6 Common mistakes of managing personal and business finances Managing a business profitably is not a lot different from managing your personal finances. There are more similarities than you think. The key to running a successful business is your ability to manage cash flow. Even the best business ideas can fail if capital and revenue are not carefully monitored. Similarly, if you overspend or mismanage cash on a personal level, you may find yourself with insufficient funds to retire on or have an unacceptable exposure to debt.  Ravi Govender, Head of Small Enterprises at Standard Bank says that by managing your personal finances in tandem with your business finances, you will ensure that both you and your business stay financially healthy.  “We are heading for some stormy waters; labour unrest has pushed back economic growth by 0.6%, the cost of borrowing due to the weak rand is increasing and interest rates are creeping up. Businesses who rely heavily on overdrafts...

More shelf space means new markets and increased sales The sustainable growth of a business means more than just having great products, but rather having access to more shelf space where your brand can attract consumers.   Ravi Govender Ravi Govender, Head of Small Enterprises at Standard Bank, says this is where most entrepreneurs make a mistake and lose the opportunity to keep their businesses on an upward growth trajectory. Episode four of the Standard Bank ‘Think Big – Building Business Champions’ series highlighted that many successful businesses that have promising growth prospects often find it challenging to break into new markets, because their owners lack the required expertise to take their businesses to the next level.  Even if your products are innovative and appealing to consumers, if they are not easily accessible, the prospects for growth can be bleak. The entrepreneur can become a victim of his/her own success, limiting opportunities for growth by...

What to consider when taking a business to the next level The reluctance to let go of control can be a barrier to the growth of many businesses  Ravi Govender Becoming a successful entrepreneur means investing time in a business and using your passion and talent to achieve your dreams. It is no wonder that many business owners find it difficult to consider bringing in investors and giving away part of their businesses when cash is required to expand and grow into new markets.  “Rather than losing control of his or her business, the entrepreneur will often make an emotional decision that could limit opportunities for growth. This will result in the business losing a competitive edge against its rivals,” says Ravi Govender, Head of Small Enterprises at Standard Bank, when highlighting the issue of ‘control versus scale’ featured in the second episode of the Standard Bank 'Think Big - Building Business Champions' show.  Reality and the desire to fulfil a dream wi...

Willpower, expertise and passion not enough to succeed in business Ravi Govender Developing a business plan is a strategic investment in the future and sustainability of your business Business owners often mistakenly believe that passion and a basic understanding of finance is all that is required to make a new business succeed.  The launch episode of the Standard Bank 'Think Big - Building Business Champions' show proved that placing an emphasis on business plans is an invaluable planning tool that can help businesses of all sizes to succeed.  The show encourages aspiring entrepreneurs to ‘Think Big’ about conquering challenging realities that new businesses face on a day to day basis, with an opportunity to win a R 1 million cash injection into their small businesses so that they can realise their dreams.  Commenting on the first episode of ‘Think Big’, which concentrated on the catering and service industries, Vuyo’s Kitchen and Vibe Events, Ravi Govender...

Ravi Govender Secure employees are happy employees   One of the major attractions of small businesses is that they rely on small teams of dedicated people for their ‘family feel’ and success. Looked at from an outside perspective, however, it is these very advantages that can add substantially to the risk of running a small business.   Ravi Govender, Head of Small Enterprises at Standard Bank, points out that in a small business severe injury or death of a key person, or even an employee’s family member/s, can severely disrupt the operations of a small business.    On the other hand, planning for such events can help employees avoid financial stress. The benefit for employers lies in increased employee loyalty, and reduces the time off required. “It is in this arena that embedded insurance policies, which cater for various contingencies, can be used to reduce risks and increase benefits for employees. They can also assist in differentiating your business...

Small businesses to benefit from creation of dedicated Ministry  The creation of a dedicated Ministry for Small Business offers enormous opportunities for this crucial sector of the South African economy.  Standard Bank estimates that about half of South Africa’s GDP is produced by small business, and that about 70% of private employment is provided through firms with fewer than 50 employees.   Ravi Govender “To date, the government has made positive progress toward improving the enabling environment for this sector. This included the simplification of tax requirements and the introduction of various support programmes.  However, poor co-ordination of support has prevented the sector from reaching its full potential as a driver of economic growth and job creation,” says Ravi Govender, Head of Small Enterprises at Standard Bank. Mr Govender notes that while there are a number of state and NGO providers who offer business development and financing targeted ...