Connect with us

Entrepreneur Profiles

The Midas Touch: Hina Kassam & Irfan Pardesi

ACM Gold’s story spans three continents, and almost a decade of highs and lows. This is the story of how one sibling who paid his way through school, and another who didn’t go to varsity, have built a business with a turnover of R400 million that’s worth more than R3 billion.

Nadine Todd

Published

on

Hina-Kassam-&-Irfan-Pardesi_Entrepreneur-Profiles_Success-Stories

Vital Stats

  • 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.

Related: 7 Essentials for Making R10 Million From Scratch

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

The-Midas-Touch--Hina-Kassam-&-Irfan-Pardesi_Entrepreneur-Profiles_Success-Stories

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.

Reality check

“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

ACM-Gold_Success-stories

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
competition.”

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.

Related: How to Never Give Up On Becoming an Entrepreneur

“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.”

Top tips

  • 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. 

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

Advertisement
1 Comment

1 Comment

  1. Dane A. Mesane

    Sep 16, 2015 at 06:44

    Inspired.

You must be logged in to post a comment Login

Leave a Reply

Entrepreneur Profiles

8 Codes Of Success That Helped Priven Reddy of Kagiso Interactive Media Achieve A Networth Of Over R4 Billion

It’s taken 12 years, but not only is Priven Reddy a self-made millionaire at the age of 36, he sits at the helm of five companies and 380 employees, and his companies have R4 billion in assets. Here’s how a kid from Chatsworth in Durban stopped blaming his fate on everyone else and took control of his destiny.

Nadine Todd

Published

on

priven-reddy

Vital Stats

  • Player: Priven Reddy
  • Company: Kagiso Interactive Media
  • Launched: 2006
  • Start-ups: Krypteum (launched 2017). Krypteum allows traders to buy a cryptocurrency coin and have their investment managed by artificial intelligence and machine learning capabilities.
    • Dryvar (launched end-July 2017)
    • Shypar (launched January 2018)
  • Net worth including crypto assets holdings: Over R4 billion
  • Visit: www.kagisointeractive.com

As a kid growing up in the 90s, Priven Reddy had a rough childhood after the passing of his dad. “After my father unexpectedly died, my mom settled down with a man who later became an alcoholic. There were times when we wouldn’t have food to eat,” he candidly recalls. It’s a stark reality, but one that laid the foundations for the man Priven would become, and he doesn’t shy away from unpleasant memories.

Instead, young Priven soon figured out that he needed a paradigm of how he viewed the world or he would be consumed by it. Over the years he has built up a framework of eight codes that he not only lives by, but believes has shaped his success and more importantly, the mindset that has been instrumental in achieving that success. By adopting them he has turned his life around and then used them to rapidly climb the success ladder of the corporate world once his foundations were in place. 

Code 1: Find your inner drive and keep feeding it

For Priven, the pivotal moment that forced him to shift his attitude in life is still a fresh memory, despite the intervening years. “I was 20 and waiting tables at a restaurant at the Gateway Theatre of Shopping. One of my customers had finished eating and gestured over his plate containing some left over, half eaten pizza. ‘Here, this is for you,’ he told me with mistaken generosity. ‘Put it in a doggy-bag and take it home.’ His words were like a sucker punch to my dignity. I couldn’t believe it. Was this how our society treated its poor?”

It was the last straw in a series of blows that Priven had endured that day. He’d been rejected by a girl whom he’d asked out, on the basis that she wouldn’t date anyone who didn’t own a car. That morning his family had also once again shared their disapproval over the way he was living his life.

“They called me an embarrassment. It stung — and it stuck in my mind. To top it off, I arrived at work that day and the owner of the restaurant took me aside and told me that I had too much potential to be working as a waiter my whole life. He was thinking of firing me so that I would get out of my comfort zone and do something else.”

After his run-in with the customer later that day, Priven went outside the mall, reflecting on what had happened that day and his life in general. “It was like someone snapped their fingers and woke me from a bad dream. I would never let anyone belittle me or impinge on my dignity again. Then and there I made a decision: I would no longer be the victim of my own fate. I was going to be the master of my own destiny.”

