- Player: Monalisa Zwambila
- Company: Riverbed
- Launched: 2007
- Turnover: R80 million
- Awards: Winner of the Regional Business Woman of the Year 2017
- Visit: www.theriverbedagency.co.za
There comes a time in a business’s lifecycle when you realise you are through your start-up journey, and if you want to build a high-growth organisation, you need to put the right foundations in place.
For Monalisa Zwambila, founder of Riverbed, a through-the-line communications agency, that realisation happened in 2013, six years after she had launched the business.
“Four years ago I had an epiphany,” she says. “We had 15 employees and a turnover of R18 million. I realised that if we were ever going to get bigger, I needed to find a way to get my vision out of my head, and into the organisation. It needed to be more than just me working towards a goal. It needed to be the whole organisation working together towards a shared dream.”
Today Riverbed employs 40 people and has a turnover of R80 million, with 100% year-on-year growth. These are the foundations Monalisa has put in place to achieve this growth and they remain the foundations of where she plans to take the business.
1Articulate your vision and get the right people on board
For Monalisa, growth had always been a constant. She had never wanted a two-man operation. But when you’re starting out, it’s not always possible to follow a clear vision. You can have a sense of purpose and fundamentals in place, but you’re also a start-up, and you’ll take what you can get to keep the business operational.
“I was MD of a large communications firm before I struck out on my own,” Monalisa explains.
“I had built a reputation based on excellence, hard work and tenacity, and this opened doors for me, and secured our first two clients. Building an ethical and best-of-breed business has always been important to me. I’m a firm believer that if you continually give your best work, something will come of it, and this is what I look for in my employees. But when you’re launching a business, you also need to be a realist.
“In the early days it was just me, formulating the firm’s strategy, and helping my clients develop the right PR strategy and events for their brand. But I needed people to implement, and when you’re starting out, you’ll take anyone. The shift happened for me when I realised that I couldn’t do it alone. I needed like-minded, great people to get on the journey with me. This would only work if they had a sense of purpose beyond just an ad agency, and I realised that it was up to me to give them that. Once I got it, once I realised that to attract and retain the right people, you need to be able to articulate your vision, it brought about amazing changes, both in the character and the culture of the organisation.”
But articulating your vision is easier said than done, as Monalisa, and countless business owners before her, have learnt. You need to be able to get your vision out of your head and into your employees’ hearts.
Do this: If your goal is growth, having the right people in key strategic areas is vital. To attract and retain the best people for your organisation though, you need a clear vision and culture that they can believe in and add value to.
2Find a clear growth path
To move from where they were, Monalisa recognised a step change was needed for the business. There is only so much room for growth for a PR and eventing agency, and so the next logical move was to become a through-the-line agency. In PR, billings are capped. The advertising space offers a bigger creative outlet, and combining these capabilities makes it possible to offer the same clients more.
“There are two ways to do this. You can either bring in heavy-hitters with a client base and expertise in a different channel to your own, or make an acquisition, and grow the business in that way,” she says.
This is true of any business, operating within any industry. If you want to grow through additional revenue streams and areas of expertise, you can build them slowly and organically, or bring in experts and an existing client base. Monalisa decided to make a strategic acquisition.
“We weren’t a big name in the world of agencies, and didn’t hold the right appeal for a creative with their own clout in the market. We weren’t attractive enough at that time for the level of talent that I was looking for. The only other option was an acquisition. The timing was perfect. The owner of Chillibush Communications wanted to sell the business and exit completely, which suited me well. I didn’t want a partnership; I was looking for new, above-the-line skills and an existing client base. Chilibush had a good reputation in the industry, and a solid client base.”
With the due diligence and an agreement in place, Chillibush and Riverbed merged. Monalisa had achieved her objective of becoming a through-the-line agency, but not without some serious growing pains.
