2014 brings with it new challenges and opportunities for business owners, all of which need to be incorporated into a business’s plans going forward. This is according to Gerrie van Biljon, executive director of Business Partners Limited, who says business owners should make use of the first few weeks of the New Year to reflect on what worked well in 2013 and what needs to be improved or changed for the year ahead.
He says proactive planning, with clear timelines, will positively benefit the long-term development of a business. “Business owners who avoid planning ahead may increase their exposure to risks during the upcoming year.
“Implementing changes early in the year will ensure that the business is prepared for the period ahead and will assist in evaluating whether it is effectively prepared for upcoming opportunities or possible challenges within the landscape that it operates in.”
Van Biljon shares five New Year’s resolutions that small and medium enterprise (SME) owners should consider when planning for 2014:
1. Managing cash flow as effectively as possible
Cash flow is the life blood of any business and effectively managing this aspect of the business will allow more flexibility when there is a need to address emerging dilemmas, such as late payment, or when critical decisions need to be made, such as having the capital available to purchase additional stock in order to satisfy client demand. Regularly updating a budget and a statement of cash flow will enable business owners to keep an eye on where money is spent, and allow them to cut back where applicable.
2. Create and maintain valuable partnerships
A new year provides businesses with the opportunity to establish new and beneficial partnerships, as well as cement any present valued partnerships. Building relationships with the right individuals and businesses is key to the success of any business, due to the long lasting and powerful effect a favourable relationship can bring about. In order to make a successful partnership thrive, establish a win-win solution that is fair to both parties.
3. Attending networking events
Building a successful business takes a lot of time and drive, so it’s advisable for business owners to surround themselves with individuals who share a similar ambition. As an entrepreneur, networking is crucial as it provides the opportunity to build those much needed business contacts and relationships.
4. Continuously seek mentorship
Seeking regular advice and guidance from a mentor can prove invaluable for business growth, as well as personal development. It is simply impossible to know everything about running a business as everyone has their individual strengths, and a fresh pair of eyes can identify possible gaps in business practices and assist with strategies which the business has not yet considered. Not only will a mentor enable a business to focus on its objectives more effectively, but it can also boost morale. When selecting an appropriately experienced business mentor, seek a mentor who has experience in the skills you may lack and ensure the terms of the mentorship – time, costs and outcomes – are as clear as possible in order to ensure that the match works effectively.
5. Establish a successful online presence
Having a successful online presence and strategy is becoming increasingly important for SMEs due to the growing number of consumers making use of online tools to find suppliers and solutions for their needs. The increasing number of online users and growing popularity of online mediums such as a company’s website, Twitter, Facebook and LinkedIn have created many opportunities for SMEs to directly interact with both their current and potential customers. These tools have also dramatically changed the way brands interact with their target audience. It is therefore key that SMEs utilise these platforms effectively in order to maximise the exposure and awareness for their business. Having a constant stream of engaging content will ensure that the business maintains a favourable online presence.
Van Biljon says the New Year creates an opportunity for businesses to better themselves and their offerings. “Like many New Year’s resolutions, the list may seem daunting. However all business owners require is a shift in mindset and most likely a change in habit. Allocating time for each goal and a realistic date of conclusion will assist you in achieving your New Year’s resolutions,” concludes van Biljon.
Source: How We Made It in Africa
Showing posts with label Business Partnership. Show all posts
Showing posts with label Business Partnership. Show all posts
Sunday, January 12, 2014
Tuesday, October 22, 2013
3 Key things Private Equity Firms look for in SME
Christian Opoku Biney (left) and Stephen Antwi-Asimeng from Jacana Partners’ West Africa division.
Jacana Partners is a private equity firm focused exclusively on investing in African SMEs. How we made it in Africa recently sat down with Stephen Antwi-Asimeng and Christian Opoku Biney from Jacana’s West Africa division to find out more what they look for in an entrepreneur.
1. Passion and understanding
Biney says it is essential for the entrepreneur to demonstrate a passion for the business, as well as a good understanding of the industry in which the company is operating.
