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Alan Knott-Craig’s Answers On Selling Internationally And Researching Your Idea

There is no ‘one size fits all’ secret to start-up success. But there is a recipe that can be followed. It starts with being willing to go the extra mile: To know more about your business, customers and their needs than anyone else.

Alan Knott-Craig

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What is the secret to success? — Anonymous

Success is not about winning. It’s about not losing. In other words, being successful is not about increasing the odds of winning. It’s about reducing the odds of losing. There is one simple way to reduce the probability of failure. Go the extra mile.

In everything you do, do a little more than expected. Need to prepare a proposal? Format it, add page numbers, spellcheck, PDF. Need to instal a router? Arrive early. Finish early. Dress neatly. Smile. Need to refund a customer? Be polite. Don’t delay. Apologise. Follow up. Need to provide 5MBs? Provide 10MBs. Need to be at work at 6am? Be at work at 5.30am.

Go the extra mile. Over-deliver. Blow away everyone in every little thing you do. If you do that, from the littlest things to the biggest things, you will have the lowest odds of failure.

In other words, you will not lose. As an entrepreneur, not losing is winning. Go the extra mile. It’s less crowded.

Related: Alan Knott-Craig Answers Your Burning Start-up Questions On Ideas And Partnerships

I’m a virtual business on Johannesburg’s East Rand and I want to expand my target market to the US. I unfortunately don’t have any international network that I can tap into.

I’m investigating Fiverr, Reddit and Upwork as potential avenues of work and market research tools. I have also made contact with an international VA agency. What else do you recommend I do to break into the international market?  — Jade

Selling internationally is no different to selling locally. It’s all about growing your network, sweating your network, and putting yourself out there.

Everything you’re doing is right. Chase all potential channels to market. Tell family and friends. Ask clients for references or leads. Don’t forget the magic of Google AdWords. And a LinkedIn Premium subscription.

Make it easy for your potential customer to find you. If you’re going to use an agency, remember this: Make the agency rich. Don’t begrudge your ‘sales arm’ making money off your sweat. The more money the agency makes, the more business it will send your way.

I’m based in a small town where people are accustomed to what they know as opposed to adapting to something new. I’ve advertised in the newspaper, sent out fliers and have a Facebook page with over 500 likes. So far, the response to my tutoring service business has been slow. How can I improve? — Stephanie

You’ve made a big assumption: That there is demand for paid-for tutoring. Generally speaking, you should sell your product before you start your business. Sell it, then build it. It’s safer.

But maybe you’re on the right track. In addition to paid-for marketing, consider channel partner and referral programmes. Go to your local high school, meet the maths teacher, offer a commission for every student she sends to you for tutoring. The maths teacher becomes a channel partner, allowing you to put up posters at the school, and referring clients.

Even better than channel partners is a referral programme: For every new client referred by a client, give the client a 10% discount, or a month free.

At the end of the day there is no shortcut to getting more customers. Start with one. Make her happy. Let her tell a friend. Tutor the friend. Rinse, repeat. Over time your service reputation will grow and word of mouth will bring customers to your door.

Related: Alan Knott-Craig Answers Your Burning Start-Up Questions

I have an idea to build a mobile platform to connect all informal artisans in SA to potential customers. Uber for artisans. Will you invest? — Neo

Great idea. Some questions: How do you displace the other informal platforms in SA, such as Gumtree? How do you de-risk your business before raising capital? Can you secure funding without selling equity?

Before you give theoretical answers, remember this: The questions are not theoretical. No one should back you unless you have the above solved in reality, not just in theory.

In other words, raising capital is only realistic once the risk is so low you almost don’t need to raise capital.


Listen to this

Alan’s audible book Be a Hero: Make Life an Adventure is now available on amazon.com and Audible.com

Read by Alan himself, Be a Hero is a collection of stories on how to make your life an adventure by changing your mindset and tackling adversity.

Go to amazon.com or audible.com to download your copy. Be a Hero is also available in Kindle and paperback through Amazon.com.


Read ‘Be A Hero’ today

be-a-hero

Alan Knott-Craig is a successful entrepreneur and best selling author. Founder of over 20 companies in the tech space, he was named as a Young Global Leader by the World Economic Forum in 2009. To find out more about Alan’s new book, The 13 Rules for Entrepreneurs, go to www.13rules.co.za.

