In the early 80s, Connie Mashaba worked for Southern Sun hotels as a junior bookkeeper. In 1985, her husband Herman Mashaba asked her to join his fledgling business in Garankuwa, north of Pretoria. What started out as a small manufacturer of hair care and grooming products for the black consumer has grown into a multi-billion rand business and a household name.
Herman Mashaba launched Black Like Me with his wife Connie at the age of 26, with R30 000 he borrowed from two friends. They marketed and distributed ethnic hair products and, within seven months, the loan was repaid.
In 1997 he sold 75% of the business to Colgate-Palmolive, buying it back in 1999. His company had 47% growth in 2001 – the most rapid in the industry sector. Black Like Me re-invented its image in 2002, launched into the UK, and added fragrances and cosmetics to its range. In 2003 it entered the personal care market.
Today, Connie Mashaba has set the company – a model of African entrepreneurship – on a solid growth path, merging the business with cosmetics company Amka, driving its market share, and streamlining its operations to strengthen its performance.
Entrepreneur spoke to her about what it’s like to be the driving force behind a leading South African brand.
What role did you play in the establishment of Black Like Me in 1985?
I was involved in the company from the beginning and I did everything from reception all the way up. I’m an all-rounder, but my love has always been for administration and finance, so that was where I landed up.
You took six years off to study between 1997 And 2003. What did you study?
I left when Black Like Me formed a strategic partnership with Colgate-Palmolive. Herman stayed on as MD, but I did not want to be part of a corporate organisation.
I also wanted to complete my studies as I had never had the chance to do so. I finished my bcom and followed that with Honours in business management. My goal was to consolidate the knowledge I had gained through work experience.
How have your studies benefited you in your current position at the helm of the company?
Achieving a qualification gives you a greater, firmer belief in your own abilities. When you combine experience with education, you have a winning formula.
Herman Mashaba relinquished the reins to you in 2004. What were the reasons for this move?
In 1999, Herman bought the business back from Colgate-Palmolive and spent the next few years injecting flexibility, speed and entrepreneurial flair into the company. By 2004 he wanted to enter a new business environment and there were several people who were possible candidates to take over from him, but because of my experience in the business the board took the decision to appoint me as MD.
What particular challenges have you faced (if any) after taking over from Herman?
We are in an era of vastly increased competition, particularly in the lifestyle industry, so differentiation and relationship building are extremely important. I have also learnt a lot about leadership – people cannot be taken for granted, and you have to keep the channels of communication open at all times.
Why did you decide to merge with Amka in 2004 when you took over?
Our two companies had been long-time competitors, and we agreed that by merging the businesses, we would increase our market share significantly. As a result, Amka bought a 49,9% stake in Black Like Me. The BEE deal was one of the biggest ever in the beauty industry and saw two serious black companies joining forces.
There were great synergies between Amka and Black Like Me, from both a manufacturing and a distribution point of view, and Amka had a distribution network established in over 39 African countries.
Related: Black Like Me: Herman Mashaba
What value has this brought to Black Like Me?
It has streamlined our distribution, enabling us to reach every corner of the country. It has also provided us with a vehicle for further expansion into Africa. Another important outcome is that we both have increased buying power.
What challenges did you face as a result of the merger and how have you overcome these?
Herman and the Kalla family had been competing for many years, so the two businesses were fairly familiar with each other. Nonetheless, integration itself is not easy as two organisations have to learn each other’s cultures and approach to business.
We were fortunate that both companies were family-owned businesses and were entrepreneurial ventures – that meant there were some fundamental similarities and common values that eased the way for us. It took about a year for us to become fully integrated.
How have you maintained the identity of the Black Like Me brand within the merged company?
I am responsible for the sales and marketing of Black Like Me, so I am fully involved in the identity of the brand. I think it’s important that I am here and doing things hands-on.
What advice do you have for entrepreneurs whose companies are going through some form of significant change such as a merger?
If it’s a good merger, one plus one will equal three. Success depends on the trust and respect you have for one-another, as well as shared commitment to the business. Number one rule: do not go into a partnership if you have any doubts.
You have set the company on a specific growth path. What is your strategy?
