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Showing posts from June, 2012

The Business Coach gives SME owners a workout on new reality show

Programme gives behind-the-scenes look at real life challenges of small business

A unique partnership between SABC3 and Standard Bank will see South Africa’s small business owners getting practical, specialist advice and assistance on the business challenges they face when the new series ‘The Business Coach’ takes to TV screens this Sunday (1 July 2012).

Small business owners across the nation will be able to tune in every Sunday at 16:00 to see how the Business Coach helps real business people overcome business problems and grow their businesses.

Clive Pintusewitz, Director of Small Enterprise and Enterprise Development at Standard Bank, says: "We understand that starting and growing a small business can be difficult for people who have loads of enthusiasm, but limited business experience. People have to get advice and support when facing the hurdles and bureaucracy which go with making a small business succeed," he says. “The Business Coach provides an innovative channel f…

Mr. Franchisor: IS YOUR FULL ARSENAL IN PLACE? .... LOOKING AT INTELLECTUAL PROPERTY

By Eugene Honey

To protect the franchise system and the franchisor’s rights during, upon and after termination of an agreement, intellectual property rights can be utilized both independently and in the provisions of the franchise agreement. These intellectual property rights include trade marks, trade dress, copyright, know-how, trade secrets and goodwill as the primary rights licensed to the franchisee during the term of the franchise agreement.

In our most recent article we briefly dealt with the franchisor’s contractual arsenal as set out in the franchise agreement. For the purposes of this article we will focus primarily on intellectual property under the headings of trade marks, copyright and know-how. In certain instances the different types of intellectual property do overlap, providing additional protection.

Trade MarksIn terms of the Trade Marks Act, a trade mark includes any sign capable of distinguishing the products or services of a business, in relation to what it is use…

Nashua Limited named number one office automation company in Top 500 company survey

Reaffirming its status as the leading distributor of digital office automation equipment and document output solutions in Southern Africa, the Top 500 survey of South Africa’s Best Managed Companies has named Nashua Limited as the number one company in the local office automation sector.

The Top 500 survey recognises the top businesses in South Africa through employing a team of research analysts. This team gathers information from over 4,000 companies annually, and analyse the data to find the top five companies from 100 business sectors.

Nashua Limited Managing Director, Dave Coutinho notes that the Top 500 recognition is further evidence of the company’s continued success and longevity in the office automation market.

“Nashua is extremely proud to have received this honour from the Top 500 survey, and believe that it proves that we are market leaders, rather than followers. 

“We firmly maintain that we have been able to achieve this position through offering our customers a custo…

MAKE SURE YOU’RE AN ENTREPRENEUR BEFORE YOU BUY A FRANCHISE

Advice on franchising by Pieter Scholtz, Master Licensee for ActionCOACH SA. ActionCOACH is one of the fastest growing and most successful business coaching franchises in the world today.
Before you jump in and buy a franchise, there’s one very important question you must ask: “Am I an entrepreneur”?

Success in business comes down to one fundamental characteristic that you absolutely must have, and that is an entrepreneurial mindset.

What exactly is an entrepreneur? An entrepreneur can be defined as a person who organizes a business venture and assumes the risk for it. If you do not possess a natural, built in instinct for business, running a company will be a challenge.

Achieving profitability means keeping a keen eye on the five main business areas that impact turnover, what we call the Business Chassis. Below we explain the parts of the Chassis. Think of it as your formula for success.

1. NUMBER OF LEADS
This is the total number of potential buyers that you had contact with in the…

Sandwich Baron reels in Montague Gardens customers

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Johannesburg, 25 June 2012 - Consumers in Montague Gardens have been revelling in the healthy, freshly prepared sandwiches that their local Sandwich Baron has been delivering straight to their doorstep.
Sandwich Baron Montague Gardens owner, Lizetta Lopez is overwhelmed with the positive response received by the local community and elaborates on the store’s success.  
“Montague Gardens is mostly known as an industrial area, and there isn’t a wide variety of convenient, healthy food options available. We therefore seized the opportunity and have gained an extensive client base since opening. Our customers rave about the wide variety of options available, the freshness of our products and the convenience of being able to order their meals and have it delivered free of charge,”
Lopez, who has 12 years’ experience as a pastry chef overseas, notes that she plans to maintain the store’s high level of service by keeping her staff motivated through cultivating a good working relationship, which …

THE VALUE OF A BRAND AND BRAND EQUITY – a franchise perspective

Brand equity is a market-based intangible asset that refers to the preference customers display for a selected brand amongst seemingly similar products, and their willingness to pay a premium for it.
By Gerhard van Wyk

The Avusa Media Survey (2011) assessed the strength of brands in South Africa and revealed the top brands in a range of categories that included; alcoholic spirits, where Hennessy, Jameson and Johnnie Walker took top honours, in cell phones it was Nokia, Blackberry and Samsung, ABSA, Standard Bank and FNB were tops in retail banking, while BMW, Mercedes Benz and Toyota made top of the log for cars, and the top three electronic goods brands were Samsung, LG and Sony.
Aaker`s model defines the asset categories that make up brand equity and the benefits they hold for an organisation/franchise.

