Rita Zwane, founder of Imbizo Shisinyama, believes that the road to economic freedom for the majority of South Africans is as hard as the road to political freedom was. And she should know. In 1997, after many failed attempts at starting her own business, Zwane found herself walking the streets of Tembisa looking for yet another new business opportunity.
A few weeks later, armed only with the right attitude and support from her family and community, she set up a small shisinyama on a street corner in Ivory Park. With only a single pot, gas griller, display fridge, gas paraffin stove and two employees, the concept of Imbizo Shisinyama was firmly established.
Her secret to success was the commercialisation of the traditional South African braai – something that is an ingrained part of all South Africans’ heritage and culture. Today, shisinyama has become one of the biggest growth areas in the food, beverage and hospitality industry in South Africa.
“I had tried several other business ideas, but after looking at my environment and
understanding the needs of my community, I believed that a shisinyama was the most viable business opportunity and one that would have a lasting impact on my surrounding community,” says Zwane.
“It’s been 15 years since I walked down that lonely road in Tembisa and I now have a successful growing business that employs more than 30 permanent staff members who receive provident fund and funeral cover benefits,” Zwane says.
“We have also made a commitment to help uplift our surrounding community by involving people from the area in the everyday running of the business. On weekends, we use the services of car guards and braai masters, initiatives which help to support a further 20 families. We have also outsourced our cleaning service and security in an effort to develop other small local businesses. I am merely extending to others the opportunities that have been presented to me and I want to continue to have a positive impact on my community.”
Six years after launching her business, Zwane took advantage of the opportunities government was offering to take her business to the next level. In 2003, with the granting of temporary liquor licenses by the Gauteng government, Imbizo Shisinyama was granted an 18-month window in which to obtain a permanent licence.
What seemed an impossibility became a reality and the already popular shisinyama was on the road to growth and prosperity.
Zwane believes that there are a multitude of opportunities out there for young South Africans wanting to enter her industry, especially in their own communities. “But you need to be out there, ready to grab those opportunities, to work hard and to patiently wait to see the results of your hard work. There are no quick wins.”
She cites partnerships between big organisations and the FoodBev SETA, many of which offer opportunities to suitable candidates for potential placement in internship programmes as an example. This gives young people practical work experience and in-service training.
“It’s an ideal opportunity to gain real world working experience. The interns are placed in jobs within the industry and receive a monthly stipend from government to cover their costs and expenses for a full year. If the interns demonstrate real potential, hard work and commitment then many of these internships become permanent jobs – but only for those youth who show initiative and apply themselves.
In line with supporting the continued growth and development of the South African youth, Imbizo Shisinyama is launching a dedicated bursary fund at its 15 year anniversary celebration, targeting the youth from Zwane’s community.
“Through this programme we hope to promote economic freedom by giving youngsters from our community the opportunity to gain a solid education in the food, beverage and hospitality industry that will also assist them to become successful entrepreneurs, and maybe buy an Imbizo Shisinyama franchise in the future. A good education will enable these youngsters to face the world with confidence. We also hope to eliminate the perception that restaurants in the township areas are sub-standard.”
A word from the wise
Rita Zwane believes there are four key character attributes that young South Africans should be striving towards.
“Nothing can replace good old fashioned hard work, discipline, keeping a positive attitude and then of course patience. Our youth need to take advantage of the many opportunities presented to them and, combined with these character attributes, success is inevitable.”
1. Hard work
Research has shown that nobody is great without work. There’s little evidence of high-level performance without experience or practice. Reinforcing that ‘no-free-lunch’ finding is vast evidence that even the most accomplished people need around ten years of hard work before becoming world-class, a pattern so well established researchers call it the ten-year rule.
The one quality that no entrepreneur can be successful without is discipline. To transform a dream into a business reality, you have to have the discipline to do the hard work, even doing the least fun parts of running a business, like book-keeping.
When you’re the business owner, there’s no one to keep you at work except yourself — and there are no short-term consequences for leaving early. But remember that if you don’t show the discipline and put in the hard work your dream of owning your own business will not last long.
3. Positive attitude
Your attitude rubs off on your existing and potential customers, your staff, your suppliers, your investors and all those you come into contact with. If you maintain a positive attitude, this will be infectious. Everyone in your company will feel positive and customers will want to do business with you. This in turn will help you to maximise the performance of your business.
