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Zenzele Fitness’s Clever Tactics To Grow In Next To No Time

Tumi Phake has built Zenzele Fitness into a serious business relatively quickly, but it hasn’t been easy. The company’s quick growth has been the result of some very clever tactics.

GG van Rooyen

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Vital Stats

Tumi Phake always liked going to the gym. It was a place where he could relax and unwind. One day, while still working for a prominent South African bank, he started wondering about the small gym that the bank had on the premises.

Where had this equipment come from? Who was responsible for it? What if you could offer the same sort of experience you’d find at a large commercial gym to corporate employees? Turning this dream into reality has been the focus of Phake’s life for the last few years.

Related: Join The Fitness Revolution

Here are the lessons he’s learnt along the way.

1. Do Your Research

Phake had spotted an interesting opportunity to offer in-house gyms to companies, but he took his time pursuing it. Instead of rushing in, he first did his research.

“The company was officially launched in 2013, but I was working on the business way before then. In fact, it took a few years from conceiving the idea to starting the business. I made sure that I would be ready when I eventually launched,” says Phake.

Lesson:

Business strategy doesn’t start the day you open the doors to your business. If done correctly, it should start well in advance. Some careful research and development done ahead of launch can often save you a lot of time, money and hassle later on.

Sure, it’s tough to stay calm and bide your time when you’ve stumbled upon a great business idea, but it’s important to sometimes take a step back and critically assess if your idea is really viable. Be sure to speak to experts in the field and prospective customers.

2. Find The Right Partner

Early on in the creation of Zenzele Fitness, Phake realised that he needed a partner. Many entrepreneurs refuse to acknowledge this reality, even long after their businesses are up and running.

Phake was not under any illusions — he needed a partner who knew the industry well. As an outsider to the fitness industry, he wasn’t equipped to launch a fitness business on his own.

Phake approached someone he knew through his position at the bank — someone who was well established in the industry. Not only could this person provide valuable insight — but he could also leverage his contacts in the industry to smooth the way for Zenzele Fitness.

Lesson:

Great founders often come in pairs. Very few individuals have all the skills and knowledge needed to launch a business, which is why finding the right partner can often mean the difference between failure and success.

zenzele-fitness

3. Funding Begets Funding

Phake needed money to launch Zenzele Fitness. He needed to purchase expensive training equipment, which meant bootstrapping wasn’t an option. He was lucky enough to secure R5 million in funding from the Awethu Project, but this wasn’t enough.

The good news is that funding often begets funding. With each person who shows a willingness to invest in you, it becomes easier to get more funding.

After receiving the funding from the Awethu Project, Phake managed to get another R7 million in debt funding, thanks to that initial investment.

Lesson:

Accessing debt funding can be hard, especially if you don’t have many assets to be put up as collateral. Because of this, it’s a good idea to try to get some outside equity funding — even if it’s not the whole amount needed. This funding could be enough to secure a loan, which would help you avoid having to give away any extra equity.

Related: Healthy Body20 Franchise Leads To Happy Hearts

4. Proving ROI Through Data

In many ways, Zenzele Fitness enters a partnership with the corporates where its gyms are located. Most companies pay a portion of employees’ membership fees, and don’t charge Zenzele rent.

This is obviously a great position to be in, but it also means that clients will expect some sort of ROI. So how does one show that?

“It’s all about data,” says Phake. “Too often, South African companies go to clients with overseas data. This is not the way to do it. You can’t assume that overseas data is just as relevant here.”

Because of this, Phake is actively generating data that shows unequivocally that this sort of fitness initiative has a positive impact on business.

“Companies are definitely becoming aware of the fact that health and wellness in the workplace is important, but you still need to show some sort of ROI,” says Phake.

“For instance, we recently took 100 high-risk people and put them on a 12-week programme. By the end of it, we had managed to reduce serious risks by 30%. This is the sort of significant impact that companies are willing to invest in.”

Lesson:

‘Selling’ your offering is not enough. Your slick pitch needs to be backed up by some proper data. Don’t ask prospective clients to simply believe that you can improve their businesses — show them.

