Tag: Kobus Engelbrecht

Report reveals that 2017 entrepreneurial activity in SA 4.1% higher than 2016

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The recently released 2017-18 Global Entrepreneurship Monitor (GEM) report for South Africa revealed that entrepreneurial activity in the country is at its highest level since 2013. The report also shows that total early-stage entrepreneurial activity (TEA) is at 11.0% – 4.1 percentage points above the 2016 score of 6.9%.

Kobus Engelbrecht, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS says that it is particularly encouraging to see that entrepreneurial intentions in the country have increased in the last few years, currently sitting at 11.7% (up from 10.1% in 2016-17).

Engelbrecht says that with these statistics, it is ever important to keep up the momentum by celebrating local entrepreneurs for the work they do in building the local economy, creating jobs and developing their communities with the view to inspire others to follow in their footsteps.

“We often casually refer to entrepreneurs being the backbone of the economy, but when the economy is still trying to recover from a number of macro-economic stumbling blocks, entrepreneurs show their invaluable worth.” He adds that job creation is one of the key aspects identified as areas which will help grow the economy – and this is one specific area that entrepreneurs can make tangible contributions.

Engelbrecht adds that in celebrating the work of entrepreneurs, business competitions do well to motivate and inspire business owners. He points to the recent launch of the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS which is now open for entries. “In our 30th year of celebrating and rewarding entrepreneurs, we want to encourage established entrepreneurs to enter this year’s competition – not only for the cash prize money at stake, but for the value received through the stringent judging process, business mentorship prizes as we as the resultant exposure.”

Engelbrecht adds that entrepreneurs have until 31 May 2018 to enter the competition and can do so by visiting www.eoy.co.za. Prizes are valued at over R 2 million, which includes cash prizes of R 70 000 for each main category winner, and R200 000 for the overall winner. Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.

SA’s premier entrepreneurial competition marks 30 years of celebrating entrepreneurial excellence in Cape Town

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Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech. This is according to Kobus Engelbrecht, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.

Speaking in light of the launch of the 2018 competition in Cape Town today, Engelbrecht says that this long-deserved recognition of the SME sector only further validates the competition’s unwavering commitment to celebrating excellence in entrepreneurship and fostering future economic growth.

“Now in our 30th year, this renowned competition continues to pay homage to the fearless South African entrepreneurs who dedicate themselves to their enterprises and businesses: driving growth, combatting unemployment and contributing towards the country’s economic development. It is therefore wonderful to see the public sector taking the required steps to improving the environment in which these entrepreneurs operate in order to promote further growth in the sector.”

Christo Botes, executive director at Business Partners Limited (BUSINESS/PARTNERS) has been involved in the competition since its inception in 1988, “Looking back over the last 30 years, this competition has evolved from an internal competition that recognized BUSINESS/PARTNERS’ clients only, to a nation-wide search for outstanding South African-based entrepreneurs, with Sanlam as our valued partner.”

He says that the competition continues to reward successful local business owners for the valuable contributions they make to grow their local communities and economies, and aims to inspire others to do the same. “As our 30th- anniversary year, we’re hoping to see even more entrepreneurs enter. The competition is open to all South African-based businesses and prizes are awarded for the following categories: Overall Entrepreneur of the Year®, Emerging Business Entrepreneur of the Year®, Small Business Entrepreneur of the Year®, Medium Business Entrepreneur of the Year®, Job Creator of the Year and Innovator of the Year,” says Botes.

Engelbrecht adds that this year, the 2018 competition will also recognize a South African entrepreneur for a Lifetime Achievement award. “The purpose of this specially nominated award is to recognize an entrepreneur who has made a significant contribution to the South Africa economy and has grown their business from start-up to large-scale, perhaps even multi-national corporation. We want to reward the individuals who have dedicated their lives to building our economy and inspiring others to do the same.”

The 2018 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, offers prizes valued at over R 2 million, which includes cash prizes of R 70 000 for each main category winner, and R200 000 for the overall winner. Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.

