Entrepreneur june 2014 ZA

How Carel du Toit has built up his R55 million business 8 Creativity lessons from Pixar Betting on... 32 Growth Guru Silent business killers andhow to avoid them 57 Accounting and Payrol

TOMORROW’S MEGA-MONEY SPINNERS?

PLUS: Build a Strong Sales Pipeline

WWW.ENTREPRENEURMAG.CO.ZA

JUNE 2014

JUNE 2014 — ISSUE 99

R35,90 (INCL VAT)

5 Disgusting business ideas

that could make you a fortune

THE “HOW-TO” HANDBOOK FOR BUILDING COMPANIES

Securing respected global brands and buying distressed businesses.

That’s how Cuan Chelin built his R240 million business.

How Carel du Toit has built up

his R55 million business

8 Creativity lessons

from Pixar

Betting on

J U N E 2 0 1 4 E N T R E P R E N E U R M AG C O Z A 1

1034

40

96

70

2721

Carel du Toit is a self-taught IT entrepreneurwho believes that the best way to build asuccessful business is through ensuring repeatVDOHV 7KH UHVXOW LV D KLJKO\ SURÀWDEOH EXVLQHVVwith a R55 million turnover

Siphiwe Tshabalala might be remembered forscoring the 55th minute goal against Mexico inthe 2010 FIFA World Cup, but today he’s makingwaves in the business world We take a look atwhat motivates this soccer-turned-business star

Canterbury, Dunlop, Slazenger and

Sportingbet.co.za are just some

of the brands that have built Cuan

Chelin’s business empire Find out

how this determined youngster

from Durban has built a R240

million business from nothing.

succeed if you don’t try You won’t always get what you wanted, but you’ll learn from each attempt, and you’ll refine your goals and focus.

14

32 Growth Guru Silent business killers and

how to avoid them

57 Accounting and Payroll How solid

accounting and payroll foundations lead to

a better — and more profitable — business

Q LAUNCHPAD

63 Bright Idea Mongezi Mtati’s hot marketing

moves

65 My Mentor

> CARVING OUT TIME FOR IDEAS > THE KING OF COOL > THE INSIDE TRACK ON FRANCHISING

Marketing guru Mandi Fine on why you

QHHG WR ÀQG WKH WLPH WR KDYH JUHDW EXVLQHVV

ideas – for you and your team

Mongezi Mtati’s start-up is making wavesand getting noticed, thanks to his belief thatyou need to remember to be your own bestclient

The Jimmy’s Killer brand is well-loved bymany South Africans Find out how it’sevolved and remained competitive in a toughindustry with spiralling costs

CONTENTS

66 Start-up Diary How local entrepreneur

Liza Clifford drew international coach BradSugars’ attention

68 Prototyping

69 Lessons Learnt Lebogang Mokubela’s

start-up journey and top tips for stage entrepreneurs

96 Siphiwe Tshabalala on moving from soccer

stardom to business success

> TOMORROW’S MEGA-MONEY

SPINNERS

As our world gets smaller, hotter and more

crowded, innovative solutions to global

problems could be tomorrow’s multi-billion

rand industries Get in on the action today

70

63

PUBLISHER Andrew Honey

DIRECTOR: PRINT & DIGITAL Nicole Honey

MANAGING EDITOR: EMSA Nadine Todd

DEPUTY EDITOR: Tracy-Lee Nicol

COPY EDITOR Lesley Lambert

WRITERS Monique Verduyn, Nadine Todd and

Tracy-Lee Nicol

WEBMASTER AND TRAFFIC COORDINATOR

Chelsea Osborne

ART

SENIOR ART DIRECTORS

Dineo Mokgoasi, Saveer Sugreem

PHOTOGRAPHERS Adrienne Weerheim, Mike

Turner, Rich Townsend, and Sarah Schäfer

ADVERTISING

MEDIA SOLUTIONS MANAGER Alex Skea

SENIOR MEDIA SOLUTIONS CONSULTANTS

Jann Becker, Inez Barnard, Sanjay Kathan

MEDIA SOLUTIONS CONSULTANTS

JHB: Charles Hsuan, Cynthia Morgan, Hazel Jeffrey,

Ilze Prins, Moses Mtheleni

CAPE TOWN: Samantha Peel

DIGITAL MANAGER Charles Hsuan MEDIA SOLUTIONS ASSISTANT Seipati Modise

DIRECTORS

MANAGING Andrew Honey DIGITAL & PRINT Nicole Honey

ENTREPRENEUR MEDIA INC.

