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Showing posts from May, 2018

Franchise industry continues to drive value through mergers and acquisitions

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Mergers and acquisitions (M&A) have become an important driver of value in the South African franchise industry sector, which continues to grow in both volume and value for investors in this low risk high return sector of the economy. This is despite the recent trend of slow growth in the South African economy.

Our own data shows strong year-on-year growth in the franchise assets book between 2016 and 2017, which ran in excess of 20% and was primarily driven by M&A in the multiple store franchise groups. Most of this M&A activity was experienced in retail, restaurant and fast foods, and fuel franchise sub-sectors of the South African franchise landscape.

M&A generally refer to the transactions in which the ownership of companies, business organisations, operating units or assets are transferred or combined. In a merger, two organisations join forces to become one new business, usually with a new name whereas in an acquisition, one business buys a second which is norma…

Franchising sector takes the lead in driving economic growth

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Sector to come under the spotlight at the 2018 FASA Franchise Convention

With the economy showing a positive growth for the coming year and public and business sentiment more positive, the Franchise Association of South Africa (FASA) is poised to spearhead initiatives and events that will nurture entrepreneurship, encourage small business development, add to skills growth and ultimately add much needed jobs to the economy.

The franchise sector has continued its growth trajectory despite the tough economic conditions of the past eight years, adding around 88 new franchise systems and 2 789 new outlets in 2017 – proving that franchising remains one of the soundest business formats, structured to withstand economic challenges. With a contribution of 13,3% to the country’s GDP through its 845 franchise systems, over 40 000 franchise outlets are giving direct employment to close to 400 000 people.

According to Vera Valasis, Executive Director of FASA, “the continued growth of new franchise…

20 Years of dedicated service as team member Tiny Mamabolo retires

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2018 is a year of milestones for Minuteman Press in Strijdom Park, South Africa. Not only is the business celebrating its 21st anniversary but Tiny Mamabolo, who joined the business shortly after it opened its doors, has retired after 20 years of loyal and dedicated service.

Tiny, with a wealth of experience having been in the printing industry for over a decade, joined Minuteman Press Strijdom Park in February 1998 to take charge of the finishing and bindery department.

Along with her production responsibilities, Tiny took care of just about everything else in the shop. Loyal customers will remember Tiny’s friendly voice at the end of the phone as she was invariably the first to pick up.

Whilst keeping an eye on the finishing and bindery operation, Tiny has for the past several years operated the guillotine, her care and precision ensuring that wastage has been kept to an absolute minimum.

On Friday 11th May, the CEO of the Randburg Chamber of Commerce and Industry, Linda Blackbeard…

Important Strategic Partnerships for The Tax Shop

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Regardless of the industry in which any business operates, having an ally in the form of a strategic partner will benefit a business.  Strategic partnerships provide competitive advantage and opportunities to access a broader range of resources and expertise.  Such partnerships can often provide distinctive skill sets and product lines that are different from the competition.  Such distinctions are of even greater significance in a franchised operation where the benefits from strategic alliances can be leveraged across the entire franchise group.  The main objective of such alliances is the true synergy of one plus one equals five instead of two.

We have always regarded our strategic partnerships with great importance and are proud to have formalised partnerships with top professional organisations and software providers, allowing us to offer unique and customised services to our clients.  We currently have alliances with the following:
Prominent accounting bodies in SA.Prominent tax …

Sanondaf: a work from home franchise opportunity

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If you are looking for a simple business opportunity or to include Sanondaf System in your existing Cleaning or pest Control services with a low risk and a high profit margin then SANONDAF franchise opportunities tick every box.

Sanondaf offer franchisees a proven and tested concept, fully protected intellectual property and a system that has generated continuous positive results and a consistent return on investment.

The latest generation of Sanondaf touchless disinfection solutions combine the effect of both their spraying devices and disinfectants solutions, allowing for the air and surface areas in a room to be disinfected automatically. Sanondaf’s patented disinfectant is a highly effective oxidizing disinfectant that kills 99.99% of all hazardous germs and bacteria without posing any threat to humans, animals or plants. Sanofog – Sandondaf’s fogging device was developed around a heating and ionizing turbine that transforms the disinfectant liquid into a dry fog. Sanostatic – Th…

The Minuteman Press Franchise Jumps 34 Spots to #51

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Minuteman Press International, the world’s leading design, printing, and marketing franchise, has earned their ranking on the Franchise Direct 2018 Top 100 Global Franchises list. The Franchise Direct rankings were generated using objective and measurable criteria including (but not limited to) system size, system revenue, stability and growth, franchise longevity, and best practices in the areas of franchise support and training. The Minuteman Press franchise was found to demonstrate these qualities.

