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Women Entrepreneur Successes

How Circumstances Forced Jerusha Govender To Become An Entrepreneur And Why She Succeeded

The best start-ups don’t follow the expected norms and restrictions of established industries. They spot gaps, think outside the box, and bring skills together in new and exciting ways.

Nadine Todd

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Jerusha Govender

Vital stats

  • Player: Jerusha Govender
  • Company: Data Innovator
  • Launched: 2015
  • What they do: Data analytics and communication
  • Visit: thedatainnovator.com

Some people are born entrepreneurs

They’re always looking for ways to service a need, solve a problem and make seemingly disparate skills and disciplines work together. Jerusha Govender is one of those people, but it wasn’t until she found herself jobless that she took the plunge into business ownership.

It was at that point — forced into entrepreneurship — that she needed to critically evaluate what she had to offer that the market needed. She had to draw on her experience and what she knew about her industry to come up with an innovative, ground-breaking offering. Here’s how she did it.

Related: Kate Moodley’s Believes Your Self-Development Should Be A Non-Negotiable

Building up experience

Trained in medical science, Govender moved to Johannesburg from Cape Town shortly after finishing her degree.

“Degrees are tricky things for entrepreneurs,” she says. “You need the skills and the theory, but if you’re a creative problem solver, there often isn’t a degree that neatly packages what you want to do. I wanted to use science to help people, but no degree gave me the necessary skills. Only work experience could do that.”

Govender contacted a company in Joburg that she admired and they gave her a job. “It didn’t take me long to realise that this wasn’t the lifestyle I wanted. I wasn’t reaching my earning potential or stretching my creative wings.”

Luckily, she was headhunted and the new position gave Govender the opportunity to combine the data analytics skills she had acquired while studying with tech skills she had developed over her varsity and early career years.

“My creativity was given the opportunity to develop. I was tasked with pulling data and stats together, analysing them and creating infographics that allowed NGOs to easily understand their data and what it meant for them.”

When one door closes…

data-innovator-logo

And then motherhood beckoned. Govender fell pregnant and went on maternity leave, hoping she’d see the close of the project or be moved to a new project.

“Although many contracts weren’t renewed, I believed I was a high-value employee and thought I’d be kept on. Unfortunately, an economic decision was made to replace me with lower level staff instead of keeping me on and essentially paying for my maternity leave.”

Govender was shocked. “It wasn’t what I’d planned at all. But it was also an incredible, life-altering opportunity.

“I had to force myself to stop, think and remain calm,” she says. “This was what I had wanted — to own my own business. I wanted the opportunity to pull all of my skills and experience together and offer something new and innovative to the market. I didn’t want to work in the boxes that I’d been stuck in. This was my chance.”

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

Within a few weeks of her son being born Govender had registered her business, Data Innovator.

Okay. Now what? It’s all fine and well to have the necessary skills and even a great idea, but if you can’t take that idea to market and get people to actually pay you for your product or service, you don’t have a business.

“I contacted everyone I knew,” says Govender.

Use your existing network to get off the ground

“That’s one real plus point to working for a few years before you start your own business. The industry gets to know you, you build up a track record and you develop the necessary experience and expertise to be really innovative in your field.”

Govender let her entire network know what she was doing, and that she was available for project work. “That’s when I realised that even though I had experience and a network, I had no track record as a business owner, and particularly in the framework that I had personally developed. I knew there was a gap in the market, but I also quickly realised that I had to prove it to my potential clients. The only way to prove a hypothesis is to get a case study.”

And so Govender took on some work for free. This is always a tricky position for a new entrepreneur to be in. On the one hand you need to develop a track record, prove yourself and get clients on board. On the other, it’s very difficult to raise your prices and start charging customers who have enjoyed your work for free.

“It was important that I was upfront and transparent about what I was willing to do. I had spotted a gap, and I needed to prove it, but going forward I would be charging. As long as I was straightforward, my clients accepted being charged down the line.”

Spotting a gap in the market

“We’re educated to have a boxed approach in everything we do,” says Govender. “This can be limiting, but it’s also a huge opportunity for entrepreneurs.

Govender’s experience was in the social space, and she recognised that there was a critical need for social development organisations to be able to demonstrate value to their donors.

