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4 Vital Lessons On Partnership Learnt The Hard Way By Seelan Sundoo

Seelan Sundoo learnt the hard way how a bad partnership can kill a business. Today he’s taking a different approach.

Nadine Todd

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Vital stats

  • Player: Seelan Sundoo
  • Restaurants: Seelan Restaurant and Bar (V&A Waterfront), Sundoo Indian Tappas and Bar (Sea Point), and Three Wise Monkeys, a Raman noodle bar (Sea Point)
  • Additional ventures: And now for something completely different, Seelan is busy opening an underground gallery in Salt River, Luni, for un-commercialised artists; the space will be a space for artists to enjoy Jazz and each others’ art and company
  • Visit: www.seelan.co.za

Take note: Choose a partner carefully

Business partnerships are only as strong as the mutual respect you feel for each other, so choose a growth partner carefully.

In 2012 Seelan Sundoo opened his first restaurant, Shimmys after having a fallout with his previous business partner of five years. He followed that up with his dream restaurant, Seelan Restaurant & Bar in late 2013.

It’s a concerning scenario for many entrepreneurs: How do you find a business partner who shares your vision, values and whom you can trust? After experiencing a bad partnership first hand, Seelan is more wary about how he now conducts business. He’s opened three restaurants in three years, with two more in the works.

He’s well on track to meet his initial five year goal of five restaurants, and he’s doing it carefully and strategically, with people he trusts, and knows he can work with. These are the lessons he’s learnt from working with the wrong partner, and finding the right partners for his new ventures.

Related: The Pros & Cons Of Owning A Restaurant Franchise

1Critically evaluate every offer

seelan-restaurant-and-bar

Although Seelan studied chemistry, it was his waitering and bartending jobs, which he needed to pay for his studies, that eventually shaped his career.

“I joined La Perla as a bar-back,” he says. “Within six months I was head waiter, and a year and a half later, head manager. I trained in the kitchen, learning our menu so that I could travel, research and expand it. We were a high-end niche restaurant, and I learnt the ropes from the bottom up.”

Seelan spent 14 fruitful years at La Perla, discovering his love for the business, as well as his natural talents for running a restaurant. It was these talents that attracted the attention of an investor who was looking to launch The Grand Café in Camps Bay. The Grand in Plettenburg Bay was doing extremely well, and she wanted to expand.

Hard lessons learnt about partners

“She wasn’t a restauranteur, so she needed a partner. It seemed like the ideal opportunity for me. There was nowhere further I could grow at La Perla, and this was a chance for me to have part ownership of my own place. I jumped at the opportunity.”

Unfortunately, as Seelan would learn, he hadn’t taken the time to consider who he was partnering with. Were their goals and values aligned? Who would make the final decisions, and what would the balance of the partnership look like?

“I learnt a hard lesson. I would never change it, because it was the first time I got to build something from the ground up. But, it was an unequal, unbalanced partnership, which meant that even though I had the industry experience, my decisions were constantly over-ridden by my partner; even worse, I could see how those decisions were negatively impacting the business, without any recourse to change them.

“It didn’t feel like a partnership, and after five years I decided to leave. I didn’t believe the business would continue to sustain itself. I hadn’t considered who I would be partnering with carefully enough; I’d just allowed myself to be enamoured with the opportunity.” 

2Choose partners with shared needs

With two decades of industry experience, Seelan went out on his own. Opening the type of restaurant he had in mind, situated at the V&A Waterfront, was capital intensive, and Seelan couldn’t do it alone. He needed a partner, and so he sat down and thought carefully about what he was and wasn’t looking for.

“You need to define what a partner is to you, what level of involvement you’d like, and how much of the business you’ll share. I knew after my last experience that I was looking for an investor who would be a silent partner.”

With this in mind, Seelan began looking for an investor who was interested in making interest on his capital investment, but not in being involved in the day-to-day operations of the restaurant.

“Once you understand your parameters, you can find a partner that suits your needs.

“Just make sure what you’re offering suits their expectations as well. If they’re unhappy with the arrangement it will have a negative outcome. You need to put all your cards on the table, and ensure that you’re on the same page.”

In the case of Seelan Restaurant and Bar, this has worked perfectly for both parties. Seelan has ensured prompt payments with interest, and his investor is only interested in dividends, seeing the management accounts and receiving reports on the overall health and operations of the business.

“As long as the numbers look good, he stays out of the business.” This means that Seelan has to stay on top of everything to keep things running smoothly, but as he sees it, that’s just another incentive to keep him focused.

Related: The Only How-To You’ll Need To Start A Restaurant

3Good partners need respect and similar backgrounds

Partners don’t have to be alike. The best partnerships are based on individuals with different, yet complementary strengths and skill sets. However, as Seelan learnt in his Grand Café days, mutual respect is imperative in a successful partnership.

Since then, Seelan has embarked on a completely different partnership. “In 2014 Ashley Mair walked into my restaurant selling organic chillies. He’s an urban farmer, and not only did I love his product, but we’re cut from the same cloth. We have similar backgrounds, learning experiences and we understand and respect each other. Together, we run Bonder, an organic chilli and chilli sauce business.”

Seelan’s second restaurant, Sundoo Indian Tappas and Bar, was opened with profits from Seelan’s, but his third, Three Wise Monkeys, is with Ashley and a silent partner who has invested in the business.

“I work with incredible people, and have developed successful partnerships based on mutual respect.”

4Understand yourself — do partnerships suit you?

There’s a general business principal that partnerships will always be more successful than solo entrepreneurs. Many investors will only back partnerships. However, Seelan has a different view.

“When you’re alone, you’re forced to deal with reality. You can’t rely on partners; you need to make it work yourself, and find ways to stand on your own feet. By throwing money at a problem, you bail the business out, instead of looking for the cause of the problem: Evaluating the business, making changes where necessary and fixing the problem.

“I’ve learnt that I work well under pressure. It drives me to succeed. Having said that, in most of my businesses I do have a partner and I’ve ensured that we are in agreement on what the partnership looks like.”

Focusing on growth

Seelan’s focus has been on growth. He’s made personal sacrifices to pump everything he makes back into his businesses. “I’m creative, and I love to explore,” he explains.

“It’s why I haven’t opened three of the same restaurant. They all have a thread that binds them, but they have their own individual personalities, like siblings from the same family. This allows me to keep creating and exploring new ideas and concepts, while building on what works.”

With the right partners on board, a positive attitude and strong cash flow, Seelan is well on his way to reaching his five-year goal.

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Lessons Learnt

Scaleup Learnings From Our Top Clients – What The Most Successful Entrepreneurs Do Right

So, how do our successful clients move through these constraints to scaling up? We see four key drivers of success, and they are: people, strategy, flawless execution and finance.

Louw Barnardt

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You’re out of your start-up boots, staff is increasing, your client base is growing, revenue is up and you’ve proven your case to the market. Now it’s time to scale up. The challenges of this vital growth phase are different and it’s a time that demands different mindsets and different actions. In a world littered with small business failures, it helps to be well-prepared for scaling up using a proven methodology. At Outsourced CFO, we get an inside look at the success factors of our clients who are mastering the transition.

On the one hand, scaling up is a really exciting phase; this is what moves you into real job creation and making an impactful contribution to economic growth. On the other hand, it is really hard to scale up successfully. We see three major constraints that limit companies’ transition from start-up to scale-up:

Leadership

The business has to have the leadership that can take it to the next level. When you start scaling up, especially rapidly, the founders can no longer do everything themselves. The team must grow and include new leadership talent that can take charge and execute so that the founders are working on the business instead of in the business.

Infrastructure

The processes, procedures, networks, systems and workflows of the business all need to be scalable. This is imperative when it comes to your infrastructure for the financial management of your business. You’re only ready for growth when your infrastructure can seamlessly keep pace.

Market access

Scaling up demands more innovative marketing and storytelling so that you can more easily connect and engage with the new employees, clients, network partners, investors and mentors that need to come along with you on your scale-up journey.

Businesses that build a market conversation and a compelling brand narrative during their start-up phase are better positioned to have this kind of market access when they need to scale up.

