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Joshin Raghubar Of iKineo Ventures Discusses The Powering Of Showing Up

Joshin has an impressive CV. Over and above iKineo Ventures, which has a turnover of R115 million and includes three extremely promising start-ups, he’s also chairman of the Bandwidth Barn and the Cape Innovation and Technology Initiative, and a Yale Greenberg World Fellow.

Nadine Todd

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Joshin Raghubar

Vital Stats

When Joshin Raghubar was 23, he found himself heading up the Africa Connection Rally, an ambitious project that spanned the African continent and aimed to break the world record for the amount of days taken to drive across Africa. The logistics involved were staggering. How did he find himself in such a trusted and important position? Because he showed up. He was at the office at 9pm when his boss and the chief of staff of the Minister of Transport were brainstorming it. By the next day he was spearheading the project.

When we started out, we had a desk in CiTi’s offices and were hooked into its Internet cable. We were bootstrapping the business, had no money, and couldn’t afford connectivity costs until CiTi’s Bandwidth Barn helped us share those costs. I’m still involved with the Barn today, because I know how essential that support is to start-ups.

The secret to business success isn’t just having the right product or idea and product market fit. It’s not only cash flow and getting paid. It’s the culmination of your ideas and mindset; making connections, helping other people and businesses and operating within a community. Often, it starts with just showing up.

Success often begins with understanding yourself. I’ve been laser focused on some things, and at other times I’ve had a number of different things on the go. That’s when I’m happiest. You need to know yourself and play to your strengths. If you’re better at focus, do that. I need a few things on the go — not too many, because then I get frazzled. But there’s a sweet spot, and I’ve found mine.

Related: Running A Business Like ClockWork – The Founders Weigh In On Launch Success

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I’ve been like this since varsity. I was on track to become a CA, and I did the normal vacation work at large consulting firms for years one and two. By year two I realised that the work was interesting, but not a full expression of myself.

By years three and four I was doing all kinds of things after hours and during term breaks: I was a runner on a film set, a barman, I started a few small businesses. I was interested in the world and I didn’t pigeon-hole myself. I was on the lookout for different experiences.

I was even on the management of the UCT chapter of AIESEC, the largest student organisation in the world for business students. This gave me access to University labs and computers. Raymond Ackerman was on our board and we ran business incubation clinics. I wanted to be involved in everything and still do.

I’m multi-dimensional, and so are my work and interests. When I’m working on a few projects at a time, I’m more productive. But to focus on different things in business, I need a team that plays to my strengths and weaknesses. I’ve built up an incredible foundation. It doesn’t happen overnight, but if you’re interested in scale and growth, you need to build an infrastructure that supports your passions, goals and dreams.

For example, learning is a big part of what drives me. In a fulfilled and happy life, learning and growth are important. I’ve pushed myself into many incredible spaces because of this love for learning. Opportunities have opened up for me because I’m out there. For example, I was selected as a Yale Greenberg Fellow in 2016. This required four months away from the office at the Yale campus, and I was able

to do it because of the team I’ve built up around me.

Many entrepreneurs are so focused on the day to day needs of their businesses, they miss the bigger picture. This programme is Yale’s flagship global leadership programme, and it was an inflection point in my career. If I’d only been focused on the time away from the office, I wouldn’t have even applied. Instead, I took the risk, and ended up with a group of 16 incredible emerging leaders from around the world: A human rights worker from Syria, a female politician from Afghanistan, China’s largest independent media entrepreneur, artists and film makers. It’s designed to be diverse, and for us to learn from each other and contribute to the Yale community. We had unlimited access to all courses on campus. It was incredible.

Nine times out of ten, success begins with just showing up. This was how I ended up project managing the Africa Connection Rally when I was just 23.

I’d done some vacation work for Ravi Naidoo’s business, Interactive Africa. By the time I finished my degree, I had an interview lined up with JP Morgan in London. But I’d graduated in December, and would only be leaving for London in March. I wanted to fill the time, and so I went back to Ravi and arranged to work for him for a few months.

I loved it. I joined an entrepreneurial business rather than becoming an investment banker. I was young, but I could speak the business lingo, and I was eager to learn. I developed a habit of leaving the office at the end of the day and then returning after supper to do some extra work in the peace and quiet. I’m not great in the mornings, but I’m creative at night.

