Showing posts from July, 2015

Designing an Effective Enterprise and Supplier Development Strategy

As per the Revised Codes of Good Practice, the Enterprise and Supplier Development (ESD) element forms 40% of the revised B-BBEE scorecard. According to Petra Rees, Managing Director of Lean Enterprise Accelerated Programmes (LEAP), “The mind-set at many companies is shifting from historical arm-length relationships between Enterprise Development and procurement initiatives to ensuring that supply chain becomes optimally transformed through comprehensive ESD programmes.” When it comes to designing an effective Enterprise and Supplier Development strategy, Rees recommends the following: 

1.Analyse your existing procurement initiatives

The purpose of a Procurement Analysis is to give you a clear picture of where and with whom you are currently spending money and where you are scoring B-BBEE points. You need to get a clear report on key indicators – amongst which are your procurement score against target score, a strategic view of your dependence on key suppliers (and exposure to them), sp…

Having suitable payment facilities in place enhances customer retention, say Maxi’s

Point of Sale (POS) equipment is the computer-based order-entry technology many franchise restaurants use to capture orders, record data and display or print receipts. Having faulty POS systems, network connection errors or even a POS that does not allow for credit card purchases, can drive feet away from your store. Yolandi Ferreira, Marketing Manager at Maxi’s, urges franchise groups to have suitable payment facilities as well as contingency plans in place for these eventualities as this will ensure that franchisees can maintain feet in stores.

The POS system acts as a payment processing register as well as a computer. In fact, the POS can consist of multiple stations, including back office, credit card terminals, receipt printers, display screens, hostess stations and server stations. Having a POS system in place can add convenience, accuracy and save time in busy situations. Not having one, or using an unproductive one, can see you lose customers.

With POS technology and information…

TomTom’s 3D mapping takes the connected car a step closer towards highly automated driving

In a recent announcement, TomTom (TOM2) revealed that its complete TomTom connected navigation solution will be available in the new Fiat 500 range in Europe. The embedded system features the freshest TomTom maps, with a superior routing engine and includes five years of TomTom’s live connected suite of services, tapping into the consumer’s need for a car that offers smart navigation solutions, real-time updates and more detailed mapping.

Etienne Louw, General Manager of TomTom Africa, explains the significance, “Up until now, cars have been quite isolated where navigation systems rely on dealing directly with dealerships, and involve DVD or SD card updates that the driver has to initiate. This is both time consuming and inconvenient for drivers. Consumers are craving a service similar to that of a smartphone, where information is instantly updated and easily accessible. This need has pushed the automotive industry to embrace the concept of the connected car more actively.”

According to…
New franchise strategies and growing earnings drive SA franchisors into AfricaTimes may be tough locally, but that has only encouraged South African franchisors to look beyond the country’s borders and take a long-term view on introducing integrated strategies for the growth of their brands across the continent.

“The stage for expansion of franchise operations in Southern African Development Community (SADC) countries and beyond has shifted as franchisors have gained experience in African markets,” says Philip Myburgh, Head of Franchising Africa at Standard Bank.

“Interestingly, we are seeing progressively more food retailers and quick-service restaurants eagerly trying to form business partnerships with the fuel service industry. While the concept has already taken off in South Africa, with limited maturity in neighbouring countries like Namibia, it is still at infancy stage in the rest of the continent, which presents an opportunity for more partnerships. Examples include finding KFCs…
SA SMEs SEEK MUTUAL RELATIONSHIP WITH GOVERNMENT Despite challenging economic conditions, South African entrepreneurs remain determined to make their respective businesses a success, but what if Government played a bigger role and consulted more widely in improving the chances of success by working more closely with small and medium enterprises (SMEs), in order to better understand the direct implications of policies on business owners. Imagine the potential of entrepreneurship in the country with a mutually beneficial relationship between the private and public sector?

This was the general consensus from an alumni gathering of over 50 seasoned South African business owners who have won various categories in the Sanlam / Business Partners Entrepreneur of the Year® Competition over the last few decades. While entrepreneurs were vocal about the challenges within the country’s entrepreneurial environment – such as power cuts, labour unrest, insufficient infrastructure, red tape and the co…
Brackenfell gets a taste of Domino’s PizzaExisting franchise holder, Alan Williams, has recently converted the St Elmo’s Pizza in Brackenfell to a Domino’s Pizza store. This will mark the first Domino’s Pizza store in Brackenfell  since the brand was licensed to Master Franchisor, Taste Holdings, in April last year.