There is much media hype around getting ‘rich quick’, but most ‘overnight successes’ in business take at least seven to ten years to be truly successful. Most entrepreneurs who sell their company have been building toward that sale for a decade or more.
Being patient is not easy, but it enables a longer-term view of your company’s success. Impatience can actually be a company killer. It tempts business owners to constantly change direction and stray from the chosen path.
Player: Rita Zwane
Company: Imbizo Shisinyama
+27 (0)11 312 2468,
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.
- Player: Portia Mngomezulu
- Company: Portia M
- Est: 2011
- Visit: www.portiamss.com
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.
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
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.”
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.
Erna Basson Of Erabella Hair Extensions On Acting The Part And Finding The Gap
Erna Basson says that building your own empire is one of the toughest things you can do, but also one of the most rewarding. She unpacks the lessons she has learnt that have helped her launch and grow three businesses into sustainable brands.
- Player: Erna Basson
- Company: Erabella Hair Extensions
- Est: 2017
- Visit: www.erabellahairextensions.com
- Career highlights:
- Named South Africa’s top entrepreneur under 30 for 2017
- Global female entrepreneur of the year 2017
- Top 100 most influential young South Africans 2017
- Interviewing Grant Cardone — 2018
- Opening speaker at the Mega Success event 2017 in Los Angeles.
Originally from Bloemfontein, Erna Basson has always been highly competitive. She completed a four-year bachelor’s degree in three years, while holding down several part-time jobs. She was first bitten by the entrepreneurial bug in her second year at UFS (University of the Free State). Her class was struggling with business law, so she read the text book and produced an annotated summary that she then sold to desperate students.
Today, she heads up Erna Basson Ltd, a business coaching and speaking venture; Woman Entrepreneur, a global platform empowering and educating female entrepreneurs from around the world on how they can start and scale their businesses; and Erabella Beauty Global, a premium hair extensions brand available in South Africa and globally.
On acting the part
“I was a cheerleader for the Cheetahs while I studied, and I also worked as a hostess at Cubaña,” she says. “I got the opportunity to do tons of promotions for liquor brands and that experience taught me how important it is to always be on point and professional, as the event sponsors could pitch up at any time to check on what was happening.”
After moving to Port Elizabeth with her now husband, Nellis Basson (who is also an entrepreneur), she started working for Gestetner and was out on a sales call at Distell when she heard the regional manager complaining about bad service from an events company. “I said to him, ‘if I can have a company up and running within 30 days, will you make use of my services?’ and he said ‘yes’. I walked into the company as an employee and walked out of the company with a new life and opportunity, and this has taught me a valuable lesson that I still follow every day. Take advantage of every opportunity, even if it scares you. You need to be out of your comfort zone to grow.”
That was one of the first principles she learnt, and which she speaks about to her global audiences.
“The bigger the problem you are solving for people, the more valuable you are to them, and the more money you will make.”
People are always searching for solutions. They will always look for better, faster and smarter ways to accomplish tasks. Erna knew that to grab her customer’s attention, she had to start by solving their problems. “If you can take a person from point A to point B, by identifying their crucial problem and then offering to solve it, you will be able to create a real business that matters.”
Another important thing happened that day. She went back to her boss and immediately told him what had transpired. “Honesty, loyalty and integrity have always been the three key pillars of my business, starting from then, and it paid off — Gestetner became a client soon after.”
She started the promotions business with no staff and she didn’t know anyone in Port Elizabeth. “I called up a friend of one of my husband’s friends and asked her to give me ten phone numbers, and then I asked each one of those women to give me another ten. I sold my Citi Golf so that I could have a small start-up fund, and then the business just took off. We got clients like SAB, MTN, Sony, Mango, Maybelline and L’Oréal. I was earning R450 000 for ten days’ work at the age of 23.”
She soon had seven permanent employees, and more than 500 promoters working on campaigns across the country. “Within a couple of years, I had created systems and processes, which enabled the company to reach its goals and function independently without having me in the business, making it a perfect opportunity to sell and move on to the next challenge.”
Finding the gap in the market
It was just before Erna got married that she came up with an idea for another venture — while she was looking for venues, dresses and décor ideas. “I kept on wishing there was one place where I could find everything related to weddings, and then I thought why don’t I create one?” That was how website and magazine Majestic Weddings was born, an online directory and monthly magazine. After growing it into a successful wedding planning tool, she sold that company in April 2017, through an international business broker, and used the profits to launch her hair extension company Erabella.