Engelbrecht says that in celebrating 30 years of searching for entrepreneurial talent in all sectors of the economy, the competition remains fiercely committed to its cause in 2018. “The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for their product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.”

Engelbrecht adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.

Entrepreneurs are encouraged to enter the competition and can do so by downloading the entry form online at www.eoy.co.za. They can also interact with fellow entrepreneurs, past winners and entrants on the competition’s social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is 31 May 2018. 

New Year, new flow

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Cash flow management key to steering a clear course of business in 2018

A typical new year’s cliché is the commitment to resolutions – whether they be to start new healthy habits or break bad ones – something that is usually accompanied by the setting of new priorities for the year ahead. As much as this age-old tradition of self-improvement forms the basis for personal growth and success – for entrepreneurs, this sort of structured thinking is key to setting the tone for a productive year in business.

One of our competition judges, Kobus Engelbrecht of Sanlam / BUSINESS/PARTNERS says that for the year ahead, stringent cash flow policies should be top priority for entrepreneurs – especially where low economic growth forecasts paint a less than positive outlook.

“The successful management of cash flow, including the commitment to honouring debtors, creditors and payment deadlines, will play a vital role in determining the success of a business,” says Engelbrecht.

Engelbrecht lists the following tips for entrepreneurs looking to prioritise cash flow in 2018:

Spend time on forecasting – detail is key

Accurate forecasting is one of the best ways to ensure that your business stays on top of its finances over the next 12 months. When looking forward, it is important to first review historical financial statements in order to effectively predict potential dips in sales or increases in expenses.

Be real, and accurate

Though the temptation to be eternally optimistic is always present for entrepreneurs, it is more important that cash flow statements and forecasts are kept as real and accurate as possible. When income is overestimated, there is heightened risk because this can provide a false sense of security in the business. As such, figures should always be based on historical sales data – and any deviations should be derived from realistic and probable factors.

Regular updates

As a once-off review is not nearly enough to keep a tight hand on cash flow, entrepreneurs should review their business’ cash flow statements regularly. This will allow for the early detection of any potential problems that may arise.  

Get savvy with payments

Technology is an entrepreneur’s friend – often providing a range of solutions at minimal (or at least reasonable) cost. Why then, should payment systems be any different? Entrepreneurs should tap into technologies that will make life easier – both for the business and their customers. It is also recommended that clear payment terms be set out from the onset with customers and third party suppliers to ensure timely compensation.  

Plan for Plan B

While planning ahead and keeping a tight grip on cash flow throughout the year are both smart methods of business management, neither of these will be effective if there is no plan B in place for when trouble suddenly strikes. This is especially true in a volatile economy where the economic tide can shift without warning. It is a good idea, therefore, to have a blue-print plan to guide the business through any rough patches it may come across.

Stay on top of the game

The world is moving at an alarmingly fast rate and entrepreneurs would do well to keep up to date with trends and best practices, such as putting in place efficient cash flow forecast monitoring, monitoring the industry landscape and keeping an eye on interest rates.

Keep it simple

Budgeting and cash flow forecasts may appear complicated and overwhelming in the beginning, but they need not be. In some instances, a simple spreadsheet may be more than enough to effectively manage an annual budget. Regardless of whether the entrepreneur employs an accountant to draw up the financial statements, they should make a conscious effort to know exactly what these statements say and project, at all times. 

Looking at business success amid a drought

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The Western Cape has over the recent past been hard hit by the severe drought in the region which has had direct, severe consequences on local businesses. Strict level 4B water restrictions have been implemented area-wide, and residents and businesses alike have been forced to curb water usage to 87 litres per person, per day. For many local businesses, this has demanded an immediate adaptation to regular operations.

Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year® competition, says that although the situation in the Cape is concerning for both consumers and businesses, entrepreneurs are renowned to use their resilient nature and adapt in order to survive setbacks such as these. 

