August 2011

Winner of the 2011 Medium Entrepreneur of the Year® award

Being results-driven, setting achievable goals and loving what you do is, according to Troy Carelse, CEO of Foaming Concepts, the secret to running a successful business.

Foaming Concepts is a manufacturing company that converts a product called flexible polyurethane, which is used as a raw material to produce premium bedding, lounge suites and office furniture. Started by CEO Troy Carelse in 2006, the company is situated in Wadeville, Johannesburg, and prides itself on quality workmanship, competitive pricing and lead time. ‘Foaming’ is attributed to the core of the business’s manufacturing activity and ‘Concepts’ refers to the business’s innovative way of producing flexible polyurethane foam and the manner in which it services its clientele.

Carelse studied towards a diploma in mechanical engineering and holds a business management diploma from the Henley Business School (UK). A qualified fitter and turner, he has been in the industry for approximately 13 years, and was previously employed as managing director at Loungefoam – a subsidiary of Steinhoff Holdings International. “I had seen an opportunity in the market that had not been targeted i.e. supply of flexible urethane to the independent manufacturers of bedding and lounge suites, as I felt they were being held ransom by existing suppliers due to the controlling market,” he explains. “This meant that certain buyers of flexible urethane such as Restonic, Serta, Simmons, etc. previously had to purchase this product from Vitafoam (a subsidiary of Steinhoff), and they also had to compete with companies such as Edblo and Sealy – also owned by Steinhoff. During my time at Steinhoff, I had felt that this arrangement was unfair and, when I saw an opportunity to set up a foam manufacturing company to service these independents, I grabbed it.”

According to Carelse, what makes Foaming Concepts unique in this industry is based on four important factors, namely:

Price – Because of our low overhead structure, we believe we can offer the most competitive price.

Lead time – Even with this lean team, we still have the ability to service customers within one to two day periods.

Quality – Our quality of the product is on par with the latest in Europe as our manufacturing equipment has been sourced abroad.

Innovation – We are actively involved with our customers by assisting them with re-engineering of their products and processes in order to achieve better efficiencies and costs in their businesses. “I firmly believe that in any successful company, your key asset is the stakeholders that support you and the relationships that you have with them. This includes employees, clients, suppliers and shareholders,” he reiterates.

Staying motivated

Carelse is happily married to his wife of 25 years, Ursula, and they have two sons: Dane and Grant. He creates a balance between his career and personal life by always setting aside time for his family when returning home from work. “My bonding time includes activities such as playing golf with my sons and socialising with friends and family. The strength that I draw from my family support system is what motivates and drives me.”

“Looking at myself,” he continues, “my advice to other business owners and entrepreneurs is the following: I think one has to be results driven and therefore setting realistic and achievable goals is important. A good business plan is key to any successful business.” He goes on to mention that developing the skill of problem-solving and decision-making will certainly lead to some success, as will the ability to communicate effectively. “Measuring and quantifying is vital – you cannot manage what you cannot measure – and good leadership qualities are also a necessity. One has to lead by example,” explains Carelse. “But over and above, I believe that a good value system such as honesty, accountability, commitment, loyalty and a positive attitude, also contributes toward success.”

Mark Vella, MASSAGE ON THE BEACH, 2011 finalist

A simple but effective menu of massage on the beach: 20, 40 and 60 minutes – back neck and shoulders, and 20 minute legs. Dr Mark Vella, owner and founder of MASSAGE ON THE BEACH (MOTB), situated in Camps Bay, will give you one more reason besides the mountain to visit Cape Town.

Mark Vella Also contracted for corporate, destination management and home-based massages, MOTB has been operational since 2002, and was started by Mark who has a health and fitness professional background before becoming a registered Doctor of Natural Medicine with the Allied Health Practitioners Council of South Africa. He also has his Honours in Business Management from the UCT Graduate School of Business and is currently completely a programme in Functional Medicine.

“I have been involved in smaller business ventures prior to MOTB but this is the first of its kind,” he says.

