Visit our Sister Site Gloria’s Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics

Visit our Sister Site Gloria’s Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics

We encourage you to visit the site as they are offering fantastic discounts on all sorts of products which include:

Gloria’s Cottage Craft Trading is owned by Gloria A Freestone, She began Cottage Craft some 14 years ago. She studied Herbalism for 5 years and was last year awarded a South African Bush Doctors Certificate allowing her to make up her herbal products.

She has decided to widen her scope of trading, outside of just her own manufactured Herbal remedies, to earn extra retirement revenue, unfortunately the RA’s did not perform as planned.

In any event she also makes Home Crafts and is an avid Hobbyist. Her latest Hobby is painting river stones into delightful Ladybugs, Owls and Mushrooms.

She was recently asked to make a “Fairy House” from a Stump which turned out excellently as she has a lot of artistic talent.

Visit our Sister Site Gloria’s Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics


Just a little about Us – Gloria’s Cottage Craft Trading –  and our Herbs

Welcome to Gloria’s Cottage Craft Trading. 

We have been trading since 2010.   I started out very small and obtained my herbs from an Organic Herb Farmer in the Britz, South Africa area.    I originally just made up herb tea packs, but soon realized that my customers were starting to ask for herbal remedies.

The site includes:

Watches, Jewellery, Men and Woman’s Fashion, Gifts, Toys, Mobile phones, Laptops, Tablets and  host of other product our Sister Site Gloria's Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics







Visit our Sister Site Gloria’s Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics

I have been helping start-ups for years so decided I would start simply with my wife’s business and go step by step to get this into the Public Domain.

This is being started with no capital but using the skills we have both developed over the years including my getting a Wordpres training from Shawn Fouche and an Advanced Digital Marketing Diploma from Shaw Academy. The diploma is NVQ4 rated and accepted in the Eu as a Degree course.

So whilst I normally work with struggling, already existing businesses medium to large,  I can apply a certain amount of time to pro-bono work with good start-up ideas. So send me a mail with your idea and if this sounds worthwhile – to me. I am the sole judge as I am giving a certain number of hours, Pro-Bono. As a Senior IDC Expert, it is expected of me , in any event.. So lets talk. I do warn you though – Not everyone will be chosen.

Visit our Sister Site Gloria’s Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics

So let me start telling You about IDC. But before we do I must tell you that I am not employed by IDC neither do I profess to be a complete GURU at their needs and do the very best for my Clients. In the past 5 years, I have raised over R800 million for SME’s.

IDC Overview

It is no use looking for funding at IDC  unless a couple of hard coded rules are followed and these are:

Minimum requirements

  1. Security; the form and nature of which will relate to your specific circumstances;
  2. Compliance with international environmental standards;
  3. Shareholders/owners are expected to make some financial contribution:- The contribution of historically disadvantaged people under special circumstances may be lowered, in which case the corporation will be prepared to extend finance in excess of the owner’s contribution.
  4. The project/business must exhibit economic merit in terms of profitability and sustainability;
  5. We do not refinance fixed assets, since our aim is to expand the industrial base; and
  6. We also focus on broad-based and expansionary black economic empowerment and black industrialists. our Sister Site Gloria's Cottage Craft Trading Special Offers Gifts, Watches Jewellry, Electronics


Expansions by existing businesses

  • Latest audited and actual financials (signed by the finance director, MD or CEO). VIP!!
  • Your updated business plan focusing on the proposed project/expansion.
  • A detailed description of the nature of expansion, its related costs and revenues.

IDC Overview

A comprehensive business plan.  VIP

Small, medium and start-up businesses

  • A comprehensive business plan. VIP

To go on and detail all the sectors and product types is onerous and for a reader slightly boring so I suggest you have two ways to deal with anything about the above that may interest you.

Expansions by existing businesses

  • Latest audited and actual financials (signed by the finance director, MD or CEO). VIP!!
  • Your updated business plan focusing on the proposed project/expansion.
  • A detailed description of the nature of expansion, its related costs and revenues.