“Chillibush had 30 people, and we had 15. It was a bit like the fish swallowing the whale. I had also debated what we would be called, and I’d settled on keeping Riverbed, instead of Chillibush/Riverbed. I had a very clear vision and purpose, and I didn’t want to dilute that, or lose focus. But it did mean that I was making the conscious choice not to keep the name of an agency that had a good industry reputation, and a larger employee base than my own. Ultimately though, I decided that didn’t matter. There would be teething pains — and there were — but it would be worth it. I just had to stick to my vision.
“It was a challenging time. I was clear about the upside, but it was still challenging. Today we are stronger. We’re clear about our purpose, culture and drive, and what we’re trying to deliver on, but we did lose people during the transition. I learnt a valuable lesson. Once your vision and culture is clear, people are able to determine if it suits them or not. If it does, you have full buy-in. If it doesn’t, it’s better for everyone to move on. It took me time to understand this, and to have the courageous conversations when I needed to. You can’t be everything to everyone. Rather know exactly who you are, and create an incredible space for people who share your vision.”
Do this: Are your decisions short-term money decisions, or long-term growth decisions? From a practical business perspective, Monalisa could have kept the Chillibush name and leveraged it to make money. But even though she believed the acquisition of Chillibush was the best growth move open to her, Monalisa had her own vision — one she worked 16-hour days to achieve. To stay true to this vision, she needed to stay true to the brand she was building. It was a long-term decision, but it’s paid off.
3Keep your clients happy
When you’re on a growth path, there’s a fine line between landing big deals and keeping your existing clients happy. This is even more true when it comes to a merger. Riverbed’s team identified the key clients from both businesses, and ensured they were kept happy.
“We needed to win Chillibush’s clients over,” says Monalisa. “We promised it would be a smooth transition — and kept that promise — plus we unpacked the value of what they could now tap into with our additional services, which was to their benefit. These accounts were key — we had higher overheads and a much larger staff complement to take care of. We also made sure we didn’t alienate existing clients.”
Do this: When you’re on a growth path, communicate with your clients often and openly. Be transparent about your plans, and any challenges you’re facing. Unpack the benefits to them, and ask for support when you need it, while giving assurances that any upheavals are short-lived. You never want to alienate existing clients that have supported you up until that point.
4Build your brand
With the right capabilities in place, Riverbed has now focused on brand building. “We’ve been under the radar,” says Monalisa.
“If we want to start securing really big deals, we need to position ourselves in the minds of the right companies. In this industry most pitches are closed tenders, and the process is managed by two or three search companies. We need to be on their radar.”
To achieve this, Riverbed has embarked on its own PR strategy, but this would have been impossible without the ten-year track record that Monalisa and her team have patiently built up.
“The market needs to know who we are. We’re competing against the huge multinationals. We don’t stand a chance unless we get our story out there. We need to let them know that we can do the job just as well, with better local insights, and probably at a better price — but it’s not up to them to find us. It’s up to us to make sure they see us, and can’t ignore us. That takes time — you need to build up a track record. But once you have, it’s time to make use of it, and show your potential clients what you’re made of.”
Do this: Build the right foundations. Most overnight successes are ten years in the making. You need to build credibility and a good reputation. You need the right systems and processes in place to ensure delivery. And you need the confidence to bid for large tenders — and win them.
5Have a purpose — and share it with the world
“We’ve found that to be considered by clients, you need to share your story. People need to notice you, and want to share your story too because it resonates with them,” says Monalisa.
“For us, we’ve launched an initiative called the Greater Good initiative based on my business philosophies. I’ve always held these philosophies, but it took time and experience before I was able to fully articulate them. People and clients have approached me wanting to work with us because we always strive to do Great things for Good. They don’t always remember all the details of what I said, they just know it resonated with them, and that’s the start of the conversation. Ultimately, people do business with people, and so what you care about, and how you do business, matters.”
Monalisa’s path to articulating her vision began with her epiphany four years ago. She realised that all businesses exist within their environments, and impact the world around them. This can either be a force for good or not. “I started thinking about how we can do great things for good,” she explains. “I wanted to align all our campaigns and the clients we choose to work with to this ideal: Where is the good?
