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.
Got An Awesome New Business Idea? Here’s What To Do Next
If you’re stuck in the brainstorming stage, the first step is to focus on two questions: ‘Why?’ and ‘Who?’
Do you constantly have great business ideas which fall to the wayside because you just don’t know how to turn those daydreams into reality? If you’re stuck in the brainstorming stage, that’s probably because you don’t know what to do next.
Around 550 000 people, according to the Kauffman start-up index, become entrepreneurs each month and you could be one of them. While there’s no guaranteed formula to starting a successful business, there are steps to take in the planning phase that will not only help you determine if your business idea has what it takes but help you get the ball rolling, too.
Sound like you? Here’s what to do next.
Determine the “why” and the “who”
The first step to take after you’ve come up with a new business idea is to concentrate on the “why” and “who” of it. You may think you’ve thought up an awesome idea, but your business won’t be successful if you don’t know the real reasons behind why it’s a good solution, and whom it would be a good solution for.
Start to really think about what problem your business idea solves. Your business may solve a problem for you, but does it solve a problem for others? If nobody else has the problem that your business proposes a solution for, then who will buy that solution?
After you’ve taken a deep dive into why your business is needed in the first place, determine who will be the target audience of your business. Think about the demographics of your target audience, what’s important to these people and how you will reach them. You can use a free tool like Hubspot’s Make My Persona to get detailed about who your ideal customers are. A business isn’t a business without customers, after all.
Related: 10 Business Ideas Ready To Launch!
Search for similar solutions
No business idea is 100 percent unique; there will always be businesses out in the world that are similar to yours. So, don’t sweat it if there are companies doing what you do; in fact, that proves there’s a market for what you do. What you do have to think about is who your competition will be, what exactly they are providing and what you will do differently or better than they do.
To stand out from the competition, you will need to know what sets you apart. Start doing research on the companies that could become your competition. Look at how much they charge, who their target audience is and how they market to them, to name just a few research points. There’s no need to reinvent the wheel, but do look at what these companies are lacking in and how you can improve upon those areas in your business, so that you capture their customers.
Talk to your potential customers
Similar to your efforts to study your potential competition should be your effort to study potential customers. Get out there and start talking with your target audience. See if your product or service is something they would use, find out how much they would pay for it and ask what comparable product or business they’re using now to solve the problem.
You could even get super in-depth and ask people to fill out a survey providing answers that will help you get to know your audience even better. Even negative feedback about your business idea can help you refine your idea.
Lock down the details of your business
Coming up with a new business idea is exciting; your mind is probably buzzing with lots of plans and designs – maybe too many. So, sit back and lock down the finer details of your business. Will you be offering a product or a service? How much will it cost? How will you be marketing your business? You need to know your new business concept inside and out before you launch. A great and easy way to organise your thoughts is to use a business plan software like LivePlan.
Also, if you haven’t named your business yet, now’s the time to do it. Do some brainstorming and come up with a name that no one else has already taken.
Related: 20 Quick Money-Making Business Ideas
Determine the “how”
After you’ve worked out all the details of your future business, the next step is to figure out how to turn your dream into a reality. Obviously starting a business costs quite a bit of money, so that’s one of the major “how” factors you need to consider. Decide if you’ll talk to investors, take out a loan, or maybe even start a Kickstarter campaign.
Determine everything you’ll need to get your business up and running. For instance, if you’re offering a product, how will you build it and how much money will it cost? This last step is one of the most important in order to take your business from out of your head and into the real world.
Over to you
What are you waiting for? By following these tips, you’ll be well on your way to starting your very own company. If you take the time to plan out your new business idea, you won’t just build a business, you’ll build a successful one.
This article was originally posted here on Entrepreneur.com.
Why Entrepreneurs Are Constantly Distracted (And 6 Ways To Fight Back)
Once thrown off track, a worker needs 23 minutes, on average, to get back to the original task. What could you have done in that 23 minutes?
