Although it’s tough, you can succeed nonetheless
These 11 South African entrepreneurs have experienced their fair share of ups and downs. Some of them needed life changing events, and external criticism in order to pivot or launch their finally successful business or venture. But in the end, they persevered and today run some of the most thriving companies in the country.
It’s becoming clearer to many that the journey of an entrepreneur is difficult one. They start out in their garages, and some sleep in their cars to save capital. A few realise, after years of running their businesses, that it can’t scale and they’ll need to pivot. Life also happens, which means entrepreneurs also wade through life altering events that regularly drive them re-evaluate their life’s path.
Here are 11 of South Africa’s best and brightest businesspeople, sharing their stories and advice on how they overcame obstacles and struggles in order to achieve success:
Mphela & Associates on scaling their legal services enterprise
- Player: Maditsi Mphela
- Company: Mphela & Associates
- Established: 1986
- Turnover: R100 million
- Visit: mphela.co.za
As a lawyer, Maditsi Mphela didn’t really consider himself a businessman. But, when he started his own legal practice that is exactly what he became. Law firms are service-orientated businesses, which are notoriously difficult to scale. This is because lawyers are highly-skilled professionals and each case can take lengthy amounts of time.
As the owner, Mphela employed skilled and ‘expensive’ people who spent a lot of time on each case. There was a need to reposition in order to access a growing client base and to facilitate access to the High Court. His practice at the time was successful, earning him R10 000 in the first year and growing from 1 000 to 15 000 clients, but it started to stagnate and he needed to figure out how to scale it.
The Top Secret
Mphela found the answer by finding a specific focus for his business. Instead of being a general practice, Mphela and Associates would focus their energies on personal injury cases and cases against the state. He found that other cases were requiring more work and time, and offered relatively low incomes for his team. So, he re-engineered his firm to focus on areas that yielded huge returns.
Decision Inc. had to pivot to build a sustainable business
- Player: Nicholas Bell
- Company: Decision Inc.
- Established: 2008
- Turnover: R116 million
- Visit: decisioninc.co.za
Nicholas Bell launched his business that serviced big corporates and positioned it as a value partner. Five years after launching, his turnover was R21 million and he boasted clients like Simba, Harmony, SAB and Sibanye Gold. However, when meeting with an International Selection Panel to join Endeavour, they told him that they didn’t believe his business could scale, as the Intellectual Property wasn’t his, and that he was open to disruption.
“The feedback made me look at the business critically and evaluate our strengths and weaknesses,” he says. Bell realised that Decision Inc. was open to disruption if someone bought their single vendor. He also looked into who controlled his company’s licence to trade.
The Top Secret
Once these weakness had been identified, Bell systematically solved each one. First, he partnered with other vendors to avoid future possible disruption from only having one vendor. Then, he turned his attention to IP: “We’re an intellectual business that relies on human capital. Our IP resides in a lot of people’s heads. We needed to get it out of [their] heads and into the business,” explains Bell.
His business had a high capacity, but more employees couldn’t do the work faster. He needed to change his business model, which is what he did. Bell’s business is now worth more than R100 million and in the next five years his business could be worth 10 times return on investment.
Get creative when the pay cheques stop coming
- Player: Jerusha Govender
- Company: Data Innovator
- Established: 2015
- Visit: thedatainnovator.com
When Jerusha Govender went on maternity leave with her first child, her company decided to not renew her contract for economic reasons. Within weeks of the birth of her son, she had registered her business, Data Innovator. But, how would she get her idea to market? If you can’t get customers to pay for your service, you don’t have a business.
The Top Secret
“I contacted everyone I knew. That’s a real plus point to working for a few years before you start your own business. The industry gets to know you, you build up a track record and develop necessary experience and expertise to be really innovative in your field,” she says.
However, Govender didn’t have a proven track record as a business owner, so she offered her services for free for a specific period of time to grow trust with her customers. This business model was risky, but in Govender’s case it paid off. She told her clients up front that after two free reports, she would need to be paid for her services, and they agreed. Now, her business is based entirely on referrals and clients have kept coming since she entered the market.