How to Guides

Enterprise Supplier Development (ESD) Provides Opportunity For Entrepreneurs

LFP Training offers ESD support services such as the implementation of sustainable supplier development programmes, profiling and analysis of your supplier database, enabling procurement opportunities for EME’s through collaboration and partnerships and promoting the upskilling of EMEs and facilities the quality of services provided.

Jacolien Botha

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LFP Training’s team spends a lot of time educating businesses on the benefits of BEE. As an entrepreneurial venture, the company understands that you have worked hard to build your brand and as such, BEE should strengthen your position the market.

AJ Jordaan, LFP Training’s National Sales Manager says that while Skills Development remains the most cost-effective, productive and mutually beneficial way to gain points whilst improving the performance of your staff, ESD is too a critical component of the scorecard.

“By partnering with a BEE compliant business, companies can claim additional points towards Enterprise and Supplier Development (ESD),” says AJ.

Both ESD and Skills Development initiatives cover large portions of the scorecard in total so it’s vital to score well overall. “Furthermore, ESD is one of the priority elements of BEE and failing to comply with the subminimum requirements will result in your company being discounted a level”.

In a country where entrepreneurship is recognised as a catalyst for growth, ESD helps small businesses to thrive by gaining access to opportunities through its attractive BEE status. “This in turn helps to ensure the sustainability and success of such businesses in South Africa”.

ESD is a combination of preferential procurement, supplier diversity and development and enterprise development programs used to service a business’s needs.

Trading has never been more attractive and ESD contributions can take on many forms. “While some people are still very cynical about BEE, ESD is not based on the value of a contract given to a black business but rather the contributions towards technical help, the transfer of knowledge and skills, operating cash flow, loans and/or investments.”

AJ does warn that while this is a great benefit of being compliant, in an instance where two companies supply the exact same service, the company with the higher BEE recognition will most likely secure the business. “Here, a customer will partner with the company with a higher rating as they earn more points towards preferential procurement under ESD.”

“Today we are seeing some companies penalising a supplier when dropping a level as it influences their scores on ESD so its once again vital to maintain your current BEE level or to improve” AJ continues.

“There are a host of benefits to making sure that businesses align their efforts to compliant businesses, these include; an improved BEE rating, gaining a competitive advantage and reducing costs, supporting a compliant business, a strong and positive association for your business with a compliant business” says AJ.

LFP Training offers ESD support services such as the implementation of sustainable supplier development programmes, profiling and analysis of your supplier database, enabling procurement opportunities for EME’s through collaboration and partnerships and promoting the upskilling of EMEs and facilities the quality of services provided.

Read next: Enterprise Development Programmes For Black Entrepreneurs

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How to Guides

Three Things You Need To Do When Starting A Business

Like a good game of chess, starting a business will challenge you to think about your long-term strategy and also make sure you’re moving the pieces one step at a time in the right direction.

Stacey Ferreira

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Starting a business is a dream job for many people who have a great idea, are willing to tolerate some risk and are looking to be their own boss. While start-ups are often glorified in the news – as some reach extremely high valuations – starting a company is a big undertaking that typically requires grit, perseverance and a little bit of luck along the way.

Over the past few years, I’ve started two companies, sold one and raised over $4 million in venture capital from some of Silicon Valley’s top firms. These companies haven’t been without their challenges, so here are the top three things I wish I knew when I was starting out:

1. Talk To Prospective Customers Before Starting Your Business

The biggest time killer in a start-up is building a product you think a customer needs, only to find out, after you launch your product, that the customer actually needs something else. Before starting my second company, Forge, I recorded over 50 conversations with prospective buyers to learn about their top three problems, how they define success and how much they’d be willing to pay to have product or solution that successfully helps them navigate their problem. These conversations helped me narrow in on building a product I knew customers needed and gave me my first few customers.

Related: Crucial Skills You Need To Be An Entrepreneur

2. Reference Check Investors Like You Reference Check Employees

Sometimes raising money is necessary to get a capital-intensive business off the ground or as a way to spur growth. But raising capital, as with anything, comes with a cost. The cost is giving up future value of your business in the form of equity. Who you give this equity and other rights to – such as a board seat, which is often paired with financing rounds – can have a massive impact on the long-term business outcome.

It might seem daunting to ask a lot of questions of someone who is willing to write a cheque for a few hundred thousand or million dollars (or rands), but it’s extremely necessary.

