Odette Potter’s dream is to help others achieve theirs. The enthusiastic manager of the Bandwidth Barn, a business accelerator which provides support and infrastructure to small and medium sized ICT businesses in the Western Cape, joined the organisation in 2002.
She brought with her an in-depth knowledge of financial management. “Working with entrepreneurs and watching them grow has been the most fulfilling experience. It is amazing to be surrounded by people who have the courage to start their own businesses,” says Potter.
The Barn tackles the E-Myth – the fatal assumption that people who understand the technical work of a business must also inherently know how to run a business that does that kind of work. Sooner or later they realise that just as they invested time and energy in learning their trade or profession, they also need to acquire business development skills and learn how to effectively manage and grow a business.
“One of the main objectives of the Bandwidth Barn is to help entrepreneurs overcome these challenges,” Potter says. “We provide the best possible environment to enable opportunities for success and because we face the same challenges and stresses as any other business, we are able to understand the worries faced by our tenants.”
The Barn, a subsidiary of the non-profit organisation Cape Information Technology Initiative, started in 2000. Today, it is recognised as the most successful business accelerator of its kind in South Africa. The organisation supports companies by reducing the cost of overhead services through its shared office environment.
It also offers business development programmes to equip tenants with all the skills required to move from start-up to profit-generating stable companies.When the Barn opened its doors, a 64k Diginet line cost in the region of R6 000 to R7 000 per month. The costs were prohibitive and meant that start-ups had little or no access to technology, a factor which inhibits growth in today’s Internet economy. The Barn was launched in response to the need for affordable bandwidth and started out with 17 tenants sharing a 192k line.
“We received a grant of R1 million once only,” says Potter. “Because of that we have had to be creative. As a non-profit organisation, we have had a break-even philosophy from day one. What it costs us to run the Barn is what we cost out.”From its humble beginnings, the Barn’s turnover in 2006 was R71 million and its tenants included companies like Obsidian, IT Web Informatica and online success story Bizcommunity.
In 2002, global IT company Verizon became its chief corporate sponsor. Its achievements are most likely attributable to the fact that The Barn is unique in South Africa. In addition to 24/7 connectivity, it also gives entrepreneurs quality office space and professional reception services and presentation facilities.
All of these vital services are reasonably priced as a result of economies of scale. Potter notes that a fixed address also gives the Barn’s tenants the added advantage of stability, which means their own clients can feel secure about contracting with them. The Barn’s mentorship programme pairs new business owners with experienced business coaches who have done it all before.
“If one of our tenants is keen on taking their business global, we team them up with someone who has had the experience of doing that successfully,” saysPotter. But one of the Barn’s most important offerings is its entrepreneurially supportive culture.
Entrepreneurs can get lonely and afraid, something that the Barn addresses by providing a networking environment that gives tenants access to a vibrant community of fellow entrepreneurs. “It’s a place for like-minded people at different stages of their business,” says Potter.
“It provides a natural space for information sharing and support.”To become part of the Barn, a business must be in the ICT sector, be able to pay the bills and submit a business plan that includes current projects. The Barn has interventions aimed at different stages of a business, from enabling start-up and establishing stability to facilitating growth. Potter measures success by monitoring sustainability. “64% of our companies are still in business after five years. Given that 80% of businesses fail in their first year and many more drop off in their third, our successes are remarkable.” Contact: +27 21 409 7000; www.bwb.org.za
Watch List: 50 Top SA Small Businesses To Watch
Keep your finger on the pulse of the start-up space by using our comprehensive list of SA small business to watch.
Entrepreneurship in South Africa is at an all-time high. According to Global Entrepreneurship Monitor (GEM), total early-stage entrepreneurial activity has increased by 4.1% to 11% in 2017/2018. This means numerous new, exciting and promising small businesses are launching and growing.
To ensure you know who the innovative trailblazers are in the start-up and small business space, here are 50 of South Africa’s top establishing companies to watch, in no particular order:
- Livestock Wealth
- The Lazy Makoti
- Mimi Women
- AfriTorch Digital
- Akili Labs
- Native Décor
- Quality Solutions
- EM Guidance
- Kahvé Road
- HSE Matters
- VA Virtual Assistant
- Famram Solutions and Famram Foundation
- BioTech Africa
- Brand LAIKI
- Plus Fab
- Lenoma Legal
- Benji + Moon
- Brett Naicker Wines
- Legal Legends
- The Power Woman Project
- Aviro Health
- AnaStellar Brands
- Data Innovator
- Oolala Collection Club
- Empty Trips
- Vula Mobile
- The Katy Valentine Collection
- Pimp my Book
- ART Technologies and ART Call Management
- The Sun Exchange
How 28-Year Old Entrepreneur Adam Fine Is Leveraging The Global Phenomenon Of Five-A-Side Football
Adam Fine of Fives Futbol discusses how he leverage a global phenomenon and the value of strategic partnerships in business.
- Player: Adam Fine
- Company: Fives Futbol
- Est: 2011
- Visit: www.fivesfutbol.co.za
Nothing about Adam Fine is by-the-book. The 28-year-old entrepreneur describes himself as a slightly big child. He’s the CEO of one of the most exciting start-ups in South Africa, having leveraged the global phenomenon of five-a-side football to start a business that has grown almost as fast as the game itself. Not bad for a venture that was launched with the princely sum of R85 000 — Fine’s life savings at the time.