Williams plans to make a success of his Domino’s Pizza store by entrenching himself and the store in the local community. Being no stranger to the franchise business, he knows that getting involved with the community through schools and businesses as well as by advertising locally is pivotal to him and his team reaching their goals.

On the conversion from St Elmo’s Pizza to a Domino’s Pizza store, Williams says, “Domino’s delivers the best hand tossed pizza in the world, and no one and no brand in South Africa can offer any better. It is the recognised world leader in pizza delivery, and delivers more than 1 million pizzas daily worldwide. The Domino’s Pizza Group is the mar…
Subsidised access to the Eastern Cape Franchise ExpoFranchisors who wish to build their brands in the Eastern Cape will be interested to learn that the Buffalo City Metropolitan Municipality (BCMM) is organising the BCMM Franchise Expo 2015. The event is intended to put franchising on the map in the region.

To encourage participation in the expo, the Buffalo City Metropolitan Municipality (BCMM) offers free exhibition stands to qualifying exhibitors. This is an opportunity not to be missed as the region incorporates the towns of East London, Bhisho and King William’s Town as well as the second largest township in the country, Mdantsane. 

The more than 750,000 people living in the area provide a fertile market for all manner of products and services but although the local economy is booming, existing levels of unemployment remain a concern. The BCMM, through its department of Local Economic Development (LED), Tourism and Rural Development, is working hard to address the situation. SMEs h…
Securing funding for a franchiseThe idea of starting a business can be a daunting but exciting one with funding being one of the main aspects to consider. Understanding how the funding process works and what options are available to start-up businesses is key to ensuring the business starts on the right footing.

Looking at the franchise industry’s funding process, Richard Mukheibir, Managing Director of Cash Converters, explains that generally a franchisee will contribute a percentage of the total set-up costs of a franchise in un-encumbered cash. “It is highly unlikely that funding institutions will provide funding if the owner has not contributed as well. The general rule of thumb would be an owner’s contribution of 50%, with borrowings to make up the balance. Once the prospective franchisee has accumulated the cash lump sum, the franchise he/she buys into would generally be of assistance to raise the balance from financial bodies.”

In terms of types of funding options available he sa…
A guide to beating the odds and starting your own franchise business
According to financial services giant, First National Bank, franchising in South Africa has grown steadily at a rate of between 5% and 7% annually, especially in the fast-food industry. It is also estimated that the industry contributes more than 10% of retail sales. However, first time franchisors still face challenges when starting a franchise with capital restrictions. Founder and head of the Sandwich Baron franchise, Sally J’Arlette-Joy, explains how she grew her franchise from a capital investment of only R5, 000.

The idea of selling sandwiches was inspired by my time spent working in London; where sandwich shops are common place. After I made South Africa my home, I realised the gap in the food retail market and decided to pursue my lifelong dream.

In 1996, I established and ran a small sandwich shop from home, which quickly caught the attention of the Alberton community, just east of Johannesburg. After being inu…
The need for businesses to ensure that they are adequately protected from cybercrime has been brought to light once again following the announcement that the notorious dating website Ashley Madison is the latest victim of hackers. It is estimated that more than 37 million of its global subscribers, of which 175 000  subscribers are South African, could now see their personal information – including bank details - compromised unless the website shuts down.

This is according to Candice Sutherland, Business Development Consultant at SHA Specialist Underwriters, who says that this incident is yet another example of how easily hackers can target businesses and breach all their security systems in order to access confidential and sensitive information. 

“The 2015 Security Report released by Check Point Security revealed that 106 unknown malware hit businesses every hour. 83% of the 1300 businesses studied in this report we…
Damage to Reputation cited as No.1 Business RiskAon Global Risk Management survey shows 40% of businesses are unprepared to deal with a major reputational crisis

Nothing feeds the news cycle like a company scandal, and with social media and citizen reporting on the rise, serious blows to a company’s reputation and market value can spread in nano-seconds. The likes of BP, Goldman Sachs, Toyota, Nestle, Domino’s Pizza, and locally and more recently Eskom, Capitec, KFC, the Estate Agency Affairs Board and Lonmin are among a host of brands that have taken a reputational hammering in the court of public opinion.