“We’ve broken this down into three key areas: Greater good for our clients, which is doing great work and asking what greater good idea can come out of that campaign, and is there a benefit to people?
“Then we look for the greater good for employees. Is there excellence for its own sake? And how do we build, monitor and recognise greatness?
“Finally, is there greater good in the communities we serve? We quantify the pro bono work we do, and we’ve already put two graduates through university. We’ve found that this philosophy gives us purpose, and keeps us all on the same page. We have a benchmark that we can measure our decisions against, and this keeps us on point and all working towards the same goals, which is essential in a growing organisation.”
Do this: Develop a clear vision and purpose, and align this with your core strategy. This gives you a clear point to benchmark all decisions against. What’s your north star and does the current decision support it? This will help you maintain focus and give you and your team fulfilment.
- It’s all about people. When you go through the process of a structured deal, you tend to do a due diligence on the balance sheets and income statements, but you don’t look at the people, and yet that’s what you’re buying. That’s where the skills lie. This was Monalisa’s biggest mistake – she didn’t spend enough time looking at the people.
- Leadership is a journey. Recognise that your leadership skills are always a work in progress — and work on them. As the head of your organisation, how you lead your team is essential to your growth prospects.
- When you make a decision, own it. Monalisa interrogates everything. However, this means that once she makes a decision, she takes complete ownership of it, and never casts blame if it doesn’t work out as planned.
- Learn to be decisive. When you’re growing a business, you have your head down, working, working, working. And then you look up and realise how many people are now following you. This is often a rough transition for business owners, because you have to own your position — including the tough decisions and conversations that come with it. In this position, decisiveness is crucial. You can’t take time making key decisions that affect your team, business and clients. You need to be decisive.
No man (or woman) is an island
The greatest entrepreneurs recognise the importance of a team. They know that their role as leader is to articulate their vision in such a way that they attract and retain the right employees, who are ultimately able to execute that vision.
Own your decisions
Don’t cast blame when things don’t work out as planned. Take the time to evaluate all possible outcomes, weigh your options, and then own your decisions.
As a leader, you need to be decisive, and the best way to make that a habit is to have confidence in your decisions, good and bad.
Remember, ‘no decision’ is worse than the wrong decision.
When you buy a business, you’re buying its skills and people
Due diligence processes look at a business’s books and finances. They evaluate cash flow, current and potential clients, and growth possibilities. What is often overlooked is the core of the business and what makes it tick: Its people. Spend time getting to know the people — they could be your greatest asset, or your greatest burden.
Watch List: 50 Black African Women Entrepreneurs To Watch
These female entrepreneurs are breaking barriers, transforming industries and inspiring change on the continent.
From creatives, to tech gurus and medical scientists, here’s how these African women have revolutionised their communities through their innovative and sustainable businesses:
- Portia Mngomezulu
- Nandi Dlepu
- Nthabiseng Ramaboa
- Ntombenhle Khathwane
- Sunshine Shibambo
- Mogau Seshoene
- Nontando Molefe
- Thato Kgathlanye
- Nothando Moleketi
- Allegro Dinkwanyane
- Sandra Mwiihangele
- Shakeela Tolasade Williams
- Reabetswe Ngwane
- Mabel Suglo
- Lucy Agwunobi
- Patience Maame Mensah
- Rachel Sibande
- Nneile Nkholise
- Nelisiwe Masango
- Sheila Afari
- Samke Mhlongo
- Kelebogile Mabunda
- Aisha Pandor
- Karabo Mathang-Tshabuse
- Zanele Matome
- Shingai Nyagweta
- Funke Bucknor-Obruthe
- Vere Shaba
- Khanya Mzongwana
- Portia Masimula
- Monalisa Molefe
- Nozipho Dube
- Rapelang Rabana
- Botlhale Tshetlo
- Lebo Mphela
- Sarinah Matema-Morgans
- Tsholo Wesi
- Theo Mothoa-Frendo
- Palesa Sibeko
- Mokgadi Mabela
- Sibongile Sambo
- Tam de Vries
- Constance Mapule Bhebhe
- Phendu Kuta
- Linda Mabhena-Olagunju
- Nobesuthu Ndlovu
- Regina Luki Kgatle
- Hlengiwe Vilakati
- Lilian Muhammed
- Bonolo Mataboge
Starting a business is not for the faint of heart, but that didn’t stop these 50 women from doing it. Across the continent, women have pursued entrepreneurship, some for the very first time at 50 years old, while others have never even been formally employed.
