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Lessons Learnt

For Vusi Thembekwayo Obsession Is Crucial To Success

Entrepreneur and business speaker Vusi Thembekwayo is probably best known as a dragon on the local version of Dragons’ Den, but his sphere of influence extends well beyond that. He has become a sought-after global speaker who inspires thousands of people every year with his keen insights.

GG van Rooyen



Too many young entrepreneurs are over-eager

They stumble on an idea and try to get going as quickly as possible. They start with A and jump directly to Z, which harms their chances of success. A great idea does not guarantee success. You need to develop that idea carefully and systematically.

Passion is not enough if you want to be successful

Just about everyone has passion — passion is standard. You can bet that all your competitors are just as passionate as you are. What does this mean? It means that passion has become boring.

It’s no longer a meaningful differentiator. If you want to be successful, you need to be utterly obsessed. You need to reply to customer queries after 5pm on a Friday.

You need to cringe when someone tweets about a bad customer experience. You must always be switched on — you need to be present and relevant at all times.

Related: How Vusi Thembekwayo Keeps His Business Growing

Being a business person is not the same thing as being an entrepreneur

Firstly, an entrepreneur has a higher tolerance for risk. A business person typically wants decent returns at moderate risk. An entrepreneur plays for high stakes — big risk and big reward.

Secondly, a business person obviously wants to grow a business, but they also want to remain comfortable and secure. An entrepreneur wants to scale — he or she wants stratospheric growth, which again comes down to high risk and high reward.


Emotional intelligence is incredibly important if you want to be a successful entrepreneur

You need to be able to take a very honest and critical look at yourself and acknowledge what your shortcomings are. This is the only way you can grow and self-correct. At the same time, though, you can’t be negative or pessimistic.

You need a certain optimism and a strong drive to succeed. People will tell you that what you’re trying to do is impossible. You need the grit to keep going in the face of that.

My dad was a huge inspiration to me

He was a guy who saw an opportunity and took it. He was an electronics salesman who regularly travelled to Limpopo.

When he realised that the vegetables there were much larger and looked healthier than the ones on offer in Johannesburg, he started bringing back as much as he could and selling it locally.

Everything was usually gone within 20 minutes of him getting back. It was a great lesson in being able to spot an opportunity.

Related: Vusi Thembekwayo on The Art of Pursuing Crazy Ideas And Turning Them Into Profit Machines

Having a business plan doesn’t make you an entrepreneur

Being able to create an impressive business plan is obviously a useful skill, but you’re not an entrepreneur until you actually take the plunge. You need to start.

You need to have clients who are paying you money in exchange for a service or product you’re providing. It’s not (just) about the website, company name and logo. You need to be doing business.

To me, being an entrepreneur means disrupting

You’re not a true entrepreneur unless you’re disrupting an industry and changing things in a fundamental way. Some people see a great opportunity, and they take it.

There’s nothing wrong with that — they’re adding value — but that makes you more of an opportunist or survivalist.

Entrepreneurs think big and change the status quo. 

A great business plan needs to answer three things

It needs to explain who your customers are, why they need what you’re selling, and why they need to buy that from you. This sounds simple, but it’s not. It requires a lot of research and planning.

It also requires that you speak to funders, suppliers, prospective customers and even competitors. It’s an invaluable process, since it will provide you with a realistic view of your prospects.

Related: Vusi Thembekwayo On How To Be A Jugger-niche

Great entrepreneurs often come in pairs

There are very few people out there who possess all the traits and skills necessary to be a successful entrepreneur. For this reason, it helps to be in partnership with someone who can balance you out and provide the skills that you lack.

GG van Rooyen is the deputy editor for Entrepreneur Magazine South Africa. Follow him on Twitter.


Lessons Learnt

How To Build A Billion-Dollar Brand

Being an entrepreneur is one of the most difficult tasks you can take on.

Lewis Howes




Being an entrepreneur is one of the most difficult tasks you can take on. In fact, some people find it soul crushing if not done right. When done properly though, it can be the greatest thing you can do in your life.

Starting as an entrepreneur means knowing what you really want to do, what your passion is and how to deliver that to consumers. It’s not about pushing it on them but listening and seeing how you can serve them.

Most entrepreneurs stop as soon as they hit success and sell off their company, but not all of them. On this episode, we are joined by Michael Mente, who has been a massively successful entrepreneur since 2003 when he helped create the incredibly popular clothing company: Revolve.

Michael Mente dropped out of an entrepreneur program at the University of Southern California to become an entrepreneur by profession. He’s Currently the CEO and co-founder of Revolve and is set to bring in $400 million in sales this year. His company is considered the one-stop shop for clothing items designed by some of the hottest emerging designers.

