- Players: Hina Kassam and Irfan Pardesi
- Company: ACM Gold
- Launched: 2005
- Turnover: More than R400 million
- Profit: R350 million
- Company Value: R3 billion
- Awards: World Finance Best Broker Africa 2013
- ARABCom Best Broker 2012 (Middle East and Africa)
- Contact: www.acmgold.com
Irfan Pardesi has never seen his father have money. His brothers and sisters have, but as the youngest child, his experiences were of his father losing everything – twice.
It’s not typically the kind of household that an entrepreneur would emerge from, where entrepreneurship meant tough times and a family struggling to make ends meet.
But for the youngest Pardesi, it meant something else: Survival. Growing up in Pakistan and nearing the end of high school, the young Irfan could have dropped out. His family could no longer afford to pay school fees, and by working he could help to pay the bills.
Instead, pushed by his sister Hina Kassam, who was married and living in the UK, he decided stay in school – whatever it took. He was good at his studies, and he wanted to get his A levels. “I started selling mobile phones to pay for my school fees,” he says, and his path to entrepreneurship began.
Wanted: Resourceful spirit
Today, Pardesi and Kassam run ACM Gold, a forex trading platform that spans international markets, and has a group turnover of R400 million, with very impressive profit margins. Launched in Pakistan, the business’s head office then moved to Dubai, before settling in South Africa.
“South Africa has everything we’ve been looking for. It’s a beautiful country, the climate is ideal, its banking sector is well regulated and trusted, and it offers all the skills we need,” says Pardesi. “We’ve found our home, and we have big growth plans.”
Having lived on three continents, the brother and sister duo have a good understanding of what they’re looking for. Kassam grew up in Pakistan, spent time living in Uganda and Kenya, and settled in London before moving to Dubai to head up ACM in the bustling UAE capital. While Kassam was in Uganda, Pardesi finished his A levels and was looking for a way to study in London.
“I had negotiated with my school to let me finish my A levels in one year instead of two. I needed to save costs. We were broke, there was a lot of unrest in Pakistan, and loans were piling up. I wanted to get on with my future.”
Getting his A levels didn’t solve any of Pardesi’s problems though.
“I would be the first person in my family to get a university degree, and they weren’t having any of it. My father had borrowed a lot of money, and my extended family expected me to start working as soon as I was out of school to help pay off those loans. I didn’t have permission to leave Pakistan to study abroad.”
But this was a kid who had paid his own school fees and finished his A levels in one year. He was going to get to London. The problem was that global events didn’t agree.
“I finished school in June, and started getting ready to leave for the UK. I’d told my family that I was going to Uganda for business. And then September 11 happened, and the British embassy in Pakistan closed.” There was no way Pardesi was getting a visa. The London School of Economics had accepted him, but he couldn’t get to the UK in time for his first semester.
Entrepreneurs are nothing if not resourceful. Their greatest strength is seeing an opportunity in every challenge, and finding solutions where others would give up. If he couldn’t get a visa in Pakistan, Pardesi would fly to Uganda. “Hina was living there and she had a friend in the UK embassy. I arrived in Uganda and they had arranged a British visa so that I could continue on to London.” Kassam had taken a loan and was able to give her brother £730 over and above the £1 500 he’d already saved up for his first term’s fees and living expenses while he found a job.
Becoming a specialist
Entrepreneurship is all about making it happen. Pardesi wanted to get his degree, and he needed to pay his way while also sending money home. In his first week, he secured a job at Starbucks, working 40 hours a week. But this didn’t leave much time for studies.
“I changed my schedule so that I went to university for two days, and worked five days a week. This meant skipping lectures that didn’t fit my schedule. I’d tried convincing the school board to change it for me, but they refused.”
Pardesi’s grades were good enough to qualify him for a scholarship in his second and third years though, and so when he graduated in 2004 he’d managed to not only save some money, but was living comfortably and still sending money home.
By this time, Kassam had moved back to London and was working in bank finance, and Pardesi secured a position at a boutique investment house that negotiated operational leases for aircraft.
“Our role was to find an investor, bank and carrier simultaneously, and then structure a deal. It wasn’t very complicated, but it was a highly specialised field that to outsiders looked scary and difficult. We were a boutique house, and yet institutions like Deutshe Bank and Goldman Sachs were asking us to value deals – and we could charge a premium price for our services.
Related: 9 Things Successful People Won’t Do
It was Pardesi’s first big lesson in business: Focus on what you know best. You don’t need to be a master of everything, you just need to know a lot about one thing. “We knew who we were, and we didn’t try to be anything else. It made us extremely good at what we did, and highly sought after in the market.”
It was also during this time that Pardesi was first introduced to currency. “We were advising our clients on currency derivatives and hedging of currencies, and an idea started percolating. I’d already learnt that as a specialised expert you garnered respect, and now I started thinking that as a ‘newbie’ if I wanted to launch something of my own, it needed to be in an area where my skills and knowledge were scarce, and I could make a difference.