If you’re like most entrepreneurs, you find yourself struggling with distractions on a regular basis. Whether it’s an email notification, a meeting or a new emergency to deal with, every distraction can potentially pull you away from whatever project you’re working on. And that’s not good because, according to Gloria Mark, a professor of informatics at the University of California, Irvine, “Once thrown off track, it can take some 23 minutes for a worker to return to the original task.”
So, why are entrepreneurs so susceptible to distraction and what steps can they – and you – take to fight back against this vulnerability?
The susceptibility of entrepreneurs
Here are just a few of the reasons why entrepreneurs are more prone to distraction than other professionals:
The entrepreneurial mind. Entrepreneurs are innovators and thinkers by nature. They often specialise in multiple disciplines, and are forced to deal with problems in multiple departments at once. This style of thinking lends itself to multitasking and “shiny object syndrome,” the tendency to jump quickly from one focus to another.
Busy environments. Startups are notoriously busy. There’s a lot to do and not many people to do it, so entrepreneurs are forced to step in and juggle multiple responsibilities at once. Subordinates and partners may also need frequent assistance, with tasks like attendance at meetings or clarification on the plans they devise.
Tech tools. Entrepreneurs also frequently invest in high-tech tools to make them more efficient (and help them keep up with the competition), but those tools in and of themselves can also be distracting. For example, your smartphone ensures you’re always connected, but its constant notifications can pull you away from your most important responsibilities.
How to stay focused
So, what can you do to improve your focus? Here are six ideas:
1. Try focus apps. While technology can hinder your ability to stay focused, it can also enhance it if you know what to do. Try downloading focus-oriented apps that have the power to block out distractions for you. Some apps allow you to create schedules, so you can block access to certain apps or websites outside of certain parameters.
Others allow you to set timers and gain more visibility into how you’re spending your time. Either way, this technology can improve your focus and diligence.
2. Do one thing at a time. It’s tempting to work on multiple projects at the same time, especially when you have tight deadlines to work with, but it’s universally better to focus on one thing at a time. Jeff Bezos, for example, avoids multitasking at all costs, instead narrowing his focus to one problem or one task before moving on to the next one. This requires tremendous self-discipline in some cases, but once you’re used to the process, it becomes easier.
3. Disconnect periodically. Many modern distractions are rooted to the technology we use or to our proximity to other people. We get a phone call, an email, an instant message notification or even a knock on our door, and our focus is completely broken.
To remedy this, schedule specific hours during the day (or days during the week) when you can disconnect entirely and focus on your work. During this time, turn off notifications and let your staff know that you’re unavailable; then, you can work heads-down as you see fit.
4. Know what your secondary priorities are. You’ll always have a long list of things to accomplish and tasks to complete, but you can’t make everything a top priority. Instead, spend time deciding what your secondary and less important priorities are.
Warren Buffett, for example, keeps a “not to do list” that keeps track of things worth pursuing that aren’t worthy at a specific time of his focus, his time or his budget. Staying organised this way can help remind you what’s most important and keep you from spending too much time on those secondary priorities.
5. Specialise instead of generalise. Also consider how you’re spending your time and optimise it so you spend more time doing what you do best. Elon Musk, for example, has stated that “At Tesla, we’ve never spent any money on advertising. We’ve put all our money into R&D, engineering, design and manufacturing to build the best car possible. When we consider spending money, we ask, ‘Will this create a better product?’ If not, we don’t proceed with spending the money.”
6. Consider hiring an assistant or delegating responsibilities. This way, you can focus on tasks that have the highest value and you aren’t distracted when doing them.
It takes time to break your bad habits and create an environment necessary to work distraction-free (or as close to distraction-free as you can get), but it’s worth the investment of time and money. Don’t let chronic distractions sabotage your chances of finding success.
This article was originally posted here on Entrepreneur.com.
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.
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.
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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