Month: October 2015

Open communication can turn family into a valuable business asset

Posted on by Business Partners Limited

In a sense, almost all owner-managed businesses are family businesses. The fortunes of even those run by a single entrepreneur without the direct involvement of other family members are heavily influenced by what goes on at home.

Such lone-operating business owners can turn their families into one of their greatest assets – a refuge of emotional support and healing when things are tough at the business, a source of inspiration during tedious times, a sounding board to help with difficult decisions. But like all relationships upon which an enterprise depends, this relationship requires concerted effort and focus, says Jeremy Lang, regional general manager of Business Partners Limited.

The ideal is to get your family to incorporate your goals for your business into their own goals. They must know what your goals for the business are and they must want you to reach them. If they do, they will always be ready to support you when you need them.

This does not mean that you are unnecessarily burdening your family with the worries of the business world, says Lang. Aligning your goals with theirs allows them to be part of your ups as well as your downs. It lets them share in the adventure of your business journey and allows them to be engaged in your life, which, after all, is what most family members need from one another.

Lang sets out a number of principles and pointers for engaging with your family about your business:

  • The basis of making your family part of your business is open and transparent communication. Keep them abreast about good and bad developments in your business. “They have to understand why they can’t go to the restaurant this month (when your business is going through a hard time),” says Lang.
  • Don’t try to shield your family from the bad news in your business because it may make them anxious. They are much more likely to become anxious by noticing that you are under pressure without knowing the context. Rather try to allay anxiety by describing to them the whole picture.
  • The first step in communicating to your family about your business is to clarify your goals. You have to explain to them what your definition of success is. For some entrepreneurs, success is reaching a certain net-worth target, for others it means financial independence, retirement at a certain age or freedom from eight-hour work days.
  • Invite your spouse and children to spend some time in your business. Make a point of celebrating the achievements of your business with your family. If you land a big contract, for example, arrange a family treat.
  • Allow your family to take care of you when you’re down. Keep communication channels open and honest so that your family can offer emotional support when you need it. Being vulnerable takes courage and always leads to a stronger family bond. Use technology to communicate with your family when you are at work, and vice versa. Accept that the work life of a business owner is more difficult to separate from home life. Fortunately, modern technology makes it possible for you to sort out a crisis at work or at home without always having to physically go in.
  • When you have to spend long hours at work, try to make it up to your family by spending quality time with them on another day.
  • It is always a good idea to have a mentor, someone who can help you with the business side of things, but also with family issues. An ideal mentor would preferably be someone who has successfully managed the same kind of lifestyle.
  • If you miss the goals which you have set for yourself and communicated to your family, renegotiate. Don’t just ignore them and hope that no one will notice. The more seriously you take your own goals, the more seriously your family will take them too, even when they change from time to time.

Daily communication around the dining room table is crucial to keep the family informed, but nothing stops entrepreneurs from having a more formal discussion, perhaps once a year, about the state of their business to their family, just as they would to a shareholder or a potential joint venture partner. It helps to focus the exercise and give it weight. The family is, after all, one of an owner-managed business’s most important stakeholders.

Technology can be a business enabler

Posted on by Sanlam

Article written by Jannie Rossouw, Head: Sanlam Business Market

The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.
Bill Gates

Whenever I think about the application of technology (hardware and software) I follow a specific thinking process – something which might also be of value to other business owners.

1. Assess your needs

It is a good practice to start with the end in mind. This means that you need to understand what business outcome you want to achieve. You can then proceed to evaluate which technology application will support you in achieving the business imperative.

For example:

  • You want to record client information: MS Excel might just do the job for now, but a more robust CRM system might be the ultimate solution.
  • You have shrinkage of stock in your business: Electronic stock control will give you a handle on stock levels and movement of stock into and out of your business.
  • You want to publish a weekly article/newsletter: Depending on the volumes involved and the graphical presentation of the article or newsletter, you can use MS Word, or MS Publisher, or customise the information in HTML (requires programming skills).

2. Take stock of what you have

Do you have a gauge on the hardware and software applications used in your business? I have seen equipment standing around in businesses having no productive use. It is even worse with software applications. Different versions of standardised software applications are used in the same business. Knowing if technology is functional and compatible goes a far way to avoid challenges leading to inefficiencies.