To illustrate this, some of 2016’s competition finalists and winners shared their advice for fellow entrepreneurs on how to survive and grow a business during drought-stricken times:

“Although the drought certainly had a big effect on our local sales in the Western Cape, we were able to counter this through our export and Gauteng markets,” says Carl Pretorius, managing director of Just Trees, a wholesale tree nursery, and 2016 Medium Business Entrepreneur of the Year®. “Due to this leaner period however, we were forced to adapt our regular staff working hours to shorter work-weeks (four days instead of five) to allow all staff members to remain employed and ensure no retrenchments were necessary,” he adds.

Gali Gaon Segall, Director of Yemaya Group and 2016 Entrepreneur of the Year® finalist, says that her business has been fortunate to not be too badly affected by increased water restrictions. She does however recognise the importance of communicating the business’ efforts to save and conserve water: “Even though we have reduced our water consumption by replacing water-reliant treatments with others that are more water-sensitive, it is important that our clients and customers are visibly made aware of this – and we have found that in so-doing, our clients have remained loyal and happy to support our business,” says Segall. “In our spa’s and hair salons, we have trained staff to be conscious of their consumption – and because of all these efforts, our financial bottom line has not suffered.”

Also recognising the importance of positively contributing to the conservation of the previous resource, Nerina Smith, owner of Smithland Guest Apartments and 2016 Entrepreneur of the Year® finalist, says that her business took the decision to implement as many recycling initiatives as possible in order to mitigate their impact on the City’s water supply. “We installed a few water tanks to catch rain water, as well as grey water from our washing machines. We have used this recycling system to water our gardens, as well as for washing and cleaning wherever possible” says Smith.

She explains that from their successful rain-water harvesting and recycling process, the business was also able to assist a car wash business in the neighbourhood, who had been issued with notice to close the business if they could not find the means to use recycled water. Smithland Guest Apartments now donates its excess recycled water to this business – and has therefore prevented four community members from losing their stable income.

Engelbrecht says that as the drought in the Western Cape is still without an end in sight, it is imperative for all businesses, no matter the size, to band together in order to innovate ways to minimise the impact that these harsh conditions can have on a business.

“It is more than possible for small and medium sized businesses to survive and thrive, even under such strained trading and operating conditions – all it takes is a little perseverance and creative thinking,” concludes Engelbrecht.

Entrepreneurs to take a step back if they are to succeed

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Entrepreneurs can become so immersed in their businesses that they no longer ‘see the wood from the trees’, and that the way in which they are currently operating their business, could be the downfall of their success. 

This is according to Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who says that all entrepreneurs, regardless of their business cycle or success, can benefit from an outsider reviewing their business and its processes.

“A business mentor is one of the most valuable resources for any entrepreneur and business owner, yet is often the most underutilized,” says Engelbrecht.

A study1 conducted in the United States – which surveyed small business owners on the importance of mentoring – showed that of the business owners who use a mentor, 88% find their service invaluable. Furthermore, 70% of small businesses that make use of a business mentor, survive more than five years, which is double the rate of those that don’t use a business mentor.

In South Africa – where the rate of new businesses closing within five years of operation remains high – entrepreneurs should actively be seeking the advice of business mentors, says Engelbrecht.

“An external business professional, coach or mentor takes an outsider’s look into a business and critically reviews all elements of the business, and analyses where improvements can be made to maximise success. This process forces an entrepreneur to be honest about their business idea / concept and its current success, as too often, entrepreneurs become too involved in their business and lose perspective.”

Apart from using the services of a mentor – which can come at a fee depending on the agreement – there are other free avenues to explore that can force an entrepreneur to sit back and reflect on the current success of their business and its processes.

“A business competition is one platform to explore,” says Engelbrecht, “as often the judging panels include well-respected, established business professionals, who on a daily basis, engage with local businesses and the environment within which they operate.” He points to the Entrepreneur of the Year® competition as an example of what entrepreneurs can expect to take away when entering such a platform.

