advice – Page 4

Any business owner can master successful networking

Posted on June 13, 2014 by Business Partners Limited

Here is some good news for business owners who are more comfortable with machines and production processes than with people: successful networking with people is every bit as systematic as networking with computers.

“You don’t have to be Miss Congeniality to network successfully with potential clients, suppliers and business associates,” says Corene Marx, marketing manager at Business Partners . All that is required is a strategy, some dedication, order and maintenance. In short, networking is a business process like any other that even the most unsociable techie can master.

This insight carries a message also for the sociable type of business owner for whom networking comes naturally: no matter with how much flair you are able to conduct your business relationships, you will do even better if you build a bit of a system around it.

Marx offers the following pointers to help business owners think about networking –a much-neglected system in many businesses. First, some general principles, followed by some tips on what to do when you are at a networking event.

Approach networking for what it is – a crucial business system like your accounting system, HR system, or production system. It means that you have to spend some time thinking about it, working on it and maintaining it. “It’s a recipe,” says Marx. “Once you’ve worked out your recipe, networking becomes easy.”
Define your target groups – if you don’t, you’ll end up chasing your own tail. How wide you should throw your net depends on your business. A tourism business may want to include entire country networks and sectors such as travel agents, while a niche tech business starts with a much narrower group of specialised suppliers, clients and business associates.
Networking only among your peers is not wide enough. It is inadequate for a printer, for example, to limit his networking only to the local printers’ association. Seek out clients and business opportunities upstream, downstream and adjacent to your sector.
Start with a list of people who are in your network already – your existing clients, suppliers and business associates, but be sure to add new people, or whole categories of people that you want to target. This is just the start – a healthy business network has new contacts coming in all the time, as well as having old ones removed as their relevance fades.
One of the key principles of effective networking is your ability to prioritise each contact, and that you spend most of your time cultivating those who are most important to your business. Think of a funnel – where a lot of contacts move in from the wide end, but only a few end up yielding results. Effective networking requires that that you constantly reprioritise your contacts as their importance to your business waxes and wanes.
You don’t need the latest customer relationship management software. They can be handy, but if money is tight you can effectively manage a large network with an ordinary spreadsheet using simple categorisation tools such as colour coding to prioritise contacts.
Make time to think, strategise and research each of your contacts, firstly to correctly prioritise each. Then, think about how you need to cultivate each of your categories. For example, you could decide to contact your “Category A” contacts at least once a quarter, invite them to a special event or treat them to lunch every so often. The next category contacts could be treated similarly, but perhaps less regularly, while your least important category simply gets your regular email newsletter, for example.
Relationships take time to develop, and are built on genuine interest and mutual benefit. The key is regular contact, but it does not have to be monotonous. Interactions can vary from a call to say thank you, to introducing a useful contact, sending an interesting article or referring a client (and even asking for advice is a good way to make someone feel important). Don’t leave these things to spontaneity – plan and schedule them.
Clean up your contact list regularly, not only removing redundant entries, but reprioritising each contact so that you invest most of your time and energy in the most important ones.
Internet-based social networking is important as a medium of contact, and be sure to maintain your presence on sites such as Facebook, Twitter and Linked-In as would your clothes – neat and fresh. But you don’t have to “hang around” there. True business networking happens face to face.
Think carefully about your business networking calendar so that you don’t waste your time attending events that yield little. But don’t be afraid to experiment to see which events work for you. Get out there.

So you’re staring at a room full of people over a platter of samoosas wishing you were back at the workshop. What should you do to get the most out of a networking event even though you’re not a natural networker?

