The Concept of Scalability

What is scalability? Scalability describes how easy it is to expand a business model and grow its revenue significantly, without equally increasing its cost base. Relative to its fixed cost base, revenue has the potential to increase exponentially and therefore, scalable businesses offer more profitability and huge growth opportunities. Over the long-term, a scalable business model is optimally designed to […]

Section 19 of the FAIS Act and the relevant submissions to the FSB

Section 19 of the FAIS Act states that financial statements must be submitted by all Authorised Financial Service Providers to the registrar, not later than four months after the end of the provider’s financial year end. If your business’ financial year end is 28 February, this deadline is 30 June 2017. Categories of FSP’ and type of financial statements to […]

Inventory control: Saving your business money

What is Inventory control Inventory control is the process whereby management ensures that inventory on hand is kept safe and in such a manner that it would enhance the entity’s cash flow. Why is inventory control important Management must understand what inventory they have, where it is kept and how and when inventory is moved both in and out. Doing […]

King IV™ Applicability of The Code™:

King IV™ is voluntary applied, on an Apply and Explain basis. It applies to all organisations, regardless of their form of incorporation. It is structured as a Report that includes The Code™, and additional separate sector supplements for SME’s, NPO’s, State-Owned Entities, Municipalities and Retirement Funds. Purpose of The Code™: It focuses on the following outcomes: Ethical culture Good performance […]

Non-Executive Directors (NEDs): Have you registered for VAT?

SARS recently published two Binding General Rulings (number 40 and 41) that have put the tax treatment of non-executive director’s fees to bed, which will come in effect on 1 June 2017. As it stands, a Non-Executive Director (NED) earning more than R1 million in director’s fees in any 12-month period should register for VAT. What will happen when the […]

Succession planning

Owning a business requires careful succession planning and is part of your estate planning as you have to determine who will succeed you, or who will purchase your shares, or who will be entitled to the income after your death. The future ownership of your business is at stake. A Partnership automatically dissolves upon the death of a partner and […]

Red flags: financial reasons why small businesses fail

Many people dream of starting their own business. Few of the dreamers get as far as actually starting a business. Even fewer of the businesses survive in the long-term. Too often small businesses fail due to reasons, financial and otherwise, that could have been managed or altogether avoided. Continue reading to see if you recognise any of these red flags […]

Business Ethics

There is a misconception that if a business complies with all legal requirements, it also has good business ethics. However, legal compliance does not automatically equate to morally sound business practices. A member of management or an employee’s conduct may not break any laws, but it may breach the standards of business ethics. What is business ethics? Business ethics is […]

When it comes to strategy, size doesn’t matter

To create a strategic roadmap for your business you don’t need heaps of wonderful resources; you only need to give up your preconceived ideas about strategy and open your mind. Sometimes the thing that holds a small business back the most is small thinking. If you believe that the size of your business is a disadvantage when it comes to […]