Connect with us

Entrepreneur Profiles

Steers: George Halamandaris

Steers is a true success story for South African fast food franchising and, as such, a sought-after brand. Chana Boucher uncovers where the brand started and how it has managed to stay relevant for over 50 years.

Chana Boucher

Published

on

Steers

What does it take to build one of the strongest and most well-known franchises in South Africa? Is it mastering the art of consistency, the use of pure beef patties to make ‘real burgers’ served with hand-cut chips and exclusive sauce or the guidance of a strong leadership team? Steers has combined all of these to become the 522-store strong fast food franchise it is today.

Val Bourdos, managing executive, Steers believes the brand’s vision of creating and offering customers the ‘perfect burger’ is what has made it so successful over the years. She says Steers has always stayed true to its unique taste and maintained a unique selling proposition. For the last 15 years, Steers has won the award for the best burgers and for the last 13 years, the best chips in Johannesburg.

Apart from that, Bourdos says that Steers’ leadership team are good brand custodians and understand branding. ìWe have had some odd requests in the past for things like hot dogs, but the brand has stayed focused. We have to sacrifice some things, but we can’t be all things to everybody.î With marketing and operations expertise the team has seen the growth and development of the brand, she adds.

Where it All Started

With a vision to start a family run business that would outlast the family, Steers founder, George Halamandaris introduced the first steakhouse concept to South Africa after spending five years in the US identifying new ways of serving food. In 1957, Seven Steer was registered as a private company, followed by the registration of Black Steer and Steers in the early 60s.

The first ever Steers store was opened in 1970 by George’s son, John Halamandaris, in Jeppe, Johannesburg. John later joined forces with his four cousins, Panagiotis, Theofanis, Periklis and Charalambous Halamandaris. The early 80s saw the opening of a fourth Steers in Sandton City, which attracted interest from would-be franchisees. The other stores included Yeoville and Bellevue with a central kitchen in Johannesburg.

In 1983, Steers launched a new franchise programme. The owners placed a single advertisement in a local newspaper inviting franchisees to apply, and since then Steers has never had a shortage of prospective franchisees seeking to buy into the franchise. Within two years there were more than 15 outlets opened, and this number grew to 250 stores ten years later. By the end of the 90s Steers started expanding beyond South Africa’s borders, with outlets in Swaziland, Botswana, Zimbabwe, Kenya, Mauritius, Zambia, Tanzania and Ivory Coast.

Steers Holdings listed on the stock exchange in 1994, but in 2001 Steers Holdings changed its name to Famous Brands to more accurately reflect the diversity of the group’s brand portfolio, although Steers remained the icon brand within the group.

The Franchise ‘Marriage’

ìA profitable and happy franchisee makes a profitable and happy franchisor,î says Bourdos, explaining that this is a philosophy at Steers. She attributes the strength of Steers’ growth to its franchising model. Believing in the potential franchising offers, Bourdos says it is a true partnership. ìThe franchisor conceptualises the brand while the franchisee sets up, manages and runs the store. If they don’t work in sync the company won’t be successful. The partners are interdependent.î She adds that there is a need to respect each other’s roles.

Bourdos says franchising is ideal for someone who wants a business opportunity that they don’t have to think through themselves. ìWith franchising the formula is already outlined for you.î She says it allows the young entrepreneur to invest in a business when they can’t do it alone. ìThe cost of entry is lower and there is lower risk. In the food game, it is a great model if run properly,î she explains.

Steers is 100% franchised, so there are no company-owned stores in the group. Bourdos explains that Steers believes franchised stores are more successful. ìIt’s the best formula because we could never run the stores as well as franchisees do.î An owner operator, says Bourdos, looks after their investment. ìUnlike in the corporate world, you can’t just send out an instruction, you actually have to convince the franchisee of a new plan. They have invested their money in the business, so their commitment is far greater,î she explains.

Becoming a Franchisee

If you are interested in partnering with Steers by becoming a franchisee, you need business acumen and the willingness to put some time and thought into your application. Steers has a specific process for prospective franchisees that starts with filling out an application available from the Steers website. Applicants are required to submit their personal details along with a business plan of about two to three pages. The business plan, explains Bourdos, communicates the franchisee’s objective. They need to explain what they plan to do if they do get a store.