“During the judging process for the Entrepreneur of the Year® competition, the judges look at every aspect of the business – from its business strategy, manufacturing processes, marketing and sales plans, to its financial statements – to obtain a holistic view of how the business is running.

“The judges pose questions to the finalist entrepreneurs about their business. The line of questioning often prompts the entrepreneur to critically look at certain aspects of their business, and rethink certain processes within their business.”

2016 Entrepreneur of the Year® and MD of Agricon, Johan Eksteen, who also won the 2014 Small Business of the Year® category, explains that the feedback obtained during the judging process in 2014 enabled him to strengthen aspects within his business that he had overlooked, which ultimately aided him in strengthening his business, and clinching the overall title in 2016.

From his experience, Eksteen says the criteria for the judges was to decipher how entrepreneurial the business owner is in terms of how unique the product or service was, as well as the business model. “It’s important to see how my business is distinguished from the other businesses that entered. Being able to test my business against other entrepreneurs in South Africa was a great learning curve for me.”

Engelbrecht stresses that although entrepreneurial competitions are a good way for business owners to start the review process, accessing the services of a mentor is strongly advisable to conduct a regular, in-depth review of their business’ overall strategy. “Not only will a mentor guarantee that no stone is left unturned in the business, thereby eliminating oversight in potentially important areas, but a mentor will also hold the entrepreneur accountable for the business’ goals – both short and long-term – thereby ensuring the business continues to thrive and grow, ” concludes Engelbrecht.

Entrepreneurs to take a step back if they are to succeed

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Entrepreneurs can become so immersed in their businesses that they no longer ‘see the wood from the trees’, and that the way in which they are currently operating their business, could be the downfall of their success.

This is according to Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who says that all entrepreneurs, regardless of their business cycle or success, can benefit from an outsider reviewing their business and its processes.

“A business mentor is one of the most valuable resources for any entrepreneur and business owner, yet is often the most underutilised,” says Engelbrecht.

A study conducted in the United States – which surveyed small business owners on the importance of mentoring – showed that of the business owners who use a mentor, 88% find their service invaluable. Furthermore, 70% of small businesses that make use of a business mentor, survive more than five years, which is double the rate of those that don’t use a business mentor.

In South Africa – where the rate of new businesses closing within five years of operation remains high – entrepreneurs should actively be seeking the advice of business mentors, says Engelbrecht.

“An external business professional, coach or mentor takes an outsider’s look into a business and critically reviews all elements of the business, and analyses where improvements can be made to maximise success. This process forces an entrepreneur to be honest about their business idea/concept and its current success, as too often, entrepreneurs become too involved in their business and lose perspective.”

Apart from using the services of a mentor – which can come at a fee depending on the agreement – there are other free avenues to explore that can force an entrepreneur to sit back and reflect on the current success of their business and its processes.

“A business competition is one platform to explore,” says Engelbrecht, “as often the judging panels include well-respected, established business professionals, who on a daily basis, engage with local businesses and the environment within which they operate.” He points to the Entrepreneur of the Year® competition as an example of what entrepreneurs can expect to take away when entering such a platform.

“During the judging process for the Entrepreneur of the Year® competition, the judges look at every aspect of the business – from its business strategy, manufacturing processes, marketing and sales plans, to its financial statements – to obtain a holistic view of how the business is running.

“The judges pose questions to the finalist entrepreneurs about their business. The line of questioning often prompts the entrepreneur to critically look at certain aspects of their business, and rethink certain processes within their business.”

2016 Entrepreneur of the Year® and MD of Agricon, Johan Eksteen, who also won the 2014 Small Business of the Year® category, explains that the feedback obtained during the judging process in 2014 enabled him to strengthen aspects within his business that he had overlooked, which ultimately aided him in strengthening his business, and clinching the overall title in 2016.

From his experience, Eksteen says the criteria for the judges was to decipher how entrepreneurial the business owner is in terms of how unique the product or service was, as well as the business model. “It’s important to see how my business is distinguished from the other businesses that entered. Being able to test my business against other entrepreneurs in South Africa was a great learning curve for me.”

