Start-up businesses should be making use of value added services to decrease the cost of running their enterprises. Entrepreneurs need to learn that running a cost heavy business only makes it harder for a new business to make a profit. Going through an exercise to lean down the business model will create a far more sustainable way for the business to operate effectively with a focus on its core offering. “We encourage entrepreneurs to start their business at the lowest cost and save … [Read more...] about How start-up businesses can decrease operating costs
Mags Ponnan
5 Considerations for start-ups looking for funding
Many entrepreneurs in South Africa consider funding to be a major stumbling block when it comes to starting or growing a business. In this tough environment where a majority of start-ups fail within the first 5 years of operations, the type of funding that a startup secures to either launch or grow a business often determines success. Mags Ponnan, Head of the Business Incubator at FNB Business believes that entrepreneurs should rather focus on lean business models that do not require much … [Read more...] about 5 Considerations for start-ups looking for funding
4 Tips for SMEs looking for returns this festive season
In a year that has seen minimal economic growth, many SMEs will have to make the most of the festive season to build cash reserves for the year ahead. 2017 has proven testing for many an entrepreneur; characterised by low growth, rising petrol prices, a drought in parts of the country and a negatively adjusted rating in investment grades. These factors have all contributed to a more strained consumer. Mags Ponnan, Head of Customer Value Propositions at FNB Business, reckons that SMEs have … [Read more...] about 4 Tips for SMEs looking for returns this festive season
Stress test then incubate
Business incubators have the ability to catapult a business in the right direction through enabling access to guidance, resources, networks and mentorship. However, incubation tends to be thought of as a magic wand, when in reality it only works once a business has gone through certain steps along its lifecycle. “Often, incubators are seen as magicians where any business can be assisted, but in reality, not every business is ready or ideal for incubation,” says Mags Ponnan, Head of the … [Read more...] about Stress test then incubate
Need to trim your SME running costs?
Operating costs associated with running a business may be challenging to deal with due to the current economic woes. SME’s need to develop long term strategies to ensure they can stretch each rand whilst saving where they can. “The state of the economy is not great, consumers are hard pressed and businesses are feeling the impact with less spend going around. SME’s in particular, have to be smart about how they manage the flow of their income and expenses. Businesses can achieve this by … [Read more...] about Need to trim your SME running costs?
The answer to improving SME’s
"South Africa could be doing better; we don't have enough entrepreneurs building businesses on scalable models. The sum result of is a slowing economy with little wiggle room. The fix is a simple one – Let's invest in building the right environment for entrepreneurship," says Mags Ponnan, Head of Business Incubator and Customer Value Propositions at FNB Business. The National Development Plan goals are to create 11 million jobs by 2030; this is only possible through 90% of new jobs being … [Read more...] about The answer to improving SME’s
The need for SME’s to diversify is clear
The SA economy is proving resilient in the wake of the recent downgrades, the rand is slowly recovering and business seems to be weathering the storm, however, this should not stop businesses from diversifying both their business and investment portfolios. “Adopting the ostrich mentality will not work for SME’s in a shrinking economy. The idiom “make hay whilst the sun shines” is the most relevant in this current economy. The reality is there is less money in the economy and debt is becoming … [Read more...] about The need for SME’s to diversify is clear
High unemployment highlights need to invest in SMEs
The latest Quarterly Labour Force statistics put unemployment at over 26.5%, highlighting the desperate need for both government and private sector to prioritise investment into building up entrepreneurial ventures that will drive job creation. According to Mags Ponnan, Head of Customer Value Propositions at FNB Business; SMEs need to be a greater focus area for growth, if we are to decrease the unemployment numbers. * A number of statistics estimate that SMEs account for over 90% of … [Read more...] about High unemployment highlights need to invest in SMEs
What you need to make your own business dream a reality!
Aspiring entrepreneurs often flirt with the idea of starting their own business as part of their New Year's resolutions. However, every indicator points to a sluggish economy, but the courage to see it through may just be the leap of faith that sets you apart in 2017. Mags Ponnan, Head of Customer Value Propositions at FNB Business, says the South African economy is taking strain, the World Bank and Treasury are not posting significant GDP growth- it's definitely a challenging environment for … [Read more...] about What you need to make your own business dream a reality!
The Seven key business issues keeping SMEs awake at night
Despite the current economic headwinds, small business owners are still optimistic about growth and flexible enough to turn challenges of a highly dynamic and rapidly changing business environment into opportunities. Mags Ponnan, Head of Customer Value Propositions at FNB Business, recently spoke to business owners that participated in the FNB Business Incubator. He found it encouraging engaging entrepreneurs that think out of the box, reinvent themselves and actively use innovation to tackle … [Read more...] about The Seven key business issues keeping SMEs awake at night
