The vast majority of businesses don’t make it past 1000 days (3 years). To gain insight on how to survive to day 1001 and beyond, Santam is profiling those who have surpassed this milestone. One such business is So We Too, a cooperative of seven enterprising tourism operators in Soweto. Co-founder Raymond Rampolokeng shares the story of his business journey and his ultimate survival tips.
Day 1: Grouping businesses into a united force
In 2007 Raymond founded his company, Bay of Grace Tours, providing birding tours for the first time in the history of Soweto. In 2011, Raymond’s business, along with six others in Soweto, took part in a 6-month mentorship programme hosted by the TEP (Tourism Enterprise Partnership).
Each business was linked with a mentor and taught to scrutinise its business plan, bankability, and objectives. Encouraged by the TEP’s Hidden Treasures Programme, the 7 came together under a new brand to share various unique and alternative experiences available in Soweto.
They came up with the name SO WE TOO. “It’s obviously a play on Soweto but we also wanted to send an uplifting message of ‘so we too can do it'”, explains Raymond.
“We are all from Soweto and we share the same goals and ideals. Together we came up with a township experience with a difference. You not only get to see a truly authentic Soweto but you could do so for 24 hours.”
Tip: “My best advice for someone starting out would be to research, research, research the field you are going into. That leads to better planning and improves your chances of succeeding.”
Day 155: The launch of SO WE TOO
A partnership was formed with City Sightseeing, the company operating the open top red double-decker buses in Johannesburg. “This was a big win for us in terms of credibility and having an instant central administrator for the bookings side of the business.”
Tip: “If you collaborate with other companies, treat it as a professional partnership. Make the time to meet regularly, compile an agenda and iron out any differences before they become a problem. You never want the client to become aware of any issues.”
Day 377: Second year, taking a second look at the business plan
The second year of business proved to be a “baptism of fire”, according to Raymond. “You start with great enthusiasm, thinking everything will be rosy. The sad truth was that not everyone in the cooperative was getting new business as expected.” To remedy this, Raymond decided to revisit his mentorship contacts.
“These tough times were actually a blessing in disguise because it forced us to refocus”, says Raymond, treasurer of the group. “We had to get our administrative ducks in a row, know exactly what the financial performance of the company is and so on. We had to make sure that drivers collect all tickets so that we can submit these and be paid on time.”
Tip: “My best advice would be to get yourself a trusted mentor if you’re starting out. And don’t be too proud to regularly ask for help and to ask that person to endorse you, for example on LinkedIn.”
Next 1000 days
In 2014, SO WE TOO was awarded a Lilizela Tourism Award for Social Participation and now services an astounding 800-900 clients per month, with 3 tours per day.
What’s next for SO WE TOO? “We would love to see other businesses coming together like we did and replicating this throughout the country. It really is a beautiful model that benefits all the businesses involved, as well as the local area.” According to Raymond, the majority of visitors come from all over Africa.
“The African market has been so supportive and we see many people coming for the 24-hour tour then deciding to spend a few more days in the area, which is great.”
Tip: “When times are tough or you run out of start-up capital, it’s time to get resourceful about what you can get for free, for example free advice from a mentor and using free marketing channels such as social media (Twitter, Facebook and LinkedIn).”
Has your business celebrated its third birthday? Has your business succeeded to 1001 days? Submit your story for consideration in the Santam 1001 days series.
- Santam 1001 days: A milestone profile with JesseJames
- The biggest problems entrepreneurs face (David Seinker, CEO)
- Growing a business through learning (Sibulele Siko-Shosha, MD)
- Is your biggest challenge your biggest opportunity?
- Managing your business risk
The Ins And Outs Of A Good Exit Strategy
The thought of parting with a business you’ve grown from the ground up may be unsettling, but Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, says that it is better for both your business and yourself to plan for this as early as possible.
“The challenge that business owners often face in this respect is comparable to the difficulty that many new parents have with imagining their children grown up and leaving for university. Imagine, however, if parents did not plan ahead for the cost of their education – that would be detrimental to the future of their children. The same could be the case for your business.”