Hungry to prove himself, the promise was more than just words for Priven. He knew that he needed to take matters into his own hands and start making some real changes. “Once I stopped blaming the world for everything that went against me, I started to grow. I began to see challenges as opportunities and I was able to channel that energy into a positive inner drive. I began to understand that things don’t happen to you, they happen for you. That shift changed everything for me.”

Related: 30 Top Influential SA Business Leaders

Code 2: The biggest opportunities are found where things are the most difficult

“The first principal I learnt is that in adversity lies opportunity. In a business sense this means being able to identify the challenges people have and create a solution that takes away these difficulties.”

It was a lesson Priven was already learning in primary school. The school had a small tuckshop catering for over 1 000 kids. Long, frustrated lines meant many kids ended up missing their entire lunch break waiting to be served. The young entrepreneur immediately spotted a gap. “I borrowed some money and bought bags of chips and chocolates and sweets from a local wholesaler. I started at the back of the queue and sold to the kids one by one all the way down the line. I sold out quickly and made more profit than the tuck shop vendors because I didn’t have any overheads.”

The small business only lasted a few weeks before the school shut it down, but Priven took something away from the experience more valuable than some extra cash in his pocket — he’d found validation that his approach to business worked.

“How do you make things easier for people? Answer that and you’re making money. Difficulties can be found everywhere, regardless of class or creed. It doesn’t matter what the circumstances are. It could be a blue-collar factory worker at the end of the day not being able to go to the supermarket to purchase groceries because they’ll miss their taxi home. Or it could be wealthy early-adopters interested in investing in blockchain technology, but not having the time or know-how to manage their cryptocurrency portfolio effectively.”

Priven doesn’t let insurmountable tasks discourage him. “If it’s difficult, there are fewer competitors who will enter that field. It’s that simple. Most people are daunted by the challenge and find something else to do. However, that’s where the real opportunity lies. I believe the impossible is not unachievable — it’s just a niche market.”

This same philosophy has driven Priven to explore highly technical sectors, including augmented reality (which he began exploring over six years ago), and how to incorporate artificial intelligence into crytocurrencies.

“I love doing difficult things. That’s the space where a lot of money can be made,” he says.

Code 3: There’s no substitute for hard work

According to his close friends and family, Priven’s capacity for burning both ends of the candle is legendary. He’s proud that entrepreneurship runs in his DNA, a trait fostered by his late father, Christie Reddy, from an early age. The founder of a national logistics company, Christie owned a fleet of more than 100 trucks and boasted a client base of multi-national accounts when he was killed in a fatal road accident. A series of hijackings, theft and mismanagement quickly saw the company crashing into bankruptcy. Priven was just 11 years old and his world was ripped apart.

“My dad taught us the value of working hard from a young age,” he says. “My four siblings and I were always competing in entrepreneurial games. He even sub-divided the back garden into five small vegetable plots and gave us each a packet of seeds. The challenge was to see who could grow their own veggies and herbs and then sell them door-to-door. ‘After paying your mum and me for the cost of the seeds and fertilizer, the one who makes the biggest profit is the winner,’ he told us.”

For Priven the challenge wasn’t work though — it was fun. And that sense of fun has always persisted. To this day he says it’s not hard work if you’re having fun.

“I think my dad knew that by giving us these business principals, skills and tools at a young age, he was laying the foundations for our future independence. He knew this was more valuable than any trust fund he could set up.”

Today, all of Priven’s siblings are successful entrepreneurs operating their own businesses in diverse industry sectors, ranging from one of the leading app development companies in Africa and the Middle East to a large independent events management company, to South Africa’s only business consultancy for tech start-ups, to a niche organic farm in the Western Cape.

Code 4: Perseverance always pays off

Priven launched Kagiso Interactive as a web design agency 12 years ago in what he calls ‘the wild west days’ of the IT industry in South Africa. “I had learnt graphic design at my brother-in-law’s design studio and was making a little money doing a few below-the-line advertising projects for clients. I had a chance meeting with a guy in a coffee shop who said ‘You need to meet my brother — he does web design. Maybe you can work together.’