Brand awareness is the strength of a brand’s presence in the mind of the consumer. Measured by recognition and recall, brand awareness signals substance and commitment and creates …

Sandwich Baron stakes its claim in Kimberley

Johannesburg, 19 June 2012 - A new diamond has recently been uncovered by the Kimberley community, following the opening of the first Sandwich Baron in the city. Since opening in May, the local community has embraced the opportunity to tuck into freshly prepared and succulent sandwiches that can be delivered straight to residences or places of business.
Sandwich Baron Managing Director Sally J’Arlette-Joy says that the franchise’s successful entry into the Kimberly market can be attributed to the unique taste and nature of the brand.
“Kimberley residents have previously not had a dedicated food franchise that can provide them with and alternative to fast food in the form of convenient, healthy and delectable sandwiches or snack platters. This discovered value will keep our customers coming back for more.”
While Sandwich Baron Kimberley is owned by Nick Lambrianos, the day-to-day operation is managed by his brother Harry and his wife, Nadine.
Harry notes that their familiarity with th…

DON’T GET RUN OVER AT THE NEGOTIATING TABLE

Our previous article entitled “Don’t go into business with your head in the clouds” stressed the importance of negotiating skills when starting up, buying, selling or expanding a small business. Get it wrong at the negotiating table and you may be bulldozed into accepting terms you had no intention of conceding to.
By Bob Power

In this segment we consider three sale/purchase transaction case studies with particular emphasis on the negotiating skills of the participants, and the conclusions resulting therefrom, remembering that for each transaction the variable permutations are limitless. In each case study the business concerned was valued at R1 million by an independent auditor.

Case study A – The seller pointed out that his asking price of R1 million was proposed by an auditor following a valuation of the business. Without questioning the valuation and based on a limited due diligence, the buyer agreed to the price which was paid upfront and in full. After takeover many problems ca…

Why franchisees need financial know-how

Up to 63% of new businesses fail within their first two years in South Africa, and running a franchise connected to an established brand is no guarantee of success in today’s marketplace. Overwhelmingly, the reason for this is bad financial management – business funds are mismanaged, franchisees don’t know how to raise capital, and spending spirals out of control.

The essence of financial management is planning. Planning itself requires creative thinking, research, personal experience and financial know-how. It has many aspects and considerations, but it is non-negotiable for the running of a successful franchise. As the adage goes, failing to plan is planning to fail. However, financial management is not difficult to learn, and is an essential skill for franchisees who employ a significant proportion of South Africa’s workforce. Here are five reasons why you need to boost your financial skills.

1. Understanding financial jargon

After the recession that hit everybody where it hurt, fra…

The methods of business valuation

Unlike most other assets and commodities, the value of a small business is not dictated by what the market offers, but rather by the ability of its intangible assets to generate wealth.

In our last segment in this series we dealt with the factors and circumstances that impact the decision of which valuation method should be applied to a specific business. We now take a closer look at the actual valuation methods available and the circumstances under which they should be applied.

By Kobus Oosthuizen

The price-earnings method

The prince-earnings method is a widely accepted method of valuation for small to larger businesses and employs projected future profitability as the basis of the valuation. In other words, what the buyer is actually buying is the future profits of the business. The science in this method of valuation is to determine the likelihood of the projected profits actually being realised.

The price-earnings ratio or PE, is a multiple which is applied to the quantum of proj…

CRIME REMAINS AN EVER-PRESENT THREAT TO SMALL BUSINESSES

Small and medium sized businesses will continue to be seen as soft targets by criminals if they don’t prioritise security and implement measures to protect their premises, equipment and employees.

This is the view of Auto & General Business Insurance’s spokesperson, Shaun Rademeyer, who says that the most recent police crime statistics as well as Auto & General’s claims figures for the first quarter of this year suggest that robberies at business premises is increasing and remains an ever-present threat for SMEs.
“Unfortunately, the rising cost of doing business means that a lot of small businesses don’t prioritise investment in security or insurance protection. This is despite various surveys suggesting that crime is a top concern for small business owners,” says Rademeyer.

In a 2010 survey of SMEs sponsored by the National Youth Development Agency, 50% of decision-makers at established SMEs have sleepless nights about crime. No small wonder given that 14 667 robberies at bu…

Market opportunities in Africa drive Nashua’s investment on the continent

In recognition of the considerable investment opportunities that are present in Africa, Nashua Limited has initiated plans to establish dealerships throughout Africa over the next few years. These dealerships will encompass local partnerships with established African companies.
Nashua has just recently signed up new dealerships in Zambia and Mozambique and plans to have a dealership in Angola before year end. Further expansion into other African countries is planned for 2013.

THE EXPECTATIONS AND RESPONSIBILITIES OF FRANCHISING

Whether you decide to establish your own venture or to buy into a franchise, you need to make sure that you have what it takes to go it alone.  You need to be brutally honest as to your motives, your health, lifestyle and family situation to be sure that all fits into your plan to become your own boss.