IDC Overview

A comprehensive business plan.  VIP

Small, medium and start-up businesses

  • A comprehensive business plan. VIP

To go on and detail all the sectors and product types is onerous and for a reader slightly boring so I suggest you have two ways to deal with anything about the above that may interest you.

Contact me.

[contact-form][contact-field label=”Name” type=”name” required=”true” /][contact-field label=”Email” type=”email” required=”true” /][contact-field label=”Website” type=”url” /][contact-field label=”Message” type=”textarea” /][/contact-form]



The story from a highly frustrated UK start up Entrepreneur

The story from a highly frustrated UK start up Entrepreneur has been dictated to me by one person and told to me by others , who have similar stories.

Here is a summary of what I have discovered; May I also suggest you read a well written article by Brad Nosser, below.

Are we doing enough to support small business growth?

I posted an article into my Blog “Interco Development and Training/BASS Business Skills Charity site” called “Are we doing enough to support small business growth? in the UK (My addition)

This a well written and thought out article written by Brad Rosser, Non-Executive Chairman, Xref, who does not believe the UK Government has a well-orchestrated plan for ongoing small business support.

Personal comment.

I support the article but……

I still do not believe the report gets to the Nub of the real issue and that is for small start-ups to find actual funding both Grants and Secured and Government-backed loan funding is a nightmare.

My story that follows is from a story of a fairly astute businessman with his startup experience. I didn’t just accept it I went through his documentation and it was all confirmed.

I can now say in addition to my International experience I also have the UK as well.

The story from a highly frustrated UK start-up Entrepreneur

Having started many small businesses in South Africa and Australia and more recently helped someone on a Pro Bono basis in the UK, I can genuinely say the UK is impossible.

Please understand I agree with Brad. BUT, I believe for every 1 entrepreneur who makes it through a terrible journey, 100’s give up and or run unsustainable business until they fail.

What I have heard from a multitude of sources

Burgeoning Red tape, no real grants for working capital, some yes as long as it complies with local council rules, state funding rules retention, due diligence more paperwork and on and on.

The Journey of someone who experienced a Hull trip to hell and back

Phase 1 EOI

The journey starts by first having to complete an EOI (Expression of Interest) for the uninitiated – so far so good, and same in South Africa and Australia.  However from reading through is submitted document it was apparent thaf right from the start the average Entrepreneur does not have the economics degree and accounting wherewithal to deal with even the EOI successfully. No matter how astute.

I have a little experience in this as I have helped over 500 in 14 years of my Business.

If the applicant gets through the EOI process the approval allows you to Phase 2.

Phase 2.

Phase 2 is a more detailed regurgitation of Phase 1 with more specific outcomes. Unless you have conducted a complete marketing survey, and I assure you Your marketing must be boilerproof or you will be accused of wishful forecasting, you will not be approved. So beware and ensure that you have enough money to get a reasonably strong marketing study to confirm, as far as you can, your outcomes.

Ok, my correspondent was fortunate enough to have some cash, and managed to get funds for a small market research study someone, and had a friend who was an accountant to help him pass Phase two.

And Yet  More Red Tape

Phase Three

Now You get to the fun part if you are an economist with statistical analysis skills.

Phase 3 is called an OBC (Overall Business Case). Mostly regurgitated from Phase 1 and Phase 2,  but specifically, the document expects the entrepreneur to provide economic statistics showing “evidence of impacts on the community, area, target market,”

Not for the faint-hearted and any startup that does not have the money to go and pay at lest 1000 Pounds to get through this will definitely fail.

Phase 4..0

IF Phase 3 is approved, without too many back and forth’s, and the startup entrepreneur hasn’t gone insane he gets to the almost last hurdle. The CBC. (The Complete Business Case), which must comply with the  London Green Book “Appraisal and evaluation in central government.  HM Treasury guidance for public sector bodies on how to appraise proposals before committing funds to a policy, program or project.”

I’ve checked this out and it is the final threshing floor used as a standard to finally unsettle the stoutest of hearts.