TBO Touch on fighting an uphill battle against your critics
- Player: TBO Touch
- Company: Touch Central, serial entrepreneur
- Established: 2016
- Visit: touchcentral.fm
When TBO Touch started his career on Metro FM, critics were quick to predict that he wouldn’t be able to grow his primetime show into an asset. His goal, however, was to change the business of radio by converting three hours of radio into a ‘movement’. Throughout his entrepreneurial exploits, it’s argued that the ‘media’ is waiting for him to fail, as he’s already made headlines several times.
The Top Secret
“My mantra from the beginning of my career has been to under-promise and over-deliver.” This method allowed him to consistently keep his clients happy and coming back for more, despite what was happening in the press.
Another top secret that helped TBO Touch go from strength to strength is to continuously have a positive mindset.
“Everything looks big and daunting until you realise how easy it is when you reach the top. There is no such thing as impossible. There are minds and attitudes that create excuses not to attain goals, that’s all.”
Self-doubt or second guessing yourself can have a detrimental impact on your business, it’s better to rather be positive about your business and the direction you’re heading in.
Demographica learnt the hard lesson of adapt and grow or be left behind
- Player: Warren Moss
- Company: Demographica
- Established: 2006
- Visit: demographica.co.za
Demographica has been around for a decade already, and during this time the company has enjoyed tremendous growth. But, it had to pivot the business to maintain its growth curve.
Long-term companies can see massive disruption heading down the pipeline and that’s what happened with Demographica.
“Things like the Consumer Protection Act and the Protection of Personal Information Act were coming into being, so I realised that a database service like ours would come under threat. If we wanted to keep going we would have to change our business,” says Moss.
The Top Secret
“We weren’t simply sending out emails. We were constantly solving problems for clients. Our clients were asking us for help, and we started to build a reputation as a business that could provide advice and insight on a strategic level. We realised this was an area we could focus on, and so we started to turn into more of an agency, with a focus on direct marketing,” Moss explains.
Demographica not only pivoted, but also carved out a significant niche to operate in. “Since changing over, the company has grown by 200%.” So they completely changed their offering and overhauled the whole company in order to avoid being disrupted and to scale effectively.
Related: 10 Dynamic Black Entrepreneurs
Planet Fitness started with no credit record, no assets and no money
- Player: Manny Rivera
- Company: Planet Fitness
- Established: 1995
- Turnover: R850 million
- Company worth: Between R2 billion and R3 billion
- Visit: planetfitness.co.za, www.justgym.co.za
“I started out with no backing, no cash, and no major corporate infrastructure behind me.” But, Manny Rivera was going to launch a major fitness brand to compete with the Health and Racquet Club no matter what.
“I had pure blind passion and only the end in mind. That’s what I focused on. I had a clear vision: I wanted to be the most profitable and successful health club in South Africa…and beyond,” says Rivera.
The first challenge was gaining skills, credibility and a share of the market: “The trick is to focus on what you do have and not what you don’t have.”
The Top Secret
Manny Rivera used the fact that he was starting smaller to his advantage. His competition wouldn’t be paying attention to him. “I knew they’d underestimate the little guy,” he says.
“I found a stand-alone club with nice, old-school equipment and started negotiating with the owner. I couldn’t get a loan to buy the business, so I had to make him an attractive offer that suited both our needs.” Rivera offered the gym owner R50 000 a month with a 10% escalation per year for the next ten years, after that the gym would be his, and that was his first stepping-stone to building a fitness empire.
Do what you know, especially if you can do it better than everyone else
- Player: Busi Skenjana
- Company: Brand Support Keys Marketing
- Established: 2002
- Visit: bskmarketing.co.za
Busi Skenjana wanted to become an entrepreneur, but she couldn’t figure out precisely what she should do. “I knew I needed a niche for myself,” says Skenjana. She understood that she had to comprehend her customers, their needs and their challenges and relate her message in a way that made them care about what she was telling them. Except, she just didn’t have an audience.
Skenjana has been a member of a stokvel her entire adult life, and it’s an industry that she knows intimately.
“I could see where brands were getting it wrong. Big companies were doing brand activations in black communities, but they were missing the mark,” says Skenjana.
