Month: July 2025

A review of my blog page topics will quickly give you an accurate indication of my obsession and passion for the lonesome entrepreneur. Waging war on the daily challenges and forging ahead to establish a business and a brand with all kinds of interesting products and services.

  Owning and operating a Small to Medium-Sized Enterprise (SME) is challenging enough; doing so while also generating a profit is rare indeed. In our practice, we encounter businesses across the entire spectrum, ranging from those in desperate need to those that are failing, as well as those that are successful.

  We decided to create a two-part blog series about the traits and tactics needed to run a profitable business in South Africa. A sincere dedication to these warriors we call entrepreneurs! 

  Let's be brutally honest. Running an SME in South Africa isn't for the faint of heart. Owners must juggle a multitude of responsibilities, including sales targets, managing cash flow crises, navigating ever-changing regulations, and competing with intense competition. A one-size-fits-all approach won't work. 

  To not just survive but truly thrive and build a financially resilient business in 2025, you need a sharp edge, and it requires a fundamental shift in one’s thinking and daily operations. 

  In this two-part series, we break down the essential characteristics you need and the concrete actions you must take to boost your income, secure your cash flow, drive sales, and navigate the tax landscape with confidence.

  Think of these as your personal and professional toolkit. Without these, even the best strategies will falter.

  Strap in as they say…


Hyper-Focused Agility & Adaptability

The South African market is dynamic – characterized by load shedding, economic shifts, and policy changes. Successful SMEs don't just react; they anticipate and pivot rapidly. 

  It isn't about changing your core business every week, but about quickly adjusting strategies, service delivery, or even product lines to market demands and unforeseen challenges.
   
  It is a crucial matter, as stagnation means death. The ability to quickly test new ideas, discard what isn't working, and adapt to change keeps you competitive and resilient in the face of market shocks.


Radical Customer-Centricity 

It's no longer enough to offer a good product or service. You need to have a deep understanding of your customers' evolving needs, pain points, and desires. 

  This matter involves proactive feedback loops, personalised communication, and building genuine relationships that foster loyalty. This means taking a genuine interest in your customers and why they support your brand.

  The primary reason behind this critical approach is straightforward: repeat business and word-of-mouth referrals are the lifeblood of SME cash flow.

  In a competitive market, an exceptional customer experience is your strongest differentiator and remains your most effective marketing tool.


Data-Driven Decision Making

Gone are the days of the good old “gut-feel”. Businesses must move beyond mere feelings. 

  Innovative and successful SMEs collect and analyze data, which may include sales trends, customer behavior, marketing campaign performance, and operational costs. 

  While it may sound technical, it doesn't require fancy software; it can begin with simple spreadsheets and cloud-based accounting insights.

  Every decision, from pricing and inventory management to marketing spend and hiring, impacts your financial viability. 

  Data removes guesswork, allowing you to identify what truly drives sales and profitability, as well as where your money is leaking.


Financial Literacy & Discipline - Cash Flow's Best Friend

You require a deep understanding of your profit and loss statement, balance sheet, and, critically, your cash flow. Proactive budgeting, meticulous expense tracking, timely invoicing, and disciplined debt collection have become must-haves.

  Cash flow problems are the leading cause of death for more SMEs than any other factor. 

  Mastery of your finances enables you to make informed investment decisions, manage liquidity crises effectively, and accurately forecast your ability to meet obligations and capitalize on opportunities.


Resourcefulness & Creative Problem-Solving

Become the ultimate "plan B" generator. Load shedding? How can you maintain operations? Supplier issues? Who are your backups? Economic downturn? What innovative solutions can you offer? 

  Learn how to see obstacles as challenges to be creatively overcome, often (perhaps always) with limited resources.

  The South African business landscape is riddled with curveballs. Your ability to find creative solutions to immediate problems directly impacts operational continuity, preventing minor issues from snowballing into financial disasters.

  Tap into your inner beast mode, as they say!



CONCLUSION

The landscape for SMEs remains challenging, but it's also ripe with opportunity for those who are innovative, agile, and proactive. 

  It's not always about working harder, but working smarter. 

  By embodying these characteristics and consistently implementing these actions, you'll not only secure your business's viability but truly position it for competitive growth and increased profitability. 

  Stop surviving, start thriving!



For any assistance with critical business decisions, tax queries, analyzing your financial data, or for any accounting-related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. 

You can also send us an email at myrtleo@mbasa.org for more information.

