New Year’s resolutions often end up on the “oops, maybe next year” list, mostly because we tend to shoot for the moon with overly ambitious goals, then lose our space suits by February.
There’s also a bit of a bandwagon effect, where we jump on board because everyone else is doing it, even if we’re not quite ready for the ride. Add to that a sprinkle of “all-or-nothing” thinking (one slice of cake and it’s all over!), and a dash of going solo without a cheer squad, and you’ve got the perfect recipe for resolution abandonment.
But hey, it’s the thought that counts, right? And there’s always next year for getting it just right!
Despite the bad rap New Year’s resolutions, it’s important to remember that – from a business perspective – the concept can be beneficial when approached thoughtfully. Setting realistic, specific, and achievable goals, along with a clear plan and support system, can lead to meaningful and lasting changes.
As 2024 dawns, it presents a unique set of challenges and opportunities for South African business owners and managers. The evolving business landscape, marked by legislative changes, technological advancements, and shifting market dynamics, calls for a strategic re-evaluation of business practices. From a business compliance and legal perspective, there are a few key resolutions that are not just reactive measures but proactive strategies for sustained growth and success.
Resolution 1: Implement robust Succession Planning
The vitality of succession planning cannot be overstated. It’s a common misconception that this is a necessity only for large corporations. In truth, small and family-run businesses stand to lose more in the absence of a clear succession plan. A detailed Business Will, distinct from a personal will, is essential in defining the future trajectory of your business interests. This process should involve:
- Regularly updating your Business Will to reflect the current state and future aspirations of your business.
- Collaborating with legal experts to ensure that your succession plans are robust, compliant, and tailored to your unique business needs.
Resolution 2: Stay aligned with legislative changes
The introduction of the 2023 Companies Amendment Bills in South Africa signalled a significant shift in the operational landscape of businesses. It’s crucial to understand and align with these changes. This resolution involves:
- Ensuring that your business practices are in line with the new legislation aimed at reducing red tape and promoting equity among directors and senior management.
- Staying informed about the requirements for greater transparency in share ownership and adjusting your business practices accordingly.
Resolution 3: Master your contract and admin document management
Effective contract management is a cornerstone of business success.
This year, focus on:
- Conducting comprehensive due diligence before entering into agreements, ensuring that contracts are with reliable and reputable parties.
- Crafting realistic contracts that address every conceivable scenario, including missed deadlines and subpar work.
- Regularly reviewing contracts to ensure they remain relevant and are compliant with current business and legal standards.
Resolution 4: Defend against unlawful competition
The threat of unlawful competition requires a vigilant and proactive approach. Depending on their role, some of your employees will have access to commercially sensitive or confidential information – such as costing and pricing structures, client list and customer connections, business strategies and any other information which is not readily available to someone outside the company. Naturally, you need to make sure that your employee employment agreements make provision for adequate protection in the event that they leave your employ. Protect your business by:
- Strengthening employment agreements to include clauses that protect sensitive business information and prevent unfair competition post-employment.
- Monitoring for any breaches of these agreements and being prepared to take swift and effective legal action against any such transgressions.
Resolution 5: Value Your Intellectual Property
Intellectual Property (IP) represents a significant portion of a company’s value in the digital age. In discovering the value of intellectual property as an intangible asset, owners should carry out an IP audit and register intellectual property where necessary, as IP rights become more valuable when their property rights are protected through registration, commercialisation, and litigation. To leverage your IP effectively:
- Conduct a thorough IP audit to understand the full scope of your intangible assets.
- Register and protect your IP to enhance its legal standing and commercial potential.
- Explore new avenues for business growth and funding through the strategic use of your IP assets.
Resolution 6: Navigate Greenwashing with integrity
Environmental consciousness has become a global chorus, and the term ‘greenwashing’ has emerged as a dissonant note, prompting a surge in litigation. This deceptive practice, where companies embellish their environmental credentials, has seen a significant rise globally, with lawsuits cropping up in sectors ranging from fashion to food and technology. In the wake of the rising tide of greenwashing litigation, it is essential to adopt and promote genuine sustainability practices:
- Ensure that all environmental claims made by your business are transparent, accurate, and substantiated.