5. Reduce Your Risk

As with most businesses that are capital intensive, there is some risk in spending loads of money on equipment that might never be utilised. What if the gym didn’t attract workers? Or what if workers were slow to sign on?

“We reduce our risk in two ways,” says Phake. “Firstly, we try and sign on as many people as possible early on. We typically try to sign on enough people before the doors even open, to break even on a month-to-month basis. We also negotiate with clients and ask them to guarantee a certain level of monthly membership fees, especially during the early months.”

Lesson:

As the adage goes: Everything is negotiable. Enter into a real partnership with clients where risk is shared and mitigated.

Related: Free Sample Business Plans


Do This

If you have a B2B business — especially one that aims to attract corporate clients — it’s incredibly important to be able to prove the ROI on offer. Solid data can play a huge role in signing up new customers.

Lessons Learnt

(Podcast) ‘Bizarre Foods’ Andrew Zimmern: ‘I’m Addicted To The Hustle’

How this week’s ‘How Success Happens’ guest overcame personal struggles and built an empire.

Dan Bova

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I didn’t know what to expect when we scheduled an interview over breakfast with today’s guest Andrew Zimmern. As you may know, the chef, writer, restaurateur and TV personality made a name for himself traveling the world and eating some, well, bizarre foods on his hit travel/food show, Bizarre Foods.

Turns out our breakfast was pretty normal – we didn’t dig into a fresh plate of scrambled brains or anything – but the conversation was anything but typical.

Over the past couple of years, Zimmern has built a true empire around his name with books, TV shows, restaurants (including his new Twin Cities joint Lucky Cricket), and a production company, but as he very candidly told me, the road to success has not been easy. He has gone through a lot of personal pain on his journey, and he says it is a daily endeavour to keep himself moving on the right track.

As Zimmern explained, over the course of his life, he’s had problems with substance abuse, depression – even homelessness – and he was very open about sharing the lessons he’s learned along the way about coping and finding redemption. We also spoke about his dear friend, Anthony Bourdain, and about the struggles of feeling overwhelmed that most of us face.

Related: Gareth Cliff Shares His Tips For Starting Your Very Own Podcast

But don’t get me wrong, he’s really funny, too! There’s nothing “normal” about Andrew Zimmern. Hope you’ll enjoy our conversation, thanks for listening.

This article was originally posted here on Entrepreneur.com.

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Lessons Learnt

How BrightRock Is Disrupting The Insurance Industry With These 2 Pivotal Strategies

Developments in technology, and clear communication are positioning BrightRock to disrupt their industry and transform the consumer experience.

Monique Verduyn

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Vital Stats

  • Players: Sean Hanlon, Leopold Malan, Schalk Malan, Suzanne Stevens
  • Company: BrightRock
  • Est: 2011
  • Visit: www.brightrock.co.za

BrightRock was started around a dining room table in 2011 by four people with years of industry experience and — importantly — a diverse set of complementary skills.  They wanted to make changes to an industry with an age-old methodology by allowing customers to co-create a solution that precisely meets their individual needs, and adjusts as those needs change. Today, BrightRock is the fastest-growing insurer in the intermediated individual life risk market. It also provides underwriting management services to funeral parlour businesses and, more recently, has entered the group risk insurance market, offering its needs-matched approach to employees.

The founders of BrightRock, established in 2011, knew the life insurance industry all too well, and they found its methodology wanting. “Traditional life insurance lumps all the individual’s needs into one policy,” says CEO Schalk Malan.

“It’s a methodology that has been around for centuries. We started afresh and looked at how we could design life insurance based on individual requirements. Our cover is designed to exactly match each specific financial need. Because there is no waste, it’s more cost efficient and sustainable. And if circumstances change and our customer needs more cover, it’s easy to get it because needs-matched design enables the policy to change in line with changing needs.”