People

It is critical to have the right people on your team. Our successful entrepreneurs have what it takes to attract, inspire and retain top talent. A strong team of smart, ambitious and purpose-driven people who love the company and want to see it succeed contribute greatly to a world class company culture. They are adept at communicating a compelling vision and establishing core values that people can take on. These entrepreneurs are tuned into the aspirations of their people and focus on developing leaders in their teams who can in turn develop more leaders.

Strategy

It is planning that ensures that the right things are happening at the right times. At successful scale-ups strategies and action plans are devised to ensure that the most important thing always remains the most important thing.

Strategy includes input from all team members and setting of good priorities for the short, medium and long term. Goals are clear and everyone always knows what they are working towards. The needle is continuously moved because 90-day action plans are implemented each quarter to achieve targets and goals that are over and above people doing their daily jobs.

Flawless execution

Top entrepreneurs are not just focused on what operations need to achieve, but how the business operates. They have the right procedures, processes and tools in place so that everyone can deliver along the line on the company’s brand promise. Frequent, quick successive meetings ensure the rapid flow of effective communication. Problems are solved without drama. There is no chaos in the office environment. Everyone is empowered to execute flawlessly to an array of consistently happy clients.

Finance

Everyone knows that growth burns cash. A rapidly scaling business faces the challenge of needing a scalable financial infrastructure to keep the company healthy. Our successful entrepreneurs pay close attention to finance as the heartbeat of the business, ensuring that everything else functions. They look at the tech they are using for financial management and for the ways that their financial systems can be automated so that they can be brought rapidly to scale. The capital to grow is another vital finance issue.

The best way to finance a business is through paying clients on the shortest possible cash flow cycle. However, when you are scaling up and making heavier investments in the resources you need for growth, it is likely that you will need a workable plan for raising capital. Our scale-up clients know the value of accessing innovative financial management that provides high level services to drive their business growth.

Navigating the scale-up journey of a growing private company is one of the hardest but most rewarding of careers to pursue. Having people in your corner who have been through this journey before helps take a lot of pain out of the process. No growth journey looks the same, but there are tried and tested methods that will – if applied diligently – lead to definite success. Happy scaling!

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Lessons Learnt

That Time Jeff Bezos Was The Stupidest Person In The Room

Everyone can benefit from simple advice, no matter who they are.

Gene Marks

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When you think of Jeff Bezos, a lot of things probably come to your mind.

You likely think of Amazon.com, a company he founded more than twenty years ago, that’s completely disrupted retail and online commerce as we know it. You probably also think of his entrepreneurial genius. Or the immense wealth that he’s built for himself and others. You may also think of drones, Alexa and same-day delivery. Bezos is a visionary, an entrepreneur, a cutthroat competitor and a game changer. He’s unquestionably a very, very smart man. But sometimes, he can be…well…stupid, too.

Like that time back in 1995.

That was when Amazon was just a startup operating from a 2,000 square foot basement in Seattle. During that period, Bezos and most of the handful of employees working for him had other day jobs. They gathered in the office after hours to print and pack up the orders that their fast-growing bookselling site was receiving each day from around the world. It was tough, grueling work.

The company at the time, according to a speech Bezos gave, had no real organisation or distribution. Worse yet, the process of filling orders was physically demanding.

“We were packing on our hands and knees on a hard concrete floor,” Bezos recalled. “I said to the person next to me ‘this packing is killing me! My back hurts, it’s killing my knees’ and the person said ‘yeah, I know what you mean.'”

Related: Jeff Bezos: 9 Remarkable Choices That Shaped The Richest Man In The World

Bezos, our hero, the entrepreneurial genius, the CEO of a now 600,000-employee company that’s worth around a trillion dollars and one of the richest men in the world today then came up with what he thought was a brilliant idea. “You know what we need,” he said to the employee as they packed boxes together. “What we need is…kneepads!”

The employee (Nicholas Lovejoy, who worked at Amazon for three years before founding his own philanthropic organisation financed by the millions he made from the company’s stock) looked at Bezos like he was — in Bezos’ words — the “stupidest guy in the room.”

