Enter the Weylandts Homestore in Durbanville, Cape Town, and you’ll be hard pressed to imagine it was bootstrapped. The open-plan split-level design, inviting coffee shop, large glass windows flooding the rooms with natural light and select high-end furniture and décor speak of exclusivity and style. This is precisely what founder Chris Weylandt planned when he first opened his doors in 1999.
“I wanted to create a high-end retail environment that focused on customer service and combined a retail experience with quality products, an attention to detail, and a feel for what each piece would feel like in the customer’s own environment. To do this, we needed a space that felt less like a store and more like a private, inviting and, above all, comfortable space. And we had to get it right from the moment we opened our doors.”
Having come from a furniture design and retail background, Weylandt was confident in the niche he had recognised. “The retail space was dominated by big groups with a few small, specialised operators on the outskirts,” he says.
“No one was offering a proper holistic retail experience in our market. I was convinced there was room for an easy, hassle-free destination store that provided a mix of unique product and merchandising, backed by excellent customer support.”
As a supplier to big groups in South Africa, Weylandt was increasingly frustrated by two things. First, he felt the larger groups did not have a passion for merchandising. Second, as a smaller supplier he often waited up to 60 days for payment. He wanted to find a better way to operate within the retail furniture space, and he wanted to realise the dream of a concept store that was just starting to take shape in his mind.
“At this point I was working with my father and my brother. Based in Windhoek in Namibia, my dad had started a retail furniture store in 1964. I grew up loving fine furniture imported from Europe and discussing business around the breakfast, lunch and dinner table. It was in our blood,” says Weylandt.
“I left Namibia for Cape Town to study and become a chartered accountant, but after my degree I soon returned home and joined the business, where I would spend the next few years implementing new systems and processes, visiting Europe to develop our product lines and even opening a small manufacturing plant, where we produced our own line for some of the larger retailers in South Africa.”
It was after relocating to South Africa that the idea of opening his own retail line really began to take shape though.
Step by step
What sets Weylandt apart from many entrepreneurs who have not managed to successfully realise their dreams is patience and planning. “I had absolute confidence in the concept, but I also knew that if I wanted to launch a brand in that space, I needed to get it right. There would be no second chances – which meant I needed to have all my ducks in a row.”
Having a plan is one thing, financing it is quite another. While his father’s business continued to do well, Weylandt used his time while still in partnership with his family to save his profit share, do his homework and refine his business model.
He needed start-up capital, he needed to have sourced the right products and secured exclusive partnerships with Indonesian and European manufacturers, and he needed to completely understand his consumers. It took him over three years before he was ready to break ground with his new project.
“This was my project. My father and brother remained in Namibia, although the manufacturing plant we had set up would service the new Weylandts Homestores as well.”
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Making the money work
The Weylandts concept was based on a destination store, which meant it wasn’t at a mall. There were no parking hassles and it was simple to reach and enter. Weylandt would own the property outright as well, instead of renting.
He already had the furniture sourced, and an architect on board who understood what he was looking for: Beautiful natural lighting, a coffee shop and crèche so that customers could enjoy a few hours at the store and get a feel for the Weylandts brand and style of living. Each room needed to be different and inviting, showcasing not only products, but an overall ambiance.
The vision was in place. It was finance that was the hurdle. “As a start-up, I struggled to secure finance,” Weylandt says. “Ultimately, I managed to secure a bank loan on the property, but the building needed to be bootstrapped.”
With some savings in place, he got to work. “First impressions are vital. It was more important for me to open the way I wanted the store to look than to take short cuts. If this meant taking longer so that I could afford the project, so be it. I was earning a salary and profit share. It was only time I was losing — and the investment was more than worth it.”
Weylandts made a profit from the minute the doors opened. “I had invested a lot of time and energy sourcing the right products, and this paid off. 80% of our product line was imported and 20% manufactured ourselves, but in both cases we were offering unique products that were nevertheless fashionable. When your offering cannot be found elsewhere, you are able to charge more for it. Combine this with a destination-store experience, a desire to be linked to our brand, and strong customer service and support, and we were able to ask premium prices. These profits went straight back into the business, and slowly my vision was realised.”
For the first five years, every cent earned was ploughed back into the business. “The fact that retail is a cash business helped – we weren’t waiting for clients to pay us, so we could immediately reinvest the cash.”
Once Weylandt had a track record (and as a CA, this was a well documented track record), it was much easier to secure additional funding from banks to open new destination stores, although he has continued to rely on his own positive cash flow to support most of the business’s growth organically.
“Remember that banks are conservative. They focus on collateral and assets. The trick to remember though is that even once you have those things, they will also want to see a track record. This includes demonstrating real discipline when it comes to cash flow, margins, logistics, operations and budgetary controls. Start your business on the right foot and it will continue that way. Our focus on running a tight ship is what has really allowed us to grow, not bank finance. We are always in control of the business. We have grown organically, we haven’t over-extended, and we’ve made sure we were ready for each new step.”
