Like many consultancies and entrepreneurial businesses, Flamingo Moon began life as a ‘boot of a car’ operation, with Lizwe Nkala unable to afford an office and using his car as a mobile workplace.
Because he was essentially selling time and not a product, this was possible, but Nkala had big dreams, and being a mere seller of time was not one of them. “I had already been running my business for two years when I read an article that completely changed my perception of what it means to be successful,” he explains.
“The article highlighted the fact that there are two types of people in this world: buyers of time, and sellers of time. The buyers of time understand that there are only so many hours in a day, and in order to build an empire and achieve all their goals, they need more time.
The sellers of time take their time, package it in a particular offering or service, and then sell it. These are salaried employees. The buyers of time are the world’s great entrepreneurs.”
Up until this point, Nkala was nothing more than a seller of time. He had left his corporate position as head of strategic marketing at Old Mutual to become a strategy consultant and run his own business, but had ended up contracting his services to other larger consultancies anyway. He was still nothing more than a seller of time. But he wanted more.
Deciding to go solo
For Nkala, his entrepreneurial journey began while he was at Old Mutual. “Throughout ten years of corporate life I dreamt of owning my own business,” he says. “I actually used my job to role-play my future. I was passionate about strategy and I started coordinating internal brainstorming sessions, some of which weren’t even in my department.
“Everyone thought I just liked to volunteer, but really I was researching the way people interact with each other and how to get the most out of a strat session.”
By 2008 Nkala realised that he needed to make a choice. He could persevere and move his way up the ranks of Old Mutual, he could take his passion for strategy and consulting and approach one of the big five firms to join them, or he could leave to start his own venture. He chose the latter.
“The recession was just beginning and everyone knew the economy was about to contract, but I had read the biographies of all the great business leaders that inspire me, and they all had the same thing in common – not one of them built their businesses under perfect conditions. It was time to take a chance on myself.”
With three months’ income saved up, which he thought would be more than enough time to get on his feet, Nkala launched Flamingo Moon. “I had no idea what was in store for me. If I can offer other potential entrepreneurs one word of advice, it’s to cut back on all your expenses before you launch your own business.
I had a bond, car instalments and kids in a private school, and while I was earning a corporate salary it was all fine. This debt became extremely difficult to carry once I was living hand to mouth, just waiting for my next client.”
Bumps in the road
To make ends meet, Nkala began contracting to other firms. “I had a definite skill and I started making a name for myself, but as long as I was contracting for other firms, I wasn’t actually building my own business. I was a contracted employee.”
The problem was that contracting to other firms was the only way Nkala could operate at that point. “Cash flow issues weren’t my only problem,” he explains. “I had no infrastructure. When you work in a corporate environment you just take all the formal structures and processes for granted. There’s a system in place that works like clockwork.
“Suddenly I needed BEE certificates, admin documents and tax certifications, I needed to invoice clients, recon the work I had done, bills paid and money received, and chase clients for late payments – all things I hadn’t really taken into account and hadn’t made provision for.
I was so carried away with what I could do that I completely missed the fact that my admin capacity would seriously let me down.”
Working with larger firms meant all these things were taken care of. The problem was that Nkala had bigger plans for himself. He wanted Flamingo Moon to become a well-known name in the industry, and to do that he needed to stop operating from the boot of his car.
“Becoming a buyer of time requires a mind shift,” he says. The process was slow. Given the choice of paying his bond or registering his company, he chose the bond. He had no extra cash to invest in the company and so he continued consulting to other firms. But he wasn’t idle.
“Not everything can happen overnight. It took me two years to reach a point where I had systems in place and enough money reinvested in the business that I could rent office space and begin hiring employees. I needed to be patient. But I also needed to remain focused on that goal. Once I got my client base up and running I could have easily remained a consultant. But how was that different to my previous corporate employment, aside from perhaps a little bit more flexibility?”
Becoming an employer
“Buying time from others is an investment. You need to invest in a team and you need them to believe in your vision. I had intellectual capital; now I needed to find a way to really turn that into a business.” Step one was the acceptance that teams cost money, but that the investment would be worth it.
In order to go from small consultant to big consulting firm, Nkala knew he also needed to show the local business world the value of his offering.
“As a small firm with an entrepreneurial mindset we are incredibly flexible, which can be hugely valuable for our clients. We also have strong faith in our intellectual capital. Spending an additional two years, from 2008 to 2010, testing my acumen and adjusting my offering according to successes and the way clients reacted to my services, turned out to be a good thing.
“As entrepreneurs we tend to gnaw on our ideas like a dog would a bone, and the whole time we’re doing that, trying to perfect our business, we aren’t out there telling our potential clients about the value we have to offer them.
“This means when we’re finally ready to launch they know nothing about us, and we also haven’t actually tested our ideas and services in the open market. I realised that I had been out there testing my offering and adjusting it, so when I did officially launch Flamingo Moon in 2010, I was in a much stronger position than I had been in 2008.”
