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Women Entrepreneur Successes

Xoliswa Daku of Daku Group’s Top Lessons For Growth To Inspire Yours

Xoliswa Daku believes in creating wealth through property developments. This principle has been her guiding star, helping her take an R18 million business to R100 million in under four years, while building a sustainable base of R800 million in assets under management. Her growth strategy has evolved thanks to intense and continuous personal development. These are her lessons in growth.

Nadine Todd

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Xoliswa Daku of Daku Group

Vital stats

  • Player: Xoliswa Daku
  • Company: Daku Group
  • Launched: 2003
  • Turnover: R100 million
  • What they do: Investment, infrastructure and property development
  • Visit: dakugroup.co.za

Xoliswa Daku completed her law degree knowing she would one day be an entrepreneur. At the time she thought she would eventually have her own law practice, instead of heading up a R100-million property development business, with R800 million in assets under management. These are her lessons for growth.

1. Do what you love

If there is such a thing as the first rule of successful business ownership, it’s this: Do what you love. True passion will not only see you through challenging times, but keep you focused on your ultimate goals as well.

Too many businesses water down their value propositions or get distracted chasing revenue, to the ultimate detriment of the company’s long-term growth strategies.

Xoliswa learnt this lesson the hard way, but has significantly grown her asset base and margins since realising her company was losing its way.

“I began my corporate career at a legal firm, and within a year was head-hunted and offered a position at Wesgro, the official tourism, trade & investment promotion agency for Cape Town and the Western Cape,” says Xoliswa.

Related: (Slideshow) Oprah Winfrey: The World’s Most Influential Woman

“Wesgro was full of economists, but they needed a legal person to assist with policy. The move introduced me to the worlds of business development and marketing, and it was then that I fell in love with the whole process of finding greenfield spaces and packaging an entire development deal, from the investors to other business partners.

“When I left the agency a few years later to join an entrepreneurial business that was in the incentives field, it wasn’t long before I gravitated back to this space. My love for it was the deciding factor, and it’s what has driven me, even when things got tough.”

As with many growing businesses, Xoliswa was so busy chasing growth that she lost her way. “When you start out, you’ll do anything to keep cash flowing into the business. I was consulting as well, and would tackle any needs a client had, from legal issues to BEE and marketing queries. The problem was that it diluted our brand. We had grown to a business with an R18 million turnover, and people were constantly asking me what it was that we actually did. I realised my entire business model was reactive, rather than proactive, and it was entirely my fault. I had no chance of growing a large business if we didn’t focus on our core areas.”

Xoliswa made the decision to offload some of the company’s products and focus. This is where passion played its role, because it helped her determine exactly where she wanted to focus Daku Group’s energies.

The lesson: High-growth organisations are proactive, not reactive. No business can be the master of everything. Choose your niche, focus on which opportunities give you the best margins and above all, ensure you’re following your passion. The more specialist a business, the more successful it tends to be.

2. Capitalise on your base

The most successful businesses (and business owners) are exceptionally good at developing a base and then growing it.

For example, Xoliswa launched the Daku Group when she was approached to join the development team for The One and Only Hotel as the project’s BEE partner and shareholder. The reason the team approached her was because of the reputation she had built at Wesgro. Because she came in while the deal was being structured, she was an active partner throughout the deal and development of the hotel.

“If you’re good at what you do, one partnership leads to another,” explains Xoliswa. “The more a market gets to know you and your reputation, the higher your chances of securing a deal. But you also can’t just sit back and expect work and contracts to flow your way. You have to take that solid reputation and make sure you’re getting noticed by the right people. And that takes planning.

“I started out helping other businesses to grow, and then put those lessons to good use in my own company. I also learnt as much as possible about my sector: The various players, the challenges my potential partners faced, and which opportunities worked and which didn’t.

“There’s so much out there, but you need to understand the landscape and what you have to offer before you can approach potential partners and pitch for deals. No one will come find you and offer an amazing opportunity — you have to go out and find it, and prove that you’re the best fit for the deal. To do that, you need a strong base, and that’s built on knowledge, experience, and successful projects that cement your reputation in the market.”

The lesson: If you’re planning for long-term success, approach every pitch, deal and even research strategically. You need to become the expert in your field; your future partners should benefit from working with you, and you need to be able to prove this.

3. Under-promise and over-deliver

Understand your company’s capabilities, and work within them to ensure you over-deliver, rather than over-promise and then let your clients down.

“We were very strategic about the sites we pitched for within the Prasa tender,” explains Xoliswa. The Prasa deal is everything Xoliswa loves: A greenfield infrastructure development project that called for local developers to pitch their ideas around what could be done with the land around Prasa’s interchanges.

“Prasa published an expression of interest. I always pay attention to what’s happening in the space, looking for development opportunities. Once you find out about a project, you then need to market yourself, and think strategically about what the client needs for the entire project to be a success.

“These pitches are at your own expense, so you want to ensure you’re aligning yourself with their needs — otherwise it’s an expensive act in futility that just wastes everyone’s time. When I was at Wesgro, I was mentored by an economist who was nearing retirement. He was extremely knowledgeable and insightful about what makes certain projects a success, and others a failure. For example, he thought Century City in Cape Town wouldn’t work, because the project didn’t include a transport interchange, or residential and office space. He was right. The original developers sold the project and it’s being reworked.

“This gave me great insight into what Prasa needed to successfully launch a national transport interchange. Whilst Prasa presented various opportunities to developers on an open tender system, I opted for three sites and those were awarded to me. I assessed and recognised that I couldn’t do more than that. I believe it’s important to avoid taking on more than you can chew, even at tender stage. It was important to me that the entire project was a success.

“If I’d pitched for more than three sites, I would have been spreading myself too thin, and I knew it. Remember, all the risk areas of the project belong to you as the developer. You’re bringing three things together: The site, resources and capital. But ultimately the risk is yours — the rewards too — but successful projects are completed because the risks have been mitigated.”

This isn’t to say Xoliswa has any interest in being a small business. She’s always aimed high, and wants to move through Africa and beyond. But she’s building careful foundations to ensure a sustainable business that can handle growth and build on it.

The lesson: It’s always good to aim high. Most entrepreneurs have the mantra that they’ll say yes first and then figure out how to do it. In this way, great things are achieved. But you also have to be realistic. Plan for success, ensure you have all the components in place, and then deliver — but don’t over-promise. If you know you have certain limitations, work within them and deliver an exceptional product, rather than over-extending yourself and only achieving a mediocre result.

Related: Celebrating The Multi-Faceted Woman

4. Learning is the gateway to growth

In 2010, Xoliswa enrolled in an Executive MBA at UCT’s Graduate School of Business. When she entered the programme, Daku Group’s turnover was R18 million. By 2014 it was R100 million. During the two-year programme her company’s turnover dipped. This was expected. Running a company while completing an MBA is no easy task, and there were gaps in the business while she focused on her personal and business development.

It had been a strategic decision — some short-term pain and losses for long-term gain.

“My business was seven years old, and I recognised that something was holding us back. We were experiencing growth challenges, and I wasn’t finding a way to move us forward. We had some incredible projects under our belt, but we had hit a ceiling.”

Xoliswa took stock of what she was facing. “First, I was playing across a lot of spaces: Investment and trade, the legal field, women empowerment, and I was struggling to find mentors. People were coming to me to mentor them. That’s flattering, and I want to give back, but mentors have always been critical for me. I felt that my personal development had stalled.”

Studying further seemed to be the only solution. Xoliswa had already completed her law degree, a certificate programme in Economics, the Management Development Programme (MAP) at Stellenbosch University, and a project management course through Cranfield University. An MBA was the next logical step.

“As a lawyer who structured deals, I understood that growth comes from following a clear path. I’d worked on a lot of different elements and now needed to pull those loose threads together. I believed the tools an MBA would give me would help me do that.

“It’s a tough choice. It’s hard work, and you’re spending hours away from your business. I saw the impact of that first hand. Our turnover dropped. But, without the tools and lessons the MBA gave me, I wouldn’t have reached the next level. My growth had stalled. I’d been working on my expertise, my name and reputation. Now I needed to get the right foundations and systems into place for the business.”

The lesson: Great business leaders never stop focusing on their own personal development. The more you learn — particularly across disciplines — the more you’ll achieve. Business courses, business books, podcasts, mentors and associations are just some of the ways you can hone your skills and learn from your peers.

5. It’s all about the balance sheet

One of the biggest lessons Xoliswa has learnt along her journey is that in many respects, a high turnover is just vanity.

“For a long time we were chasing cash, and it led to far too much diversification in the business. For example, I launched a construction company so that we could build our own developments. The result was two-fold. We diluted ourselves too much, instead of staying niche and focused, and we increased our risk exponentially.

“It’s great to say you’re developing a project worth more that R200 million, but your exposure is R7 million. In those terms, it’s not as valuable. Instead, we made the decision in 2014 to partner with experts, shorten our turnaround time for implementation, focus on maximum returns instead of turnover, and to build our assets under management.

“As a result of this shift in strategy — which is designed to build real wealth — our turnover hasn’t grown since 2014, but we’ve grown our assets under management to R800 million, and we’ve increased our margins. The business is in a much healthier space.”

The lesson: Understand your strategy, and what you’re trying to achieve. A high turnover is meaningless if you’ve got poor cash reserves and limited assets. On the other hand, higher margins can be far more valuable than a high turnover. At the end of the day, it’s all about the balance sheet.

Related: Hold the Testosterone: Must a Woman Behave Like a Man to Succeed?


Lessons from an MBA

MBA

An MBA is a large investment, from both a monetary and time perspective. Given the hours of sleep she was losing, Xoliswa was determined to make the most of her Executive MBA through GSB, and to implement what she was learning in her business.

“The reality is that you can be the darling of your industry, with an exceptional reputation, and a decent business — but then the realities of growth set in. Cash flow is a problem, management issues, client issues. These happen to all growing businesses. The question is, what are you going to do about them?” Here are the key gaps Xoliswa identified for her own business.

1. What’s my unique selling point?

I realised that I’d become a jack of all trades within my industry. Daku Group had no clear selling proposition. In fact, we were often asked what it was exactly that we did. You can’t be the go-to player in your industry if no-one is sure precisely what you do. We needed to pare down what we offered, and be more focused and niche. It’s scary at first, but we’ve built a far more robust business by not taking on anything and everything that comes our way.

2. Delegate

I realised I had a disjointed team, with no clear leadership when I wasn’t around. No business owner can be everywhere at once. I needed a senior management team who was on the ground and could build a competent, efficient team. I was outsourcing too much as well, instead of bringing in specialist talent. I realised that I was boxing the business, but not the people. First you need a great team, and then you can build the right financial systems.

3. Understand your strengths

I have no interest in the small stuff. My focus is on creating long-term opportunities through analysis, and providing the right opportunities to investors in synergistic environments. The problem was that even though I don’t like the small stuff, I wasn’t employing people who excel at the finer details. This affected my capital.

As a business owner, your drive, work ethic and independent approach and offering are so important. But you also need to let go. Your teams are the best tools you have to grow your business, but only if you give them the opportunity and space to thrive. Understand what you bring to the business and where the gaps lie, and then find the best people to fill those gaps.

key-business-insights-for-daku-group

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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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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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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Women Entrepreneur Successes

How Teenpreneur Rabia Ghoor Founded A Successful Business At The Age Of 14

At 14, Rabia Ghoor launched her make-up and skincare online beauty store. She made her first sale one year later, and left school to pursue the business full time at 16. Today, this 18-year-old teenpreneur is well on her way to building an empire.

Diana Albertyn

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Vital Stats

  • Player: Rabia Ghoor
  • Company: SwiitchBeauty
  • Position: Founder
  • Established: 2014
  • Visit: www.swiitchbeauty.com

Virgin Group founder Richard Branson. Tumblr originator David Karp. Multiple Grammy Award winner Aretha Franklin. Oscar-winning director Quentin Tarantino. These incredibly successful leaders in their fields all dropped out of high school at the age of 15. SwiitchBeauty founder and ‘teenpreneur’ Rabia Ghoor is in good company.

“I am a freshly-minted millionaire who ended up skipping over the typical life struggles that most young men and women go through that serve to build their character. If I’m not careful, the result will be success without respect, wealth without restraint and power without responsibility — and just like that, things can spiral out of control,” says Rabia, quoting Jordan Belfort’s book Way of the Wolf. 

While her peers prepare for their Matric dance this year, Rabia has just celebrated SwiitchBeauty’s third birthday with a pop-up store in Milpark, Johannesburg. Although she says she wishes she could participate in this rite of passage, thanks to her company pushing out between 2 500 and 3 000 orders a month, “when they’re writing exams, I’ll be holidaying in Mauritius,” she beams.

“The money has been great, but at present turnover is not my core focus. My main purpose is to provide my customers with the best product at the best price and build a sustainable business that will bear fruit in the future.”

From small beginnings to a big idea

When the break bell sounded and all the other kids stormed the playground, a ten-year-old Rabia would set up her stand and sell stickers. By the following year she’d graduated to selling mini buckets as rubbish bins her classmates would use instead of multiple trips to the class dustbin. “I bought them for about R5 each and sold them for R7,” she explains.

Related: The Make Up of Makeup: How One Entrepreneur is Changing the Cosmetics Industry

Then a teenage Rabia’s interest in make-up blossomed into a business idea she pursued part-time at 14. Using the Internet to learn basic product formulation, she established SwiitchBeauty.

“I didn’t sleep at all during that first year,” she recalls. “School was just taking up so much of my time in addition to working on the business that I would sleep at 4am sometimes and wake up at 6am to redo the day.”

SwiitchBeauty was growing, and Rabia had to approach her parents with a risky proposition she hoped they’d agree to, for the sake of her business success.

Taking the leap, and stumbling

“The plan was always to drop out of school,” says Rabia. “I let my business grow for a year in order to show my parents that it’s profitable, I’m making money, I’m passionate about it, and this is what I enjoy.”

