March 2018

Nine tips for entrepreneurs to attract investors and secure funding

Posted on March 16, 2018 by Business Partners Limited

By Ben Bierman

Managing Director at Business Partners Limited

The Global Entrepreneurship Monitor South Africa 2016/2017 reports that two-thirds (67%) of small businesses closed in 2016 either because they were not profitable, or because they encountered problems in accessing financing. Access to finance is not only a significant constraint for early-stage entrepreneurs in South Africa, but also problematic for established businesses. However, contrary to what many entrepreneurs believe, there are various financiers and investors with funding available who are eager to invest in South African entrepreneurs which too often is not effectively accessed or tapped into.

Many excellent business ideas never get past the ‘spreadsheet stage’ because entrepreneurs cannot find the right investor for their specific business model, or do not manage to convince investors because the true potential of their business idea is not effectively conveyed.

Business owners who are seeking finance should conduct thorough research on different financiers before approaching them. Understanding the specific criteria of the investor or financier and matching their investment preferences to the entrepreneurs’ business saves not only time and effort, but can improve the success rate and result in a funding proposal that is aligned to both the needs of the financier and the entrepreneur.

It is also important for entrepreneurs to realize that investors often invest more than just money into a business, they are often prepared to invest time by advising and supporting the entrepreneur behind the business –and this can only happen if the partnership between the two parties is a good match.

Finding the correct investor and successfully pitching your idea is a valuable business skill that can be continually enhanced. Entrepreneurs should consider the following suggestions to improve their success rate in raising finance:

1. Get connected and network. Investors are out there, and they are usually only one or two people away from those with whom you regularly do business. For example, accountants or suppliers can often recommend potential investors that may be a suitable fit. Emphasise the “work” in “network” by investigating your options and asking for referrals.

Prepare a sharp and concise story outlining the purpose of the funding you are applying for (to start, expand, restructure, etc.). Investors need a clear and well quantified idea of what the money will be used for, as well as realistic financial projections that support the business’ ability to repay the debt or provide a return on investment.
Know all the aspects of your business and incorporate the key points in your business plan especially your industry analysis and market segment identification. The more concise and crisp the business plan is the better. A compelling description of the core product or service being offered by the business is vital, how unique is it compared to other suppliers in the market and is there a demonstrated and proven need for the product or service; and is there sufficient market potential to make the investment worthwhile?
Always have a detailed business plan ready. Not only will it help to solidify the knowledge mentioned in the previous point, but you will be able to send or present the plan quickly if a potential investor wants to have a closer look. This will help to convince them that the business owner is prepared.
Understand the current state of the business. Investors want to know where in the life cycle of the business you find yourself and whether the business owner and the support team understand the industry in which the business operates or will operate. Knowing the background and business experience of both the entrepreneur and the support team, and the current state of the business can provide a level of comfort to the investor regarding their investment decision.
Have an online presence. It is almost guaranteed nowadays that an investor who is interested in a business idea will do a background search on the internet. Therefore, it helps to have a good website and a strong presence on social media in which the entrepreneur’s successes are highlighted – not only in the current business, but in previous ventures and jobs. Most astute investors interrogate both the strengths of the business idea and the prowess of the entrepreneur.
Be prepared to pitch in person, often investors will request a follow up meeting which includes a detailed presentation of the business plan, profit projections and industry insights. Be prepared for this request and have a more detailed presentation available in advance.
Once contact has been made with a potential investor, stay in touch, even if it is just to ask for advice, such as how a proposed investment can best be restructured. The entrepreneur should also be open to feedback from potential investors. It is important to show investors that you are open-minded and adaptable. Chances are that the investors you are pitching to can enhance your idea with their advice, whether they decide to invest in your business or not.
Have a realistic exit strategy for the investor. The investor’s thinking is likely to be around whether they can make the best return possible on the investment, so this point should be included in the exit plan. The time frames that most investors work with are between three and seven years.

Continuous improvement in business

Posted on March 16, 2018 by Sanlam

Kaizen, a Japanese word and philosophy meaning “change for better”, reminds us that incremental and continuous improvement in life and business can and will propel us forward. This philosophy is powerful, because the implementation thereof is all inclusive, from the business owner(s) to the most junior employee.

The question is straightforward – which small improvements can we (on all levels in the business) identify which can be implemented immediately (meaning on the same day or as soon as possible, with little effort and other resources) which will improve the effectiveness and efficiency of our business operations?

