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Xola Ndziba: Lean Start-up Approach to Limu

Graduate applies lean start-up methodology to leverage the upward trend in online learning.

Monique Verduyn

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Vital stats

  • Company: Limu
  • Player: Xola Ndziba
  • EST: 2013
  • Contact: +27 (0)71 230 7622,
  • Visit: www.e-limu.co.za

 

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At age 23, UCT graduate Xola Ndziba is proving what innovation in learning means against the backdrop of South Africa’s ailing education sector. With just R5 000 and a degree in finance and economics, he launched Limu (Kiswahili for ‘learn’), an online school management system that enhances collaborative teaching, learning and research.

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Taking advantage of a trend

The growth of online learning systems, identified globally as a key technology trend in 2014, bodes well for Limu. As a portal, Limu enables parents and teachers to interact, allows leaners to access their schoolwork from anywhere at any time, and gives parents a real-time view of how their children are performing at school.

A number of top schools in South Africa, including St Marys Waverley, Kingsmead College and St Dunstan’s College, have adopted Limu and have reported that the increased involvement of parents has improved academic results.

Just eight months into the business, Ndziba is eyeing monthly turnover of R200 000 and has secured funding of just under R2 million from Gauteng’s high-tech business incubator The Innovation Hub, based on the originality of his business idea and his passion for development in education.

“I based the idea for Limu on the portal we had at UCT, which gave students access to everything they needed online. I never had to carry a bag. When I left varsity, I decided to develop a similar system for schools.”

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Keeping it lean

Ndziba attributes this early success not only to having a great idea, but also to his adoption of the lean start-up methodology, defined by Silicon valley entrepreneur Eric Ries, who says that if start-ups invest their time into iteratively building products or services to meet the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures.

“Instead of trying to perfect the product, I launched it at a few pilot sites and got immediate feedback on what was working and what wasn’t.

“I found out what users wanted and worked on that, rather than on what I thought they wanted. In the tech industry, it’s important to get your product to market ASAP, and get the users  to help you perfect it.”

The benefits of the lean start-up approach have already been well documented. It allows entrepreneurs to be more innovative, it prevents time wastage, and it enables them to be more successful, quickly.

As Ries points out, “Lean start-up isn’t about being cheap, it’s about being less wasteful and still doing things that are big.”

 

 

Monique Verduyn is a freelance writer. She has more than 12 years’ experience in writing for the corporate, SME, IT and entertainment sectors, and has interviewed many of South Africa’s most prominent business leaders and thinkers. Find her on Google+.

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Business Model

Organisational Design Disruptions Do Not Occur In A Vacuum: Future Business Models

What is the shape of the world in which models need to operate and how do they come together to build future value?

ACCA

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In today’s ever-changing world, organisations are using a disruptive business model design to build unique approaches to creating value and organisations that are ready for the future.

At all scales, from micro-enterprise to multinational, operating in multiple settings and contexts, rethinking business models has become one of definite ways of offering customers something truly better than what already exists.

To ensure sustainable business growth, businesses need to navigate modern economic development and societal issues and in so doing articulate what meaningful, inclusive and enduring value looks like. In the past, a linear approach to business model design may have sufficed – inputs enter a logical process that creates outputs of value.

Today, to truly deliver a value proposition that can flourish, an understanding of the way that complex adaptive systems come together to create both outputs and outcomes is required. ACCA identified12 characteristics that organisations are combining as they build new business models. The full model and characteristics can be read here.

The accountancy profession is well placed to support the growth of business models of the future that help build resilient, inclusive and prosperous societies, by leading in strategic roles. In order to be ready to make the most of these opportunities professional accountants will demand new skills. Financial acumen, technical knowledge and ethical judgement are attributes that the accountancy profession can uniquely bring to support business model innovation across the three spheres of value proposition, value creation and value capture.

Related: How SMPs Can Support Businesses Looking To Internationalise

But to navigate the contours of a changing economy, new mindsets are required. These include the ability to:

  • think like a system
  • understand how to capture and assess new sources of value
  • build creative capabilities to think differently and problem solve
  • adopt a long-term mindset.

Business models of the future: Systems, convergence and characteristics attempts to answer fundamental questions; why does business model innovation matter? What is the shape of the world in which models need to operate and how do they come together to build future value?

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Business Model

Developing A Business Model That Works

Use these six tips to create the financial section of a business plan that will get your company off the ground.

Scott Duffy

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The following excerpt is from Scott Duffy’s book Breakthrough.

What’s the first step in figuring out how to execute your big idea? Creating a working model for your business.

We’ve all been brainwashed into thinking that the best way to do this is to sit behind our desks and write a long, detailed business plan. You know the kind: It starts with a fancy cover and your mission statement, then describes your team, market, product, competition, and so on.

