Today I decided not to write a blog based on a specific topic however some useful pointers you may find useful in your business.
1. How much do I pay my first employee?
This question have re-surfaced many times during consultations with entrepreneurs. There is no straight answer to this. My usual response is that, as a small business owner you need to first know that you have limited resources to be able to pay what is called “market pay”. This mean you will also have a limitation in hiring people with vast experience in the industry. This right here requires you to decide with a very sober mind. Because a salary also affect the business cash flow. If you believe in skill transfer, I suggest that you hire individuals at a junior level with hope of giving them an extensive training on the job. Salaries are continuous expenses thus to uphold the integrity of your business please make sure that you pay employees what is due to them and pay them on time.
2. Register employees for statutory employee benefits
As a build up to the previous point, upholding the business integrity also includes registering employees for the basic statutory employee benefits such as UIF, PAYE (if employees are above the required threshold), COIDA, etc. This is simply because it is the right thing to do. Employees also require some assurance that they are not working for a “fly by night” type of a company. They will also be proud to work for a professional company that complies with labour laws.
3. What do you need to grow your company?
I have been recently asked this question. What better way to give a response from my own experience! There is a cliche saying that it is often used in business “Work on your business not in your business”.
As the leader of your business, you are responsible for spotting problems and delegating solutions. You are responsible for setting goals and thinking about the future. The only person in your company who will be genuinely motivated to grow your company is you. Every minute that you spend working on tasks that can be delegated is a minute that you are not planning, strategizing and building the best business possible.
This is why it’s important to work on your business, not in your business. I refer to myself as the sales person in my business. My key role is to supervise, train staff and bring more clients to the business.
I hope the above helps. Happy trading!
Compiled by Ms. Dikeledi Seoloane. Dikeledi is a registered accountant and tax practitioner. Founder and MD of an accounting firm Matsobanemetja Business Consulting (Pty) Ltd
Matsobanemetja Business Consulting Pty Ltd 