Economic statistics,  economic value add, rules and regulations that would now scare off a bank of accountants and only if you have a PhD in Economics, (fortunately one of my Doctorate studies) would you have a chance to get through to the legal contract stage. AND, oh Yes, according to ESIF, ERDF training, if the Grant originates in any form from those two sources the auspicious startup would have to keep all the Project data for auditing between 13 and 20 years.

The story from a highly frustrated UK start up Entrepreneur

Due Diligence at all stages

Due diligence and auditing of all your application takes place from Phase 2 onwards.

Legal Contracts

If you pass this and get a legal contract that the grant has been approved, you still have a last nail in the coffin.


You must not spend any of the money you haven’t got until you reach the stage that you have to buy the items needed and then claim back.  You don’t get the Grant in advance.

This is how the British Government is helping startups and SME’s.

Wow! And we wonder why it is failing.

Grant Funding Experts

What I have found is a host of GRANT Funding “expert“s all charging to do what is supposed to be free business support or so I read all over the place on the Government websites, and claiming t find you the perfect grant source. Well most of the persons spoken to say a rather rude Anglo Axon Expression..

The Government advertises over 650 Grants, at last count on the Grants. site.

Medals provided to all who succeed. And, yes there have been many but NOT ENOUGH.

So helping startups in the UK with real grants for small entrepreneurs is a journey through hell.

Unless you have enough money to do what you want you will get nothing but hoards of people sending you emails and promises of grant funding and loans galore.

Try it and all you get to do is to fill our reams of papers for business plans – my grist – economic and marketing forecasts which funders ultimately dispute unless you have an actual order or a Grant organization has actually given you a grant, which in that case you wouldn’t need the loan, and then to be asked can you provide 100% matching personal funds.

Brick wall after brick wall.

Absolutely pathetic. – to such an extent I am not going to be helping anyone else – Pro-Bono or not. I will unfortunately have to leave them to the thousands of grant consultants out there.

I’m going back to South Africa after visiting my brother who has lived in Hull for 15 year. The experiences of listening to UK business both small and medium have left me with a bitter taste in my mouth for what I perceive to be a government disgrace in a very poor and disjointed and very fragmented approach to helping small business startup.

It’s probably why that whilst I was born in Aylesbury I have really been battling to come “home.”

The story from a highly frustrated UK start-up Entrepreneur

Some Statistics 

  • The number of UK business births continued to increase from 383,000 to 414,000 between 2015 and 2016, a birth rate of 14.6% compared with a rate of 14.3% in 2015.
  • The number of UK business deaths also increased from 283,000 to 328,000 between 2015 and 2016, a death rate of 11.6% compared with a rate of 10.5% in 2015.
  • London was the region with the highest birth rate at 17.5% and the highest death rate at 14%.
  • In broad industry terms, business administration and support services had the highest business birth rate at 23.1% and finance and insurance had the highest death rate at 17%.

Source:  UK office For National Statistic Released December 2017.  

I have been coming back to the UK every year for thirty years to see if the time is ripe to return home.  But finally, now I have seen the decline of a once Great Nation to what it is today. In an ever declining downward curve. Wages for 10 years have hardly moved and yet costs, especially food costs, have grown massively.

Median growth rate of gross nominal weekly earnings in different sectors
UK, 2002 to 2016      
Source: Annual Survey of Hours and Earnings, Office for National Statistics   

I know I do the shopping when I come to the UK. It has become every expensive to visit here and has gotten worse and worse to visit. In addition to our Rand exchange rates that have fluctuated from R20 to £1; Now  at R17.16 to £1, making it cheaper to buy Pounds, you still get far less “bang for Your Pound.

I wouldn’t like to call the UK a smashed economy as it is still supposedly a Financial Powerhouse. BUT, it is seriously flawed still mired in the 2008 world ebacle, whist Communist China has become a veritable Tiger.  As South African’s know, you cannot sustain anything with a 1 to 2% growth rate.


Brexit, I believe, is the and now Trump rattling the trade Tariff chains, is UK’s last death knell, in my, the Labour Government’s and Conservative Rebel’s opinion.

You have lost World War 3.