Over the years, Michael began developing organic relationships with bloggers to represent the brand on a more realistic level. To do so, Revolve regularly holds trips for influencers to gather, relax and recreate the lifestyle of an ideal Revolve customer.

Related: How DJ Dimplez Built His Brand And Business From A Passion

Michael saw a gap between affordable and high end items, which provided grounds for him to create an online shopping experience that falls in the middle. Supporting up-and-coming designers and digital influencers has become the core of Revolve’s growth and they decided to expand their digital offerings by launching a sister company, Forward, in 2008. Since then, Forward has grown to become a fashion powerhouse and go-to place for premier luxury fashion.

I loved Michael’s humble wisdom about what it has taken to create this kind of success in such a competitive industry.

Discover all of that and much more, on Episode 583.

This article was originally posted here on

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Lessons Learnt

What Top Venture Capitalists Are Looking For In Your Start-Up

Keet van Zyl, one of South Africa’s top Venture Capital investors unpacks what he looks for in a start-up, what your pitch deck should include, and the red flags that investors walk away from. Would your start-up make the cut?

Nadine Todd



keet van zyl

Vital Stats

  • Player: Keet van Zyl
  • Company: Knife Capital
  • Claim to fame: Keet is a Venture Catalyst with extensive high-growth investment experience. In 2010 he co-founded growth equity fund manager Knife Capital.
  • What they do: Knife Capital is an independent growth equity investment firm focusing on innovation-driven ventures with proven traction. By leveraging knowledge, networks and funding, Knife Capital aims to accelerate the international expansion of entrepreneurial businesses that achieved a product/market fit in a beachhead market. They have offices in Cape Town and London and invest via a consortium of funding partnerships, including SARS section 12J Venture Capital Company: KNF Ventures and Draper-Gain Investments.
  • Visit:

Why would you choose to back Gazelles over Unicorns, and what does this investment strategy mean for start-ups looking for investment in South Africa?

Unicorns are start-ups (sometimes without an established performance record), valued at $1 billion or more, normally pre-public listing (IPO).

Gazelles are young post-commercialisation phase businesses that are able to scale and maintain a high revenue growth rate off a decent base over a prolonged period. In the US, this is usually well in excess of 20% year-on-year for a period of three to four years or more, starting from a revenue base of at least $1 million. My view is that in South Africa this range should be a sustainable year-on-year growth rate of 30%+ for three years or more off a revenue base of at least R5 million.

Related: Is Venture Capital Right For You?

If I could know for sure that a start-up was going to turn into a Unicorn, I would obviously choose to back it over a Gazelle. But that is just the thing: The risk/return ratio of chasing mythical African Unicorns with a very low probability of actually achieving Unicorn status is not necessarily a viable investment strategy. There are enough entrepreneurs out there who are building sustainable high-growth businesses requiring opportunity funding to accelerate growth through access to knowledge and market access networks.

Many South African start-up investors require businesses to have proven traction to de-risk investments to some extent (and many of those who don’t, do so after gaining a few battle-scars). Start-ups looking for investment should first bootstrap to some extent or get enough funding from the so-called ‘three Fs’ (friends, family and fools) to gain some momentum in one or more key traction verticals before approaching the more formal early-stage investors.

As an investor, do profitable businesses that solve real, meaningful problems attract your interest? Why?

Absolutely — profitable businesses that solve real, meaningful problems attract our interest for investment as long as they are still in their growth phase (as opposed to maturity/ harvesting phase). At the core of any successful start-up lies a good product/service and a large addressable market for that product/service. This enables a start-up to grow or scale and become sustainable. Businesses that solve real, meaningful problems have a better chance of aggressively penetrating their identified target market and profitability is a great traction milestone. Too many start-ups focus on building a solution looking for a problem to solve — instead of the other way around.

What separates a good pitch from a great pitch?

I’ve seen thousands of start-up pitches through the years, and unfortunately most of them miss the mark by a long way. The better ones contain all the key components of a pitch, but the really great ones tell a brief but engaging story that follows a ‘Hearts — Minds — Wallets’ narrative in a true authentic way.

This includes first appealing to the ‘hearts’ of potential investors by taking them through a journey to get them excited about the opportunity. Then the entrepreneur has to augment the story with facts and a solid business case to win their ‘minds’, concluding with a clear ‘ask’ of the funding requirements and how this investment could positively affect their ‘wallets’.

How can an entrepreneur determine whether their business is funding ready or not?

Venture capital should not be the go-to funding choice for everyone starting a business. It is an inspirational metaphor at the bleeding edge of entrepreneurship. There are many other credible funding mechanisms out there across the debt/equity spectrum, and entrepreneurs should assess the criteria based on where they are in their business growth cycle, and then gauge their funding readiness.