Today Weylandts is made up of seven local stores, two stores in Namibia, and a store in Melbourne, Australia set to open in October 2013. And 2013 will see the inclusion of a turnkey interior design offering to the Weylandts brand as well. “We have a unique range, we’re able to manufacture custom furniture, and our expertise lies in creating beautiful spaces. This offering is a natural progression of the brand as the business continues to grow.”
Unless you are running an e-commerce store (and even then), your employees form the backbone of your business. They are the first and last impressions left on your customers, and they can quite literally make or break your business.
For Weylandt, finding the right employees was one of the biggest challenges he faced while growing the business.
“You can have the most amazing products and the best location, but without the right people it means nothing,” he warns. “We learnt this the hard (and expensive) way, particularly when we began opening stores across the country.”
Weylandt’s advice? Budget for the right people. Often, this will mean higher salaries and bigger incentives. But when budgets are kept, cash flow is positive, the business is lean and efficient, and customer service levels are maintained, the end result is better margins and returning customers.
Player: Chris Weylandt
Joel Stransky Shares His Insights On What Makes A Great Leader
Enter Joel Stransky just as friendly as the rest of the team, also casually dressed, also wearing a smile. As a founding director of the innovative Pivotal Group, he explained that their value proposition particularly in Pivotal Talent.
Posters displayed on companies’ walls representing the business’ Vision and value system are a common occurrence. A general value that numerous companies share is to be client centred and to provide excellent service. Yet, unfortunately a proportion of companies do not live according to their values as tools to actualize their collective Vision.
An observant individual would take only a few seconds to notice that the Leadership group at Pivotal has gone to great lengths to establish a definitive and value driven culture as well as a motivating climate for their team members. As I waited in the reception area I was met with smiles from several people passing by and there was generally no way to assess what their position was as they were all casually dressed, friendly and approachable.
Enters Joel Stransky just as friendly as the rest of the team, also casually dressed, also wearing a smile. As a founding director of the innovative Pivotal Group, he explained that their value proposition particularly in Pivotal Talent, is the use of Augmented Intelligence and data analytics within the “human capital space”. The application of AI and data makes talent acquisition and career guidance much less of an enigma and challenge as opposed to the recent past where traditional talent acquisition and career guidance methods became less and less successful and more and more time consuming.
The “pivot” of the 1995 Victorious Springbok world cup team shared that he always starts off an employee-employer relationship with the assumption of mutual trust and respect. He believes that once you have put in the sincere effort to understand people better, bigger belief in them is a natural result.
“The greatest asset in business is people,” Joel passionately explained and added that it is possible for a brilliant product to fail in the long run when the wrong people are employed.
“Hiring the right people that would not only help sustain the current culture but add more value to it is critical to any team or companies’ sustainable success,” Joel explained. The Millennial generation think differently and have different expectations from a working environment, therefore it is a critical factor for any manager and/or Leader to understand what drives the emerging generation and also how to manage the polarity of generational gaps.
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As a result of diversity and generational gaps Leadership and management has become a fascinating space to operate within South-Africa as not only cultural and language barriers might offer a challenging HR environment, the millennial generations unique behaviours amplify the need for useful adaptations within all spheres of work.
As a practical example, employee X is twenty-three years old. Some of the key questions that management needs to figure out, that is if they sincerely want the best for, and the best out of employee X, are:
- Is X motivated by monetary rewards and/ or does she/he need a regular hug to feel part of and add to the company culture?
- Does X need to interact with management socially for example be taken out do dinner?
- What skills does X have or lack that impacts his/her performance?
- It is impossible to motivate someone else. In what way can I create an environment for X wherein he/she can motivate himself/herself and excel?
How you satisfy Xs’ needs and manage all related factors to his or her needs has become critical success factors in how we as leader’s approach career development in general.
Reflecting on the development of his own sports and business career, as well as his family life Joel is adamant that whatever drives you in sport also drives you in business and within your family life. Whatever he has achieved within all aspects of his life came as a result of setting goals and making those goals a reality.
Both in sports and in the business world within South Africa there is a general tendency towards over structured management and coaching. Although a structure and daily management is an integral part of business and sports, a paradigm shift towards inspirational Leadership that empowers other leaders to succeed is key in terms of serving others and creating a motivating and sustainable environment within which all team members can thrive.
Reflecting on Joels’ observation: “Our countries’ value chain is broken” the moment has most certainly arrived within which more and more value driven and ethical Leaders, emerging from all generations must arise and collectively work towards an improved future.