This process separates the serious prospects from those who are just browsing. Bourdos says Steers often receives enquiries from prospective franchisees who want to know more about buying a franchise, but she says many of them don’t actually go through the application process.

Once the application is processed, the prospective franchisee is interviewed. Bourdos says the perception that franchisees need to have previous experience in the food industry is not true. ìOur franchisees include ex-headmasters, corporate executives and really experienced professionals who are fed up with corporate life.

She says Steers looks for entrepreneurs who can work independently and know the responsibilities involved in running their own business. During the interview they will be assessed to determine whether or not they possess good business acumen and relate to the brand. Steers also looks at interpersonal skills to assess whether or not a candidate is a ‘Steers person’ who will fit into the culture. ìWe generally find the right people, but sometimes we do make mistakes.

According to Bourdos, Steers engages with black entrepreneurs as a priority. Up to 25% of our franchisee network comprises black entrepreneurs, and we are very proud of this,î she adds.

Improving the Chance of Success

To give prospective franchisees a good indication of what it takes to own a Steers franchise, full training has to be completed before the franchise agreement is signed. This, explains Bourdos, exposes them to the long hours and lets them get their hands dirty. ìThey really have to love the brand,  she quips.

Steers insists that its franchises are owner operated, but Bourdos says that at the same time it is possible for multiple-store owners to employ managers. ìThe success rate of a franchise is higher if the owner is involved in the business. They don’t perform as well if this is not the case.

Training for new franchisees is very detailed, says Bourdos. She explains that franchisees go through the Famous Brands training institute which trains franchisees for all the brands. Here they receive training on financial, safety, hygiene, first aid, customer service and labour relations, which takes a full week. From here franchisees receive specific Steers training which involves actual practical experience in a Steers store. Bourdos says they learn everything about operating a store, including working the cash desk, making burgers, packaging, stock control and point of sale training. A franchisee cannot open unless they have been trained, she adds.

The Right Location, the Right Franchisee

Steers receives applications both from franchisees who are interested in a new location for a Steers outlet and those who want to buy existing franchises. According to Bourdos about 15 to 20 new stores are opened every year.

We always advise applicants that the opportunity for them to enter is mainly through change of hand.î Steers franchises change ownership on about 30 to 35 outlets in a year. Post recession, Bourdos says there was an increase in the number of franchises being sold as the existing owners couldn’t afford to run their businesses. ìWhat we usually see is that when a store isn’t performing well the franchisee is distanced from the business. When a new owner comes in, the business improves, she adds.

When we get an application we won’t talk about plans for a site, but rather focus on the business. When a new site is available we will check our database for applicants who are in that area,î explains Bourdos. If an applicant highlights an available site, she says that they are not guaranteed that they will be the franchisee of that site if they are not the right profile, but there have been cases where the franchisees fitted.

Bourdos says that there are multiple owners of Steers franchises. Interested franchisees are given a second store if they have a good success rate.

Finding What Works

To strengthen the franchisor/franchisee relationship, Steers has a franchise council with a representative from each region. The council is useful for the franchisor to bounce decisions off of and either get endorsement on a decision or feedback from the franchisees who have insight into the operations of the outlets.

Bourdos explains that Steers works with the council and relooks the menu on a biannual basis. We look at what is selling well,î she says. Within its network, there are 70 Halaal stores which only differ from other stores in that they don’t feature any pork on their menus and all product must be Halaal.

Bourdos explains that a few years ago franchisees were given the option to drop fried chicken, sandwiches and breakfasts from their menus as these weren’t ideal. Some of the transient outlets (those located on the national highways) opted to keep these items as they did work in these locations. She says that these two factors could see some differences in the menus offered at stores, but that on the whole the Steers menu was quite consistent, with the main focus being on burgers.

One of the major challenges Steers faced in the past was when the economy was down it saw a drop in sales in some areas. Bourdos says there was a need to look at how to manage this. The franchisor had to advise on what to do. Where stores’ profitability was being impacted, the franchisor stepped in to study the business and identify where cost savings could be achieved.

The Quest for the Perfect Burger

Steers continuously runs thorough training programmes for its staff, including special sessions on the back of house, front of house and what is called ‘hot shots training’ which is when someone is trained up to be a trainer in their outlet. Various campaigns are also run to constantly improve operations. For example, a specialist on staff communication will be called in to assist managers in communicating with their staff.