Engelbrecht stresses that although entrepreneurial competitions are a good way for business owners to start the review process, accessing the services of a mentor is strongly advisable to conduct a regular, in-depth review of their business’ overall strategy. “Not only will a mentor guarantee that no stone is left unturned in the business, thereby eliminating oversight in potentially important areas, but a mentor will also hold the entrepreneur accountable for the business’ goals – both short and long-term – thereby ensuring the business continues to thrive and grow, ” concludes Engelbrecht.

Solving SA’s unemployment crisis through entrepreneurship

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While the unemployment rate for the fourth quarter of 2016 as released by Statistics South Africa on Tuesday decreased from 27.1% (Quarter 3 of 2016) to 26.5%, urgent action and support structures are still required in order for local entrepreneurs to do what they do best – create jobs.

This is according to Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who says that one of the surest ways to further bolster employment figures in South Africa is to place more emphasis on the promotion and development of entrepreneurship.

Engelbrecht points to the latest Global Entrepreneurship Monitor 2016-2017 which states that small and medium enterprises (SMEs) in South Africa contribute 36% to GDP. “However, we could improve this figure if we make business conditions more conducive to growth.” Engelbrecht references the 2017 World Bank’s Ease of Doing Business report ranked South Africa 74 out of 190 economies – down from 72 in 2016.

If SMEs are to increase their contribution to the local economy, and in turn, the number of jobs they create, we need to ensure that we have an enabling environment and entrepreneurial ecosystem that allows entrepreneurs to thrive, says Engelbrecht. “The number of people a small business can employ is ultimately determined by many factors including the sector it is in, its turnover and length of time it has been in operation. The more stable the business, the more staff it can employ fulltime.

“South Africa’s established business ownership rate – the percentage of owners/managers of businesses that have been in operation for more than 42 months – is ranked 61/65 in the GEM 2016, while its Total Early-Stage Entrepreneurial Activity (TEA) – businesses that have been in operation for less than 42 months – is ranked at 52/65. This highlights how more emphasis should be put on ensuring that entrepreneurs – in all business cycles – have the necessary support to grow their business from a start-up to an established, thriving enterprise.”

The South African Institute of Chartered Accountants (SAICA) SME Report 2016 reported that of the SMME respondents with a turnover between R100k and R5 million per annum, 47% employ between two and five people, 33% employ between six and 49 people, and only 4% employ over 50 people. The balance of 16%, don’t employ any people, except for the business owner. “More needs to be done to bolster these employment figures.”

Engelbrecht adds that it was encouraging that the recent State of the Nation Address listed the development of SMMEs as a key focus area in the Government’s Nine-Point Plan. “With more focus being placed on the development of opportunities for entrepreneurs, it will enable Government to work towards the National Development Plan’s target of ensuring that 90% of new jobs will be generated by SMMEs by 2030,” says Engelbrecht.

“South Africa is home to many motivated and aspiring entrepreneurs, with 72.6% of the adult population believing that entrepreneurship is a good career choice*. Through platforms such as the Entrepreneur of the Year® competition, we have seen the impact made by previous finalists, creating jobs and uplifting their respective communities. The challenge now is to provide the necessary programmes and support needed to upskill and develop future entrepreneurs,” concludes Engelbrecht.

*GEM 2015/16 data.

It’s never too late to start your own business

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50 is the new 21 age for entrepreneurs

There is a common misconception among many budding entrepreneurs that starting a business is a journey that is best initiated at a young age. Entrepreneurship is however not just for the youth, and can be embarked upon at any stage of life.

This is according to Kobus Engelbrecht, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who says despite the success stories about young individuals pursuing entrepreneurial ventures – such as  Facebook’s Mark Zuckerberg (then 20) and Airbnb’s Brian Chesk co-founder (then 26) –  these individuals are the exceptions rather than the norm. “The average entrepreneur tends to be a middle-aged professional who, through experience, has identified an opportunity to establish a business and fill a gap in the market.

