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Women Entrepreneur Successes

5 Crucial Start-up Lessons From Sibongile Manganyi-Rath Founder Of Indigo Kulani Group

Sibongile Manganyi-Rath quit her corporate job at 26 and established infrastructure and real estate development company Indigo Kulani Group. Today her business has expanded to include IKG Start-up Capital, which is dedicated to creating world class entrepreneurs throughout the African continent.

Diana Albertyn

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Vital Stats

  • Player: Sibongile Manganyi-Rath
  • Company: Indigo Kulani Group and IKG Start-Up Capital
  • Established: 2006
  • Turnover: Over R100 million
  • Visit: indigo-group.co.za

Being born into an entrepreneurial family didn’t immediately lead Sibongile Manganyi-Rath down the self-employment path. “My father unwittingly set me on the path very early,” recalls Sibongile. “He had a small business in Soweto where he sold used bottles back to larger corporations such as Makro and various other glass bottle recycling agents. I often joke with people that my father was in the recycling business before it became fashionable.”

It was the early exposure of working in her late father’s small businesses that taught Sibongile the crucial principles and values that have helped her build the successful business that Indigo Kulani Group is today.

Here are her start-up lessons:

Lesson 1: Starting small doesn’t mean staying small

I consider myself very fortunate that I grew up in a family that was considered financially and materially poor. The fundamental principles my father taught me of running a small operation — such as financial discipline, hard work, sacrifice and persistence — were extremely valuable.

Related: 10 Dynamic Black Entrepreneurs

I learnt the importance of customer service when I was 12 years old and ran one of my father’s fresh produce stalls at Dube village train station. I had to observe why our sales were declining or increasing and each evening I had to report the daily revenue to my father. It was often in the region of R150 per day. I also had to make recommendations on improvements to ensure that we could offer better fruits and veggies than the other older ladies that were next to our stalls.

At the time I didn’t realise the value of the lessons I was learning from this process. It is these lessons that gave me the courage to quit my job in 2006 and start my own company.

Lesson 2: Passion for what you do is vital for a start-up, but it also carries you through the hard times

It is my belief that even in the era of digitisation, there are still fundamental principles about business that will not change. It’s important for entrepreneurs to understand their market and the needs that they are addressing. You need to have a strategy that continues to evolve with the needs of your customers, particularly in our current digital era where needs of the customers change very rapidly through the options that they are presented with.

Passion gets you through the loss-making period, often referred as the ‘valley of death’. It’s during this time where your passion gives you courage to persist.

Financial literacy and discipline in working capital management is important because at this stage the business needs a lot of growth capital to generate more revenue before the start-up can reach a break-even stage and make profits.

Lesson 3: Collaboration and partnerships are vital

It’s my passion for what I do that gave me the courage to build a company that seeks to break the mould in a male-dominated industry. We make a positive contribution to our society through our various infrastructure projects, including delivery of more than 200 schools in South Africa’s rural areas.

We have also been involved in building and managing clinics, housing, and water and sanitation projects in many previously disadvantaged communities. The passion to extend this positive impact fuelled the growth of the company where my partners and teams come from very diverse backgrounds — ranging from investment banking, engineering, project management, healthcare and education — to ensure that our services to our clients offer a holistic approach.

However to succeed in this, entrepreneurs need to understand that collaboration and partnerships are important. Empires are not built by individuals but take a collective mindset with a single vision.

Lesson 4: Aim for profitable growth through bold inspirational leadership

  • Our holistic approach to the sector in which we operate has not only been beneficial in offering our clients an integrated service, but being a multi-disciplinary services company also gives us access to diverse clients and revenue streams.
  • Our company’s business model is ‘intrapreneurial’. A divisional organisational structure ensures quick decision-making and response to market.
  • We have highly skilled individuals, and our overheads are cross-subsidised by complementary skills sets across projects. We remain profitable by managing our resources cost-effectively.
  • Most importantly, we manage our resources weekly through EXCOM and reporting.
  • Incentives are critical and linked to project performance and achievement of targeted revenue and profitability, managed through quarterly performance reviews and targets reviews.
  • Inspirational leadership means leading by example. This inspires the collective that achieves its strategic objectives.

Related: Watch List: 50 Black African Women Entrepreneurs To Watch

Lesson 5: There is always someone out there trying to beat you at your game and take away your customers

Knowledge about your customer is fundamental because without your customers you have no business. Integration of technology into your business enables you to understand how customers use your services and products, which offers key insight into your customers’ needs.

This building of digital customer relationships provides your business with an opportunity to develop a competitive advantage in the tough market we operate in today. I still embrace the physical human relationship where I stay close to my customers and ensure that I understand what is troubling them and how they can be better served.


