As we draw to the close of another year – and its been a fairly difficult one at that – I can reflect on a number of circumstances that affected my own business:

• The Eskom power debacle put our business in a position where at one stage we were seriously considering purchasing a backup generator. In hindsight, it would have cost us an arm and a leg to run. In the end, we’ve purchased a set of power invertors at a considerable saving, and guess what – we haven’t had to use them yet.
• Prime bank interest rates increased by 5% over the past 18 months. This translated into an increased monthly repayment of some R300 for every R100k borrowed. This pushed up establishment overheads to the point where a R1m bond could cost an extra R36k a year to service; – and that’s just to keep marking time.
• Fuel prices rose by more than a staggering 40%, which simply affected everything!

I think the lesson learned through all of this is not to knee-jerk in these times of uncertainty. Far too many people over-reacted – Escom’s faux pas even resulted in people emigrating for goodness sake. Time’s are still going to be tough next year, but take heart – they will also provide us with opportunities; opportunities to do things better, more cost-effectively and simpler.

We’re also going into the New Year with a major change in staff. Sheryn Horn – who is my longest serving employee, is going off to be a Mom for the first time. We’re really going to miss her here, (and I know her many clients will too) but I wish her and Dylan everything of the best for this next phase in their lives.

However, we’re not leaving clients stranded. On the 5th January, Egbert von Reich will be joining us to take up where Sheryn leaves off. Egbert has a B.Com degree and will be assisting Dylan with all our accounting and income tax work, while he completes his CIMA studies (Chartered Management Accountant). We look forward to a long and mutually beneficial association.

Our offices will be officially closing for the Holiday season on Friday, the 19th December at 13h00. We will re-open for business on the Monday, 5th January 2009. I am going to be spending this time with my two daughters in the UK.

May I take this opportunity to thank you for your continued support, and to pledge mine to you in this coming year? I would also like to wish you and yours a blessed holiday season, and a very prosperous New Year.

Kind Regards

Gary Smith

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