“Web design was still pretty new. We met, and ended up launching a small start-up from his garage, combining my graphic design and business skills with his web-building skills. We began attracting some clients and even employed a few people. But it was tough. The garage flooded every time it rained. We moved into an office block but we weren’t stable yet. After eight months my business partner left, along with most of our employees.”

For Priven, it felt like he was in a downward spiral. He was 24 years old and finally feeling like he was building something worthwhile. At this point, after everything he’d been through, quitting wasn’t an option.

“With only one employee left, I advised him to find a job at a larger company as well. It was a steep learning curve, but I hung in there. I wanted him to find security, but I was determined to make a go of it for myself.”

One of Priven’s customers, the owner of Tudor Hotel in Durban, offered him some space, furniture and equipment so that he could continue working, and told him he could start paying rent once he brought in revenue. It gave Priven the start he needed.

Related: Inspiring Entrepreneur Siyanda Dlamini Believes You Need To Back Yourself To Build Your Dreams

Code 5: Don’t be afraid to leave your comfort zone

priven-reddy-expert-advice

With his fledgling business downsized, Priven looked online for new markets. He registered his company’s services on eLance to broaden his market-base and tap into an international client-base.

“I met an IT entrepreneur who was based in India through an online platform. We became friends and spent a lot of time discussing our companies, our clients and troubleshooting any business problems we experienced. He planted the seeds of app development in my head. I remember telling him it was a ridiculous idea, but he wouldn’t let it go.”

It was 2009 and the Indian Government was largely investing in IT and mobile applications, two things that were virtually unheard of in South Africa. The Google Play Store was only launched in 2012. Priven wasn’t sold on the idea, but he eventually allowed himself to be convinced, largely because he just needed to sell it.

“I didn’t need to build up a team because I could outsource any development to India, so the risk was really low,” he says. “We’d basically do a web search and contact any companies we found who made money from their websites and we’d offer them an app. It wasn’t the easiest sell. We were trying to convince people that you could make money from a smartphone — a device that had just been launched in South Africa. We were telling them it was a computer in their pocket, which was true, except there was no iStore, Internet speeds were slow and mobile data was expensive.”

Once he starts something though, Priven sees it through, and so he stuck at it. “I was feeling a bit like a fish out of water, and kept asking myself what I was doing. But the more I did it, the more I learnt, until the idea of app development started to feel familiar.”

Because of that friend’s persistence, Priven ended up on the ground floor of mobile applications development. “By the time other companies recognised the value of apps, we had learnt a lot of lessons and really understood the space. Plus, our clientele was largely international.

Code 6: Believe in your product, always

Kagiso Interactive spent years outsourcing its work to India, which worked well because it allowed Priven to keep his overheads low while he built up the business. “I reached a point where I didn’t want to be a factory though,” he says. “I wanted to offer a lifetime warranty on the applications we built. Most apps only really start to show problems once you’ve scaled your users, and that takes 18 to 24 months, long after most warranties have run out.

“With this in mind, I started building my own team, upskilling and moulding them with a service-first culture. We don’t charge maintenance either. If you’re confident in your product, it shouldn’t need maintenance. We back ourselves.”

By 2014, when the Saudi Royal family contacted Kagiso, the company had built over 1 000 applications and had developed a strong reputation in the market. “Working with the Saudi Royal family has been a game-changer for us — a lot of our clients are based in Dubai — but none of that could happen overnight.

“We got into a space early, focused on becoming the best in our field, built a solid word-of-mouth and referral reputation, and ten years later started reaping the rewards.”

Priven is also fanatical about giving clients what they need, instead of what they ask for. “We’re here to build real solutions and we understand this space. It’s not always the popular move to tell a client that they actually need a different product to the one they’re requesting, but it’s the right move, and it will cement an excellent relationship.

“Over the years I’ve turned work down that wasn’t right for us, or if I knew the company couldn’t afford what they were asking for, or wouldn’t be able to take it to market. We also never tender for business. Our work should be on our merits alone.

“I also oversee everything — nothing is sent out without my final approval. This means I need to always be available, and respond to things quickly. As far as I’m concerned, that’s my job.

