Death is inescapable, and its inevitability has generated a funeral industry in South Africa worth over R5 billion annually.
Basic funerals cost around R7 500, the average funeral R12 000, with extravagant ones racking up in excess of R60 000.
The high cost of funerals and the importance of the burial ceremony in many cultures also means that funeral cover comprises 90% of all risk cover in the country. In other words, more people in South Africa have funeral cover of some form (44%), than medical aid (10%) and life cover (12%).
Related: Types of Businesses to Start
South Africans’ mind-set on savings and funeral cover
The FinScope Consumer Survey South Africa 2012 also revealed people’s mind-set regarding savings for emergencies and funeral expenses: 58% of adults cite their reason for saving is for emergencies, 47% save to provide for the family in the event of death, 41% save for their own or someone else’s funeral, and 37% and 34% for retirement and school fees respectively.
The need for burial space in Johannesburg
The Avalon Cemetery in Soweto was opened in 1972 and is the largest in South Africa. By 2011 the cemetery, spanning 172 hectares and containing 300 000 graves, had reached full capacity for first burials.
To help alleviate the shortage of burial space in the area as a result of over 200 burials in Avalon every weekend, the R11 million 20 hectare Avalon Extension Cemetery was opened, giving space for a further 25 000 burials, with plans for the future development of a further 125 hectares.
Of Johannesburg’s 35 cemeteries, by 2011, 27 had already reached their full capacity for first burials, leaving nine with capacity for 552 000 new graves. This meant second and third burials (more than one casket per grave site) would need to come into practice.
Operating in the funeral industry
With the sheer numbers associated with death and costs involved for funerals, and the waiting period of up to two years for necessary local government permission to run a funeral home, the number of fly-by-night funeral services as a way to make easy money has increased by the thousands.
In 2013, the National Funeral Directors Association, SA Funeral Practitioners Association, and the Independent Crematoriums of SA joined forces to lobby government to regulate the sector.
Fly-by-night undertakers do not provide proper services and are in the business purely to make money. Fly-by-nights operate without a licence and do not comply with the industry’s rules. People are buried in the wrong graves and health requirements are not met.
Some smaller private funeral homes make use of government crematoriums and store bodies at private and government mortuaries until it is time for the burial or cremation.
It’s the responsibility of local municipalities to ensure the proper management of cemeteries, crematoria and funeral undertakers within their areas of jurisdiction.
Related: The 4 Pitfalls Small Businesses Face
What You Need To Know When Starting A Tech Business
For the tech entrepreneur, the majority of your intellectual capital will reside in your software, code, databases, websites or mobile applications.
Protecting and managing your intellectual capital starts with finding, identifying and classifying your most important human and intellectual assets. Once you know what you are looking for, you can then determine whether you have the rights you need over those assets. If you don’t, you can then go about securing those rights and then select the best methods of protecting them.
Intellectual capital, intellectual assets and intellectual property
In the industrial and manufacturing industries, the conventional forms of capital needed to start and grow a business were real estate, factories, plant and equipment. But in today’s knowledge economy, these physical assets have largely been replaced by ideas, knowledge and creativity as the new drivers of value.
This new type of information and knowledge-based capital is known as intellectual capital. Your intellectual capital is basically all the knowledge, skills, capabilities and work product that you and your team have to offer, together with the relationships, reputation and brand equity that your business is able to attract and maintain in the marketplace.
Intellectual capital is made up of the following:
- Your ideas, insights, knowledge and creativity (intellectual assets)
- The talent, skills and capabilities of your team (human capital)
- Your contractual relationships and connections with investors, customers and other stakeholders (relationship assets)
- Your unique brand and the reputation and goodwill you have built around it (brand assets)
In the same way as we as individuals have a whole lot of information and knowledge, some useful, some useless and trivial; your business’s intellectual capital can also be categorised according to its uniqueness, usefulness or value.
Where your intellectual capital displays these additional qualities, it may qualify for statutory legal protection. These special assets, commonly referred to as intellectual property, are bestowed with rights and protections which give the owner a period of time (limited) to commercialise or exploit them without any undue or unfair interference from others. The trade-off is that after that period of time expires, the asset becomes part of the public domain for anyone and everyone to use.
Discovering what intellectual capital you have and need
For the tech entrepreneur, the majority of your intellectual capital will reside in your software, code, databases, websites or mobile applications. Copyright law without the need to register rights or comply with any further formalities automatically protects most of these assets. However, it is still necessary to identify and categorise those assets because the ownership rights and the ways to protect them may differ between the different types of asset.
At the same time, there may also be a wealth of other intellectual assets tucked away in your filing cabinets and hard drives, waiting to be discovered. These may include valuable trade secrets, know-how, methodologies, customer learning, and market research.
Once you have linked the value drivers and competitive advantages in your business with the assets that produce them, list those assets and classify them according to the structure that they take. Are they people-based or embedded in technology or documentation. Do any of them qualify for statutory protection?
The outcome should be an inventory of all your intellectual capital, classified according to the different levels of protection available as well as their importance to your business. You probably don’t have the time, energy or budget to protect everything, so taking the time to do this exercise will ensure that you separate the wheat from the chaff which will save you in the long run.
10 Cheap Businesses You Can Start In South Africa That Offer Uniquely Local Relevance
There are a few businesses that are more likely to thrive in South Africa than others. Here’s a list of 10 that meet the needs of the country’s people.
Brand South Africa believes that despite a slowing global economy, South Africa remains one of the most promising emerging markets in the world. It is also Africa’s most sophisticated and diverse economy, according to the organisation.
This diverse composition of the South African market and consumers discerning tastes, which vary from region to region and province, represents a good opportunity for the entrepreneurially-minded to capitalise on.
