Kleinhandel – BEE (KykNET’s Winslyn)


Kleinhandel – My persoonlike lesse (KykNET’s Winslyn)


Small businesses and Cashflow (KykNET’s Winslyn)

Cash is King

I see so many times in the business world that small businesses make a lot of profit but fail because of terrible cash flow. This may not make sense – You make a great profit, but you have no money? This is exactly why I’m doing this insert; How to get your cash flow up to scratch.

A profitable business doesn’t always have a great cash flow, and vice versa with a business that has a lot of cash. Your business might have a great bank balance, but you owe creditors a lot of money, or your bank balance is low but you have a lot of stock or a lot of people that owe you money.

Without a good Accountant or information about your business, it’s very difficult to determine the profitability and the cash flow of your business. This lack of information is often the downfall of small businesses. The saying goes, “cash is king” and for a small business, it is even more important. So let’s look at tips that can help you get your cash flow right:

  1. Manage your debtors better

 Debtors are clients who owe you money. It is critically important to have a good credit system in place so that you know daily or weekly exactly who owes you money and when they are going to pay. With today’s technology, it is also possible to automatically remind your clients to pay their bill by sending them a text message or e-mail. And when customers’ accounts fall into arrears, it is important to take action as soon as possible. Many times business leave overdue clients until the last minute and then it is usually too late to save anything.

  1. Credit terms with clients and suppliers

If you are required to pay your suppliers cash when ordering, but you give your customers 30 days to pay their invoices, immediately there’s a possible cash flow problem. You pay money but will only get the money again in about 30 days. Small businesses should look at getting the same terms regarding the suppliers and customers. You pay your supplier in 30 days and your clients pay you in 30 days. And of course, it will be a bonus if you can pay your suppliers even later.

  1. Delayed billing

When a business is still small and most tasks depend on the owner doing it, the general trend is that invoices are issued late – or at times never. For a business to maintain a good cash flow, it is critically important that invoices are issued every day like a product or service.

  1. Separate your business and personal account

Small businesses are usually run by one owner and it happens so often that this owner lives from the business account. School fees are paid from it, groceries are purchased and then you leave the business without cash. The best advice for any new entrepreneur is to separate your business and personal matters right from the start. Pay yourself a salary and keep to your personal budget.

Only 9 out of 10 new businesses survive within the first year and most businesses struggle to cope thereafter, because of cash flow problems. It certainly is a challenging problem, but by following basic principles, you can emerge relatively easily and cope. Most entrepreneurs realise it too late and then it is very difficult to change things, so make sure you start today and realise that cash is indeed king!

Visit my website at www.marnusbroodryk.com and let’s discuss small businesses and the interesting world of entrepreneurship.

Starting your Business

How to start your own business (KykNET’s Winslyn)

How to start your own business?

Everyone dreams of starting their own business. Of course, the world promotes a picture of freedom and a lot of money. However, this is most likely not the case. The life of an entrepreneur is mostly one consisting of hard work, risks and a lot of failures. If you’re dreaming of it, let’s talk about how to start your business.

20 years ago, information wasn’t as accessible as it is nowadays. Google changed our lives. If you had a dream 20 years ago, you could easily start a business. You could patent something and make a lot of money from it. Today, it can still happen but a lot has changed. Today a new business doesn’t necessarily mean a new idea. Today a new business means, how can I make something better, faster and cheaper.

Step 1:

Find something that you can do better than anyone else, something you’re passionate about and willing to spend 16 hours a day on. Something you’re willing to wake up for at early hours in the morning and to go to sleep for at late hours. Because THAT is entrepreneurship.

Step 2:

Determine your game plan. Universities and textbooks tell us everything regarding a business plan. Although it’s ideal, little businesses start that way. But to have a plan is critical. The plan will a change; you’re going to go into a hundred other directions but at least you’ll have a guideline towards what your goal is.

Lastly, get clients. Business plans mention market research. It’s extremely relevant and important but I believe that times have changed and depending on your business, there’s a bunch of different and better ways to test your market.

People tend to ask their friends and acquaintances if they’ll be interested in the product/service, the responses are usually overwhelmingly YES and the entrepreneur gets a misconception regarding the potential of the product/service. When the business is open there tends to be very few people wanting the product. So the best way to test it is to get people to start paying for your product/service.

How do you do this?