“It also fosters a culture of putting the client first. We need to respond to every single client within 15 minutes of receiving a call, email or message through our website. It’s an ethos that has shaped everything we do, and is the reason why it took ten years to build the foundations for a business that has accelerated in growth in the past four years. We live for this.”

Related: 6 Habits Long-Time Millionaires Rely On To Stay Rich

Code 7: Mindpower is real

“When you grow up in adversity you have two choices: You can either allow the negativity around you to consume you or you can focus on the positive and see the challenges as opportunities. Wallowing in self-pity will only make you bitter. You end up with a victim mentality — and that cripples you. I don’t like focusing on the negative, so I search for the rainbows in the storm instead.”

In 2010, Priven’s sister gave him The Secret by Rhonda Byrne. “It changed everything for me. I realised the power of thought and what it’s done for my life. Mindpower is real — picture it, really want it, and then focus on how to get it. You can attract people and things to your life. You just need to be able to visualise it and then go out and get it.

“That doesn’t mean it’s easy — you will still bang into walls and face challenges. But when you have a determined mindset, you can push through them to the other side. You can overcome anything. A positive mindset is a powerful weapon that you can use to transform your reality.”

Code 8: Never stop learning

Priven is an avid learner. It’s a secret he believes too few people take advantage of: There’s so much out there, so many free online courses, and so many ways to upskill yourself. So why aren’t you taking advantage of all of those resources?

“I’ve never let the fact that I didn’t get a degree hold me back. We all have the potential to be great — you just need to be willing to put in the work. I taught myself design, then web development, then app development, and then AI and VR and how blockchain and cryptocurrencies work. The information is out there. You will also be amazed at how forthcoming people are and willing to share their knowledge.

“I hire experts, but I need to understand everything that we do within our business, and I need to know enough to see what’s coming and where technology will take us.

“I use the same philosophy when I hire. We do need senior engineers, but I also hire kids straight out of university. I learnt this from Google — you need a degree, but top companies don’t hire based only on that degree. We hire based on potential and attitude. What can you teach someone, and how much are they willing to learn?

“An individual who believes they should be promoted purely on their degrees isn’t the right fit for us. We want people who will seize any opportunity to learn and really better themselves. Those are the people who do well in our organisation.

“We live by what we believe in. The head of our Shypar team used to be our cleaning lady. I saw the potential in her right from the beginning. She was hungry to learn. Even as a cleaner she found time during her lunch breaks to learn on the computers in the office. She was given the opportunity because she never stopped learning.”

Priven’s philosophy is clear: Expose the right people to skills and they will grab that opportunity — and you will have helped them change their lives. “We don’t always get this right. We hire slow and fire fast. But I prefer to give everyone the best opportunity I can and to do that you have to start by taking a chance on them.

“I try to hire people who are better than me. I believe it’s important to surround yourself with people who are progressive and positive. They up your game. Negative people are energy vampires.

“In 2010 I had one employee. By 2014 we employed 188 people, and four years later we have 386 staff members. I’m incredibly proud of the skills we have built over that time.”

Related: 7 Pieces Of Wise Advice For Start-Up Entrepreneurs From Successful Business Owners


Lessons learnt

priven-reddy-of-kagiso-interactive-media

Put the right foundations in place

That’s the real secret to growth. In the last three years I’ve really started focusing on other passion projects because Kagiso Interactive has grown to a point where it can bootstrap other start-ups and take some mitigated risks.

We’ve also been learning all this incredible tech that we can now put into action. Focusing on AI in 2012 gave us the know-how and technology we needed to build Krypteum, an AI platform that is going to change the face of AI and what it can do for business. It reads hundreds of thousands of lines of code and information in seconds. Krypteum is also the world’s first AI-powered investment cryptocurrency. If you put the right foundations in place, the sky is the limit.

Collaborate with key stakeholders

When we launched Dryver, a local ride-sharing app, we immediately started engaging with the taxi associations. We want to create a business that supports drivers and small business owners, and is branded and safe for everyone — drivers and customers alike. We knew it would be important to get the taxi associations on board — the right partnerships always enable growth.

