Creating an accurate , workable plan and budget allows a business to get the money it needs from finance, keep track of it with accounting and human resources, and succeed. You can only succeed with a good budget and it will also help the bottom line of any business.
Choosing where to start.
There are two basic starting points for any budget. You can look either at what you did before (historical stats) or what you are planning to do. In the first option you review a prior year or years and then make changes where you think the future will be different from the past. In the second option, you look at a written plan of what you are going to do and ask: ” What will we need to buy”? or “How much money will we have to spend:?. To make a really good budget, it’s best to look at the budget both ways.
The first job is to gather accurate information about the past. This is not always easy. Sometimes records are not kept well. Often, we need to project next year’s budget before this year is over or before the information on this year’s expenses is ready.
Understanding each line.
Preparing a good budget is detail work. You need to do more than say:” I guess we’ll spend the same next year”. You need to know why you spent waht you did and also think about what will change. So, you examine each line and, using your own memory, meetings with others, and reviews of receipts and contracts and understand why you spent what you did.
Predicting the future.
Unless you have a crystal ball, the best way to predict the future is to picture it, meet with people about what they want and what’s happening, and then make an estimated or calculated guess. Your guess will be the best one possible because it’s based on good information, your own experience, careful thinking and accurate calculation. Reasonable and calculated guesses are the best we can do for budgeting.
Reviewing the results.
It is time to ask ourselves some questions before we finish up the budget:
Does it make sense? – For each item, do the numbers look right. Think about the decision you’ve made and then make sure that you comfortable with it. If not, get another opinion or rethink.
Does it add up? – Even if you use a computerized spreadsheet, you’ll want to check you numbers.
Are the big items right? – Pay more attention to the line items with higher figures.
Checking your work.
You need to do more than checking numbers. Capitalization, spelling, punctuation, and grammar are also important. It never hurts to take a few extra minutes to make a document look good with stylish, professional fonts and formatting.
What makes a good budget?
1. It’s written clearly, so that anyone can understand it.
2. It is based on good information from customers and own experience.
3. It is started with last year’s actual expenses, with some planning for the coming year.
4. Research of the most important items and some good management choices i.e buying a old copier.
NEED ANY HELP WITH PREPARING YOUR BUDGET CONTACT US NOW AT : (27) 84 583 3143 OR email@example.com
More than 28% of businesses fail because of poor financial management that includes keeping poor financial records. Therefore, it is essential for every business owner not only to understand the key financial metrics, but also to understand what they can tell you and how to monitor them on an ongoing basis.
There are a number of metrics that every business owner should know and these include:
Net Profit; and
Cash Burn rate.
Accounts Payable is the total of bills that you have to pay, but not paid as yet. This is a business short – term debt that must be paid. It is important to track this metric so as to manage cash flow.
Accounts receivable is money that is owed to a business by their customers for products/services sold or rendered to them. Encouraging customers to pay invoices faster will decrease your chance of getting into a “cash crunch”.
Directs costs – also known as (c.o.g.s) cost of goods sold – are the costs attributed to the productions of a specific product or service. Direct costs are subtracted from revenue/income to calculate the gross margin of a business.
Cash Flow measures the money – the actual money moving in and out of your bank account. The most important thing to know about cash flow is that it isn’t “profit”.
This shows how good a business is at generating income from normal operations of the business.
This is operating income minus taxes and interest. It is the bottom line of your business and the net profit left over after all expenses paid.
Cash Burn Rate
The cash burn rate is the rate at which a business uses up its cash reserves or cash balance. This metric will show how you’re maintaining a healthy balance from a positive cash flow.
DO YOU NEED HELP IN ANY OF THE ABOVE OR RUNNING A SUCCESSFUL BUSINESS CONTACT US NOW – (27) 84 583 3143 OR EMAIL US AT firstname.lastname@example.org
Macadamia nuts are quickly becoming an important crop in South Africa and are possible the fastest growing tree crop industry in the country.
The volume of Macadamia nuts exported has grown tremendously over the past few years and is expected to increase in the future. South Africa is tapping into new markets in China and Hong Kong. A number major growers have already received accreditation for Global GAP and the rest of the industry is aware of the need to follow fast in their footsteps. Worldwide demand for Macadamia nuts exceeds supply and the market is expected to even grow further. The use of Macadamia nuts in as an ingredient in confectionery and baking presents a huge opportunity.
Macadamia nuts are hard to beat when it comes to the most lucrative crop per land area used in South Africa. According to statistics from the SA Macadamia Growers Association (SAMAC), the average export price for macadamia kernels in 2017 was R224.15/kg. The price for nuts in a shell was an average of R75.58/kg.
A single mature macadamia tree can produce anything from 16 kilograms to 32 kilogram of nuts in the shell depending on the variety. That is a yield of R1200 per tree – at a minimum. At around 312 trees per hectare, that should deliver R374 400 per hectare.
Apart from the land and housing you will also need money for the following:-
* trees, land preparation and tree establishment;
* a shed for storage, post harvest handling and drying;
* an irrigation system including piping and under-tree sprinklers;
* a tractor – about 90hp;
* a slasher;
* a trailer: and
* a boom sprayer for herbicides.