CHAIRMAN/CEO Peter J Shea VICE PRESIDENT/EDITOR-IN-CHIEF Amy Cosper

LEGAL COUNSEL Ron Young

PUBLISHING CREDITS

Entrepreneur and Franchise Zone are registered trademarks of Entrepreneur Media, Inc.,

2445 McCabe Way, Irvine, California 926614 USA Entrepreneur (USSN 1818-7706) considers its

sources reliable and verifies as much data as possible However, reporting inaccuracies can

occur, consequently readers using this information do so at their own risk Each business

opportunity and/or investment inherently contains certain risks It is advised that prospective

investors consult their attorney/s and/or financial advisor/s prior to pursuing any business

opportunity or entering into any investment Entrepreneur and Franchise Zone are sold with

the understanding that the publisher is not rendering legal or financial advice Although

persons and companies mentioned herein are believed to be reputable, neither Entrepreneur

Media Inc, Entrepreneur Media SA (Pty) Ltd (2005/009255/07), nor any of its employees, sales

executives or contributors accept any responsibility whatsoever for such persons’ and

companies’ activities © Entrepreneur Media SA (Pty) Ltd All rights reserved No part of this publication may

be reproduced, stored in a retrieval system or transmitted in any form without prior written permission of the Publisher Permission is only deemed valid if approval is in writing Entrepreneur and Franchise Zone buy all rights

to contributions, text and images, unless previously agreed to in writing.

ENTREPRENEUR SA

PUBLISHED BY Entrepreneur Media SA (Pty) Ltd

• First Floor, Fernglade, Fernridge Office Park,

5 Hunter Avenue, Ferndale

MAIL PO Box 20, Pinegowrie, 2123

EDITORIAL SUBMISSIONS * EMAIL press@entrepreneurmag.co.za FAX +27 (0)11 789 9113

MAIL PO Box 20, Pinegowrie, 2123

* Please include your contact details The editor reserves the right to edit for space and clarity.

INTERNATIONAL EXPERTS

LEO BABAUTA is the author of the blogZen Habits, which is about finding simplicity in the daily chaos of our lives It is one of the Top 25 blogs and Top 50 websites in the world.

PETER COHAN is president of Peter S Cohan & Associates, a management consulting

and venture capital firm He is the author of Hungry Start-up Strategy and an instructor

of business strategy and entrepreneurship at Babson College.

MARSHALL GOLDSMITH is an executive educator, coach and best-selling author of

numerous books, including the New York Times bestsellers, MOJO and What Got You Here Won’t Get You There.

SCOTT HALFORD is a long-time consultant to Fortune 500 executive teams His

brilliance in focusing on the strategy and application of behavioural brain-based concepts which distinguishes his work and gains praise from executives around the world.

JOE MATHEWS has 20 years’ experience in franchising, including management roles

with Subway, Blimpie, Motophoto, The Entrepreneur’s Source and other US-based national chains He is co-author of Street Smart Franchising with Don Debolt and Deb Percival.

MARK SANBORN is an author, speaker and president of Sanborn & Associates Inc., a

US-based leadership development firm He is author of eight books including the latest: Fred 2.0: New Ideas On How to Keep Delivering Extraordinary Results.

LOCAL EXPERTS

DR CHARLENE LEW is a senior lecturer in strategic leadership decision-making at the

Gordon Institute of Business Science (GIBS).