Do you know what the use of each piece of technology in your business is? (E.g. lead management, financial reporting and sign-off, HR admin, safekeeping of information)

3. What is available?

There are infinite solutions available for technology enablement and advancement. If you are not tech-savvy, I propose that you identify someone who is. Pay them a consultation fee, if necessary. It is important to note that you are still the person responsible for verbalising the business outcome

you want to achieve with the application of technology. It is not wise to delegate this responsibility to someone else.

4. The cost of ownership

Sometimes you do not need outright ownership of software or even hardware components. A licencing right, leasing agreement, or “pay as you go” utilisation might be the right option for you. In this way you only pay for usage and always have access to the latest version or development.

If the application is business critical or very unique, it makes sense to consider developing it in-house, or have outright ownership thereof. Bear in mind that the redundancy cycles of technology is short. Most technology applications and equipment have no or little second hand value.

Let me conclude with another statement by the ubiquitous Bill Gates: “Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other.”

To support business owners with the important task of business planning, Sanlam gives you free access to the book Your Annual Business Game Plan for Success, which provides an easy and straightforward framework needed to draft a well-crafted game plan that will create the positive change and growth necessary for business success. Go to www.sanlam.co.za/gameplan to download your free copy.

Creative recruiting gains momentum for 2015 EOY entrant

Posted on by Webmaster

Many find it challenging to balance both a career and family life, but when you are a mother of a young family with the goal of expanding your business into Africa while simultaneously increasing your local market and financial wellbeing, it sounds like an impossible task. Yet that is precisely what Laura Reynolds – business owner, wife, and mother to three young boys – decided to take on when she resigned from her stable job, at the tender age of 23 and started a recruitment company, The RecruitGroup.

For as long as Reynolds, a Rhodes University Psychology graduate, can remember, she has had a passion for business. It is with this passion that she has managed to achieve what many experienced businessmen and women have not – she has successfully managed and grown a business for nine years. “The company has experienced immense growth and is today one of South Africa’s largest privately-owned recruitment companies,” says Reynolds.

She says that starting her company at such a young age meant only a few people took her seriously, and many expected her to fail. Today the company has a multi-million rand turnover, a staff compliment in excess of 72, and is one of the 36% of recruitment companies that not only survived the recession in the country, but also grew in turnover during that time.

The RecruitGroup has adopted fresh work philosophies that have ensured the success of the company. An example of these philosophies include a flexi-time concept called iTime, which provides her employees with the option of going home once they have achieved what is required for the day – an idea that is aimed at creating higher morale, productivity and a decrease in absenteeism. “We implemented this philosophy to eliminate the daily commute in heavy traffic, promote smarter working strategies, and to put the ball in our employees’ court. We trust and value them and most importantly, believe that they are responsible enough to deliver what is required of them without having to actually sit in the office.”

In 2012 the company did away with commission structures in favour of higher basic salaries – a concept unheard of in the recruitment and sales industry. Since the introduction of this structure, the company’s turnover has doubled, morale has increased and staff retention is at an all-time high, says Reynolds. “Today’s workforce is bright, inquisitive, motivated and is constantly seeking new challenges. Therefore, if you want your company to succeed, it is vital to stay on top of what inspires your staff and to keep these movers and shakers interested.”

Reynolds established TeacHer in 2013 and RecruitGroup Graduate Academy in 2014, initiatives which pay it forward and shares her passion. RecruitGroup Graduate Academy is an equity focused initiative aimed at training graduates in all forms of recruitment and sales while TeacHer is an initiative developed to empower young women through an experiential shadow and mentoring programme. “The aim is to empower, upskill and educate young South Africans and provide a springboard into one of our economy’s most crucial areas, namely job creation.”

The RecruitGroup has won a number of industry awards and accolades throughout the years – a feat that Reynolds accounts to her employees’ passion for service, and the solution-driven, customer-focused services that have ensured that the company secures strong business relationships. “I believe that to survive in this difficult economic climate creativity and innovation are essential.”

Reynolds lists cash-flow, productivity, and attracting and retaining the best talent as one of her greatest challenges to date, and says that she has overcome these challenges by creating unique products and services that retain the company’s earnings and annuity income, and has adapted her management style to suit the different generations working within the company.

She says that although starting the business was rocky, as with all good journeys she had to find her way and forge her own route. Today she looks back and remembers the tears, the stress, and the sheer fear felt in those early days. “I can look back with pride and a sense of achievement that can only be earned by the experience of starting a business.”

For more information on RecruitGroup, please visit www.recruitgroup.co.za, or contact @therecruitgroup, laura@recruitit.co.za