“The obvious answer was an emerging economy.” Pardesi had saved $120 000 in bonuses and grown a seed fund as his idea continued to percolate, and then he suddenly found himself back at square one.
“My father had a liability of $160 000 and my parents needed me to come home. The money I’d been sending helped with living expenses, but hadn’t solved their debt.” The seed funds went towards servicing that debt, and by early 2005 Pardesi found himself back in Pakistan looking for something to do.
“My sole goal was to accumulate as much money as quickly as possible to launch the business I really wanted,” he explains. “I did this in a number of ways. My father had started a small property valuations company that I got involved in. I understood valuations, and we were soon on a panel assisting Pakistani banks with property valuations.”
He also started importing mobile phones, and partnered with a local teacher to open an HR consultancy. “I was scrambling. None of these businesses had the scope I was looking for. They did well, and we made a profit on two of them when we sold them, but I knew they had limited growth potential. I was looking for something where the sky wasn’t even the limit.”
These businesses were fairly simple to set up and run, with low barriers to entry, but in the background Pardesi and Kassam were busy on a different project. “While I was still in the UK, Hina and I had developed a habit of visiting brokers and CEOs of trading houses to see what they were doing,” says Pardesi.
Kassam, in particular, was looking for an additional income stream. “I wanted to start trading forex so that I could leave the bank, but first I needed to learn as much as I could.” They made contact with a South African company, Global Trader, that was operating in the UK, and became introductory brokers (IBs), earning a commission if they introduced traders to the online platform.
By the end of 2005 both siblings were in a position to launch a forex trading company. Kassam was trading and doing well, and had made good connections in London. Pardesi had saved $22 000 in seed funding, and had sold the businesses he was involved in. His plan was to move back to London and launch the business. The plan lasted exactly as long as it took to book a ticket, move back to London, and turn right back around and return to Pakistan.
“I had no business plan; I just wanted to hit the ground running. And then I realised that the money I had saved wouldn’t even last two months in London. I immediately turned around and went back to Pakistan,” he laughs, recalling the shock of realising the miscalculation.
Kassam stayed in London with her husband and family. She would negotiate the platform deals in the UK and Pardesi would set up the business in Pakistan.
Lessons learnt, and improvements made
The launch of Accentuate Capital Markets (ACM) in 2005 taught Pardesi his second big lesson in business: You can launch a highly successful business with limited funds.
“After saving and losing my start-up capital, and then saving up again only to realise it wasn’t enough, we needed to find a way to bootstrap the business. My aim was still to reach for the stars, but first we needed to start building a brand, earning a good reputation and securing a client base. We needed to start small to become big.”
The partners worked out a way to launch with limited investment capital. “Hina approached Global Traders and negotiated a deal with them. She was already a client of theirs, plus we’d been IBs for their brand for over a year. They knew us, and we were always aware of how important relationships are in business, so we’d fostered the relationship we had with them.
“We told them we’d be trading in Pakistan and getting them new clients in an emerging market, but we needed their platform for free. Their model was to charge monthly minimums to businesses that used their platform, but we couldn’t afford those fees, so this negotiation was essential to the success of our start-up.
“All trades would still go through their offices in London, and they’d make the commission, of which we took a small percentage. We were working off low margins, but we needed the platform to get started, and eventually they agreed. We were in business.”
Once the deal was signed, Pardesi focused on securing great office space. “Our fees were small, so we needed to focus on volumes. This meant having a good office that people could visit, meet me and the dealers, and feel secure depositing their money with us. Our primary investment went into that first office and securing a few dealers.”
Pardesi had promised Global Trader 400 to 500 new clients each month, which was one of the reasons they had agreed to give them the platform without charging fees, and they now had to deliver. “We’d convinced ourselves (and them) that Pakistan was a new market with endless opportunities and no real
The reality turned out quite different. Growth was extremely slow. Pardesi kept the business lean, and they achieved break-even in the first month, thanks to existing clients and contacts, but they were nowhere near their target of 500 clients.
“I think one of the single biggest lessons I’ve learnt in business, and one we’ve carried through to every decision we’ve made since, is the importance and power of localisation,” says Pardesi. “Entrepreneurs are problem solvers. That’s what we do. But that doesn’t mean much if you’re trying to solve a problem that’s not your target market’s main concern.”
ACM was following the model of a broker based in the UK who does business online. It worked very well in the established UK, US and European markets, but not in Pakistan’s emerging market. “Online trading wasn’t embraced. Even though we had dealers that our clients could call, and white papers we distributed to educate our market, the model just wasn’t taking off.”And then Global Trader went bankrupt. It was completely unexpected as the business had been growing.