Critical to the actualisation of a collective future vision is the development of Leadership skills therefore one of the keen interests of the author is to recognise and learn from other Leaders’ character traits. Joel’s’ highly effective communication skills underpinned by the core people skill of active listening quickly came to the fore as he could quote part of my question and comments in each of the very insightful answers that he provided. His keen willingness to innovate and to create inspiring working environments makes his enthusiasm and skill as a Leader tangible.
Let us all challenge ourselves to learn from prime Leadership examples offered by individuals such as Joel Stransky and leave more and more Leaders behind for only in such a way can an inspiring future be built.
Nhlanhla Dlamini Not Only Has Guts, But Grit – In Spades
An alumnus of WBS and Harvard Business School, Nhlanhla Dlamini did some soul searching when he was doing his MBA at Harvard, and knew that the corporate ladder, although tempting, was simply not going to be enough.
It takes guts to venture into entrepreneurship. And when you’re in a ‘cushy’ job with a top global auditing firm who are grooming you for partnership, it takes even more guts.
Nhlanhla Dlamini not only has guts, but grit – in spades.
An alumnus of WBS and Harvard Business School, Nhlanhla did some soul searching when he was doing his MBA at Harvard, and knew that the corporate ladder, although tempting, was simply not going to be enough.
“I started thinking, ‘what is the best thing I can do with my life?’”, recalls Nhlanhla. “I always felt a pressing need to get involved in lowering the unemployment rate in South Africa. It’s a notoriously difficult space, but entrepreneurship is the real engine of job creation and I felt compelled to rise to the challenge.”
When he left his job at McKinsey in March 2015, Nhlanhla decided to explore the agricultural sector – having no idea what product or what part of the value chain he would end up in. He spent until December that year exploring the agri-food sector, gaining as much understanding as he could about the entire industry by talking to famers, co-ops, agricultural associations and various other stakeholders.
“I wanted to export products to the US and I looked at tree nuts, blueberries, dairy products or meat. Because of stringent FDA regulations, meat wasn’t an option – but a friend of mine from WBS days suggested meat in the form of pet food.”
And so Maneli Pets was born, and Nhlanhla moved his fledgling business into a factory, which he re-purposed for meat processing, in October 2016. By June 2017, he had started operations with 30 employees on board, and by September he had 50 employees.
What makes Maneli different from other US-bound pet food products in an already saturated market? The answer is high protein meat from animals that are unique to South Africa.
“I discovered a market for the off-cuts of meat from specialist butcheries – so crocodile, warthog, ostrich etc,” Nhlanhla explains. “The result is a very high quality, high protein pet snack with a difference – and US pet owners are willing to pay for the best they can get.”
Under the brand name ‘Roam’, Maneli Pets products are exported to a pet food wholesaler in Boston, US, owned by the family of Nhlanhla’s former WBS classmate, who had planted the seed of the idea in the first place. Nhlanhla is now preparing to launch the products under another brand name for distribution in South Africa and export to the EU.
But pet food is only the start. Maneli Pets is an offshoot of the Maneli Group, a diversified food company which is looking ooking to build further businesses in the green energy sector, while boosting black entrepreneurship.
According to a City Press report, South Africa has relatively few black-owned food production businesses, which is why government is actively promoting agro-processing and the manufacturing sector in general to spur economic growth.
Nhlanhla has worked tirelessly to secure government funding, and was thrilled to obtain R26 million from the Industrial Development Corporation (IDC). Just last month, he received the news that Maneli Pets had been awarded grant funding of R12.5 million from the Department of Trade and Industry’s Black Industrialists Scheme (BIS).
Nhlanhla, who was also a Rhodes scholar at Oxford University, considers his PDM at WBS a “superb” way of preparing a student for the real world of work. “The group dynamics was an essential learning experience in terms of delivering on a mandate with a group with entirely different skill sets.”
Describing himself as a “passionate and active WBS alumnus”, Nlhanhla still stays in regular contact with a core group from his PDM class, proving that one of the enduring benefits of a PDM (and an MBA) is the opportunity to connect and network with like-minded people and form life-long friendships.
Apart from what he learnt in the Entrepreneurship Management module of the PDM, such as the pillars of entrepreneurship, macro trend support and financing an idea, Nhlanhla considers the keys to success are threefold: Recognising the value of a social network, tenacity – and just a little luck!
See Will.i.am And Malcolm Gladwell Live In South Africa
The BCX Disrupt Summit has gathered some of the world’s most innovative and disruptive thinkers to guide you and your business into the future.
As one of the largest technology players in South Africa, BCX embraces disruption. As an organisation, one of its primary focuses is to move its customers into the future, not just with products and services, but a shift in mindset as well.
What tools and ideas do we need to embrace today to be ahead of the curve tomorrow? With this in mind, BCX has partnered with BrainFarm to launch the inaugural BCX Disrupt Summit.
“The BCXDisrupt Summit is a platform for South African innovators and businesses to learn from and be inspired by some of the greatest examples of possibility in the world,” says Dean Carlson, founder and CEO of BrainFarm, the event organisers.
