Articles – Page 5

Closing the funding gap for women entrepreneurs

Posted on May 21, 2018 by Webmaster

By Gugu Mjadu

Spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS.

Globally, women experience many barriers to equal economic participation. The Establishing a baseline for lending to women-owned SMEs 2013 report by the International Finance Corporation (IFC) points to low levels of access to finance for women entrepreneurs with 15-25 percent of loans issued to women across 34 IFC client financial institutions in 25 countries. This presents a significant stumbling block to economic growth for the country.

The 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS aims to build on the entrepreneurial successes celebrated for the last 30 years by encouraging and rewarding women making waves in their communities through business. Over the last five years, for example, we have seen 35 female entrepreneurs named finalists in the annual competition which accounts for 47 percent of all finalists, and 13 named winners accounting for 43 percent of all winners.

While we remain encouraged by the increasing number of female entrepreneurs entering the competition – we need to uncover and celebrate many more women who, to a large extent, remain unsung heroes of their communities through such business competitions.

According to the African Development Bank, in Sub-Saharan Africa, the financing gap for women is estimated at over $20 billion. This amount is made up by gender-specific challenges that women face, including lower access to quality business training and education, lesser funding opportunities for women-owned small businesses, and cultural beliefs discouraging women from participating in business.

Since our economic growth as a country largely depends on the success of entrepreneurship – it is crucial to ensure that both male and female, existing and aspiring, entrepreneurs have equal opportunities when it comes to accessing funding, training and business opportunities.

These are a few practical steps women can take to proactively close the finance gap for themselves and increase their access to growth opportunities:

Invest in knowing your industry

One of the general rules of thumb when it comes to entrepreneurship is to know more than what directly impacts your own business. It is important for entrepreneurs to be aware of the economic macro and micro environments affecting their businesses, and also the political and legislative landscape within which they operate. For women especially, it is also key to know the points of exclusion of a particular industry, if any. You have to be aware of the general biases and stereotypes in your industry in order to disrupt them.

Collaborate with other women

The old adage of ‘two heads are better than one’ is a powerful mantra for women in business to remember. A group of women-owned organisations standing together and calling for equal funding and business opportunities stands to make a bigger difference than any one organisation doing this work in silo. The work done by organisations and chambers such as the Businesswomen’s Association is therefore important in facilitating this collaboration and women entrepreneurs are advised to participate in similar organisations.

Look for opportunities with like-minded funders

There are many organisations that provide funding and who are passionate about creating equal opportunities for all – some of whom have funds specifically aimed at assisting female entrepreneurs. It is important to find out about these financiers and align your business finance applications with their criteria.

We hope to see the biggest number of female entrants in this year’s competition since our launch in 1988. We must continue to encourage women to embrace entrepreneurship and disrupt staid industries and to participate in competitions that highlight their success.

If you haven’t entered yet, be sure to visit the entry form page, and complete the entry form before 31 May 2018.

Tips for small business owners to keep their employees motivated

Posted on April 26, 2018 by Business Partners Limited

By Ben Bierman

Managing Director at Business Partners Limited

Zig Ziglar, renowned American author and motivational speaker said: You don’t build a business. You build people and people build the business. As a small business owner, the up-keep of staff morale is vital to keep employees motivated so that they can contribute towards building and growing your business.

Employee motivation is based on providing an appropriate blend of rewards such as recognition, remuneration, relationships, security, and challenges of new projects and a sense of doing something worthwhile. Addressing these different aspects of employee motivation, makes employees aware of the opportunities available to them in the business and in the process they feel that they can influence results by their actions and follow their ambition.

Another way to successfully motivate employees is for small business owners provide clarity regarding the goals for the business and what is expected from their employees. The goals set for the company need to be turned into achievable goals for the people working in it. If employees can see how their success contributes to the big picture, they will feel motivated and part of the team.

With this in mind, it is important to give everyone a chance at success. For example, a bookkeeper is more likely to stop debtors taking liberties if they know why this matters so much and are responsible for bringing the figures down.. If employees understand problems, they often come up with solutions themselves.

When it comes to praise and criticism, it is imperative to let employees know when they are doing well and when they are doing badly. Remember, feedback is given to improve performance, provide lessons and build employees’ motivation and confidence in their capabilities.

In order to be clear, business owners should say exactly why they are congratulating an employee or wanting to help them improve. However, it is imperative to avoid getting personal. Describe the negative consequences of an action, rather than criticizing and then encourage the employee to brainstorm how better results could be achieved.

