Our second competition winner is Matlankose Matsipa, a 42-year old entrepreneur and personal brand strategist. Matsipa won a power lunch with advertising industry doyen Peter Vundla and took the opportunity to question him on how he grew his business under the most adverse conditions. Matsipa also wins two intensive coaching sessions with Business Partners Mentor and Consulting Services. This will enable him to consolidate his business plan and take the marketing of his service offering to a new level.
Ad industry pioneer understands the value of perception
Peter Vundla was one of the founders of HerdBuoys, South Africa’s first black advertising agency, in 1991. He and his partners ran the company from Vundla’s rented home in Soweto. Six years later it merged with global ad agency McCann-Erickson to form HerdBuoys McCann-Erickson, of which he became chairman. He parted ways with the agency in 2005, having pioneered transformation in South African advertising.
While in the ad industry, he began to develop an interest in the investment arena. In 1995 he was a co-founder of investment company New Seasons. In 1996 he and two Soweto entrepreneurs formed the empowerment investment house Pamodzi. Pamodzi’s acquisition of a stake in what was then called African Merchant Bank led to Vundla becoming the executive deputy chairman of the bank. Today it is known as AMB Capital, a specialist investment banking business.
Vundla serves on several boards and continues to be a major proponent of black economic empowerment as chairman of the Presidential Working Group and the Black Business Executive Circle.
What lies at the core of your success? I believe that if you want to achieve in life, you have to be driven by values such as excellence, fairness and honesty. Business is about relationships after all, so much depends on how you treat your staff, clients, suppliers, partners and stakeholders.
When you launched Herdbuoys, none of you earned a salary for six months. What kept you going? It was mainly the love of advertising. We wanted to change the world around us so that black people could stop seeing themselves portrayed only as petrol attendants, taxi drivers and maids. It was immensely gratifying to see our ads on TV because they were so different.
What were your objectives in creating Herdbuoys? Jim Collins and Jerry Porras proposed the phrase BHAG – the Big Hairy Audacious Goal – in their article Building Your Company’s Vision. A BHAG (bee-hag) is a “10-to-30-year goal to progress towards an envisioned future”. Our BHAG was to challenge Afro-pessimism and to foreground African excellence.
You mention the importance of networking. Can you elaborate? Networking is about connecting with people of like interests for the purpose of uncovering opportunities and learning best practices. In a young business, you have to work hard to create a network and use it. Relying on the help of others from time to time can be enormously beneficial and can save you time, money and resources.
What was your big break? Our first break came from the then SA Breweries when the company gave us the account for one of their sorghum brands.
What other challenges did you have besides financial ones? I had to deal with racial prejudice. At O&M I was an account director who trained newcomers to the industry. But once I left the organisation, I no longer had the benefits that came with working for a white-owned agency. I solved that problem by putting together the top black advertising professionals in the country.
How do you manage business relationships? I have always believed that relationships must be established and nurtured, and never taken for granted. Some people believe it is good to be friends with your clients as they will forgive you when you make a mistake. My own policy is to separate business from friendship. I did not have to play golf with my clients because I was determined to not make mistakes. What advice do you have for a new business owner who is marketing a relatively novel concept like personal branding? The first thing to do is to follow your own concept of personal branding and get out there and market yourself. Also, know who your competitors are. You will not stand out in an intensely competitive market unless you know who you are up against. n
About Our Winner
Having completed his MBA degree last year, Matlankose Matsipa launched Gcamile Brand Solutions at the beginning of 2007. “Gcamile” means “outshine”, which sums up the mission of his business: to help companies and individuals build and nurture strong brands. Matsipa has a wealth of marketing and customer service experience in the retail, FMCG, hospitality, financial services, telecoms, manufacturing and publishing industries. His interests lie in people development. His objective is to enable individuals to understand and capitalise on their personal brand assets so that they can maximise their contribution to their work environment.
Rich List: 2019 Richest People In The World
They’re worth billions, and their wealth continues to grow each year. Here’s the top 10 richest people globally in 2019.