Today Flamingo Moon competes with the big five firms instead of contracting to them, and Nkala has just launched the Strategic Institute, which is the product of client interaction. “As we see where the gaps are, we need to shift our offerings.
This is the only way to grow,” he explains. “When something isn’t working, ditch it. But always, always pay attention to what the market wants and respond accordingly.”
From consumer to creator
One of the biggest lessons Lizwe Nkala needed to learn was the shift from a consumption mindset to one of creator. “At the beginning I operated on the basis of ‘If I earn this much, I can pay for that…’ I had bills to pay and not enough cash coming in to cover them.
“The problem was that as long as I continued to live hand to mouth, I couldn’t invest in the business. I couldn’t create my vision.” It was a difficult shift, but Nkala needed to actually reduce his take home pay even more so that he could formalise his work space and begin hiring a team.
“I paid my employees first and then myself, and concentrated on really showing potential clients the kind of value we offered. With a team and a formal structure behind me, I wasn’t just a consultant, I was a serious business, with a serious offering.”
27 Of The Richest People In South Africa
Here are 27 of South Africa’s richest people, but how did they achieve this level of wealth? Find out here.
Learn the secrets of SA’s most successful business people, here is the list of the 27 richest people in South Africa:
In a world with growing entrepreneurship success stories, victory is often measured in terms of money. The feat of achieving a place on this list is, however, years of hard work, determination and persistence. “One has to set high standards… I can never be happy with mediocre performance,” advises Patrice Motsepe.
From the individuals that made the 27 of the richest people in South Africa list, actual entrepreneurs and self-made business people dominate the list; while those who inherited their fortunes have gone on to do even bigger and better things with their wealth. Over the years, some have slipped off the list, while others continue to climb higher and higher each year.
- Elisabeth Bradley
- Sharon Wapnick
- Bridgette Radebe
- Irene Charnley
- Wendy Ackerman
- Paul Harris
- Wendy Appelbaum
- Mark Shuttleworth
- Desmond Sacco
- Giovanni Ravazzotti
- Markus Jooste
- Gus Attridge
- Gerrit Thomas Ferreira
- Cyril Ramaphosa
- Adrian Gore
- Raymond Ackerman
- Michiel Le Roux
- Lauritz Dippenaar
- Jannie Mouton
- Stephen Saad
- Patrice Motsepe
- Allan Gray
- Koos Bekker
- Ivan Glasenberg
- Christoffel Wiese
- Johann Rupert
- Nicky Oppenheimer
Watch List: 50 Top SA Black Entrepreneurs To Watch
South Africa needs more entrepreneurs to build businesses that can make a positive impact on the economy. These up-and-coming black entrepreneurs are showing how it can be done.
Early-stage South African entrepreneurial activity is at an all-time high of 11%, according to Global Entrepreneurship Monitor, and entrepreneurial intentions have also increased to 11.7%. With both activity and intentions growing significantly year-on-year, there are more businesses opening up around South Africa than ever before.
The increase in entrepreneurship has seen the rise of more black entrepreneurs across numerous sectors. From beauty brands to legal services and even tech start-ups, these are 50 top black entrepreneurs to watch:
- Joe Phalwane
- Nandi Dlepu
- Sonto Pooe
- Michel M. Katuta and Thabo Mphate
- Naledi Sibisi
- Reabetswe Ngwane
- Neo Lekgabo
- Vusani Ravele
- Lulo Rubushe
- Samke Mhlongo
- Sizwe Nzima
- Nicolas Bereng
- Lebo Mphela
- Monalisa Molefe
- Siya Kolisi
- Leah Molatseli
- Nhlanhla Dlamini
- Fhumulani Nemukula
- Itumeleng Mpatlanyana
- Nozipho Dube
- Sarinah Matema-Morgans
- Nneile Nkholise
- Mahadi Granier
- Shalton Mothwa
- Theo Mothoa-Frendo
- Bakani Ngulani
- Ndabenhle Junior Ngulube
- Sandra Mwiihangele
- Constance Mapule Bhebhe
- Ignatious Nkwinika, Mbulelo Mpofana, Shane Curran
- Karidas Tshintsholo
- Mutoda Mahamba and Gavin Waldeck
- Ntuthuko Shezi
- Botlhale Tshetlo
- Dineo Lioma, Loretta Magagula, Danisa Nkuna and Lindiwe Nkosi
- Neo Ratau
- Mpodumo Doubada
- Obakeng Moepya
- Ouma Tema
- Lucky Kgwadi
- Nyakallo Mokoena
- Sibongile Sambo
- Mogau Seshoene
- Sibongile Booi
- Khanya Mzongwana
- Nkazi Sokhulu and Tlalane Ntuli
- Nothando Moleketi
- Nthabiseng Ramaboa
- Lilian Muhammed
- Sunshine Shibambo
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
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- Empty Trips
- Vula Mobile
- The Katy Valentine Collection
- Pimp my Book
- ART Technologies and ART Call Management
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