Sibongile’s game-changing advice for budding entrepreneurs

Keep your vision, but let your strategy be flexible. Collaborate with other people, find advisors that don’t cost you money. Talk to venture capitalist and private equity guys, there is always someone willing to not only invest their money but their ideas, experience and networks. But, be open to give a little bit of equity; it has to be worth their while.

Diana completed a BA in Journalism in 2010 and has honed her skills as a newspaper reporter, senior communications specialist and most recently worked at a weekly magazine as a writer. She joined the EMTS Group in 2016 as a writer for Entrepreneur magazine and SmartCompany Networks. Passionate about honing her writing skills and delivering exceptional client results, Diana continues to keep a finger on the pulse of industry news and insights.

Women Entrepreneur Successes

Third Prize Winner Of The Workspace/MiWay Competition Shares Top Lessons Learnt

Mpho Mpatane recently won third prize in The Workspace/MiWay Business Insurance Entrepreneur Competition. Her company supplies general and women-specific protective personal equipment and clothing in the mining and construction industries. This is her story.

Entrepreneur

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Two months ago, I won third prize in an entrepreneur competition. It was one of the most intense experiences I have ever undergone, as it ran over a seven-month period. Minatlou was the only start-up in the top 10 finalists and mentally, I had to motivate myself daily to keep going, and to keep growing.

I’ll be honest: It wasn’t easy. I relied on family and friends to keep me motivated. There were times I doubted myself but then I would get a phone call from my dad asking me how business was going… and then I would snap out of my doubting space, get refreshed energy and get back into my competitive mentality space.

Lessons Learned On The Start-up Journey

In retrospect, the lessons I learned on this journey are invaluable. I learned that in business there are certain steps you cannot skip or try to cut corners in order to try and move ahead. As an entrepreneur, you constantly have to work on the business itself and also for the business. You must have your house in order before you invite other people to come and visit. I know now that one must be willing to learn and once you have learned, put those lessons into action.

Before The Workspace/MiWay Business Insurance, I was focused on setting up the business; I was not big about marketing or social media. So now I know that in order to have the right people know about my business, I must reach out to them and not rely on word of mouth only to create a sustainable client base.

Right now I am busy changing my company name, from Minatlou 251 to Phepha Solutions Group, and after that first step, I will create a social media presence, a brochure and an online presence such as a website. I’m also creating a small clothing line for corporates to see the calibre of our out of the box designs of corporate uniform and our standard of manufacturing.

Assistance From Winning The Competition

What’s amazing is that The Workspace has come forward to assist me where possible and as much as they can. The CEO, Mari Schourie, actually reached out to me while away on maternity leave to ask me personally what they can do to assist me in addition to what I won in the competition.

Related: 10 Successful SA Women Entrepreneurs’ Top Advice On Balancing Work And Family

This made me feel motivated and it also demonstrated that what I am offering is of good value and that I am going to succeed, this business is going to grow and thrive.

I won a beautiful office for a period of three months, which comes with administration support from The Workspace in Selby, with undercover parking, boardrooms to use for meetings and so much more. I have also gained a family in the process.

I won sessions with a business strategist who is helping me develop a formal strategy to move my business forward and help it grow. I have also won consultation sessions with a marketing company to help me grow my business and help me have a proper marketing plan in place plus help me improve on my sales. I won services of a cash flow specialist to help me in that area. My prizes are priceless and what I love the most is the fact that they are helping me build and strengthen my business from within.

My Next Steps

In the short-term, I’m working hard to add at least six retainer clients to our books, gain entry into the highly competitive mining industry and manufacture for them as well. I want to boost sales and get more clients. Proper brand awareness and getting industry related accreditation is on the cards, as is renovating our factory.

In the longer term, I now have a five-year plan, with goals and steps along the way. The next five years will be about growth and scale if possible. I want to be able to do cross border transactions and also export our merchandise to Africa, starting in the Southern parts and expanding slowly.

So yes, I have had to work incredibly hard, but the most comforting fact is that I am not on my own. I have support at my back and mentors challenging me to grow and develop. This period of time has been the most brilliant period of learning and growing in my entrepreneurial journey so far.

Top Tips For Entrepreneurs

To all those entrepreneurs in South Africa working their tails off to succeed, these are the lessons I have taken to heart:

  • Be bold. Take chances.
  • Do research and always try to stay ahead of your competitors.
  • Try to have fun, enjoy what you do.
  • Have passion and be willing to work hard for what you do, people will believe in your vision.
  • Be honest in your business dealings, if you can’t deliver on your promise for any reason inform the client and do your utmost to correct the challenge, don’t lie.
  • Be willing to learn, invest in your own knowledge base. Expand your thinking, explore, and ask questions.
  • Be willing to help other upcoming entrepreneurs. Share information with them, as they don’t have to struggle long and hard like you did. This will help with the development of sustainable businesses and a better quality of future entrepreneurs.

