It is no secret that business by itself is a gamble and no one understands that better than entrepreneurs. In fact, if you think about it, successful entrepreneurs and top card players do have a lot in common. Both take risks, call bluffs and consider the timing of every move to be the most important factor in ensuring success.
Add in the all-important role of luck in both business and gambling and we can further reinstate the point that entrepreneurship might be even closer to actual gambling than one may imagine.
The Love of Risk
Entrepreneurs have a lot of investors to answer to and gamblers put what they own on the line to win more. It doesn’t matter how well you play the game or how safe your business plan is, there’s always an element of risk involved.
Usually, the more profitable a win is, the bigger the stakes get, and you can rest assured that all the successful entrepreneurs (and gamblers) in the world have taken quite a few big risks in their lives. With so many gambling apps for Android users being available now, anyone can bet as much as they want to, right from their smartphones or tablets.
Be careful with your money though, and if you start winning after a bit of practice with the free online casino bonuses, it’s pretty likely that you will probably call some good shots in your future business endeavours as well.
Information is Everything
Unless you are a really bad one, no gambler would be betting on horses they have no idea about. They will get to know the odds, talk to the jockeys, stable hands and just about anyone who might have any information on a race before making their bet.
Similarly, no entrepreneur will risk investments, resources and efforts until and unless they have sufficient and reliable information to support what they are doing. The risk will still be there, but the successful ones only take calculated risks.
Good with Money
It may seem counterintuitive to consider a gambler to be someone who is good with his/her money but in truth, all successful gamblers are excellent money managers.
“Successful” is the keyword here as we are not talking about the people who don’t know when to stop. The good gambler knows how to take calculated risks and multiply the money he/she already has. Sure, they lose money all the time, but in most cases, they win even more.
On the other hand, an entrepreneur has to be good with money by default because he/she is in the business of making money work and multiply.
Money and the management of other resources is one of the essential skills of the entrepreneur and that is once again where the gambler and the businessman share traits.
Have you ever wondered why people gamble? Sure, it’s because they want to win but that’s not all, not quite. Gambling is often associated with giving off a sense of thrill that cannot be matched by anything else.
It’s similar to what a surfer experiences on top of the waves, or what a sportsman feels in the middle of the field. In business, the thrill is not much different either as the thrill of taking successful risks is what drives the entrepreneur forward.
Now that you know about the traits successful businessmen and gamblers share with each other, it should come as no surprise that some of the most successful entrepreneurs are also some of the biggest gamblers of all time. The traits of the successful are similar, so it makes sense as to why this is so.
Investing In Value Creation Tools Can Help Your Business Grow
ACCA on attracting new clients, establishing and strengthening commercial partnerships and accessing external finance to help your business expand.
The business journey of many SMEs is often characterised by a gradual change in internal management practices which develop as the business operations grow. The subsequent recognition of the business’s value creation, across all its operations – tends to emerge slowly but surely alongside this process.
Gaining an understanding of ongoing value creation can be challenging. This is because smaller companies tend to not have access to simple and understandable data sets on everything, which is and isn’t contributing to value across the business.
For example, customer and supplier relationships, human capital and intellectual property are all common examples of activities where SMEs regularly experience difficulties in determining the real contribution to the businesses’ overall value. These are areas that are not picked up by financial reports that are a focal point of many growing businesses, hence the importance of these areas in business is not given the proper attention it deserves.
However, by improving trust and relationships between customers and those along your supply chain, this information can be used to attract new clients, establish and strengthen commercial partnerships and access external finance to help your business expand.
Key actions to consider when capturing the value within your business include the following:
- Use cloud and data analytics technology to support growth;
- Create a business strategy which incorporates everything;
- Allow staff to use new technologies to innovate; and
- Appreciate the importance of technology in attracting external finance.
These actions will help you succeed in developing a successful business strategy.
Use cloud and data analytics technology to support growth
Purchasing relevant software packages could help you access the data you need to understand where and when value is being created. Cloud and data analytics technology can provide a real-time flow of information, offering detailed measures across workflows, whilst also complementing existing reporting processes.
More long term, this technology can provide you with greater flexibility when anticipating future periods of growth.
For example, when the time comes to up-scale your business operations, it could help your finance function adapt more easily to any additional demands being placed upon it and mitigate the risk of disruption towards ongoing operations.
At the same time investing in this technology doesn’t have to happen overnight. Software packages can be purchased in stages and tailored to meet the specific needs of your business.
Create a business strategy which incorporates everything
Business success will often be determined by how effectively you can combine the value of ongoing operations into the development of a single, overarching business strategy. Understanding of the key strategic themes by employees is critical in aiding future business expansion plans and growth. This integration can support planning processes.
By taking a short, medium and long-term view on how value creation might change across the business, you will be in a much better place to identify upcoming risks and opportunities related to your growth ambitions.
The practical delivery of this might involve regular integrated reporting across your business’s operations. The more data that is involved in this process, the more helpful it will be towards informing your management decisions.
Allow work teams to use new technologies to innovate
Companies might also want to consider supporting work teams in certain areas to come up with new ideas to enhance plans for business growth and learn from possible failures, without the personal risks that entrepreneurship entails.
Allowing employees to use new technologies could help to reduce costs and offer new revenue opportunities as your business expands. It could also help to stimulate a high growth business and to fully communicate business’s value to potential clients and commercial partners.
Appreciate the importance of technology in attracting external finance
Investing in technology at an early stage can help attract external investors, as well as reducing the cost of raising growth finance. Such investors need to be able to understand the broader strategy of your business.
Lenders are increasingly using data to build up a broad perspective on the growth potential of SMEs. If you can provide real-time information – rather than just historical data – of your business’s performance, this could greatly increase the chances of obtaining the finance you need to grow.
