I have seen the impact of taking money from the till with the promise of paying it back. It always feels reasonable in the moment. Just this once. Just until the payment comes in, the consequence is always the same. Cash flow issues. And the business owner says, ” But the sales are good, why can’t I pay what I need to pay?
As The Daily Stoic puts it: “When your efforts are not directed at a cause or a purpose, how will you know what to do day in and day out?”
A tax consulting.co.za article highlights the shrinking tax base in South Africa, exacerbated by the Covid pandemic, a situation confirmed by a study from Oxford University. While Mr. Kieswetter asserts that the tax base is not declining due to new registrations, a distinction exists between registrations and actual contributors.
Work with a qualified accountant, labour consultant, or business advisor. You don’t need to know everything, but you do need to know what applies to you.
Running a business without understanding your compliance obligations is like driving with no seatbelt — it might feel fine until you hit a bump.
Cash flow. We all know it’s essential. We all hear the saying: “Cash is king.”
Income Tax in a Nutshell
Income tax is simply a tax on your taxable income. Your taxable income is your gross income (everything you earned) minus any allowable deductions and exemptions.
In today’s highly competitive business landscape, sustainable growth is a critical concern for many companies. However, market saturation, operational inefficiencies, and evolving customer preferences create unique challenges – these challenges can be inflated for small and medium-sized businesses. In this case study, we explore a non-cookie-cutter approach to overcoming growth challenges, drawing from practical examples of how businesses can thrive in even the most competitive markets.
Mindset is crucial when starting a new journey. “Nothing will cost you more in life than a predetermined belief that things will not work out,” said Donald Miller.
“Many businesses are ultimately shuttered rather than sold, often at the expense of the business owner and their family. This is largely because most businesses are not initially structured for sale; rather, they are crafted to sustain a particular lifestyle.” – Pavlo Phitidis
“Have interest rates peaked? The answer is a resounding no.”
These were the words of Reserve Bank Governor Lesetja Kganyago in July 2023. The bank cautioned that the longer-term outlook remained uncertain amid the electricity and logistical issues, as well as the pressure on food prices. All these factors pose a risk to inflation and spending. This in turn affects our businesses.
John started his business after pitching his idea to some friends around the BBQ. He used all his savings for start-up capital, and family and friends provided loans. He could not apply for finance as his credit rating was not strong enough.
John’s scenario is not uncommon in the business environment. According to gviafrica.co.za, 3.3 million of the 5.6 million small businesses in 2018 were categorised as “survivalist firms”.
A few entrepreneurs have pitched their business idea to a group of funders, conducted market research, or developed a business plan and are not prepared to apply for finance.
John can implement some key strategies in his business to be able to apply for finance in the future. These strategies are:
“It was just poor management. Looking at it from a professional point of view, the procedures and policies weren’t there to control things.” (Quoting Frank Rawa.)
Risk is simply defined as a future uncertainty about the probability and severity of something
The Oxford dictionary defines sustainability as the” ability to be maintained at a certain rate or level”. The Collins dictionary defines sustain as the “ability to continue or maintain something for some time”.
The price you charge for your products has a direct impact on the success of your business. And it is one of the toughest questions to answer, especially if you are offering a service. Thus, it is not worth settling on a thumb-suck price or copying the competition.
Are you one of those people that can service your car at home? Most don’t. Instead, they use a professional mechanic to keep things running smoothly and to advise them on potential issues. The same applies to your business’s finances. By Gerty Green
As business owners, we are constantly making decisions. A decision can make or break a business. Complex and unpredictable interpersonal and personal issues are involved in the decision-making process and can result in anxiety. By Gerty Green
We all are striving for something; some wants to reach the stars and others wants to be filthy rich. Yet did you ever take a moment and consider what this thing you are striving for will entail, what will the demands be? By Gerty Green
We all love a good story. For some it is a love story, others like crime and others action. The financial numbers in a business also tell a story to the stakeholders. If accounting is the language of business – then financial ratios help you read between the lines! By Gerty Green