One night I got back to the office and the Transport Minister, Jay Naidoo’s chief of staff, was brainstorming with Ravi about the Africa Connection Rally. The rally was celebrating a historic telecomms agreement that stretched across Africa. The idea was to break the world record and drive across Africa in 26 days.

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I was called into the session, and by the next morning I was running the project. That’s when I started appreciating the power of showing up. No one was going to seek me out and ask me if I wanted to be involved. I had to speak up, offer real opinions, and more importantly, a passion and willingness to get involved and give it my all. That’s what entrepreneurship is, but it’s also the basis of any success we have in life.

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As a start-up, you need to be confident. What you’re doing is tough; you have to keep taking risks. Once you’re through start-up phase, you need to grow. But you need to find a balance. You can’t be so self-assured that you don’t learn from mistakes, because you will make them.

For us, the Cool Aid was a discussion group called the Idea Collective, run by myself and a few friends. We were fresh out of varsity, employed, and interested in how tech was changing business, marketing and the way we communicated. We launched a series of exclusive events to discuss these topics and invited business and social icons. This helped us to build a great network and repository of ideas. We were a think tank for tech, and were often invited to comment on tech-related issues.

On the one hand, it was incredible. We had put ourselves out there, and were developing a network that would be invaluable. When you’re building a business, your network is exponentially more important than funding.

But in other ways, it blinded us to the realities of launching a business. We were all employed, with this great idea that we could create our own ventures. We had no venture capital and were incredibly naïve about the realities of a start-up, but we were fuelled by our own cleverness, and the fact that we could see what the future held.

With that in mind, I resigned after 30 months at Interactive Africa. Working with Ravi made me want to test my own entrepreneurial chops, and I thought I was ready.

I was the only one in our group who quit my job and we had no cash flow. While I believe a business can be bootstrapped without funding, the secret to success for any bootstrapped business is cash flow. Without it you’re dead in the water. Our idea had been to build cash flow and then raise capital, but we hadn’t considered how long that would take.

To make the business work, we needed to stop drinking our own Cool Aid. We were smart, tech-savvy guys who had built a great network and gained exposure, but that wasn’t going to build a business. We also needed to bring in some cash — immediately. Without cash flow there was no business, and so we needed to sell something.

My experience was in the convergence of marketing and data. I believed in the concept of mass customised communications and targeted database-driven marketing. We designed flash mailers, and these became our biggest revenue stream.

Based on this and big email campaigns, we built a marketing division called iKineo that focused on customer engagement and one-on-one marketing. We believed we were uniquely positioned to solve a new marketing need. We could speak tech, we understood development and we had business and marketing backgrounds. But we were ahead — we spent more time educating our customers than selling to them for the first five to six years. We needed another ‘big’ idea while the market caught up.

We might have had a reality check, but we were also still young and ballsy — and we believed we’d embarked on a journey that was changing the way brands would market in the future. One of the key areas we identified as ripe for disruption was the tobacco industry. With restrictive smoking laws coming into effect, the tobacco industry needed new ways to market its brands.

I’ve always believed in being an open source person. It’s a term that covers everything — being open to new experiences, new ideas, and particularly new people. It’s an essential trait for successful networking.

It also gave us the confidence we needed as a start-up founded by kids who weren’t yet 25 to approach British American Tobacco (BAT), the largest tobacco manufacturer in the world, to pitch our new marketing idea that we believed would solve their problems.

At that stage, BAT had no plan to counter the new advertising laws, and no understanding of the power of data. For decades, big tobacco had sold a lifestyle through sponsorships, billboards and big screen advertising — all of which was about to end.

We pitched something completely different for Lucky Strike: An exclusive opt-in party that required fingerprints, joining a database and the excitement of a surprise. It created high target engagement, and grew a database for the brand. They asked us if it was possible. We said absolutely. There were two of us in the business and we believed we could drive BAT’s entire customer engagement model in South Africa. Maybe we were still drinking our own Cool Aid.

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The Lucky Strike parties worked, and slowly the power of data and digital marketing began to take hold. Fewer customers needed to be educated on what iKineo could do, and more were asking us for quotes and solutions to their marketing needs.

