A Business Strategy to Turn a Dreadful Year into a Success

This year has been tough for everyone, and there are just 12 weeks left before world of business winds up for 2017. There is, however, still time to accelerate your sales efforts and grow your business before the year ends. OnThe Money Show with Bruce Whitfield,we outlined an effective business strategy that helps entrepreneurs fast-track their way to success, before the year ends:

Critical strategies to future-proof your business

Even for established businesses, it’s not easy to make sure that you will be ready for whatever might happen in the future. Your company needs to constantly evolve, and you might find yourself in uncharted waters. So you have found your place in the market but how do you keep it? Complacency is a killer. How do you keep your business on its toes to build for resilience and business growth?

Grow your ideas with business innovation

South Africa is lagging behind when it comes to innovation, according to a recent World Bank report. But why is innovation so necessary for business?We need to empower more people to participate in the economy, and innovation is necessary to create opportunities and stimulate growth. There is also a close correlation between levels of innovation and new venture start-ups. The more a country supports new venture creation and small business the greater the rate of diffusion of innovations in that country. Innovation can also be leveraged to improve business processes to save on costs or increase the value that's being provided to clients, and innovation can also be applied to augment client user experiences or even to better manage business risks.

How effective business systems can ready your business for sale

People sell their businesses for many reasons. Fatigue from too many years in the game is one of the most common. They might also choose to sell their business when they reach retirement age or fall ill and cannot work in it any more. Sometimes, increased competition drives them out of the market. Some business owners start their businesses with a planned sale in mind. Whatever your reasons, nothing can prepare you for the setback when you find that you can’t actually sell your business. That’s why it’s important to understand the factors that prevent your business from attracting buyers and how to bounce back and grow your business into an Asset of Value.

Factors that stall a sale

Buyers usually hesitate to close deals because they don’t see the value in the business they’re being offered. Many factors contribute to this, but the main ones are:

  1. The business is too dependent on the owner – If a business relies on its owner to operate at its best, it’s not an attractive purchase for buyers because they cannot buy the owner with the business. The same can be said if the business is too dependent on one employee, client or supplier.

  2. Buyers can’t identify any growth opportunities – Buyers are attracted to the future potential of the business and not just what the business can achieve now. In this case, value is shown by presenting convincing growth opportunities. These could be new locations for the business, other companies the business can buy out or new markets that the business can unlock. Anything which proves that the growth of the business won’t slow down or stop.  

  3. The business is too similar to its competitors – Businesses that aren’t differentiated enough can only compete on price. The lower the price, the less cash is left over to grow the business.  

  4. There isn’t enough free cash – Free cash is what’s left behind after working capital is spent. It’s a good measure of a business’s performance because it shows stakeholders and potential buyers how much money the business can dedicate towards growth.

  5. Legal issues – If you or your business are tied up in any legal disputes that could affect the business financially, there’s a slim chance of selling the business before all the legal issues are resolved.

Aurik nurtures your business for a sale

We work hand-in-hand with you to grow your business into an Asset of Value through careful analysis, focused goal-setting and sound business systems. A partnership with Aurik ensures that your business has a firm foundation from which to grow and expand.

We will collaborate with you and identify who your ideal customer is and how best to position your business so you can serve them optimally. This is supported by targeted and persistent marketing strategies and airtight business systems.

Aurik works with you to establish long-term value in your business. We want your business’s true value to show clearly in its processes, structures and operations – not in who owns it.

Would you like to have your pick of buyers when you’re ready to sell? Aurik can assist. Let us work with you to build your business into an Asset of Value and devise an effective exit strategy.

How to start a business (or your career) from nothing

My recent meetings with people across the country have revealed that we have so much human potential, and yet such low morale. Fatigued by empty promises from government and business, people – especially the poor – are exhausted by their efforts to make ends meet. The toughest question posed to me was: “How can I start a business, or a career, if I come from nothing, and have nothing?” This week, onThe Money Show with Bruce Whitfield, I set out to answer that question, by adopting an entrepreneurial approach.

Learning Resilience, to Build your Business during Tough Times

Simply reading the news headlines can be downright distressing, and government’s lack of adequate response towards corruption can leave us feeling hopeless. As business owners and active citizens, however, it’s vital to learn and build resilience, so we can survive – and thrive beyond – the tough times. Now’s the time to build your business in new ways, but to do that you’ll need to learn to stay resilient, no matter how tough the economic environment. On this week’sThe Money Show with Bruce Whitfield, we laid out a plan for building resilience within yourself, and your business:

Play to your strengths – how the epic Mayweather-McGregor fight can take your business to the next level

Undefeated welterweight world champion Floyd Mayweather Jnr met mixed martial arts world champion Conor McGregor in Las Vegas for the bout titled “The Money Fight”. The fight surpassed the all-time pay-per-view record with 6 500 000 buys. Mayweather reportedly earned more than R4 billion from the fight and McGregor took home R1.3 billion. The winner stuck to his game while McGregor went into an area where his investment in time, training and practice were only 30% relevant.

Aurik’s CEO, Pavlo Phitidis says the fight between Floyd Mayweather and Conor McGregor has a number of lessons for small business owners. Let’s take a look at this exciting showdown and what we as entrepreneurs can take away from this.

What Entrepreneurial Opportunities Await in 2018?

The tumultuous events of 2017 have already shaped the entrepreneurial opportunities for 2018. The innovators respond first, and then the thinkers and actors catch on. Soon thereafter, the early adopters are hopping on and, before you know it, the legislators and regulators are taking notice. Look at cryptocurrencies as an example! Big businesses, bound by bureaucracy and legacy systems, too much comfort and layers of fragmented communication mostly follow last. And, of course, these waves of incredible change are propelled by our always-on, instant media universe that has become an essential part of our daily lives. Set yourself up to be one of the first to act on entrepreneurial opportunities that arise in 2018, and you’ll have a winning business in your sector by the end of the year. On this week’s The Money Show with Bruce Whitfield, we considered four big trends from 2017, and the momentum behind them:

What to do when you’ve made the wrong investment for business growth

Earlier this week, the South African Minister of Finance presented the Medium-term Budget, and the news was somewhat disheartening. Government’s plan to dispose of some of its well-performing shares in Telkom, to offset its recapitalisation of South African Airways and the South African Post Office, is just bad planning. It’s akin to avid entrepreneurs who believe wholeheartedly in their business, but can’t let go of investing time and money into a bad idea, no matter the consequences. Time and money are finite resources, and pouring them into a bad investment can destroy your business. On this week’sThe Money Show, we looked at how you can hit the brakes on a bad investment and start making the right type of investment for business growth: