Kerryne Krause-Neufeldt launched her first business when she was 23. She was young, full of energy and passion and had a knack for making things happen.
Those same traits had their downside as well though: She did things too fast, had no staff discipline and didn’t look at the fine print.
The result? Industrial sabotage. Krause-Neufeldt lost everything, and had to start painstakingly from the beginning, with no money in the bank, and having lost the agency for Karen Hertzog Oxigenated Creams, a local market she had personally grown.
“I was determined not to be a failure,” she says. “Losing a business is painful, but it was also a huge lesson, and every choice I’ve made since then has been informed by those early experiences.”
Learning the hard way
Krause-Neufeldt has five core lessons that she has implemented and acted on in her new business, I-Slices Manufacturing.
- The devil’s in the detail. “Dot every i and cross every t. My reps were able to conspire with my investors to take the agency because I hadn’t carefully evaluated the original contract. It wasn’t a good contract and I had no idea. I was desperate for cash and never questioned it until it was too late.”
- ‘I’m not a finance person’ is no excuse. This was Krause-Neufeldt’s biggest lesson. “It’s easy to abscond the numbers to the ‘finance guys’, especially if you don’t have a background in finance. I didn’t even know we weren’t paying PAYE, and ignorance is no excuse. You need a basic understanding of numbers at the very least.”
- Do an accounting course. “I did accounting for dummies, followed by financial management workshops. It was time consuming, but worth it. It was the only way for me to truly be in control of my own business. Now I can spot problems in the figures at a glance.”
- Manage, measure and hold your finance department accountable. “Today we outsource this function, but I still check and double check everything. I expect the company I outsource to to be able to answer any questions I have immediately.”
- Don’t let staff issues slide. “We catered to the salon market and by the time they started complaining about poor service it was too late to start adequately disciplining or monitoring my employees. The measures I put in place just caused anarchy and rebellion. These measures should have been in place from the beginning.”
Related: How RubyBox Got Started
Getting started… again
Launching a business requires two core things: A market, and a product that the market wants and is willing to pay for. Krause-Neufeldt had previously come across an Italian eyemask.
“It was gimmicky, but interesting. It soothed the eyes, which always struck me as something everyone needs — lack of sleep and emotional days can lead to tired, puffy eyes, and there’s the added relaxation factor of closing and soothing your eyes for five minutes.”
Now looking for a new product to bring to market, Krause-Neufeldt once again thought about the eyemask. “I wanted to stay within the salon market. I understood it, and I knew what consumers responded to.”
The problem was that the product she had wasn’t in line with the quality she wanted. “I needed to develop my own product,” she recalls. Which is exactly what she did. It took seven years to find a polymer, develop it and take it to market, but the wait was well worth it, and her product, eyeslices, was born.
“When I look back, the lesson that stands out clearest in my mind was the fact that I never stopped pushing. An old contact of mine introduced me to the CSIR, which is where I found the polymer that would become the base of eyeslices,” she explains.
“It was a single page recipe that needed a huge amount of development though, so I set about teaching myself how polymers work. I bought a slow cooker and did experiments in my kitchen. I worked odd jobs to keep the bills paid, and poured everything I had into developing the recipe.
“Research at the CSIR had never been taken far enough, and so no-one could answer any questions I had. By converting a room in my house into a lab and creating a controlled environment, I was able to start the R&D process.
“Then, in desperate need of some assistance and R&D funds, I approached Sasol Polymers. I’d spent everything I had on a licence and performing my own tests, but now I needed to get what I had market-ready.”
The contact Krause-Neufeldt made at Sasol had previously worked at the CSIR and was familiar with the recipe. “It was the most unbelievable stroke of luck,” she says.
The sacrifice to get the business off the ground continued though. “It was now 2003 and I had gotten married, which meant my decisions affected my husband as well. We needed to make the choice together. Did I stop developing eyeslices and get a regular job, or would we pour everything into these final stages, even though it meant cashing in policies and taking big risks. His decision to back me has never wavered.”