A venture backable business has a high growth trajectory of at least 30% to 40% year-on-year for the foreseeable future with a clear exit strategy for investors to realise returns of at least five to ten times the money invested (in South Africa this is most likely a trade sale to a large strategic investor that can scale the product, intellectual property or team by utilising its already established distribution channels).

Entrepreneurs have to ask themselves whether their growth goals can be achieved without venture funding — in which case bootstrapping is the way to go. And lastly whether the current founding team can embrace trading ownership (and thereby some element of control) in the business for a financial partner.

In order to facilitate the funding process, it is advisable for entrepreneurs to always have the following elements at hand: A one-page teaser document containing a summary of the business and funding requirements; and a business pitch deck, with a detailed financial model and a virtual data room containing key business documentation for investor scrutiny. (See table)


Related: The Truth About Venture Capital Funding

What do so many start-ups not understand about funding?

The largest deal origination sources of start-up funding in South Africa come through warm referrals. It is simply not good enough to find the email address of a venture capitalist and send through a cold email expecting a positive outcome. Study the investment mandates of potential funders, build an investor universe of preferred partners and do some homework to figure out a way to get referred.

And then: The 8020 principle is as alive in entrepreneurship today as it was in Pareto’s pea garden. 20% of start-ups have 80% of the disruptive solutions and will receive 80% of the funding. One only has to watch one episode of Idols to realise that many people have an inflated sense of their own abilities. There is a very fine line between a tenacious entrepreneur who does not take no for an answer where success is inevitable despite the setbacks, and a lost cause. Start-up entrepreneurs need to figure out on which end of this spectrum they are.

Lastly: Like it or not, at some level all roads lead to the assumptions behind your financial model. We’ve heard it all from the ever-present ‘these projections are conservative’ to ‘real life won’t mimic excel anyway so what’s the point of building a model?’… Build a model! And make it granular. We know there will be pivots, delays, underestimation of costs, corporates who pay late, and so on. But we need to agree on the basic set of metrics that reflect the commercial DNA of the business at this point in time.

Do you believe most businesses can be bootstrapped?

Yes and no — to some extent and at certain stages of the business. The one thing that start-ups who believe in themselves must jealously guard is the management team’s equity ownership in the business. Risk funding will generally result in the start-up founders having to share this equity with outside parties. The more one can bootstrap while increasing value, the better in the long run for the founders — but not to the detriment of the business.

What is the role of bootstrapping versus funding in a vibrant market?

Bootstrapping is a viable option for most lifestyle businesses where growth is slower, but a start-up is a high growth potential company in search of a repeatable and scalable business model. If the business solves a real, meaningful problem and the business model is scalable, it’s a question of time before competitors establish themselves in the market. This means that the window of opportunity for growth and market penetration is closing, and while bootstrapping could be ideal, by the time the start-up gets to ‘Point B’ — the goalposts may have moved. Funding in a vibrant market can accelerate growth and ensure that windows of opportunity are not missed.

Related: How To Get Venture Capital

What red flags immediately warn you off investment opportunities/start-ups?

My number one red flag is a culture clash. Either between us as investors and the entrepreneurs, or subtle politics within the entrepreneurial team. We’ve learnt the hard way that the one thing that you can’t fix with money is a toxic corporate culture. Most other fundamental business gaps can be closed with enough investment. Knife Capital has an internal [subjective] measure for assessing corporate culture in companies called the ‘Speed of Climbing Stairs Index’. The theory is that there is a direct correlation between staff morale/corporate culture, and the speed at which employees will climb a proverbial staircase at the office. If it’s not fast enough, we will not invest.

Other red flags include questionable ethics, lack of product/market fit, cash flow management issues and entrepreneurs betting on a product as opposed to building a multi-product sustainable business.

What specifically do you look for in your investments?

  • A Solid Investment Case: This comprises a good product/ service with a competitive advantage; a large addressable market for that product, a strong management team, a scalable business model, funding to accelerate growth and an achievable realisation strategy.
  • Awesome People: Start-up investment is a long journey to success and we feel that we may as well embark on that journey with amazing people.
  • Strong Culture: The company culture needs to be solid in order to celebrate the successes as well as survive the setbacks.
  • Execution Capabilities: The value of an idea without execution capabilities is zero. So we look for the ability to execute.
  • Proven Traction: There needs to be some element of momentum that can be demonstrated or quantified.

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Lessons Learnt

How Robert Brown Achieved Next Level Growth And Long-Term Success

It’s not often that an individual manages to bootstrap a business, substantially grow it over two decades, and then successfully negotiate an acquisition by an overseas company. DRS CEO Robert Brown managed exactly this — so successfully, in fact, that he is now also the CEO of Nasdaq-listed company, Cognosec.

