Q: What are the key personal characteristics that go hand-in-hand with business success? — Titto Mbuvi
All sorts of people find success as entrepreneurs, in every profession and area of life. What many have in common is that they’re ready to try and fail while they are figuring out which of their ideas will work, and so perseverance and courage are an entrepreneur’s best assets, as I’ve mentioned in previous columns.
A characteristic that I’d like to add to that list is self-awareness, because it can speed up that learning process and help you along the way.
Like most other companies, we at the Virgin Group have experienced a number of failures along with our successes – it is so easy to get things wrong. After you’ve launched one or more businesses that take off and start growing, it’s tempting to think that you know what you’re doing. Then, after you’ve started up another new venture, seemingly along the same model, you find to your astonishment that it’s about to fold.
This is what happened when we launched Virgin Cola in 1994. We started out with so much ambition, and we had a real impact: Our new business shook Coca-Cola to the core. We heard later that every meeting the top executives had for nine months was dominated by the words “Virgin Cola.”
But as time went on, we realised that we’d failed to adhere to our own rules. Virgin specialises in shaking up industries where consumers are getting a raw deal, but there was no great dissatisfaction with Coca-Cola, Pepsi or the other soft drink brands at the time. Why would customers want to switch to Virgin Cola? After all, we weren’t offering them anything that was radically different or much better value, and so the business was a financial failure.
With Virgin Cola, we were so intent on repeating our model that led to previous successes that we didn’t notice the problems with our idea. But we always learn from our failures, which makes us better at being self-aware – as has answering all the questions over the years about Virgin’s going into new industries.
I’ve found that knowing your business and yourself can also help you to know when to follow your instincts, so you can find the courage to move ahead and ignore the advice of naysayers. When we launched Virgin Atlantic in 1984, many people doubted us, assuming that we wouldn’t know how to run an airline since we had no experience in the industry – at that time we were known for our music label, Virgin Records.
We hired experienced aviation experts for help with logistics, but as we’d suspected, our lack of experience in the business turned out to be an asset.
My team followed me despite these very logical criticisms, not just because it was obvious that the industry needed change, but because we knew our strengths: We knew how to entertain people, and how to find out what amused them.
This wasn’t anything the other airlines were doing, and so we were able to offer something new: a fun, entertaining experience at 35 000 feet.
Self-awareness can also help you to persevere as you carry out your plan. When we launched our passenger rail service, Virgin Trains, in 1997, we were new to an industry again, but we had a bold vision: Our high-speed tilting trains would be fitted with comfortable new airline-style seats and we would offer great services like good food and Wi-Fi.
It took years to build and bring in the new trains and prepare the rail system for the new technologies, and so we had to use old train cars and the outdated system for a long time. But we knew who we were and how we wanted our new rail business to work, and that helped our people to weather the criticism along the way.
With the new trains and refurbished tracks, we have been able to double the number of passengers we carry, from 14 million to 31 million per year, and speed up journey times.
How are the people on your team, with their particular skills and talents, shaping your company and making it different from others? What’s special about your product or service? How is your company helping your community and environment?
If you’re an entrepreneur or business leader and don’t have the answers to these questions at the ready, it’s time to meet with your team outside the office. Throw a barbecue or dinner, and start up a conversation about what you have done so far and what you want to do.
While the answers will change over time, talking about this now will help all of you to get a sense of where you’re going and what you’ve built so far, helping to prepare you for the next bumps you encounter. And what could be better than having dinner and drinks with your team, reflecting on all you’ve accomplished and what comes next?
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You Can Be an Inspiring Leader Regardless of Your Style. Find Out More Here.
To Get A Job Or Not Get A Job. What Are We Teaching Our Children?
Remember the days where if you went to school and studied a degree, you got a job and built a career that enabled you to retire comfortably? I don’t, in fact I’m not sure those days ever really existed. If they did, they are long gone.