Small business owners should identify which employees have the capacity to learn new skills, and increase the variety of tasks to make the work more stimulating. Giving employees the chance to shoulder more responsibility increases their sense of involvement. This is to avoid losing talented employees due to them being under-utilised, frustrated or bored. In order to know which individual employees are ambitious and which are content to stay in the same jobs ask employees the key question: ‘If you could improve just one thing about your work situation, what would it be?’

The attitude of the business owners towards their employees is key when it comes to motivating employees. Below are additional pointers for small business owners to consider:

1. Treat employees as partners in the business

Keep them informed about business performance and management decisions and ask them for their input on decisions that affect them. Create a good working environment and provide training and resources for their job.

2. Build an atmosphere of trust and teamwork

A company run on defensiveness and fear is an unpleasant place to work. Employees will avoid making decisions in case they are wrong, so accept that mistakes are an inevitable part of the learning process and encourage people to ask for help when problems arise.

3. Keep communication open and honest

Schedule regular appraisals to review progress, problems and plans. Encourage employees to do most of the talking during these sessions, by using open questions like: ‘How well do you feel you are doing?’

4. Take an interest in employees’ lives

Without interfering, be prepared to discuss things your employees are interested in. Listen actively, and be consistent and fair in your approach.

5. Build team spirit with regular briefings

Hold daily or weekly meetings to plan work, establish goals and discuss any special events and deadlines. Share any news and problems and give employees credit for their contributions and achievements.

The importance of motivated and inspired employees is crucial to the success of any business. As such, small business owners should make sure to continue to build on the employee management approach in order to retain great employees and for the business to survive and thrive.

What can you do to be more professional in business?

Posted on April 26, 2018 by Sanlam

By Jannie Rossouw

Head: Sanlam Business Market

It is my experience as a consumer and sample of one, that the level of professionalism in business is on the decline. The question, therefore, is what it means to be professional in our businesses and what can we do to improve our level of professionalism.

www.yourdictionary.com defines “professional” as “… performing a job to high standards…”

So what are “high standards”? This statement does not quantify the standard, but it does state that it should comply with an above average standard. Let`s look at ways in which we can work on and possibly improve the levels of professionalism in our businesses. Are you able to tick off the statements and answer the questions that follow?

Knowledge

Is the level of knowledge of our product and/or service top notch; i.e. can we advise and answer the questions of our clients? If not, we should consider training and improving the skills of ourselves and our staff.

Attitude

Do we have a “can do” and positive attitude towards our clients? The whole sentiment in a business can change if clients sense a positive energy. Friendly and helpful staff will leave a lasting positive impression of our business on clients.

Respectfulness

We should always be mindful that clients pay the bills. This implies, inter alia, that we should be courteous to clients, mind our language and treat them in a respectful manner.

Value

Are our clients receiving more value from us compared to their expectations? This does not necessarily mean that we need to give them “freebies”, but it does imply that we go the extra mile to satisfy their needs and resolve their challenges by offering them the most suitable product and/or service.

Correspondence

Well-written e-mail and other correspondence (grammar and spelling), that also include our logo/branding and contact details, will go a long way towards making us stand out from our competitors. When last did we review our client-directed and internal correspondence?

Marketing elements

We all have websites, brochures and other client-directed collateral. Does the material present a professional look and feel and, as important, does it clearly state our contact details and website address?

Physical appearances

Do our offices or premises show clients that we have respect for our business and them? Is the branding on our premises and vehicles done professionally or has the sun eroded its appearance? Is our Reception welcoming, neat and clean? Are our vehicles clean? Does our dress code and personal appearances show people that we are professional?

Service

Do we answer our phones within a couple of rings? Is our POS (point of sale) staff courteous, friendly and service orientated? How do we treat clients when after-sales service is required? Are we living up to our promises? All these small events are touch points with our clients and add up to their collective experience of our business.

This is by no means a complete list of elements which we can consider to improve our level of professionalism. Maybe the most important measure is our own expectation – if I was a client of my business, would I be satisfied with the level of professionalism I experience? If not, you have your answer.

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.

Report reveals that 2017 entrepreneurial activity in SA 4.1% higher than 2016

Posted on April 26, 2018 by Webmaster

The recently released 2017-18 Global Entrepreneurship Monitor (GEM) report for South Africa revealed that entrepreneurial activity in the country is at its highest level since 2013. The report also shows that total early-stage entrepreneurial activity (TEA) is at 11.0% – 4.1 percentage points above the 2016 score of 6.9%.

Kobus Engelbrecht, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS says that it is particularly encouraging to see that entrepreneurial intentions in the country have increased in the last few years, currently sitting at 11.7% (up from 10.1% in 2016-17).