“Money comes in, but social development organisations aren’t equipped to critically check what’s working and what’s not working. This takes data. For example, non-profits (such as social development organisations, NPOs, CSI, SED, donors and academics) know where they need cash and what they’re doing, but they can’t prove this intuitive knowledge to donors. That takes hard data. The next problem is that hard data is boring. You need to take that data and tell a story. You need to communicate value.”

Related: Funding And Financial Assistance For SA Women Entrepreneurs

This is where Govender comes in. “I read journals in my field voraciously, and so I knew that creative data use was already big overseas, but wasn’t being offered to social development organisations in South Africa. There was a huge gap. I focused on communications. Not the data and analytical side of what I do, but the fact that I can communicate what that data says in a meaningful and compelling way.”

Data Innovator combines strong graphic design, storytelling and analytics, underpinned by monitoring and evaluation (M&E) principles to create an offering that social organisations desperately need.

“I can’t do everything myself, and so I’ve built up a network of individuals who work remotely on a project-by-project basis. Together we offer an incredible service.”

A free project or two, at the beginning, is good to get the ball rolling. Govender’s business is now based entirely on referrals, and they have kept coming in since she entered the market.

“The gap was there and evident, but no one was stepping up to take on the work. It requires a data scientist who understands the importance of the communications side — and actually sells on the communications side.

“I’ve had to be innovative. I’ve had to take risks, carry costs and trust in the value of what I offer. We test what we do for clients first on a single report. Once we prove what we can do, we secure larger contracts. It’s incredible what you can achieve when you believe in what you do.”

Lessons learnt

  1. Business is business. It took me some time to realise that not-for-profits also have budgets and a bottom line. If you can’t prove how you positively impact that bottom line, don’t expect business to come your way.
  2. Understand which stakeholders are affected by your solution. If you want to do business with a company, understand who cares about the project and who it impacts. Those are the people you need to build relationships with.
  3. Bright-eyed idealism isn’t a business strategy. You need to understand the specific objectives that must be met on your client’s side. Look at the landscape strategically: Who are the players? Who do you need to build relationships with?
  4. Build up a team of advisors. I reached out to people in the industry whom I admire and realised that people want to give back. I worked my network and developed a body of people who are offering advice — and contacts.
  5. Never stop networking. Networking is important to source new business and skills. People often don’t realise what they don’t know, so talk to people and find your own new opportunities.
  6. Good skills are hard to come by. Show great contractors how much you value them to keep them on board.
  7. Rushed, bad products cost money. Pay more and get top-class work the first time rather than cut corners and pay to clean up messes. It’s detrimental to client relationships, and when you rely on referrals, this can kill your business.
  8. Work with partners. I work with partners to create a shared value proposition for clients. This gives each partner access to markets, resources and skills that we may not have. For example, Data Innovator partnered with Seed Academy to offer M&E for Enterprise & Supplier Development services to corporate clients, helping them achieve measurable impact of their ESD programmes. Data Innovator provides the M&E skills and knowledge, Seed Academy their corporate network and ESD knowledge. I have access to new markets and Seed Academy is seen as innovative and providing value-added services to clients.

Related: Where Others Have Failed To Execute Prudence Spratt Have Hit The Sweet Spot

Do this

Critically evaluate your skills. What can you do? Don’t think ‘this is my job title’, or ‘this is what my degree says’. Think: ‘What are my core skills that other businesses or consumers need?’ And then package an offering around those skills.

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

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Women Entrepreneur Successes

Watch List: 50 Black African Women Entrepreneurs To Watch

These female entrepreneurs are breaking barriers, transforming industries and inspiring change on the continent.

Diana Albertyn

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Women Entrepreneur Successes

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.

Nadine Todd

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jacqui-vd-riet

Vital Stats

  • 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.

Related: Watch List: 50 Top SA Small Businesses To Watch

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

udm-internationalOnce 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.”

Related: Watch List: 20 SA Tech Entrepreneurs Making It Big In The Industry

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

udm-international-jacqui

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.”

Related: Watch List: 11 Teen Entrepreneurs Who Have Launched Successful Businesses

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.”

Related: 5 Steps To A Multi-million Dollar Business Before 30


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.

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Women Entrepreneur Successes

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.

Diana Albertyn

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nelisiwe-masango

Vital Stats

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.

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

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?

bear-run-investmentsRetirement 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.

Related: Watch List: 50 Top SA Business Women To Watch

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:

  1. 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.
  2. 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).
  3. Take a risk assessment to determine your investor profile and risk appetite.
  4. Start investing in the products that best suit your profile
  5. 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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