“We needed to regroup and re-evaluate what we were doing. It’s never nice to see a business go under, especially one you have a relationship with, but it did force us to change our model, this time with a much better understanding of our market guiding us.”
The secret of localisation
First, Kassam started negotiations with online platform providers that centred on a more holistic partnership. The reason was two-fold.
“Previously, we only hosted the platform and provided on-the-ground support. All accounts had to be set up through our UK partner, and approvals took up to a week and a half. This time delay meant people couldn’t start trading immediately. It also meant that they were essentially doing business with two companies – us and Global Trader, which could become confusing, and all trades were done in foreign currency.”
Kassam’s negotiations with a new online trading platform resulted in a very different business model. The platform was white labelled, so all trades were conducted through an ACM-branded site, which meant the client had only one point of contact. ACM also had power of approval, which meant they could approve new clients and get them trading immediately.
Their next big change was to localise trades. For the first time in the global trading environment, ACM offered a local trading denomination for gold.
“The subcontinent’s gold measurement is the tola. Around the world, gold is traded in US dollars per ounce. We allowed trades in rupees per tola, and did the conversions ourselves. It was a small change that Hina negotiated, with huge ramifications. No one had thought of localising trades. It wasn’t rocket science, or even difficult to do, but it meant our clients could trade in a denomination they were familiar with, and it made a huge difference to their confidence in their own trades, and our platform.”
The third big shift in the business model was focused specifically on how their clients traded. “Our dealers were extremely busy as clients would rather call them and have them make the trades than do it themselves online. They also liked dropping in to the office, and those who did so traded more frequently and for bigger amounts. They loved our environment.”
Armed with this knowledge, Pardesi made a decision that would never have worked in London. He cancelled his sales and marketing budget and redirected everything towards creating a physical trading environment that people wanted to be a part of.
“We had no sales consultants, but we did have three cooks, for example,” he says. “Clients could walk in day or night and order a drink, food – we even had staff who could run errands for them – all for free. We wanted them to feel at home. We were no longer trying to change the social behaviour of our clients; we were adjusting our model to suit their behaviour.”
Soon, clients started bringing friends. It was a lively, social atmosphere where everyone was pampered. “There was something about the energy of the trading floor that they loved. You walked in and you were immediately a part of something special.” Pardesi’s brother, who is a real people’s person, also joined the business, and the company finally started seeing the volumes it had hoped for in its first year, with turnover growing tenfold.
Spreading too thin
By 2007 Pardesi once again started feeling the itch for growth. Their office was doing well, so what was next? “We opened an office in Cyprus as our foothold into the European market, but we soon realised that while we understood the Pakistani market, the European market was very different. We just weren’t making any headway.”
In early 2008, a third office was opened in Dubai, which had a similar environment and structures to those in Pakistan, but real growth still evaded the brother and sister partnership. “We had lost sight of that key lesson: Localisation,” says Pardesi. “We were trying to branch out when we had a model suited to the market we were already in, based in a city of 21 million people! What about opening more offices in the area where we already operated, and had proven our model?”
Pardesi and Kassam now started actively concentrating on a model that had originally brought them into the industry – that of paying commission to local IBs who introduced new clients to the platform. “Each IB could open their own local office based on our model, work off our platform and use our systems. It meant owner-managers across the region were promoting and growing our brand, while building sustainable and profitable businesses themselves.”
It was the start of Pardesi’s realisation that their business model didn’t only help people trade, but also created wealth for local business owners.
“We’ve created many dollar millionaires over the past few years, and we’re proud of that. We don’t charge a minimum, because we got our start that way, and we share a percentage of the commission.” By late 2009 there were 277 offices spread across Pakistan all based on Pardesi’s model and using the company’s own system, which they built between 2008 and 2009.
“Building our own platform was the next logical move. We’d saved up the business’s profits and wanted to create a platform that had the capacity for thousands of simultaneous trades, was highly secure, looked good and was easy to use – and we could hire top international talent to help us do it.”
It was also a business that benefited from the recession. “This helped our growth in two ways. First, people wanted to be in control of their money, which made online trading desirable. Second, in a volatile market, gold prices go up. It’s seen as a long-term, stable commodity. We re-branded as ACM Gold, and focused on this market. Our trade in local currencies and denominations enhanced our success.”
By 2010 expansion was back on the cards. Dubai’s office was doing nicely, and ACM Gold now started eyeing India, which had a similar environment to Pakistan. Pardesi had also opened offices in Malaysia, Macedonia and Slovenia, and began the process of disinvesting from these markets.
“We wanted to grow, but recognised that these markets didn’t want the model that we were so good at. While we realised that we might have to change the model to reach our next level of growth because business is about adapting with the times, it wouldn’t be in those areas.” So where was the next opportunity? The answer was easy – Africa.
The move to South Africa
Pardesi and his wife had honeymooned in South Africa in 2008, and at the time she made him promise that they would return to the rainbow nation. Two years later, that time had come.