- Work with environmental experts to develop authentic sustainability strategies that not only avoid legal risks but also contribute positively to environmental preservation.
Resolution 7: Uphold Consumer Rights in product quality
Motor retail businesses in South Africa have a responsibility to ensure that the vehicles and components they sell are of merchantable quality. Consumers have a number of rights under South African law, including the right to receive goods of merchantable quality.
For industries like retail motor, prioritising product quality and safety is critical:
- Stay abreast of consumer rights under South African law and ensure that your products meet these standards.
- Implement regular quality checks and improve product standards to meet and exceed legal and consumer expectations.
- Develop a customer-centric approach, focusing on delivering high-quality, safe products.
Resolution 8: Regularly Review Business Contracts
A regular review of business contracts is crucial for ensuring compliance and relevance. Important documents and agreements that should be reviewed would include; Memorandum of Incorporation and Shareholders’ Agreement (for a Private Profit Company); Non-Disclosure and Non-Compete Agreement; Employment Contract and Employment Offer Letter; Intellectual Property Assignment Agreement; Consulting Agreement; Website Terms and Conditions; Privacy Policy; and Acknowledgement of Debt. Schedule periodic reviews of all internal and external contracts:
- Update contracts to reflect the current legal standards and business practices.
- Consult with legal experts to ensure your contracts are comprehensive, clear, and tailored to your specific business needs.
Resolution 9: Innovate and adapt to Market Trends
Innovation and adaptability are key in an ever-evolving market. Focus on:
- Keeping a pulse on global and local market trends to anticipate shifts in consumer behaviour and industry standards.
- Fostering a culture of innovation within your organisation to stay ahead of the curve.
- Adapting your business models and strategies to remain competitive and relevant in a changing market.
Resolution 10: Foster Employee Development and Wellbeing
Your employees are your greatest asset. Invest in their development and wellbeing:
- Implement continuous learning and development programs to enhance their skills and knowledge.
- Create a supportive work environment that prioritises employee wellbeing and encourages work-life balance.
- Encourage open communication and feedback, understanding and addressing employee needs and concerns.
Resolution 11: Enhance Customer Experience
In a market where customer expectations are constantly evolving, focus on enhancing the customer experience:
- Invest in customer service training for your staff to ensure they can provide exceptional service.
- Utilize technology to improve customer interactions, such as through CRM systems or social media engagement.
- Regularly gather and act on customer feedback to continually improve your products and services.
- Resolution 12: Prioritise Data Security and Privacy
Companies must proactively address their compliance with the POPI Act. Here are some steps to consider:
- Understand the Act: Familiarise yourself with the Act’s requirements, especially concerning the collection, storage, and use of personal information.
- Establish Operator Agreements: Like Dis-Chem’s oversight, many companies lack operator agreements with third parties. Such agreements are pivotal to ensure third parties maintain the required security measures.
- Implement robust security protocols: From strong passwords to continuous monitoring, it’s essential to have systems in place that guard against breaches.
- Seek expertise: If unsure about compliance, consult with experts who can guide you through the Act’s nuances.
The POPI Act is not just another piece of legislation to be shelved and forgotten. The Dis-Chem (and other more recent matters) case exemplifies the severe consequences of non-compliance. Automobile and related industries, given the nature of personal data they handle, must be particularly vigilant. The clock is ticking, and the Information Regulator is watching. Ensure your business is not the next on their radar.
As we move through 2024, these resolutions provide a roadmap for South African business owners and managers to navigate the complexities of the current business environment. Embracing these strategies will not only ensure compliance and operational efficiency but also open doors to new opportunities for growth and success. Remember, the key to thriving in this dynamic landscape lies in your ability to adapt, innovate, and maintain a steadfast commitment to your business’s core values and objectives.
By Koos Benadie | Director
RMI4law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4law, call 0861 668 677.Auto & General Insurance Company Limited is a licensed non-life Insurer and Financial Services Provider.