My strategy focuses on three simple tenets: Give people what they want; do not take customer service for granted; and do not be static – when you stagnate, you die.
You are well on your way to building Black Like Me into a major African brand. What challenges have you faced in marketing the products beyond our borders?
We are exporting to about 10 African countries and also to Papua New Guinea and the UK. However, our focus remains on South Africa because we still have so much to build here. The most challenging aspect of exporting to other African countries is collecting payment. Getting products through customs is also very difficult.
What advice do you have for entrepreneurs looking to export into Africa?
The most important advice I can give is to start by establishing your brand at home first. Only once you have accomplished that should you start studying the foreign market you want to enter. It’s important to pinpoint your reasons for wanting to do so, so that you are clear about this upfront. It is also essential to establish partnerships in the countries you wish to export to – you cannot do it yourself from South Africa.
What level of interaction does the black like me brand have with its customers?
We have two types of customers: wholesalers and retail stores, and consumers in the lsm 4 to 7 brackets. The former are most receptive to initiatives like product promotions.
To reach consumers we promote our product in print media and on tv, where we tend to sponsor certain shows. Our primary interaction with consumers is at store level and our in-store promotions are extremely successful.
What is the key to maintaining customer loyalty?
Competition is growing in our market, but the key to customer loyalty is firstly the quality of the product. Secondly, we place a huge emphasis on education at salon level. In Gauteng alone there are over 4 000 salons that use our products. We have teams who visit them regularly and demonstrate new products to them.
Black like me is over 20 years old. How do you ensure your products remain relevant to a fast-growing black middle class?
We redesign our packaging every two years to keep it fresh and up-to-date. We also have a dedicated research and development team that conducts intensive research into the cosmetics market to ensure that our products meet the needs of our target market, which is becoming increasingly sophisticated. Our range has grown to include not only hair care, but also skin care products, cosmetics, toiletries and fragrances.
How big is your management team?
There are six people on the team, three men and three women. It is focused entirely on sales, marketing, public relations and promotions.
How would you describe your management style?
It is democratic and consultative, but i am not afraid to show authority when i have to. I expect people to be responsible and accountable, and because i trust and respect my team, they are.
You are a highly successful leader, from both a financial and operational point of view. What would you say are the key reasons for this success?
I’m passionate about the business. I am committed to making sure it succeeds, and i am surrounded by people who are all working towards the same goal – as a team, we understand where we are going.
Does the business still maintain its entrepreneurial flair?
Most definitely. When we come up with decisions, we go with them there and then. There is no corporate machine standing in our way. We have also retained all the flexibility of an entrepreneurial business. And we work from the grass roots up, not from the top down.
What is the most important lesson you have learnt about being involved in a business with your spouse?
The day never ends and you always take your work home with you. On the other hand, you always have a profound understanding of the problems and challenges you both face and you can rely on one another’s support. You also know that the advice you receive is relevant and apposite.
What are the next big goals you have set for black like me?
My aim is to grow the business in the face of fierce competition. I want to reach as many black women in South Africa as possible, no matter where they live, whether it’s in villages, towns or cities. I want them to know and understand our products. I also want to ensure that every woman in this country can afford to buy our products.
How do you develop your knowledge and skills?
I surround myself with people who are knowledgeable. I ask questions, i attend seminars, i read as many books as i can about subjects that interest me.
Is there anyone whom you look upon as an inspiration in your career?
There are many people, but i prefer to focus on the qualities and strengths they have and to admire and emulate those, rather than to focus on the individuals themselves.
What major strategic moves did you make over the years that made the biggest positive impact on your business?
Our single most important strategy has been community involvement. The community projects we have sponsored and supported have differentiated the black like me brand.
We have educated hairdressers in rural and urban areas and taught beauticians how to use our products; we have sponsored boxing events; and we have funded emergency helicopters for the annual pilgrimages to Moria in Limpopo.
Giving back to the community at this level – and being visible at events that are seminal in the lives of our consumers – has carved a space in their hearts and minds for black like me. In-store promotions have been invaluable in increasing the visibility of the brand.