First, relax. You don’t have to be the belle of the ball. You don’t have to pitch anything to anybody. Just the fact that you’ve managed to tear yourself away from your operation to be there is already a major step towards growing your networking skills.
Start by listening to conversations, even if you don’t participate at first. Sooner or later an opportunity will arise to ask a question and become part of the conversation. Carry your business cards for when you get a chance to introduce yourself, or have you smartphone ready if it’s a digital kind of crowd – or both.
As soon as you get used to such events, you will find out how easy it is to approach someone, introduce yourself and start a conversation.
It is always better for networking to do more listening than talking.
Don’t try to speak to everyone at an event, but also don’t monopolise one person. If you know who is going to be there, it is sometimes good to plan with whom you want to make contact before you leave.
Networking actually begins when you leave the event. Now, you have to be diligent in filing the contacts that you’ve made into your system, prioritising them, and in doing so scheduling the kind of follow-up needed. If it’s late and you’re not going back to the office, scribbling a note or two on the back of the contact’s business card is a good way to remind yourself who the person is and why you thought they could be a useful in your network.

3D printing set to boost SA entrepreneurs

Posted on June 12, 2014 by Webmaster

Futuristic as it may seem, 3D printing has the potential to change the way South African businesses operate, as well as introduce a new stream of entrepreneurs into the economy. From a global perspective, this invention has already created countless opportunities for businesses to differentiate themselves from competitors, with 3D printing products and services expected to approach $6 billion worldwide in the next four years*.

3D printing involves a printing device that layers liquids, powders, and sheet materials together in a digital model to accurately create a three-dimensional final product.

Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, says that although this technology is still relatively new to South African shores, its global success highlights the many opportunities that local entrepreneurs stand to benefit from, should they be able to capitalise on this innovative method of production.

Botes also points to recent research compiled by Canalys, an independent analyst company that strives to guide clients on the future of the technology industry, which revealed that the size of the 3D printing market, including 3D printer sales, materials and associated services, reached $2.5 billion globally in 2013 and is expected to reach $3.8 billion in 2014.

“Originally used for the production of plastic prototypes, the application can now handle a range of materials from titanium to human cartilage, and can print custom products, such as phone cases and jewellery, to shoe prototypes and even house structures. It is also predicted that as the technology develops, these possibilities will only continue to increase.”

Botes adds that while the implementation of 3D printing is evident in many sectors, from architecture to aerospace and medical, more recently it has altered traditional manufacturing processes. “Generally, smaller businesses operating in the manufacturing industry have outsourced their model designs to specific suppliers, thereby remaining dependent on the supplier for both the delivery time and the quality of the specific product.

“However, the development of 3D printing technology now empowers businesses to create innovative, customised products with a faster turnaround time, and without compromising product quality.

“Given that 3D printing is only restricted by computer-aided design competencies and printer availability, the technology is increasingly becoming a feasible option for a wide range of enterprises, resulting in a relatively low entry barrier for many entrepreneurs wishing to start a business after noticing a gap in the market.”

In terms of job creation, Botes says that 3D printing could potentially improve the sustainability of the local printing sector. “The new technology will force companies operating in the traditional printing industry to review and introduce new service offerings. This approach will not only create jobs, but maintain jobs in an industry that is facing discontinuation, due to the shift from print to digital.”

Botes advises that while 3D printing has endless possibilities, it is still in its early stages, especially in South Africa. “Local entrepreneurs considering investing in the technology must ensure that they seek advice from industry specialists. Customer research is also vital as the general public and customers may be hesitant or sceptical to use a product manufactured via 3D printing.”

He adds that change is inevitable, and business owners are faced with this reality on a daily basis. “Over the years, business owners have witnessed the shift from traditional business methods to more modern methods; specifically the shift to electronic and online platforms, and soon the evolution of 3D printing. These trends reiterate the need for local entrepreneurs to consistently innovate in order to avoid becoming irrelevant in their respective markets,” concludes Botes.

*Research by Wohlers Associates

Entrepreneurship attractive on the continent

Posted on April 3, 2014 by Webmaster

But SA hesitant to take the leap

South Africa’s economy is projected to steadily grow with 2.7% in 2014 and 3.2% in 2015, and according to Kobus Engelbrecht, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, this growth will result in many opportunities for local entrepreneurs. He says that as South Africa’s economy grows, so will the amount of business opportunities available for entrepreneurs to take advantage of.