As the business grew, we never lost sight of what worked well for us, and we created a new exclusive networking group with Moët & Chandon as our partners. Members took turns to invite industry icons to speak at the events. It was an incredible networking experience, and has opened many doors for me over the years. Maria Ramos, Paul Harris, Russell Loubser, Robbie Brozin, Wendy Luhabe, Herman Mashaba and Isaac Shongwe were all guests at these evenings.

Through these relationships, I was invited to join the Aspen Global Leaders Network, the Africa Leadership Initiative and the Bertelsmann Foundations’s Global Transformation Thinkers Programme, all of which required nomination. Once you’re out there, and people know you, your ideas and what you stand for, offers and opportunities follow. This is how I learnt about the Yale Fellowship. 11 000 people applied and only 4 300 completed the application. This was then shortlisted to 50, and 16 were chosen after an interview process. This opportunity wouldn’t have arisen without my connections. This is my best advice — be open. Network. Build relationships. There is nothing more powerful than people.

Through these experiences, one thing became clear: Much of leadership and business success comes down to the art of storytelling. I’ve taken a Harvard course on narrative leadership, and I’ve watched great industry captains over the years, and they all share this trait — they can tell a story. They know how to capture your imagination. Looking back, that’s what we did with Lucky Strike and all of our early clients, while we were educating them on the direction marketing was taking. It’s also why the Idea Collective and our Moët & Chandon evenings worked so well. They were all about story telling. You need to be authentic, and willing to share. Great leaders are open, honest and transparent. They are willing to share their successes and failures.

You can only join networks like these if you’re adding value. Relationships are additive, not extractive. Even as a young person I felt like I was adding value because my perspective was different.

These experiences taught me two things. First, I did have a story. The reason I went into business when I come from a family of teachers and doctors was because half of my life was pre-1994 South Africa. I turned 18 and voted in 1994. I was conscious of our country’s political liberation, but the economic liberation still hasn’t happened. I wasn’t a political change driver, but I can make an economic impact. My biggest lever for change is business. It’s why I’m still so involved in the Bandwidth Barn and CiTi.

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The second is that it’s in my nature to understand future trends and tech drivers, pain points and challenges. Innovation and funding opportunities are all about pulling these together, spotting the gap and then telling the story so clients understand it. It’s one thing to have an idea, but you need to be able to sell it. You have to explain it, unpack it and pull those threads together. And that’s where the art of storytelling is so vital.

Understanding the new texture of business has also been important. It’s no longer just about the bottom line. Business needs to connect to social dividends. This is at the core of everything we do.

We thought we’d be a venture creation business when we launched. The reality is that this takes money, which we didn’t have. We bootstrapped everything, which always takes longer than you think it will. So we built iKineo as an agency to generate cash flow.

If you don’t have capital you will always build a services business first. They’re cash flow generative, because all you need is an idea that you can deliver on, and then you get paid — no manufacturing is required, and your cash cycle is good.

For years, 90% of my day was focused on this, and not venture building. Today that ratio has shifted, but it’s taken time.

In 2003, two years after we launched, a friend invested enough capital to buy out the other partners. He’s still a shareholder today. Since then, we’ve grown organically, self-funding iKineo until we could start incubating new ventures within the business.

We’ve been able to do this because I never lost sight of the long-term strategy: To accumulate capital and create an environment and infrastructure that could support new ventures and realise our dream. We tried it earlier, but we didn’t have capital, time and infrastructure for new venture development. We systematically built our capabilities, learnt by failing a few times, and put those learnings into our model and new businesses.

Although the agency has been our backbone, it’s also an increasingly challenging business model. When we were smaller we were more profitable. In this industry, as you grow you change from a value or IP-based model to a resource plus model. While we were building the business and coming up with new and innovative solutions for our clients, we were able to price ourselves according to our IP and ability to deliver.

But, as we grew and targeted larger clients and advertising contracts, we started following the industry and large corporate template, where clients tell you how many people they expect on their account, estimate your costs and then give you a percentage mark-up. The problem is that an account is measured by the people on it, and they’re dedicated resources. If you lose that account, you can’t redeploy them back into the business unless a new account is landed. You end up employing more people at lower margins.