“You could say that MOTB became my ‘MBA’ in social entrepreneurship. The name was chosen to simply reflect the core service and our unique selling point (USP).”

MOTB was bought out of a combination of critical circumstance and opportunity.

“We had a five year delay in our registrations with the AHPCSA and I needed to earn income just to survive and keep my property. It was tough times,” Mark explains.

“A friend –a beach trader – recommended me to an opportunity through the Cape Town city council to trade massage on the beach. Honestly, at first I thought it was below me, but this was just a temporary stop gap.”

Within a couple of years, the business model completely shifted his paradigm and became a vehicle of personal transformation. “I began to see the vision for something much greater than myself. Now, I am grateful for the events that led me on this path.”

Unique business model

MOTB is internationally-renowned, having served over 8 000 clients from over 72 countries. In turn, the company supports the Hand-up Hands-on Apprenticeship Opportunity (HuHo) – a unique, free skills development programme that affords students working at MOTB the opportunity to earn while learning, through a 4-module training programme. One might assume that the company’s USP is simply that they are based on a beach. But MOTB has taken that one step further.

“First,” explains Mark, “our massage is often said to be the best you will get in South Africa. People often think that a beach massage cannot be as good as a luxury spa one. And we use that exception to our advantage. Our house protocols are trained weekly with a focus on the client-centered experience and needs. This leads to a massage brand style that is different and unique. Spas offer a luxury we cannot. But we offer a massage that you will not forget.”

But what really makes MOTB particularly special is the business model it uses. The joint venture between MOTB and HuHo is a symbiotic relationship – HuHo facilitates the apprenticeship and formal lessons at no charge to successful applicants.

This year the programme runs from roughly September 2011 to May 2012, commencing with a two month training orientation, followed by modules in self-development, business acumen and personal strategy. The programme includes in-service training, reading lists, weekly lessons, assignments, and small business projects. In turn, students gain practical work experience at MOTB – earning as they work. The revenue generated by the students allows MOTB to fund and facilitate their apprenticeships.

“It is a one-of-a-kind, rare, sometimes crazy and beautiful opportunity that will change their lives,” says Mark.

“We don’t contribute to Corporate Social Responsibility (CSR). Rather CSR is at the heart of our business model. And yet we don’t trade on it. Instead we focus on the quality and value we offer through MOTB. Visit us and we challenge you to find a better beach massage experience – anywhere in the world.”

Mark believes that his business model can be a socially innovative one, adopted by all companies in South Africa. This means that South African business can contribute to developing young South Africans who are responsible, critical thinkers, compassionate, emotionally intelligent, and effective – going far beyond the traditional SETA apprenticeships.

“We are a boot-strapped business. With virtually no assets, we generate over R250 000 in just 150 days. Additionally, we give ten people free education and skills transfer; creating value for more than ten stakeholders – all at no cost to the city or government,” Mark explains.

“If the business could go national, in five years, we could have 30 installations nationwide, graduating over 400 apprentices.”

Coping with the stresses

But running any business, even if it is based on a beautiful beach in Cape Town, is always a challenge. MOTB and the HuHo programme operate in a dynamic, physical environment, and the business is still in its developmental stages. Despite the pressures that trying to kick-start a business in a recession can bring to the home-front, Mark still holds family and personal health on his list of top three priorities.

“I have a fiancé and a 5-month old daughter who mean the world to me. Spending time with them, letting them know how important they are, is essential. Their love and support makes all the difference to me. Living within your means and appreciating what you have rather than bemoaning what I don’t, has helped me tremendously. I always keep the communication lines open with fellow business mentors, colleagues, friends and loved ones.

“So many people have been down the path you want to go,” he says, “so meet with them, speak to them, and ask their input or advice. Apart from the fact they could save you much time and money, you may find opportunities arising.”

Forget the ‘lone ranger’ notions about entrepreneurship, Mark says, as no entrepreneur is self-made – it’s an illusion.

“You achieve success by leveraging the skills and resources of other people. At the same time, there’s no substitute for basic business acumen. Get some!”

Month: August 2011

When opportunity knocks, answer it