While the precise impact of these reputational crises in terms of lost profit and revenue are difficult to quantify, there is no denying that these brands have all suffered varying degrees of quantifiable financial loss, and face the onerous task of rebuilding the reputations that in many instances have taken decades to establish. 

In view of such headline-grabbing incidents, it is no…
Selective Invoice Discounting as an alternative funding solution
From time to time, small and medium-sized businesses are strapped for cash as their funds are often locked in invoices that have not yet been paid. This is one of many reasons businesses should consider using Selective Invoice Discounting to release funds and improve cash flow. Selective Invoice Discounting can allow you to increase turnover, improve cash flow thus improving your total profitability.

Michael Naidoo, CEO of FNB Specialised Finance says, “Invoice discounting is a short-term finance solution that gives businesses access to cash while their invoices are yet to be paid. At any one point there may be multiple invoices that are pending or about to be paid. These invoices are access points to cash. Either one invoice or multiple invoices for selected quality debtors are ‘sold’ to release funds and improve cash flow.”

The facility can be used on multiple occasions to meet the  business’ working capital needs. Once a…
GRANT’S LAUNCH THEIR PREMIUM SELECT RESERVE VARIANT IN SOUTH AFRICA South African whisky enthusiasts can further explore the Grant’s rich history of stories and craftsmanship, with the exciting debut of the brand’s premium blend, the Grant’s Select Reserve.

Grant’s Select Reserve is a stand out blend with an unmistakable sweet yet rich and peaty flavour. Like no other in its class. Hand-picked whiskies that create a delicious multi-layered whisky with hints of fresh fruits, subtle spices and light peat smoke all enveloped in a vanilla sweetness. The finish is long lasting with a lingering smoky sweetness. 

Lauren Kuhlmey, Grant’s SA Marketing Manager, comments: “This is truly an exciting period for us as we introduce this unique blend in the Grant’s Family. We believe that Grant’s Select Reserve is a premium, yet accessible offering in the blended whisky category and we hope that this new variant will set a high benchmark in the South African market. “

Grant’s Select Reserve is produced b…
July marks Savings Month, an initiative launched by the South African Savings Institute (SASI) to secure sustainable growth in South Africa, driven by a vibrant savings culture and financially aware population. 

While this strategy is largely focused at consumers, this year’s theme of “Promoting a Savings Culture” also needs to be instilled into entrepreneurs. 

Generally speaking, South Africans often do not have accumulated savings to dip into in times of need, thereby resulting in many cashing in their retirement savings or accessing debt. Kobus Engelbrecht, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, says that although ‘cash is king’ is a well-known old phrase, it remains very true to this day, and in a business, cash is a very important lifeline in any sector, and determines the difference between its existence, expansion or failure. 

He says that while regular forecasts are drawn up to ensure suffi…
Incentives can unlock the potential of franchises An incentive is defined as “something that motivates or encourages one to take action”. Taste Holdings has recognised the significant potential of incentives to achieve a variety of positive outcomes within its franchisees’ businesses, both in terms of increasing brand visibility and sales, and strengthening, retaining and motivating the employee body. Lindy Taoushiani, Divisional Marketing Executive at Taste Holdings, says incentives can also reward customers for their loyalty to the brand.

Retaining trained staff and encouraging their loyalty are key objectives for franchise owners. The cost and inconvenience of continuously replacing staff members pushes up direct costs because of the recruitment process, and it can occupy valuable time management and lower productivity in the store while the new employee is shown the ropes, as other employees as well as supervisors, need to invest time into this process to ensure everyone is up to sp…
LACK OF SME FINANCE KEEPS ENTREPRENEURS AT BAYAre there enough sources of finance to stimulate entrepreneurship?

Owners of small and medium enterprises (SMEs) regard access to finance as a major hindrance in either starting a business or expanding an existing business. Not only is this experienced by local businesses, but also by entrepreneurs situated all over the world, with research indicating that access to finance is the main hindrance globally. The question begs why? 

The limited finance available for SMEs is as a result of financiers regarding these businesses as high risk, says Gerrie van Biljon, Executive Director at Business Partners Limited (BUSINESS/PARTNERS), a risk finance company which finances and invests in SMEs.

“SMEs are often perceived to not have the correct financial systems and controls in place, and have out-dated or questionable financial statements. In many cases the financial leverage is also not at acceptable levels, with the collateral offered either insuffic…