Working closely with salons and salon associations to educate users of our products has also contributed enormously to growth. The products work and once people know how to use them properly, they are hooked.
What is your key advice to anyone seeking to start a business in this country?
Understand the market you want to go into, be passionate about what you want to do and be committed. It’s a cliché, but if you do not love your business, you cannot succeed. It was John Maxwell who said, “winning is an inside job”. Trust and respect the people you work with.
If you don’t give them that, they will sabotage you, even without knowing they are doing so. Be positive in your outlook.
Despite the very serious issues that South Africa faces, the possibilities for economic growth are enormous, and job creation is possibly one of the most important things you can do for this country today.
What have you brought to the business that has complemented or extended Herman Mashaba’s legacy?
I’m benefiting from what he has built and I work hard to maintain his legacy. I have cemented the relationships he created within the industry. I have been most fortunate in that the respect he built in this sector has opened doors for me.
At the same time, I have to ensure that my actions remain consistent with the foundations he has laid. Relationships in business are extremely important and when someone has been as successful as he was, it’s vital that you do everything in your power to maintain those bonds.
Jason English On Growing Prommac’s Turnover Tenfold And Being Mindful Of The ‘Oros Effect’
Rapid growth and expansion can lead to a dilution of the foundational principles that defined your company in its early days. Jason English of Prommac discusses how you can retain your company’s culture and vision while growing quickly.
- Player: Jason English
- Position: CEO
- Company: Prommac
- Associations: Young President’s Organisation (YPO)
- Turnover: R300 million (R1 billion as a group)
- Visit: prommac.com
- About: Prommac is a construction services business specialising in commissioning, plant maintenance, plant shutdowns and capital projects. Jason English purchased the majority of the company late in 2012, and currently acts as its CEO. Under his leadership, the company has grown from a small business to an international operation.
Since Jason English purchased Prommac in 2012, the company has experienced phenomenal growth. At the time he took over as owner and CEO, it was a small operation that boasted a turnover below R50 million.
Today, Prommac is part of a diversified group of companies under the CG Holdings umbrella and alone has grown it’s turnover nearly ten fold since Jason English took over. As a group, CG Holdings, of which Jason is a founder, is generating in excess of R1 billion. How has Prommac managed such phenomenal growth? According to Jason, it’s all about company culture… and about protecting your glass of Oros.
“As your business grows, it suffers from something that I call the Oros Effect. Think of your small start-up as an undiluted glass of Oros. When you’re leading a small company, it really is a product of you. You know everything about the business and you make every decision. The systems, the processes, the culture — these are all a product of your actions and beliefs. As you grow, though, things start to change. With every new person added to the mix, you dilute that glass of Oros.
“That’s not to say that your employees are doing anything wrong, or that they are actively trying to damage the business, but the culture — which was once so clear — becomes hazy. The company loses that singular vision. As the owner, you’re forced to share ‘your Oros’ with an increasing number of people, and by pouring more and more of it into other glasses, it loses the distinctive flavour it once had. By the time you’re at the head of a large international company, you can easily be left with a glass that contains more water than Oros.
“Protecting and nurturing a company’s culture isn’t easy, but it’s worth the effort. Prommac has enjoyed excellent growth, and I ascribe a lot of that success to our company culture. Whenever we’ve spent real time and money on replenishing the Oros, we’ve seen the benefits of it directly afterwards.
“There have been times when we have made the tough decision to slow growth and focus on getting the culture right. Growth is great, of course, but it’s hard to get the culture right when new people are joining the company all the time and you’re scaling aggressively. So, we’ve slowed down at times, but we’ve almost always seen immediate benefits in terms of growth afterwards. We focus heavily on training that deals with things like the systems, processes and culture of the company. We’ve also created a culture and environment that you won’t necessarily associate with engineering and heavy industries. In fact, it has more in common with a Silicon Valley company like Google than your traditional engineering firm.
“Acquisitions can be particularly tricky when it comes to culture and vision. As mentioned, CG Holdings has acquired several companies over the last few years, and when it comes to acquisition, managing the culture is far trickier than it is with normal hiring. When you hire a new employee, you can educate them in the ways and culture of the business. When you acquire an entire company, you import not only a large number of new people, but also an existing organisation with its own culture and vision. Because of this, we’ve created a centralised hub that manages all training and other company activities pertaining to culture. We don’t allow the various companies to do their own thing. That helps to manage the culture as the company grows and expands, since it ensures that everyone’s on the same page.