The Top Secret
She suddenly realised this should be the industry she should focus on for her marketing business. Big business was missing the social path to their target marker, but Skenjana knew where they would be.
“Every Saturday there are thousands of stokvel meetings happening around the country. People are engaging with each other on a social level. It’s an engaged audience and far more focused than people at taxi ranks or in malls,” explains Skenjana.
Another top secret, Skenjana says: “If you put your market first and really focus on their needs, success will naturally follow, because you’ll be offering a service that adds real value to businesses and lives.”
Partner with your competitor to continue experiencing growth
- Player: Rudolf Vavruch and Peter Puren
- Company: RentMyRide
- Visit: rentmyride.co.za
Peer-to-peer car rental is an exciting business model in its own right within South Africa. There is, however, some debate around how much growth these sorts of businesses can achieve given the largely higher LSM’s and corporate entities that this model initially appealed to.
Being unable to scale would have eventually caused RentMyRide to become stagnant and the business would have slowly downsized, or faced disruption by a competitor.
The Top Secret
Recognising this potentially limited growth, the founders of RentMyRide partnered with Uber in South Africa to provide easy and equitable solutions for both fleet partners. A separate business and platform, DriverSelect, connects these parties and enables the owners to still get great returns on their vehicles, but with far less involvement in the administration of their fleet.
Launching amidst a global economic crisis made Car Service City stronger
- Player: Grant Brady
- Company: Car Service City
- Established: 2004
- Visit: carservicecity.co.za
For a young company, launching and being hit by a global economic crisis is the worst scenario you can think of. Establishing and growing a business under normal circumstances is hard enough, but when the world’s economy contracts, it can be nearly impossible to succeed.
But, Car Service City didn’t close down like many other businesses did when the Global Financial Crisis of 2009 hit. They flourished. And, over the past decade the brand has expanded to over 60 franchise locations nationwide.
The Top Secret
“We believe our business is recession-proof because road transport is the main method of transport for South Africa. Because we use cars so much, we need to keep them in top condition. The maintenance of vehicles is therefore key to keep them in top conditions,” Brady says.
Car Service City also focuses their attention on one-man-show car service businesses. This allowed them to both convert the competition and create new experienced owner-managers.
Avoid assumptions that a great career will come with time and patience
- Player: Kate Moodley
- Company: Discovery Consulting Services
- Established: 2010
- Visit: www.katemoodley.co.za
In her early 20s, Kate Moodley was told to have patience and build her career. Trying to beat this misconception can take many years for entrepreneurs to overcome. Listening to bad advice can be just as devastating as a disruptor or an economic crisis.
Thankfully Moodley was far too impatient to wait ten years for a promotion, which is how she became a GM at Momentum by 26.
The Top Secret
She achieved her promotion by upskilling herself while she looked for opportunities. “I went out and taught myself the skills I needed to fill that role. Typically, successful people are doing things that other people don’t want to do. Where you put in effort is where you’ll see the rewards.”
Moodley focuses religiously on her self-development and keeps herself disciplined enough to work on it continuously.
“Do it the right way. Don’t choose options that make it easier in the short term – think long-term; learn more, look longer and further into the future,” she says.
A man with ‘only matric’ on becoming a universally loved brand
- Player: Brian Altriche
- Company: RocoMamas
- Launched: 2014
- Visit: rocomammas.com
Brian Altriche started his work life airbrushing Harley Davidsons and leather jackets on Hollywood Boulevard in Los Angeles. During the late 80’s, early 90’s it was finally time to return to the new South Africa.
He moved to Yeoville and started painting signage for restaurants. Altriche had no tertiary qualifications, but he was creative, and a fast learner. He was paying attention to branding and marketing, and figuring out what customers responded to. And then his accident happened, he broke his arm and leg along with sustaining a head injury. He was stranded in hospital. During his time in hospital he re-evaluated his life path.
The Top Secret
He became obsessed with visualisation, the visualising of his life path, what a successful brand should look like, various options for how customers would experience a particular offering. Nothing would happen until he visualised it down to the tiniest detail, because once he saw it perfectly in his mind’s eye, he could aim for it and achieve it.
