Tag: advice

Self-belief is the biggest ingredient for success

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A successful entrepreneurial journey starts with a determined vision, a little bit of self-belief and faith in your own ability. According to Erina van Schalkwyk, owner of GEL Supply Chain and entrant of the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, this is the winning recipe for a thriving business and fruitful entrepreneurial adventure.

Erina and her husband, Gert, have had an exciting journey in the logistics sector over the last few years, and even more so recently with the opening of new successful businesses in 2015.

Inspired to support her family after her father’s unexpected death some 10 years ago, Erina started her first business, VS Logistiek – a brokerage business that transported bulk truck loads. She was at the time assisting her husband’s family business, which owned 27 trucks, but soon noticed an opportunity to turn her side-line business into a fully-fledged operation.

As with most entrepreneurial journeys, there were many ups and downs for Erina’s business. She credits her success to the experience she gained over her lifetime in the investment, banking, retail and logistics sectors.

In 2010, Erina and Gert relocated to his family’s farm outside Jacobsdal in the Free State. Here, Erina took over Gert’s role in his family’s logistics company and used her own business to manage the farming operations. Times however became tough for the family business, and in 2013 the couple decided to go on their own after Erina had identified a gap in the market for an intermediary between traders and transporters. By August 2013, the logistics business had a turnover of R 16 million.

In December 2014, the couple decided to change the trading name of their business to GEL (Gert Erina Logistiek) Supply Chain, and within just seven months of operating under the new brand, the successful entrepreneurial duo started another four businesses GEL Import and Export in South Africa, Gel Freddy’s in the Democratic Republic of Congo, GEL Investments in Namibia and M3T2 in Rotterdam. The mother company, GEL Supply Chain, remains as successful as ever, and the ever-adventurous entrepreneurs are also gearing up to open their first coffee shop in Gobabis in Namibia by August of 2016.

Erina attribute’s her business’ good fortune to hard work, perseverance and her personal faith which she holds dear. “Our big break came in 2013 when a co-op in East Free State approached GEL Supply Chain to move a large quantity of grain. We were given eight weeks to complete the project, yet we handed over the final load in just six weeks,” recalls Erina.

“Last year, we were awarded a contract to transport 500 tons of imported maize into South Africa – by December, we had transported 8 900 tons in 67 hours. So far this year, we have already transported more than 10 000 tons of imported maize.”

Erina has big dreams for the future and is confident of achieving them. She aims to expand into Europe and the Americas in the export sector and also aims to contribute to society by partnering with various feeding schemes across rural Africa. On the logistics front, GEL Supply Chain’s next goal is to manage an entire 30 000 ton shipment of maize, and to become the leader in their field.

Commenting on the team of good people she keeps around her, in both a personal and professional space, including her teams of staff, Erina urges like-minded entrepreneurs to never fail to lead their teams: “When leading others, lead not to have followers but lead to have more leaders growing from your example.”

Her parting advice to aspiring entrepreneurs is to continuously work hard and believe in yourself.

Hard work and a passion for excellent customer service leads entrepreneur to success

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For most entrepreneurs, the journey of entrepreneurship starts at the very bottom of the proverbial ladder. Yet, a keen eye for gaps in the market, coupled with willingness to learn and master every skill, climbing the ladder one step at a time comes naturally and with ease. This most certainly rang true for Christopher Kapanga, owner of Randburg based We Clean It All and a 2016 Entrepreneur of the Year® competition entrant, who embarked on his entrepreneurial journey at the tender age of 26.

Like many entrepreneurs, Kapanga grew tired of working for someone else’s vision. As he grew up with an entrepreneurial family, Kapanga always had a desire to become known for doing something great.

He describes himself as ‘street smart’ rather than ‘book smart’. “I was never a great student and found university difficult. I felt like a failure for not completing my studies, until one day I realised that life is what you make of it. Through my work experience I discovered that there was more I could offer once I understood what I excelled at, and I soon discovered that it was delivering on excellent customer service,” says Kapanga.