I-Slice Manufacturing officially launched in 2007, and over the years patents have been filed, and improvements and advancements made to the product and packaging. “We’re currently in 22 countries, we have IDC funding behind us, and we’re just set to grow,” smiles Krause-Neufeldt.
Related: Taking on the Wellness Sector
- Player: Kerryne Krause-Neufeldt
- Company: I-Slices Manufacturing
- Est: 2007
- Contact: www.eyeslices.co.za • +27 (0)10 224 0134
How Jacqui van der Riet Went From Receptionist To Co-Owning A R230 Million Business
Jacqui van der Riet might own an equal share of UDM International, a R230 million business that she’s been instrumental in building from the ground up, with the Chairman, but she started out as just another salaried employee. Not satisfied with answering phones, Jacqui started cold-calling potential customers, writing scripts and reporting conversion rates to clients. Her passion and perseverance helped land UDM its biggest client, and the business just grown from there. Here’s how a young mother with no qualifications got her degree while working and helped build a world-class business, brick by brick.
- Player: Jacqui van der Riet
- Company: UDM International
- Employees: 350
- Launched: 1994
- Turnover: R230 million
- Visit: www.udm.co.za
When the founders of a recently-launched direct marketing company walked into the offices of UDM in 2000, all that greeted them was the anticipation of success.
Jacqui van der Riet exuded confidence and energy. She knew that they were the company to help this dynamic group of people to launch and grow its sales. She’d done her research, written scripts and had her team prepped. They were selling educational policies for children and everyone was excited.
That first day, sitting with her new potential clients in the one small meeting room UDM had, Jacqui instructed her team to walk in and make a mark on the whiteboard each time they closed a deal. Within an hour they’d already come in seven times. The previous call centre that the life insurance company had approached had concluded that this sales campaign was not viable. The relationship kicked off the moment UDM proved otherwise.
Jacqui and her partner knew that this was their chance to build a brilliant business relationship and she put her head down, worked hard and figured it out as she went along. This was UDM’s chance. 20 years later, UDM’s turnover is R230 million.
Here’s how the woman who was hired as a receptionist and general admin person for a small call centre start-up went from earning an average monthly salary to owning 50% of the direct marketing machine she and her business partner have built from the ground up.
From PA to prodigy
Jacqui’s interview at Universal Database Marketing was far from usual. She met her boss-to-be at a lunch-time interview at his office in Randburg. Her goal was to negotiate a higher salary than she currently earned. She’d been told he’d already interviewed many women without finding the right person, so she felt she had negotiating power. She was 25, had two small children, was studying a BCom degree through Unisa, and hated her job at a legal firm, where she was constantly reminded of the pecking order, but didn’t see real room for growth.
She left the law firm for a job that paid almost double what she had been earning, but had no clue what UDM did, or what would be required of her. The company was a small start-up, direct marketing call centre. Its monthly turnover was low, like any new start up, and Jacqui was justifiably concerned that if that didn’t increase — and quickly — she wouldn’t have a job for long.
Her job description was personal assistant to the owner. Aside from the owner there was one other employee — a telemarketer who worked from 9am to 12 noon calling an insurer’s clients whose policies had lapsed and trying to reinstate them. Within days, Jacqui decided to start making sales calls as well.
“At first, I just wanted to see if I could do it,” she says. “I’d never even been exposed to a call centre before, and I saw it as a challenge, a way to learn new skills, and maybe even a way to make sales and boost the business.
“I soon realised that I didn’t only want to make calls, but I wanted to report back to our client on how we were doing, so I kept a record of how many dials we made, the number of contacts, and how many contacts were converted into sales. It was a very manual process — we kept records with paper and pen, and had little tape recorders that we needed to remember to take off pause to record each call. But the client loved the feedback. They were impressed with us.”
And then the founder of the company relocated to London, and sold the business to his brother, Jacqui’s partner and 50% co-owner of UDM today. “He asked me if I thought we could really make a go of it. I’d been learning a lot simply by doing the work — I was writing and tweaking scripts, tracking everything, and starting to learn the industry. I definitely wanted to give it a go.”
Like his brother, Jacqui’s new boss had connections in the financial world, and slowly they started signing clients, but always for small sections of each institution’s portfolio.
“We couldn’t take on permanent staff, but we needed people on the phones, so we turned to students,” says Jacqui. “We paid R20 per hour, and each student had to work 20 hours a week. I wrote the scripts and trained them, loaded the sales, created reports, and slowly figured out how to set targets and even discipline them. Remember, these were students, and we had nothing to do with their chosen careers. They were just there for the money. It was a big learning curve for me. I remember the first time I had to tell them that I was employing them to work, so could they please do what I was paying them to do. My hands wouldn’t stop shaking.
“I was learning everything on the fly. My financial management coursework helped me to develop targets, but there’s no degree for sales. If a script didn’t work I changed it. I made sure I still spent time on the phones so that I could see what worked, and what needed to be adjusted. I made sure that I was learning something new each and every day. I also tapped into my network — I called former employers and told them what I was doing and if they thought it would work. I was never afraid of asking ‘dumb’ questions. If I wanted to know something, I asked. It’s the only way to learn.”
With her hands firmly on UDM’s tiller, Jacqui believes the business got off to a slow, but sensible start. “Everything we did was with the mindset that it could be done,” says Jacqui. “I think that’s incredibly important. We never allowed ourselves to think that something couldn’t be done. We looked for solutions instead, and changed anything that wasn’t working, or wasn’t performing as well as we wanted it to.”
UDM’s big break came when a new life company called us in. Jacqui and her partner knew they had one shot to impress them, and she wasn’t going to let it slip through her fingers.
Be like Federer
Once they signed with UDM, the life company requested exclusivity. They wanted Jacqui and her team to focus exclusively on their products. UDM agreed. They would work out their current contracts, but they wouldn’t renew them, or take on new clients.
Putting all of your eggs in one basket is always a risk, but Jacqui also saw the opportunity. “Nothing is ever iron-clad, and there are always risks, but we were getting in on the ground floor with each other. Our success would rise or fall together. I believed it was a worthwhile risk and I still do. We understand each other, we speak the same language, and our values align. At the time we are the life company’s sale’s arm — we just happen to be independently owned. We both think this keeps us focused”
While the partnership has been fruitful for both businesses, there have been exciting challenges, most notably with the structure of UDM’s sales force.
“When we launched we were selling the life company’s difficult campaigns. From there, we started relatively easier and more profitable sales campaigns. Because they were more profitable, we were paid a higher fee for them. The result was that I promoted my best sales people onto the easier campaigns — our client paid us more, we paid our top sales people more, and the client benefited as their profits increased. It was win-win-win — until we started noticing the flaw in the entire system.
“We were moving our most talented sales people away from the difficult sales campaigns. The easier sales campaigns were flying, however, the more difficult campaigns were the crux of the business. Our client realised that if we didn’t change our process soon, we would continue to see a dwindling business.
“The realisation was one thing — we couldn’t believe we hadn’t seen the problem earlier, but at least now it was a challenge that we and our client could discuss. That was just step one though. Because we’d moved many of our best people off the vital, yet difficult sales campaigns, we were continually recruiting and training new potential sales stars to replace them. We had set ourselves up for a difficult, sustainable business model.
Companies always get nervous when they change anything associated with top earners, and this was no exception. We knew that if we didn’t do something, we would face a much bigger problem down the line. There was a solution — we just needed to find it.”