How Jacqui van der Riet Went From Receptionist To Co-Owning A R230 Million Business
Jacqui van der Riet might own an equal share of UDM International, a R230 million business that she’s been instrumental in building from the ground up, with the Chairman, but she started out as just another salaried employee. Not satisfied with answering phones, Jacqui started cold-calling potential customers, writing scripts and reporting conversion rates to clients. Her passion and perseverance helped land UDM its biggest client, and the business just grown from there. Here’s how a young mother with no qualifications got her degree while working and helped build a world-class business, brick by brick.
- Player: Jacqui van der Riet
- Company: UDM International
- Employees: 350
- Launched: 1994
- Turnover: R230 million
- Visit: www.udm.co.za
When the founders of a recently-launched direct marketing company walked into the offices of UDM in 2000, all that greeted them was the anticipation of success.
Jacqui van der Riet exuded confidence and energy. She knew that they were the company to help this dynamic group of people to launch and grow its sales. She’d done her research, written scripts and had her team prepped. They were selling educational policies for children and everyone was excited.
That first day, sitting with her new potential clients in the one small meeting room UDM had, Jacqui instructed her team to walk in and make a mark on the whiteboard each time they closed a deal. Within an hour they’d already come in seven times. The previous call centre that the life insurance company had approached had concluded that this sales campaign was not viable. The relationship kicked off the moment UDM proved otherwise.
Jacqui and her partner knew that this was their chance to build a brilliant business relationship and she put her head down, worked hard and figured it out as she went along. This was UDM’s chance. 20 years later, UDM’s turnover is R230 million.
Here’s how the woman who was hired as a receptionist and general admin person for a small call centre start-up went from earning an average monthly salary to owning 50% of the direct marketing machine she and her business partner have built from the ground up.
From PA to prodigy
Jacqui’s interview at Universal Database Marketing was far from usual. She met her boss-to-be at a lunch-time interview at his office in Randburg. Her goal was to negotiate a higher salary than she currently earned. She’d been told he’d already interviewed many women without finding the right person, so she felt she had negotiating power. She was 25, had two small children, was studying a BCom degree through Unisa, and hated her job at a legal firm, where she was constantly reminded of the pecking order, but didn’t see real room for growth.
She left the law firm for a job that paid almost double what she had been earning, but had no clue what UDM did, or what would be required of her. The company was a small start-up, direct marketing call centre. Its monthly turnover was low, like any new start up, and Jacqui was justifiably concerned that if that didn’t increase — and quickly — she wouldn’t have a job for long.
Her job description was personal assistant to the owner. Aside from the owner there was one other employee — a telemarketer who worked from 9am to 12 noon calling an insurer’s clients whose policies had lapsed and trying to reinstate them. Within days, Jacqui decided to start making sales calls as well.
“At first, I just wanted to see if I could do it,” she says. “I’d never even been exposed to a call centre before, and I saw it as a challenge, a way to learn new skills, and maybe even a way to make sales and boost the business.
“I soon realised that I didn’t only want to make calls, but I wanted to report back to our client on how we were doing, so I kept a record of how many dials we made, the number of contacts, and how many contacts were converted into sales. It was a very manual process — we kept records with paper and pen, and had little tape recorders that we needed to remember to take off pause to record each call. But the client loved the feedback. They were impressed with us.”