Having started his working career as a floor sales assistant at a large clothing retailer, Kapanga quickly learnt the importance of excellent customer service, and was swiftly promoted to supervisor. Soon after he was head hunted by Builders Warehouse, and in his position as a junior manager, he soon learnt that customer service was non-negotiable. In this role, he also enhanced his communication skills through his liaisons with suppliers, and realised he could in fact run his own business.

With the seed planted, Kapanga opted to enter the service industry and joined a carpet cleaning company as an area manager. It was during his five years with the company that his inspiration for growing a business increased, and which ultimately sparked his entrepreneurial journey.

“My then manager was very strict and had an eye on everything. He always knew who worked hard, who slacked, how much stock was on hand, how much petrol was in each van for example. His drive and determination to make his business succeed was what I admired most about him, and so I aimed to be just like him one day,” says Kapanga.

After starting to clean carpets over the weekends for extra money, Kapanga identified a gap in the market for high quality and reliable carpet cleaning services in households and with homeowners who continued to ask for additional cleaning services. He subsequently started his own carpet cleaning company, We Clean It All.

Kapanga says that he knew that delivering unrivalled customer service would set his business apart from competitors. “We don’t only provide a cleaning service to our clients, but also create a beneficial relationship by providing clients with long term advice and solutions for maintenance of their material goods.”

He pegs the first few months of 2008 (after launching his business) as the most challenging – struggling to attract and retain even two clients during the winter months, and having their pricing structure dictated to them by their biggest source of clients – the real estate agencies, many of whom took advantage of his business’ youth in the market.

Today, Kapanga can look back and smile at the growth his business has achieved over the past eight years. His services have broadened to include window cleaning, floor cleaning, post renovation cleaning and flood damage among other services. His staff complement has also increased significantly, with additional office and operational staff members. There are also new exciting projects on the cards which Kapanga hopes will bring the business to the forefront of delivering on-the-go services that will be easily accessible to future customers.

When asked what advice he would give budding entrepreneurs, Kapanga provides three top tips:

  1. Write all your business ideas down;
  2. Do it now: Don’t wait for the perfect time as it will never come. The know how to run the business only starts when you are in it;
  3. Hard work will make your business a success.

He also stresses that education is important. “While I may have struggled with formal education, I make sure to constantly surround myself with business-minded individuals by attending workshops, online education courses, networking events and business management seminars.

“I firmly believe that lessons are not only learned in the classroom. To succeed, you need to always be in the know, and this is why I strive to read as many books on entrepreneurial subjects and stay in touch with business owners and motivational speakers,” Kapanga concludes.

No business is too small for a proper budget

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Many business owners mistakenly think their operation is too small for a formal budgeting process. The budget (of sorts) that many business owners keep inside their heads is often more like a basic recipe, and is usually inadequate to deal with the constant change that every business is subject to.

This is according to Jeremy Lang, regional general manager at Business Partners Limited, who says that no business is too small for the discipline of hammering out a formal budget – which needs to be used daily in the management of a business.

He says that proper and thorough budgeting is beneficial to a business as it clearly impacts on its long-term growth prospects. “Business owners who compile and use formal budgets know well in advance when cash will run out and can plan for it. They can also plan properly for business expansion and their financial decisions are often based on carefully thought through facts and figures. In short, budgeting gives them financial control over their businesses.”

Lang says that a business owner must ideally budget at least once a year for the 12 months ahead, but in order for the exercise to be in any way meaningful, the process must meet a few crucial requirements:

  1. The business owner must be involved in setting up the budget. This exercise provokes thought (on the part of the business owner) and it assists in planning once he / she sees the detail. One shouldn’t be leaving a budget up to a bookkeeper or accountant.
  2. An annual budget that is drawn up only to be kept in the bottom drawer means nothing. The value of a budget comes to the fore only when a business owner constantly reviews it, consults it, adapts it and compares the forecast figures with the actual figures – at least once a month, in order to identify material variances.
  3. A budget based on actual figures from previous cycles is a good platform to start with.