Jacqui knew she needed to solve three key issues. First, she had to find a way to convince her top sales people — all of whom were now accustomed to the ‘easier’ sales campaign to move back to the vital and difficult sales campaigns. Second, she had to ensure their high earnings remained the same or even improved, and finally, she needed to ensure that the ‘easier’ sales quantities didn’t decrease because her top sales people were not focused on them.
“I spent a lot of weekend hours figuring it all out,” she says. “I had to work out an incentive structure that ensured the company didn’t lose, our client didn’t pay more, but our staff were positively positioned. In discussions with our client, the first piece of the puzzle was put in place. The fee structure could be aligned with the new sales model. The incentives on the easier sales campaigns was where magic had been happening for 13 years — but there’d be no magic if the number of sales on the difficult sales campaigns diminished.
“Next, I turned my attention to our top sales people. I needed to make it amazing for them. What do people really care about? What would I want in their position? People love titles, recognition, and real perks. And so, we created an Elite floor. There are 28 positions open in Elite, and it’s never full. There are very specific criteria to qualify for Elite, and if you don’t cut it you’re out. You need to be like Roger Federer — you’re only as good as your last game, or in this case, your last months’ targets.
“If you’re in Elite however, you get the title, your own parking space, a weekly massage, food orders from a menu every day, snacks, and access to the Elite Shop when you’ve hit target three months in a row. The shop offers everything from tumble dryers and washing machines, to pool tables. Our Elite team also earn in excess of R100 000 per month if their targets are met.”
Once Jacqui had worked out the offer, she gathered her 20 top sales agents into a room and pitched the vision to them. “When they walked in, many of them had been crying. They’d heard rumours about what was happening, and they were not happy being forced back to the more difficult sales campaigns, so I approached the change from a different angle.
“I unpacked the whole picture: Why the change was necessary, what we would do, what the future would look like if we did nothing, what we could achieve if we made this change, and the structure, benefits and earning potential of the Elite floor. I then asked for four volunteers — the idea was to pilot it and prove it worked. All 20 put up their hands. We were in this together, as a team. We launched two years ago, and we haven’t looked back. Our difficult sales campaigns achieved a 30% growth in our first year, and more importantly, our client’s valuable ‘easier’ sales campaigns remained steady. In fact, the sales to conversion rates increased.
“We now move our most promising trainees onto easier campaigns in their latter weeks of training which has increased our permanent placements. Creating Elite was a risk for everyone, but one worth taking.”
Learning to fly
From taking up one floor in 2000, UDM now occupies two buildings, one with the insurance team, and the other focused on cosmetic sales.
“We’re always excited by new challenges, and our revenue from cosmetics has grown from nothing in 2010 to nearly R50 million, but we had a lot of lessons to learn to get to where we are today. I thought a customer service approach was the right move for a cosmetics brand, but we soon learnt you need sales people. We then moved some of our top insurance sales people over, but it’s a very different product, and that didn’t work either. I needed to move onto the floor, and get onto the phones myself to really understand what this side of the business needed, and from there we could start building the right sales team, structures and incentives.”
This wasn’t the first or last time Jacqui immersed herself in a section of the business. She is always moving between divisions, and regularly gets back onto the phones to test UDM’s scripts and experience the entire process from start to finish.
“When I come in from an outsider’s perspective, I can see if things flow smoothly. We often get used to processes, even if they’re a bit clumsy. The only way to make the right adjustments is if I experience everything myself, first hand.”
Integral to Jacqui’s approach is looking at each individual hub and evaluating how it can become a revenue generator. “We even look at our client services division and evaluate how we can get salaries paid more efficiently. Are we robust enough to pay bonuses immediately, and how do we simplify our systems to make them as flexible as possible? Nothing at UDM happens slowly. I want everything done today.”
In fact, everyone who works at UDM knows that anything can be done in a short period of time if you have a motivated and flexible team.
“There’s no such thing as requisition forms that get sent to one floor, then signed and sent to another inbox for a few days. Things happen immediately — that’s the precedent I set.”