Franchising is not for everyone and certainly not for the faint-hearted. Although most franchisees have an element of entrepreneurship inherent in them, it is also true that most are former employees with corporate backgrounds. Some are the victims of mergers or downsizing, or are on the verge of retirement. You must consider whether you are suited to franchising and willing to abide by the controls the franchisor will impose on your business.

On a personal level ask yourself the following questions…

• Are you generally a healthy person?
• Are you a confident, outgoing type of person not afraid to tackle challenges and problems head-on?
• Are you a people-orientated person, able to interact …

Nashua Limited is gaining market share in the production printing market

Nashua Limited’s participation at the 2012 Africa Print Expo in Cape Town on July 20th and 21st is set to accelerate the company’s strategic shift into the production printing market, notes its Marketing Director, David Hallas.
“Nashua maintains that the Africa Print Expos across the country are the ideal events to highlight our services and offerings to the print production market. After our successful participation at the Durban expo, our involvement in Africa Print Cape Town will further demonstrate to our clients and competitors that we are serious about production printing and that we have the software, expertise and equipment to back up our commitment in this regard.”
Nashua offers a dedicated production printing division comprising solutions engineers that work to define, build, implement and support superior production solutions. These production printing experts will be on hand at Nashua’s stand to answer a range of software and hardware questions.
Hallas adds that the Afric…

Maxi’s new marketing material rumbles with flavour

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Johannesburg, 4 June 2012 - Maxi’s has launched their trendy new website which not only depicts mouth-watering menu choices, but also acts as a portal for prospective franchisees. Following on the successful launch of their new menu in April, Maxi’s have redesigned their website along the same principles, proving yet again that they are ‘More than just a Meal’.
Taste Holdings Food Division CEO, Christo Calitz elaborates on the decision to redesign their marketing collateral. 
“Market research has indicated that our target audiences attach considerable value on the marketing and design elements of our business, and as such, we decided to employ communication methods that speak directly to both market trends and the core needs of our consumer.
“With this in mind, we undertook the decision to redesign our website for it to be reflective of our new menu design. The colours of our marketing collateral remain bold with shades of pumpkin, black and touches of white to replicate our restaura…

BUSINESS PARTNERS RESULTS REFLECT IMPROVEMENT IN SME SECTOR

31 May 2012: Financial results for the year ended 31 March 2012 released by Business Partners Limited, a specialist risk finance company for formal small and medium enterprises (SMEs), reveal that the appetite for SME finance in South Africa is improving, despite the ongoing local and global economic challenges.
The group announced that the amount of funding advanced to SME’s increased 38.9% to R 803.4 million, from R 578.4 million in the previous financial year. This is the second highest level of advances achieved by the company in the last 15 years. 307 SMEs received finance from Business Partners Ltd, at an average value of R 2 405 000 per transaction.

During the period, the group’s portfolio of investments under management increased by 7,1% to R2,16 billion from R2,02 billion, while its investment property portfolio rose by 19,4% to R679,9 million from R569,2 million in 2011. 92 investments to the value of R220,7 million were approved for black entrepreneurs, while 133 investmen…

Scrumptious Scooters Pizza now open in Meyerton

Johannesburg, 29 May 2012 - Scooters Pizza Meyerton today opened its doors to the local community, releasing the scrumptious aroma of its alluring pizzas and pizones. Now Meyerton pizza lovers will be able to enjoy hot, tasty, fast Scooters Pizza offerings whenever the craving hits them.
James Manson, proud owner of Scooters Pizza Meyerton, says that as a first-time franchise owner he plans to lead his team with honesty and mutual respect.
“Through my previous experience in the business environment, I have learnt that a happy team means a satisfied and pleased consumer base, as after all, our employees are the best brand ambassadors for the store. Not only will we be focusing on delivering outstanding service along with lip-smacking meals, but we are also committed to creating long lasting relationships within our local community.”
Fitted with an appealing interior and an accommodating team, Scooters Pizza Meyerton aims to make every experience an inviting one.
Taste Holdings Food Di…

Imbalie Beauty reveals long-term investment potential

30 May 2012, Johannesburg. JSE-listed Imbalie Beauty (formerly Skinwell Holdings Limited) has posted positive audited results for the 2012 financial year. The group, which offers a comprehensive beauty offering of nail, hair and skincare through its bouquet of established brands, saw a 12.8% increase in system-wide sales revenue, taking this to R132 million for the audited period. Group revenue additionally rose by 9.4% to R61.9 million on the back of increased marketing, the introduction of new brands and improved royalty income. Coupled with these solid results, the group has recently acquired the Perfect 10 franchise, making Imbalie Beauty the largest beauty franchise group in South Africa. As such, it is poised to deliver on its long-term investment potential…
Imbalie Beauty’s latest financial results demonstrate that its strategy of ongoing re-investment in the group, its legacy brands and its products and treatments is having the desired effect. Comprising the well-established b…