South Africa has come up with far more attractive schemes which actually do support small startups. I have worked with IDC (Industrial Development Corporation , wholly owned by the Department of Trade and Industry) for years and have been a Senior IDC Support Expert, appointed by the Minister of Trade and Industry for all that time. Applications are online with a standard business plan template and necessary statutory requirements to satisfy FICA.

I have seen and given real support, not just talk. Yes, the money that is granted and loaned also takes about 6 months, but you get it with standardized applications to a single source and a single contact;  it is almost painless. The IDC help you through every step of the way, and when you get your grant or loan, you also get free access to nearly R 500,000/£30,000 of business support. IDC can also arrange to pay directly to the provider of the service needed as long as you get three quotes and the item is in the approved business plan.

I have successfully applied for R800 million in the last few years mentioned.

Loans under R 5 million/£265,000 are dealt with by SEFA (Small Enterprise Funding Agency – a wholly owned IDC subsidiary).  Again a standard application online with statutory requirements, like IDC and a check to ensure you are not a money laundering operation. I have had the good fortune of getting someone a loan in 5 weeks.


Should you wish to contact me regarding the post, please use the form below.

On a more positive note. I will be back in South Africa ready to do business in May 2018.

If you wish to find out what I charge to do the necessary application for an IDC or SEFA Loan including the standard business plan, then use the form, you may be pleasantly surprised

Remember if your application is approved you get free business support after that.

[contact-form][contact-field label=”Name” type=”name” required=”true” /][contact-field label=”Email” type=”email” required=”true” /][contact-field label=”Website” type=”url” /][contact-field label=”Message” type=”textarea” /][/contact-form]



About us


We have provided a Complete Company Profile 2018 on our About us page which we trust will influence you to contact us to discuss your Business needs.


The MJF GROUP provides Business Advisory Services and Support to the CEO, under the banner of the MJF Group (Business Support to the CEO).

The members of Our Group solve problems which CEO’s are experiencing across a range of demanding and complex disciplines and industry sectors.

We bring a unique, cross-disciplinary approach to clients’ challenges, ensuring the right balance of ability and real-world experience, this includes; strategy, marketing, sales, business planning, accounting services and funding applications, health information management, organisational ability, executive talent development and performance and digital strategy.

About us.


Who We are.

Company Expansion

South Africa.

A Sole proprietary business was started by Dr M J Freestone in 2004. It included a JV with an accounting service business called Riverstone Accounting Payroll and Statutory Services (RAPSS). By end 2016 RAPSS services were brought under the banner of The MJF Group.


In 2014 the sole proprietor, which by now was a Group of companies, added to its list of professional services by opening an Australian Branch, incorporating Executive Recruitment and Leadership profiling,

This broadened our services to include Information Management to the Health Sector by amalgamating with DataProComms (Pty) Ltd Australia, run by Dr D Freestone Doctor of Philosophy (Public Health).

United Kingdom

We created a UK Company; Interco Development & Training Limited.  This company provides soft skill training for micro to small businesses in Hull and offers them access to a funding portal run in conjunction with Sterling Capital Limited. Interco also offers Business Support to companies needing to grow and develop their businesses.

We have also opened BASS Business and Soft Skills Limited (By Guarantee), a Charity created to train under 25’s to get a broader perspective of business skills needed to get into the business world.

The adoption of Australia and the United Kingdom into the MJF Group brings together 85 years of senior executive knowledge and experience in the Freestone family with 38 years joint management consulting experience across three continents.

This enables us to offer clients a complete suite of consulting and advisory services into key industry and services sectors such as:

  • finance,
  • manufacturing,
  • engineering
  • textiles specifically under manufacturing
  • mining,
  • telecommunications,
  • construction,
  • distribution,
  • health,
  • hospitality

About us

Companies in Group

  • Dr Michael John Freestone trading as MJF GROUP ™.(SA)
  • Interco Development & Training Limited (UK)
  • South African Mining and Exploration Company (SAMEC) ™)
  • Business and Advisory Soft Skills cc t/a as BASS ™ (SA)
  • DataproComms (Pty) Ltd Melbourne Australia (Pty) ™ Ltd (AU)
  • BASS Business and Soft Skill Limited ™ (By Guarantee) A Charity to train under 25’s (UK)

Legal Entity

The company is incorporated in South Africa as a Sole Proprietor, In Australia as a (Pty) Ltd; In the UK as Limited Companies.