1. Embracing digital technology to provide needs-matched insurance

Suzanne Stevens, marketing executive director at BrightRock, points out that this type of innovation achieves efficiency (cost savings) and effectiveness (higher returns). “By harnessing digital technology, we have made our operations more efficient, and aggressively lowered costs by up to 30% for our customers. Every rand they spend with us works harder for them. That’s the benefit of a solution designed around the customer.”

BrightRock’s founders took a similar approach. ‘We ditched legacy thinking in favour of creating a product that is intuitive and easy to navigate. An enormous amount of time and effort went into writing and designing that system, and creating the optimal customer journey.”

Related: How BrightRock Is Rocking The (Industry) Boat In Only 5 Years Since Launch

Unlike clunky legacy systems, BrightRock’s platform is modularised, and was built according to the agile principle of rapid delivery cycles. The result is a technology stack with longevity, that is also flexible enough to be tweaked when needed.

“The advantage of the technology available today is that you can plug things in and pull them out as required,” says Suzanne. “That’s one of the enablers of a truly disruptive mindset. To step away from accepted norms and find new solutions requires curiosity and creativity, as well as a lot of courage to go up against large incumbents in the market. There is always resistance to new technology, although we are fortunate in this country to have one of the most innovative insurance sectors in the world.”

2. Effective communication is critical

These disruptors have set themselves above the rest through one surprisingly simple tactic —  effective communication. They agree that it simply doesn’t matter how world-changing your product or service is if you don’t communicate it to the right audience at the right time. New companies that fail to communicate their remarkable new development will quickly be pushed aside by other disruptors. Without a clear communication strategy that reaches the audience in the industry you’re trying to disrupt, you’ll set yourself up for failure. A key question to ask when you are developing your communication strategy is simply whether people understand what you do.

“Because the premise for our product was fundamentally different from anything on the market, communication and clear messaging were critical to convincing our clients to put their trust in us,” says Schalk.

“It was especially important to educate insurance advisors so they would understand what we were doing, why we were doing it, and how it was better than the other options available. That was key to disrupting the individual life market.”

Currently, BrightRock employs 380 staff, has experienced 40% year-on-year growth, and has an annualised premium income of more than R1,3 billion. The company has recently entered the group risk environment with a similar offering that addresses many of the same shortcomings of traditional group risk products. “The inefficiencies of the structuring of group products has meant that, to remain competitive, insurers have cut the benefits offered to employees, undermining their sense of financial security. Change is needed, and we believe our needs-matched philosophy positions us to change the group risk market too.”

‘We ditched legacy thinking in favour of creating a product that is intuitive and easy to navigate. An enormous amount of time and effort went into writing and designing that system, and creating the optimal customer journey.”

Unlike clunky legacy systems, the BrightRock’s platform is modularised, and was built according to the agile principle of rapid delivery cycles. The result is a technology stack with longevity, that is also flexible enough to be tweaked when needed.

Related: BrightRock’s 5 Entrepreneurial Tips For Start-ups

This iterative, modular approach typically begins with defining the strategy and programme plan upfront, delivering a core capability fast so it can provide benefits immediately, and then continuously improving with regular, incremental capability improvements to achieve the objectives of the strategy. It’s an approach that fosters closer collaboration between stakeholders, improved transparency, earlier delivery, greater allowance for change and more focus on the business outcomes.

“The advantage of the technology available today is that you can plug things in and pull them out as required,” says Suzanne. “That’s one of the enablers of a truly disruptive mindset. To step away from accepted norms and find new solutions requires curiosity and creativity, as well as a lot of courage to go up against large incumbents in the market. There is always resistance to new technology, although we are fortunate in this country to have one of the most innovative insurance sectors in the world.”

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Lessons Learnt

The 9 Obsessions You Need To Have To Become A Self-Made Millionaire

Here’s how to stay focused on your millionaire goals.

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The ones who succeed weren’t handed a golden ticket; it wasn’t chance that helped them cultivate their fortune. To reach millionaire status, you must be driven to reach your dreams. You must be obsessed in order to be successful.

These are the nine obsessions that give every self-made millionaire an edge in creating success and wealth.

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