Further investigation on how kaizen is applied in business led me to the so called “continuous quality improvement with the PDCA process”:
P = Plan: Plan business operations, e.g. a manufacturing, packaging, marketing, distribution, sales and client support/after service process – this plan sets the current standard of the work.
D = Do: Implement each plan.
C = Check: Inspect each element for quality assurance. When an error or deficiency occurs, we need to highlight it and move onto the next step = Act.
A – Act: Correct/Improve the error or deficiency and incorporate it into the plan. A new baseline for the plan is vested, which should now be an improvement of the previous version.

By repeating this iterative process we have embarked on a continuous journey of improvement.
There is obviously much more to be learned on the philosophy and implementation of kaizen in a business. By teaching our staff and management this very simple PDCA process, we are gearing our business up for continuous improvement, something which can propel us beyond our competitors and surprise our customers with every interaction they have with our business.

Let us focus our effort on the things we can influence and control and thereby grow our businesses in a very challenging business environment.

To support business owners with the important task of business planning, Sanlam gives you free access to the book Your Annual Business Game Plan for Success, which provides an easy and straightforward framework needed to draft a well-crafted game plan that will create the positive change and growth necessary for business success. Go to www.sanlamgameplan.co.za to download your free copy.

Past winner catch-up: where are they now?

Posted on March 16, 2018 by Webmaster

2018 marks our 30th year in honouring entrepreneurs and the contributions they make toward growing the South African economy. We’re celebrating by catching up with some of the past winners of the competition.

Catching up with: Gil Oved

Winning year: co-winner Entrepreneur of the Year® – 2015 with Ran Neu-Ner
Winning business: In 2015, The Creative Counsel – TCC was the largest advertising group in South Africa by staff and turnover, employing more than 1000 permanent employees and thousands of temporary, trained and upskilled staff. TCC is the joint effort of Gil Oved and Ran Neu-Ner.

It’s been almost 3 years since you won the Entrepreneur of the Year® title in 2015, how has business been since then?

It has been an incredibly interesting time to be in business. It was an amazing coincidence that the Entrepreneur of the Year® awards were announced on the morning of 2 September 2015, and it so happened that later that day, we finalised the sale of our business to the Publicis Groupe – the 3rd largest communications group globally.

We have, however, remained in the business since the sale and we now consult to the business as a whole.

We have also each started different initiatives since then. I am currently working on my 4th start-up – a private equity company called LLH Capital, investing in businesses that are transforming and digitising the African continent.

Have you made any new developments within your business since winning?

The communications industry as a whole has experienced a lot of changes. There have been market entries of new services and technology. To keep up and ensure that we were always able to meet our clients’ needs, we developed OBI – a software programme and system for managing people on the ground. OBI helps businesses to gamify what they do and helps staff track their own performance against that of their peers. We are very proud of OBI, what it does for our staff and in turn, what it can do for our clients.

What was the biggest lesson you learnt from your time in the EOY competition?

Before EOY, we didn’t focus too much on our own brand building or competitions. We thought that people would find out about us if they needed to. When we entered the competition, we quickly discovered that there was a whole new world waiting for us. Winning was a game-changer and completely shifted our perceptions.

After winning, we received so much recognition and respect from clients, suppliers, and staff. We realised we were actually a force to be reckoned with, not just a small company – something which is very important, but equally something we, as entrepreneurs, tend to struggle with.

The biggest lesson for us was that you need to get your name out there and seek some recognition.

What would your top piece of advice be for anyone looking to enter this year’s competition?

It is important to understand why you deserve the award. Perhaps some advice to this year’s entrants would be to look inwardly and 1) how you contribute to the economy? 2) what you stand for? 3) how have you improved unemployment rate in your community and have you changed people’s lives? 4) how have you contributed to the social fabric of society? What are you proud of?

If you can answer these questions with integrity, then you have a good chance in the competition.

Any last thoughts?

Winning the Entrepreneur of the Year® competition has improved my personal journey as an entrepreneur and definitely our business trajectory. I am still so inspired to do more.

SA’s premier entrepreneurial competition marks 30 years of celebrating entrepreneurial excellence

Posted on March 16, 2018 by Webmaster

Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech. This is according to Christo Botes, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.

Speaking in light of the launch of the 2018 competition, Botes says that this long-deserved recognition of the SME sector only further validates the competition’s unwavering commitment to celebrating excellence in entrepreneurship and fostering future economic growth.