What Methods Do We Use?

Business Support Program

Created as a Business Advisory Service, offering Strategy, Peformance Improvement, Marketing, Sales, Operational, Business Planning and Funding Applications support to the busy CEO, leaving him time and energy to focus on the key issues affecting their businesses today. We have doing this for the past 14 years.

Our Customer Value Proposition is:

We work with CEO’s to: Improve Productivity; Increase their profitable Sales by as much as 179%”

Proprietary Tools

Utilizing our proprietary tools assists us in understanding the condition of the Client’s business and the diagnostic approach used by us identifies what needs to be done to uncover hidden profits.

AQL Business Diagnostics ™ Step Diagnostic for the CEO ©. Analysis ©
 © Analysis Only for our registered Clients. Business Health Check ©
 Performance Toolkit V2.© GE Matrix Chart (Modified) © Financial Analysis Charts and Spreadsheets. Sales Forecasting 5 years ©.



Consulting Services

Our professional consulting services to CEO’s (Chief Executive Officers) in both Corporate Business and Health/Medical Services sectors has been tried and tested.

Marketing and Sales Plans

Whether we are working on mapping your new strategy, crafting your funding plan, growing sales by using our 133 Marketing and Sales tactics, or searching for your new executive, you can rely on us to get the job done thoroughly.

Full Accounting Services.

We provide full outsourced accounting services including:

  • Bookkepeing
  • Monthly Management Accounts
  • VAT
  • Payroll
  • Accounting Officer
  • Auditing.

Funding Applications

Our funding division makes application for Grants in the Production Incentive Program (PIP) designed for the Clothing, Textile, Leather and General Goods Sector (CTFL).

We successfully negotiate the various protocols in IDC, SEFA, NEF and DTI to get funds for companies who have a great product, Level 2 BBBEE, excellent staff, much innovation but no cash.

Dr MJ Freestone is a Senior IDC Expert and sources Plant and Equipment funding as well as Working Capital funding to ensure that cash flow is not a limiting factor.

The division works hand in hand with Business Support. It has been our experience that unless the client changes his business behaviour there is not enough funding in the world. So once a workable Business Plan has been completed, it will require change management, which is offered by Business Support.

About us

Training Division

Our Softskills division; Interco Training and Development UK/South Africa provides training solutions with courses designed to increase business and leadership knowledge.

The 97 practical courses that we offer can be held at your Company premises, making it very convenient and cost-effective.

Our normal courses, held in very upmarket premises in HULL, United Kingdom/Midrand South Africa are conducted weekly, 4 courses per month. They change the following month and depending on popularity may come back sooner than every 2 months.

The courses are monitored by an invigilator and score results are given to management a week after training, which enables the Company sending the trainee, a subjective evaluation of how they have done.

Interco has a Joint Venture with Sterling Capital to provide funding to SME’s through our Funding Lines suite of products.

Business Problems that we solve for the CEO’s include:

  • Falling profitability
  • Ineffective Strategy
  • Poor Inventory controls
  • Old fashioned Accounting systems
  • Not using Accounting systems correctly
  • Poor marketing and/or no marketing
  • Poor marketing tactics as no marketing strategy exists
  • Too much marketing causing space and order backups leading to low customer satisfaction
  • Extremely low customer satisfaction score
  • Disappearing sales
  • Productivity in tatters
  • Low On-Time In-full statistics.
  • No staff training
  • High employment changes
  • Over-employment adding to lack of productivity
  • Poor systems and procedures
  • Lack of control in the organisation causing chaos.
  • No Mechanisms to check and control the organisation.
  • No Tracking of Executives progress to planned objectives.
  • Poor Leadership
  • No Leadership profiling
  • No Executive training
  • Poor Executive recruitment using the DISC Tools.
  • Poor Management practices

Professional Services we offer the Health Service CEO’s

  • Conducting Quality Audits of Clinical Coding
  • Project Management of clinical and administrative information systems implementation
  • General Practice Accreditation Readiness.

