- Player: Justin Stanford
- Company: 4Di Group
- Est: 2003
- Visit: www.4digroup.com
Picture this. It’s the early 2000s, and Justin Stanford, known for his academic record, has decided he wants to drop out of school.
He’s in grade 11, and he’s terrified the tech wave will pass him by. He’s been following the Silicon Valley dot com boom (unusual for a kid raised on a fruit farm an hour outside of Cape Town), and he’s read about the young entrepreneurs who have sold Hotmail to Microsoft for a small fortune.
He’s reading his future in the stars – via Alta Vista – and he knows it doesn’t start with him stuck in a classroom.
“I wanted to be a tech entrepreneur and I wanted to do it now,” he says. “I was obsessed with the idea and lost all interest in school. I went from the top to the bottom of the class, and everyone was worried about me. But I was determined.”
So what does he do? He does what any great entrepreneur worth his salt does. He negotiates. “I started with my dad,” he says. “I needed to get him on board first.” It took a while, but Stanford managed to convert his dad to his way of thinking. This solved nothing. “I was 17, I didn’t have a car – and couldn’t drive even if I did – I had no money, and no access to the Internet, which is what I really needed.
“I couldn’t launch my dreams from the farm, but I also wasn’t ready to move to Cape Town on my own.”
Enter his second round of negotiations with the principal of the college he’d just convinced his dad to let him drop out of. “I managed to convince him to let me stay on as a boarder, with a small office and Internet access. They moved me around wherever they had a small space for me, and in return I helped out the IT department.
For the next year, Stanford was free to pursue his own curriculum, which focused largely on furthering his coding skills, researching on the net and finding out as much as he could about Internet security.
Selling the dream
But let’s take a step back. It would be simplistic to think that Stanford woke up at age 17 wanting to completely disrupt his life. Like all game changers, it was a mix of attitude and circumstance that brought him to that point.
“From an early age, my path was preset,” he explains. “Like the Stanfords before me, I was enrolled in Bishops from the day I was born. I’d go to school, then university, then I’d establish a career. My mom wanted the best for us, and she pushed us to excel in academics. I had huge support from my family, which really shaped me when I was younger. But we weren’t at all spoilt, which meant anything I wanted I had to work for.”
These early lessons taught Stanford the value of delayed gratification and long-term investing, which he believes is essential in business. “I coveted a model airplane, but it cost R2 000. It took two years of painting fences and selling apple juice at school that I’d bought from my dad to buy that plane. Anything worth having is worth working for.”
Young Stanford’s first big move away from his preordained path was refusing to go to Bishops.
“I was preparing myself for high school when I caught wind of a proposed new school in Somerset West that would be fresh and forward looking. I was convinced the Internet was the wave of the future, and I wanted to be a part of it. I managed to get my parents on board.
“We eventually helped build the school with a small group of dedicated parents. It was a big risk – I gave up my spot at Bishops without even knowing if the college would be ready in time, but by then I’d learnt that some risks are worth it.”
When Stanford started his grade 8 year at Somerset College, there were 65 students, but the school had access to the Internet, and a tech focus. The young entrepreneur-in-the-making was in heaven. He also concedes this was the start of his downward slide into becoming a mad, risk-taking, convention-bucking lunatic.
And then tragedy struck. When the world changes it happens in snapshots. “I woke up with my head between my knees. The only two people who could move were me and my dad. I needed to get out of the car and find my mom’s bag, because that had the family cellphone, and we needed to call for help.”
The whole family was travelling on a back gravel road in the family SUV when the accident happened. Stanford was in grade 9. His younger sister died instantly. His mom passed away four months later after suffering paralysis from broken vertebrae. Stanford was left with a dad and a younger brother, and things would never be the same again.
“We were all changed, but in different ways. My mom had always been a driving force in my life. She pushed us to achieve great things. But naturally, this was through a more conventional lense. I was 14 and I started questioning everything. When you’re young and you have a strong, supportive family, the world is a safe and certain place. Sure, there are constraints, rules and regulations, but you don’t really question them.”
