In light of the challenging economic climate, South African entrepreneurs have been cautioned to buckle up for what is predicted to be a challenging year. In order to be prepared for what may face them in 2016, business owners are advised to dedicate the next few weeks to the planning of budgets and cash-flow, which are both crucial tools required for the survival of any business.  This is according to Gerrie van Biljon, executive director at Business Partners Limited (BUSINESS/PARTNERS) who says that without a realistic and well-managed budget, a business is much like a boat without sails – without direction and headed nowhere. He describes a cash-flow statement as a vital management tool that should be referred back to constantly, and not only on an annual basis. “The control of cash flow, adherence to payment deadlines and the management of creditors and debtors are all fundamental aspects that will determine the success of a business,” says Van Biljon. Van Biljon prov...

Irregular or delayed flows of payments from customers continue to have a detrimental impact on the cash flow of South African small and medium enterprises (SMEs), severely restricting opportunities for expansion and job creation.  This is according to Gerrie van Biljon, Executive Director at Business Partners Limited (BUSINESS/PARTNERS) - a risk finance company which finances and invests in SMEs. Van Biljon says that the way in which a business manages its working capital and the speed of its cash conversion cycle ultimately impact its overall profitability. “Put simply, in order to produce and sell a product or service a business incurs costs including wages and raw materials, and if it doesn’t receive payment during a certain time period for the product it has manufactured, or the service it has provided, the business cannot purchase new material, pay staff or overheads. The most recent Business Partners Limited SME Index, which quarterly measures confidence levels amongst...

MASTERING THE ART OF SAVING FOR A RAINY DAY 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.  Kobus Engelbrecht He says tha...