Today STATS SA tells us only 1 in 3 of the youth in South Africa have a job, even worse still – 34% of graduates aged 15-24 are unemployed1. The bottom line is that there are not enough jobs to cater for every child that finishes school. Our children need to learn entrepreneurship. If we want a brighter future for them, we need to nurture, teach and develop the skills and behaviours required to create jobs of their own.
With no intention of knocking the school system it would seem for the most part it discourages entrepreneurial thinking on a fundamental level; it prepares students to become good employees. Tuck your shirt in, sit still, stand in line, do your homework, focus on the task, check this box, you get the picture. Three decades ago this may have worked but it won’t work when we are trying to teach our children to survive the forth industrial revolution and prepare for jobs that don’t yet exist!
It may sound like a cliché, but kids are our future. As a parent I believe one of the most important duties we have is to give our children the best possible start. We need to prepare them on how to live, survive and thrive in a world that is rapidly changing, mostly unpredictable and often unforgiving. This starts by identifying the skills and nurturing the behaviours that will give them the best chance for success.
Teaching entrepreneurship prepares our children for the future
Entrepreneurship encompasses so much more than starting and running a business. It’s a shift in mindset, a different way of thinking. Entrepreneurship views problems as opportunities and fuels creativity in the pursuit of solutions. All these skills can be applied to life.
Successful entrepreneurs are resourceful, self-confident and tenacious. They are great communicators and marketers, good at identifying and understanding risk. They have learnt from failure and made mistakes. Entrepreneurs are financially literate, understand cash flow and how to manage money. Again, these are skills that every child and student can benefit from.
To make it in the workplace of the future you will need to be self-confident, innovative, creative, motivated and curious.
Employers will need to hire staff that have the creative ability to innovate and ensure the longevity of their organisations. Those people that show entrepreneurial flair will be in demand in a world that is ever and more rapidly changing.
Exposing our children to entrepreneurship, teaching them the fundamental skills and behaviours required to start a business, and letting them know it is a career choice should be a requirement in all schools and endorsed and supported by all parents.
- Youth unemployment still high in Q1: 2018 http://www.statssa.gov.za/?p=11129
How To, In Practice, Distinguish Between Executive, Non-Executive And Independent Directors And Their Functions
Learn more about the differences in executive and non-executive directors.
Definition of a director in terms of the Companies Act
Section 1 of the Companies Act 71 of 2008 (Companies Act) defines a Director as “a member of the board of a company, as contemplated in section 66, or an alternate director of a company and includes any person occupying the position of director or alternate director, by whatever name designated”.
Powers of directors
Section 66 of the Companies Act determines that the business and affairs of the company must be managed by or under the direction of its board and that the board has the authority to exercise all of the power and perform any of the functions of the company, except to the extent that the Companies Act or the Company’s Memorandum of Incorporation provides otherwise.
The board of directors, for the first time in our current Companies Act has been assigned the legal duty and responsibility and play a very important role in managing the affairs of the company and making vital decisions on behalf of the company.
Number of directors required on a board
In the case of a private company, or a personal liability company, the board must consist of at least one director and the case of a public company, or non-profit company, the board must consist of at least three directors. A JSE listed company requires at least four directors. The company’s Memorandum of Incorporation may however specify a higher number, substituting the minimum number of directors required.
How to distinguish between executive, non-executive and independent directors and their functions
A clear distinction is noticeable between the different types of directors in practice, even though the Act does not distinguish between executive, non-executive and independent directors.
The below table gives a clear understanding of the differences between executive and non-executive directors:
Member of the board of directors with directors’ duties.
|Part of the executive team, as an employee of the company and generally under a service contract with the company.||Not an employee of the company.|
|Involved in the day-to-day management of the company.||Not involved in the day-to-day management of the company.|
|In addition to a salary, does not receive directors’ fees.||May receive Directors’ fees, but does not receive a salary.|
|Shareholders are not involved in approving their salary packages.||Shareholders must approve their fees by way of special resolution, in advance.|
|Employee entitlements apply, such as annual and sick leave.||No entitlements apply.|
|Has an intimate knowledge of the workings of the company.||They contribute to the development of management strategies and monitor the activities of the executive directors.|
|They carry an added responsibility. Entrusted with ensuring that the information laid before the board by management is an accurate reflection of their understanding of the affairs of the company.||Plays an important role in providing objective judgement, independent of management on issues the company are facing.