“Now in our 30th year, this renowned competition continues to pay homage to the fearless South African entrepreneurs who dedicate themselves to their enterprises and businesses: driving growth, combatting unemployment and contributing towards the country’s economic development. It is therefore wonderful to see the public sector taking the required steps to improving the environment in which these entrepreneurs operate in order to promote further growth in the sector.”

Botes, who is also executive director at Business Partners Limited (BUSINESS/PARTNERS) has been involved in the competition since its inception in 1988, “Looking back over the last 30 years, this competition has evolved from an internal competition that recognized BUSINESS/PARTNERS’ clients only, to a nation-wide search for outstanding South African-based entrepreneurs, with Sanlam as our valued partner.”

He says that the competition continues to reward successful local business owners for the valuable contributions they make to grow their local communities and economies, and aims to inspire others to do the same. “As our 30th- anniversary year, we’re hoping to see even more entrepreneurs enter. The competition is open to all South African-based businesses and prizes are awarded for the following categories: Overall Entrepreneur of the Year®, Emerging Business Entrepreneur of the Year®, Small Business Entrepreneur of the Year®, Medium Business Entrepreneur of the Year®, Job Creator of the Year and Innovator of the Year,” says Botes.

Botes adds that this year, the 2018 competition will also recognize a South African entrepreneur for a Lifetime Achievement award. “The purpose of this specially nominated award is to recognize an entrepreneur who has made a significant contribution to the South Africa economy and has grown their business from start-up to large-scale, perhaps even multi-national corporation. We want to reward the individuals who have dedicated their lives to building our economy and inspiring others to do the same.”

The 2018 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, offers prizes valued at over R 2 million, which includes cash prizes of R 70 000 for each main category winner, and R200 000 for the overall winner. Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.

Botes says that in celebrating 30 years of searching for entrepreneurial talent in all sectors of the economy, the competition remains fiercely committed to its cause in 2018. “The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for their product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.”

He adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.

To enter, complete the entry form online at www.eoy.co.za and feel free to interact with fellow entrepreneurs, past winners and entrants on our social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is 31 May 2018.

SA’s premier entrepreneurial competition marks 30 years of celebrating entrepreneurial excellence in Durban

Posted on March 8, 2018 by Webmaster

Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech. This is according to Kobus Engelbrecht, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.

Speaking in light of the launch of the 2018 competition in Cape Town today, Engelbrecht says that this long-deserved recognition of the SME sector only further validates the competition’s unwavering commitment to celebrating excellence in entrepreneurship and fostering future economic growth.

Christo Botes, executive director at Business Partners Limited (BUSINESS/PARTNERS) has been involved in the competition since its inception in 1988, “Looking back over the last 30 years, this competition has evolved from an internal competition that recognized BUSINESS/PARTNERS’ clients only, to a nation-wide search for outstanding South African-based entrepreneurs, with Sanlam as our valued partner.”

Engelbrecht adds that this year, the 2018 competition will also recognize a South African entrepreneur for a Lifetime Achievement award. “The purpose of this specially nominated award is to recognize an entrepreneur who has made a significant contribution to the South Africa economy and has grown their business from start-up to large-scale, perhaps even multi-national corporation. We want to reward the individuals who have dedicated their lives to building our economy and inspiring others to do the same.”

Engelbrecht says that in celebrating 30 years of searching for entrepreneurial talent in all sectors of the economy, the competition remains fiercely committed to its cause in 2018. “The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for their product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.”

Engelbrecht adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.

Entrepreneurs are encouraged to enter the competition and can do so by downloading the entry form online at www.eoy.co.za. They can also interact with fellow entrepreneurs, past winners and entrants on the competition’s social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is 31 May 2018.

SA’s premier entrepreneurial competition marks 30 years of celebrating entrepreneurial excellence in Cape Town

Posted on March 7, 2018 by Webmaster

Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech. This is according to Kobus Engelbrecht, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.

SA’s premier entrepreneurial competition marks 30 years of celebrating entrepreneurial excellence in Johannesburg

Posted on March 6, 2018 by Webmaster

Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech. This is according to Christo Botes, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.

Speaking in light of the launch of the 2018 competition in Johannesburg today, Botes says that this long-deserved recognition of the SME sector only further validates the competition’s unwavering commitment to celebrating excellence in entrepreneurship and fostering future economic growth.

Botes adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.