Always put your users first

When we built Shyper, our delivery app, we focused on the drivers: What did they need? What helped them to deliver a good service? This was all important, but we ended up with a really complicated app that consumers found too difficult to use. We’ve now made the decision to rebuild the architecture from scratch. We’ve learnt a lot, and we can simplify the platform to make it a lot more user-friendly. Yes, it means losing money short-term, but long-term we will have a much more successful business.

In any sales discussion, make sure you have a solution for your client

Sit back, spot the problem and determine the solution. That way you’re having a discussion that focuses on a solution for a problem that you know needs solving.

Always treat people in the way that you would want to be treated

I’ve been on the other side of this, and it can be emotionally damaging. Be kind with your actions as they will ultimately define you.

Continue Reading

Entrepreneur Profiles

Who Is Lyle Malander? – Winner Of The SAICA Top-35-Under-35 CA(SA) Competition

The daring and driven entrepreneur Lyle Malander launched Malander Advisory, a chartered accounting and financial advisory firm, in 2015. He has since also launched Malander Placements, a recruitment firm, and Malander Digital, an IT firm. And they just recently opened a branch in London.

SAICA

Published

on

By

lyle-malander

Vital Stats:

  • Lyle Malander
  • Age: 30
  • Designation: Director
  • Company: Malander Advisory, Malander Placements, Malander Digital, Malander UK
  • Visit: www.malander.co.za

At just 30 years, Lyle Malander is not merely a trendy businessman but a trailblazer whose ambitions are fuelled by making a difference and creating a legacy. The co-founder and director of the Malander Group of companies’ core focus is providing professional advisory and resource solutions to various large and listed entities. Lyle is proud to say that in 2,5 years the Malander businesses have derived revenue in excess of R40 million. His hard work and arduous hours have turned his dreams into reality.

Through the Malander Advisory business, Lyle oversees the team that provides managed chartered accountant and finance resource solutions to an array of clients in various sectors and industries and has created employment opportunities for over 70 chartered accountants and finance professionals.

Malander Placements is a team of trained professionals that provide recruitment solutions, particularly in the fields of finance, law and IT, to various clients. And pursuant to his keen interest in the technological environment and the ways in which it can enhance business operations, Lyle established Malander Digital, which provides temporary IT resourcing, IT outsourcing, and digital marketing solutions.

‘Lyle’s story of persistence, growth and vision is an inspiration to anyone who is daring enough to start their own business,’ says Dineshrie Pillay, one of the Top 35 judges.

Related: 10 Young Entrepreneurs Under 30 Share Their Start-Up Secrets

‘I think as entrepreneurs, we are always looking forward and striving to achieve more and as soon as we reach a goal, we change the goal posts to want to achieve more,’ says Lyle Malander. ‘That being said, I wasn’t always fortunate enough to have enjoyed the luxuries life has to offer. I remember the struggles we faced as a family when I was growing up. I think what sets me apart is that I have always seen these struggles and challenges as a learning opportunity which fuels my desire to want to make a difference and create a legacy.’

Lyle humbly attributes the success of his businesses to his strong team with an aligned vision: ‘My co-director and team have all been pivotal to the growth of the business and their motivation and dream is what keeps us going on a daily basis,’ he says.

Lyle admits that growing up, he didn’t always have the most fortunate of circumstances. As a young coloured kid from Cape Town, he was exposed to his fair share of financial and social challenges. But he held on to his dreams to make a difference. Today he says that his perseverance and dedication has been a key factor in overcoming his challenges in life.

‘I remember a time when I was younger and wanted to become a doctor because at the time I considered it to be the only really “prestigious” profession I knew of. Later on, I realised that I couldn’t spend time in hospitals and fainted at the sight of blood. My mom then came across the CA(SA) profession in conversation with a colleague at work and proceeded to tell me about it. I then started doing some research,’ he says.