Jacqui knows that to achieve this, she needs to be accessible at all times. “When your staff can see that someone is listening, and that they have power to implement changes, they respond positively. The culture becomes one of action, but they also speak up, and that’s how an organisation keeps moving forward.”
Another key to UDM’s success is incentives; everyone, from cleaners to supervisors, managers and sales people, is incentivised. “We’re very transparent with our base salaries, and the available earnings if targets are met. For cleaners, this means that set bonuses are paid for grocery stock control, the bathrooms being spotless within an hour after tea break and so on. Supervisors and managers have similar incentive structures, but their targets are related to their job scopes.”
According to Jacqui, the process works because of complete transparency. “Each of us knows what we are on and what our targets are. We know exactly what we’re aiming for, and what we need to do to achieve it. The sales agents know what they need to do, every hour of every day.”
Everything in UDM is tracked — Jacqui is copied in on all daily sales tracking reports. “I know what every team has done, each and every day. They have to explain to me why that day’s target wasn’t met, and what they’re going to do to make it up. If we’re 2% behind where we have to be this month for example, we need a plan of action to get 5% ahead — everything is tight and well calculated.”
Jacqui is the first to admit that it’s a tough and fast-paced work environment — but employees who can handle the mental and physical demands of their jobs are well-compensated and experience growth and development in their professional lives.
“I like churn. I’d rather lose the people who won’t cut it early on. This is a tough environment, so we’ve put a lot of measures in place to weed out anyone who won’t make it. We don’t want to waste their time or ours.”
One of those measures is the training academy. Thirty new recruits start a 12-week programme each Monday, but only the best stay on as permanent staff. UDM’s biggest churn is in the first year, but that’s fine. “I don’t want anyone sitting here who doesn’t want to be here and can’t do the job,” says Jacqui.
“I know the job is achievable, but you have to have the right mindset, work ethic and love for the job. I pay attention to the smaller details, for example, how people walk — based on this one small detail, I know if they’re going to excel with us.”
Jacqui is a firm believer that if people are paid well and receive recognition for their achievements, they stay. “It’s a massive learning curve for anyone coming into this business, but once they get it, there’s no way you don’t know where you are, or what you need to do to achieve your goals.
“Some managers make the mistake of expecting and accepting the mediocre. We don’t. Anything is achievable, I know that, and people often just need a leader who can break it down and show how exciting it is to achieve excellence. We’ve learnt that high achievers thrive on structure, under fair discipline and with great recognition. I think we have all of that here. In the first year the reality of the job sets in, and it’s tough. If you’re not making target here it’s quite a difficult place to be. We have high standards, and I’m proud of them. Everyone here has a high standard of living. 63% of our staff have been with us for over two years, and we have 30 employees who have been with us for over a decade. If you fit our culture, you stay — and we help you fly. That’s our ethos, and it’s worked for us.”
Psychology of success
1. Believe in your positive contribution
I wanted to become a partner in the business I was helping to build. When the opportunity arose for me to own equity in the business, I grabbed the opportunity and worked hard to ensure it paid off.
2. The first step of success is to show up and learn
Seize the moment. Be authentic. If you don’t understand something ask the dumb questions — you’re no dumber than anyone else. I’ve learnt that most people are just winging it. You need to learn, so don’t let the fear of looking like you don’t know something hold you back.
3. Figure out what your business needs
Most of what we’ve built started out with logic. I didn’t know anything about telemarketing, but because I got on the phones and started writing scripts, I figured it out. Put your head down and start — the more you do, the more you’ll learn.
4. Look for a way for everyone to win
I aim to please: Clients, the business and the people working for me should all benefit from what we do. This is a big thing for me. I look for win, win, win in every situation — and believe me, solutions that work for everyone can be found if you’re transparent, understand what everyone needs, and explain the business and personal logic of your decisions.
5. I have an innate drive
When I was born I came out checking the competition. This passion to do everything well has really pushed me in life. I always want to deliver better. You need that drive if you want to build something great.