He points to research conducted in the US by Kauffman Foundation titled the Anatomy of an Entrepreneur. Surveying over 500 high growth founders, it revealed that the typical successful high growth entrepreneur is 40 years old, and that there are more than twice as many successful entrepreneurs over the age of 50 compared to under the age of 25.

Our experience with the competition confirms that there are still are a number of ‘older’ entrepreneurs making a name for themselves – those that have had a successful career and have since developed a business after identifying  a gap in the market, says Engelbrecht. “Our 2013 Emerging Entrepreneur of the Year® category winner, Jonathan Pepler, spent 30 years in the corporate retail sector before embarking on his entrepreneurial journey in the construction industry.”

Engelbrecht adds, the 2013 Entrepreneur of the Year® overall winner, Tommy Makhatho – owner of BiBi Cash & Carry – is another example. “While he had entrepreneurial aspirations from a very young age, Makhatho’s business only thrived later in life due to the experience he had accumulated. Having left school after standard nine in 1976, he went on to pursue many avenues from hairdressing to a distributing of hair-care products. In 1998, Makhatho opened the first Bibi Cash & Carry Family Supermarket and subsequently Bibi Wholesaler and Bibi Cash & Carry. The retail group has grown in profit and size significantly, and today, Makhatho  employs over 500 people.”

The average age of an entrepreneur in South Africa is between 22 – 45 years, according to the latest Global Entrepreneurship Monitor (GEM) South Africa 2014 report. Although there is no prescribed age to pursue entrepreneurship, each age group has its advantages, explains Engelbrecht. “Young entrepreneurs benefit from their propensity to take risks, a characteristic that is synonymous with entrepreneurial traits, as well as a youthful energy to persevere should a risk not pay off at first.

“However, in contrast, older entrepreneurs have the advantage of experience, as well as the ability to take more calculated risks given that they are likely to have more weighing on the risks they opt to take, such as family or investment responsibilities. Older entrepreneurs, those with more working experience, also tend to have more skills in running a business and wider networks to utilise for business gains.”

Engelbrecht says that the fear of ‘being too old’ to start a business shouldn’t be a reason that aspiring entrepreneurs don’t take the leap. “Some aspiring entrepreneurs shrug off the idea of owning a business out of fear that their internal clock has long ticked past the proverbial deadline. This mind-set needs to change.

“There are many successful business men and women who, after years of experience in the workplace – whether near to or far from retirement – find that their minds and bodies are still active and fit enough to begin a new venture, even well into retirement years.”

Engelbrecht concludes with a reminder that it is never too early or too late to start a business – with calculated risks, sufficient research, a good business plan and the right support – opportunities for success are always in sight.

Simple budgeting is better for a tough trading environment

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Just as the South African finance minister needs to ensure that the national budget is realistic and attainable, local entrepreneurs need to ensure they have their annual budgets in optimal order. The effective planning and prioritising of a budget is one of the most important elements of a business, and key to the future of a business’ financial well-being.

This is according to Kobus Engelbrecht, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and Business Partners Limited, who says that good budgeting sense and awareness will play a pivotal role in leading a business through tough economic and trading conditions.

The recently released Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report states that a lack of profits or finance accounts for more than half of business discontinuances. In South Africa, over one in four business exits are due to financial difficulties. “In the current marketplace South African entrepreneurs find themselves operating in, money is tighter than usual. Apart from consumers feeling the pinch and cutting back on their spending, financial institutions are also tightening their lending criteria, making it increasingly difficult for entrepreneurs to access additional funding if it is needed.”

Engelbrecht says that during challenging trading conditions, greater attention should be given to budget allocation. “Although forecasting and developing a budget in a challenging economic climate can be difficult, it is necessary for the survival of a business.

“Extra time should be spent on reviewing and narrowing budgets, as without a well-managed budget, a business can easily find itself in trouble. Not only will a clear budget and targets offer direction at management level, but it will also assist staff at an operational level.”