10. Jeff Bezos
Net Worth: USD 139,5 billion
Jeff Bezos founded e-commerce giant Amazon in a garage in Seattle, USA in 1994. He also purchased The Washington Post for $250 million in 2013.
Bezos believes in always taking a long-term view and living in the present moment.
“I think this is something about which there’s a lot of controversy. A lot of people — and I’m just not one of them — believe that you should live for the now.
I think what you do is think about the great expanse of time ahead of you and try to make sure that you’re planning for that in a way that’s going to leave you ultimately satisfied. This is the way it works for me. There are a lot of paths to satisfaction and you need to find one that works for you.”
7 Self-Made Teenager Millionaire Entrepreneurs
These teenager entrepreneurs have already made their first million and more. How did they do it and what’s their secret to success?
1. Evan of YouTube
Evan and his father Jarod started a youtube channel ‘Evantube’ to review kids’ toys. The channel was a resounding success with other kids – so much so that today it boasts just over 6 million subscribers.
Evantube brings in more than USD1.4 million a year from ad revenue generated on the channel.
How did it start? With a father-son fun project making Angry Birds Stop Animation videos, and morphed into doing reviews on toys and video games. But Jarod’s dad is aware of the responsibility of Evan’s sudden fame and hopes to teach Evan about the importance of being a good role model for others.
“Most recently, we had the opportunity to work with the Make-a-Wish Foundation, and were able to fulfill the wish of a young boy whose dream was to meet Evan and make a video with him at Legoland,” explains Jared. “It was a really incredible experience. YouTube has definitely opened many doors, and the kids have gotten to do some pretty amazing things.”
Expert Advice From Property Point On Taking Your Start-Up To The Next Level
Through Property Point, Shawn Theunissen and Desigan Chetty have worked with more than 170 businesses to help them scale. Here’s what your start-up should be focusing on, based on what they’ve learnt.
- Players: Shawn Theunissen and Desigan Chetty
- Company: Property Point
- What they do: Property Point is an enterprise development initiative created by Growthpoint Properties, and is dedicated to unlocking opportunities for SMEs operating in South Africa’s property sector.
- Launched: 2008
- Visit: propertypoint.org.za
Through Property Point, Shawn Theunissen and his team have spent ten years learning what makes entrepreneurs tick and what small business owners need to implement to become medium and large business owners. In that time, over 170 businesses have moved through the programme.
While Property Point is an enterprise development (ED) initiative, the lessons are universal. If you want to take your start-up to the next level, this is a good place to start.
Risk, reputation and relationships
“We believe that everything in business comes down to the 3Rs: Risk, Reputation and Relationships. If you understand these three factors and how they influence your business and its growth, your chances of success will increase exponentially,” says Shawn Theunissen, Executive Corporate Social Responsibility at Growthpoint Properties and founder of Property Point.
So, how do the 3Rs work, and what should business owners be doing based on them?
Risk: We can all agree that there will always be risks in business. It’s how you approach and mitigate those risks that counts, which means you first need to recognise and accept them.
“We always straddle the line between hardcore business fundamentals and the relational elements and people components of doing business,” says Shawn. “For example, one of the risks that everyone faces in South Africa is that we all make decisions based on unconscious biases. As a business owner, we need to recognise how this affects potential customers, employees, stakeholders and even ourselves as entrepreneurs.”
Reputation: Because Property Point is an ED initiative, its 170 alumni are black business owners, and so this is an area of bias that they focus on, but the rule holds true for all biases. “In the context of South Africa, small black businesses are seen as higher risk. To overcome this, black-owned businesses should focus on the reputational component of their companies. What’s the track record of the business?”
A business owner who approaches deals in this way can focus on building the value proposition of the business, outlining the capacity and capabilities of the business and its core team to deliver how the business is run, and specific service offerings.
“From a business development perspective, if you can provide a good track record, it diminishes the customer’s unconscious bias,” says Shawn. “Now the entrepreneur isn’t just being judged through one lens, but rather based on what they have done and delivered.”
Relationship: “We believe that fundamentally people do business with people,” says Shawn. “There needs to be culture match and fluency in terms of relations to make the job easier. As a general rule, the ease of doing business increases if there is a culture match.”