Mjadu says that a good exit strategy is about sustainability and being able to measure your business performance against the goals you have set for it. “It’s really about being able to say, ‘this is when the work is done and I can exit the business or take on a different role – this is what success looks like in terms of monetary return on investment and other business growth indicators’.
“The lack of an exit strategy could be telling of a fundamental lack of measurable business goals and this needs to be addressed,” she says.
From immediate liquidation to liquidation over time; family succession; selling to staff or external investors; the open market or another business; or the gruelling but profitable exercise of taking your company public – there are many different ways in which an entrepreneur can exit their business, but Mjadu says that whatever the process, a strong and solid strategy is essential.
She shares five key points of a good exit strategy:
1. It tells you when you are done
Mjadu says that a good exit strategy should reflect a core understanding of all the intricacies of your business and should be able to tell you when the lifecycle of your business (or of your involvement in the business) should come to an end. This is usually done by including a set of tangible measurables or objectives so that it is easy to ascertain when these have been achieved.
2. It sets out the right environment within which to exit
A good exit strategy considers the economic, social and political environment at the time of your exit. Mjadu says that this is important in order to plan for a secure financial future.
“Failure to think about this could result in short-changing yourself by exiting during a tough economic climate when the risk to buyers reduces the value of your business.”
She references the case of Victoria’s Secret when founder, Roy Raymond, sold the failing business for $1m unknowing that it would later grow into the multi-billion dollar empire it is now. “While Raymond’s exit was ultimately necessary for Victoria’s Secret’s growth, he sold it in 1982 during the global recession of the early eighties – one of the world’s biggest financial crises and this influenced the selling price at his exit”.
3. It compensates those who have contributed to the life of your business
It is important to consider the impact your exit could have on investors and staff, says Mjadu. “Closing shop for example, means that your staff no longer have employment at your business. Selling could mean the same.” She adds that it is important to consider ways in which your exit could also benefit these stakeholders – for example, selling to a bigger business could mean more career opportunities for your staff, as well as continued job security.
4. It compensates you
Mjadu says that entrepreneurs often struggle to recognise their own true worth, especially when this involves attaching a monetary value to what has been achieved. “The time of exiting a business is no place to short-change yourself. You need to get out the full worth of what you put in,” she says, explaining that this means ensuring that you are financially secure before and while you go into your next venture.
“Your needs for retirement and medical insurance, as well as the maintenance of your living standard, should be met at your exit.”
5. It sustains your entrepreneurial drive
Mjadu says that while you may be nearing the end of one journey, your exit should enable and encourage you to continue to be an entrepreneur – and to look forward to the next journey. “Your entrepreneurial skills and capacity do not end when you exit your business and whatever your strategy, it should egg you on to more entrepreneurial activity including becoming a mentor to aspiring entrepreneurs.”
Mjadu says that exiting your business should allow you a good retrospective look at what you have done over the years – and so planning the strategy early on in your business lifecycle will set you up in regards to what you hope to achieve. “Upon exit, you should be able to say that you have done what you set out to do, financially and socially, and you have some energy left to do more elsewhere.”
Search Is On For SA’S Online Retailer Of The Year
World Wide Worx in partnership with Platinum Seed, Visa, Heavy Chef and the Ecommerce Forum of Africa, launch new awards to recognise online stores that promote shopper trust.
World Wide Worx today announced that it was launching a new awards programme — called the Online Retailer of the Year — to honour online stores in South Africa that grow trust amongst digital shoppers. The awards are part of a broader project to boost online shopping by World Wide Worx in partnership with Visa, Platinum Seed, the Ecommerce Forum of Africa and Heavy Chef.
“Online retail in South Africa has consistently grown above 20% since the turn of the century but only passed 1% of overall retail in 2016. Research shows that trust is a big factor in ecommerce growth, which is why we want to recognise online retailers who help to grow the entire sector by ensuring the kind of ecommerce standards that engender trust with online shoppers,” Goldstuck says.
“But once online retail passes two per cent it crosses an essential psychological barrier and this often leads to a tipping point in emerging economies. That’s when we see online retail snowballing. It gathers real momentum and everyone in the sector benefits,” Goldstuck explains.