He liked what he found and avidly began pursuing his studies to be a CA(SA) at the University of Stellenbosch. But at the end of his honours year when he received his end of year results, he learnt to his shock and dismay that he had received the bare minimum mark of 40% required to get access to the final exam. He distinctly remembers his lecturer saying, ‘To those of you who have a 45% year mark, don’t worry, there have been people in the past who have ended up passing the year.’ Being in the unfortunate position of having a year mark lower than that, Lyle immediately had that sinking feeling that he might have to re-do honours.

However, when he chatted with some of the graduate recruiters at Deloitte, they encouraged him that it was still possible to make it through the year. He decided he wouldn’t be giving up as yet!

‘I managed to pass honours that year and since then, I have realised that giving up isn’t the answer. We should always continue to follow our dreams no matter what odds are stacked up against us,’ he says proudly.

Lyle relocated to Johannesburg to complete his articles at Deloitte in 2012. He then went on secondment to Deloitte LLP in Chicago for three months before returning to join an accounting and advisory division at Deloitte South Africa. He worked on various clients including the Aveng Group, where he assisted in raising a R2 billion convertible bond.

‘I believe the training we get as CAs(SA) requires us to get an in-depth understanding of not only the finance environment but the business environment in general. Gaining this understanding of the mechanics of business and the importance of controls within business has equipped me for the entrepreneurial journey in the sense that I have had exposure to various operating environments and have garnered an understanding of what it takes to run any operation,’ he says.

‘I think great entrepreneurs are the ones who not only learn from their failures but also learn from those they are surrounded by,’ says Lyle. ‘As entrepreneurs, it is so easy to get consumed by our own ideas and vision that we forget to listen to the needs of those around us, and more specifically the needs of our clients, teams or employees. Great entrepreneurs not only identify these needs but also develop solutions to address them.’

Lyle has been instrumental in the companies’ recent expansion into the United Kingdom through the opening of a London office. This is pursuant to the companies’ expansion strategy to gain international exposure and the ability to service their clients with both their local and offshore financial advisory and resourcing requirements, as well as provide their finance and recruitment professionals with international exposure.

They have also recently started a programme called ‘Malander for Change’, which is aimed at providing technological resources such as laptops and Internet access as well as development training to institutions and organisations that need it most.

‘Our Malander for Change programme is aimed at providing training and guidance on not only how to find a job but also how to get access to resources to further education and training, as well as foster entrepreneurship, in the hope of contributing to a decline in the high rate of unemployment we face in our country,’ Lyle says.

Related: Funding And Resources For Young SA Entrepreneurs

Family life

Although Lyle admits much time is spent planning business, his free hours are spent with his girlfriend, family and friends. And when he has time, he also enjoys a good game of sport.

Lyle says his mom has always been the glue that held the family together and was a significant role model for him. ‘She was always the one that drove me to become somewhat of an academic, and I will always be grateful for that.’

His father, a serial entrepreneur, and his brother, also an entrepreneur, have taught Lyle many valuable lessons and he has drawn a large amount of inspiration from them.

Lyle’s describes his gran, to whom he is very close, as one of his number one supporters. ‘I think for any individual it is always important to have someone who believes in you and in everything you do. My gran has always been that person.’

‘Coming from a background where I was exposed to poverty and growing up in areas of poverty where I witnessed the imbalances in society, I believe that we as professionals have the ability, and potentially even a responsibility, to contribute to social change,’ he says.

‘The single greatest lesson that I have learnt so far is that nothing is impossible!’

What mantra do you live by?

Dream it. Believe it. Achieve it.

Where do you see yourself in five years’ time?

I hope to lead the Malander Group to greater heights and growing it into a reputable brand within the South African and even international business environment.

Continue Reading

Entrepreneur Profiles

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

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

Nadine Todd

Published

on

appanna-ganapathy

Vital Stats

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

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

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

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

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

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

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

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

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

2. Price and solution go hand-in-hand

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

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

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

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

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

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

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

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

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

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

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

appanna-ganapathy-art-technologies

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

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

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

4. Stay focused

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

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

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

Appanna chose his partners carefully with this goal in mind.

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

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

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

5. Reputation, network and experience count

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

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

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

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

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

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

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

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

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

6. Start smart and start lean

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

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

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

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

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

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

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


Into Africa

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

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

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

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending