Derrick Tshivhase grew up in Soweto in the turbulentapartheid years. He describes himself as someone who came from the “generationof stone throwers”. But fortune was on his side and his entrepreneurial talentswere recognised by Barlow Rand’s Small Business Advisory Service. With itssupport, Tshivhase built his business, a one-man show, into a sustainable andhealthy enterprise that is eager to compete with leading industry players. WhenTshivhase started LumaCon Air Conditioning he wanted one outcome – to be a topplayer in the provision of heating and air conditioning solutions. “I started LumaCon in 1986 and itstabilised four years later,” he says. “Up until 1994 it was almost impossibleto get government contracts, but I didn’t give up.” His focus at that time wasdirected at black professionals including lawyers and doctors, as well as blackretailers, while he waited for the political tide to turn in his direction. “Iattribute my success during those difficult times and up until today, to selfreliance, being totally self driven and refusing to give up no matter howdifficult things become.”
LumaCon has secured contracts includinga R13 million project for Modderbee Prison and one for Polokwane InternationalAirport worth R5 million. The company employs 30 full-time employees excludingspecialist sub-contractors. Like any start-up, it’s had its ups anddowns and Tshivhase had to face many obstacles along the way. But a strong mindand an even stronger will to succeed put him on the road to success. The most difficult hurdle he overcamein the business arena was his own complacency. “When things are going well youassume that they will always go well,” he says. “I was looking for a propertyin Limpopo when an estate agent showed me afarm which I fell in love with.” He took two years off, put his staff incontrol of LumaCon and tried his hand at farming. The company suffered withouthim at the helm and it took him two and a half years to get it back on trackagain.
Tshivhase describes himself as anindependent thinker and says he wants to keep it that way. True to form, heisn’t afraid to express his disappointment about the small business sectoreither. “South Africa has in the last 15years failed dismally to develop and sustain a vibrant small business sector,”he says. “In the 90s the buzz was all about bringing the small business sector,particularly black business, into the mainstream of the economy. “In my opinion, the country has failedto do this. In my time as a farmer, this view was reaffirmed as I had to facethe fact that it was impossible to produce poultry – broiler chickens in mycase – profitably with the constraints inherent in the supply value chain.” Monopolies are seriously hampering andsabotaging the development of a competitive economy which canaccommodate more players, Tshivhase believes. “More participants in the economy willimmediately result in employment, poverty reduction, economic growth, pricedecreases and the lowering of inflation,” he adds.
Tshivhase says that LumaCon plans togrow its market share and become a competitive industry player. “Five yearsfrom now I see myself achieving my dream, which is to be among the top airconditioning companies in southern Africa. Iknow that to get there, I’ll have to change my business model. “One of the biggest challenges is toget every staff member putting their shoulder to the wheel. The changes I planto make to my current business model will include employing project managersand farming out labour to sub-contractors.”And if you are wondering how thecurrent downturn has affected LumaCon, don’t. “It’s not a problem for usbecause we are not participating in the recession,” he says with a wide smileand a twinkle in his eye.
- Company: LumaConAir Conditioning
- Player:Derrick Tshivhase
- Contact:+27 11 656 4422, www.lumacon.co.za
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 28 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 28 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.
Meet Jan Grobler: Serial entrepreneur, Advocate, And Job Creator
It is the authors’ sincere hope that young South-African entrepreneurs will learn from wiser business men such as Jan Grobler and co-create a vibrant and legacy driven entrepreneurial environment in our country.
Jan Grobler has either directly or indirectly created 10 000 jobs and he is not done with forming a lasting legacy. The author can call on various titles in an attempt to describe this serial entrepreneur: Advocate, Founder, Franchisor and Project manager, yet no label can fully embody his unique skill set, experience, and entrepreneurial spirit.
As a highly enthusiastic observer of business leadership traits in others, I noticed Jan’s’ strong willed and passionate intent to create more businesses, ignite exponential growth within them, and ultimately deliver numerous job opportunities to South-Africans, from the onset of the interview.