DOUGLAS KRUGER is the author of50 Ways to Position Yourself as an Expert, and author of So You’re in Charge Now What? 52 Ways to Become a Better Leader His latest book is Own Your Industry.

co-ED HATTON is the owner of The Marketing Director He has co-authored an

entrepreneurship textbook and has mentored SMEs for almost 20 years.

www.themarketingdirector.co.za

HARRY WELBY-COOKE is the co-master franchisor for ActionCOACH in southern Africa

and is also a certified, leading business and executive coach who assists business owners

to significantly grow their profits and skills www.actioncoachsa.co.za

LIZWE NKALA is a corporate veteran who is the founder of Flamingo Moon, a corporate

strategy consultancy that works with blue chip clients, exploring the role of successful leaders in today’s competitive world www.flamingomoon.co.za

PAVLO PHITIDIS is a director of Aurik Enterprise Development and the CEO of Aurik

Business Accelerator, an organisation that works with business owners to grow their businesses into assets of value.

YUSUF ABRAMJEE is the head of news and current affairs at Primedia Broadcasting.

He also spearheads Lead SA www.leadsa.co.za

EXPERT CONTRIBUTORS

1 0 E N T R E P R E N E U R M A G C O Z A J U N E 2 0 1 4

AS MID-YEAR approaches,many business ownerstake the time to reviewtheir goals and evaluate how their

businesses are faring compared to their

plans and strategies for 2014

So how do you fare? There are two

core reasons why business goals and

VWUDWHJLHV DUH QRW IXOÀOOHG 7KH ÀUVW LV

because you didn’t evaluate where you

want your business to go, or develop

a strategy to get you there Without a

plan of action, you can’t expect results

The second reason is a lack of

follow-through If you’re a business

owner in this category, you probably

set your goals in December, but as soon

as business started picking up, you

got too busy and distracted to stick to

them, and reset to last year’s practices

&KDQFHV DUH \RXU VWDͿ GLG WRR DQG VR

even the best strategies get put on the

back burner

MAINTAINING YOUR FOCUS

Truly successful entrepreneurs aren’t

super-human They don’t have a better

business idea than you, or even a better

strategy They’re just conscientious

about keeping their eye on the ball

When we speak to successful South

African entrepreneurs, we always want

to know their productivity secrets,

because we want to show that most of

those secrets are simple and straight

forward – they just take discipline

+HUH DUH ÀYH JUHDW DQG VLPSOH secrets that you can start implementingtoday that will hopefully help youfocus, prioritise and get back on track

• Delegate, but keep in touch with all the key players in your organisation.

Asher Bohbot, the founder of EOH,which has a turnover of

R5 billion, says that 95% of what

he does is talking to people

He schedules time in his diaryfor ‘chats’ and business reviewmeetings Open agendas allow histeam to bring him anything thatconcerns them Meetings are shortand frequent, and keep his keyplayers focused Business reviewsare longer and more in-depth

They look at ‘hard’ issues like sales,targets, operations and action plans,and hold everyone accountable fortheir targets As busy as he is, heknows these meetings are vital tokeeping everyone focused on theend goal

• Prioritise the tough tasks.It’soften easier to do the ‘simpler’, lessLQWHQVLYH WDVNV ÀUVW 7KH SUREOHP LVthat they are also time consuming,and you end up never getting tothe vital things that only you can

do Instead, delegate Vivian Reddy,head of Edison Power Group, whichhas a turnover of R5 billion, tacklesWKH PRVW GL΀FXOW WDVNV DW DP

His mind is sharp and it’s quiet time

It also means that issues pusheddown the list are either not vital, orcan be handed over to someone else

• Manage your calls and meetings.

Angel Jones, founder of Morrisjonesand The Homecoming Revolution,opens every call or meeting askinghow much time the other party has,what their expectations are, andstating her expectations Then shewraps up with a synopsis of whatwas decided and an action list for

each party It keeps all meetings topoint and is a huge time saver, plus,

it adds an element of accountability

• Draw on the input of a strong team.