“Systems and processes need to make sense. One of the key reasons that drove us to create a central platform for training is the belief that systems and processes need to make sense to employees. Everyone should understand the benefits of using a system. If they don’t understand a system or process, they will revert to what they did in the past, especially when you’re talking about an acquired company. You should expect employees to make use of the proper systems and processes, but they need to be properly trained in them first. A lot of companies have great systems, but they aren’t very good at actually implementing them, and the primary reason for this is a lack of training.
“Operations — getting the work done — is seen as the priority, and training is only done if and when a bit of extra time is available. We fell into that trap a year ago. We had enjoyed a lot of growth and momentum, so we didn’t slow down. Eventually, we could see that this huge push, and the consequent lack of focus on the core values of the business, were affecting operations. So, we had to put the hammer down and refocus on systems, processes and culture. Today Prommac is back at the top of it’s game having been awarded the prestigious Service Provider of the year for 2017 by Sasol for both their Secunda and Sasolburg chemical complexes.
“If you want to know about the state of your company’s culture, go outside the business. We realised that we needed to ‘pour more Oros into the company’ by asking clients. We use customer surveys to track our own performance and to make sure that the company is in a healthy state. It’s a great way to monitor your organisation, and there are trigger questions that can be asked, which will give you immediate insight into the state of the culture.
“It’s important, of course, to ask your employees about the state of the business and its culture as well, but you should also ask your customers. Your clients will quickly pick up if something is wrong. The fact of the matter is, internal things like culture can have a dramatic effect on the level of service offered to customers. That’s why it’s so important to spend time on these internal things — they have a direct impact on every aspect of the business.
“Remember that clients understand the value of training. There is always a tension between training and operational requirements, but don’t assume that your clients will automatically be annoyed because you’re sending employees on training. Be open and honest, explain to a client that an employee who regularly services the company will be going on training. Ultimately, the client benefits if you spend time and money on an employee that they regularly deal with.
“For the most part, they will understand and respect your decision. At times, there will be push back, both from clients and from your own managers, but you need to be firm. In the long term, training is win-win for everyone involved. Also, you don’t want a client to become overly dependent on a single employee from your company. What if that employee quits? Training offers a good opportunity to swop out employees, and to ensure that you have a group of individuals who can be assigned to a specific client. We rotate our people to make sure that no single person becomes a knowledge expert on a client’s facility, so when we need to pull someone out of the system for training, it’s not the end of the world.
“Managers will often be your biggest challenge when it comes to training. Early on, we hired a lot of young people we could train from scratch. As we grew and needed more expertise, we started hiring senior employees with experience. When it came to things like systems, processes and culture, we actually had far more issues with some of the senior people.
“Someone with significant experience approaches things with preconceived notions and beliefs, so it can be more difficult to get buy-in from them. Don’t assume that training is only for entry-level employees. You need to focus on your senior people and make sure that they see the value of what you are doing. It doesn’t matter how much Oros you add to the mix if managers keep diluting it.”
When Jason English purchased Prommac late in 2012, the company had a turnover of less than R50 million. This has grown nearly ten fold in just under five years. How? By focusing on people, culture and training.
Who’s Leading Your Business Billy Selekane Asks – You Or The Monkey On Your Back?
You’re either a change-maker, or someone who is influenced by the shifting conditions around you. The truly successful know how to determine their own destinies. Here’s how they do it.
- Player: Billy Selekane
- Company: Billy Selekane and Associates
- About: Billy Selekane is an author, internationally acclaimed inspirational keynote speaker, and a personal, team and organisational effectiveness specialist.
- Visit: billyselekanespeaks.com
We live in a world of disruption. We live in a world where Airbnb’s valuation is $31 billion, but the Hilton’s market cap is $30 billion. Airbnb doesn’t own one square kilometre, and yet they’re worth more than the world’s biggest hotel chains with enormous assets. We live in a world where things have been turned upside down.