I fought this model and lost a large corporate client because we said no to the resource plus model, but eventually we had to align with our industry. We knew this wasn’t where our future growth lay. It’s been an important part of the path to get there, but it’s never been our final destination.

When you reach a stage where you have to follow set procurement models to land big clients, you either agree or reposition, and that’s what we’re doing with our new ventures: Sprout, Explore Sideways and The Field.

Sprout is a programmatic media business that we’ve developed with partners from Silvertree Capital, which was launched by the co-founders of Zando. Peter Allerstorfer and Manuel Koser came from Germany to launch Zando in South Africa. In two years, they built a business with 200 employees, and an incredible model for hiring people and mastering online marketing and retargeting.

Three years ago, there was an entire issue of The Economist dedicated to programmatic advertising. We started asking ourselves where online buying was going, and where programmatic media buying would be. I called Manuel to ask his opinion, and discovered he was leaving Zando and launching a tech investment firm. We realised we were ideal partners. They had the knowledge and experience in this field, and we could incubate the new venture in iKineo.

Explore Sideways is an internal start-up. It’s the product of two distinct business developments. The first is that we believe the future of agencies lies in the ability to be strategically involved with a client’s R&D. To test our theory, we developed an app for Western Cape Tourism. They couldn’t afford it, so we carried it ourselves in return for their endorsement. It was designed as a platform to find all 500 Cape wineries in one place. It’s a fragmented industry, and there was a need for this information, particularly to put the smaller wineries on the map.

But it was difficult to monetise, and we realised that its users were mostly tour operators, who tended to only use the wineries they knew well.

The second development involves the consumer shift from products to experiences, and international spend on luxury experiences is on the rise. The result is that Explore Sideways has developed into an immersive luxury travel tech business.

In two years, we’ve built up an incredible team. We’ve had 3 000 guests to date, including various international celebrities and their families. We’re in our niche, and on a growth path. The plan is to take the business international, and we will be in Napa Valley in California by the end of 2018.

The Field is our third start-up. It’s been incubated within iKineo with three managing partners who are all experts in their fields, Ann Lamont, Alison Jacobsen and Barbara Dale-Jones.

The Field helps large organisations through the digital transformation process to become future fit. We partner with the best educational brands in the world, including Stanford, to offer African and European executives global programmes at a fraction of the cost.

Like iKineo, the business is generating cash flow through consulting and coaching to big corporates while the rest of the programmes are developed, and we’re focusing on people change management, product development and an innovation lab.

Our venture build strategy is based on three pillars: Create the space to excel, have the required investment and working capital, and then attract the best talent.

The third pillar is absolutely vital to the success of these ventures. Today I can spend 90% of my time on new ventures, but I can’t focus equally on three start-ups and two more in development. Our success lies in the people driving these businesses.

In Sprout we have a CEO and CTO who moved here from the Netherlands because programmatic is new in South Africa and the skills don’t yet exist here. Before we could convince Stijn Smolders, who was newly married with a baby boy, to take a chance with us as Sprout’s CEO, we needed to derisk the business and create the right space for him.

Explore Sideways is run by Brittany Hawkins, who is an American wine marketing expert. She will be instrumental in our international expansion.

Ultimately, you need strong back-end and support systems and the ability to pay competitive salaries and offer shares. We’ve learnt that running a business takes on a different dimension when management feels ownership. Our managers deliver and have a great attitude, but shares reward and focus those abilities.

Entrepreneur Profiles

6 Lesson Gems From Appanna Ganapathy That Helped Him Launch A High-Growth Start-Up

Twenty years after first wanting to own a business, Appanna Ganapathy launched ART Technologies, a business he aims to grow throughout Africa, starting with Kenya thanks to a recently signed deal with Seacom. As a high-growth entrepreneur with big plans, Appanna spent two decades laying the foundations of success — and now he’s starting to collect.

Nadine Todd

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Vital Stats

Like many entrepreneurs before him, Appanna Ganapathy hadn’t even finished school and he was already thinking about his first business venture. A friend could secure the licensing rights to open Nando’s franchises in Mozambique, and they were very keen on the idea — which Appanna’s mom quickly dampened. “You can do whatever you want,” she said. “As long as you finish your degree first.”