Transitioning from services to products
Erna had never run a product-based business before, but there’s a first time for everything, right? Problem is, product businesses are extremely hard to build and get traction for. They require upfront capital and investment, as well as a whole lot of excitement. Erna certainly had the latter, believing that every woman has the right to have gorgeous thick hair.
But there were some challenges:
- The output of a service-based company is intangible, but a product-based business sells goods that customers can see and touch.
- A services company does not have to keep goods in stock or maintain an inventory. The service is created or sold as and when the customer
- needs it.
- Service-based companies do not have to put up capital — they provide a service and the customer pays for it.
- In the service industry, you have maximum control — when it comes to a product based company, you sometimes don’t have control over certain things (like a late courier, or late imports, or increase of exchange rate) but it serves as a great opportunity to apply more systems and processes to lower the risk.
“I had to buy stock for the first time. Different lengths of hair extensions, and different colours. Suddenly, I had invested more than R1 million, just like that. What’s more, in South Africa, there is a 20% import duty, which immediately raises the price of your product, making it more difficult to compete globally.”
There was another problem too. Erna had decided that Erabella would be an online business, but it didn’t grow as fast as she wanted it to and she quickly had to change the business model. “That’s when I realised that you cannot take business personally. The minute you invest emotionally, you will make mistakes. When something is not working, you need to take immediate action and make the necessary changes. Nearly every successful company since the beginning of time has had to change strategy and direction to survive and grow.”
She also learnt about the importance of starting with the end in mind.
“If you want to make $1 million, write that figure down and reverse engineer. If my hair extensions are priced at $250, I will need to sell 4 000 sets per year, which means 11 sets a day. Instead of being dumbstruck by that big figure, I’ve now got something manageable to work with. It’s that old story about how to eat an elephant.”
Two can be better than one
Another key lesson Erna learnt was that you can do anything, but you can’t do everything. “When I started Erabella, I had one staff member in Johannesburg, and lots of competition. I had to do everything, from accounts, social media, business development and so on, but now we have an entire team in each department. The business grew too slowly and I realised that doing it alone was not going to work. I found a business partner in Cape Town, Karel Vermeulen — a very successful businessman who owns a personal care brand — and I knew we would be a great fit. I knew I could trust him with Erabella SA because he was invested, and I moved on to growing Erabella New Zealand and Australia.”
As a result of the partnership, the business is soaring. Today, Erabella hair extensions are available in South Africa, Namibia, Australia, New Zealand, Hong Kong and Dubai, with Canada next on the list.
That personal investment principle is one that Erna has applied in her coaching business. People do not appreciate what comes free, she says. “If I coach you at no cost, chances are you will say the programme did not work. But if I charge $6 000 a day, I can guarantee that you will do the work required to make it a success, because you have skin in the game. You will value and appreciate the process.”
Related: The Glamorous and Sleek GHD Offices
Erna’s key principles
- In the words of Grant Cardone, author of The 10X Rule, follow up, follow up and follow up: ‘90% of business lies in the follow up’. “I always do, and believe that you should follow up so much that they tell you to go away, and then follow up again two weeks later. I chased a client in Cape Town for two years. When their promotions vendor let them down, I was top of mind and I got the deal.”
- Never focus on the 10% that’s negative; focus on the 90% that’s positive: “We all need to have bad days in order to appreciate the good ones. When a client says no, see it as a new opportunity (take the negative from the word no, and turn it into a positive new opportunity) to recreate your strategy.”
- When people say no, ask them why not: “If I don’t close a deal, I ask, ‘What is the reason we did not do business today? Objections are only complaints — find a solution, and you will win all the time.”
- Don’t ask how: “Focus on the what and the who. What do I need to do to achieve my objective and who do I need to speak to? The ‘how’ will take care of itself.”
- You are 100% responsible for your business: “Don’t blame the economy, the government or your staff. If you are not successful, it’s your fault.”
Alphabet Soup Founder Nikki Lewin Discusses How They Compete With The Big Boys
Advertising doyenne Nikki Lewin reveals the importance of personal brands, living your values and finding your niche in the market.