And then the founder of the company relocated to London, and sold the business to his brother, Jacqui’s partner and 50% co-owner of UDM today. “He asked me if I thought we could really make a go of it. I’d been learning a lot simply by doing the work — I was writing and tweaking scripts, tracking everything, and starting to learn the industry. I definitely wanted to give it a go.”
Like his brother, Jacqui’s new boss had connections in the financial world, and slowly they started signing clients, but always for small sections of each institution’s portfolio.
“We couldn’t take on permanent staff, but we needed people on the phones, so we turned to students,” says Jacqui. “We paid R20 per hour, and each student had to work 20 hours a week. I wrote the scripts and trained them, loaded the sales, created reports, and slowly figured out how to set targets and even discipline them. Remember, these were students, and we had nothing to do with their chosen careers. They were just there for the money. It was a big learning curve for me. I remember the first time I had to tell them that I was employing them to work, so could they please do what I was paying them to do. My hands wouldn’t stop shaking.
“I was learning everything on the fly. My financial management coursework helped me to develop targets, but there’s no degree for sales. If a script didn’t work I changed it. I made sure I still spent time on the phones so that I could see what worked, and what needed to be adjusted. I made sure that I was learning something new each and every day. I also tapped into my network — I called former employers and told them what I was doing and if they thought it would work. I was never afraid of asking ‘dumb’ questions. If I wanted to know something, I asked. It’s the only way to learn.”
With her hands firmly on UDM’s tiller, Jacqui believes the business got off to a slow, but sensible start. “Everything we did was with the mindset that it could be done,” says Jacqui. “I think that’s incredibly important. We never allowed ourselves to think that something couldn’t be done. We looked for solutions instead, and changed anything that wasn’t working, or wasn’t performing as well as we wanted it to.”
UDM’s big break came when a new life company called us in. Jacqui and her partner knew they had one shot to impress them, and she wasn’t going to let it slip through her fingers.
Be like Federer
Once they signed with UDM, the life company requested exclusivity. They wanted Jacqui and her team to focus exclusively on their products. UDM agreed. They would work out their current contracts, but they wouldn’t renew them, or take on new clients.
Putting all of your eggs in one basket is always a risk, but Jacqui also saw the opportunity. “Nothing is ever iron-clad, and there are always risks, but we were getting in on the ground floor with each other. Our success would rise or fall together. I believed it was a worthwhile risk and I still do. We understand each other, we speak the same language, and our values align. At the time we are the life company’s sale’s arm — we just happen to be independently owned. We both think this keeps us focused”
While the partnership has been fruitful for both businesses, there have been exciting challenges, most notably with the structure of UDM’s sales force.
“When we launched we were selling the life company’s difficult campaigns. From there, we started relatively easier and more profitable sales campaigns. Because they were more profitable, we were paid a higher fee for them. The result was that I promoted my best sales people onto the easier campaigns — our client paid us more, we paid our top sales people more, and the client benefited as their profits increased. It was win-win-win — until we started noticing the flaw in the entire system.
“We were moving our most talented sales people away from the difficult sales campaigns. The easier sales campaigns were flying, however, the more difficult campaigns were the crux of the business. Our client realised that if we didn’t change our process soon, we would continue to see a dwindling business.
“The realisation was one thing — we couldn’t believe we hadn’t seen the problem earlier, but at least now it was a challenge that we and our client could discuss. That was just step one though. Because we’d moved many of our best people off the vital, yet difficult sales campaigns, we were continually recruiting and training new potential sales stars to replace them. We had set ourselves up for a difficult, sustainable business model.
Companies always get nervous when they change anything associated with top earners, and this was no exception. We knew that if we didn’t do something, we would face a much bigger problem down the line. There was a solution — we just needed to find it.”