“South Africa currently offers many new and exciting opportunities for entrepreneurs. However, in order to capitalise on these opportunities, the country’s entrepreneurial spirit needs to be both promoted and encouraged amongst the public.”

The recently released Global Entrepreneurship Monitor 2013 Global report, which measures the levels of entrepreneurial activity between economies, revealed that in the Sub-Saharan African (SSA) region an average of 69% of all respondents believe that there are opportunities available to start a business, 47% have intentions to start a business and 74% are confident in their own skills to start a business.

Engelbrecht says that these figures are extremely encouraging for the growth of an entrepreneurship culture in the region, yet South Africa – ranked as the largest economy in Africa by the World Bank – achieved levels below average in these categories. He says that when taking a closer look at the attitudes and perceptions of South Africa, the report reveals that despite slight increases from 2012, perceptions of entrepreneurship in South Africa remained rather low.

“The 2013 report reveals that only 37.9% (up from 35% in 2012) of respondents believe that there are opportunities to start a business in the country, and 42.7% (up from 39% in 2012) believe that they possess the perceived capabilities to open and run a business. These figures highlight the need for a culture of entrepreneurship to be fostered as opportunities are abound and many individuals possess entrepreneurial characteristics. Awareness around how to capture these opportunities and how to develop these skills just need to be created.”

The report also revealed that SSA had the highest average of Total early stage Entrepreneurial Activity (TEA), which refers to those individuals in the process of starting a business and those running new businesses less than 3.5 years old, when compared to the other global regions.

“While SSA reported an average of 26.6%, South Africa’s TEA is however only 10.6%, and the lowest in the SSA region.”

The report also revealed that South Africa’s established business ownership rate is only 2.9%, which ranks the country last in the SSA region. When comparing South Africa to Brazil, a fellow BRICS economy, the country reported an average of 17.3% and 15.4% for TEA and established business ownership rate respectively.”

While TEA contributes to dynamism and innovation in an economy, established businesses are an important source of stable employment for the economy. Engelbrecht says South Africa’s low business ownership rate is concerning.

“These figures need to remain balanced as while it is important that entrepreneurship is promoted, it is also key to support business growth in order to ensure that SMEs survive the first three year of existence, which are the most risky.”

“Government has acknowledged that small businesses play a pivotal role in job creation and economic growth, and in order to grow both these numbers, investment into small business must be provided. As a result training development initiatives offered by Government, such as Small Enterprise Development Agency (Seda), have been put in place to assist with the development of entrepreneurs and therefore minimise risk.”

He says that the culture of entrepreneurship in the country is growing slowly and it is starting to be viewed as a legitimate career option. “The 2013 report highlighted that 74% of respondents in South Africa, believe that entrepreneurship is a good career choice.

“While many respondents regard entrepreneurship in a positive light, this doesn’t always translate into individuals actually starting a business. Fostering a culture of entrepreneurship in the country and promoting entrepreneurship as a career path, along with support and advice on how to turn an idea into a reality, is important for improving entrepreneurship levels in the country.

“Individuals starting their entrepreneurial journey do however need to be aware of the challenges they may face so that they are prepared for the ups and downs of running a business. Although they may experience bumps along the road, it will be the most rewarding challenge they have ever undertaken,” concludes Engelbrecht.

Top business tips for 2014

Posted on March 11, 2014 by Webmaster

Our 2013 Sanlam / Business Partners Entrepreneur of the Year® winners share their top business tips

Education is an on-going process and according to Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, this is especially true for entrepreneurs, who are faced with new challenges on a daily basis. He says that seeking guidance from fellow entrepreneurs is vital for both the business’s and entrepreneur’s growth.

Botes says that a successful entrepreneur should never stop investing in the most powerful, trusted and best business tool at their disposal – themselves. “Running a business can be challenging and it takes hard work and perseverance to achieve success. However, by continuously networking and seeking guidance and advice from fellow seasoned entrepreneurs, one can obtain valuable advice from those who have walked, or are walking, a similar path.”