Services for Education & Professional Development in the Health Care Sector – Ausralia run by Dr Darren Freestone

  • Professional development and staff training for;
    • Activity Based Funding
    • Clinical Coding readiness. ICD10
  • Education & Training;
    • People entering or re-entering the Clinical Coding profession.
    • Overseas organisations looking to set up Health Information Management systems

About us

Management Expertise.

Management expertise focuses on two specialities – strategic positioning to support and grow market share; development and implementation of working plans to meet strategic outcomes:

Boutique consulting services provided include;

  • Providing due diligence services and contract negotiations for the acquisition of:
    • mines
    • educational institutes
    • healthcare manufacturing facilities for major UK and South African based Industries.
  • Project to integrate multiple mining facilities into one plant, ensuring uninterrupted supply to the market.
  • Change management and the negotiation of a purchase of a South African owned Transport business to get mining product from the DRC to South Africa.
  • Project to transition a trading entity into a copper cable manufacturing entity with a world-class a new range of copper cable manufacturing plant in South Africa.
  • Engaged in working with a telecommunications provider in Tanzania for 2 years.
  • Engaged by a South African company to craft a business plan which had a complete design and construction to build electrical and telecommunications projects in East Africa.  The scope involved designing and costing the project to connect with the Middle East from Tanzania to South Africa.
  • Taking a low-cost mass distributor textile provider to becoming a multi-faceted high cost “Made to Order” Clothing and Uniforms Fashion House and provider of Premium Gifts to a Corporate Niche Market.
  • Crafting a Greenfied Business Plan for a Copper Cable Factory using the latest state of the art technology.

Membership and Affiliations

The MJF GROUP holds Membership with:

  • JCCI
  • VCCI
  • The Institute of Directors (IOD)
  • Institute for Independent Business (IIB);
  • The South Africa Institute of Tax Practitioners (SAIT),
  • Commissioner of Oaths
  • SARS Tax Practitioner.
  • Full Member of the HIMAA (Health Information Management Association of Australia). Certified Health Information Manager.

About us

Company Contact details

South Africa

South Africa.:  Potgieter Road Glen Austin AH Ext 1.1685.

Cell#: +278369423753.   Gloria A Wright Freestone.


Cell# +2783 4754192. Dr Michael J Freestone.

Webpage: /ABOUTUS 
Skype name: mfreestone5209

The United Kingdom.

Head Office.

K2 Bond Street.

44 Bond Street, Hull. HU13EN

Interco Development & Training Limited

Cell# +44 1482363903       Director Mr Brian Freestone


BASS Business and Soft Skills Training Limited (By Guarantee)

Cell +447729905578         Director  Dr Michael John Freestone.

Webpage (Under Construction)


By Introduction only as we maintain a very low profile while we are growing this business.

Should you require any of the services mentioned use the contact form below.

What is EVA? Definition


What is EVA? Definition

Economic Value Added (EVA) is a financial performance method to calculate the true economic profit of a corporation. EVA can be calculated as Net Operating Profit After Tax minus a charge for the opportunity cost of the capital invested.
EVA ( © / ™ Stern Stewart & Co.) is an estimate of the amount that earnings differ from the required minimum rate of return (against comparable risk) for shareholders or lenders. The difference can be both a surplus or a shortage.

EVA compared with MVA

Unlike Market-based measurements, such as MVA, EVA can be calculated for a divisional (Strategic Business Unit) level.

Unlike Equities measurements, EVA is a flow and can be used for performance evaluation over time.

EVA compared with EBIT and EPS

Unlike accounting profit, such as EBIT, Net Income and EPS, EVA is economic and is based on the idea that a company must cover both the operating costs AND the capital costs.