If you want your business to enjoyreal growth, you need buy-in fromeveryone around you No matterhow busy you are, make time forthe collective input of a strong team.According to Discovery’s founder,Adrian Gore, the company’s excomeets for an average seven hoursevery Monday They go througheverything Sometimes it’s a bunÀJKW EXW WKH ULJRURXV GHEDWHV DQGarguments mean that 20 really smartpeople are providing their input andalways thinking about what’s bestfor the brand – and it means thatQRRQH FDQ WDNH WKHLU H\H RͿ WKH EDOO

• Give yourself ‘me’ time.You need

to put time in your diary to reallythink about your business This can

EH GRQH LQ GLͿHUHQW ZD\V XPDUDQPadayachee, founder of Spartan IT

& Rentals, has a ‘thinking’ chair.When he’s in it, he’s only thinkingabout strategy Moving away fromhis desk helps him focus on thethings that need his attention, where

KH FDQ·W JHW GLVWUDFWHG /HZ *HͿHQ·VÀUVW DSSRLQWPHQW HYHU\ GD\ LV ZLWKhimself He exercises, thinks abouthis day and is far more productiveZKHQ KH JHWV WR WKH R΀FH DW WHQThere are many ways to stayfocused, but the most important is totake a long look at how you spendyour time, and review what worksand what’s a waste of your time.Thank you for reading the magazine.We’re proud of our loyalEntrepreneurcommunity, and we’ll continue toprovide you with the best content tohelp you grow your business

KEEPING YOUR EYE ON THE BALL FIRST WORD

Nadine Todd, Managing Editor

J U N E 2 0 1 4 E N T R E P R E N E U R M AG C O Z A 1 3

ARTS IDEAS FOR MAKING WISER USE OF YOUR TIME AND ATTENTION

COMPANY:Fine Healthcare GroupPLAYER:Mandi Fine, CEOCONTACT:www.finehealthcare.co.za

Mandi Fine is the group CEO of Fine Healthcare (FHC), a strategic healthcare marketing and advertising agency Claiming multiple local and international awards for leadership, creativity and innovation in healthcare communications here’s how Fine makes it happen.

WORKSMARTER

CARVING OUT TIME FOR IDEAS

If you haven’t left the office in days, go!

Get out and learn, have white space

and do something different; many of

my greatest ideas have come when

I’m not at my desk.”

1 4 E N T R E P R E N E U R M A G C O Z A J U N E 2 0 1 4

SMARTS

A glimpse into the super-secret process where magic happens.

8 creativity lessons from a Pixar animator

SOMETIMESimmersing yourself in thecreative world of people doing amazingthings can bring unexpected results

My son Justin is interested in 3Danimation, and my daughter Chloe

is into screenwriting, and so it was athrill to take them on a tour of Pixar

Animation Studios,courtesy of one of thePixar animators

Bernhard Haux is

a ‘character technicaldirector’who modelscharacters and works on theirinternal motions: This means

he is a small piece in the largerPixar machine, but aware ofwhat everyone else is doing too

He’s worked on major movies

such as Up, Brave, Monsters

University and others.

Bernhard showed us around the Pixarcampus, and while we couldn’t reallydig into their super-secret process, wedid get a few glimpses of the magic And

I learnt some surprising things

CREATIVITY LESSONS

Tenacity matters.Bernhard told a story

of a friend who did a drawing every day,for more than three years, and becameamazingly good by the end of that stint

He shared Looney Toons legendaryanimator Chuck Jones’ assertion thatyou have to draw 100 000 bad drawingsbefore you have a good drawing.Bernhard said you might not seem verygood at something when you start out,but if you’re persistent, tenacious even,you can get amazingly good

by LEO BABAUTA ZEN HABITS

What do you do daily that makes a difference

to productivity?

