months ago I wrote an article for the Business Report in the STAR Newspaper on “Intimate Relationships in the Workplace”.  You can just imagine the responses that I received!

One woman phoned me to tell me that her husband is having an affair at work and then asked me what to do.  Well I am no “agony aunt” and I am certainly not a medical person who is qualified to hand out this kind of advice, but what I can do is voice an opinion on what I would do if I were in the same circumstances.  This woman, (let’s call her Jane) was quite indignant about the fact that her husband was “lying to his children, imagine” and yet . . . here she was telling a total stranger intimate details of her personal life.  She laid it on thick, telling me “when and where” he met up with his illicit romantic partner and that “everybody” at his work knew about it and yet they did nothing.  The truth is of course, that it’s not their job to do anything, it’s hers.

You see Jane really got off by playing the victim and the martyr, she could gain everybody’s sympathy and this made her feel like a worthwhile person, it also was the only kind of attention that she seemed to be getting.  When she paused for a breath, to tell me some other despicable thing that he had been doing, I asked her why she had not turfed all his stuff out onto the street and changed the lock on the door.  She seemed quite taken aback by the very mention of that.  I told her that she had given him permission to act the way he was acting because of her inaction.  By not doing anything when she found out about the affair, she was telling him that it is ok for him to treat her in this manner – so of course, he did, constantly.  Furthermore, she was also lying to the children, every time she made an excuse about where he was at night.

Jane was gobsmacked for a few seconds and could not get the words out to say anything.  I suspect that I had just taken the wind out of her sails and she was taking a good hard look at what she was doing too.  Finally, she agreed with me saying that she had never looked at it like this before.

Is Jane still with the wondering husband – I have absolutely no idea.  What I do know though is that Jane stopped in her tracks and probably for the first time in her life understood that she could change her circumstances by changing the way the she responded to things.  Whether she has made the changes in herself and her circumstances or not, is a whole different ball game, but I do know that she is now aware of what she is doing and hopefully she will make the changes that she needs to make.

Going back to apartheid and the “previously disadvantaged” – quite honestly, right now I don’t even have much empathy left, let alone sympathy!  Oh, and I know that I am going to upset a huge number of people too and so be it.  

For every one person who is still flying the “previously disadvantaged” banner, there are probably two or more who have done something to change their circumstances.  I would rather help these folk and have oodles of time and respect for them.

There are those that have done things for themselves instead of standing around, begging bowl in hand, waiting for someone to do something for them.  I would rather help them turn their lives around and respect them for the changes that they are not only willing to make but are also making.

There are also those who have perfected the art of playing the victim and for them, “being the victim”, is their full-time employment, it’s their right and quite frankly, it’s probably exactly what they deserve.

So today, I challenge you – if you truly want something to change, then get up off your rear end and make it happen.  If you’re not prepared to make the changes or do something for yourself, then quite honestly – please don’t tell me, I really don’t want to hear it, because my time is better served making things happen and changing the aspects of my life that I don’t want to stay the same.

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