Engelbrecht says that with these statistics, it is ever important to keep up the momentum by celebrating local entrepreneurs for the work they do in building the local economy, creating jobs and developing their communities with the view to inspire others to follow in their footsteps.

“We often casually refer to entrepreneurs being the backbone of the economy, but when the economy is still trying to recover from a number of macro-economic stumbling blocks, entrepreneurs show their invaluable worth.” He adds that job creation is one of the key aspects identified as areas which will help grow the economy – and this is one specific area that entrepreneurs can make tangible contributions.

Engelbrecht adds that in celebrating the work of entrepreneurs, business competitions do well to motivate and inspire business owners. He points to the recent launch of the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS which is now open for entries. “In our 30th year of celebrating and rewarding entrepreneurs, we want to encourage established entrepreneurs to enter this year’s competition – not only for the cash prize money at stake, but for the value received through the stringent judging process, business mentorship prizes as we as the resultant exposure.”

Engelbrecht adds that entrepreneurs have until 31 May 2018 to enter the competition and can do so by visiting www.eoy.co.za. Prizes are 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.

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.

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.

How to raise profit margins without losing customers

Posted on February 19, 2018 by Business Partners Limited

By Ben Bierman

Managing Director at Business Partners Limited

The beginning of the year is the ideal time for small and medium enterprise (SME) owners to explore additional revenue streams and other means of increasing their profit margins. However, this process is expected to still present some challenges for SME owners owing to South Africa’s economic environment, which while showing some slivers of hope, is not out of the woods yet.

While the South African Reserve Bank (SARB) has increased the country’s economic growth outlook from 1, 2 to 1, 5 for 2018, the economy has not yet recovered which makes it difficult for local businesses to secure avenues for increasing their profit margins. The SARB outlook is also far from the 5% required to meaningfully impact poverty and unemployment.

These challenging conditions in relation to raising profit margins were confirmed by an analysis of the Quarterly Financial Statistics (QFS) released by Statistics SA over the 10 years between 2006 and 2016. The report found that the average profit margin for the South African formal business sector declined, from 0, 09 between June 2006 and September 2008 to 0, 05 between December 2013 and March 2016, showing that each unit of turnover generated less profit in the later period.

While this decline in average profit margin appears to be quite minimal, it is important to remember that SMEs only account for a portion of the formal businesses surveyed and were likely the hardest hit during this period. Smaller businesses tend to be more vulnerable to sustained periods of low economic growth and increasing costs, compared to larger businesses who have the financial resources to sustain shrinking margins.

For SMEs to sustain themselves, business owners should consider the following strategies for improving their profit margins for the new year:

1. Find out what your customers value

It is vital to understand how customers perceive value, and to what extent your business can raise prices while still retaining its customer base; this can be done by engaging with your customers through conversations and surveys. Once there is an understanding of what customers value, business owners should work on meeting these customer expectations. Business owners should also identify their unique selling point as this will help the business stand out from competitors, it could be superior service or quality.

2. Acquire new customers

The most straightforward method to improving profit margins is to acquire new customers from existing markets or industries, away from other players and competitors in the market. The quick and easy solution to attract new customers within an existing industry, is to reduce prices. However, given the increased competition to retain and attract customers, this can increase the risk of ‘price wars’ within a certain industry, resulting in profit margins coming under further pressure which business owners are advised to avoid. Understanding what customers value, as mentioned above, presents business owners with information they can use to attract new customers by responding to their requirements. Acquiring additional customers may not improve your gross margins but should improve your net margins.

3. Get comfortable with costing structures

Understanding costing structures and income and expenditure is crucial to managing and driving profit margins. Profit margin is made up of variable and fixed costs. Variable costs are incurred when producing or selling a product, while fixed costs, such as rent and wages, are payable regardless of whether the business sells anything or not. It is important for business decision-makers to consider these costs when pricing products or services, in order not to compromise on their projected profit margin.

While reducing prices may bring in more customers, overheads such as rent, remain the same, putting more pressure on margins. Similarly, raising prices could improve profit margins, but increases the risk of being priced above the market and potentially driving customers away.

4. Manage variable costs

It is also important to acknowledge that increasing prices may not be viable due to the reality that many business owners operate within the confines of limited economic growth and decreasing customer spending. As such, effectively managing variable costs – like utilities, raw materials and labour – is the next step when reviewing profit margins.

For example, business owners should aim to negotiate discounts with current suppliers or explore the use of alternative suppliers that can provide the same products or service at a lower cost without compromising on quality. To save on utilities such as electricity or water, a business can make a more conscious effort to utilise these resources more effectively. In terms of labour, businesses can incentivise staff to become more productive and deliver greater output during the same hours. Another avenue is ensuring the business has sufficient security and adequate stock controls in order to minimise theft.