Each year, Bourdos says, there is a specific focus on one aspect of the business. This year the focus is on creating the perfect burger. Training has been centred on how to grill the perfect patty. The aim is to refresh the skills and knowledge of those preparing the patties. Furthermore, there is also a drive to upsell. Bourdos says staff are encouraged to upsell customers by asking if they would like additional cheese or beverages with their orders.

Steers’ marketing efforts position the brand in line with this vision. Bourdos explains that everything is about creating desire for the perfect burger. The brand is aiming to make its marketing messages real and local.

The rebirth of the ‘Real Burger’

For the fifth time in its 50 year history, Steers is rebranding. In the early 60s the brand had a cowboy theme making use of a lot of leather. Since then the brand has gone through various phases, including the introduction of a brighter orange and purple in the 80s. The brand has continued to evolve throughout the years, but the new look and positioning of the brand is “really revolutionary” says Bourdos. The focus has been totally shifted to the product – ‘Real Burgers’. The pay-off line has changed from ‘Real food, made real good’ to ‘Real Burgers’ to signify this shift.

New Builds

All newly-built Steers franchises, of which Rosebank was the first, will feature exposed kitchens allowing customers to watch their food being grilled. Bourdos says that creates transparency as well as allowing for more interaction with staff. A number of new standards have been introduced to encourage this, including a hand cleaning routine which happens every 30 minutes. Staff need to spray their hands with disinfectant, clap their hands and then call out “hands clean.”

New-look drive-throughs will also be introduced, and are a totally new take on the drive-through concept. Large glass windows will make it possible for customers to watch their food being prepared.

New Look

With the aim of appealing to a more youthful market, the purple used in the Steers branding has been toned down and a more neutral palette introduced. The flame behind the Steers name has also changed to be more of a graphic representation of a flame.

According to Bourdos, the new look was developed responsibly to keep the costs down for franchisees. She says franchisees also have options to lower their revamp costs. For example, if their current floor is still in good condition, they can leave it as is. They can also keep their old tables and chairs, just changing the tops to the new materials.

Making the Changes

Bourdos says it will take between five and seven years for the brand to change the entire network as not all the franchises can change at the same time. Some franchisees, says Bourdos have asked to revamp their outlets before the stipulated time in their agreements.

Buying a franchise

Depending on the size of a site, franchisees can expect to pay from R1,1 million (excluding VAT). There is also a joining fee of R123 500 which needs to be paid immediately. The joining fee covers the cost of training, the drawing up of plans and access to a project manager to set up the store. If a franchisee is buying an existing store this fee will be lower.

Unencumbered cash

To invest in a Steers franchise, you will need at least 50% of the investment to be your own money, while the remaining 50% can be financed. Steers has a relationship with local banks and can facilitate finance for franchisees.

Advertisement
Comments

Entrepreneur Profiles

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.

GG van Rooyen

Published

on

jason-english-of-prommac

Vital stats

  • 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.

Jason English

Related: 5 Top Lessons From LAWTrust To Prepare For Super-Charged Growth

“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.

Related: Establishing The Wheels Of Change In Business

“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.

prommac

“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.”

Exponential growth

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.

key-insights-from-jason-english

Continue Reading

Entrepreneur Profiles

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.

Nadine Todd

Published

on

billy-selekane

Vital stats

  • 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.”

Related: 5 Top Lessons From LAWTrust To Prepare For Super-Charged Growth

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.


Do this

Stop letting negative thoughts and minor irritations derail you. You are the master of your moods and thoughts, so take personal responsibility for them.

Continue Reading

Entrepreneur Profiles

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.

GG van Rooyen

Published

on

gil-oved-and-vusani-ravele-of-native-decor

Vital stats

  • 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.

Related: 6 Great Tips For A Successful Shark Tank Pitch

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.

Vusani Ravele of Native Decor

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.

Related: Shark Tank’s Dawn Nathan-Jones: How Leaders Who Focus On Growth Will Build Successful Companies

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.

Related: Shark Tank’s Romeo Kumalo Weighs In On High-Impact Entrepreneurial Businesses


Take note

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:

Continue Reading

Trending

FREE E-BOOK: How to Build an Entrepreneurial Mindset

Sign up now for Entrepreneur's Daily Newsletters to Download​​