He started it in 2011, with a strong focus on corporate social investment and making a positive social impact. It was by forming strategic partnerships that Adam really managed to grow Fives Futbol. He’s opened pitches in prime locations that serve both the school and corporate markets, while still being accessible for social impact interventions in local communities.
Pivoting at the right time is key to growth
In the last 18 months, Fives Futbol has trebled in size, and achieved some amazing milestones — it now employs 50 full-time staff, and 80 part-timers. It’s one of the factors that drives Adam, as many of his employees support up to eight family members. It’s now also represented in four provinces and 15 locations around the country. By September, there will be 18.
Quick growth means you have to be able to pivot quickly when things do not go according to plan, and mostly they don’t, Adam says. “If things are not working you should be able to ‘pivot’, to shift your focus. And do it fast. It’s not a sign that things have gone wrong by any means, on the contrary, it means you have the insight to recognise that there is a problem with the assumptions on which you have built your business model. The decision to pivot is a big one, and not something to be taken lightly. It requires you to take a hard look at your reallocation of resources, and to do it with an open mind.”
In Adam’s case, construction delays, councils taking their time to approve, or having to put money into rolling out sites as opposed to marketing, means the promotion of a new site will slow down, for example, because the business does not yet have a large marketing budget.
“When we run behind on the construction of a new site, R40 000 can suddenly become R100 000 — but here’s the thing: If a deal comes along that will probably harm your business in the short-term but enable significant long-term growth, sometimes you have to juggle what you have so you can make it work.”
The Lesson: Choose your investors carefully
Fine says he’s lucky to have a solid group of investors that he has cultivated over six years. “Their input is invaluable. They’ll say, ‘slow down’ or ‘have you thought of this?’, ‘have you factored in that?’ The ability to develop a good relationship with our investors has had a significant impact on the success of the company. Over and above money, they provide wisdom, guidance and connections.”
His relationship with his investors is key. While many entrepreneurs make it just about the money, Adam understood something else — he has a pretty cool brand with a great cause behind it. So, while investors are asked for money all the time, he was able to offer something more than just a business idea — alignment. He generated enthusiasm for the ‘why,’ behind the business. Like most of us, it makes investors happy to know that they are helping to make a positive difference.
And while it’s easy to bandy about the word ‘partnership’, Adam has worked hard to make that a reality. He set out to find like-minded people who are passionate about the business and the cause, which is why they are able to serve as great resources for advice and insight.
Related: Richard Branson’s ABCs Of Business
“The best way to ensure that you and your investors have a valuable and lengthy partnership is to make sure that everyone is aligned on the vision.”
This includes Adam’s team. The internal culture of an organisation is vital to its strength and growth. “Without our team we don’t have a business for investors to support — our people are critical to our success. They’re the executors of the vision at the end of the day.”
The Lesson: The value of strategic partnerships
Much of the growth of Fives Futbol has been fuelled by finding the right sponsorship partners in key industries. To overcome the challenge of a limited marketing budget, Adam has secured sponsorships with big brands like Adidas, Total Sports, Debonairs, and Klipdrift, allowing Fives Futbol to use their access to communities as a marketing platform to derive income as well as scale. And it works both ways.
“Because we have a national footprint and a team of people, we run activations for our partners, which also provides us with an ancillary revenue stream,” he says. “Knowing how to join forces with other businesses has been a key factor in making the business successful. Our strategic partners have enabled the business to leverage their brand to give us more exposure. When it works well, a strategic partnership can be just what you need to speed up the growth of your business.”
Watch List: 15 SA eCommerce Entrepreneurs Who Have Built Successful Online Businesses
The advent and advancement of the online marketplace has led these entrepreneurs to successfully build and grow their ecommerce empires.
South Africa’s ecommerce market is worth R10 billion per year. By 2021, the number of online shoppers is expected to have reached 24.79 million.
“Our recent research on SA shows people are browsing three hours or more on their mobile phones and 25% shop online. They trust local brands,” says Geraldine Mitchley, Visa senior director for digital solutions in sub-Sahara Africa.
These entrepreneurs have cashed in on ecommerce and launched successful online stores that have either established their dominance in the market, or are taking the e-tailing world by storm.
Here’s how these 15 ecommerce capitalists are making money using the Internet:
Start-up Industry Specific2 months ago
How Do I Start A Transport Or Logistics Business?
Snapshots9 years ago
Habari Media: Adrian Hewlett
Snapshots2 months ago
27 Of The Richest People In South Africa
Types of Businesses to Start2 months ago
11 Uniquely South African Business Ideas
Support for Women Entrepreneurs2 months ago
10 Successful SA Women Entrepreneurs’ Top Advice On Balancing Work And Family
Entrepreneur Profiles2 months ago
10 SA Entrepreneurs Who Built Their Businesses From Nothing
Types of Businesses to Start2 months ago
10 Business Ideas Ready To Launch!
Lessons Learnt2 months ago
6 Of The Most Profitable Small Businesses In South Africa