A budget for any business should include at least a sales forecast, a cash-flow forecast, and income and expenditure forecast, a capital expenditure forecast and a balance sheet forecast, says Lang.

He explains that of these, the most important working document for any entrepreneur is the cash-flow forecast. “Without a cash-flow forecast, a business is at a high risk of running out of cash at some point.”

“Many of the common mistakes that business owners make in budgeting has to do with the cash-flow forecast. It is very important that the cash budget takes into account the realities of the business’s debtor and creditor cycles. Business owners must take into account the cash lag from the date of having to pay suppliers to the date on which payments are received from customers.”

Lang adds that often business owners neglect to work taxes such as PAYE, VAT and provisional tax payments into their cash-flow forecasts.

Another crucial part of budgeting is the sales forecast, which needs to be as accurate as possible, says Lang. “One of the greatest strengths of entrepreneurs – their optimism and can-do attitude – can also be a limitation if sales predictions are set too high. Realistic yet challenging sales forecasts should be set.”

He warns that despite its obvious benefits, budgeting is still often neglected by business owners, due to factors such as sudden spikes in sales and increased cash flow, or absolute focus on day-to-day operations. “It is very easy to drop your guard and take your eye off finances and business owners need to guard against these bad habits.”

Lang advises such entrepreneurs to rope in support from an advisor or reputable accountant who could help with drawing up a budget. “The mere step of making an appointment with an accountant helps to enforce the discipline of preparing for the meeting, and taking a step back from the operations to reflect on the finances.”

He says that business owners who struggle with budgeting often find that, once they grasp the basic principles, and become comfortable with using spread sheets, compiling and reviewing budgets do not take much effort. “It is not a complex, nor daunting exercise. All business owners need to do is seek proper advice and support, and then dedicate time to draw up a budget,” concludes Lang.

Simple budgeting is better for a tough trading environment

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Just as the South African finance minister needs to ensure that the national budget is realistic and attainable, local entrepreneurs need to ensure they have their annual budgets in optimal order. The effective planning and prioritising of a budget is one of the most important elements of a business, and key to the future of a business’ financial well-being.

This is according to Kobus Engelbrecht, spokesperson for the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and Business Partners Limited, who says that good budgeting sense and awareness will play a pivotal role in leading a business through tough economic and trading conditions.

The recently released Global Entrepreneurship Monitor (GEM) 2015 / 2016 Global Report states that a lack of profits or finance accounts for more than half of business discontinuances. In South Africa, over one in four business exits are due to financial difficulties. “In the current marketplace South African entrepreneurs find themselves operating in, money is tighter than usual. Apart from consumers feeling the pinch and cutting back on their spending, financial institutions are also tightening their lending criteria, making it increasingly difficult for entrepreneurs to access additional funding if it is needed.”

Engelbrecht says that during challenging trading conditions, greater attention should be given to budget allocation. “Although forecasting and developing a budget in a challenging economic climate can be difficult, it is necessary for the survival of a business.

“Extra time should be spent on reviewing and narrowing budgets, as without a well-managed budget, a business can easily find itself in trouble. Not only will a clear budget and targets offer direction at management level, but it will also assist staff at an operational level.”

Engelbrecht offers entrepreneurs the following advice on how to stay on top of their finances in 2016:

Stay in touch:

Market information and research are key ingredients to maximise opportunities and minimise losses. Interact regularly with your clients, employees and suppliers and make a concerted effort to stay up to date with new developments that may benefit, or hinder, your business. If you are aware of what your market requirements are ahead of time, you can minimise incidents of loss.

Buckle up:

By doing a quick inventory check, a business owner can quickly refine excessive costs. These costs may include small items, such as coffee or office printing, or something much larger, such as a work process that could perhaps be conducted in a more efficient method. Entrepreneurs should be encouraged to communicate these cost cutting initiatives to their staff and encourage employees to get involved. Often you find that a business’ employees may not be fully aware what the minor daily expenses at the office can quickly add up after a year, or even in a month, in real terms on the business’ turnover.