Macadamias grow on a a wide range of free-draining soils but perform best on deep, well-drained soils, rich in organic matter. For successful commercial production, a minimum depth of 0,5m of friable, well-drained soil is essential. A depth of 1m is preferred, as this minimizes the risk from trunk canker disease and tree decline. However, be aware that extremely well-drained spoils may be a problem in drought years, if not irrigated. Avoid soils with heavy clay or rock bars within 1m of the surface.
Protection from strong winds is desirable, either through natural forest surrounds or planted windbreaks. Macadamia trees are brittle and breakages occur easily, particular during storms in highly exposed sites. Wind can also slow growth in young trees and may cause premature fall of young, immature nuts.
As macadamias are highly susceptible to fire damage, take the fire risk of surrounding bush-land into account when purchasing land. This can be minimized by preventing the build up of long grass in dry years.
CONTACT US NOW IF YOU NEED HELP IN THIS AREA OR WITH A PROFESSIONAL FARMING BUSINESS PLAN.
(27) 11 704 1248 or (27)84 683 3143 or email@example.com
PEST is an acronym for:
P – Political;
E – Economic;
S – Social; and
T – Technological.
All external factors that commonly effect business activities and performance.
Political – Government regulations and legal issues affect a company’s ability to be profitable and successful and this factor looks at how that can happen.
Economic – This factor examines thee outside economic issues that can play a role in a company’s success. Items to consider include inflation, interest rates, economic growth, unemployment etc.
Social – The Social factor analyzes the demographic and cultural aspects of the company’s market. Items to consider include demographics, population growth, age distribution etc.
Technological – Technology issues affect how an organization delivers its product or service to the marketplace. Items to consider include current technology, role of the internet, technology changes etc.
A PEST Analysis scans only the external environment while the internal environment is completely ignored. For the PEST Analysis to be worthwhile it should be used in conjunction with a SWOT Analysis – Strengths, Weaknesses, Opportunities and Threats.
Why is a PEST Analysis important?
Because these can influence marketing and relationships that a company has worked hard to develop. Knowing ahead of time that a change may occurring will help making better business decisions.
A PEST Analysis guides us to identify effective strategies for setting priorities, allocating resources, planning for time and development roadmap, and formulating control mechanisms. With this analysis, a business owner can identify potential opportunities and threats associated with their strategies and figure out ways to take advantage of them and/or avoid them totally.
DO YOU NEED ANY HELP WITH A PROFESSIONAL PEST ANALYSIS CONTACT US NOW AT – (27) 84 583 3143 OR firstname.lastname@example.org
Soybean production surpassed sunflower in 2012, becoming the country’s most important oil-seed crop (BFAP 2016). Soybeans are mainly cultivated under dry-land conditions., and grown primarily in Mpumalanga and the Free State. Over two-thirds of the country’s soybeans is grown here (DAFF 2015), KZN and Limpopo are also significant soy bean growers, followed by the North West and Gauteng.
Depending upon local conditions, soybeans are typically planted in November through December. The plants react to day/night length ratios which stimulate the reproduction process. Planting in January will result in a shorter plant with lower harvest potential, as the days shorten during growth. On ripening, the leaves turn yellow and the moisture content of the seeds drops – from about 65% to 14% within 14 days – given that the weather is dry and hot
REASONS FOR SOYBEAN GROWING:
Diversification away from maize.
The growing animal – feed demand.
Growing production of soy-food.
Bio-diesel plant from soybeans.
Soybeans is one of a few crops that can be planted in rotation with wheat to ensure two crops per annum.
Crop rotation benefits include increased yields for both crops, and simplified weed and pest control.
Since South Africa has to import soy, marketing is not a problem.
Rainfall of 500 to 900mm is required for better yields and better seed quality, depending on growth condition. Soya beans are susceptible to drought during the flowering and pod formation stages. They can also do well in warm, dry areas under irrigation.Excessive rainfall prior to and during flowering can result in luxuriant growth and increased lodging. Water logged conditions have a negative effect on the crop yield.
Deep, well-drained soil with a fine but firm seedbed that is high in fertility and has good water-holding capacity is needed for good soya bean yields. Soya beans are better adapted to soil types with a lower pH lower than 5.2 impedes nitrogen fixation. Compacted soils should be avoided because the hypocotyl of the soya bean breaks easily during emergence if under pressure. It is preferable to plant in moist soil.
There is a growing interest in soya products in South Africa because of the health benefits attached to them. Soya bean consumption in the country is estimated at 25% for oil and oil cake, 60% for animal feed and 20% for human consumption. The marketing of soya beans has moved away from single-channel marketing to a free market system. The system complies with a free marketing economy, where the producer markets has his own product to his own advantage.
The local price of soya beans is derived from world price levels of oil seed products and if a net local deficit applies, large quantities of these products must be imported. The largest price determinant, however, is the international price level of oil and oil cake. Because of the fluctuation of world prices, one can expect the trading of locally produced oil seeds to be increasingly linked to international prices. The bio-fuel industry will also open doors for the soya bean market.
Food security concerns and the growing global population are particularly highlighted as the main soy bean development agenda. Soy beans present farmers a cover crop that could assist in reducing soil erosion, improving soil fertility as well as diversifying income opportunity and food resources.
CONTACT US NOW IF YOU NEED HELP IN THIS AREA OR A PROFESSIONAL, BANKABLE FARMING BUSINESS PLAN – (27)84 583 3143 OR email@example.com
Thinking about setting up a business?
We have the know how to get you going!