Marcel Klaassen Banking hours no longer apply to entrepreneurs  FNB Business has given a new meaning to convenience in banking with the launch of its latest innovation ‘24/7 Business Desk’ which allows businesses of all sizes to solve administration related queries at any time of the day. “24/7 Business Desk, another first for the bank, was developed with the business owner in mind,” says Marcel Klaassen, Head of Sales at FNB Business.  “Our entrepreneurial culture drives us to fully understand the complexities and pressures of running a business in South Africa. As a result, we hope to break traditional banking stereotypes and develop innovative banking solutions like the 24/7 Business Desk.” As economic circumstances remain uncertain many business owners have no choice but to maximize sales and productivity, during working hours, in order to gain a competitive edge and retain market share. This often leaves little or no time to focus on banking administration related ta...

Marcel Klaassen As part of an ongoing bid to encourage more businesses to comply with the Financial Intelligence Agency Act (FICA), FNB has launched KYC Doc Uploader, an innovative solution that allows non-compliant business owners to conveniently upload outstanding FICA documents online. Business owners that are not yet compliant will now get a message prompting them to update their FICA documents when logging into their FNB Online Banking profile. Once all the outstanding documents have been uploaded, their information and FICA status will be verified within two working days. Marcel Klaassen, Head of Sales at FNB Business says KYC Doc Uploader is not only a proactive and efficient way of driving the FICA message, but also gives customers peace of mind by simplifying the FICA process. Furthermore, we consider it a significant milestone as it complements the Bank’s efforts to comply with FICA and KYC regulations, helping us to ensure that all client accounts are supported by update...

Morne Cronje Franchising continues to be an attractive investment for entrepreneurs that want to play it safe and go with a tried and tested concept. In spite of that, even a proven business model still carries an element of risk for entrepreneurs that go in blindly without doing proper due diligence. Morne Cronje, Head of Franchising at FNB Business says, similar to other businesses, franchises are also sensitive to economic headwinds. As a result, entrepreneurs that want to take that big leap of faith into running their own franchises should carefully do their homework to avoid disappointment and financial losses. He shares ten essential questions that entrepreneurs should ask franchisors before signing on the dotted line: When will I reach break-even point - It is important to understand all the start-up and running costs of a franchise. This helps to determine when the business will begin generating enough revenue to cover all monthly expenses. Will I get enough support -...

Elize Giese As the old saying goes, ‘do not put all your eggs in one basket’, the same principle applies to small business owners that want to get the most out of their savings, while minimizing investment risks. Elize Giese, Head of Investments at FNB Business says when investing business profits it is important for SMEs to have a diversified portfolio as a way of managing risks. “Diversifying simply refers to limiting risks by spreading a company’s investments across different instruments and products in order to cater for short and long-term business needs,” adds Giese. However, the extent to which a business diversifies depends on the nature of the business and its long-term investment and savings plan. Giese says small business owners with cash on hand should opt for investments that are not only diverse, but offer liquidity in the event that instant access to cash is required for unexpected short-term business needs. For example, there are various business investment products...

Yudhvir Seetharam As the business environment continues to evolve, bringing a new set of challenges and threats to organisations, risk managers across the globe are beginning to harness the power of Big Data to accurately predict and manage risks more efficiently. Yudhvir Seetharam, Head of Analytics at FNB Business , says stricter regulatory requirements and compliance penalties have prompted businesses in the financial services sector to find new ways to effectively evaluate and manage risks. Consequently, Big Data is now being actively used as a key risk management indicator to identify problems and address them quickly before they impact on the reputation and bottom line of businesses. “It is therefore not surprising that more and more organisations are investing in Big Data to enhance the predictive power of their risk models to enable business leaders to make more informed decisions,” says Seetharam. Moreover, the ability to manipulate historical records, to detect hidden ope...

Many entrepreneurs that decide to scale up their operations without getting the right support run the risk of making costly mistakes that could threaten the survival of their businesses. Heather Lowe, Head of Enterprise and Supplier Development at FNB Business says scaling up refers to the journey entrepreneurs take to sustainably expand their businesses by improving their management structures, operations and systems in order to grow market share and revenue. These high growth potential businesses not only create sustainable jobs, but also contribute to long-term economic growth for the country.    She says while every business is unique, there are common factors that can determine if a business is ready to scale up. The business must overcome start-up challenges, have a clear mission and vision, proven concept, strong customer base and consistently grow revenue. During this phase, entrepreneurs that consider scaling up usually face the challenge of having great ...