This relates to understanding what your client needs, how they want to do business, their user experience and customer experience. “We like to call it sharpening the pencil,” says Desigan Chetty, Property Point’s Head of Operations.
“In terms of value proposition, does your service offering focus on solving the client’s needs? Is there a culture match between you and your client? And if you realise there isn’t, can you walk away, or do you continue to focus time and energy on the wrong type of service offering to the wrong client? This isn’t learnt over- night. It takes time and small but constant adjustments to the direction you’re taking.”
In fact, Desigan advises walking away from the wrong business so that you can focus on your core competencies. “If you reach a space where you work well with a client and you’ve stuck to your core competencies, business is just going to be easier. It becomes easier for you to deliver. Sometimes entrepreneurs stretch themselves to try to provide a service to a client that’s not serving either of their needs. This strategy will never lead to growth — at least not sustainable growth.”
Instead, Desigan recommends choosing an entry point through a specific offering based on an explicit need. “Too often we see entrepreneurs whose offerings are so broad that they don’t focus,” he says. “Instead, understand what your client’s need is and address that need, even if it means that it’s only one out of your five offerings. Your likelihood of success if you go where the need is, is much higher.
“Once you get in, prove yourself through service delivery. It’s a lot easier to on-sell and cross sell once you have a foot in the door. You’re now building a relationship, learning the internal culture, how things work, what processes are followed and so on — the client’s landscape is easier to navigate. The challenge is to get in. Once you’re in, you can entrench yourself.”
Desigan and Shawn agree that this is one of the reasons why suppliers to large corporates become so entrenched. “Once you’re in, you can capitalise from other needs that may have emanated from your entry point and unlock opportunities,” says Shawn.
Building a sustainable start-up
While all start-ups are different, there are challenges most entrepreneurs share and key areas they should focus on.
Shawn and Desigan share the top five areas you should focus on.
1. Align and partner with the right people
This includes your staff, stakeholders, partners, suppliers and clients. Partnerships are the best thing to take you forward. The key is to collaborate and partner with the right people based on an alignment of objectives and culture. It’s when you don’t tick all the boxes that things don’t work out.
2. Make sure you get the basics right
Never neglect business fundamentals. Do you have the processes and systems in place to scale the business?
3. Understand your value proposition
Are you on a journey with your clients? Is your value proposition aligned to the need you’re trying to solve for your clients? Are you looking ahead of the curve — what’s the problem, what are your clients saying and are you being proactive in leveraging that relationship?
4. Unpack your value chain
If you want to diversify, understand your value chain. What is it, where are the opportunities both horizontally and vertically within your client base, and what other solutions can you offer based on your areas of expertise?
8. Don’t ignore technology
Be aware of what’s happening in the tech space and where you can use it to enable your business. Tech impacts everything, even more traditional industries. Businesses that embrace technology work smarter, faster and often at a lower cost base.
Ultimately, Desigan and Shawn believe that success often just comes down to attitude. “We have one entrepreneur in our programme who applied twice,” says Shawn. “When he was rejected, he listened to the feedback we gave him and instead of thinking we were wrong, went away, made changes and came back. He was willing to learn and open himself up to different ways of approaching things. That business has grown from R300 000 per annum to R20 million since joining us.
“Too many business owners aren’t willing to evaluate and adjust how they do things. It’s those who want to learn and embrace change and growth that excel.”
Networking, collaborating and mentoring
Property Point holds regular networking sessions called Entrepreneurship To The Point. They are open to the public and have two core aims. First, to provide entrepreneurs access to top speakers and entrepreneurs, and second, to give like-minded business owners an opportunity to network and possibly even collaborate.
“We believe in the power of collaboration and networking,” says Desigan.
“Most of our alumni become mentors themselves to new entrants to the programme. They want to share what they have learnt with other entrepreneurs, but they also know that they can learn from newer and younger entrepreneurs. The business landscape is always changing. Insights can come from anywhere and everywhere.”
The To The Point sessions are designed to help business owners widen their network, whether they are Property Point entrepreneurs or not.
To find out more, visit www.ettp.co.za
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