A life extraordinary
“The accident changed my perception of the world. It ripped up the rule book for me. Everything around me suddenly felt like a man-made construct. I started questioning what was real and what wasn’t.
“I looked at my life and knew I had to make a decision: Would I be a victim, or a survivor? I wanted to make something of my life. It marked a turning point where I started bucking convention. I wasn’t going to follow the path my mom had planned, but I would make her proud. I wanted to do awesome stuff and lead an extraordinary life.”
Fast forward a few years and Stanford’s a high-school dropout moving to Cape Town. His dad has bought him a Tazz, and he has R1 000 to his name. His dad has also arranged for him to live with family friends, supported by Erik van Vlaanderen, while he found his feet.
“I’m sure that all he asked of Erik was to help me fall softly,” says Stanford. “I think everyone thought I’d get my entrepreneurial dreams out of my system and return to the path.
“But I had plans. I was convinced that everything would eventually happen through the Internet. I aspired to be an Internet millionaire, I didn’t want to work for someone else, and I had patience. I also had my ‘big idea’: If the Internet was going to be huge, as I believed it would, then it would need to be secured. So I focused on Internet security.”
Things quickly came together. Van Vlaanderen didn’t just help Stanford with somewhere to stay, he also arranged for him to work out of his brother’s garage, and he gave him R20 000 in seed funding.
“It was a huge amount of money to me and I knew I had to make it last, so I used it to cover my meagre living expenses while I tried to build my business. But it was basically a disaster!”
Lessons learnt from mistakes
Like countless entrepreneurs before him, Stanford quickly learnt the difference between a great idea and a viable business model. “I did everything wrong. Everything failed, I battled for three years!”
Stanford’s first idea was to sell network hacking to companies. “It was an incredibly hard sell. First, it was very early. Yes, companies were starting to rely on the Internet, but security wasn’t yet a top priority in South Africa. Plus, I was 18. No one cared what I had to say. Second, I was selling time. It was a service-based model, and that’s incredibly hard to scale.”
Just scraping by, Stanford refused to accept failure. “All of my pride was staked on this. My mates were all studying and partying, supported by their parents. I was barely making ends meet, but I wasn’t going to let that stop me. What I was doing wasn’t working, and I had to find something that would.”
So, he evaluated his business model critically. His three biggest detractors were his age, the product fit and state of the market, and his unscalable, hard to monetise service-based model.
“Once I realised what my problems were, I could start fixing them. First, I needed a product that was easily scalable, something based on IP. Software was the obvious answer. I then needed to craft a façade that elevated me from just a kid in a garage.”
Fake it ‘til you make it
It was the start of what Stanford calls ‘faking it until you make it’. He’d developed code for tools that helped his service model. Now he wanted to develop an entirely Internet based company. “I needed to create a website that clients could interact with, without seeing me.”
During this time he came across a small Slovak Internet security software developer, ESET. “I was doing research for my only client, testing security tools for them, and I came across this product. The user interface was bad, but the tech was phenomenal. It outperformed all established norms.
“I knew there was huge potential, and so I contacted them. Without mentioning that I was alone in a garage, I told them I was an Internet security firm in South Africa, and that I was really impressed with their tech. With some tweaks, I thought it could be a great fit for our market.
“They were a small company as well, and had someone living out of a car trying to get a foothold in the US. We weren’t a priority market for them, but they listened to my ideas. I wrote a business plan for them centred on the idea of an Internet-based business model and proposed that the product only be downloadable.
“Many in South Africa thought this was mad. We didn’t have the infrastructure to support downloadable software here. But we planned to use resellers to reach the market, who would have access to better-than-average Internet connections, and ESET was already thinking along similar lines.
“They gave me sole rights for sub-Saharan Africa, and I started coding an online platform that made it simple for resellers to login, download and instal the product for clients.”