Twenty years later, this fanatical relationship with the power of visualisation would lead directly to the launch of RocoMamas, which is arguably one of the most successful new food chains in South Africa’s fast, casual dining sector.
Next Slideshow: 10 Inspirational African Entrepreneurs
SA Entrepreneur Takes First-Of-Its Kind Business To An International Level
Jo Farah shares some insights on his entrepreneurial journey as Global Entrepreneurship Week (GEW) gets underway.
South African-born entrepreneur and creator of the world’s first environmentally friendly sneaker care product – Jo Farah says entrepreneurship has always been part of his DNA, and making a valuable contribution to society his ultimate goal.
The founder of Sneaker LAB – an innovative business that’s managed to create a first-of-its-kind, biodegradable sneaker care product, delivered his sentiments on entrepreneurship and his entrepreneurial journey as Global Entrepreneurship Week (GEW) kicked-off in 170 countries around the world this week.
Farah, who’s been mentored and groomed by his entrepreneur father, says developing a successful business has always been part of his life’s plan. And while he managed to establish a few start-ups during his entrepreneurial journey, which includes founding a guerrilla marketing agency in South Africa, and producing ads for the likes of Adidas, New Balance and Puma it still wasn’t enough.
After returning from the United States in 2008 with just one thing on his mind – to help cure South Africa’s conundrum by creating jobs for the unemployed, and in-turn fostering economic growth, Jo invented a one-of-a-kind sneaker care product, and put shoulder to the wheel to establish his business in 2013.
Starting a sneaker care product range was a natural choice, especially considering Jo’s passion for sneakers, street wear and urban culture. He also wanted to create a complimentary product to accompany the list of sneaker brands that has inspired him over time. Jo’s work behind the scenes commenced in earnest and in no time he conducted enough research to support his theory – there was a gap in the market for branded sneaker care products. He knew that he was on a good wicket.
“There already was a range of non-branded products on the market, but my research revealed there was a healthy appetite for branded, environmentally friendly sneaker care products. That spoke directly to my business model,” he says.
Today, Sneaker LAB has placed Cape Town on the map with its premium global status – it’s the only sneaker care product range in the world to be Green TAG certified, environmentally friendly and biotech driven. Its products are water-based, readily biodegradable, and the packaging is suitable for recycling. The business also operates internationally, in 50 countries across Africa, with an experiential brand store in Braamfontein Johannesburg; as well as downtown Los Angeles in the USA; Asia and Europe. The business is growing by the day, with a store in Tokyo set to open soon.
As an entrepreneur he’s grown in leaps and bounds, and despite many changes along the way, his sentiments on entrepreneurship remain.
“Inspiring potential entrepreneurs to develop an entrepreneurial mindset and embark on an entrepreneurial journey is one way of solving some of the world’s most critical problems, and freeing the economically marginalised,” Jo says.
He urges young aspiring entrepreneurs with an entrepreneurial mindset to take the plunge and to channel time and energy into developing their business ideas into something tangible and workable that could generate good long-term financial returns.
“People will tell you that it can’t be done, but believe me, it can. All you have to do is to believe in your idea and to work hard and smart and you’ll reap the benefits,” Jo says.
9 Ways Successful Entrepreneurs Spend Their Weekends
All work and no play makes for a very dull entrepreneur.
Successful entrepreneurs have a passion for what they do, so working hard is part of their DNA. But anyone who is successful also recognises that life and work are a marathon, not a sprint. Even they need downtime on the weekend to ensure they’re up to the task of being creative problem solvers and innovators Monday through Friday.
Sure, they may spend some time catching up on administrative work. They may spend time on a big project that needs special attention. And they should definitely spend time thinking about the future and considering the big picture.
But what successful entrepreneurs don’t do is spend the entire weekend buried under work. We all need a break, and entrepreneurs are no less immune to burnout than anyone else. Their weekends are spent restoring their bodies and minds, and getting prepared to function optimally come Monday.
Here are nine things successful entrepreneurs do over the weekend to unwind and re-energise for the week ahead.
1. Wake up at about the same time
Successful entrepreneurs understand that staying on track for the week ahead means keeping the same sleeping patterns, even on weekends. That means going to bed and getting up at about the same time all week. This is because your circadian rhythm will stay consistent, so your body will naturally know when it’s time to sleep and wake up.