Be Realistic:

Cash-flow needs to be closely managed and should not be rigid in theory to make the entrepreneur feel more positive about the financial future of the business. Businesses need to continue to spend money during this downturn to continue operations, but just at a more sensible rate. Provisions however should be made in the cash-flow to account for economic downturns and how the business will prepare for prolonged periods of a downturn while it waits for the next positive business cycle.

Back to basics:

One of the many reasons it is difficult to keep track of money spent is due to the cashless society that businesses operate in. While a good way to avoid unnecessary and overspending is to make use of cash payments, this isn’t always realistic. Instead, entrepreneurs could treat their budget books as cash payments and log all transactions as and when they take place. It may seem like a tedious activity, but it doesn’t need to be a complicated system – a simple excel sheet could work. Not only does this help to closely watch budgets, but an entrepreneur can also be updated with his business’ transactions daily.

SA businesses encouraged to create incubators to develop tomorrow’s entrepreneurs

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“If all business owners in South Africa commit to mentoring one young entrepreneur, we have the potential to double entrepreneurship in two to three years.”

This suggestion was made by a local entrepreneur at the inaugural 2015 Sanlam / Business Partners Entrepreneur of the Year® Alumni Association, an entrepreneurial platform established in an effort to stimulate conversation and action amongst established local entrepreneurs.

During the session the entrepreneurial community – consisting of over 50 past competition title holders and seasoned South African business owners from across various sectors – recognised the urgent need for business incubation in South Africa, and raised valid points about how seasoned business owners can play a vital role facilitating and building entrepreneurship in the country.

Now in its 27th year, the Sanlam / Business Partners Entrepreneur of the Year® competition holds a database of top entrepreneurs and through the alumni, we seek to harness entrepreneurs’ expertise to remove the barriers they see as hindering entrepreneurship within the country.

Entrepreneurs in attendance agreed that small and medium enterprise (SMEs) owners underestimate the value and the difference they can make by guiding and supporting potential entrepreneurs who need support in starting or growing their business.

Now more than ever the market needs more employers

The recently released GEM Africa’s Young Entrepreneurs report states that by 2040 Africa’s young workforce will be the largest in the world, surpassing both China and India. In South Africa, this potential workforce is largely unemployed with the figure already reading 53% when compared to the adult population figure of 21%.

In South Africa, the formal sector is increasingly feeling the pressure and is unable to serve the current employment demands. This pressure is only set to grow if additional measures to drive youth entrepreneurship are not implemented in the country.

To curb this, youth need to be encouraged to pursue entrepreneurship as a viable career option. More importantly, young entrepreneurs embarking on the journey need to be supported in order to succeed so that they too can develop into successful entrepreneurs who will go on to create additional job opportunities.

South Africa’s youth are being taught to be job seekers, rather than job creators.

Past GEM research shows that only 11% of South Africa’s youth indicate that they intend to start a business in the next 3 years.

As a country, we need to encourage entrepreneurship from a young age. Education institutes can only inspire youth to a certain degree. Families need to groom their kids to become entrepreneurs and young, budding entrepreneurs need to have access to business owners they admire and spend time with them in a working environment where they can experience an entrepreneur’s passion for business first hand.

Leading by example

A Western Cape based alumni member operating in the construction space recently implemented an internal mentorship programme and incubator space within his business as he believes that ‘giving someone an opportunity can lead to great things’. The programme provides a platform for start-ups to make use of his office’s infrastructure, whether it is a desk, access to the printer or use of the boardroom. The entrepreneur also mentors young entrepreneurs by providing advice when needed, as well as introducing them to the business world by allowing them access to business engagements or seminars.

While there are barriers to entry for young entrepreneurs, if the small business community can inspire more youth to consider entrepreneurship, one battle will be won.