In 2016 Rabia left high school, a year after making SwiitchBeauty’s first sale online. But things didn’t go as planned for her business ambitions. “I’d never known what it was like not going to school — I’d never even missed a day from grade one — so I got lazy after that,” Rabia admits.

“I started outsourcing as SwiitchBeauty grew, so I had nothing to do. It was a difficult adjustment because in the past I had to do everything myself, otherwise nothing would get done. Now that I had hired two new employees to handle that, the plan was to focus on research and development, but it was very difficult, especially in a home environment. For a solid two or three months, I’d wake up at 11am, eat, sleep again, wake up, watch series until about 4pm, only leave the room to get more food, and shower in the evening before getting back into my pyjamas. Meanwhile, business went on, but it didn’t flourish.”

Rediscovering that spark

swiitchbeauty

It took a leisurely afternoon on her parents’ balcony and the realisation that she’d left school to pursue her passion and was now not putting in the work, to get Rabia going again.

“I had to prove myself ten times more than kids who finished school and went out and got degrees and stable jobs. That was my motivation. I’m so glad my parents didn’t get involved during my loafing otherwise I don’t think I would have been able to get out of that rut.”

Remembering why she started SwiitchBeauty in the first place helped her focus on structuring her days, listening to motivational podcasts and growing her business.

She recruited four more staff as business boomed. “I think the biggest misconception, especially with younger entrepreneurs in tech start-ups, is that they think the bigger the business gets, and the more people you hire, — the easier the workload becomes. Its a huge lie!”

Related: Business Plan Format Guide

Filling a gap in the market

“When I first became interested in make-up I realised that there was a gap between the big expensive brands and the pharmacy cosmetics, in terms of both quality and price,” Rabia explains. “I think my greatest advantage was that prior to starting a beauty company, I’d spent a lot of time playing around with existing products, seeing which ones I liked. When I started the company, I began asking myself why I liked those specific products, and it usually came down to specific ingredients and manufacturing techniques. Doing research on these ingredients and techniques was very beneficial.”

Getting back into the swing of things involved researching local and international developments and seeing the gaps there as well. “That motivated me to get the South African beauty industry on par with international trends.”

The outcome of her research was establishing SwiitchBeauty as the loudest, cruelty-free, trendsetting, innovative make-up brand for all women who were tired of being told they needed cosmetics to feel better about themselves, and wanted to be more involved in what they wanted in a make-up brand. “SwiitchBeauty is an inclusive, affordable beauty brand that speaks to women, and not down to them, as many cosmetics companies have done for a very long time,” says Rabia.

Daring to be different

“We’re more educational than advertising-focused. We sell an idea and not a product.”

And how exactly does she set her brand apart from the multiple beauty industry names out there, vying for every woman’s attention? “We constantly engage with our 56 000+ followers on Instagram, requesting feedback, new ideas and recommendations for products, events and educational tutorials on how to use our products.”

The influence of social media has helped self-proclaimed former tech novice Rabia to build her business through the Internet. She’s worked hard to establish a healthy social media following, to the benefit of her business. “Social media has been a gift to our generation of businesses,” she says, adding that SwiitchBeauty’s use of social media influencers has increased its customer base tremendously.

Building a beauty business empire

With a constant flow of deliveries leaving her Laudium office in Pretoria, Rabia’s focused on getting SwiitchBeauty to be every South African woman’s preferred beauty brand, before conquering the markets beyond our borders. “I am focusing on dominating the market of South African beauty enthusiasts before branching out into the more competitive international field, “she says. “I also feel that for now, the rest of the world is very well taken care of in terms of make-up.”

Related: 7 Rules To Master Your Start-Up Success This Year


LESSONS FROM AN ECOMMERCE TEENPRENEUR

1. Social media is a significant tool:

“Build up a following even if you don’t have a product yet. Get people in your industry interested and when you do launch the product they will trust you enough to become customers.”

2. DIY your website and logo:

“Our generation has been blessed with the greatest educational resource — the Internet. Throughout my journey I really have learnt to use this asset to my advantage. Being so young and inexperienced when I started my business, there was much that I had to self-teach. The Internet made that super easy.”

3. Choose a suitable platform:

“For me it was Shopify, as their cheapest package is around $24 monthly, but you get so much so it’s worth it.”

4. Get your finances in order:

“I learnt the hard way after not noting my expenses and thinking I had more to spend than I actually did. My uncle is money savvy, and helped me fix my finances.”

5. Seek support from a mentor:

“I think a lot of aspiring entrepreneurs don’t get the support they need, especially the young ones. Thokoza Mjo from Beyond the Lemonade Stand really helped mentor me after I won one of the company’s competitions. Working with her has opened up so many doors for me.”

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