It is often said that passion is the only thing that keeps an entrepreneur persevering through tough trading conditions.
2. Systems
Good business systems streamline and optimise our workflow. A documented system should cover everything related to a specific business process in a sufficient level of detail.
An efficient system allows a business to operate effectively even when the owner is away.
According to Biney, in many SMEs it is often the tendency for the entrepreneur to be involved in every aspect of the business. However, this is not conducive to company growth. “We know that really constrains the ability for such an entrepreneur to operate at optimal level. We try to advise them to put in place the systems that are necessary for them to operate at an optimal level.”
3. Transparency and sharing control
According to Antwi-Asimeng, many SMEs in Africa tend to be family businesses, often operating without the level of transparency required by private equity firms.
Antwi-Asimeng says the business owners should be willing to share control of the company, and participate in good governance practices that make companies more transparent and “hopefully sustainable”.
“A lot of SMEs tend to be family businesses where there is some level of obsession for control, and some opaqueness. Private equity doesn’t work in those environments. The book must be open. The entrepreneur must be prepared to accept that his business is different from himself,” he explains.
Source: How We Made It in Africa
Saturday, May 11, 2013
Know your Business Partner in Africa – Three Simple Checks
By: Mitchell Mackay, a senior analyst in the Johannesburg office of
Pasco Risk Management, which is a specialised risk consultancy helping
international firms enter emerging markets.
A trusted and capable local business partner is a
sought-after commodity in Africa. For companies and entrepreneurs
entering the market, the benefits of a successful partnership can
include immediate access to local business networks and invaluable
in-country knowledge. Moreover, African governments are increasingly
promoting local economic participation through the enforced or
incentivised partnering of foreign companies with local businesses.
However, it is not uncommon for a business relationship to move into advance stages only for one party to unearth potential risks associated with their prospective partner, whether it be in the form of financial instability, reputational concerns, legal liability or sensitive political links. Whilst the substantive issues of corporate compatibility, legal frameworks and financing would typically be addressed as part of a standard pre-engagement due diligence review, there are steps that can be taken even earlier in the partnering process.
In the early stages of engagement, before the essential issues of partnership are tabled, a straightforward three-point due diligence “quick check” can be performed by any company or entrepreneur prior to taking the relationship forward. In doing so, business executives and entrepreneurs alike can begin to know more about who they are dealing with before a formal business relationship takes shape. In this day and age, the internet now stands as a powerful and surprisingly insightful tool for compliance and regulatory measures. Detailed searches across a range of web resources can often turn up a surprising amount of information, which can assist in making business decisions. For “quick check” purposes, it provides anyone – from CEOs to compliance officers – with a means of learning more about their prospective partners.
Below are three simple checks that can be performed in the initial stages of a business relationship:
1) Political exposure check
There is often a strong intertwining between business and politics throughout many African economies. The increasing range and depth of anti-bribery legislation emanating from both the United Kingdom and United States is gradually influencing good governance procedures in emerging markets. Trends in best-practice compliance and risk management are increasingly highlighting the political exposure of executives and shareholders as a necessary compliance check. The motivation behind this is largely based on the rationale that politically-linked individuals or government officials with interests in the private sector are inherently more exposed to offers of bribery and corruption.
How can you find out more? Publicly accessible compliance portals hold lists of identified politically-exposed persons across various countries. Typically, these lists include both politicians and government officials, which can be searched via the web. These lists, of course, should only serve as an initial check and any suspicions of damaging political exposure should be followed-up by a more thorough review. The issue of indirect political exposure – through associations with the family members, personal friends or business partners of government officials and politicians – should also be considered as part of an initial assessment of a prospective business partner. Aside from the issues of anti-bribery compliance, it is also necessary to consider that who you are associated with, in the contemporary African business landscape, can ultimately impact on your own corporate image and reputation.