Graeme Parsons Business credit cards are increasingly gaining popularity as transactional tools for small business owners that want to conveniently manage finances while saving on costs during tough times. Graeme Parsons, Head of Business and Corporate Credit Card at FNB , says when used responsibly business credit cards can be a great source of revolving credit for short-term business needs. Moreover, they are no longer just seen as debt instruments, but have become good financial management tools for start-ups that are still finding their feet and need to stay on top of business finances. He shares six reasons why small businesses should frequently use business credit cards:   Tracking expenses – using a credit card for all business expenses helps SMEs to store information in one place. This makes it easy to pull data and statements for tax and auditing purposes. No collateral needed – unlike other forms of credit, business owners do not need collateral to secure cre...

Elize Giese As more businesses struggle to maintain profit margins and survive in this tough operating environment, the last thing SMEs should be doing is wasting more money while trying to cut costs. Elize Giese, Head of Investments at FNB Business says one of the biggest mistakes that SMEs make when trying to cut costs is failing to devise holistic strategies dedicated to assist their businesses from financial losses. Instead, small business owners often make rash decisions when under pressure to try and cut costs, but end up doing more harm than good. Giese shares ten common cost cutting mistakes that business owners should aim to avoid. Long-term consultancy contract – consultants make sense when there is a short-term need for specialist skills. If however, it is an important part of your business in the long term, it might make sense to hire a full-time resource. Using consultants for long term projects can prove to be costly for SMEs. Therefore, developing the required sk...

Mags Ponnan Despite the rapid growth of business accelerators, small business owners are still reluctant to take advantage of these initiatives due to a lack of knowledge and understanding of how impactful the right guidance and support can be for their business. Mags Ponnan, Head of Customer Value Propositions at FNB Business says in order for the country to create jobs and maintain sustainable economic growth, support should be provided to SMEs that often face leadership, operational and strategic challenges. “However, entrepreneurs that are eager to take their businesses to the next level should be cautious when enrolling in business accelerators as many of these programmes may be unique, sector specific and have different goals and objectives,” says Ponnan as he shares ten reasons why SMEs should consider joining business accelerators.  Mentorship – being a good entrepreneur alone is not enough to successfully expand a business. Entrepreneurs need to acquire certain...

Local price increases will be met by resistance from struggling consumers Despite fears that local coffee prices will drastically increase due to a shortage of beans from Brazil, coupled with the entrance of Starbucks into the local market, prices will remain stable and steadily increase at realistic levels. Because South Africa is a net importer of coffee, the severe drought which affected Brazil last year, the largest coffee producer in the world, heightened fears that prices would increase due to global supply shortages. Brazil has since had a fair share of rain and is set to produce its largest harvest for the 2016/2017 season which will lead to lower coffee prices globally.  Dawie Maree, Head of Information and Marketing at FNB Business, Agriculture says South Africa has not yet experienced supply challenges as we import most of our coffee beans from Eastern African countries which continue to increase yields and produce quality crops. Maree cautions that lower glob...

Yudhvir Seetharam As the domestic economy continues to contract, Finance Minister, Pravin Gordhan has tough decisions to make while curbing spending, accommodating the drought-stricken agricultural sector and ensuring that small businesses continue to grow. “The National Budget Speech has a direct impact on the bottom line of SMEs and influences long-term business decisions,” says Yudhvir Seetharam, Head of Analytics for FNB Business, as he unpacks reasons why small businesses should make time for the budget speech.  Tax – this should be watched closely as high unemployment, decreasing disposable income of consumers and the slowdown in economic growth are currently leading to lower tax revenues for the government. Meanwhile, tax relief for small businesses would have a major impact on their profit margins. High youth unemployment – the current youth subsidy may be cancelled due to complaints that it is not effective enough. However, scrapping this subsidy, while saving o...

Sanjeev Orie Sanjeev Orie, CEO of Business Value Adds  Given the tough economic conditions that SMEs are already facing, the increase in interest rates will add more pressure by making debt more expensive. Profit margins are also likely to be impacted in the long term due to a lower demand from consumers that will tighten their belts as disposable income decreases.  For most of the middle class consumers, a rate hike typically means an increase in mortgage and vehicle repayments. This means that businesses that are highly geared and operating on low margins may struggle to service their debt commitments.  As a result, small businesses may run into cash flow problems, making it difficult for them to manage running costs and payments to staff and suppliers for goods and services. Moreover, the possibility of further interest rate hikes next year will require SMEs to place more emphasis on their annual cash flow forecasts and regularly review them as business con...