  • Have they invested before?
  • Who did they invest in?
  • What value did they provide to those entrepreneurs?
  • Do they understand that most start-ups fail and that they might not get their money back?
  • Can they introduce you to a few people they’ve invested in previously – business founders who went through both good and tough times?

Since most successful businesses are around for more than 10 years, it’s important to know who you’re going to be working with.

3. Do Whatever It Takes To Make Sure Your First Three Projects Are Successful

If you decide to raise pre-seed or seed capital for your business, take the money and spend 100% of your time working with your first three clients. I often see entrepreneurs who accept capital and then worry about how they’re going to rapidly grow their company.

In reality, in the early days nothing matters more than making your first three clients extremely happy, so you can use their success stories as case studies. Their testimonials will help you sell to client numbers 4-10, which will in turn help you sell to clients 11-100. Focus on your first three customers and tweaking your product or solution experience. Your company will grow organically from there.

Related: 21 Steps To Start-Up

Bonus: Passion Doesn’t Help You Make Payroll

The first time I had to let go of someone from my team, very early on in my career, my dad said to me, “Passion Doesn’t Help You Make Payroll.” You can have an employee who is extremely passionate about the work you’re doing, but if they can’t contribute to making it a reality, it’s better to let them go and get back to building the business.

Whether it’s conducting customer research, pitching to investors or learning from your first clients, starting a business gives you unmatched flexibility and the ability to truly learn every day.

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How to Guides

Tips On How to Build Your First Ecommerce Business

Starting an ecommerce business is really important in this day and age because everything and everyone is online. With the sheer number of people populating the internet, only an online business can reach out to them.

Megan Harris

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However, having an online business isn’t just about trying to sell things on the internet. There is necessary groundwork needed to avoid any pitfalls.

Making an online business is extremely lucrative because it can tap markets that can hardly be reached by traditional mediums of marketing. In a study by CMO, it was revealed that 72% of millennial shoppers shop online before they go to a mall or store and these people, who are in the age range of 25-34, are heavy smartphone users when it comes to shopping.

With this kind of information, you can really see how effective having an online store is. So, the question here now is how do you start an online business? Here are a few tips on how to go about.

Decide through market research

Like all businesses, you have to fill in a need or a want. Having an online business is no different. You must first ask yourself what is something that people need and want. Next, you have to ask yourself if you can provide that need or want. After that, you must research if your target market can be found on the internet or not. Once you have all of that down, then you can start.

Related: Watch List: 15 SA eCommerce Entrepreneurs Who Have Built Successful Online Businesses

Develop your online presence

The website will always be the frontline of any online business because this is where all customers will end up. Think of your website as like your store but on the internet. If your store is good and accessible, then your customers will like it there.

In order to build a good website, you’ll need two essential things: a website design and a server. For the website design, you may just design one and use a back-office program like WordPress to manage it. If you want to have a nice design, you may hire a professional website designer for it. Next, you have to think about the server. You’ll want a server that performs well because your server will determine how fast your website moves.

If your service provider is not very efficient, then your website won’t load quickly and smoothly. Before deciding which web host to use, be sure to read reviews about it to get more feedback. Once you have these two things, you just need to learn the process of creating your website then you’re good to go.

Develop a content strategy

So after you’ve built yourself a nice looking website, the next step is to fill it up with information. You have to write well and make sure that your text will cater to the market segment that you are targeting. 

Get found through SEO

SEO techniques are directly related to content as SEO relies heavily on modifying text. SEO stands for Search Engine Optimisation and they are techniques used to give your website a good slot in Google or Yahoo. SEO would primarily make use of keywords that people would often search in search engines. If you know how to make use of these keywords, your site will earn top billing on Google if a person searches for something relevant to your site.

Related: 3 Types Of Ecommerce Business Models

Utilise email marketing to find leads

Using email marketing services along with highly targeted database, is a power tool for pushing your website since email marketing is personalised. People, in general, like to feel special so if you send them an email promoting your online business, you may get them to becoming buyers. The best way to go about with email marketing is to find leads and shoot your emails out. 

Make use of paid channels

PPC ads, or Pay Per Click ads, are quick to drive traffic to a website because advertisers pay a fee each time the ad is clicked. In a sense, the advertiser buys views so that traffic will go into the site faster. This is a quick way to get views and eventually single out the target market.

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