Note: To celebrate their first-of its-kind collaboration at Village Road, The Workspace and MiWay ran a competition for South Africa’s entrepreneurs that saw the winner/s given a major advantage to further grow their business. The Workspace and MiWay joined forces at The Workspace premises in Village Road, Selby where they have launched an entrepreneurial hub and business development programme.

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Women Entrepreneur Successes

Watch List: 50 Top SA Business Women To Watch

Don’t miss out on these 50 female trailblazers making an impact in the South African and international entrepreneurial space.

Nicole Crampton

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Here are the 50 top South African business women to watch in no particular order

  1. Anastasia Dobson-du Toit and Michelle Dateling
  2. Charlotte Aubin
  3. Rapelang Rabana
  4. Lynn Baker
  5. Dylan Kohlstädt
  6. Noli Mini
  7. Stacey Brewer
  8. Nonkuthalo Thithi
  9. Daniella Shapiro
  10. Xoliswa Daku
  11. Lorren Barham
  12. Allegro Dinkwanyane
  13. Nadia Rawjee and Zahra Rawjee
  14. Karen Carr and Hanneke Schutte
  15. Michelle Royston
  16. Donna Silver and Elvira Riccardi
  17. Magda Wierzycka
  18. Jennifer Da Mata
  19. Thuli Magubane
  20. Tracy Kruger
  21. Monalisa Zwambila
  22. Keri Stroebel
  23. Claire Reid
  24. Ramona Kasavan
  25. Carrie Leaver and Shona McDonald
  26. Donna Rachelson
  27. Mahadi Granier
  28. Liesl Esau
  29. Prudence Spratt
  30. Joyce Mnguni
  31. Janine Starkey
  32. Shamila Ramjawan
  33. Busi Skenjana
  34. Benji Coetzee
  35. Jerusha Govender
  36. Lauren Edwards
  37. Ouma Tema
  38. Annabel Biggar-David
  39. Jennifer Glodik
  40. Ntsoaki Phali
  41. Tara-Lee de Wit
  42. Kim Coppen-Watkins
  43. Mogau Seshoene
  44. Andy Golding
  45. Lien Potgieter
  46. Ezlyn Barends
  47. Rabia Ghoor
  48. Katy Valentine
  49. Leah Molatseli
  50. Lynette Ntuli 

“Globally, women entrepreneurship rates are growing more than 10% each year. In fact, women are as likely or more likely than men to start businesses in many markets,” says Karen Quintos, EVP and chief customer officer at Dell.

The growing momentum of female entrepreneurship can clearly be seen in this comprehensive list of 50 of South Africa’s finest. Although this movement has far from reached its peak, for those looking for inspiration, lessons or businesses to invest in, look no further than this list of female pioneers.

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Women Entrepreneur Successes

How Portia Mngomezulu Is Conquering The Highly Competitive Beauty Industry

A great product range backed by an ambitious vision and a determination to get the basics right is helping Portia Mngomezulu to conquer the highly competitive beauty industry.

Monique Verduyn

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Vital Stats

Estee Lauder. Elizabeth Arden. L’Oréal. What is so special about these brands? Why aren’t Africans competing in this market? That’s the question that got cosmetics entrepreneur Portia Mngomezulu thinking.

A qualified systems engineer, and a curious entrepreneur by nature, Portia was always selling something that she had concocted.

In 2010, after she had a child, her mother-in-law suggested using marula oil to help with stretch marks. Portia went to her hometown of Phalaborwa, where she had grown up playing under marula trees, and procured the oil from local women. She saw the difference within a few weeks, and that was the seed that germinated into Portia M, a black-owned skin care manufacturing company that caters, in her words, ‘for every skin under the African sun’.

Keeping the retail dream alive

Portia started small. With a two-plate stove and a couple of pots, she manufactured her first batches of product; her ‘secret oil’, which she sold for R100 per bottle at church, and to friends who were pregnant. People kept buying. But she was adamant that she did not want to grow a network marketing business.

“From the start I was determined to compete at retail level,” she says. “I saw my product on the shelf next to the big international brands. Great and successful entrepreneurs have achieved their purpose and goal by setting a strong and clear vision, and by pursuing it with passion.”

Convinced that she was onto a sure thing, she approached the Small Enterprise Development Agency (SEDA) and asked for help to have her products and formulas tested. Getting the legal paperwork right was a key step in the growth of the business, and one that would pay off later.

Personal care products are subjected to many different tests before being placed on the market for sale. Testing usually includes evaluations for product stability, purity, safety and the effectiveness of preservatives, which protect the product from deterioration. It’s a costly exercise. In 2012, SEDA arranged for the tests to be conducted by the South African Bureau of Standards (SABS) at Medunsa (now Sefako Makgato Health Sciences University). The process took around six months, during which she continued to sell, without taking a cent from the business.

Persistence, and the willingness to overcome a wide range of obstacles, usually determines the fate of a company. In Portia’s case, believing that she had the power to achieve whatever she wanted meant that mental barriers such as fear were never an issue.

Related: Watch List: 50 Top SA Black Entrepreneurs To Watch

After getting Makro to agree to stock Portia M at six of its stores, it took another two years to convince the buyers for Shoprite and Checkers to do the same.

“They eventually agreed to just 20 stores, as they wanted a test run. But I resolved not to take it personally. Instead, I used this time to perfect the range. It’s far easier to rectify mistakes when you have a small footprint. Now, our products are in more than 530 Shoprite and Checkers stores.”

She also took the opportunity to show her products to Absa at a trade show. The bank’s representatives were impressed, but said that it was too risky to finance a cosmetics business. Instead, they suggested she take part in a 14-city women in business roadshow they were running. She did, selling more than 30 000 skincare products.

“The last session was in Cape Town, and that was where I met Suzanne Ackerman, daughter of Pick n Pay boss Raymond Ackerman and transformation director of the group. She was impressed by the fact that I had tested the products and had barcodes in place. She encouraged me to approach the company’s buyers. They gave me the opportunity to sell in 20 Pick n Pay stores. It was a life-changing moment and I remember crying when I saw the brand on the shelves.”

The value of social proof

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Her next challenge was marketing. With no budget available, she had to get the products moving off the shelves. Already accustomed to promoting Portia M to her friends on Facebook, she took her social media presence to the next level, having photos taken of the product range and encouraging people to try it out.

“Miraculously, customers started taking before and after images and telling their stories,” she recalls. The value of ‘social proof’ provided by these testimonials has been immeasurable, and is one of our key selling points — real people, real results. Today we have more than 200 000 followers on Facebook, over 12 000 on Instagram, and over 3 000 on Twitter. At Pick n Pay alone, our sales are worth more than R1 million a month.”

Portia M products are now sold in more than 1 200 stores nationwide. To export the range into other African countries, she has leveraged the operations of Pick n Pay, Shoprite and Clicks to enter Lesotho, Namibia, Botswana, and Swaziland.

“Because the paperwork required to export to African countries can be onerous, it made sense to partner with established retailers, convince them to distribute my products for me, and expand the business in this way.”

Words of advice

  • When a brand is new and unknown: “To grow a brand from scratch, you need to build strong relationships with retailers and sustain excellence in delivery. When they place an order, make sure it gets there on time.”
  • When you are competing against multinationals: “Respect the industry, but understand that your competitors also had to start somewhere. Vision and self-belief are key. We are just as capable as global companies of producing top quality products.”
  • When you are trying to get shelf-space: “Shelf space is critical, and you earn it through sales. Our sales are based on testimonials, proving that effective marketing does not have to cost a fortune.”
  • When you need to keep your cash flowing: “Negotiate payment terms with retailers. I have seven-day, 14-day, 30-day and 45-day payment agreements with different retailers, ensuring that my cash flow is always positive.”

In 2015, Portia was named the overall winner of the Tshwane Exporters Awards, thanks to the fact that she registered as an exporter with South African Revenue Services. Representatives from The Innovation Hub invited her to pitch the business, and she was given a small office as well as a 40m2 factory. Today that space has grown to 500m2.

“Moving from home to a factory space was another defining moment,” she says. “I had a team of biochemistry students coming to work for me, using my stove and my pots. It was very embarrassing. They laughed at me at first, but they also believed in me. Together, we formalised the business and one of those students is now the factory supervisor.”

In 2017, she was named a National Gazelle by the Department of Small Business Development and SEDA. She won a grant of R1 million, enabling her to buy additional manufacturing equipment and a truck.

Related: 10 Dynamic Black Entrepreneurs

What lies ahead?

Portia has an audacious five-year goal — to penetrate the African market and to compete comfortably with Africa’s favourite skincare brands. Part of that plan is to get retailers like Dis-Chem and Woolworths on board.

“When I visit other countries on the continent, they want to know how successful the brand is at home,” she says. “To win customers, we differentiated Portia M by providing a tried and tested product, and also by using a uniquely African ingredient that is well-known on this continent. More than anything, I believed in the product before I expected anyone else to, and that has made all the difference.”


KEY INSIGHTS

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Start with a vision                 

Portia was determined to see her products on retail shelves alongside international giants. She knew this vision was the most important starting point in achieving her goals.

Start small to achieve big                 

Get into the market so that you can tweak and perfect your product while it’s still small. This is much easier to do while you still only have a few customers on board, and it will give you the foundations for a much larger business.

Access Government Programmes    

There are a number of programmes and funds supporting local manufacturers, from access to international markets, to assistance with compliance and even funding. Do your research and tap into them.

Related: Alphabet Soup Founder Nikki Lewin Discusses How They Compete With The Big Boys

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