Take orders and let people pay for the upcoming product/service. When they pay, then you know there’s a market. Another interesting methods entrepreneurs use is to start a website with their business idea, without actually having the product. In other words, start an online shop and when people want to buy you say that you’re out of stock. Then you’ll have an idea regarding if you’ll have a business or not.

When you have your first client, then you have a business and the next task is to turn that one client into a hundred clients, thereafter a thousand clients and then enough to allow you to retire.

New entrepreneurs are usually so excited about their new idea that they tend to go into something so fast without testing the market. You don’t listen to friends and family. You know your idea will work and you just want to get the ball rolling. Unfortunately, you’re going to learn your lesson the hard way. Good businesses start slowly, changing as necessary and always working with a plan.

The life of an entrepreneur is definitely not as colourful as the work pictures it, but if you’re up for it, the reward of a successful business is overwhelming. It starts with small steps and the first step is to make sure it’s a business that can work.

Visit my website at www.marnusbroodryk.com and let’s discuss small businesses and the interesting world of entrepreneurship.


Entrepreneurs, Stop with the DIY (KykNET’s Winslyn)

Entrepreneurs, Stop with the DIY

You start your own small business and you try to do everything yourself. You familiarise yourself with marketing, you do your own sales, you develop your own product, you do your own accounting, you chase debtors, you do everything. That’s the life of a new small business owner. You are obligated to do it, but you want to save money, so you rather do it yourself.

But then the time comes when it all gets too much to handle. You can’t possibly get to everything by yourself. That’s when you should question yourself, shall I still try to do everything myself, do I employ someone to do this or do I look at other businesses that can offer me the required service?

We as South Africans love to try and do everything ourselves, you know “DIY” – but I think that this is the biggest downfall in a lot of our businesses. We believe we can do everything ourselves and we also think that nobody can do it better than yourself. At the end of the day, it’s got an expensive price to pay when your business stops growing and you create something that’s not viable any longer.

In this segment, I want to speak about three tasks that you can easily get rid of. It’s going to cost a few rands, but your business will be able to grow, you will get good advice and you’ll be able to focus on what matters – more business.

Firstly, marketing

The days are counted for traditional marketing – everything is now digital. You can get the right clientele easily and it will be relatively cheap. Google, Facebook and Instagram became the best marketing programs to get your product out there to be seen. Can you do it yourself? Of course, you can, but the right agency will be able to do it so much better. Allow them to get you the leads and you will still be able to sell your product. You know your product best, but they know marketing best.

Packages for small businesses start at R500 – R5000 per month and some of these agencies even offer a guaranteed number of new clients.

Then there’s the legal work

It’s so common nowadays that small businesses simply cannot afford law firms. It has become a general practice to simply source a template from the internet and change your contracts yourself. It saves you money, but it can cost you a pretty penny in the long run. My advice is to find an affordable person or firm that can help you with the legal work.

Lastly, it’s all your accounting

You start a new business, but a spreadsheet can only work for so long. You simply can’t run a business in the long term without giving the necessary attention to your financial systems and accounting needs. Of course, it goes hand in hand with taxes. I would recommend all entrepreneurs to find an accounting firm that can help you get good financial programs and systems in place and to help you on a month to month basis. They can advise you on how to run your business, they can save you tax fees and they’ll keep you on the legal side of the law. A lot of entrepreneurs think that they can play this role themselves or just employ someone, but the reality is that you can receive double the knowledge and maybe even pay less by finding the right accountant or accounting firm.  A monthly package of these services can range from R3000 – R10 000 per month. That makes it cheaper than employing your own internal accountant.

It’s time for us as entrepreneurs to work on our businesses and not to be busy within our businesses all the time, and this is only possible when getting the correct people by your side. So, South Africans let’s stop trying to DIY and let us rather start growing big businesses.

Visit my website www.marnusbroodryk.com and let’s discuss small businesses and the exciting world of entrepreneurship.

Shark Tank South Africa

Shark Tank South Africa

It is with great excitement that I can reveal that I will be a “Shark” in the locally produced Shark Tank South Africa. The following press release was issued by M-net this week: Read More

Growing your Business

Cloud Applications (KykNET’s Winslyn)

Cloud Applications

Gone are the days where businesses should spend insane amounts of money on good software. The days are counted for desktop applications – a program that you can install on your computer. These programs are expensive to buy and their upkeep is expensive. The solution – cloud applications.