Someone asked me a thought-provoking question a few weeks ago: “If you could give only one piece of advice to anyone starting out in business today, what would it be”?

  Naturally, I had to think about this for a moment as quite a lot of meaningful things came to mind. Considering I was only permitted a single piece of advice, I answered as follows: “Just pay your taxes!”. 

  The person looked perplexed. 

  Let me explain, I said…


YOU WILL NEVER CATCH UP

If you don’t pay your taxes, you are going to get caught out at some point; it’s as simple as that. And once those unpaid taxes start snowballing, catching up will be costly and highly stressful. 

  Trust me when I say this - you can never get the time back, and unpaid taxes leave you in a wake of a cash flow nightmare, which just gets worse once penalties start rolling in.

  To pay your taxes, your business needs to operate according to specific financial principles, and this requires a decision from you, from the start, not to run after shortcuts or even worse, trying to outplay the system.

  Pay your taxes, but use professionals to help you.


USE PROFESSIONALS - ALWAYS!

Regular readers of my blogs will know that I am a stickler for using the right professionals when you require specialized (financial, legal, property, healthcare, etc) advice.

  Your old varsity buddy might have been the life of the dorm back in the day, but might not be the best when making life-changing business decisions!

  Pay professionals to give you the right advice. Find yourself a registered tax practitioner, and discuss the optimal tax structure for your business with someone who knows the tax laws.

  The same applies to other areas, such as funding, accounting, and legal issues. It pays to pay!


IGNORANCE IS NOT AN EXCUSE

It doesn’t matter how you turn the tables; in the end, all accountability in your business stops with you. You remain responsible for all aspects of your business, and while you can claim ignorance as to who the 12th president of the United States was, you can’t say the same for your business.

  It’s your job to know, and it can never be passed down to someone else, even if they are the MD or CEO.

  As long as your name appears at the top or the bottom of the letterhead, you have no excuses and you are accountable. 

  Make sure you know what’s going on in your business at all times!


YOU HAVE RIGHTS, BUT IT’S YOUR JOB TO KNOW THEM

It is of utmost importance that you know what you are permitted to do. I am not just referring to finances and taxes; I also mean in the broader sense of the word.  Specifically, your rights and obligations that are required within your sector or type of business.

  For example, let’s say you are a plumber. Your consumers will expect, at the very least, that you know what the local laws and bylaws state about drainage pipe sizes or geyser installations. 

  Similarly, as a business owner, you have certain legal and financial obligations, such as paying income tax. While you may not know all the different calculations and concessions, you should know, at the very least, what income tax is and that it is payable.

  Of course, no one expects you to know it all, but that’s no excuse for not knowing your rights, even if it's just high-level rights for a start.


DO THINGS RIGHT - FROM THE START

It’s tempting to be baited into believing stories of fantastical tax reductions, all while paying lower fees. My advice? Beware the charlatans among us!

  If you have a successful business and you have a high turnover, you will be paying significantly higher amounts of tax. All the more reason to set your business up in the right, most optimal way. This requires knowledge of our tax and commerce laws, professional experience, and most importantly, accountability towards a profession.

  The allure of tax savings is usually not worth the pain in the long run. Just do the right thing from the start - it's so much easier, so much less complicated, and you will sleep a whole lot better at night. 

  This is a crucial point to keep in mind.


IN CLOSING

If you’ve read this far, I'm guessing I've made a few points that resonated with you. 

  The main reason I wanted to write this article was that I have an extraordinary compassion for the lone business owner. This entrepreneur fights to stay alive, pay bills, pay staff, and try to prosper each day.

  All of my points above come down to an important point, which is this: Unlike Cher’s 1989 hit, we can’t turn back time!

  If you’ve been in business for several years and end up with a severe tax backlog because you thought you'd catch up later, I'm here to tell you, you won’t.

  Time passed, like revenue, is time gone. It’s just best to do the right thing in your business, from the start.

  It takes a long time to become good at what you do in your business. It takes years of working your way through some rugged terrain and many unforeseen troubles. And many companies perish along the way.

  If you can manage to keep going and stay afloat, please don’t throw away all that hard work!


For any assistance with critical business decisions, tax queries, analyzing your financial data, or for any accounting-related services you may require, please take a look at our comprehensive portfolio of services or call us on +27 82 561 7024. 

You can also send us an email at myrtleo@mbasa.org for more information.