Stanford quickly realised he couldn’t do it alone. “I went to Erik and asked him to join me. I needed more funds to get the business off the ground, and I knew I had a great platform with an excellent product that would sell itself if people tried it, but what I really needed was a business partner who knew what I didn’t. After three years of going it alone, I was aware of my gaps. I was into technology, I had a vision, drive and ideas, but Erik had the wisdom and experience that I lacked. He was older, had an accounting background, had been a senior partner in practice and had held CEO positions. He was now an entrepreneur running a successful fruit export business. We complemented each other. Convincing him to come on board made a huge difference, even though at the beginning he wasn’t full-time.”
Despite additional seed funding from van Vlaanderen, the business still needed to operate as lean as possible. “We needed to get creative. We had great products and a simple-to-use web platform for resellers and customers, but they needed to know about our products first. We offered a month’s free product trial, and if I could get people to try it, I knew they’d buy it. But how to get them to test it?
“I had a friend who had started a marketing agency. We had no budget, but we worked out that we could use PR, which was very low cost but could gain wide exposure. I wrote compelling press releases, and he got them published. A lot of people were experiencing virus outbreaks, so we tapped into the conversation of Internet security. We offered pragmatic explanations in laymen’s terms. We made ourselves available at short notice, and soon I started getting calls. I slipped our web address into every conversation. We didn’t do a hard sell; rather we tried to add real value.
“We also made things as simple as possible for the resellers. They could sign up online, activate a licence and immediately download the product. We would only invoice them at the end of the month. It was a risk, and it meant that we spent a lot of time collecting on bills, but slowly the product started gaining traction.
“The fact that it needed to be downloaded was a problem, but, I didn’t have a warehouse, and I couldn’t produce discs and packaging. After a slow start, once we started growing, it happened in leaps and bounds.”
By this stage, Stanford was also able to hire an employee, Carey van Vlaanderen, who initially interned for free, and is now the CEO of ESET Southern Africa. They had a desk and a phone line, and a game plan to look much bigger than they actually were.
“We had a decent website, and all of our business was online. When we got a call, we would put the person on hold and put them through to the ‘department’ they wanted, which was really just me handing the phone to Carey.”
As the business scaled, they were able to afford office space, and van Vlaanderen joined the business full-time.
“Today we’re far from ESET’s biggest market, but our early successes provided some insights for them. They invited us to share our stories, tech and ideas with them, and we sit on on their advisory council. It’s a great relationship.”
The business has maintained its lean structure too. “We’re almost paperless. Everything is done online. 90% of the work is automated by systems. Our margins are high, and within a year we were profitable.
“We’ve had double-digit growth per annum ever since, which proves once you have the right product, a way of getting it to market and a service model that supports your offering, you can grow a profitable business.”
Lessons for Growth
1. Never take shortcuts
We’ve always believed in playing the long game. There are no short-cuts in business, at least not if you want to build a long-term, sustainable and successful business. We bend over backwards for our resellers and our customers. Take the time to hear what they’re saying, solve their problems, and go that extra mile to delight them. In the long run, you’ll reap the rewards.
2. Always trade on integrity
We never compromised our integrity, even if it would have meant quicker, easier growth. We kept our eye on the long-term rewards, always putting our customers and partners first.
3. Understand the value of a team
Erik and I joining forces was the single best decision this business has made. We have different skill sets, we complement each other and we believe in a philosophy of partnership. I really believe that all great businesses are built around excellent people and relationships. You’ll never have everything your business needs. Don’t let ego get in the way. Find great partners.
4. Hire for culture fit
There are a lot of great people out there who are very good at what they do. That doesn’t mean they’re the best fit for your organisation. We always hire based on the right cultural fit. Sometimes, we hire someone because we see their potential, but we don’t necessarily have a position open for them.
We’ll bring them in, give them time to get a feel for the business, and then they’ll find what they’re going to do. Skills can be taught, but attitude is engrained. We believe in company culture and culture fit, and highly capable people who get things done. We remunerate well, and leave them to get on with their jobs.