In South Africa, there aren’t enough grassroots organisations that equip young entrepreneurs with technical knowledge. A retired entrepreneur in attendance said that having recently mentored her son who owns a business, made her realise how desperately the youth seek guidance. She explained that while they have the passion and ideas, they struggle to implement these ideas and that more should be done to make it easier for them to grow their business.

The youth therefore need to have the opportunity to shadow a seasoned entrepreneur and be shown what it takes to run a business and what can be achieved with commitment and dedication.

Give back and get back

Not only are these mentorship and incubator initiatives relatively easy to implement, but entrepreneurs can also reap rewards from these engagements. Entrepreneurship can be a lonely job and an incubator environment can create an immediate sounding board for your business. It creates an opportunity for you to also learn and possibly think of new ways to do business.

Gugu Mjadu, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition and co-facilitator of the alumni events which were hosted across the country in 2015.

SA entrepreneur recognised for cutting edge approach to job creation in hairstyling industry

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Lewis Thomas, owner and founder of Partners Hair Design, has been named the 2015 Sanlam / Business Partners Entrepreneur of the Year’s Job Creator of the Year® at an awards ceremony held in Johannesburg this morning. Thomas was recognised due to the significant work he does in educating and empowering individuals within South Africa’s growing hairstyling community.

After establishing Partners Hair Design 31 years ago, Thomas established the Partners Hair Design Training Academy (PHDTA) with the aim to educate, empower and equip aspiring local hairstylists with the necessary tools to succeed in a very competitive industry. The academy is SETA accredited and provides solutions, aligned with the latest in global hair styling trends, to both the general public, as well as Partners Hair Design staff.

The training academy offers a full-time course over a 12-month period to learners, thereby enabling them to complete all three academic levels required for a full ladies hairdressing qualification in one year, and empowering them to enter the local job market far sooner than after the standard three year course.

Lewis has a very hands on approach and plays an integral role within the academy, as he believes that it plays a critical role in growing the business, as well as the hairstyling and beauty sector, as all students are instilled with global standard skills, professional values and work ethic. He explains that the training includes a fully-functional salon that accurately simulates a day’s work in a salon, empowering graduates with real-life skills and experience. “In the simulation they work with real-life hairstyling products from the larger beauty houses, and are trained in the use of the in-salon software that is commonly used by large players in the hairdressing industry.”

In addition to the role that Thomas plays in education, Partners Hair Design employs approximately 250 individuals nationally, who are exposed to continual on-the-job training and education, which extends to advice on savings and financial wellness, dress and even diet. He says that professional, intensive and personalised training and education is the most important factor which differentiates Partners Hair Design not only from other businesses in the industry, but often from businesses in general.

“Our staff are our most important asset, not only as they are the essence of our business, but because we care for them as individuals,” explains Thomas.

Feroze Oaten, a member of the Sanlam / Business Partners Entrepreneur of the Year® judging pane, says that Partners Hair Design epitomises what the Job Creator of the Year® award stands for. “Thomas and his team not only employ a significant number of employees throughout South Africa, addressing unemployment rates of the communities which the businesses serve, but also play a key role in continually uplifting and training their employees with world-class skills.”

Thomas believes that entrepreneurs should be celebrated and recognised due to the important role they play in society. “As with most global or multinational businesses which employ thousands of people it starts with just one person with an idea – the entrepreneur. This person focuses on the idea, overcomes the obstacles and ultimately reaps the rewards on his or her journey.”
For more information about Partners Hair Design visit www.partnershair.co.za

Family ties that bind businesses

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Tamsyn Ferreira, 2015 Sanlam/Business Partners Entrepreneur of the Year® entrant and owner of Alifurn Outdoor Living – a family owned and run outdoor furniture business – started her business five years ago from humble beginnings in a garage. Since then Alifurn Outdoor Living has grown leaps and bounds, and has firmly established itself as an innovative and reliable partner in the leisure furniture sector.