What does this mean? It can be seen as a software program that works via the internet and is not stored on your computer.

This new technology is changing small businesses as we know it and in this insert, I want to share two of these applications with you. It’s affordable, user-friendly and for sure this is the future of small businesses.


The old way of doing this: You get a server that costs you thousands and you need to do the upkeep of the software and hardware yourself.

The new way of doing this: You pay a small amount monthly and your emails are hosted by big companies such as Google or Microsoft. You can use your email from anywhere and you don’t have to worry about losing your data. You can create a professional image of your business within 5 minutes with your own.co.za or .com email address.

The two biggest products are Microsoft Office 365 and Gmail, a monthly subscription of about R70 p/m.

Software which does your accounting

The old way: You install a program on your computer and only you and your employees have access to it, it’s a constant hassle to work with your accountant as your data is all stored on one computer and the programs aren’t user-friendly.

The new way: Everything is online and you can gain access from anywhere if you have an active internet connection. Your accountant can join in anytime and work with your figures. These programs are user-friendly and the average business owner can understand what’s going on with his finances.

These programs have made a lot of things possible. You can make quotations and invoices easily online. You can sync your bank account to the program and every evening the program will automatically process all the transactions. You can automate many processes, you can send out invoices automatically, your debtors will automatically be informed to pay you and many other things.

The most used programs are Sage Pastel’s SageOne and the international program, Xero. Both are great options, SageOne is a cheaper program, whilst Xero is able to integrate with third party applications. Costs vary between R185 – R320 p/m.

I am an accountant myself and I know what a big influence these programs can have on our lives. In a few years, it will definitely be the norm and I will encourage any business owner to start using these programs as soon as possible.

Growing your Business

Financing for SMEs (KykNET’s Winslyn)

Financing for SMEs

Most aspiring entrepreneurs say that they don’t have the capital to start their business. Existing businesses have the same reasoning, no capital, therefore no growth.

For new entrepreneurs, it’s more difficult to get capital. If it’s your first time starting a business, I don’t believe that you need much money. You must start small with very little money and as soon as your business proves itself, you can expand and at that stage there will be more options to get capital.

But what exactly are these options?

Of course, there are banks and financial institutions that offer loans to businesses. Let’s be honest with each other – banks do not give money to small businesses easily and when they do, it’s only when the business or the business owners can provide security.

So in this insert, I want to talk about three ways existing businesses can get financing without having to go to one of the four big banks.

Financing against orders

If you’re doing business with large companies, there are institutions that will advance you money when you receive orders from your customers. They know those orders will be paid for and for that reason they take the risk of borrowing you the money to execute the order. Usually, financing is advanced when you get the order and you have to pay back the money as soon as your client pays you.

Financing against invoices

When you do business, you send invoices to your clients but most of those invoices only get paid after 30 days or more. There are institutions that offer financing options to take over these invoices or (debtors) from you and pay you instantly and then they will get the money from the debtors. They do this for a small percentage of the invoice amount and it can allow businesses to get a large amount of money without a lot of effort, instantly.

Financing against property.

This option is available for businesses or individuals that own property and have equity in the property. What this means is that your building’s value increased after R2m but your mortgage is only R1m. This means that there’s an equity of R1m on the building and some institutions will give you money in advance equal to this equity and they will then use the property as security for it.

Institutions like Rand Trust are one of the largest companies in this trade and they are dedicated to helping SME’s with alternative ways of financing. If you own a good business, there’s no reason as to why you shouldn’t get financing – maybe not at a traditional bank, but there are a variety of other options.

Visit my website at www.marnusbroodryk.com and let’s discuss small businesses and the interesting world of entrepreneurship.


Taxes 101 (KykNET’s Winslyn)

Taxes 101

After the previous insert about how to start up your own business, I was overwhelmed with questions regarding tax, VAT and all of the other laws which apply to small businesses. We then decided to do a 101 about all the basics which a small business must meet in order to stay within the regulations of the law.

  1. Income tax

When should a business register for Income tax?

The answer is simple: Always. It doesn’t matter what the scale of your business is, or whether you’re making money, if you are running a business you must register it with SARS. It is very important to know that you’ll only pay tax if your business is making a profit, but even if you make a loss, you still have to declare the amounts to SARS.