Most entrepreneurs spend a lot of time and resources writing their plan. Too often, they get feedback from all the wrong people. Their friends and family want to support them, but they’re telling the entrepreneurs only what they want to hear — that they have come up with the next Google or Apple or Tesla (keep in mind, none of this feedback is coming from customers).

By the time the entrepreneur gets to the last section in the business plan — the financials — he’s totally sold on the idea. Sometimes the financial section is left unfinished or dropped entirely as the business is launched.

And why not? We’re passionate. We’re committed. We know we can’t fail. So what are we waiting for? Let’s go!

Here’s the problem: Most entrepreneurs change their business model six times when working through the financial section of their plans. While running the numbers, they identify key distinctions with regard to income and expenses. They gain a deeper understanding of what it will take to break even and how to achieve free cash flow. As a result, they come up with better-informed strategies for attaining their desired financial outcomes.

The most important part of the initial business planning process, and the one people most often neglect, is getting your numbers to tell a story that makes sense for you and your investors. If you start at the beginning of the plan only to learn that your assumptions about the business don’t add up once you reach the end, you’ve lost valuable time and money.

Related: The Top Business Models For Your New Start-Up Business

Regardless of whether you’re in startup or growth mode or moving to the next stage of your business, mistakes can be costly, so here’s what I recommend:

1. Start with the last page first

Once I have a basic understanding of what I’d like to build, the market, my target customers, the busi­ness opportunity, and the product, I dig right into the numbers and create a simple one-page spreadsheet that clearly identifies how the money flows. Basically, I write business plans backward. I’ve learned that once the numbers tell the story you want, the rest of the plan will write itself.

2. Don’t wait

Don’t make this process more difficult than it needs to be. Limit your model to one page. Create the simplest, most basic spreadsheet you can that identifies income, expenses, breakeven, cash flow, and the capital required to achieve your outcome. Use conservative assumptions, and don’t rely on best-case scenarios.

3. Get out of the office

You’ll learn more about your business by getting into the market than you ever will sitting behind a desk. At least 50 percent of your time should be outside the office gathering information that can be applied to your plan. That means contacting industry insiders to learn more about the market, talking to prospective customers about their needs, and testing your competition’s products and services.

4. Be careful who you listen to

When we have an idea we passion­ately believe in, we’re convincing. It’s easy for our family and friends to tell us we have a winner on our hands because they want to be supportive.

But when you’re modeling your busi­ness, the people whose feedback matters most are current and potential customers. Listen to what they have to say and apply what you learn to your model. Let their feedback, and not your enthusiasm, sway your projections.

5. Don’t throw out negative feedback

Sometimes it can be difficult to absorb negative feedback in a constructive frame of mind because we’re so close to our projects and have so much on the line. We start rejecting and deflecting feedback that isn’t in line with what we believe.

But honest, educated feedback is like gold — use it to open your mind and ask tough questions about your assumptions. You must be obsessively committed to asking what you can learn from this feedback and how you can apply it.

This is especially important for people entering new markets where they don’t have prior experience. Getting feedback from others who’ve lived in the space will add to your perspective. Sometimes you’ll learn that there are things you don’t know as a newcomer that would significantly impact your financial results.

In fact, this holds true throughout your business’s lifetime. The entrepreneurs I know who’ve built the most successful and thriving businesses are obsessed with getting constant feedback from the marketplace and adapting their businesses based on evolving market needs.

Related: Developing a Stable Business Model

6. Be open to what the numbers tell you

The worst thing you can do is try to manipulate a model to match your assumptions. You need to approach your financial model with a completely open mind.

Recognise that it will probably take longer than you ini­tially thought to get to market, generate revenue, create profits, and accumulate the cash flow you need to operate and further invest in the business. By being open, you’ll be able to make distinctions, apply them to your business, and set yourself on a path to success.

You need to be clear on where you want to go and put a simple and adaptable plan in place to help you get there. The clearer your vision is upfront, the easier it will be to back a plan to help you get there. Being obsessed with customer feedback will enable you to tweak strategy in a way that evolves with the market and helps keep you on top of the competition.

This article was originally posted here on Entrepreneur.com.

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Business Model

4 Types Of Business Models To Suit Your Business Concept

There are four main types of business models, see which one suits your business concept.

Alison Job

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Different types of business models suit different types of businesses. A business model is the way that a company sells products to its customers. It describes how a business creates, delivers, and captures value.

What type of business model should you adopt?

A business model defines how the enterprise delivers value to customers, gets them to pay for that value, and converts those payments to profit.

There are four basic types of business model that any for-profit business will fall into:

  1. Manufacturer
  2. Distributor
  3. Retailer
  4. Franchise.
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