“What we need, Jeff,” Lovejoy said, “are a few packing tables.” Duh.

So the next day Bezos – after acknowledging Lovejoy’s brilliance – bought a few inexpensive packing tables. The result? An almost immediate doubling in productivity. In his speech, Bezos said that the story is just one of many examples how Amazon built its customer-centered service culture from the company’s very early days. Perhaps that’s true. Then again, it could mean something else.

It could mean that sometimes, just sometimes, those successful, smart, wealthy and powerful people may not be as brilliant as you may think. Nor do they always have the right answers. Sometimes, just sometimes, they may actually be the stupidest guy in the room. So keep that in mind the next time you’re doing business with an intimidating customer, supplier or partner who appears to know it all. You might be the one with the brilliant idea.

This article was originally posted here on Entrepreneur.com.

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Lessons Learnt

How Sureswipe Built Its Identity By Building A Strong Company Culture

Culture is unique to a business, it’s the reason why companies win or lose.

Nadine Todd

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A company’s culture is its identity and personality. Since this is closely linked to its brand and how it wants to be viewed by its employees, customers, competitors and the outside world, culture is critical. The challenge is understanding that culture contains unwritten rules and that certain behaviours that align to the culture the company is nurturing should be valued and cherished more than others.

At Sureswipe, the core of our culture is that we value people and what they are capable of. We particularly value people who are engaged, get on with the job, take initiative, are happy to get stuck in beyond their formal job descriptions, and who sometimes have to suck up a bit of pain to get through a challenge.

We include culture in everything we do, so it’s a fundamental element in our recruitment process. In addition to a skills and experience interview, each candidate undergoes a culture fit in the form of a values interview. We look for top performers who echo our core values (collaboration, courage, taking initiative, fairness and personal responsibility) and have real conviction about making a difference in the lives of independent retailers. If we don’t believe a candidate will be a culture fit, we won’t hire them.

If we make a mistake in the recruitment process, we won’t retain culture killers, even if they are top performers. This is such a tough lesson to learn, but it liberates a company and often improves overall company performance.

Culture should be cultivated, constantly communicated and used when making decisions. At Sureswipe, we often talk about what it takes to win and have simplified winning into three key elements: A simple, yet inspirational vision; the right culture; and a clear and focused strategy. The first and third elements can be copied from organisation to organisation. Culture on the other hand is unique to every business and can be a great influencer in its success.

Catch phrases on the wall are not the definition of culture

A strong culture is purposeful and evolving. It’s what makes a company great, but also exposes its weakness. No company is perfect and it’s important to acknowledge the good and the bad. Without it, we cannot ensure that we are protecting and building on the good and reducing or eradicating the bad.

Mistakes happen. That’s okay. But we are very purposeful about how mistakes are handled. Culturally we’re allergic to things being covered up or deflected and have had great learning moments as individuals and as an organisation when bad news travels fast. It’s liberating to ‘tell it like it is’ and almost always, with a few more minds on the problem at hand, things can be rectified with minimal impact.

Related: Starbucks Coffee Is All About Culture… For A Reason

Culture should be built on values that resonate with you and that you want to excel at. In our case, some are lived daily and others are aspirational in that we’re still striving for them. In each case we genuinely believe in them and encourage each other to keep living them. This increases the level of trust within the team, as there is consistency in how people are treated and how we get things done.

We are always inspired when, after sitting in our reception area, nine out of ten visitors will comment on the friendliness of staff. We hear their remarks about how friendly the Sureswipe team is or a potential candidate will talk about the high level of energy and positivity they experience throughout the interview process.

These are indicators that our culture is alive and well. It’s these components of our culture — friendliness, helpfulness and positivity — that cascade into how we do business and how we treat our customers and people in general. Being able to describe your culture and support it with real life examples is a great way to communicate and promote the type of behaviour that is important and recognised within the organisation.

Culture doesn’t just happen

We are fortunate that culture has always been important to us, even if it wasn’t clearly defined in our early days. As we grew it became important to be more purposeful in the evolution of our culture. About four years ago, the senior leadership team and nominated cultural or values icons were mandated to relook all things cultural.