Nadine Todd




Vital Stats

  • Player: Robert Brown
  • Position: CEO and founder
  • Company: DRS (Dynamic Recovery Services)
  • Est: 1997
  • About: DRS is an ICT company that specialises in information security, IT risk management and IT governance services and solutions. The company was launched more than two decades ago with just R2 000, but today counts many listed companies amongst its clients. It was acquired a few years ago by Swedish company Cognosec AB. In January 2016, Robert Brown was appointed as CEO of Cognosec.
  • Visit:

When it comes to bootstrapping a business how important is cashflow? What role does it play?

Cashflow is everything. If you want to be successful, you need to know exactly what’s going on in your business’s bank account.

  • How much is coming in?
  • How much is going out?
  • Who owes you money?
  • Who do you owe?
  • When will they pay?
  • When do you need to pay?

These questions are all crucial. Many people see money coming into a bank account and assume that the business is profitable. Of course, this is not the case. Only when more is coming in than is going out is the business actually profitable. Unfortunately, if you want to know what is really going on in your business, you need to pay attention to the paperwork. Many entrepreneurs hate paperwork and are pretty bad at it, but it can’t be ignored.

You have to sweat the details. You can bring on a bookkeeper or accountant, but that doesn’t absolve you from all financial responsibility. As the founder or CEO, you should have detailed knowledge of the company’s financial situation at all times.

Related: 8 Valuable And Inspirational Web Series You Should Check Out

Where does budgeting feature in this?

Budgeting is very important. You need to create a detailed budget. However, the budget is useless if it doesn’t reflect reality. Don’t exaggerate income and minimise expenses. Entrepreneurs are naturally optimistic people, but this is one instance in which a serious dose of reality is very useful. In fact, don’t just be realistic — assume that a disaster will hit. Create a ‘worst case’ scenario.

As the saying goes: Hope for the best, but prepare for the worst.

What would you identify as one of the DRS’ key inflection points?

Probably when the company passed that 50-employee threshold. In my experience, once a business grows beyond 50 people, things change fundamentally. Systems and processes that worked well until then, suddenly start breaking down.

So, once your business reaches that size, I think you need to be willing to reevaluate the basic structure of the organisation. Chances are, some big things will need to change. When the business is growing quickly, it’s easy to blow past this point without giving it much thought, but you’ll end up paying for it down the line. Once again, sweat the details. The earlier you start implementing the necessary systems and processes, the less painful the experience will be.

How did you manage the growth of DRS? How did you know that the time was right to enter that next cycle of growth?

In my opinion, you should find the work, and then find the people needed to do that work. In other words, you don’t want to be over capacity. If you do this, you run the risk of spending more than you’re making. Instead, go out there, find work, and then expand.

Don’t expand and then hope that you’ll be able to find work to keep everyone busy. Also, landing a couple of good long-term contracts can give you the breathing room needed to grow.

If you know that some steady money will be coming in over the next couple of years, you have more freedom to grow.

Related: Which Of These 7 Personality Traits Do You Share With The World’s Richest People?

How do you minimise risk when growing a company? How do you set it up for long-term success?

Never have one product and never have one customer. Too many companies become over reliant on a single product or a single large client. That’s incredibly risky. Instead, you want multiple revenue streams. You want to sell multiple products to lots of clients.

There are plenty of examples in history of companies that built an empire on a single piece of technology, and when that technology became obsolete, these companies disappeared. Similarly, young companies sometimes land a huge contract that becomes the engine for massive growth. When that contract suddenly disappears, the company folds. If you want to create a company that thrives in the long term, don’t put all your eggs in one basket.

DRS became a Cognosec AB subsidiary a few years ago. What made you decide to sell?

If you want your company to grow and prosper beyond you, the founder, you need to be willing to accept change. The last thing you want is to remain central to the success of the company decades after the launch. You need to think about your exit, even if you don’t plan on leaving the company in the near future.

Even if you don’t intend to exit at all, you still don’t want to be responsible for every decision.

That’s not how you create a large and healthy organisation. Start putting the people and structures in place that will allow you to exit as soon as you can. For me, Cognosec AB made a lot of sense. It was a company that I believed would increase the options available to DRS and its people. By joining an international organisation, we really went to the next level.

Related: 15 Great TED Talks For Sparking Creativity (Infographic)

What is the key to long-term success?

It’s the people. A lot of business leaders say this, of course, but that just proves how true it is. Without great people, you cannot build a great business. You might enjoy some short-term success, but the business won’t last for decades. When your business grows, especially if it’s growing quickly, it’s all too easy to hire the wrong people or to lose control of the culture. When you do this, the business suffers.

One of our greatest achievements as a company, and what I believe has been key to our success, has been our ability to help individuals grow and prosper. We have many long-time employees who have worked themselves up from incredibly junior positions into leadership roles. That’s given us a depth of knowledge and a feeling of family that have been instrumental in our success.

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