2) Industry reputation check
Before potentially putting your own business reputation at risk, it is important to have a basic understanding of your counterpart’s own local reputation and track-record. Large companies, no matter where they are active globally, can typically never escape public scrutiny when issues of business integrity or malpractice come to light. In this sense, it is fairly easy to assess a large company’s reputation.
When dealing with a small to medium sized counterpart in Africa it is altogether more challenging to determine issues of reputation and professional track-record. In these instances, it is prudent to be proactive and make more detailed enquiries that are based on the opinions of other industry players and in-country contacts. Calls to professional associations that your counterpart may belong to or local trade missions are also viable options. Whilst opinions can vary, the key is to provide your company with enough information to formulate a view and better understand who it is that you are dealing with.
3) Sanctions and international watchlists check
It’s common to dismiss sanctions and watchlists based on the assumption that only high-profile and internationally recognised individuals and companies would feature. The reality is, however, that these lists incorporate a large number of designated persons and companies, many of whom continue to conduct business. Africa, like any other part of the world, is home to a host of individuals or companies that have either transgressed trade embargoes, intentionally or unintentionally funded terrorist activities or committed/assisted in human rights violations. Your “average” company may have contravened in some way, for example, through trading fronts or other indiscriminate commercial links. One shouldn’t expect sanction busters or specially designated companies to be entirely upfront about previous indiscretions. When entering a new business partnership in the African market or any other market for that matter, you could inadvertently put yourself at risk of immersing, either directly or indirectly, into a business network that could include sanctioned companies or individuals.
Sanctions and warnings are regularly issued by countries and global institutions and can be accessed and searched through selected open-media sources. The United Nations, European Union and the United States all oversee sanction and warning systems, allowing for quick checks against the names of companies and individuals. The US Department of Treasury and its Office of Foreign Assets Control, for example, maintains a Specially Designated Nationals (SDN) list. The United Nations and the British Treasury also maintain similar lists. There are, of course, limits to what data can be accessed freely and comprehensively. Checking an individual or company name is straightforward but the network of companies, business partners or other associates surrounding a sanctioned person or entity can also present diluted risk. When in doubt, any concerns surrounding a business partner should be escalated and the assistance of a specialised service provider should be used to more fully assess the level of risk.
Forewarned is forearmed
The benefits of a local business partnership are clear but identifying a suitable business partner and cultivating a successful relationship can be a tedious and challenging process. In the long-run, knowing as much as possible about your prospective partner at the outset is a critical means of avoiding the risks of fall-out down the line. It should also be remembered that it is not always necessarily about how a prospective partner engages with you directly but, rather, how they might conduct themselves outside of your business relationship. The guiding principle should be that, whether you are partnering with a large company or an individual, knowing more is a key factor in identifying and cultivating a successful business partnership in Africa.
Source: How We Made It In Africa
A trusted and capable local business partner is a
sought-after commodity in Africa. For companies and entrepreneurs
entering the market, the benefits of a successful partnership can
include immediate access to local business networks and invaluable
in-country knowledge. Moreover, African governments are increasingly
promoting local economic participation through the enforced or
incentivised partnering of foreign companies with local businesses.However, it is not uncommon for a business relationship to move into advance stages only for one party to unearth potential risks associated with their prospective partner, whether it be in the form of financial instability, reputational concerns, legal liability or sensitive political links. Whilst the substantive issues of corporate compatibility, legal frameworks and financing would typically be addressed as part of a standard pre-engagement due diligence review, there are steps that can be taken even earlier in the partnering process.
In the early stages of engagement, before the essential issues of partnership are tabled, a straightforward three-point due diligence “quick check” can be performed by any company or entrepreneur prior to taking the relationship forward. In doing so, business executives and entrepreneurs alike can begin to know more about who they are dealing with before a formal business relationship takes shape. In this day and age, the internet now stands as a powerful and surprisingly insightful tool for compliance and regulatory measures. Detailed searches across a range of web resources can often turn up a surprising amount of information, which can assist in making business decisions. For “quick check” purposes, it provides anyone – from CEOs to compliance officers – with a means of learning more about their prospective partners.