Jacqui knew she needed to solve three key issues. First, she had to find a way to convince her top sales people — all of whom were now accustomed to the ‘easier’ sales campaign to move back to the vital and difficult sales campaigns. Second, she had to ensure their high earnings remained the same or even improved, and finally, she needed to ensure that the ‘easier’ sales quantities didn’t decrease because her top sales people were not focused on them.
“I spent a lot of weekend hours figuring it all out,” she says. “I had to work out an incentive structure that ensured the company didn’t lose, our client didn’t pay more, but our staff were positively positioned. In discussions with our client, the first piece of the puzzle was put in place. The fee structure could be aligned with the new sales model. The incentives on the easier sales campaigns was where magic had been happening for 13 years — but there’d be no magic if the number of sales on the difficult sales campaigns diminished.
“Next, I turned my attention to our top sales people. I needed to make it amazing for them. What do people really care about? What would I want in their position? People love titles, recognition, and real perks. And so, we created an Elite floor. There are 28 positions open in Elite, and it’s never full. There are very specific criteria to qualify for Elite, and if you don’t cut it you’re out. You need to be like Roger Federer — you’re only as good as your last game, or in this case, your last months’ targets.
“If you’re in Elite however, you get the title, your own parking space, a weekly massage, food orders from a menu every day, snacks, and access to the Elite Shop when you’ve hit target three months in a row. The shop offers everything from tumble dryers and washing machines, to pool tables. Our Elite team also earn in excess of R100 000 per month if their targets are met.”
Once Jacqui had worked out the offer, she gathered her 20 top sales agents into a room and pitched the vision to them. “When they walked in, many of them had been crying. They’d heard rumours about what was happening, and they were not happy being forced back to the more difficult sales campaigns, so I approached the change from a different angle.
“I unpacked the whole picture: Why the change was necessary, what we would do, what the future would look like if we did nothing, what we could achieve if we made this change, and the structure, benefits and earning potential of the Elite floor. I then asked for four volunteers — the idea was to pilot it and prove it worked. All 20 put up their hands. We were in this together, as a team. We launched two years ago, and we haven’t looked back. Our difficult sales campaigns achieved a 30% growth in our first year, and more importantly, our client’s valuable ‘easier’ sales campaigns remained steady. In fact, the sales to conversion rates increased.
“We now move our most promising trainees onto easier campaigns in their latter weeks of training which has increased our permanent placements. Creating Elite was a risk for everyone, but one worth taking.”
Learning to fly
From taking up one floor in 2000, UDM now occupies two buildings, one with the insurance team, and the other focused on cosmetic sales.
“We’re always excited by new challenges, and our revenue from cosmetics has grown from nothing in 2010 to nearly R50 million, but we had a lot of lessons to learn to get to where we are today. I thought a customer service approach was the right move for a cosmetics brand, but we soon learnt you need sales people. We then moved some of our top insurance sales people over, but it’s a very different product, and that didn’t work either. I needed to move onto the floor, and get onto the phones myself to really understand what this side of the business needed, and from there we could start building the right sales team, structures and incentives.”
This wasn’t the first or last time Jacqui immersed herself in a section of the business. She is always moving between divisions, and regularly gets back onto the phones to test UDM’s scripts and experience the entire process from start to finish.
“When I come in from an outsider’s perspective, I can see if things flow smoothly. We often get used to processes, even if they’re a bit clumsy. The only way to make the right adjustments is if I experience everything myself, first hand.”
Integral to Jacqui’s approach is looking at each individual hub and evaluating how it can become a revenue generator. “We even look at our client services division and evaluate how we can get salaries paid more efficiently. Are we robust enough to pay bonuses immediately, and how do we simplify our systems to make them as flexible as possible? Nothing at UDM happens slowly. I want everything done today.”
In fact, everyone who works at UDM knows that anything can be done in a short period of time if you have a motivated and flexible team.
“There’s no such thing as requisition forms that get sent to one floor, then signed and sent to another inbox for a few days. Things happen immediately — that’s the precedent I set.”