Calculation of EVA. Formula

The basic formula for calculating EVA is:

      Net Sales

–     Operating Expenses


      Operating Profit (EBIT)

–     Taxes


      Net Operating Profit After Tax (NOPAT)

–     Capital Charges (Invested Capital x Cost of Capital)


      Economic Value Added (EVA)

By taking all capital costs into account, including the cost of equity, EVA shows the financial amount of wealth a business has created or destroyed in a reporting period. In other words, EVA is profit in the way that shareholders define it. If the shareholders expect, say, a 10% return on their investment, they earn money only to the extent that their share of the NOPAT exceeds 10% of equity capital. Everything before that just builds up to the minimum acceptable compensation for investing in a risky enterprise.

What is EVA? Definition

USAGE of the EVA method: Aligning decisions with shareholder wealth

EVA was developed to help managers to incorporate two basic principles of finance into their decision making:

  1. The primary financial objective of any company should be to maximize the wealth of its shareholders.
  2. The value of a company depends on the extent to which investors expect that future profits will differ from the cost of capital. By definition, a sustained increase in EVA will result in an increase in the market value of a company. This approach has proved valid and effective for many types of organizations. This is because the level of EVA isn’t what really matters. Current performance already is reflected in share prices. It is the (continuous) improvement in EVA that brings (continuous) increases in shareholder wealth.

Some specific usages of EVA include:

  • To set organizational goals.
  • Performance measurement.
  • Determining of bonuses.
  • Communication with shareholders and investors.
  • Motivation of managers.
  • Capital budgeting.
  • Corporate valuation.
  • Analyzing equities.

Economic value added

From Wikipedia, the free encyclopedia
In corporate financeeconomic value added (EVA) is an estimate of a firm’s economic profit, or the value created in excess of the required return of the company’sshareholders. EVA is the net profit less the equity cost of the firm’s capital. The idea is that value is created when the return on the firm’s economic capital employed exceeds the cost of that capital. This amount can be determined by making adjustments to GAAP accounting. There are potentially over 160 adjustments but in practice only several key ones are made, depending on the company and its industry. EVA is a service mark of Stern Value Management.[1]


EVA is net operating profit after taxes (or NOPAT) less a capital charge, the latter being the product of the cost of capital and the economic capital. The basic formula is:

{\displaystyle {\begin{aligned}{\text{EVA}}&=({\text{ROIC}}-{\text{WACC}})\cdot ({\text{total assets}}-{\text{current liability}})\\[8pt]&={\text{NOPAT}}-{\text{WACC}}\cdot ({\text{total assets}}-{\text{current liability}})\end{aligned}}}


  • {\displaystyle {\text{ROIC}}={\frac {\text{NOPAT}}{{\text{total assets}}-{\text{current liability}}}}}, is the return on invested capital;
  • {\displaystyle ({\text{WACC}})\,} is the weighted average cost of capital (WACC);
  • {\displaystyle ({\text{total assets}}-{\text{current liability}})\,} is the economic capital employed (total assets − current liability);
  • NOPAT is the net operating profit after tax, with adjustments and translations, generally for the amortization of goodwill, the capitalization of brand advertising and other non-cash items.

EVA calculation:

EVA = net operating profit after taxes – a capital charge [the residual income method]

therefore EVA = NOPAT – (c × capital), or alternatively

EVA = (r × capital) – (c × capital) so that
EVA = (r − c) × capital [the spread method, or excess return method]


r = rate of return, and
c = cost of capital, or the weighted average cost of capital (WACC).

NOPAT is profits derived from a company’s operations after cash taxes but before financing costs and non-cash bookkeeping entries. It is the total pool of profits available to provide a cash return to those who provide capital to the firm.

Capital is the amount of cash invested in the business, net of depreciation. It can be calculated as the sum of interest-bearing debt and equity or as the sum of net assets less non-interest-bearing current liabilities (NIBCLs).

The capital charge is the cash flow required to compensate investors for the riskiness of the business given the amount of economic capital invested.

The cost of capital is the minimum rate of return on capital required to compensate investors (debt and equity) for bearing risk, their opportunity cost.