A facilitator said to us, “You really love it when people take the initiative, and get very frustrated when they don’t.” That accurate insight became core to our values. We love to see people proactively solve problems, take responsibility for their own growth, initiate spontaneous events, change their tactics or implement new ideas. It energises us and aligns to the way we do business.

We celebrate growth and love to see our staff getting promoted due to their hard work and perseverance. We recently had one of our earliest technicians get promoted to the Regional Manager of Limpopo. It was one of the best moments of 2018.

Be purposeful with culture, describe it, communicate it and use it in all aspects of business. Culture should change. Don’t allow phrases like ‘this is not how we do things,’ or, ‘the culture here is changing,’ to stifle the growth and development of your culture. When done correctly change is a good thing. Culture is driven from the top but at the end of the day it’s a company-wide initiative. Design it together with team members from different parts of the organisation to get the most from it. And then make sure everyone lives and breathes it.

Cost Cutting

The best ROI is achieved when you stop wasting money.

Peter Drucker once said that businesses have two main functions — marketing and innovation — that produce results. “All the rest are costs.”

If you agree, that means that the average business has a lot of fat to trim. Obviously you can go overboard trying to cut costs too. My philosophy has been to look at some of the general areas where you can add some efficiency but not at the expense of impairing your most valuable resource — your focus.

The following cost-cutting measures will do that. Think of these as adding value to your company, whether it’s time, creativity or a closer connection to your consumers.

Related: Wise Words From wiGroup On Building A “Wow” Company Culture

Uncover inefficiencies in your process

This is where I begin. In fact, it was analysing the inefficiencies of legal communication and knowledge sharing that led me to create Foxwordy, the digital collaboration platform for lawyers. I noticed that attorneys in our clients’ legal departments were drafting new documents from scratch when they could pool their knowledge and save time by using language that a trusted colleague had employed in a similar document. Business is all about process. When you create a new process, or enhance an existing process, you will drive cost efficiency.

Refine your process, then automate

If existing processes are lacking, it is time to create process. If you have processes, but they are not driving efficiency, it’s time to redefine your process. Either way, a key second step is refining processes that are needed in your business. Only then can you go to automation, since automating without a process will result in chaos — and won’t save time or money. Similarly, automating a poor process is not going to give you the cost-saving results you are looking for.

Thanks to the Cloud, there are very accessible means of automating manual processes. For instance, you can automate bookkeeping functions with FreshBooks and use chatbots to interface with clients — for very basic information. If you’re a retailer, a chatbot on your site can explain your return policy or address other frequently asked questions. Automating such processes allows you to spend more time focusing on clients and customers. Technology alone isn’t a panacea for all business functions, but if you find something you’re doing manually that can be automated, take a look and consider how much time and process definition automation would save you.

Rethink your outreach

Marketing and outreach are usually big and important challenges for an organisation. In my experience, there are two main components to successful marketing — knowing your customers and using the most effective media to spread your message. For the first part, I recommend polling. There are various online survey services that offer an instant read on what your customers are thinking. You may think business is humming along, but a survey could reveal that while consumers like your product, a few tweaks would make it even better.

For the second part — marketing messaging — once you have a firm idea of your marketing messaging, Facebook is a great vehicle for outreach. The ability to granularly target customers and create Lookalike audiences (from around 1 000 consumers) can help grow your business.

Related: Take Responsibility For Your Company’s Culture To Boost Productivity

Scrutinise your spend history

There are tools that can help you assess spend history and find cost-cutting opportunities. For example, you might be able to take advantage of rewards or loyalty programmes to reduce common business expenses, like travel, or consolidate vendors for a similar function. If you have a long-standing relationship with a vendor, negotiate better pricing.

The most important elements to keep in mind are resources that make your company special. Your company may be built on one person’s reputation and expertise. Guard against tarnishing that reputation with inappropriate messaging in advertising or social media. If your company’s special sauce is intellectual property, protect that too. But everything else — ranging from physical property to salary and benefits — are costs and should be considered negotiable. — Monica Zent

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