In this brave new world, you can either thrive, or fight to survive. As a leader in your organisation, the choices you make, the mental mind-space you occupy and how you engage with those around you, will determine your personal success, as well as that of your entire organisation.
“The business of business is people. You can’t just pay lip service to the idea that they are your most important asset. You need to live it. Leaders must be intelligent and honest. You can’t just push people to meet the numbers,” says Billy Selekane, personal and business mastery expert and international speaker.
The problem is that great leaders need to first find balance within, before they can successfully lead their organisations.
“Things can no longer be done the same way,” says Billy. “Success today is defined by people who are driven, are inspired by their own lives and goals, and have the power and capability to inspire others.” But before you can achieve any of this, you need to rid yourself of the monkey on your back.
Related: Billy Selekane
The monkey on your back
“If I continue doing what I’m doing, and thinking what I’m thinking, I’ll continue to have what I have,” says Billy. “That’s the definition of insanity. Are you doing things by default or design?”
Billy’s analogy is a simple one. It’s something we can all relate to, and it’s the single biggest thing stopping us from clearing our minds, focusing on the positive and achieving success. He calls it the monkey on our backs.
“Every one of us is born with an invisible monkey on their shoulder,” says Billy. “Your monkey is always with you. Sometimes they’re the one speaking, and you need to be careful of that.” What you need to be even more aware of than your own monkey though, is everyone else’s monkeys.
“Every interaction we have is an opportunity for what I call a monkey download. You have an argument with your spouse before work, and you end up getting into your car with not only your monkey, but theirs as well. Your irritation level has doubled thanks to the extra monkey. Now you get irritated with a pointsman, another driver or a taxi on your way to work. You’ve just added three monkeys.
“By the time you walk into the office, you’re bringing an entire village of monkeys with you. They’re clamouring, clattering, arguing with each other, and the noise is deafening. Not only does everyone get out of your way, but you can’t hear yourself think. And the more your mood drops, the more monkeys you download from the people around you. This is not the path to focus, achieving your goals or being happy. It’s certainly not the path to great leadership.
“Great leaders know how to keep all those monkeys out. They know how to control their moods, and regulate their own positivity. They understand that they are the architects of their own success.”
Getting out of the monkey business
To be a great leader — and personally successful and happy — you need to start by getting out of your own way, and as Billy calls it, ‘getting out of the monkey business.’ You need to not only shake your own monkey, but everyone else’s as well.
According to Billy, there are four simple areas you can begin focusing on today that will help you become the person (and leader) you want to be.
First, honesty is the foundation of everything else you should be doing. “Be clear and straight. Speak to people simply and honestly, but with respect. Connect with them, not through the head, but with the heart. Don’t play tricks.”
Next, be authentic. All great leaders are authentic, and recognised as such. Aligned with this is integrity. “This is sadly out of stock, not only in South Africa, but the world,” says Billy.
“There is nothing as disturbing as a leader without integrity, and on a personal level, you won’t achieve emotional stability if you aren’t a person of integrity.”
Finally, you need to embrace love. “Wish your employees well. Wish your family, friends and connections well. When we are given love, and trusted to perform, we take that and pay it forward. In the case of business, this means your employees are giving the same love to customers, but if everyone showed a little more love, the world would be a better place. When people feel cared for, they show up with their hearts and wallets, and they pay it forward.
“Great leaders understand this. They don’t only focus on making themselves better, but adding to everyone around them. Remember this: In every business, there are no bad employees, just bad leaders. Employees are a reflection of that.”
If you want to build a better future, business or life, you need to start with yourself.
Stop letting negative thoughts and minor irritations derail you. You are the master of your moods and thoughts, so take personal responsibility for them.
Shark Tank Funded Start-up Native Decor’s Founder on Investment, Mentorship And Dreaming Big
Vusani Ravele secured offers from every single Shark in the first episode of Shark Tank South Africa, eventually settling on an offer from Gil Oved from The Creative Counsel. Entrepreneur asked to him how this investment has changed his business.