A gathering of minds
The BCXDisrupt Summit is bringing some of the world’s greatest minds together under one roof for two days. The speaker line-up includes will.i.am, Malcolm Gladwell, Rapelang Rabana and Nick Goldman and topics covered will range from where technology is heading, to how playing games can extend your life expectancy by up to ten years.
Seven-time Grammy award winning hip hop artist will.i.am is also a significant player in the tech and entrepreneurial space, as well as a philanthropist. He was a partner in Beats Electronics, which was sold to Apple for $3 billion in 2014. “When will.i.am was 16 years old, music was where it was at,” says Dean.
“And so, he focused on building a music career, and creating products for that industry. Today he’s learning to code, because that’s where it’s at. He’s got an unparalleled handle on where the world is moving to, and so many insights to share.”
Dean has built BrainFarm on a portfolio of incredible local and international speakers, each of whom he’s seen live. “I regularly attend international conferences to get a sense of which speakers and idea-shapers I’d like to bring to South Africa,” he explains.
“will.i.am is one of those global shapers whose ideas take everything to the next level. To get maximum value from him for our delegates, we’ve chosen an interview set-up instead of a key-note talk. Local tech expert Aki Anastasiou will be interviewing him, and the audience will be able to ask questions as well. This will give us an opportunity to localise will.i.am’s knowledge and ideas.”
Author of five New York Times bestsellers, including David and Goliath and Outliers Gladwell is well known for introducing the concept of the 10 000-hour rule, which states anyone can become an expert in anything given enough time and practice. Dean first brought Malcolm Gladwell to South Africa in 2009.
“When I dropped him off at the airport, Malcolm signed his book for me with the words ‘Please invite me back,” says Dean.
“We’ve tried to bring him out a few times since then, but the timing hasn’t worked out. This was the ideal summit for Malcolm’s ideas, and this time, the timing worked.”
Having seen Malcolm in action many times over the years, Dean knows that he’s a speaker that always leaves his audiences wanting more. And so, the BrainFarm team thought about the best way give their delegates exactly that.
“Malcolm has developed a masterclass for the second day of the Summit that will focus on what makes a person successful, both in life and business. He’ll be unpacking tools our delegates can use to personally drive success.”
Nick is that rare breed of academic who is also an engaging and entertaining speaker. A UK-based mathematician and genome scientist, Nick is passionate about how we can store and preserve digital data.
“If you want to feed your brain, Nick is the person who will do that for you. His team recently coded five documents of historical significance onto a strand of DNA,” says Dean.
Each day, what we thought was possible changes. What does the future look like, and are you ready for it?
Born in Senegal and sold into sex slavery, Marieme Jamme refused to accept the lot life had given her, and instead taught herself to code. It was a skill that enabled her to change her conditions and life. Today, through her latest venture, iamtheCODE, she has one giant, global goal: To teach one million women and girls to code by 2013.
“Marieme has a consultancy that helps tech companies get a foothold into Africa, the Middle east, Latin America and Asia, and she’s also focused on her mission to help other women and girls escape their fates by learning to code,” says Dean. “She’s one of the most interesting and inspiring people I’ve ever come accross.”
Heralded as the controversial CEO and saviour of Telkom, Sipho has helped the company rack up gains of 150%, making Telkom one of the best performing companies on the JSE. “A major focus of Telkom is getting businesses across Africa ready for tomorrow’s customers,” says Dean.
“To be ready for tomorrow’s customers though, you need to know who they are, and have a sense of what the future will bring.”
A game designer, Futurist and New York Times best-selling author, Jane’s TED Talk, The Game That Can Give You Ten Extra Years of Life, has over six million views to date.
Local tech-star Rapelang Rabana is the CEO and founder of Rekindle Learning, a company she has positioned at the crest of a rapidly rising online community across Africa.
Her mission: To deliver learning in bite-sized chunks across the continent.
CEO of BCX. BCX has invested millions in computer programming education so that young people from all social and economic backgrounds have the opportunity to become programmers at no cost to them.
When Lars joined LEGO as Senior Global Director of Social Media and Video, the company didn’t even have a Facebook page.
“Today LEGO has well over 12 million followers on Facebook and more than three million on YouTube where they’ve just knocked up five billion lifetime views,” says Dean.
“The big idea behind their social media campaigns is to leave the thinking to their fans. Lars understands the creative power of the crowd, and what harnessing that power can do for your business.”
Bringing it all together
“We focus on projects that excite us, and that will change the perceptions and world views of our delegates,” says Dean. “We’ve partnered with BCX to put together an incredible event that will leave you inspired, amazed and driven to change your life and organisation – with the tools to do so.”
To find out more about the BCX Disrupt Summit or to book a seat, visit https://www.bcxdisrupt.com/
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