However, there remains a gap and potential to co-create new approaches of raising capital amongst growing businesses and in creating agreed terms of sharing risks. This could bolster the advancement of entrepreneurial houses toward creating real economic equity in long term.
Save Your SME Money With A Good Payroll Management System
Not only does an efficient payroll system enhance staff morale and boosts your reputation, it can also save your business significant costs.
Payroll solutions are designed to help hone the strategic focus of your business’ HR department, by shifting HR and payroll managers’ from paperwork to developing and motivating employees.
“The biggest potential saving comes from full compliance with tax and labour laws and regulations,” says Ania Strydom, Compliance Specialist at Sage. “Avoiding the massive costs of fines, interest and penalties that a company risks if it doesn’t comply.”
Here are her tips for conducting payroll, saving money on a good system, and pitfalls to avoid that most SMEs don’t see coming:
Choosing a viable payroll management solution
- Look for a scalable product that can grow alongside the business
- Find a solution with full local support that is kept up to date with relevant labour and tax laws for the markets where the business operates
- Make sure the vendor has a proven track record and local reference sites
- Ensure that the solution is built on flexible modern technology that accommodates today’s trends — mobility and the cloud, for example
- Consider a solution with integrated employee self-service functionality.
Vital considerations when conducting payroll
- Ensure that the payroll department consists of people with a good knowledge of payroll and the required skills set to ensure success and compliance with payroll
- Instil a payroll environment that does not need regular review
- Conduct regular payroll compliance audits to ensure compliance minimises the risk of exposure.
How a good payroll management system actually save you money
- Using automated payroll software with employee self-service functions can help organisations save time as it diminishes the need for manual data capture, calculations, reporting or returns
- Rest easy knowing that automation reduces the possibility of human error, allowing businesses to focus on strategy, customers, and employee engagement rather than on red tape
- Payroll can help businesses understand how employees are contributing to profitability, what resources are needed, the cost for major projects, and identifying gaps or surpluses in their human capacity
- The risks of payroll fraud and incorrect payments are reduced by giving managers better visibility into transactions, providing an audit trail, and providing a set of controls, checks and balances
- The biggest potential saving comes from full compliance with tax and labour laws and regulations – avoiding the massive costs of fines, interest and penalties that a company risks if it doesn’t comply.
Avoid payroll errors SMEs typically make
- The use of manual solutions due to tight budgets. They should instead, look at affordable, cloud-based solutions that are priced per payslip per month instead
- Failing to enforce separation of duties. Different people should have responsibility for capturing payroll data and for managing access to the system as well as adding and removing employees from the payroll. Another person checking that the numbers add up could reduce risks of fraud and error
- Not keeping abreast of changes to tax and labour laws such as the Employment Tax Incentive.
Why Grit Is The True Determining Factor Of Success
How grit and determination helped Bertus Albertse take control of his destiny and build an award-winning franchise brand.
- Player:Bertus Albertse
- Company: Body20
- Contact:+27 (0)872310359
- Visit: body20.co.za
What does it take to open a successful business, franchise it, and then take it global? In many instances, the answer is grit, determination and the ability to get back up when life knocks you down.
In fact, Angela Lee Duckworth, an academic and psychologist based at the University of Pennsylvania, where she studies concepts such as self-control and grit to determine how they might predict academic and professional success, believes that the single biggest predictor of success isn’t social intelligence, good looks, physical health or even IQ.
The single biggest predictor of success is grit.
According to Duckworth, grit is passion and perseverance for very long-term goals. It’s having stamina. Grit is sticking with your future, day in, day out, not just for the week or the month, but for
Years. It’s about working hard to make that future a reality. Grit is living life like it’s a marathon, not a sprint.
To find the epitome of grit, we need look no further than Bertus Albertse, the founder and CEO of Body20 Global, a local franchise that is now making international waves.
As a youngster, Bertus was used to living in the unpredictable. His parents divorced when he was just nine months old and his mother, walking with both him and his sister on her hips, moved from house to house whenever his alcoholic grandfather took to the rod.
He realised early in his life that material things come and go as his mother had to return worn clothes and used toys not long after they have been purchased.
In fact, it happened so often that at some point even Bertus and his sister had to return items at retail stores at a young age in order to have money for food or petrol.
“To this day I’ve never forgotten where I come from and how retailers looked at me and my sister with pity and shame in their eyes,” he recalls.
Going the distance
Instead of letting the experience bow him down, Bertus learnt to be comfortable with the uncomfortable, taking control and responsibility over his own life. As an excelling young sportsman, he soon realised how he could control his own destiny by consistently putting in huge effort.
One of his favourite quotes is “You are what you repeatedly do, therefore excellence is not an act but rather a habit.”
It’s a mantra he lives by. Through pure grit and determination, he went from a small, skinny kid from the ‘platteland’ in the West Coast to be the first Head Boy of both the school and boy’s residents at the prestigious high school, Jan van Riebeeck, situated in the heart of Cape Town.
Stay hungry and make a real impact
Bertus also has numerous sports achievements, including national and international Body Building and Fitness titles. With his passionate and optimistic outlook on life, he soon realised that people are drawn to the ideas and things that inspire him and this has given him a flair for business, enabling him to share that passion with his community.
He started his first business in his second year of University in Stellenbosch with a R20 000 loan from his father, which he subsequently paid back three months later.
Today, Bertus is the founder and CEO of the award-winning global fitness franchise network, Body20. He strives to impact those around him by inspiring them to take control of their lives and encourages people to believe in the impossible, but to always remember to take consistent, daily actions to make it possible.
“A rabbit will always outrun the fox, because while the fox runs for its lunch the rabbit runs for its life.” He likes to be reminded of how hungry you have to be to truly make an impact in the world.
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