- Player: Vusani Ravele
- Company: Native Decor
- Established: February 2016
- Visit: nativedecor.co.za
- About: Native Decor creates visually pleasing products from sustainable timber. The company’s designs are innovative and functional, with its creations mostly inspired by South African cultures, landscapes and wildlife.
It all started with a cordless drill. In February 2015, Vusani Ravele received a drill from his girlfriend as a Valentine’s Day gift. He immediately became obsessed.
“I couldn’t stop drilling holes in things,” Vusani laughs. “I just loved working with my hands.”
Unlike most people, who lose interest in a Valentine’s Day gift by the first day of March, Vusani’s passion for his cordless drill didn’t dissipate. Instead, it had reignited a spark. Thanks to that cordless drill, he rediscovered a love for design he’d first felt in high school. And one year later, he had started a company called Native Decor.
As a start-up he then made the bold move to enter the inaugural season of Shark Tank South Africa. He was funded by Gil Oved on the very first episode. It was a life-changing experience, but Vusani is keeping a level head. The money helps, but he’s trying not to let it change his approach too much.
I’m doing my best not to think of Native Decor as a funded start-up. The money has allowed me to do certain things, like buy a new CNC machine, but I still try to think like a founder without money. Once you have a bit of money in the bank, the temptation exists to throw it at every problem, but that’s not how you create a successful business.
You need to bootstrap and pretend that you don’t have a cent in the bank. With a bit of lateral thinking, you can often come up with a solution that doesn’t require money. It might require more effort, sure, but I believe it creates a stronger foundation for your business. If a business can carry itself from early on, its odds for long-term success are much higher. You also need to fight the urge to spend money on things like fancy premises or extra staff. The longer you can keep things lean, the more runway you create for yourself.
I didn’t enter Shark Tank just for the money. The money was important, of course, but there was more to it than that. Looking purely at money versus equity, Gil Oved’s offer wasn’t the best, but I knew that I wanted to work with Gil. Stepping into the room, my primary aim was to attract him to the business.
He wanted 50% equity for R400 000 of investment. I wanted to give away 25% for the same amount. We settled on 40% for R400 000 with an additional R3 million line of credit. It was more of the company than I initially wanted to give away, but I was okay with it, since I saw it as the cost of Gil’s involvement, which I knew would add bigger value to the business than just the cash injection.
Investment comes in many forms. I wanted Gil to invest in the business because I realised that investment isn’t purely about money. I didn’t just want him to invest his cash in Native Decor, I also wanted him to invest his time and energy. You can get money in different places. You can create a business that funds its own growth, for example, or you can get a loan from a bank.
What an investor like Gil offers, however, is knowledge and access to a network. Money can help a lot with the growth of a business, but a great partner can help even more. By giving Gil 40% of the business, I’ve ensured that he has skin in game. He has a vested interest in seeing Native Decor succeed, and that’s worth more than any monetary investment.
True mentorship can be a game-changer if you’re running a young start-up. A great advantage that often comes with investment is mentorship from someone who knows the pitfalls of the entrepreneurial game. With a new business, it’s easy to be sidetracked or to chase an opportunity down a dead end.
Gil is visionary, and he has helped me focus on the long-term goals I have for Native Decor. He has also helped me to think big. As young entrepreneurs, I believe we often think too small. We don’t chase those audacious goals. Someone like Gil, who has seen huge success, can help you push things further and to dream bigger.
You need to dream big, but act small. It’s important to have big dreams for your business, but you should also chase those easy opportunities that can help you build traction. When I started, I wanted to try and get my products into large retail stores, but the fact of the matter was, as a start-up, I didn’t have a strong negotiating position.
There was a lot of bureaucracy to deal with. Gil advised me to focus on the ‘low-hanging fruit’ — those small gift stores that would be keen to carry my products. By doing this, I’m gaining traction and building a track record for the business. Also, I realised the importance of aligning myself with the right kind of stores. Perhaps being in a large retailer isn’t a good idea, since this is where you typically get cheap items produced overseas. Unless you’re purely competing on price, that’s probably not where you want to be.
Funding is great but it’s not all about the money. If that’s what you’re chasing you’re doing your start-up an injustice.
Watch the Shark Tank investment episode here:
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