Unlike many other entrepreneurs however, Appanna not only finished his degree, but realised that he had a lot of skills he needed to develop and lessons to learn before he’d be ready to launch the business he wanted.

“We launched ART Technologies just over two years ago. If I had started any earlier, I don’t think I would have been as successful as I am now,” he says.

Here are six key lessons that Appanna has learnt along his journey, which have allowed him to launch a high-growth start-up that is positioned to make an impact across Africa.

1. You don’t just need a product – you need clients as well

Business success is the ability to design and execute a great product and solution, and then be able to sell it. Without sales, there is no business. This is a lesson Appanna learnt while he was still at university.

“I was drawn to computers. I loved figuring out how they worked, playing computer games — everything about them,” he says. “My parents lived in Mozambique, and during my holidays I’d visit them and a friend who had a computer business. I helped him assemble them and thought I could do this too while I was studying. I convinced my dad to buy me a car so that I could set up my business — and never sold or assembled a single computer. I delivered pizzas instead.”

So, what went wrong? The simple truth was that at the time Appanna had the technical skills to build computers, but he lacked the ability to sell his product.

“If someone had said, ‘I’ve got an order for 30 computers’, I would have filled it — but to go out and get that order — I didn’t really even know where to start.”

2. Price and solution go hand-in-hand

As much as you need the ability to sell your solution, you also need a market that wants and needs what you’re offering, at a price point that works for everyone.

In 2007, Appanna was approached by a former supplier whom he had worked with while he was based in Mozambique. The supplier had an IT firm and he wanted to expand into South Africa. He was looking for a local partner who would purchase equity shares in the company and run the South African business.

“I loved the opportunity. This was something I could build from the ground up, in an area I understood well,” says Appanna. The firm set up and managed IT infrastructure for SMEs. The value proposition was simple: “We could offer SMEs a service that they could use for a relatively low cost, but that gave them everything an enterprise would have.”

The problem was that although Appanna and his team knew they had a great product, they were competing on price with inferior products. “If we couldn’t adequately unpack the value of our solution, an SME would choose the cheaper option. It was a big lesson for me to learn. It doesn’t matter how good the solution is that you’re offering — if it’s not at a price point that your target market accepts, they won’t choose you.”

It was this understanding that helped Appanna and his team develop the Desktop-as-a-Service solution that ART Technologies now offers the SME market.

“While I was developing the idea and the solution, I needed to take three key things into account: What do SMEs need from an IT infrastructure perspective, what is the most cost-effective way to offer them that solution, and what will the market pay (and is it enough to cover our costs and give us a small profit margin)?”

Appanna’s experience in the market had already taught him how cost-conscious SMEs are, and so he started developing a solution that could deliver value at a price point SMEs could accept. His solution? A unique Desktop-as-a-Service product that combines all the processing power and Microsoft products a business needs, without any capex outlay for servers or software.

“It’s a Cloud workstation that turns any device into a full Windows computer,” Appanna explains. “We hold the licences, and our clients just access our service. A set-up that would cost between R180 000 and R200 000 for 15 users is now available for R479 per user per month.”

It took Appanna and his partners time to build the solution, but they started with the price point in mind, which meant a solution could be designed that met their needs as well as the needs of the market.

“Too many businesses set everything up, invest in the solution, and then discover they can’t sell their product at the price point they need. My time in the market selling IT and infrastructure solutions gave me invaluable insights into what we needed to deliver on, and what we could realistically charge for our service.”

3. Get as much on-the-ground experience as you can

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The time that Appanna spent building the IT firm he was a part-owner of was invaluable. “I started as a technical director before being promoted to GM and running the company for three and a half years. Those years were very, very important for me. They’re where I learnt everything about running a business.

“When I started, I was responsible for sales, but I didn’t have to actually go out and find clients, I just had to meet them, compile quotes and handle the installations. Everything I did was under the guidance of the company’s CEO, who was based in Mozambique. Being the guy who did everything was the best learning ground for me. It set me up for everything I’m doing today. In particular, I learnt how to approach and deal with people. Without people and clients your business is nothing.”