Another perspective on EVA can be gained by looking at a firm’s return on net assets (RONA). RONA is a ratio that is calculated by dividing a firm’s NOPAT by the amount of capital it employs (RONA = NOPAT/Capital) after making the necessary adjustments of the data reported by a conventional financial accounting system.

EVA = (RONA – required minimum return) × net investments

If RONA is above the threshold rate, EVA is positive.

Comparison with other approaches[edit]

Other approaches along similar lines include residual income valuation (RI) and residual cash flow. Although EVA is similar to residual income, under some definitions there may be minor technical differences between EVA and RI (for example, adjustments that might be made to NOPAT before it is suitable for the formula below). Residual cash flow is another, much older term for economic profit. In all three cases, money cost of capital refers to the amount of money rather than the proportional cost (% cost of capital); at the same time, the adjustments to NOPAT are unique to EVA.

Although in concept, these approaches are in a sense nothing more than the traditional, commonsense idea of “profit”, the utility of having a more precise term such as EVA is that it makes a clear separation from dubious accounting adjustments that have enabled businesses such as Enron to report profits while actually approaching insolvency.

Other measures of shareholder value include:

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“All life is an experiment. The more experiments you make the better.” – Ralph Waldo Emerson Ways to Start a Business Part-Time While Holding a Day Job Full-Time.

5 Ways to Start a Business Part-Time While Holding a Day Job Full-TimeYou know you want to start a business, but you can’t shake those financial pressures – rent or a mortgage, a car payment and maybe you have kids. Even young people have responsibilities after all. But tack on the fact your business idea will surely take time to catch on, and starting up can seem even further out of reach.

You are a perfect candidate to become a part-time entrepreneur. While not ideal for every young trep – jumping head first into the start-up pool can be a preferred route – getting the business up and running before letting go of a regular paycheck may be the best course. Here are six ways to make the transition into entrepreneurship a smooth one:

1. Find balance.

Of course, this is what being a part-time entrepreneur is all about. Can you start up and maintain your commitment to your full-time responsibilities? If you get caught up in your business to the point that your full-time job suffers, people will notice and it will cost you opportunities and, potentially, the job itself. THE NEWS

2. Be patient.

As a part-time entrepreneur, you simply can’t move forward with your new business at the same pace as those who can work on theirs full-time. And even full-time entrepreneurs never have enough hours in the day. Find the right pace for you so you can see progress without completely wearing yourself out. Be patient; you may not be moving as fast as you would like, but forward is good.

3. Bank your profits.

At some point, you will want to walk away from your job and be a full-time entrepreneur. The money you save now will enable you to take that step sooner. If you don’t need it to grow the business, then save it for your future, but be prepared to put it back into your new business as needed. Set flexible goals.

As you build your business, you may find your day job getting in the way of your entrepreneurial goals. That’s okay. It’s what being a part-time entrepreneur is about. Watch out for a tendency to beat yourself up for spending too much time on your job at the expense of your business. Your energies will need to shift from one to the other as time goes on, and that’s okay.






5. Have an escape plan. you want to be a part-time entrepreneur forever? That’s actually alright. Operating as a part-time entrepreneur may not have been your original plan, but if your business can succeed in your off hours and you enjoy your full-time job, why not?

However, if your entrepreneurial plans include running your dream business full time, you need to define milestones and set goals that include walking away from your day job. What needs to be in place in terms of infrastructure, sales, product development or other criteria before you will be ready to quit?

  Starting a business? Download startup guides to help you get started today.

We have a full set of downloadguides and templates:
3.4.2 Cash balance schedule
3.4.5 Stock schedule
3.3 Income statement – actual versus budget
3.4.1 The balance sheet
4.2.1 Determining the best route to market
4.1.2 Terms and conditions of credit agreement
4.1.3 Credit approval letter
4.1.9 Overdue account reminder letter 1
Marketing Plan Template
Sample Marketing Plan
2.1 Market research questionnaire
2.4 Advertising – what to check before your ad goes out


If you are interested in the busines template pack above send me a contact form. I will send you an Invoice for R50.00/£4.00 with Banking dtails for an EFT.  Once funds received the pack, plus more will be sent.

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