As tempting as it might be to sleep in, doing so can throw off your sleep/wake cycle, disrupting sleep patterns and giving you a poor night’s rest. Make sure you aim to get seven to eight hours of sleep every night to avoid a sleep deficit. Also, getting up early means you’ll be ready for whatever the day brings and you’ll have time to accomplish all the things you hope to do.
2. Spend quality time with loved ones
It’s no surprise that weekdays can be hectic and filled with obligations. There’s a good chance you spent more time in front of your computer (and with co-workers and colleagues) than with the most important people in your life. Make sure you’re tending to the quality relationships in your life by making them a priority on the weekends.
Have a date night with a partner. Go for a long walk or enjoy a leisurely lunch with a friend. Make sure you’re building and maintaining those relationships by really listening to them. And then share what’s on your mind and how you’re feeling. The support and connection you feel with others will give you resiliency and can support you in stressful times.
3. Pursue a passion
Is there some hobby or activity you’ve been wanting to try but have never made time for? Dedicate some weekend time to pursuing a passion that’s outside of work and beyond your normal day-to-day obligations. Maybe you’ve always wanted to learn to paint, take up photography or write a novel.
Whether it’s a long-lost hobby or a labor of love you’ve dreamed of embarking on, stop telling yourself that you’ll get around to it “someday.” Set aside a quiet weekend morning or afternoon to work on it. Pursuing your interests beyond work improves your mental health and reduce stress levels. Plus, focusing on activities outside of work will improve your creativity and give you a chance to look at life from a new perspective.
4. Find time for a mini-adventure
Weekends give you a chance to unplug from life, put aside your daily responsibilities and go have some fun! Let loose and break out of your rut by taking yourself on a mini-adventure. Get out of the house and find a change of scenery.
A mini-adventure means sticking close to home, so hiking the Grand Canyon may be a bit much, but an overnight camping trip or a day hike is totally doable. Spend an afternoon at the beach or take your bike out for a long ride. The point is to get out and make a memory that will give you a smile for the rest of the week.
5. Fuel their creative mind
Successful entrepreneurs make sure they take time to feed their creative minds by finding ways to connect with the arts. You don’t need a degree in art appreciation or music theory to enjoy the benefits of engaging with the arts. Simply visiting a local museum or spending time listening to music will suffice.
Viewing art can be like a mini-vacation for your brain. It activates areas of the brain that are involved in processing emotion and engaging your pleasure and reward systems. Listening to music can have an even more dramatic effect. In fact, music has been found to stimulate more parts of the brain than any other human function.
6. Relax, reflect and renew
Savvy entrepreneurs have learned that they must give themselves the space and time to decompress and mull over the events, issues or dilemmas they face. Giving yourself time for self-reflection allows you to link and construct meaning from your experiences. Reflection is one of the main ways we gain insight and foster complex learning and personal growth.
In our busy world, we are often dealing with packed schedules and juggling multiple issues. Make sure you find time on the weekend to disengage from your hectic schedule and just chill. Try journaling, going for a walk, taking in the beauty of a sunset or even just focusing on the present moment and being aware of all the sensations you’re experiencing.
Related: Get Your Weekend Started
7. Get outside and exercise
Whether it’s getting out for a walk through the neighbourhood, shooting some hoops or taking a run through the park, high-achieving entrepreneurs get outside on the weekend to stretch their legs and soak up some vitamin D. There are some great benefits to an outdoor rather than indoor workout (although the most important thing is getting exercise, however it works best for you).
Getting some natural sunlight may be a welcome reprieve from artificial lighting if you spend most of the week in an office. Studies have found that adults tend to exercise for longer when they’re outside. You also tend to burn more calories and work slightly different muscles because of the wind resistance and changes in terrain. Perhaps most important, you’ll have a chance to admire nature and the outside world, which is good for your mental health and well-being.
8. Socialise and network
Successful entrepreneurs realise that any event or gathering is a chance to get to know other people and learn something new from someone you haven’t met. Set aside time to socialise with friends and family or get to know colleagues and workmates. If everyone else is busy this weekend, look for other opportunities to socialise and do something fun and interesting.