As an advocate and MBA graduate Jan had a solid academic foundation that served him well on his entrepreneurial journey. “Working back” the bursary he had from Sanlam he values the learning he received from older and wiser entrepreneurs that he had established trusts for. He learnt to be a good listener and increase his emotional intelligence by making mental notes when the older entrepreneurs imparted some of their wisdom and experience and then taking action on the accumulated learnings.
Related: The Anatomy Of Peak Performance
The value of being a “Global Citizen”
Jan is a global citizen and has “back packed in 46 countries” accumulating cultural and business learnings as he travelled. He shared an example of waitresses in a South-American country “doubling up” as secretaries offering additional services such as fax and the recording of minutes of meetings thereby adding more dimensions, services, and income streams to a coffee shop operation.
The words rolled of his tongue with enthusiasm as he described how modern times has provided multi-dimensional opportunities for an entrepreneur such as being in your office in Centurion, South-Africa, purchasing products online from China , and then selling online to purchasers in Italy. Jan sees the future of franchising in South Africa as moving more and more towards “mobile outlets”. He has extensively researched the international “mobile franchising market” and is very excited about the possibilities for growth in South-Africa with regards to this market segment.
He is one of the founders of Fit chef and is currently developing the franchise system “Cafe2go”(Mainly a mobile concept) of which there are currently twenty five outlets. On his entrepreneurial journey Jan has developed eighteen brands of which he was a cofounder and as a contracted project manager he has assisted in facilitating the exponential growth of hundreds more companies.
Channels and revenue streams
As the aroma and taste of another Cafe2go Cappuccino held my attention Jan elaborated on four more revolutionary franchising concepts that he is co-developing. He said that success in business is highly dependant upon doing things better than others and offering a unique service and product.
Jan pointed out that he sees himself as a “channel creator” and it was clear to the author that through his vast experience and entrepreneurial acumen he has a high vantage point from which to see opportunities for the creation various funding models, sales channels and revenue streams, that combined causes exponential business growth.
This entrepreneur is very proud of his first start-up company of which he is still the CEO called Curator. Curator was started to, and still does assist entrepreneurs to grow their businesses, whether it be through growth interventions or for example raising capital or franchising the business.
Jan has never stopped learning whether it be from learnings accumulated from engaging other entrepreneurs or knowledge obtained from books. More importantly he continues to apply this learning in helping businesses to grow and create more and more jobs. Jan is building a legacy that any entrepreneur can be proud of. It is the authors’ sincere hope that young South-African entrepreneurs will learn from wiser business men such as Jan and co-create a vibrant and legacy driven entrepreneurial environment in our country.
Bob Skinstad On Making An Impact With The 80/20 Principle
The 8020 principle is one of the most powerful success secrets in the world — provided you implement it. Most people have heard of it, few put it into action. Bob Skinstad is re-energising an age-old principle by sharing a collection of real-life examples from highly successful people of 8020 in action. Here’s how you can start embracing an 8020 mindset today — and see phenomenal results in return.
- Player: Bob Skinstad
- What he does: Bob is an ex-Springbok rugby captain, businessman, entrepreneur, a director at venture capital firm Knife Capital and has recently developed an online course for millennials, 8020 Mindset.
- Visit: www.knifecapital.co.za and 8020Mindset.com
When Gary Kirsten arrived in India in 2008 as the new coach of the Indian cricket team, he recognised he had a key problem. Many of the players on the team were not only more famous than he was, but more skilled as well. How do you coach Sachin Tendulkar, one of the greatest batsmen of all time, on his stroke? You tell him to keep doing what he’s doing, and get out of his way.
But Gary did need to find a way to build trust between himself and his new team. There were many superstars in Indian cricket, and yet the national team’s results weren’t good, mainly because they didn’t operate as a cohesive unit.