Jacqui knows that to achieve this, she needs to be accessible at all times. “When your staff can see that someone is listening, and that they have power to implement changes, they respond positively. The culture becomes one of action, but they also speak up, and that’s how an organisation keeps moving forward.”
Another key to UDM’s success is incentives; everyone, from cleaners to supervisors, managers and sales people, is incentivised. “We’re very transparent with our base salaries, and the available earnings if targets are met. For cleaners, this means that set bonuses are paid for grocery stock control, the bathrooms being spotless within an hour after tea break and so on. Supervisors and managers have similar incentive structures, but their targets are related to their job scopes.”
According to Jacqui, the process works because of complete transparency. “Each of us knows what we are on and what our targets are. We know exactly what we’re aiming for, and what we need to do to achieve it. The sales agents know what they need to do, every hour of every day.”
Everything in UDM is tracked — Jacqui is copied in on all daily sales tracking reports. “I know what every team has done, each and every day. They have to explain to me why that day’s target wasn’t met, and what they’re going to do to make it up. If we’re 2% behind where we have to be this month for example, we need a plan of action to get 5% ahead — everything is tight and well calculated.”
Jacqui is the first to admit that it’s a tough and fast-paced work environment — but employees who can handle the mental and physical demands of their jobs are well-compensated and experience growth and development in their professional lives.
“I like churn. I’d rather lose the people who won’t cut it early on. This is a tough environment, so we’ve put a lot of measures in place to weed out anyone who won’t make it. We don’t want to waste their time or ours.”
One of those measures is the training academy. Thirty new recruits start a 12-week programme each Monday, but only the best stay on as permanent staff. UDM’s biggest churn is in the first year, but that’s fine. “I don’t want anyone sitting here who doesn’t want to be here and can’t do the job,” says Jacqui.
“I know the job is achievable, but you have to have the right mindset, work ethic and love for the job. I pay attention to the smaller details, for example, how people walk — based on this one small detail, I know if they’re going to excel with us.”
Jacqui is a firm believer that if people are paid well and receive recognition for their achievements, they stay. “It’s a massive learning curve for anyone coming into this business, but once they get it, there’s no way you don’t know where you are, or what you need to do to achieve your goals.
“Some managers make the mistake of expecting and accepting the mediocre. We don’t. Anything is achievable, I know that, and people often just need a leader who can break it down and show how exciting it is to achieve excellence. We’ve learnt that high achievers thrive on structure, under fair discipline and with great recognition. I think we have all of that here. In the first year the reality of the job sets in, and it’s tough. If you’re not making target here it’s quite a difficult place to be. We have high standards, and I’m proud of them. Everyone here has a high standard of living. 63% of our staff have been with us for over two years, and we have 30 employees who have been with us for over a decade. If you fit our culture, you stay — and we help you fly. That’s our ethos, and it’s worked for us.”
Psychology of success
1. Believe in your positive contribution
I wanted to become a partner in the business I was helping to build. When the opportunity arose for me to own equity in the business, I grabbed the opportunity and worked hard to ensure it paid off.
2. The first step of success is to show up and learn
Seize the moment. Be authentic. If you don’t understand something ask the dumb questions — you’re no dumber than anyone else. I’ve learnt that most people are just winging it. You need to learn, so don’t let the fear of looking like you don’t know something hold you back.
3. Figure out what your business needs
Most of what we’ve built started out with logic. I didn’t know anything about telemarketing, but because I got on the phones and started writing scripts, I figured it out. Put your head down and start — the more you do, the more you’ll learn.
4. Look for a way for everyone to win
I aim to please: Clients, the business and the people working for me should all benefit from what we do. This is a big thing for me. I look for win, win, win in every situation — and believe me, solutions that work for everyone can be found if you’re transparent, understand what everyone needs, and explain the business and personal logic of your decisions.