Below are three simple checks that can be performed in the initial stages of a business relationship:
1) Political exposure check
There is often a strong intertwining between business and politics throughout many African economies. The increasing range and depth of anti-bribery legislation emanating from both the United Kingdom and United States is gradually influencing good governance procedures in emerging markets. Trends in best-practice compliance and risk management are increasingly highlighting the political exposure of executives and shareholders as a necessary compliance check. The motivation behind this is largely based on the rationale that politically-linked individuals or government officials with interests in the private sector are inherently more exposed to offers of bribery and corruption.
How can you find out more? Publicly accessible compliance portals hold lists of identified politically-exposed persons across various countries. Typically, these lists include both politicians and government officials, which can be searched via the web. These lists, of course, should only serve as an initial check and any suspicions of damaging political exposure should be followed-up by a more thorough review. The issue of indirect political exposure – through associations with the family members, personal friends or business partners of government officials and politicians – should also be considered as part of an initial assessment of a prospective business partner. Aside from the issues of anti-bribery compliance, it is also necessary to consider that who you are associated with, in the contemporary African business landscape, can ultimately impact on your own corporate image and reputation.
2) Industry reputation check
Before potentially putting your own business reputation at risk, it is important to have a basic understanding of your counterpart’s own local reputation and track-record. Large companies, no matter where they are active globally, can typically never escape public scrutiny when issues of business integrity or malpractice come to light. In this sense, it is fairly easy to assess a large company’s reputation.
When dealing with a small to medium sized counterpart in Africa it is altogether more challenging to determine issues of reputation and professional track-record. In these instances, it is prudent to be proactive and make more detailed enquiries that are based on the opinions of other industry players and in-country contacts. Calls to professional associations that your counterpart may belong to or local trade missions are also viable options. Whilst opinions can vary, the key is to provide your company with enough information to formulate a view and better understand who it is that you are dealing with.
3) Sanctions and international watchlists check
It’s common to dismiss sanctions and watchlists based on the assumption that only high-profile and internationally recognised individuals and companies would feature. The reality is, however, that these lists incorporate a large number of designated persons and companies, many of whom continue to conduct business. Africa, like any other part of the world, is home to a host of individuals or companies that have either transgressed trade embargoes, intentionally or unintentionally funded terrorist activities or committed/assisted in human rights violations. Your “average” company may have contravened in some way, for example, through trading fronts or other indiscriminate commercial links. One shouldn’t expect sanction busters or specially designated companies to be entirely upfront about previous indiscretions. When entering a new business partnership in the African market or any other market for that matter, you could inadvertently put yourself at risk of immersing, either directly or indirectly, into a business network that could include sanctioned companies or individuals.
Sanctions and warnings are regularly issued by countries and global institutions and can be accessed and searched through selected open-media sources. The United Nations, European Union and the United States all oversee sanction and warning systems, allowing for quick checks against the names of companies and individuals. The US Department of Treasury and its Office of Foreign Assets Control, for example, maintains a Specially Designated Nationals (SDN) list. The United Nations and the British Treasury also maintain similar lists. There are, of course, limits to what data can be accessed freely and comprehensively. Checking an individual or company name is straightforward but the network of companies, business partners or other associates surrounding a sanctioned person or entity can also present diluted risk. When in doubt, any concerns surrounding a business partner should be escalated and the assistance of a specialised service provider should be used to more fully assess the level of risk.
Forewarned is forearmed
The benefits of a local business partnership are clear but identifying a suitable business partner and cultivating a successful relationship can be a tedious and challenging process. In the long-run, knowing as much as possible about your prospective partner at the outset is a critical means of avoiding the risks of fall-out down the line. It should also be remembered that it is not always necessarily about how a prospective partner engages with you directly but, rather, how they might conduct themselves outside of your business relationship. The guiding principle should be that, whether you are partnering with a large company or an individual, knowing more is a key factor in identifying and cultivating a successful business partnership in Africa.
Source: How We Made It In Africa
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