To be eligible for entry to the Online Retailer of the Year, owners of digital stores are urged to participate in an essential survey of local online shopping being run by Goldstuck’s World Wide Worx, together with Visa and digital growth agency Platinum Seed.
To participate in the research, local online retailers can go to www.surveymonkey.com/r/OnlineRetailSA
All online retailers who participate will be entered into the award. However, participation in the survey is not a precondition for entry to the awards. However, only online retailers who operate from within South Africa’s borders are eligible for this local award.
The awards will be made at a Heavy Chef event in Cape Town on Thursday, October 01 2018. At the same event, World Wide Worx’s Arthur Goldstuck will lay bare the state of local retail, with Brad Elliott, CEO of Platinum Seed, and Visa.
Goldstuck, who is judging the awards, will present the following awards:
- Online Retailer of The Year
- 1st runner-up – Online Retailer of the Year
- 2nd runner-up – Online Retailer of the Year
- Best New SA Online Retailer of the Year.
The winners of the Online Retailer of the Year awards will be given a digital badge that the online store can display online. The winners will have bragging rights for a year — until the next award is made in 2019.
Judging criteria for the awards include trust, innovation, customer service, digital excellence, customer engagement, product excellence, and the online reputation of the digital store. Visa, Heavy Chef, and Platinum Seed will oversee the judging of the awards. The Ecommerce Forum of Africa will audit the results.
Retailers or entrepreneurs who want to attend the awards and presentation of the research results by Goldstuck can purchase tickets from Heavy Chef.
Up To R1 Million In Funding For Tech Solutions To Early Childhood Challenges
Applications from individuals, non-profit and for profit organisations are welcome. Innovation Edge accepts early stage ideas pre or post proof of concept phase.
Innovation Edge, an early stage investor and venture builder, has launched a call for tech solutions to problems faced by young children and those who care for them. The most promising ideas stand the chance to receive up to R1 million in funding and will have access to a range of incubation support. Qualifying ideas will address a defined need within early childhood and have a sustainable route to scale that includes families living in poverty.
Deadline for submissions is 19 October 2018.
The human brain is naturally wired to learn, but the brain’s capacity to absorb new information and learn new skills is most pronounced in the first 5 years of life. During this period of development, not only does the brain learn best, but it gets wired in ways that impact lifelong learning. Experiences during early childhood literally shape the architecture of the developing brain.
Sonja Giese, Executive Director for Innovation Edge, explains why investing in solutions to early childhood problems is critical; “ Eight out of 10 Grade 4 learners in South Africa cannot read for meaning. Six out of 10 Grade 5 learners cannot do basic maths. These scores are predictive of final school outcomes, meaning that by the age of 10 years, a child is on the educational trajectory she will most likely follow.”
“There is no conceivable way in which South Africa will realise its development goals, including increased employment, radical economic transformation, reduced crime and dependable leadership, without significantly altering the current trajectories of our youngest citizens. This sector is desperate for innovative solutions that offer impact at scale.”
While Innovation Edge welcomes submissions for any bold ideas at any time throughout the year, this call is specifically focused on tech solutions to early childhood challenges.
Examples of the types of challenges that applicants are invited to respond to include the following :–
- Paper-based systems of recording classroom attendance are time-consuming and lacking in accuracy. How might you create a tech solution that enables pre-school teachers (in both high/mid and low income environments) to quickly capture verifiable classroom attendance for children aged 3 to 6 years?
- Young children’s (birth to 6) developing brains thrive from having daily positive back and forth conversations with their parents. How might you create a tech solution to help parents (in both high/mid and low income environments) embed this behaviour into their daily lives?
- Approximately 33% of women living in adversity will experience a mental illness (primarily depression) during or after pregnancy. What opportunities could tech offer to support mothers, particularly those in low-income environments, who are suffering from depression?
Applications from individuals, non-profit and for profit organisations are welcome. Innovation Edge accepts early stage ideas pre or post proof of concept phase.
To submit a proposed solution and for more information on Innovation Edge visit http://innovationedge.org.za/opportunity-hub/.
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