5. I have an innate drive
When I was born I came out checking the competition. This passion to do everything well has really pushed me in life. I always want to deliver better. You need that drive if you want to build something great.
Financial Wellness Coach Nelisiwe Masango Shares Retirement Wealth Advice
Budgeting is by far the biggest threat to wealth planning, says wealth coach Nelisiwe Masango. If you’re part of the majority of people who don’t have a monthly budget or who have one, but don’t adjust it regularly, you could be hindering your financial progress.
- Player: Nelisiwe Masango
- Position: Founder and Director
- Company: Bear Run Investments
- Visit: bearruninvestments.co.za/wp/
What are some of the most common mistakes people make as they embark on their wealth planning journey?
As a financial wellness coach, I’ve picked up a few common mistakes that people make, irrespective of their age, gender or race:
- Only 30% of people keep a record of their day-to-day spending, including receipts that aid in your monthly budgeting regime. Keeping a record of all your expenses, fixed and variable, will help you avoid overspending and being in a deficit at the end of the month.
- Almost 60% of people don’t have enough money left over at the end of the month. This becomes an issue because you need to have an emergency fund that can be accessed within 48 hours, as well as capital to invest for long-term purposes, such as settling your debt, buying a new house, retirement and your children’s education.
- 90% of people under the age of 35 do not have a retirement or pension plan in place. The biggest mistake that young people make is the assumption that ‘tomorrow will see to itself’. It’s of paramount importance to set money aside for retirement, whether you’re an employee or an entrepreneur.
Why are so few people able to retire at retirement age in South Africa?
We’re living in a very materialistic era and for many, its more socially acceptable to drive the latest German car than it is to own a house.
Society is falling victim to instant gratification. A negative attitude towards your financial future plays a significant role in how you view retirement. Having a stable pension plan, for some people, isn’t as exciting as dressing to the nines.
Therefore, we need to create a culture that perceives financial security and sustainability as a goal, especially with the youth. Statistics show that more pensioners are becoming poorer, resulting in some elderly people having to work throughout their 60s and 70s in order to get by. Time is an essential commodity.
The sooner you start saving and investing for your retirement, the easier it will be to make better financial decisions — such as buying a house instead of renting, saving a bigger deposit instead of getting a car on residual. As a result, your life will become more comfortable.
What is the most important thing to remember when planning for your retirement?
Retirement planning shouldn’t be complicated or overwhelming. Well-established companies generally deduct a portion from your salary and put it into a retirement annuity. This shouldn’t stop you from independently developing a pension plan with your financial advisor.
If your employer does not offer a retirement annuity deduction then it’s your sole responsibility to contact reputable asset managers and financial institutions in order to get the retirement plan ball rolling.
Once you have a retirement or pension plan in place, it’s important to check its performance regularly and make changes where necessary.
What happens if you’re in your 30s, 40s or even 50s or 60s and haven’t started saving for retirement?
It’s never too early or too late to start taking charge of your financial situation. The biggest thing you need to consider is your risk profile. As we get older we tend to become slightly risk averse due to the number of dependents and responsibilities that we have. It’s therefore advisable to get a risk assessment conducted prior to making any financial decisions and adjustments. Once you know the type of investor you are then it will be easier to select products that perform according to your expectations and comfort.
5 Simple steps to get you started
Get your finances in order by following Nelisiwe’s five-step plan:
- Create a budget and find out which luxuries you can do without (for example, making sandwiches at home instead of buying at the office canteen). Once you’ve made a few sacrifices, you’ll have extra money to save.
- Write down your financial goals, namely short-term, medium-term and long-term (for example, paying off your credit card, saving for a deposit on your new home or retiring comfortably at the age of 55).
- Take a risk assessment to determine your investor profile and risk appetite.
- Start investing in the products that best suit your profile
- Check these investments at least once a month but keep in mind that investing is a long-term habit and when you get extra money don’t be afraid to top up or increase your investments for a diversified portfolio.
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