Implementing the 80/20 principle
To really make an impact, he turned to the 8020 principle. What small but significant area could he turn all of his attention towards, to achieve 80% of the results he was looking for?
He realised that the one thing he had that most of the other players on his team did not, was time. Cricket is extremely popular in India, and the members of the national cricket team had a lot of endorsement deals, which meant they were very busy. Whatever happened, Gary knew he could outwork them. For the first 200 days of his contract, he spent every day at the batting nets, from 6am to 6pm. Each time a player came to the nets, he was there, ready to assist them, or simply to show he wasn’t going anywhere. He also spent those 200 days really studying his team members and listening to them.
By leveraging this one key area, Gary built the trust he was looking for, and learnt an enormous amount of information about his players. He found the one place that would make the biggest impact. Three years later, that team went on to win the World Cup.
“What’s incredible about the 8020 principle is that it’s relevant in every single facet of life,” says Bob Skinstad, an ex-Springbok rugby captain, businessman and now venture capitalist.
“Gary is just one successful person in his industry who has shared his 8020 experiences with me; there are so many real-world examples. I first discovered it while I was playing rugby in my early 20s, and I read Richard Koch’s book, The 80/20 Principle: The Secret to Achieving More With Less, but I use it in my business development capacity at Knife Capital today, and have applied it in various ways throughout my life and career. It’s an absolute game changer if you understand how to apply the principles, and the success that putting pressure on the right levers can achieve in your life.”
To say Bob is passionate about fostering an 8020 mindset is an understatement. In fact, he believes so strongly in the principle that he approached Richard Koch himself to discuss how he could help millennials to embrace 8020 to lay the right foundations for their own futures and careers.
Sharing and teaching lessons learnt
“Richard has a house in Cape Town. I managed to get his contact details and sent him a long email explaining how we had used his principles in the Springbok rugby team. We were a young team, and we used 8020 to figure out who needed to get their hands on the ball at which times of the game to make the biggest impact. Our game improved markedly once we started applying Richard’s principles, and that led me to implement it in everything I did. Richard loved the fact that we had applied it in such different ways to how he’d laid the principles out in his business management books.
“I really wanted to share all the lessons I’d learnt, and also the experiences of so many other sportsmen, business leaders and entrepreneurs whom I know have used 8020 to achieve success. I didn’t want to write a book though — I thought a course would be more immediate and practical, particularly for millennials, who I believe can really benefit from fostering an 8020 mindset early in their careers. Richard and I collaborated on the course. I wrote the content, recruited a number of my contacts to share their own success stories, and Richard reviewed all the material before it went live. It’s been a great experience, and one I hope will spread the word of how significant a shift to the 8020 mindset can be. Once you understand the principles in action, it becomes the lens you use to make all of your decisions, which has an exponential impact on your life, business and career.”
80/20 in Action
In all business and personal development theories, there is a vast gap between understanding the theory and actually putting it into practice. Using the 8020 principle on itself, only 20% of the people who are exposed to 8020 will actually implement it, but they will reap 80% of the rewards as a result.
The problem is that reading about a theory is easy. Putting it into practice is hard. It takes discipline, and a real understanding of how the principles work.
If you’ve been exposed to 8020 (also known as the Pareto Principle) before, you know that 20% of a sales team is responsible for 80% of a company’s revenue, 20% of clients bring in 80% of business, and 20% of your actions each day impact 80% of your life. Imagine if you knew which 20%, and could put all of your attention into those key areas. Imagine how you would supercharge your own growth and success, opening hours each day to concentrate on high priority tasks instead of getting sucked into the quagmire of ‘busyness’ we all fall victim to without even realising.
80/20 principle in action
“A few years ago, I was involved in a restaurant in Cape Town. We realised that 80% of the food customers ordered came from 20% of the menu. Through this simple insight, we were able to take a 36-page menu down to two pages. We saved costs on wastage, streamlined kitchen processes, and increased our efficiencies and customer service levels through this one simple change.