“We are thrilled to once again be recognized by Franchise Direct as one of the top global franchises for 2018,” says Bob Titus, Minuteman Press International President & CEO. He adds, “This is especially rewarding because these franchise rankings take into account the longevity of our business model that has been tried, proven, and refined for over 40 years as well as the high level of ongoing franchise training and support we have provided to our owners since we started franchising…

Dire youth unemployment stats drive home the need for youth-focused employment and entrepreneurial opportunities

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Statistics South Africa (StatsSA) last week released unemployment data for the first quarter of 2018 – showing that youth unemployment in the country has risen to 52.4% in the first quarter, from 51.1% in the last quarter of 2017. Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS believes that these findings highlight the job creation crisis we face in South Africa, and that implementing youth focussed employment initiatives and fostering entrepreneurship are key to overcoming it, particularly for the youth.

Mjadu believes that there is no time like the present for both the public and private sectors to take tangible action, and points to President Ramaphosa’s Youth Employment Service (YES) which was launched in March as one method of tackling the issue. “We need to use these, and other, platforms to get more young people into employment.  It is particularly encouraging that the YES initiative encourages small, micro…

Winter is coming - don't get caught in the financial cold

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How to keep your winter costs down low

Winter is coming. While we prepare to dig out the additional blankets and heaters, South Africans should remember to factor in the accompanying increase in monthly expenses that comes with the chilly period. Whether these are for medicines, gas or electricity, it’s easy for these costs to add up.

“Unlike putting on a little extra winter weight – which can be swiftly dealt with in spring – additional expenses during the colder season demand immediate monitoring to prevent long-term impacts on your finances,” says Tristan Naidoo, Legal Adviser at Old Mutual Personal Finance.

“We all increase electricity consumption through the use of electric blankets, heaters, and the increased use of kettles, stoves and ovens to cook winter-warmer foods.  It is essential to factor this increased usage into our monthly budgets. The importance of this exercise is compounded considering the 5.2% electricity hike which kicked in on 1 April 2018.” 

He adds that we nee…

Breaking down borders - Top considerations for SMEs expanding into Africa

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In light of Africa Day on the 25th of May, more South African small and medium enterprise (SME) owners should be encouraged to look at how they could expand their operations into the rest of the continent.

This is according to Mark Paper, Chief Operating Officer at Business Partners International (BUSINESS/PARTNERS), who says that Africa has for long been regarded as a region with untapped economic opportunity. “The African Development Bank reports that the economic growth in Africa is set to accelerate to 4.1% over the course of 2018 and 2019, which can potentially yield benefits for SMEs.”

Paper points out that entrepreneurs should however firstly consider that each of Africa’s 54 countries represents a unique market with differing challenges and intricacies for doing business. “The various economies, laws, languages and cultures need to be thoroughly assessed as part of the entrepreneur’s expansion plan, which should be structured around the target region’s strengths, weaknesses, …

Ensure your stokvel is geared for growth

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Why your stokvel needs to be more than a deposit box

Stokvels are on the move: moving from villages to cities, from mattresses into savings accounts and investment instruments. And as they move, they evolve and their potential for growth and their ability to create wealth increases.

“Stokvels have progressed in both the way their role is perceived and in the way they operate,” says Ntombi Tisani, Head of Marketing at Old Mutual Personal Finance. “While they continue to play a key role in our communities; the arrangement of stokvels is increasingly reflective of changing social dynamics. These include expanded definitions of stokvels as hubs for socialising, helping to reduce costs, realising shared goals – like savings for holiday travel, building commitment and spreading financial education.”

As South Africa’s R45 billion stokvel industry continues to grow, more and more financial solutions are being designed for the nation’s stokvel groups, now estimated to be over 800 000. “The fac…

High data costs continue to hamper SME growth in SA

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It is imperative to reduce the cost of data in South Africa to contribute to minimising the cost of running a small and medium enterprise (SME) and improve their growth.

This is according to Jeremy Lang, Regional General Manager at Business Partners Limited, who says that internet connectivity has become an indispensable business tool for most entrepreneurs and business owners. “However, the high cost of data in the country is severely impacting the profitability and productivity of many SMEs and startup businesses and can be a notable prohibitor when it comes to accelerating SME growth.”

He says that the cost of data in South Africa has been the source of much debate in recent years, with a new survey by research consultancy - BDRC Continental- on the competitiveness of broadband data costs, ranking South Africa at 97th place on a list of 196 countries. “In terms of competitive pricing, South Africa ranks below a number of other emerging economies, including Guatemala (72), Morocco …

Lessons for “momtrepreneurs” this Mothers’ Day

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Mothers are often lauded as the superheroes of their homes and society at large. So, when it comes to entrepreneurial moms, there can be no doubt that these women are a boundless source of inspiration who serve as motivation for their children and other moms to pursue entrepreneurship, a decision that can only benefit South Africa into the future.

Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS points to the 2016-17 Global Entrepreneurship Monitor report for South Africa which shows that for every 10 male entrepreneurs more than seven women were engaged in early-stage entrepreneurship activity - an increase from six in 2015.