Every day around 7:30am I have a coffee

meeting with a client, employee or business

partner We can reflect without distraction

and discuss clients, the business, employee

aspirations, and future plans

As a mother of teenage boys, it’s unrealistic

to have traditional office hours and habits It’s

not uncommon to find me having a conference

call in the car while waiting to pick up the boys

from school or checking email after hours

Tell us about your philosophy of ‘white space’

White space is essential for good ideas; people

are much more productive, energised and

creative when given the space for thinking If

someone hasn’t left their desk in days, they

must go! Get out and see what’s happening in

the world, do something different

Can work get done if staff aren’t at the office?

Absolutely! Staff have outputs they need to

produce and we trust them to do it It doesn’t

matter where it gets done We have to have

healthy people, so if they want to train for a

triathlon or have family responsibilities, they

have the freedom to do it

We’re also very conscious of directors having

balance, restoring energy and being inspired,

and that requires strong partnerships and trust

How do you get the most out of work hours?

If I don’t schedule internal meetings, there’s

a queue out my door and little gets done, so

my morning is dedicated to that Then I block

at least two hours of no interruption where I

catch up my own admin On weekends I only

communicate internally if there’s a deadline, as

we respect each others space

How do you spend your travel time?

I go abroad every six to eight weeks on

business and always schedule a day or two for

myself It’s good for me, and it’s good for the

business, as I often get my greatest ideas by

seeing what’s going on in the world

What is the greatest lesson you’ve learnt

about being effective?

The executive function of planning and

blocking time is important, but the essence

of productivity is loving what you do I’ve had

many mentors, and my business partners are

my daily mentors as they constantly reaffirm

our values of being the ’Finest’

How do you keep yourself sane?

I love yoga and walking and they’re

fundamental to my energy management I

practice both twice a week Every day I do some

breath work, taking slow deep breaths, and

practice gratitude to relax and focus myself.EM

author of Zen Habits and voted

in the 25 top blogs, follow him on twitter at zen_habits

Art is your particular telling of reality

When we talked about letting go of

preconceived ideas and drawing what

you actually see, Bernhard compared

it to a night out with a friend While

Bernhard might recount that night by

saying, “We went out and had some food

and went home,” his friend might have

noticed interesting details that Bernhard

GLGQ·W DQG WHOO D GLͿHUHQW VWRU\ 6DPH

H[SHULHQFH GLͿHUHQW LQWHUSUHWDWLRQ

GLͿHUHQW GHWDLOV

Feed off others’ ideas.When Pixar artists

create characters, it’s not just one artist

sketching out how he thinks a character

should look They all sit around a table,

drawing ideas, putting them in the

PLGGOH DQG WDNLQJ WKRVH LGHDV DQG UL΀QJ

RͿ WKHP 'R]HQV DQG GR]HQV RI VNHWFKHV

come out from this process, until they

ÀQG WKH RQH WKDW ZRUNV EHVW (YHU\RQH·V

creativity builds on the creativity of

others This can help you even if you

don’t have a bunch of geniuses to work

ZLWK ² ÀQG RWKHUV ZKR DUH FUHDWLQJ FRRO

WKLQJV DQG ULͿ RͿ WKHP DQG VKDUH

\RXU ULͿV

Let go of ego.Because so many talentedartists are throwing ideas into the pile,the fact is that most ideas/sketches won’t

be used They’ll be discarded If youZDQW \RXU LGHD WR ZLQ \RX·OO ÀJKW IRU

it, but this only hurts the process Pixaranimators have to let go of their egos, andSXW WKH EHVW LQWHUHVWV RI WKH SURMHFW ÀUVW ,think this is true of any creative project

Everyone should know the mission well

Some studios outsource their animationwork overseas, but the animators oftendon’t know the movie, and don’t careDERXW WKH ÀQDO SURFHVV EHFDXVH WKH\·UHjust doing one tiny piece But at Pixar,everyone involved is trying to create thebest movie possible, and they take pride

LQ WKLV PLVVLRQ (YHU\RQH LV LQYHVWHG LQthe mission, everyone cares about thework they’re producing, and it shows inWKH ÀQDO FUHDWLRQ