5. Don’t lose sight of your business plan

Whichever option a business owner may choose to maximise their business’ profit margins, it is imperative to refer back to the business plan regularly as this might unearth ideas the business owner may have long forgotten. This should secure long-term business success, especially during trying economic conditions.

Improve turnover by increasing the monetary value of sales

Posted on February 19, 2018 by Sanlam

By Jannie Rossouw

Head: Sanlam Business Market

To improve the quality of business decisions we need basic sales information. For the purpose of this article we require the average rand value per sale in our business. The premise is that, if we can increase the number on average, our turnover and ultimately our profits should also improve.

Upsell (think of McDonald’s “upsize” sale technique) and cross-sell (think Samsung with different products lines – laundry equipment, computers, TVs, cameras and mobile phones) are two of the most widely used methodologies to increase the monetary value of a sale. The question is – are you already applying these techniques in your business? Do you know what the profile is of clients who are more prone to going for an up or cross-sell? Client education can assist in informing clients about other products and services on offer by our business, supporting both up and cross-selling.

The future sales value, or lifetime value, of a client is another perspective worth mentioning, because the immediate sale might be low in monetary value, but understanding who the client is and what unfulfilled needs they have that can be addressed by our products/services at a future date, means that we can pro-actively engage with them to prompt a quotation and ultimately a sale. The record keeping and follow-up processes in the business would need to be streamlined to ensure that we do not miss out on future transactions. By being pro-active we can limit the impact of the competition from the sales process. Rewards for ongoing patronage (offering a discount or added value) can go far in building brand loyalty and, therefore, help to increase the rand value of transactions.

The sales value and pipeline of future business can also be improved by offering a special deal when a client upgrades to a new model/at the release of a product. The new product will carry a larger price tag, ultimately leading to a higher turnover figure – in this way we secure a future sale (or multiple sales over time), which will be worth more to our business.

Freebies with high perceived value can be added to the sale of a product of service, especially when the up- and cross-sell options are chosen. The inclusion of freebies can support the business closure process for the sale (e.g. a video explaining how best to use the product or to implement the service).
The take-home message is that, if we want to improve the current and future rand value of transactions, we need to know the current figures (average rand value per sale) and then implement a sales strategy and process which can be influenced and managed. A mere 10% increase in the average rand value per sale can lead to a >10% increase in profits, because of economies of scale and fixed overheads, which are transaction value insensitive.

Go to www.sanlamgameplan.co.za to download your free copy.

Entrepreneurial pearls of wisdom

Posted on February 19, 2018 by Webmaster

The 2017 Entrepreneur of the Year® winners share their advice for turning 2018 into a success

When it comes to being an entrepreneur, there is no sure template to follow or instruction manual to refer to, and no two journeys will ever be exactly the same. There are, however, parallels that can be drawn and lessons that can be learnt from those who may be a little further on in their entrepreneurial journey.

In the hopes of finding some of these valued nuggets of entrepreneurial wisdom, we sat down with a couple of winners of the 2017 Entrepreneur of the Year® competition and asked them about the biggest lessons they’re taking with them from the past year, as well as any advice they have for up-and-coming entrepreneurs who hope to make 2018 their year.

Siphiwe Ngcobo, the founder of iLawu Hospitality Group and the 2017 Job Creator of the Year® says that the biggest lesson he learnt in 2017 was that no one has monopoly over ideas. “As an entrepreneur, you should always strive to keep abreast with what is happening around you through reading relevant literature and networking with people who will contribute in making you a better entrepreneur and human being.”

For Zenzele Fitness Group founder and Small Business Entrepreneur of the Year® winner, Tumi Phake, an important piece of wisdom came from a book he was reading. “While reading Good to Great by Jim Collins, what really stood out for me was the idea that in life, or business, you need to get the right people on the bus, put them on the right seat, and get the wrong people off the bus.

“It’s about surrounding yourself with people who bring out the best in you, people who want to make it happen and are self-motivated. If you have the right people sitting on the right seats, there’s no need to micromanage,” he says.

Tumi continues by explaining that while having a great business idea is important, it’s not critical. “The most important thing is having the ability to execute your idea – this is what investors look for. To do this you need to find people with the skills you may not necessarily have yourself.”

Siphiwe finishes off by offering the two entrepreneurial principles that he lives by. “The principles I live by are simple and usually come quite naturally to anyone with an entrepreneurial spirit. Firstly, be obsessed with understanding how things work and, secondly, take ownership. This means interrogating and understanding ideas before making a decision; and then taking full ownership of whichever path you choose.”