Mjadu believes that lifestyle-entrepreneurship, where the business is a means to a particular lifestyle, offers a unique opportunity for women who need to fulfil the duties of motherhood, but who are also passionate entrepreneurs. “We are seeing these momtrepreneurs establishing successful home…

Avoid becoming a victim in a property scam

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Our lives have been made considerably easier with technological advances such as the internet. Unfortunately it has also opened up a world of opportunities for con artists. As automation improves, so does the level of property scams, and while every precaution is taken, there will always be yet another way that fraudsters discover to deceive buyers and sellers out of large sums of money.

“Fraud and investment scams thrive in all degrees in the real estate market, from developers who expect payment for work not done or a pretend agent who embezzles money. Working with a legitimate estate agent at your side will ensure that you will be protecting yourself against common types of real estate scams. When dealing with an agent, buyers and sellers must check that the agent is registered with the Estate Agency Affairs Board and has a valid Fidelity Fund Certificate. It's illegal for an agent to practise if they are not in possession of this important document. These certificates are iss…

SA fast food franchising on the rise

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The fast food and quick service restaurant (QSR) sector continues to show steady growth on the back of what has been a tough economic climate in South Africa. With a contribution in access of 29%, QSR has by far the biggest share in franchising turnover.

According to the Franchise Association of South Africa (FASA), the franchising market is worth R587 billion Rand, which is approximately 13.3% of the South African Gross Domestic Product (GDP).

Andre Beck, Sector Head: Fast Food and Restaurants at FNB Business says, “Industry data shows that South Africa has seen more franchises opening fast food and restaurant outlets in spite of the floundering economy. This clearly paints a picture of a sector that is competitive and lucrative, and more importantly, it shows that the franchising has sustained appetite to grow further in the local economy.”

Beck shares key trends in this sector:
Healthy food: Customers are mindful of what they consume more than before; they want to know which ingred…

The big issues facing SA’s small business

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There’s no lack of entrepreneurial spirit in SA, but start-ups and small businesses need skills, social capital and a supportive environment in order to succeed.

It’s a popular misconception that funding is the biggest hurdle in the way of small business success: in fact, knowledge and networks may be more important. This is according to small business experts and members of the Small Business Expo expert advisory board, speaking ahead of South Africa’s premier small business development platform – Small Business Expo 2018.

The expo, taking place from 6 - 8 September at the TicketPro Dome is an annual opportunity showcase and knowledge-sharing platform for local small and medium sized businesses, is presented by Reed Exhibitions in partnership with the Eskom Development Foundation. It is further supported by the Randburg Chamber of Commerce and Industry, and Minara Chamber of Commerce; endorsed by the Black Management Forum (BMF) and approved by AAXO.

According to Langa Manqele, FinT…

Why business owners need to dedicate time to their financial planning

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Imagine that your business partner dies tomorrow. Do you know exactly what will happen to their share of the business? Will their spouse take over their share, and how will this work for you? Do they understand the business and will you be able to work with them as the new co-owner?

The reality of this situation is more common than many business owners would like to think, and is just one amongst a myriad of critical reasons why business owners should take the time to do financial planning.

Jannie Rossouw, head of Sanlam’s Business Market, says many business owners fail to see the importance of financial planning in their businesses because they simply don’t dwell on what they don’t know.

“A business owner typically focuses on the nitty gritty of the business, because this is where his interest and his passion lies. Yet, taking a simple step back may help him realise the need to take care of his personal finances beyond the day-to-day running of business. Failure to do so will not on…

Adopting sustainability strategies can boost SA SMEs

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Many startup and small and medium-sized enterprise (SME) owners in South Africa believe that sustainability strategies are only relevant to large corporates, but there are many advantages to making sustainability the foundation of any new business. 

This is according to Jeremy Lang, Regional General Manager at Business Partners Limited (BUSINESS/PARTNERS), who says that it is often difficult to sell local SME owners on the idea of sustainability, largely because of the perceived costs and time involved.

“However, the benefits of implementing a sustainability strategy early on in the life cycle of a business far outweigh any cost implications. Small businesses built on sound sustainability principles could even see themselves gaining a competitive advantage in their respective sectors,” says Lang.

He points to a recent study by McKinsey that revealed a strong correlation between resource efficiency and financial performance among businesses surveyed. “The companies with the most advanc…

Seven steps to bring you closer to financial freedom

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This year on 27 April South Africa celebrated its 24th year of democracy. There’s no doubt that democracy opened a world of opportunities for many South Africans, but it’s also true that political freedom means little to those without economic freedom, says Lizl Budhram, Head of Advice at Old Mutual Personal Finance.

“The World Bank recently reported that South Africa is the most unequal country in the world out of 149 countries surveyed. This shows that there’s much work still to be done,” she says.

The most recent Old Mutual Savings & Investment Monitor found that an alarming 40% of respondents said they have no form of formal retirement savings at all, including pension/provident funds or retirement annuities. Although the majority of South Africans surveyed continue to lack confidence in the economy (with only 34% feeling confident), the latest research findings show that a third (33%) nevertheless believe that the government will take care of them when they are no longer abl…