“We recognised the huge potential Africa had to offer. We’re suited to emerging markets, and we’d already learnt that localisation works. If we wanted to expand in Africa, we needed to operate locally. South Africa was the perfect fit.
“It has a well-respected Financial Services Board, is one of 11 countries that understands forex, and has a highly trusted banking environment thanks to strong regulations. We knew that people would be comfortable sending their money here, and trading through a local platform.”
Pardesi had also opened offices in Madagascar, Uganda and Kenya which readily accepted ACM’s tried and tested model – but South Africa didn’t.
“It was a big reminder that you can’t make assumptions about a market until you’re physically operating in it,” says Pardesi.
“We had country managers in our satellite offices around the world, and Hina was splitting her time between Johannesburg and Dubai. We had closed most of the Pakistan offices and had handed them over to local brokers. We had a big deal pending with the Pakistan Exchange, and we wanted to concentrate on our growth in Africa — but we just weren’t getting it right.” Then Pardesi realised their error. South Africa may be classified as an emerging economy, but it also resembles Europe. It needed a different kind of localisation.
“South Africans understand forex in a way that many other nations don’t. Everyone has grown up watching how the rand is faring. We quickly realised that South Africans don’t want to be involved in anything they don’t understand. They won’t trade unless they know how the system works and what they’re doing. If we wanted to do well in this country, we needed to cater to this specific need – we needed to educate our market.”
Where Pakistan and India were happy to trade with the advice of their dealers and wanted a social trading floor, South Africans are comfortable trading online, but want to be educated before they do so. As a result, ACM Gold invested in UFG (University of Forex and Gold), a training platform designed with the assistance of Adriano Tabasso, through which they could begin training people.
While this is steadily growing into a comfortable secondary revenue stream, its original mandate holds true: To create a market for ACM Gold by educating the public. “In many ways, South Africans are like Europeans. They don’t want to trade as a hobby, they want to trade full-time, and this takes a keen understanding of the market.”
The fact that ACM’s platform can be localised is a plus point, as all trades are done in rands and dealers can assist their clients in their own language. “We added Kruger Rands to our offering because South Africans understand and are comfortable with them,” adds Kassam.
Pardesi returned to his IB model. “I made a point of attending franchise expos and approaching local brokers. We needed to bring re-sellers on board, and we had a model that made sense. We’re based in South Africa – when you deal with us there isn’t a boss or platform that is operating overseas, everything is here, in local currency. Decisions can be made quickly, and all support is easily available.”
Consolidation for growth
By 2013, the market had grown and changed enough to warrant a relook at the original online model. “The Internet and consumer comfort with online models and trading has come a long way in the last seven years,” says Pardesi.
“We were buying back offices in Pakistan that we hadn’t already closed, and consolidating the business out of South Africa. We can have clients around the world trading through our online platforms now, so the local office model is no longer relevant.”
Today, there is only one small office in each of ACM’s regions with trusted local partners supporting the online trading platform. “If the market isn’t yet comfortable with online, we don’t look at it. We’ll wait two years and they’ll come to us via our online platforms, based in South Africa.”
- Focus on what you know best. The best businesses aren’t masters of everything — they’re specialists in one key area, and invaluable to their clients as a result.
- Even big brands start small. You don’t need millions to launch a company. Make some strategic partnerships that everyone benefits from, start small and be patient.
- Localisation is everything. You can be a big, multi-national company, but always take the current, on-the-ground clients into account. Design your business offering with their needs in mind. What works in one market won’t necessarily work in another.
- Shift the business when the market changes. Don’t hold onto something because it worked well in the past — times change, move with them.
- Don’t make assumptions. You’ll only understand a market once you’re actually operating in it. Launch your business or local office, but be prepared to shift your model as you learn about the market and what it wants.
- If your business allows, build a network of re-sellers that believe in you and your products, and help them achieve their goals — you will automatically achieve yours.
- If you want to get the best out of people, appreciate their efforts lavishly and give them a path to grow and prove themselves. The bigger the dream, the more important the team.
- If everything seems to be under control, you’re not going fast enough.
Trading + Gaming = Traming
Pardesi’s latest project is traming.com, an android app that merges trading with gaming.
“Traming.com has been created to give everyone easy access to the financial markets,” explains Pardesi.
“The concept emerged from the understanding that in this age of simplification, people are constantly looking for quicker, simpler ways of doing things, and in that vein, even online trading was still too time consuming. I wanted to develop an app that made trading fun, quick and easy.”
With Traming.com, users can decide what direction the market will take in an allotted time frame. Will it be up or down in the next 60 seconds? Get it right, and you’ll see up to 85% return on your investment — within 60 seconds.
“These trades are available on most global asset’s including currencies, commodities and shares,” concludes Pardesi.
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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