Tamsyn qualified as a Financial Manager in 2004, and followed the trend of the time by travelling to the UK with her then boyfriend (now husband), Wayne, after successfully applying for a two year work/travel visa. “After a six month contract at Shell Oil’s Treasury Centre, I was offered a permanent position, which extended our stay in the UK for four years. Despite the amazing experience that the position offered, I knew that South Africa was where our hearts were, and having both grown up in Ballito, we wanted our children to have similar happy childhoods that we were afforded,” says Tamsyn.

Three years later Tamsyn was married, working at a large corporate in South Africa and starting her own family. It was during this time that she realised that she craved independence and the freedom to raise her children on her own terms whilst still forging a career for herself. Her father, Gary, then offered her the ‘terrifying’ opportunity of being her own boss after spotting an opportunity in the form of a struggling furniture manufacturing business that was being operated from a garage.

“I had no manufacturing, nor furniture-making experience, but with my business background, and my father’s vast clothing manufacturing knowledge, we decided to purchase the business. I wanted to support my family, but also wanted to create opportunities for those in our community who had no access to training and give them the same opportunity I was looking for – the opportunity to give their children a brighter future,” says Tamsyn.

Since 2011 Tamsyn has poured her heart, mind and soul into building Alifurn, with the continued support and input from her father. “We have grown from five employees in a tiny garage to a large factory run business which employs 20 people.”

Tamsyn says that she wears many hats in the business as she juggles the sales, human resources, marketing, accounting, as well as the administrative functions. She is quick to add that whilst this has been a huge undertaking, she has enjoyed putting into practice what she learnt from her B.Com (Financial Management) degree, as well as learning about manufacturing and running a business.

Alifurn is committed to being proudly South African and therefore only makes use of locally produced materials to create quality products. “My aim is to meet the needs of my customers in ways that are economically, socially and environmentally viable. Job-creation and community development are also top of our priority list, and we strive to develop employee skills through training programmes so that they are equipped for other opportunities that arise.”

When asked how she succeeded in growing the business, Tamsyn says that the task wasn’t easy, as the business hasn’t always had the positive reputation it has now, and therefore relied heavily on word of mouth marketing tactics and client referrals. “Excellent customer service and astounding quality will result in a favourable reputation with your clients. The time, effort and pride that each employee puts into every aspect of Alifurn shines through to the customer with every interaction.”

Tamsyn explains that the greatest challenge the business faces is seasonality, due to the nature of the products at Alifurn. “Such products are subject to inconsistent trade during the winter months, forcing us to re-strategise and look to other markets where seasonality isn’t such an impact, such as interior decorators the hospitality sector.

“Growing a business in a global recession, amongst industrial strikes and national electricity shortages has also forced us to be strategic. Although the recession meant tighter budgets for everyone, homeowners and the hospitality industry alike, I refused to compromise on quality or my core values in a bid to cut prices.”

Tamsyn advises that business owners should seek advice from a mentor at the beginning of any venture as the journey can be a rollercoaster of emotions. “Networking with like-minded people and taking advantage of the wealth of knowledge that people around you possess will ultimately lead to success.”

Looking to the future, Tamsyn hopes to grow her business’ knowledge by being exposed to like-minded entrepreneurs, such as past winners of the Sanlam/Business Partners Entrepreneur of the Year® competition. She also wishes to use the competition as a platform in which to grow Alifurn further, which will enable her to employ more staff.

Avoid making foolish business mistakes

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Starting a business is a daunting task, and growing the business, or even just keeping it afloat, can be even more overwhelming. Many new businesses do not survive this initial phase due to the business owner making mistakes during the first few fragile years of operation.

Christo Botes, spokesperson for the 2015 Sanlam / Business Partners Entrepreneur of the Year® competition, says that while some mistakes can sometimes be fatal to a business, they also teach entrepreneurs very important lessons.

Botes says that growing a business takes time, patience and practice, and entrepreneurs should aim for consistent and profitable growth, which is sometimes a struggle in the early years. “Growing a business takes more than just a great idea. During the business’ growth stage, entrepreneurs are bound to face challenges where they may stumble, but this is the nature of venturing into new territories. Often we see new businesses with great growth potential falling short due to costly, and sometimes, avoidable, mistakes.”

Botes points to some hurdles entrepreneurs fall victim to when growing their business, and provides tips on how to avoid these:

The need for speed

While it is advisable to enter the market as early as possible when noticing a gap, and to leap at opportunities that present themselves, rushing your market research and not planning sufficiently for such a venture can be detrimental to your business. Rather take a step back, analyze the pros and cons and do the necessary due diligence.

Remember that concepts take time to develop, and investing enough time and resources in building the business, marketing and distribution plans will ensure you reap great rewards in the long term.

Procrastination

Although rushing business growth may be harmful, waiting for the ‘perfect’ time may prove more detrimental to your business. By delaying the process, you run the risk of losing out on potential income, as well as potentially wasting savings in the lead up to the launch. If you are uncertain about specific processes, rather seek guidance from a business expert or organisation, such as the Business Partners Limited’s Entrepreneurs Growth Centre.

Being an expert in everything

Emerging entrepreneurs are always under pressure when it comes to resources and time, and therefore aim to achieve as much as possible in the shortest time. This is the most common pitfall of entrepreneurs and small business owners in that they may find it difficult to hand certain tasks over.

Entrepreneurs should rather seek advice from fellow partners (if applicable), as well as industry colleagues and experts. It is important to ask for help on areas you aren’t certain about as this will avoid having to rectify mistakes that might cost more than what you would’ve spent had you hired experts and advisors from the beginning. Successful entrepreneurs are those that put their trust in, and delegate responsibilities to people who have knowledge in their respective fields and responsibilities.

Not understanding technology

Technology is here to stay, and the internet, social media and other digital platforms have not only made business move at a much faster pace than before, but also offer the opportunities to maximize business revenues. Entrepreneurs who understand the role that technology plays in business processes, from operational to executive levels, will appreciate the amount of investment, both time and capital, that needs to be spent to reap the rewards.

Botes remarks that it is not easy to grow a new business, and therefore a few small mistakes are expected. “There are however methods which will assist entrepreneurs in not repeating the same mistakes. If you do your research, and surround yourself with information and experienced people, it becomes easier for you to make better, more informed decisions,’ concludes Botes.

Expanding your workforce – what entrepreneurs need to know

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Entrepreneurs often take on many roles within their own business as they believe it is solely their responsibility to make a success of the business and often times they have to play these roles when the business is still small and cannot afford additional staff. While the business is an entrepreneur’s prize possession, it is impossible for one individual to sustainably grow the business singlehandedly.

Kobus Engelbrecht of the Sanlam / Business Partners Entrepreneur of the Year© competition says that a growing business can face numerous challenges, one of these being when to employ staff. “It may seem daunting for entrepreneurs to hire their first staff member, both from a trust and financial point of view. However, in order to grow a business, it is crucial that an entrepreneur has capable employees around that can support and assist the developing and growing business.”

He says that the day-to-day running of a business can quickly become too much for one individual, and can easily distract entrepreneurs from spending the time necessary to grow the business. “Additional staff members will not only provide the entrepreneur with additional time to focus on the greater business objectives, but will also widen the business’s pool of knowledge and resources.

“Hiring a driver could for example save an entrepreneur many hours which would have been spent on the road instead of in the office. Hiring an employee to manage the administrative side of the business will also provide more time for the entrepreneur to focus on the more complex duties which can drive additional income.

Engelbrecht says that hiring the correct type of employee is crucial, and can be tricky. He points to the latest fourth quarter 2014 Business Partners Limited SME Index, which revealed that SME owners have average confidence levels of 58% that they will find staff with the right skill set and experience. Skills were also listed as one of the main challenges SMEs believe they are likely to face in the next six months.

The next step after acknowledging that additional staff members are necessary is developing a clear and comprehensive written job description that stipulates all duties and responsibilities, says Engelbrecht.

“It is costly to commit to an employee’s salary, and shouldn’t be taken lightly and without research. Outlining the new role within the business will help ascertain the scope of work, and whether the employee should be part-time or full-time and whether you should group some roles together, for instance a marketing person can double up as a receptionist. Entrepreneurs should also research whether the option to outsource certain tasks to freelancers could be more viable. Such suppliers may also have more experience than a full-time employee within the business’s price range.

He adds that a bad hire can also result in a loss of both time and money, and offers some advice when seeking potential employees. “Don’t rush the process of hiring an employee. Ensure that the individual has the necessary experience and references, and that they are suited to a small business work environment – i.e. a setting without as many stringent rules and regulations as a larger corporate. It is also advisable to extend your recruitment search to your personal and business networks, however beware not to hire family members without the required experience. You can also ask for referrals from industry colleagues or friends. Not only will this save you time of placing adverts and searching through CVs, but you are also likely to find a more suited candidate.”

When hiring new staff, entrepreneurs also need to be aware that they are creating a new role for themselves too, and that it is crucial that they embrace their role as a leader. “Workforce management and effective training of new recruits will result in benefits and opportunities – for both the employee and the business,” concludes Engelbrecht.

Office interior entrepreneur sells creativity and imagination

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The saying – ‘If at first you don’t succeed – try, try again! – is definitely true for 2015 Sanlam / Business Partners Entrepreneur of the Year ® entrant, Gary da Silva, who has embarked on three entrepreneurial ventures over the past 20 years, and is testament that persistence pays off. As a result of his entrepreneurial endeavours Gary truly believes that mistakes made along the way can only aid future development and growth.

Gary started his entrepreneurial career in 1995 when he started a company which built solid wood log cabins. In his second attempt at entrepreneurship, Gary entered into a partnership with a friend in 2007 to form a second hand office furniture business, but due to the recession in 2009 the business experienced a dip in annual turnover, and it was mutually agreed that the partners go their separate ways.

With only a laptop and a cell phone in hand, Gary then started IYC Commercial Interiors, an office and restaurant furniture supplier, in April 2009 when the South African economy was at the height of the global downturn.

When asked about some of the entrepreneurial challenges he has faced, Gary says that consistent turnover has been one of his biggest obstacles. “We traditionally only have nine full months of the year to trade, and during the remaining three months we only trade at a limited capacity, if at all due to holiday periods. Without a consistent income throughout the year, it has been difficult to counteract swings in the market.”

To overcome one of an entrepreneur’s biggest hurdles, cash flow management, as well develop his business further, he implemented various organisational changes in his business two years ago.

“I began attending as many part time management courses as possible to broaden my business knowledge, as well found two successful individuals from similar industries to act as mentors to myself and the business.

“I also hired a driver in August 2014 as I was spending six to eight hours on the road each day, and less time managing my business. An office manager was also hired to free up my time and allow me to work on sales and develop my business further. This in turn has enabled me to broaden my service offering, and develop my business further,” says Gary.

To counter the slow periods of the year and to provide additional income, Gary decided to start a home furniture company after much due diligence and market research, which will go live in May 2015. “As most consumers make their home furniture purchases in December, when they go on holiday, this will counteract the slow periods that we experience in the office and restaurant furniture business.”

An improved marketing strategy was also implemented to drive sales. “An e-commerce platform, which is supported by a Customer Management System Google AdWords to drive traffic, has been implemented along with various social media platforms, which will drive sales during quieter months.”

As a result of his years of experience, Gary has noted that entrepreneurs need to be kind to themselves and offers the following advice to aspiring entrepreneurs: “Set a working week and working hours, as working an 18 to 20 work day means that you are not managing your time properly, and certainly not being productive.”

He adds that it is also very important to take holidays. “Take at least four long weekends per year and one long holiday, and leave your cell phone and laptop behind. If your staff cannot manage the business for a few days, they haven’t been trained effectively, or they haven’t been empowered enough.

“Most importantly believe in yourself, and stay calm under pressure. As an entrepreneur, you are already a super hero – you don’t need to prove it.”