In the OFM Business Hour’s Read of the Week, serial entrepreneur, Phillip van Zyl, talks candidly about his entrepreneurial ventures – his failures and successes – with the aim of empowering and inspiring business owners in the country. Van Zyl partnered with Xero and entrepreneur education platform, Heavy Chef, in penning the book. 

The Founder and Chief Executive Officer (CEO) of Heavy Chef, Fred Roed, chatted to the show about the Heavy Chef community and some of the nuggets outlined in the book. Listen below:

Heavy Chef’s recent survey into the financial habits of over 9000 South African entrepreneurs reveals that:

• 78% of South Africa’s entrepreneurs rate their budgeting skills as very poor to average;
• and a more sobering 41% learned about budgeting only after they started their own business.

 Budgeting is key to a successful bottom line.

According to van Zyl, “a budget is more than a tool. It’s a reflection of the health of your business. Your budget should tell the story of your business and where it’s going – not a fictional or aspirational story, but one grounded in reality with a dash of hope. Ninety percent of successful budgeting is actually getting the individual to buy into it and do it. We do a lot of integrations with entrepreneurs where we integrate systems like Xero with Shopify Store or DEAR systems inventory. But none of that's going to be any use if you don't have your workflows in place and your people haven't bought into it".

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Timing is important with respect to cash flow

“Where cash flow is related to invoicing, so much depends on timing. It is awesome when the amount of money coming into the business, or that you’ve been promised or that you've sold but haven't received yet, tells you that the business is profitable. However, getting that cash in, in time to pay somebody else, is what it's about,” van Zyl adds.

ALSO READ: #OFMBusinessHour: Read of the Week - Construction Delay Analysis Simplified [Part 1]

The aim and purpose of the book? 

Fred says he hopes the book leaves business owners feeling empowered and inspired to make it, despite the country’s tough economy. 

OFM Business Hour