Appanna didn’t just learn by default — he actively worked to expand his understanding of all facets of the business. “At the time I wasn’t planning on leaving to launch my own business,” he says. “I was a shareholder and I wanted to grow that business. That meant understanding as much as possible about how everything worked. If there was something I wasn’t sure of — a process, the numbers, how something worked — I asked. I took personal responsibility for any errors and got involved in every aspect of the business, including areas that weren’t officially ‘my job’. I wanted to really grow and support the business.”

4. Stay focused

Interestingly, while the experience Appanna has accumulated throughout his career has allowed him to build a high-growth start-up, it also taught him the importance of not wearing too many hats as an entrepreneur.

“I’m glad I’ve had the experience of wearing multiple hats, because I’ve learnt so much, but I’ve also learnt that it’s important to pick a lane, not only in what you do as a business, but in the role you play within your business. I also race superbikes in the South African Kawasaki ZX-10 Cup; through this I have learnt how important it is to focus in the moment without distractions and this is a discipline I have brought into the business.”

“If you’re the leader of an organisation, you need to let things go. You can’t be everything to everyone. When I launched ART Technologies, I knew the key to growth would be the fact that although I’m technical, I wasn’t going to run the technical side of the business. I have strong technical partners whom I trust, and there is an escalation framework in place, from tech, to tech manager, to the CTO to me — I speak tech and I’m available, but my focus is on strategy and growth. I believe this is the biggest mistake that many start-ups make. If you’re wearing all the hats, who is looking at where you’re going? When you’re down in the trenches, doing everything, it’s impossible to see the bigger picture.”

Appanna chose his partners carefully with this goal in mind.

“All the partners play a very important role in the business. Ruaan Jacobs’s strength is in the technical expertise he brings to the business and Terry Naidoo’s strength is in the support services he provides to our clients. Terry is our technical manager. He has the most incredible relationship with our customers — everyone wants to work with Terry. But there’s a problem with that too — if we want to scale this business, Terry can’t be the technical point for all of our customers.

“As partners we have decided what our blueprint for service levels will be; this is based on the way Terry deals with clients and he is developing a technical manual that doesn’t only cover the tech side of the business, but how ART Technologies engages with its customers.

“Terry’s putting his essence down on paper — a step-by-step guide to how we do business. That’s how you build a service culture.”

5. Reputation, network and experience count

Many start-ups lack three crucial things when they launch: Their founders haven’t built up a large network, they don’t have a reputation in the market, and they lack experience. All three of these things can (and should) be addressed during start-up phase, but launching with all three can give the business a valuable boost.

Appanna learnt the value of networks at a young age. Born in India, he moved to Zambia with his family as a young child. From there he moved to Tanzania and then Mozambique, attending boarding school in Swaziland and KwaZulu Natal. At each new school, he was greeted by kids who had formed strong bonds.

“I made good friends in those years, but at each new school I recognised how important strong bonds are, particularly as the outsider.”

Appanna’s early career took him back to Mozambique, working with the UN and EY on various projects. When he moved to South Africa, as a non-citizen he connected with his old boss from the UN who offered him a position as information officer for the Regional Director’s team.

His next move would be to the tech company that he would run for just over three years — also the product of previous connections. “Who you know is important, but how you conduct yourself is even more so,” says Appanna. “If your reputation in the market place is good, people will want to do business with you.”

Appanna experienced this first hand when he left to launch his own business. “Some key clients wanted to move with me,” he says. “If I had brought them in it would have settled our business, but I said no to some key customers who hadn’t been mine. I wasn’t ethically comfortable taking them with me.”

One of those multinational clients approached Appanna again six months later, stating they were taking their business out to tender and that they were hoping ART Technologies would pitch for it. “Apart from the Desktop-as-a-Service product, we also provide managed IT services for clients, particularly larger enterprise clients. Due to the client going out on tender and requesting for us to participate, we pitched for the business and won. The relationship with this client has grown, allowing us to offer them some of our services that they are currently testing to implement throughout Africa.”

“I believe how we conduct ourselves is essential. You need your own personal code of ethics, and you need to live by it. Business — particularly in our environment — is built on trust. Our customers need to trust us with their data. Your reputation is key when it comes to trust.”

Interestingly, although Appanna and his team developed their product based on a specific price point, once that trust is built and a certain standard of service is delivered, customers will pay more.