Lots of hard work, tiny but amazingresults.When Pixar created Brave,

deleted scenes would have made thePRYLH ÀYH WLPHV DV ORQJ 7KDW PHDQVthat hours and hours of creative, brilliantwork was thrown out, and only the best

of the best of all of this creative processactually was used That’s a lot of amazingVWXͿ WR JHW YHU\ OLWWOH 7KDW PHDQV ZKDW

we see is of incredible quality

Surround yourself with heroes.WhenBernhard was interviewed for the job atPixar about six years ago, it took all day

The list of people interviewing him was alist of his personal heroes That’s who heworks with, the best in the world Howinspiring is that? You’d jump out of bed

to get to work each morning, wouldn’tyou? Not all of us are that lucky, but wecan surround ourselves with the work ofour heroes, and use them for inspiration

Shoot for the stars, or at least illuminateyour life with theirs

Help those just starting out.Bernhardgave us a tour, because a young man

is interested in computer animation “Iwas where Justin is now, and it’s nice topass on what I know today Passion anddreams are important to keep alive,” hesaid.EM

Simone Cooper is head of Franchising and Enterprise Development at Standard Bank.

FIND OUT MORE ABOUT SIMONE COOPER'S COMMENTRY ON WHAT YOU NEED TO BECOME A FRANCHISEE TURN TO PAGE 79 FOR MORE.

LET'S TALK BUSINESS.

1 6 E N T R E P R E N E U R M A G C O Z A J U N E 2 0 1 4

SMARTS

Start the

conversation

This year we’ve reflected on the

past year as we celebrated our

20th year of democracy.

It’s important, as we have

come a long way, and it reminds

us that we still have a long way

to go to achieve true freedom

for many of our citizens.

I have been inspired by

time spent with a group of

youngsters who are not as

fixated on the past as many

in my generation are They’re

school leavers and tertiary

students who participate in

the Future Leaders programme

run by Lead SA and the Centre

for Leadership and Dialogue at

GIBS Their stories of turning

negatives into positives are

remarkable Their general

optimism about South Africa

and making a success of their

lives is contagious Regardless

of their backgrounds, they have

come together in workshops

and bonded around their mutual

attitudes towards making a

difference.

We’ve handed over the Lead

SA Twitter handle to a future

leader for a day at a time, and

been amazed at their ability

to converse with diverse

audiences It gives me hope that

the next generation will be able

to unify our country in ways my

generation hasn’t.

Three years ago YUSUF ABRAMJEE,

head: News and current affairs,

Primedia Broadcasting, was part of a

small but committed group of citizens

who asked how they could make a

difference in our society and encourage

others to do the same The result was

Lead SA www.leadsa.co.za

LEAD BY EXAMPLE

by YUSUF ABRAMJEE

I RECENTLY OVERHEARDsomeone reply,when asked about her holiday weekend, “Itwas successful My New Year’s resolution was

WR RYHUHDW RQ HYHU\ PDMRU KROLGD\ , ÀJXUH ,·Pgoing to do it anyway; why not make it a goal

I can actually keep?” I had to laugh It made

me think about the goals we create in our livesand in our businesses

Many fall into one of two major categories:

7KH ÀUVW FDWHJRU\ LV JRDOV ZH VHW WKDW ZHhave a 95% chance of accomplishing –mostly because we’ve done it before, so thelikelihood is high that we’ll succeed The othercategory is goals where there’s a 95% level ofuncertainty that we’ll accomplish them, andwe’ve never done it before, but we’d like to

7KHUH DUH EHQHÀWV WR ERWK NLQGV RI JRDOV

<RX PLJKW WKLQN WKH ÀUVW NLQG RI JRDO LV IRUslackers, but there is some value in setting