Financial Wellness Coach Nelisiwe Masango Shares Retirement Wealth Advice
Budgeting is by far the biggest threat to wealth planning, says wealth coach Nelisiwe Masango. If you’re part of the majority of people who don’t have a monthly budget or who have one, but don’t adjust it regularly, you could be hindering your financial progress.
- Player: Nelisiwe Masango
- Position: Founder and Director
- Company: Bear Run Investments
- Visit: bearruninvestments.co.za/wp/
What are some of the most common mistakes people make as they embark on their wealth planning journey?
As a financial wellness coach, I’ve picked up a few common mistakes that people make, irrespective of their age, gender or race:
- Only 30% of people keep a record of their day-to-day spending, including receipts that aid in your monthly budgeting regime. Keeping a record of all your expenses, fixed and variable, will help you avoid overspending and being in a deficit at the end of the month.
- Almost 60% of people don’t have enough money left over at the end of the month. This becomes an issue because you need to have an emergency fund that can be accessed within 48 hours, as well as capital to invest for long-term purposes, such as settling your debt, buying a new house, retirement and your children’s education.
- 90% of people under the age of 35 do not have a retirement or pension plan in place. The biggest mistake that young people make is the assumption that ‘tomorrow will see to itself’. It’s of paramount importance to set money aside for retirement, whether you’re an employee or an entrepreneur.
Why are so few people able to retire at retirement age in South Africa?
We’re living in a very materialistic era and for many, its more socially acceptable to drive the latest German car than it is to own a house.
Society is falling victim to instant gratification. A negative attitude towards your financial future plays a significant role in how you view retirement. Having a stable pension plan, for some people, isn’t as exciting as dressing to the nines.
Therefore, we need to create a culture that perceives financial security and sustainability as a goal, especially with the youth. Statistics show that more pensioners are becoming poorer, resulting in some elderly people having to work throughout their 60s and 70s in order to get by. Time is an essential commodity.
The sooner you start saving and investing for your retirement, the easier it will be to make better financial decisions — such as buying a house instead of renting, saving a bigger deposit instead of getting a car on residual. As a result, your life will become more comfortable.
What is the most important thing to remember when planning for your retirement?
Retirement planning shouldn’t be complicated or overwhelming. Well-established companies generally deduct a portion from your salary and put it into a retirement annuity. This shouldn’t stop you from independently developing a pension plan with your financial advisor.
If your employer does not offer a retirement annuity deduction then it’s your sole responsibility to contact reputable asset managers and financial institutions in order to get the retirement plan ball rolling.
Once you have a retirement or pension plan in place, it’s important to check its performance regularly and make changes where necessary.
What happens if you’re in your 30s, 40s or even 50s or 60s and haven’t started saving for retirement?
It’s never too early or too late to start taking charge of your financial situation. The biggest thing you need to consider is your risk profile. As we get older we tend to become slightly risk averse due to the number of dependents and responsibilities that we have. It’s therefore advisable to get a risk assessment conducted prior to making any financial decisions and adjustments. Once you know the type of investor you are then it will be easier to select products that perform according to your expectations and comfort.
5 Simple steps to get you started
Get your finances in order by following Nelisiwe’s five-step plan:
- Create a budget and find out which luxuries you can do without (for example, making sandwiches at home instead of buying at the office canteen). Once you’ve made a few sacrifices, you’ll have extra money to save.
- Write down your financial goals, namely short-term, medium-term and long-term (for example, paying off your credit card, saving for a deposit on your new home or retiring comfortably at the age of 55).
- Take a risk assessment to determine your investor profile and risk appetite.
- Start investing in the products that best suit your profile
- Check these investments at least once a month but keep in mind that investing is a long-term habit and when you get extra money don’t be afraid to top up or increase your investments for a diversified portfolio.
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.
- 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.
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
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.”
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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