- Player: Nikki Lewin
- Company: Alphabet Soup
- Awards (2017): MOST Awards Winner of Traditional Specialist Media Agency; MOST Awards Runner-up for Media Agency of the Year; the Adfocus Media Agency of the Year Finalist
- Media Billings: R100 million annually
- Launched: 2000
- Visit: www.alphabetsoup.co.za
Why did you choose entrepreneurship over a corporate leadership position?
The decision to start my own business was part of my DNA. In 1999 I was offered two media director positions of multinational agencies. I knew I wanted to make a difference and be in control of my own destiny, and that meant launching my own business instead of joining another big multinational.
It basically boils down to a couple of key factors — your appetite for risk, self-belief and knowing why you would walk away from the safety net of a guaranteed income and a defined job spec.
How are you competing against those same big multi-nationals?
When I launched Alphabet Soup I believed there was a market need for specific boutique offerings. I’d been in contact with numerous clients who wanted to work with uniquely South African companies and keep things local.
The more market research I did and the more I tapped into my network, the stronger I became of this conviction. It’s important to do that legwork before you start anything, and my experience in the industry gave me the insights I needed to be confident in my decision.
That same research revealed that we needed to offer our clients a complete, 360-degree solution, and so we created an agency that covers all aspects of advertising media — from strategy, planning and media owner negotiations, to market analysis, below-the-line, promotions, sponsorships and digital media. We also have clients that need media placements throughout Africa, and have since branched into that field as well.
This broad focus, our independent positioning, and the accolades we have received over the years allow us to be competitive, even though we are relatively small in comparison to many of our competitors. You don’t have to be big to be the best. You just have to punch above your weight.
We don’t aim to be the biggest agency, just an agency that delivers intelligent and professional media solutions. We do this by ensuring we are completely up-to-date with the latest strategic thinking in our industry, and we invest in staff training. It’s up to us to be able to educate, inform and guide our clients through key media knowledge.
How important are awards?
The topic of awards centres around whether they add real value to the business or not. In some cases you are nominated, in others you need to choose to enter. It takes time and effort to enter awards programmes, so there needs to be a strong business case for doing so.
We’ve found that the whole process — particularly winning — builds the agency’s reputation and is good for staff morale. For me however, it’s just one component of the journey.
Client longevity is critical and becoming an intricate part of their business is more advantageous to the agency’s success than any award. That said, awards do lend credibility to your brand if a client hasn’t worked with you before, but referrals and word-of-mouth will ultimately lead to business.
The MOST awards are about peer recognition. How important is this and why?
I have always set high standards, both personally and for my staff, and the same applies to media-owner interactions with clients. Our relationships with our media partners are based on integrity, respect and a mutually-beneficial relationship that relies on a cerebral output in order for our clients to have successful campaigns.
We have placed in the top three for the past ten years at the MOST Awards, and it was obviously great to win in 2017, but awards should never let you rest on your laurels. You can’t take past successes for granted. We need to continue to focus on building key relationships in all aspects of media.
How important is a personal brand in building your own business?
My personal brand and business brand are essentially the same. I try and live to the values that are key to me and those that I try and teach my children. The values of respect, honesty, trust and integrity are paramount in my personal life as well as within my business. No matter where you are or what you do, people are always going to form an opinion about you.
My view is that you need to make sure it counts. Stand up for what you believe in, live with passion and make sure you have educated and informed opinions. It’s important that people know where they stand with you and I generally am pretty forthright in my opinions.
How do you separate yourself from the business brand, so that clients want to work with the business, and not just you?
After 18 years in the market, Alphabet Soup has become a brand in its own right, no longer ‘Nikki Lewin’s agency’. I’m just one part of it. I have a supportive team and we have earned our reputation with clients. I’m still always available to clients though, and I’m intricately involved in every aspect of the business. To be successful you need to have your finger on the pulse of your business.
I have always believed in keeping my work life and personal life separate in order to try and achieve a balance. Of course, this is not easy with two young children. Fortunately, my husband was in the advertising business early in his career and is incredibly supportive, while running his own retail and travel business.
Is it important to build a reputation in the industry before launching your own business?
I believe your reputation starts with your first day on the job and every interaction you have thereafter. It’s up to you how you manage that reputation. Respect is earned and if you are passionate about what you do and what you believe in, that transpires into your own DNA. If you’ve built a strong reputation, this will obviously give any new venture you embark on added credibility, but you can build your reputation as a start-up as well. You just need to be consistent and hold true to your values.
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