So, why not start a business that caters to the particular needs of South African clientele? Here are a few business ideas that can be started with relatively low capital input:
- Bunny Chow and Kota Food Retail Business
- Uniquely South African Clothing Business
- Ready-to-Eat Baby Food Business
- Mathematics Upskilling Business
- Low Sugar Refreshment Business
- Aerial Drone Photography Business
- Small Batch Beer Brewing Business
- Niche Project management Business
- Tax Consulting Specialist for Start-Up Businesses
- Mobile Hair and Beauty Specialist Business
A Step-By-Step Guide To Selling Consulting Services
Do people often ask for your professional advice? It’s time to start charging for your consulting sessions.
Ever since I launched my YouTube channel where I talk about different strategies regarding B2B selling and inbound marketing, I’ve gotten a lot of requests from my audience to hop on a call with them and help them out.
This is how I got started offering consulting services to different companies and entrepreneurs. Based on what I’ve learned, here’s how to structure these consulting calls so you can start selling them on your own.
I usually use a pretty simple email whenever I’m asked a detailed question that requires a decent amount of my time.
This email includes the price for the consulting call, which can vary, but generally starts at $300. Usually, that email is enough to get viewers to buy in.
You want to price your consulting services in a way that it makes you want to work for that amount (even if you’re not in the mood). By charging a certain amount for the consulting call, you make sure that you’re adding value and the other person is also taking your notes more seriously.
For those who are just getting into coaching and consulting, the best way to start is to assume that the person on the other end is going to get good information out of your session.
People usually join a coaching session either because they have a burning problem or they are so close to a solution that only few words are enough to solve it for them.
In some cases, people paying for a consulting session already have an idea or solution to a specific problem, but they want to have your ideas or expertise.
It is important to remember that the person won’t reach out to you for coaching if she didn’t like something about what you’re doing.
To get this meeting on the calendar, I use a tool called Calendly. There are a bunch of alternatives out there, but Calendly is a pretty popular solution.
The tool is free, but I use a version that charges about $10-$15 a month and plugs directly into my Google calendar. There are a lot of similar tools out there that you can choose from if you don’t like Calendly.
I recently discovered and started using Google Wallet. It is a free tool from Google and its pretty similar to Venmo. It allows you to input your credit card info and the amount billed is directly transferred to your account on the same day.
I’ve previously also used Venmo and Paypal, and as a company (Experiment 27) we used Chargebee for a while. With Chargebee, we had a problem where it would mess up our revenue numbers and our churn rate.
A lot of these coaching sessions are one- or two-time purchases for a very small amount of money compared to our main service offerings, so it would mess up our purchase rates.
Setting up a Google Wallet account is pretty simple and it also provides invoices. The last coaching session I did, an invoice was paid within two hours.
It is important to know whether the person purchasing a coaching session is getting value out of it.
I picked up this idea from someone with whom I used to do a bunch of coaching sessions who runs his coaching session using Google docs.
He opens up a blank Google doc at the start of a coaching session and adds notes there. Using that model, my clients and I go over different goals and questions by writing them in a Google doc and I also assign homework.
Here’s an example of a document like that.
And because all of it was done in a Google doc, everyone has easy access to it. At the end of each coaching session, I think it’s necessary to have a homework assignment that would set up the attendees on something to work for the next week.
Bonus: Should your consulting landing page have short or long copy?
There’s been a long debate among the copywriting community about whether short copy or long copy is the best. Some say that you need long landing pages outlining data point after data point in order to make someone take action and buy your services.
But, there’s another group of copywriters who believe that the short copy is more effective because of its to-the-point approach and easier click and buy operation. There are always two sides to all advice, but for us, short copy didn’t work.
Our coaching funnel normally consists of our clients watching a YouTube video and then booking a consulting call directly.
The clients would usually find the consulting page and would be welcomed by the headline, “Want me to help you double, triple or maybe even quadruple your revenue for the next quarter?”
Our landing page was converting about two clients a week who wanted consulting services on how to improve their agency business.Being a fan of testing, I thought we could do better.
My favorite coaching page of all time is one that is literally a picture of the coach’s face along with a description that says “Did you know Neville takes on four different private consulting clients?” along with one paragraph of copy and a “buy now” button – that’s it.
So, we wrote a version of our consulting page based on Neville’s, but we saw our conversions drop from where they were before down to almost zero. We had just one conversion for the entire month that we had this landing page.
Since this approach clearly wasn’t working for us, we changed back to our previous landing page. We kept a few items from the other approach.
For example, we changed the pricing section and began offering consulting packages. Having packages on the copy page increased the revenue dramatically.
The other thing that this experiment taught us is that we needed a more intense email drip to sell people on coaching. We rewrote our email sequence, which is now a five-day drip in which we basically hard sell people on coaching as they sign up for any of our lead magnets on our YouTube channel.
Even though the short copy approach wasn’t right for us, we did gain some valuable insights from the experiment.
This article was originally posted here on Entrepreneur.com.
Self Development1 week ago
5 Inspiring Quotes From Madiba To Stir You Into Action On Mandela Day
Entrepreneur Profiles3 days ago
Karl Westvig Of Retail Capital Shares His Insights Into A Year-On-Year Double-Digit Growth Business
Angel Investors1 week ago
A Comprehensive List Of Angel Investors That Fund South African Start-Ups
Ongoing Learning5 days ago
15 Of The Best And Most Unusual Online Courses For Entrepreneurs
Lessons Learnt5 days ago
11 Things Very Successful People Do That 99% Of People Don’t
Small Business1 week ago
Even SMEs Can Use Big Data: Here’s How
Branding14 hours ago
Personal Brand Or Business Brand: Which Is More Important?
Strategy1 week ago
There’s More To Team Management Than Leadership