5. Know when it’s time to fire yourself as CEO
A big thing I ultimately did was essentially firing myself as CEO. I love start-ups, that’s my passion. I love building new things. What I don’t enjoy is admin, and like it or not, admin and diligent management is what makes businesses grow and remain sustainable.
I needed to let go of ESET SA’s daily management in order for it to continue its growth trajectory, and that also freed me up to continue doing what I love, which is product development, starting up new ideas, and helping other start-ups through 4Di Capital, our VC firm.
From Garage to Global
Today, Justin Stanford’s main focus is on 4Di Capital, his seed funding VC firm. The name harks back to the first iteration of his business operating from a garage.
“I’d called it 4D Digital Security. It was just a play on 3D, like a further advancement on three-dimensional. Once we pivoted the business into selling ESET products, we changed the name to ESET Southern Africa because we thought it gave the business more credibility.
“Once ESET was running smoothly and growing into the six, seven and eight figures however, it was time for me to start looking at what I wanted to do next, and so we created the 4D Innovations Group (or 4Di Group), of which ESET was just one company.”
What was Stanford’s next move? “I wanted to create a Silicon Valley in South Africa, a tech start-up hub.” As Stanford’s success grew, he started getting more attention, particularly from young, hopeful entrepreneurs. “I was still in my mid-20s, and was proving that you could be a young, successful business owner even without a varsity education. The idea started gaining momentum, and people were coming to me wanting assistance with ideas, funding, or just general advice.”
By this stage, Stanford had enough money and stability that he could raise his head out of his own business and really look at the state of start-ups in South Africa. “I was also gaining a profile, and it didn’t take me long to realise what I wanted to do with it.”
Never one to shy away from big, audacious goals, Stanford teamed up with another young, local tech entrepreneur who had moved to Silicon Valley, Vinny Lingham. Together, they started Silicon Cape, an organisation reliant on industry involvement and geared towards creating a vibrant start-up community in South Africa that brings various investors together as well.
“By that stage I’d spent enough time in San Francisco to know that we have something special here too, but we were lacking a collaborative ecosystem. All the ingredients were right, we just needed to create a supportive community that works together, and we needed to have a Silicon Valley style seed funding engine to support local entrepreneurs.”
Silicon Cape is now an established organisation, and Stanford has turned his attention to the problem of early stage investing.
“I wanted to start a progressive venture capital fund. I needed an investor to prove that we can foster a vibrant VC industry in South Africa. We have great tech start-ups with amazing potential — what they need is assistance.” That investor was Johann Rupert. A supporter of Somerset College, Rupert was aware of Stanford and his antics — enough to grant him a meeting at least.
“I was completely star struck. I couldn’t believe I got the meeting. He was a business idol.” As it turned out, Rupert, who is passionate about South Africa and a huge supporter of young entrepreneurs and the power of tech, was both willing and able to fund Stanford’s next big dream. This led to the eventual launch of 4Di Capital.
Laurie Olivier, a partner on the 4Di Capital team, opened the door to the fund’s next investor, the Oppenheimer family.
“Right now we all know this is still a big experiment. It will take ten years before we either prove it can work in South Africa, or if everyone who thinks we’re mad is proved right. But, we have ten businesses on board, and we’re helping them grow. They’re able to assist each other as well, and share their insights and lessons. Entrepreneurship can be incredibly lonely, and so this alone is already valuable assistance for them.”
While start-ups are an asset class that is almost impossible to raise funds for, Stanford has stuck to his belief that great partnerships go a long way to giving a business as much credibility and stability as possible.
Aside from the big names of Rupert and Oppenheimer backing his play, 4Di Capital has five partners on the team, including himself and Erik van Vlaanderen.
“We all bring something unique to the table, and we’re all determined to make this work.”
Of the partners, Olivier is an ex-pat living in the US, which is a powerful tool in 4Di’s toolbox, as it gives the VC firm a US office, and a link to the hub of VC funding and exits. Together, they’re a formidable team, and one investors are willing to talk to. At the time of going to print, Stanford had just closed a deal with the fund’s third investor, Convergence Partners.
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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