BUSINESS RESCUE CHAPTER 6 OF THE COMPANIES ACT OF 2008 OF SOUTH AFRICA “A NECESSARY EVIL OR BRILLIANT BUSINESS?” Author: Tiaan Geel BA(SA), M.B.A Experienced Business Rescue Practitioner 1. INTRODUCTION Business Rescue is a relatively new term in the South African legal landscape having only been effectively adopted in April 2011. Although the process is still in its infant years in terms of our judicial system, it has been the cause of tremendous joy as well as probably ten times the amount of anger, fear and utter frustration. The reasons for this anger, fear and frustration stem from the fact that everyone in South Africa is still not an expert on Chapter 6 nor its true potential. It is pretty much a trial and error approach by each BRP during the execution of the Business Rescue Process, determining what the business in distress needs, what is allowed in terms of the Act and what the stakeholders would
The 15th December usually signals to us that end of the year trade is imminent. As business owners we get anxious as we know: business will be slow over the last few days of December; bonuses and holiday pay are expected by employees; and we have to pay our suppliers on time. Now the big question is, have you prepared for the January financial slump? Business will be slow in end December and beginning of January so that means that your turnover will be less and the money coming in during the month will be less than the previous months. Now is the time to start preparing your business to have sufficient cash available to ensure that you can pay all your commitments on time. It is important not to tie cash up in either your stock or debtors. Reduce your stock holding as much as possible, try and keep only the items that
So, you want to grow your business? Which route do you take? The decision to grow a business is a very exciting one indeed and should be the goal of every entrepreneur. The choice of which process to follow is not an easy one though as there are a few processes one can take. At the end of the day, it is your decision as the business owner to decide on the correct action, but getting external advice is always the best. A business consultant can give you an objective opinion without any emotional attachment to the decision. If you are not happy with just one opinion, then get another. You can even get 5 opinions, but the important part is to make sure which route will be best as there might not be any chance for turning back. Here are the different options you can choose from: 1. Open another
As a business owner of a small or medium sized entity, there is an important aspect to running and operating your business that many do not realise: We don’t always know what is best for our business. This might sound like a strange statement to make, but the harsh reality is that no-one knows everything there is to know about business. Not even Richard Branson does, which is why he has a team of consultants helping him.
Do you think it’s time to get a business consultant to assist your business?Well, there are a few things you need to consider first and it starts with one question: what are the functions of a business consultant? There are many aspects to inspect in any business, but there are two critical elements that a consultant must look at for your business. These two elements are:
- how to maximize your profit and,
- how to increase your
It is every start-up Entrepreneur’s dream to get to the point of expanding their business. That point where they think: now it’s time to open a new branch or time to purchase another business. The choice of which process to follow is not an easy choice, but the key identifiers to look for to see whether your business is ready to expand is a bit easier to identify. I hope you can identify a few of them already! 1. You get business from outside your usual or target market. When you start receiving an increased amount of business from outside of your usual or target market, then you should know it is time to grow or expand your business. It is very important for you to know who your target market or your usual market is. Once you start receiving leads and business from outside of your usual geographical region you service then you
The world is still reveling and quibbling at the same time about the new administration in the White House. Donald Trump is by no means an unquestionable character, but he is the newly democratically voted president of America, as voted for by the people. During his first 60 days he rattled the whole world, latest of which being the immigrants wishing to enter the good ol’ United States of America. Now you might wonder and ask yourself, why another politically motivated blog post? We see so many of them. Yes, indeed we do, but this post brings this political theme to the business world and more specifically – straight to your business!
Be Authentic in BusinessSam always tells me – “Tiaan, please stay away from any political, racial and religious topics when you write blog posts”. While she might have a good point there, I just love controversial topics. I can’t stay away from
Business Growth Tips: #43 We have all been there. Sitting with a big decision to be made and we just don’t know whether the choice we are making is the best or right one. Every day as a Business Strategist I make decisions on behalf of my customers. Many times, it happens that I do not have the necessary info at hand and make decisions "blindly" as some might call it. I often have to ask for assistance as I know that I do not have all the answers to all business problems. As a Professional I realise that there are people I can trust to assist me, ones that always give me a new angle from which to look at a tough decision. It is an unfortunate belief, especially with South Africans, that a Business Owner or Entrepreneur should know it all, have it all, be it all and be the greatest business
I bet you read the topic of this blog and thought, boy, what a contradiction. You probably also thought: “Yeah right genius, it is the end. Closing a business IS the end”. Well, it is the end for that specific business, yes. But is it the end of your career as an entrepreneur? Sir Richard Branson certainly does not think so after 15 failures. Is it the end of your creative journey? No, you just need to come up with a different angle on your business idea. This time you have a chance to start over while knowing the pitfalls and dangers. Let’s be real for a second though, closing a business is not easy. In my job of saving companies, this is the exact opposite of what I am trying to achieve. Sometimes, things just don’t work out. Sometimes, you have to explain to your staff members that they do not have
The aim of running a business is to make a profit, otherwise it would be a charity. It happens at least once in every entrepreneur's lifetime that their business runs at a loss. This means that their business is not profitable and is obviously not a good situation to be in. It is now time for a Business Turnaround. The question begs "how do I turn this situation around?". Now every entrepreneur knows a specific field or industry very well and has specific skills. But not all entrepreneurs have the skills to turn a business around from a loss-making operation to a profitable entity. However, all entrepreneurs can implement an effective turnaround in a few simple steps: Step 1: Take a step back and shift your focus. As the owner of the business or the entrepreneur, it is your duty to ensure that the business as a whole is a success. It is your