The 2013 Sanlam / Business Partners Entrepreneur of the Year® winners share their best business tips for entrepreneurial success in 2014 with local entrepreneurs:

2013 Small Business Entrepreneur of the Year® and co-founder of The Daily Buzz, Chris Brown:

Employees are a key asset to the success of any business. Ensure you put the correct people in the correct positions and look after them accordingly, as they will then in return take care of your business.

Anton Rossouw, owner of Life Path Health and 2013 Medium Entrepreneur of the Year®:

Conduct a detailed and thorough viability study and research financial projections. Identifying project scenarios will allow business owners to plan for the worst case scenario. While it may never play out in practice, having done these forecasts will proactively prepare the business for the future and will assist in recognising and dealing with any pitfalls that may come about in the future.

Margaret Hirsch, owner of appliance chain group Hirsch’s and the winner of the 2013 Lifetime Achievement award:

Master your trade. Instead of being an all-rounder, find your niche and become the expert that everyone needs – specialised skills are in high demand, so rather remain focused and become a specialist in a specific trade.

Jonathan Pepler, owner of Silverline Group and winner of the 2013 Emerging Entrepreneur of the Year® award:

Develop a strong business plan. The key to any successful business is to create a firm foundation, which can be achieved by establishing a concrete business strategy. Business owners must have a realistic strategy and action plan with set timelines in place. This will assist entrepreneurs in staying focused on what they want to achieve, when they want to achieve it and provide guidelines on how they going to achieve it.

Tommy Makhatho, owner BiBi Cash ‘n Carry and overall winner of Sanlam / Business Partners Entrepreneur of the Year® and Job Creator of the Year:

Do not go into business for the sake of money. Business owners should focus on creating wealth that will be built over time. The value in business is not what you get every day, but what you are investing over time.

Botes adds that whether entrepreneurs are already in business, or looking to start a business, it is beneficial to continually network with fellow entrepreneurs. “Top entrepreneurs attend networking seminars and workshops, even if they feel they have already ‘mastered’ the subject. They do this because they realise that the key to being a successful entrepreneur is on-going learning and networking with fellow entrepreneurs, which provides a great opportunity to learn the secrets of success from other established business owners.”

Quality checks for your business plan

Posted on February 11, 2014 by Sanlam

We all know we should check our cars before travelling. Equally important is the need to check your business plan for faults and potential failures before making it the core of your business, or using it to ask for financing. Here is a 6 point check:

1. Can YOU execute?

Failure to convince financiers of this aspect is probably the number one reason for rejection. More critically, it is probably the number one reason for early start-up failure. Points to check: Do you have enough knowledge to run the business? The entrepreneur behind a business which markets services needs to understand marketing, as well as the service. Do you have any experience in this field? Hobbies are often a help in this regard – for instance, enthusiastic cooks setting up catering companies. Do you have the time to execute the planned actions, and will your family support that? Entrepreneurship is not for the faint-hearted – there will be many late nights and early mornings. Can you take risks? If you are uncomfortable with being daring at times you should plan for safer businesses. Can you lead? You will need to tell people what to do and learn to make uncomfortable, even agonising decisions.

2. Have you done a sensibility check?

Most business plans I see have glaring flaws in them. For instance, listing all the grand marketing promotions and advertising planned and then providing a marketing budget of a fraction of that cost. Or not thinking about the capacity of the organisation to handle the projected customers. Are there enough tables in a restaurant to serve the projected number of meals? Can enough sales calls be made to get to the sales forecast? Will the cash flow support the raw material purchases needed? Check the whole plan with a cynical eye.

3. Is there really a reason for customers to buy from you?

Perhaps the second biggest reason for business failure. Take a hard look and answer the question: “Why would this business attract customers away from the companies they now buy from?” If there are insufficient reasons to convince an outsider, then the plan is likely to lead to failure. Think again or find a different business.