“The hardest part is getting started. Once you see success in one area though, you naturally start looking for the 8020 in other areas of your life, and before you know it that’s how you look at everything,” explains Bob.
“I see examples of 8020 everywhere, but I also see a lot of what I call ‘2080’ thinking. Take the ‘latte factor’ as an example. A few years ago, the idea took hold in the US (and South Africa) that if you just stopped drinking a latte once a day, you’d save $250 in 100 days. I disagree completely. If you really want to impact your savings, renegotiate your bond with your bank once a year. That will give you a far greater saving than cutting out lattes, and you haven’t deprived yourself of something that makes life pleasant. One key negotiation at the right time will have a much bigger impact on your life — speak to your bank, negotiate a raise — but look at the key area that will have an 80% impact, instead of an almost insignificant impact. That’s where you should be putting your willpower, energy and self-discipline.
“Gym is another great example. We’re told to spend 20 minutes a day at gym. That’s great for your health, and you should do it, but in terms of weight loss and body shaping, it’s negligible if you compare it to changing your eating habits. Gym is 20% of your body. Eating is 80%. Where should you be putting your focus? Instead, we see people gyming and then eating two packets of chips, and wondering why they aren’t losing weight. It’s all about what levers you pull, and where you put your focus.”
Small changes, big results
In 2017, Bob brokered local VC firm Knife Capital’s expansion into the UK. Based in the UK, Bob’s role as a director at Knife Capital is business development — how can Knife Capital assist its investments to build high-impact businesses from a small base?
“Once again, 8020 hits the target every time,” he says. “We’ve recently invested in a Swedish-based business called MOST, which develops environmental monitoring solutions for the transport and shipping industry. An early investor in MOST is King Digital Entertainment, the creator of Candy Crush. We love MOST. It’s tracking really nice numbers, the management team is excellent, the product is next level, the business model allows for recurring revenues — but our aim as an investor is to grow the business. We needed to analyse which areas to concentrate on that will have the biggest impact on growth. Through applying 8020 we realised that 12% of MOST’s current customers are responsible for 82% of the business’s revenues.
“How much energy, time and resources are put into the other 88% of clients who are only responsible for 18% of the company’s revenue? And what can be done to bring more customers on board who are like the 12%, and not the 88% of MOST’s customer base? Focus on the right areas, and you’ll exponentially grow your revenues without increasing overheads or expending more energy — in fact, you could actually do more in less time, with fewer people, if you know where to concentrate your efforts.”
How to apply the 80/20 principle
Bob believes that at its core, 8020 is common sense — you just need to apply your mind to the principles, and ask the right questions: What’s your 8020? Who are your biggest customers, where are you spending most of your time, which actions have the biggest impact, and where are your waste areas? And in each case, can you 8020 the results you’re looking for? What’s the 20% that will generate 80% of your returns, or impact 80% of your success? What’s the 20% that will affect the world and your customers’ lives and businesses?
Local entrepreneur Keith Rose-Innes shares how he increased Seychelles’ fly-fishing tourism industry by 600%:
Keith Rose-Innes built his profile and expertise to become the go-to-guy for building fly-fishing trips around the world. Based on this expertise, Seychelles tourism hired him to increase visitor numbers to their islands.
The Seychelles is isolated and expensive. Keith did his research, and discovered that only 20% of fly-fishing agents were responsible for most of the fly-fishing trips booked around the world. Instead of spreading his efforts, he concentrated exclusively on those top agents, pitching the reasons why they should promote the Seychelles to their clients. Within six months he’s increased year-on-year sales on the islands by 100%. This grew to 600% over the course of four years — simply because Keith focused his efforts where he would have the greatest impact.
Take the course
8020 Mindset is a five-hour online course endorsed by Richard Koch and presented by Bob Skinstad. It’s designed to help participants think like results-orientated super-performers.
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