6. Start smart and start lean

Appanna was able to launch ART Technologies with the savings he and his wife, Kate, had put aside. He reached a point where he had ideas he wanted to take to market, but he couldn’t get his current business partners to agree to them — and so setting up his own business became inevitable.

Although he was fortunate to have savings to bootstrap the business, it was essential for the business to be lean and start generating income as quickly as possible. This was achieved in a number of ways.

First, Appanna and Kate agreed on a start-up figure. They would not go beyond it. “We had a budget, and the business needed to make money before that budget was reached.” The runway Appanna gave himself was only six months — highly ambitious given the 18-month runway most start-ups need. “Other than my salary we broke even in month three, which actually extended our runway a bit,” says Appanna.

Appanna had a server that he used to start with, and purchased a second, bigger server four months later. He also launched another business one month before launching ART Technologies — ART Call Management, a virtual PA services business that needed a PABX system, some call centre technology and two employees.

“I’d been playing around with the idea for a while,” says Appanna. “We were focused on SMEs, and I started noticing other challenges they faced. A lot of entrepreneurs just have their cellphones, but they aren’t answering them as businesses — it’s not professional.

“In essence we sell minutes — for R295 you get 25 incoming calls and 50 minutes of transferred calls. We answer the phone as your receptionist, transfer calls and take messages. How you use your minutes is up to you. For example, if you supply the leads, we can cold call for you. ART Technologies uses the call management business as a reception service and to do all of our cold calling. It’s kept the business lean, but it’s also brought in an income that helped us with our runway.” In 2017 ART Call Management was selected as one of the top ten in the SAGE-702 Small Business Awards.

The only problem with almost simultaneously launching two businesses is focus. “It’s incredibly important to know where you’re putting your focus,” says Appanna. “The call management business has been essential to our overall strategy, but my focus has been pulled in different directions at times, and I need to be conscious of that. The most important thing for any start-up is to know exactly where your focus lies.”


Into Africa

Thanks to a distribution deal signed locally with First Distribution, ART Technologies was introduced to Seacom, which has available infrastructure in a data centre in Kenya.

“It’s a pay-per-client model that allows us to pay Seacom a percentage of every client we sign up,” says Appanna. “First Distribution will be our sales arm. They have a webstore and resellers, and we will be opening ART Kenya with a shareholder who knows the local market.”

From there, Appanna is looking to West Africa and Mauritius. “We have the product and the relationship with Seacom gives us the foothold we need to grow into East Africa.”

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Entrepreneur Profiles

Kid Entrepreneurs Who Have Already Built Successful Businesses (And How You Can Too)

All over the world kids are abandoning the traditional notion of choosing a career to pursue until retirement. Gen Z aren’t looking to become employable job-seekers, but creative innovators as emerging business owners.

Diana Albertyn

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Do kids have an advantage or disadvantage when it comes to starting and building a company? It depends on how you look it. Juggling school, friends, family and other aspects of childhood and adolescence comes with its own requirements, but perhaps this is the best age to start.

“Being an entrepreneur means having to learn, focus, and connect to people and these are all traits that are valuable throughout life. Learning this when you are young is especially crucial, and will set you up for success and to be more open to other opportunities,” says billionaire investor, Shark Tank personality and author Mark Cuban.

Here are some of the most successful kidpreneurs who have cashed in on their hobbies, interests and needs to start and grow million dollar businesses borne from passion and innovation:

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Entrepreneur Profiles

30 Top Influential SA Business Leaders

Learn from these South African titans of industry to guide you on your entrepreneurial journey to success.

Nicole Crampton

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Entrepreneurship is said to be the answer to South Africa’s unemployment challenges and slow growth, but to foster entrepreneurship we ideally need business leaders to impact grass root efforts. Business leadership is vital to improved confidence and growth. These three titans of global industry say:

  • “As we look ahead, leaders will be those who empower others.” – Bill Gates
  • “Leaders are also expected to work harder than those who report to them and always make sure that their needs are taken care of before yours.” – Elon Musk
  • “Management is about persuading people to do things they do not want to do, while leadership is about inspiring people to do things they never thought they could.” – Steve Jobs

Here are 30 top influential SA business leaders forging the path towards a prosperous South African future.

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