Independent, non-executive director
An independent, non-executive director does not have a relationship, directly or indirectly with the company other than his or her directorship. They should be free of any relationship that could materially interfere with the independence process of his or her judgement and they do not represent the shareholders of the company.
An independent, non-executive director should be evaluated on an annual basis to determine if they are still considered independent.
The role of these directors
All directors should apply objective judgment and an independent state of mind, regardless of the classification as an executive, non-executive or independent non-executive director.
Executive directors may be appointed as non-executive directors on other boards if this does not influence their current position and is in accordance with company policy.
Before a director accepts the appointment, they should be familiar with their duties and responsibilities and be provided with the necessary training and advice.
Managing Your Priorities And Learning To Say No
How you use your time determines the degree of meaning or fulfillment you have and the money you make.
Getting more done is not about managing your time; it is about how you focus your attention and intention during the time you have. When you focus on scheduling your day to do high priority actions, they are more likely to get done.
Since you can have more than one kind of high priority action, it is wise to define them accordingly by further prioritising your high priorities. High priority items or actions can fall under one or more of the following categories:
- Those needing to be strategically planned (working on the business)
- Those needing to be done in relation to yourself
- Those needing to be done in relation to your employees
- Those needing to be done in relation to your clients, customers, patients…
- Those needing to be done that are creative (new divisions, services, products, markets…)
- Those needing to be delegated outside your company (outsourced)
- Those needing to be delegated inside your company (insourced).
It is essential to master the art of saying no to anything less important.
When you are unclear about what your true highest priority or business mission is, distractions can take you ‘off track’ and consume your time, attention, energy, focus, power of concentration and productive capacity.
Related: How To Say No Nicely
Knowing what your highest priority business mission and primary objectives are prevents you from being as easily distracted by every so-called ‘opportunity’ that comes along. It allows you to be more discerning about the activities you choose to take on board and those you discard. Clarity of mission gives you the ability to ignore distractions, and that can be incredibly inspiring and empowering.
You cannot please everyone so don’t waste your time trying. Continually saying yes because you can’t bear the short-term pain of saying no will cost you greater opportunities and lead you to bite off more than you can chew. Your time is finite.
Block out all less important distractions. Give them up. Embrace your trade-off.
Try eliminating, or scaling back some of your activities to determine if reducing or eliminating them makes any real difference in your results. This also helps you determine which actions are truly the most productive priorities. Deliberately eliminate or at least reduce your trivial, unimportant, unnecessary and irrelevant actions. Your intentional limits can help you become more limitless.
Sticking to your own higher priorities each day raises your self-worth. Take command of your time before others do and tell them the truth, or they may possibly keep demanding from you. Your integrity and, at times tactful bluntness, will allow you to get your most important job done. Your true friends or colleagues will respect your time and your priorities.
Since your work will expand or contract to fill the time allotted (Parkinson’s law), if you don’t fill your space and time with high priorities they can become filled with low priorities. And, if you don’t consume your energy and material resources with high priorities uses they can become consumed by low priority ones. If you don’t intensify your day with inspired actions things can slow down. Your time x your intensity will determine your results.
Many distractions that are being initiated by others are often opportunistic in nature. Many are simply others trying to sell you something – an idea, a viewpoint, an opinion, a friendship – in exchange for your valuable life and time. Simply being aware of what is being sold allows you to be more deliberate in deciding whether you want to buy or spend time on it.
Gracefully, respectfully and reasonably saying no, may temporarily disappoint the opportunist, but eventually it will lead them to respecting and appreciating you even more. It shows that you are a professional more than just an amateur and that you value yourself and your time more than their distractions. It is wiser to have a long-term gain in respect than a short-term popularity.
So ask yourself every morning what exactly is the highest priority action step I can take today to help me fulfill my most purposeful, meaningful, productive and profitable dream tomorrow.
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