Engelbrecht offers entrepreneurs the following advice on how to stay on top of their finances in 2016:

Stay in touch:

Market information and research are key ingredients to maximise opportunities and minimise losses. Interact regularly with your clients, employees and suppliers and make a concerted effort to stay up to date with new developments that may benefit, or hinder, your business. If you are aware of what your market requirements are ahead of time, you can minimise incidents of loss.

Buckle up:

By doing a quick inventory check, a business owner can quickly refine excessive costs. These costs may include small items, such as coffee or office printing, or something much larger, such as a work process that could perhaps be conducted in a more efficient method. Entrepreneurs should be encouraged to communicate these cost cutting initiatives to their staff and encourage employees to get involved. Often you find that a business’ employees may not be fully aware what the minor daily expenses at the office can quickly add up after a year, or even in a month, in real terms on the business’ turnover.

Be Realistic:

Cash-flow needs to be closely managed and should not be rigid in theory to make the entrepreneur feel more positive about the financial future of the business. Businesses need to continue to spend money during this downturn to continue operations, but just at a more sensible rate. Provisions however should be made in the cash-flow to account for economic downturns and how the business will prepare for prolonged periods of a downturn while it waits for the next positive business cycle.

Back to basics:

One of the many reasons it is difficult to keep track of money spent is due to the cashless society that businesses operate in. While a good way to avoid unnecessary and overspending is to make use of cash payments, this isn’t always realistic. Instead, entrepreneurs could treat their budget books as cash payments and log all transactions as and when they take place. It may seem like a tedious activity, but it doesn’t need to be a complicated system – a simple excel sheet could work. Not only does this help to closely watch budgets, but an entrepreneur can also be updated with his business’ transactions daily.

Inventive entrepreneur awarded Small Entrepreneur of the Year® award

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Bryan Anderson, co-owner of Delta Steam Systems and the creator of the revolutionary Delta Venturi steam trap system, has been awarded the Small Business Entrepreneur of the Year® title at the annual 2015 Sanlam / Business Partners Entrepreneur of the Year® awards ceremony, held in Johannesburg this morning.

The Delta Venturi steam trap system, which removes water from steam systems to keep manufacturing systems efficient, is disrupting the global steam trap industry due to its simplicity and longevity. The business is experiencing tremendous growth in both local and international markets and yielding strong financial returns.

Delta Steam Systems was started in 2008 after Anderson continued to experience ongoing problems with the continuous failure of mechanical type steam traps, resulting in industrial companies around the world wasting millions of rands/dollars/euros. In addition to the product failure, the existing products available were very costly and had an extremely short lifespan.

After Anderson identified the need he went about designing and developing a product that has no moving parts which can fail, is more efficient over its entire lifespan when compared to other products, and is guaranteed for ten years.

According to Kobus Engelbrecht, a member of the 2015 Sanlam / Business Partners Entrepreneur of the Year® judging panel, the judges were very impressed by Anderson’s ability to establish and grow a business of such a technical nature without possessing any technical qualifications. “Anderson displays the qualities of a true entrepreneur – identifying a problem within a certain industry, creating a solution for the problem, and turning this solution into a profitable business.”

Situated in the Northern Suburbs of Cape Town, the business has a sales footprint in more than 20 countries worldwide, and competes with multi-million dollar global companies, both in South Africa and abroad. As a result the business has steadily gained significant market share each year.

Anderson says being selected as a winner in the competition is encouraging and motivating. “Being acknowledged for my achievements has never been a motivating factor, but I realise now that what I have been putting my mind into has certainly been worthwhile, and has become something more than just an idea.”

He adds that recognising entrepreneurs is essential as it creates awareness to others of the role of the entrepreneur in business. “It also motivates others, especially younger generations, to be part of the entrepreneurial movement, which is essential to long term growth and the success of a country.”

For more information please visit www.delta-industries.com