  1. VAT

VAT is another form of tax. A Business with a turnover of more than a million rand per year must register for VAT. Your turnover is your total sales, not just your profit. That means that if your sales are at R80 000 p/m you’ll have to register for VAT, even if you’re not making a profit. The VAT rate in South Africa is 14% at the moment and you’ll pay VAT on all your sales minus your purchases that already have VAT included in the pricing. Sometimes it can get quite technical and an accountant is usually the best person to advise you.

  1. Tax and levies regarding employees

There’s a whole lot of requirements that businesses with employees must comply with. It’s important to realise that if you own a registered company, that you as the owner still work for the company and therefore you also need to comply with the following:

  • Employee tax

As a business, you must deduct the correct amount of tax from your employee’s salaries and pay to SARS. If you don’t do that, the business is responsible for that money. This tax rate varies and can range from 0% to 41%

  • Unemployment Insurance Fund

On a monthly basis 1% must be deducted from your employee’s salaries and the business also pays 1%, this 2% is then paid to SARS or the Department of Labor and will protect your workers if they end up unemployed.

  • Skills Development Levy

This applies to businesses with annual salaries of more than R500k and the charge is 1% on the total monthly salaries. That is also then paid to SARS and can be claimed back by businesses that train their staff and send them for certain courses. Only a few businesses do that and a lot of entrepreneurs only see it as yet another tax.

These are the most important and common laws in which businesses must comply with when it comes to SARS. However, there are a few other like Compensation, BEE and import and export duties –  it is clear that entrepreneurs do not have it easy when it comes to all these regulations. The government does intent to make it easier and lessen these requirements, but until then I will definitely recommend you to pay someone that knows about all of this and to keep you out of jail, so that you can focus on your business.

Visit my website at www.marnusbroodryk.com and let’s discuss small businesses and the interesting world of entrepreneurship.


How to start your business (KykNET’s Winslyn)

How to start your business

For the last 12 years, I have worked with hundreds of small businesses across the world. There are things that work, and then there are things that work even better. My name is Marnus Broodryk and I’m excited to be talking to you over the next few months about what makes a business successful and how to start your own.

The unemployment rate was announced last week and it’s the highest figure since 2008. The economy is struggling, businesses are struggling, people are getting retrenched and this situation is only getting worse.

There is, however, a perfect solution: more people should start small businesses and people are doing just that. It’s a worldwide trend that entrepreneurship is increasing, but the success rate for those entrepreneurs aren’t too great: 9 out of 10 businesses fail within the first 12 months.

We can go on for days about what the government should do differently to help entrepreneurs. And in South Africa I will back the government regarding this, they are trying extremely hard to help small businesses. If you own a small business, have a look at the following:

  • Small business corporation tax – small businesses pay a lot less tax than a normal company and you can save up to R100K p/y.
  • ETI or Employment Tax Incentive – where the government pays small businesses to employ young people.

It sounds complex, but it isn’t and your accountant can help you with this easily.

If you don’t have your own small business yet, but you want to start one, I’d like to help you avoid the biggest mistake most new entrepreneurs make, which is that they want to start off TOO BIG.

New entrepreneurs always say that a lack of capital is holding them back. They dream of a large business with big machinery and a lot of employees. These large things require a lot of money.

If you have to start your business that way, there’s a good chance that you shouldn’t even be in the business world. New entrepreneurs can’t and aren’t allowed to start that way.

You must start small, get your first clients, prove your product/service. Then build up some capital, change your product as you grow and where suitable. Grow organically into a successful business. If you want to expand thereafter, and your business has a good reputation, people will want to invest in you, because you’ve proven that you can do it.

And if you need capital by then?

Let’s be honest about the reality: Banks advertise that they really want to help small businesses. But that’s not true and you’ll never get a loan for a new business. You can get a personal loan or they’ll offer you financing if you have some assets. But banks don’t want to take chances with new entrepreneurs. End of story.

So if you’ve scaled down with your idea, it’s time to raise some money. Save up, use your pension, credit cards, lend money from family, get friends to invest. Do whatever you must, but the bank will only require a business plan and then just let you know that they won’t be giving you money.

Forget the big dreams and start small, try to get enough funds on your own and then you’ll have a better chance of not having a failed business. The world of entrepreneurship is challenging but the reward of freedom and success makes it worthwhile.

Visit my website at www.marnusbroodryk.com and let’s discuss small businesses and the interesting world of entrepreneurship.