Check out a local community event. It could be a great chance to learn more about where you live and network and make connections with others. You could also look for a volunteer opportunity with a charity or nonprofit you’d like to support, such as a local animal shelter, senior centre or food bank. If you enjoy active sports, join a local team or club. If you’re into less strenuous activities, consider a joining a bowling or bocce ball team.
9. Catch up on rest
It’s been a busy week, and you’re feeling sleep deprived and run down. While sleeping in isn’t a good idea, successful entrepreneurs know when they need to catch up on some much-needed rest. A 10- to 20-minute power nap may be just the thing to help you feel refreshed and alert – a short snooze is actually much more effective than a cup of coffee in providing an energy boost.
It’s best to keep naps short: 30 Minutes or less. Longer naps are more likely to leave you feeling groggy and can interfere with your nighttime sleep quality. So when that wave of post-lunch sleepiness hits, go ahead: Indulge in an mid-afternoon nap and enjoy the rest of your weekend!
This article was originally posted here on Entrepreneur.com.
How Lorenzo Escobal Bootstrapped His Way To Competing With Titans And Attracting Top-Tier Clients
Inception Automotive Detailing was founded in 2011 by Lorenzo Escobal. He was only 18 at the time, and the business started small, but Lorenzo has grown it significantly over the last few years and aligned it with top brands. His secret to success? Being proactive and not being afraid to ask for what he wants.
- Player: Lorenzo Escobal
- Company: Inception Automotive Detailing
- Location: Toronto, Canada
- Established: 2011
- Visit: inceptionautodetailing.com
As is often the case in the world of entrepreneurship, Lorenzo Escobal launched his own business purely out of necessity. Attending university in 2010, he realised that finding a job shortly after North America had experienced a financial meltdown wouldn’t be easy. If he wanted to be sure of an income, he would need to create it for himself. So, having detailed cars for friends and family since he was 15, he decided to launch his own operation called Inception Automotive Detailing.
He bootstrapped the business — launching with just $1 200 — and grew it slowly. Today, the company boasts clients like Google and Tesla. Here are Lorenzo’s tips for bootstrapping a small business capable of competing against much bigger players and attracting top-tier clients.
1. Build a great website and market online
The fact of the matter is, your company is judged largely by the quality of its website and online presence these days, especially if you’re taking your product/service to the client. Even if you don’t have fancy premises, you can create a professional appearance by investing in a great website.
Most people are going to find you through your website, so make sure it instantly impresses. Also, invest time and money in creating effective online marketing campaigns on Google and Facebook. Funnily enough, Google approached us about detailing work by finding us on Google.
A good website and good online reviews got us a foot in the door. From there, we could prove ourselves through our work.
2. Learn to network
Attracting clients online is important, but real-world networking shouldn’t be neglected either. There is immense value in joining professional organisations and attending conferences. It’s a great (and affordable) way to market, and you never know how the connections you make may pay off down the line. Networking and being in the public eye also builds credibility for your business. I’ve put a lot of time into getting my name and brand out there, but it’s been worth it.
3. Remember that no one is truly ‘self-made’
Every entrepreneur benefits from the wisdom and hard work of others. I’ve had great mentors who have helped me immeasurably in growing my business. I’ve also had the privilege of working with a great team who has helped me make the business what it is today. I do my best never to forget this, and I view myself not as a boss, but as a part of a team. Sure, I attend a lot of conferences and events, but I also jump in and help when there’s a lot of work to do.
As an entrepreneur, you need to be willing to get your hands dirty and do whatever’s needed — even if that means grabbing a mop and cleaning a dirty floor.
4. Make things happen
As an entrepreneur, you need to create opportunities, not wait for them to fall into your lap. I managed to get work from Tesla, for example, simply by asking for it. I filled out the contact form on the Tesla website and got a reply three days later.
Many entrepreneurs think that it’s pointless to approach large organisations because they’ll never want to do business with a small operation. Never simply assume that. Just ask, and see what happens. Sure, you’ll have to deal with a lot of rejection along the way, but that comes with the territory. Great entrepreneurs are never afraid to put themselves out there.
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