4. Are the sales projections realistic?

Entrepreneurs are optimists by nature, but forecasts should always be conservative. Check issues like sales per customer, the proportion of new business to existing customers and the expected win/loss ratio. Cut out the optimism – be realistic or pessimistic. Do not build a plan which is reliant on a marketing promotional plan that has never been tried before.

5. Have the key success factors and major risks been identified?

Your plan should identify the four or five factors that must be achieved for the plan to succeed. Sales running to forecast is usually one of those, but others may be customer satisfaction levels, quality standards, productivity, cash flow or others. These must be monitored frequently, at least once per week, preferably in a dashboard. Risks are equally important. Identify the four or five biggest risks to the success of the plan, have mitigation plans prepared and monitor frequently.

6. Do you know what your competitors are doing?

You must be able to position your company against its competitors with the differences clear in your mind. The test is that you are able to show the customers why they should buy from you, while talking with respect about the competitor.

Now that you have done your safety checks to your car and business plan, you may go away on holiday in a relaxed frame of mind. Enjoy!

This article was written by consultant Ed Hatton. See www.themarketingdirector.co.za for more information. Ed’s business advice blog is at marketingstrategy.co.za

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Give your employees some healthy options

Posted on November 18, 2013 by Webmaster

Like retirement savings and disability cover, medical cover is a crucial part of everyone’s financial planning. “Good healthcare can be expensive and medical procedures can easily set you back by tens of thousands of rands,” says Sharon Rubens, Managing Director of Completemed Healthcare Consultants, a division of Sanlam Healthcare Management. “Add to that our alarming accident rate and increasing levels of chronic disease, then medical cover becomes an absolute necessity.”

With many open schemes in South Africa, you want to make sure that you deal with a reputable service provider that has a good track record, is solvent and covers a wide variety of conditions and procedures. Do not be shy to do your homework and check on the scheme’s payment and claims history and annual average increases. Reputable schemes will have proper annual statements and good financial record-keeping that reflects the state of their finances and you can call medical institutions or healthcare consultants to enquire if they have experienced any trouble with payments from the scheme in the past. ”

As an employer, you also want to make sure that your employees have access to options that address all their needs, preferably at an affordable price. Although affordability is important, cheapest isn’t always best advice. “They should be basing their decisions on the mix of benefits which best suits their needs,” says Sharon.

When choosing a medical scheme, your employees should consider their individual circumstances carefully. Do they have minor dependents? How often do they visit the GP? Would they be comfortable paying for doctor’s consultations and medication from their own pocket or do they need a savings account to cover it. Do they or their dependents have conditions that require chronic medication or treatment? Does the scheme offer a comprehensive optical benefit should they or their children require spectacles? Does it offer a good dental plan?

Does the scheme pay 100% of the in-hospital charges, or will they have to cover a portion? “Schemes differentiate between actual tariffs charged by the medical institution and scheme tariffs (the maximum rate the scheme pays for the procedure, service or medication). If the scheme tariff is less than the actual amount charged, the member will be responsible for the shortfall or it will be deducted from the savings account where applicable. Knowing exactly how much the scheme pays for what can therefore prevent nasty surprises later.”

“Lastly, your employees should check exclusions and limits. Some schemes exclude claims on certain conditions for a limited period of time when you join, or require medical screening beforehand that may lead to permanent exclusions of a pre-existing condition. They may also limit claims on the day-to-day benefits if a member is new to the scheme, or has never belonged to a medical scheme before. “Make certain employees understand the above aspects, exclusions and limits before they finally settle on a choice,” says Sharon.

For added peace of mind, you or your employees should enlist the assistance of a professional who can ensure that they understand and consider that the benefits offered by the scheme match their individual needs. “Talk to a healthcare adviser who can guide you through all the above mentioned pitfalls and terminology, this will give employees more peace of mind.

If you need free advice when implementing healthcare policies or decisions, contact Completemed and we will assist in making the process a whole lot easier. Our purpose and passion is to assist Employer Groups in providing on-going healthcare advice to enable continuous enhancement of their employees’ wellness and well-being.

All our clients are provided with quality support and assistance in their dealings with various open schemes and medical insurance providers in South Africa.

Completemed contact details:

Direct client care line: 0860 122 340
E-mail address: info@completemed.co.za
Physical address: 2 Strand Street, Bellville, 7530.
Web: www.completemed.co.za

Turning Passion into Profit

Posted on November 15, 2013 by Webmaster

TommyMakhatho

Tommy Makhatho on winning the 2013 Sanlam/ Business Partners Entrepreneur of the Year® competition winner

We chat to this year’s overall Sanlam/ Business Partners Entrepreneur of the Year® competition winner, Tommy Makhatho, owner of BiBi Cash & Carry, about his entrepreneurial journey and experiences post winning the title.

1. What was your reaction to winning the overall Entrepreneur of the Year® award?

Every time I get asked this particular question I always have a different response. The reason for this is that I experienced a range of emotions, all of which were extremely positive. Overall, I felt overwhelmed and incredibly blessed to have a team such as mine – as the award would not have been possible if it wasn’t for them.

2. What does it mean to you to be recognised for your business achievements?

I never really thought about being recognised for my business achievements or sought to be recognised. Instead, it has always been about pushing the envelope and exceeding my own expectations. However after winning this award and being recognised for my business’ achievements, it has made me aware of where we have come from and what we have survived thus far. It has also provided me with the adrenaline and strength to pursue another 25 years. This recognition makes me realise that this is only the beginning of our journey and that people should never stop dreaming, no matter their age.

3. How was business been after winning the title – have you noticed more interest in your business post the awards ceremony?

Business has been great – especially the working environment! My team realise they are a part of a bigger dream and this has boosted staff morale and contributed to a motivated working environment. I have also been approached by many companies wanting to take the business to the next level. This had in the past not happened on such a large scale, but thanks to the awards, opportunities are now presenting themselves.

4. Any future plans for your business?

Yes definitely! As mentioned before, I am constantly dreaming whilst other people my age are preparing themselves to cash out, retire and play golf. I however, plan to stay strong so my dreams and goals can still be achieved. The best way to achieve these goals is with a steady mind and healthy body so that I can chase after them, and still be the first at the office and last to leave.

Ultimately my future plans is to grow my business to the point that my business rivals Shoprite, mention my name at every Shoprite board meeting due to my understanding of the market like no other retail company.

5. What is your advice for business owners considering entering the EOY awards?

I strongly advise that entrepreneurs and business owners, no matter their business size, take as many opportunities as possible, because a business is all about taking risks – both good and bad. There will always be that one shot that hits the target, so consider entering awards such as the Sanlam / Business Partners Entrepreneur of the Year® competition, as the exposure and confidence it gives you and your business is tremendous.

Bosses must support retirement planning

Posted on October 7, 2013 by Webmaster

With 51% of surveyed pensioners not making ends meet and 62% of job changers still not preserving their retirement savings, South Africa’s employers and business owners have a vital role to play in solving the country’s retirement savings shortfall.

This is the conclusion drawn by Sanlam after analysing the results of its 2013 Sanlam Benchmark Survey. Dawie de Villiers, CEO of Sanlam Employee Benefits (SEB), says National Treasury is keen to address the issue, but proposed measures will likely only take hold in 2015. This is why Sanlam believes its research points to the need for employers to step into the breach.

“According to the principal officers of stand-alone retirement funds, 47% of retirement fund members turn to human resources (HR) for retirement queries throughout their working lives and 32% ask HR for advice at retirement,” says De Villiers. But only 52% of employer funds have formalised strategies to advise active members. And the fact that only 26% have a built-in preservation strategy as a default option ends up perpetuating the trend for employees to spend their savings before retirement when they resign or are retrenched, adds De Villiers.

“An employee’s retirement journey starts on day one of employment and continues for the rest of their life,” says De Villiers.

Taking into consideration that employees would have contributed to some form of retirement vehicle for an average 28 years by the time they retire, it is disconcerting to think that nearly three decades of saving would not be enough to secure a comfortable retirement. De Villiers feels this is enough hard evidence for employers to step in and nudge their staff towards making informed decisions about their retirement financial planning.

Since the shift from defined benefit to defined contribution benefit structures, the risk and responsibility for retirement provision has rested largely with the employee. De Villiers does not advocate a return to the “paternalistic era” of the 1980s, but believes current results are unsatisfactory.

Most employees do not seem to care very much about retirement planning, with only 10% bothering to review the retirement benefit option they selected when they joined the fund. “They consider retirement as a very distant event and are not interested in the detail around it. In fact our research shows that people only seek financial advice on average 12 years before retirement,” says De Villiers. “If the employer or business owner works with every employee to develop a retirement strategy that fits into their overall financial plan and also helps them to understand the consequences of certain actions or inaction during their employable years, we would see a marked improvement in retirement statistics in this country.”

Happily, three out of four pension funds surveyed do offer pre-retirement counselling, but only 41% have a stated target pension. Retirement industry stakeholders such as trustee boards and benefit and asset consultants should make a real effort to ensure that the fund structure can support a successful retirement for each individual member, says De Villiers. Retirement funds need to gently nudge their members towards making decisions that would benefit them in retirement, without being prescriptive or taking away member choice, says De Villiers. And to make this a reality, many more employers need to put in place counselling strategies and ensure skilled resources are allocated to ensure their successful implementation, adds De Villiers.

“Over the past number of years our research has consistently pointed to a need for regulatory change in the retirement industry and we are extremely pleased that the wheels have been put in motion with Treasury,” says De Villiers. But until these proposals become reality, employers can do much to aid matters, concludes De Villiers.

Sanlam Employee Benefits is a leading provider of group life and disability benefits, institutional investments, risk services, fund administration, derivative based structured solutions to institutions and retirement funds through a number of specialist divisions. For more information visit the Sanlam Employee Benefits webpage or call 0860 100 539.

EOY entrant moving forward in the transport industry

Posted on October 7, 2013 by Webmaster

In light of October being Transport Month we chat to 2012 competition entrant Ashley van der Berg, Managing Director of Rail2Rail, about his journey as an entrepreneur in the transport industry.

1. Briefly describe your business and the industry you operate in?

Rail2Rail is a specialised concrete railway sleeper manufacturer, based in Kimberley in the Northern Cape.

2. Where did the business concept originate from and when did you start your business?

I noticed a project initiative being undertaken by Transnet (in respect of their enterprise development programme) and established the business in 2007 after we were commissioned to supply one million concrete sleepers to Transnet Freight Rail, for the maintenance of railway lines through South Africa’s 22 000km network.

3. Have you always aspired to start your own business?

I have always effectively been an entrepreneur from an early age. I am currently an active shareholder in two other businesses namely Levenbach Building & Roofing, a construction company and A & H Salvage, both of which are based in Cape Town.

4. Briefly describe some of the challenges that you have experienced as an entrepreneur?

Making concrete railways sleepers is a lot more complicated than it sounds, especially with the technology that is imported from Germany. The skills required to operate this technology have been in short supply, but as a company we have made huge strides in educating our employees, thus ensuring that our products produced are of the best quality amongst our competitors. Being able to secure a reliable supplier in the Northern Cape remains a challenge, particularly in light of our rapid growth.

5. What advice would you give to aspiring entrepreneurs?

Never give up! Find your niche, ensure that it is different and use it to your competitive advantage.

6. Where do you see your business in the next 5 years?

Being a key player in the in the supply and production of concrete railway sleepers in South Africa and continuing our company growth plan to expand our current client base and increase production capacity, which will aid our company to become more sustainable. Taking advantage of opportunities in the SADC region.

7. What does a day-in-the-life of Ashley van der Berg consist of?

My focus is on ensuring I keep a finger on the pulse of all aspects of the business, including the daily production reports completed by day and night shifts. I oversee and manage all financial aspects of the business, including cash flow updates. I also make a concerted effort to have regular meetings with customers, both existing and prospective.

8. What is your most memorable experience as an entrepreneur?

Witnessing the construction and opening of our factory, followed by experiencing the factory become operational, as well as seeing the business grow to a level which at first I thought was impossible.

9. What benefits has the development of the transport industry had on South African SMEs?

Transnet Freight Rail and the Department of Transport, as the decision makers in the development of the transport industry, have ensured that there are opportunities for SMEs to grow in this sector. Both entities have created realistic, achievable targets and have played an impactful role in the implementation thereof. In addition, transport (in other non rail sectors) play an important role for all SMEs as the sector ensures they receive supplies and deliver their finished goods and end product to their markets.

10. What are some of the key challenges SMEs owners face in transport industry?

The main challenge is a lack of competition. As we operate within a niche market, we are unable to compare our products to that of our competitors. I feel competition is healthy for any business as it ensures that the end product is of the best quality. Another challenge is the availability of financial assistance for entrepreneurs; this is a key barrier which hinders the growth of entrepreneurship within South Africa.

11. Why would you recommend that fellow entrepreneurs get involved with initiatives such as Sanlam / Business Partners Entrepreneur of the Year?

As an entrepreneur you have the opportunity to meet other entrepreneurs and listen to their success stories and advice. The media exposure you receive is also extremely valuable and lastly, it is an excellent benchmarking exercise.

Mentorship: Adding invaluable outside skills to your business

Posted on October 7, 2013 by Webmaster

Entrepreneurs are often exposed to duties, situations, problems and opportunities that many have never had to face before. Entrepreneurs also rarely have someone to discuss common problems with, or to turn to, for objective advice and honest feedback and this can sometimes lead entrepreneurs to feel like they have the loneliest job in the world.

According to Nimo Naidoo, project manager of the Sanlam / Business Partners Entrepreneur of the Year® competition, a mentor will not only help an entrepreneur avoid isolation, but also become someone that he or she can confide in, as well as share uncertainties or successes.

She says that it is rare to find entrepreneurs who possess all the right qualities to make a business tick. “Entrepreneurs could be technically strong, yet lack financial knowledge, which is a vital cog in a business.

“Cash flow management, procurement and information analysis are just some of the challenges that specialised entrepreneurs find themselves facing in today’s complex business environment – which contains many risks that determine a business’ success or failure. Highly skilled in their own fields of expertise, entrepreneurs sometimes find themselves floundering when it comes to the overall management of their companies, and working with a mentor will effectively close these gaps.”

Naidoo adds that often many business owners just don’t know where or who to turn to for assistance and this is when a mentor can be so valuable, particularly when a business is in financial or operational difficulty and needs turnaround management in order to become profitable again.

“A mentor is able to provide specialist skills, not only when urgently required, but also as a preventive measure to ensure the entrepreneur doesn’t find himself in a challenging situation.”

While mentorship is a relatively new concept in the small and medium enterprise (SME) sector, there is a growing trend among entrepreneurs for industry-related mentors, due to the immense value they are able to offer an independent business, says Naidoo.

“For the first time ever, entrepreneurs have access to the same skills and experience that the country’s biggest businesses have and are able to harness the skills of experienced business and professional people to assist them in the successful management of their businesses.”

When seeking a mentor, it is important for entrepreneurs to look for experienced business professionals in the same business, or industry, as their company, or someone who has accomplished similar goals. “Selecting someone who has relevant knowledge and experience will not only help entrepreneurs get their business to where they envision it being, but will also accelerate their own learning and growth as an entrepreneur,” concludes Naidoo.