Month: December 2024

It’s that time of the year where everyone is scrambling to finish off a few last bits and pieces before taking some well deserved time off. I am no fan of longwinded year-end speeches, syrupy festive season letters or bought-in-bulk Christmas cards, so I will be brief in this final blog post for 2024.

 Besides being busy navigating the end-of-year madness, I also took the time to review and reflect on what exactly it took during 2024 to maintain a successful business enterprise. How did they remain competitive and profitable during this challenging year?

 To be clear, I am not bragging with my contributions as a professional accountant (although I would like to believe I was able to at least some value of course), but what I am aiming for in this article is to define what I believe made all the difference in helping those marvelous business owners and executives successfully sail the stormy seas of our current global economic ocean.

 So, without any further ado, let me give you my run-down on the top 5 most important lessons I learnt and noticed this past year:

1. You can’t win it, if you’re not in it!

A business, like any serious endeavor or project, requires your full attention and effort. You are either committed to your business, or you’re not. It’s really that simple. Why? Because when things start to go wrong, like they tend to do, you need to be willing and prepared to throw yourself completely into making it work, and this demands a committed focus.

 Practically everyone of the businesses where owners and or directors were kind of in the business, but kind of not exactly, failed. The wise words of Ron Swanson comes to mind here…Do it, or don’t, but, don’t come with half measure as it simply won’t do when things get rough. The same goes for your fellow board members or shareholders. 

Be serious about the business enterprise, or get out.

2. Like the seasons, businesses run in cycles

There will be times when things boom in your business, and there will be times that things slow down. Those business owners that keep a close eye on the micro and macro changes in their industry and sector are always better prepared to adapt and make the changes needed. 

 During Covid, for example, the enterprises that managed to adapt to the online work environment managed to survive and keep their doors open. Yes, they did lose some revenue but their skill in re-structuring their teams and business processes kept them afloat long enough that they could survive well into a new cycle. 

Learn how to read the seasons and cycles in your business.

3. It’s now or never!

Timing is everything, I am reminded of that breathtaking scene in Braveheart where William Wallace goes into battle with the cavalry of the enemy. There is a sense of truth in knowing when to hold and when to act. But, once it is clear that action is needed - then take it, and take it quick! 

 When a specific action is needed don’t waste time. This might include removing someone from office, changing suppliers, ending an agreement etc. Those enterprises I see in action are most successful when they don’t avoid making tough decisions or taking quick action. 

Review the facts, list your options, make a decision and take action. 

4. Clothes don’t maketh the man

Don’t ever confuse luxury and flash with being effective and on top of things. I have bear witness to expensive corporate gigs being whipped in line by small and mediocre business operations purely because the smaller guys focused on the right things and ran a tight ship.

 There’s the old joke about two lawyers going to court. Who wins the case? The lawyer with the best paper trail. This is as close to truth as dammit is to a swear word. Run a tight admin ship - always. Make sure you keep those important emails, follow-up in writing, check every clause in your soon to be signed agreement, if you make changes to any commercial terms get it in writing and make sure all the key parties signed and authorised it. 

Focus on being better, not just looking your best. Small and effective beats flashy and incompetent every time.

5. Pick your corner carefully

Please, pretty please, your high-school buddy was your best friend in school, and although your mom makes a mean Biryani, you need professional advice when making important business decisions. While we all want our closest friends and family to give us their view on things, there are times you need to bring in professional people to give you the lay of the land.

 Pick your corner carefully. Don’t try to save yourself a buck or two by talking to Uncle Vinny who once had a panelbeating business (no swipe intended to anyone owning or running a panelbeating business, just to be clear). Speak to people who possess the required qualifications, work within the professional frameworks and are members of the industry regulatory bodies. Professionals such as accountants, lawyers, dr’s, engineers etc are required by law to undergo continuous professional development (CPD) programs presented by their professional bodies.

Speak to competent and qualified professionals. Always.

Closing Remarks

As I wrap up this post, and soon my office, please grant me the opportunity, from all of us here at Certified Master Accountants (Cape Town), to wish you and your teams a fun-filled Festive Season and a most prosperous 2025.

 We look forward to continuing to be of service to you and your tenacious business enterprises. Thank you most kindly for all the support we received from you this past year and for the privilege to work with you. 

 See you all in the New Year, and please, take a break!