JRDOV WKDW \RX·UH FRQÀGHQW \RX·OO DFKLHYH8VLQJ WKDW FRQÀGHQFH DV D VSULQJERDUG IRUtrying new things can be a useful thing – kind

of like doing the perfect swan dive as a

warm-up for an Olympic-calibre diver The problem

is if you stop at those, you don’t get to reallycompete with the big dogs

Goal-setting has been written about everywhich way This article is a little bit aboutsetting, but more about accomplishing thegoal The kind of goals you set is certainlyimportant, but for the sake of brevity, I’mgoing to assume you’re setting an uncertaingoal that has some reasonable chance ofsuccess The human brain is set up to helpyou achieve goals that you sincerely believeare achievable If you want to stretch yourself

or your business to new heights, here are mythoughts on goal-setting and goal-getting

Seven steps to achieving your goals By Scott Halford

Are you a goal-getter?

GOALS

1Dream, but be motivated It’s okay to

dream and have big goals But if you’re

actually going to accomplish them, you have

to do something about them, and that takes

PRWLYDWLRQ 7KH YHU\ ÀUVW WKLQJ \RX QHHG WR

achieve a goal is a reason and deep desire

to achieve it The path to achieving goals is

IUDXJKW ZLWK ERUHGRP H[FXVHV DQG GL΀FXOW\

You’ll have many opportunities to talk

yourself out of the goal, but going back to the

reason for the goal will help you stay on track

2Break it down into 24-hour bites If

your goal is to shed 10kgs, your brain

doesn’t see you 10kgs lighter in 24 hours,

but it can see you 500 grams lighter in that

time Set your goals so that your brain accepts

them Your mini goal must be reasonable and

sustainable

3Do something daily Nothing replaces

repetition and creating momentum like

doing something to get you closer to your

goal every day You’ll naturally take some

WLPH RͿ EXW LI \RX GRQ·W WDNH VHULRXVO\ WKH

ÀUVW  GD\V RI ZRUN RQ WKH JRDO DQG XVH WKHP

to create momentum, it’s almost guaranteed

\RX ZRQ·W JHW WKHUH 7KH ÀUVW  GD\V DUH

critical to convincing your brain that you’reserious

4Adapt and adjust As you work on your

daily mini goals and toward the biggergoal, be willing to adapt Make the mini goalsPRUH GL΀FXOW LI WKH\ VHHP WRR HDV\ 0DNHthem easier if they become too taxing

5Feedback and reward The human

brain responds to two things to learnand attain new behaviours and knowledge:

Feedback and reward As you go about yourgoal-getting, be brave enough to requestfeedback from others, and then rewardyourself each day for accomplishing your littlegoals Research has shown that even keeping

a calendar where you put a little gold star onthe days you are successful (à la kindergarten)FDQ EH HͿHFWLYH SRVLWLYH UHLQIRUFHPHQW 7KHvisual is enough reward for the brain to knowit’s doing something right

6Schedule slop time Schedule time when

you’re not focused on your goal, whenyou get to cheat on it or not do it at all You’regoing to do it anyway, so you might as wellallow yourself the room to be human so youdon’t feel dejected by temporarily ignoringyour goal Just don’t make it a habit

7Know you’re going to get bored Doing

something in small pieces each day canlead to boredom Do it anyway Achievinggoals isn’t always about a daily cork-poppingceremony to celebrate something sensationalyou did It’s usually about sticking to theGDLO\ ERULQJ VPDOO VWXͿ *HW WKDW ULJKW PDNH

LW VOLJKWO\ PRUH GL΀FXOW HDFK GD\ DQG GR LWagain and again People who achieve theirgoals usually do it because they kept goingwhen it gets tough and boring.EM

© Entrepreneur Media Inc All rights reserved.

The human brain is set up to help you achieve goals that you sincerely believe are achievable.

Knowing your industry +

Competitive edge + How to be

flexible = International clientele.

By Monique Verduyn

COMPANY:Hummingbird GroupPLAYERS:Bridget Scarr, Graeme CarrEST:2008

TURNOVER:R100 millionCONTACT:+27 (0)11 463 2448VISIT:www.hummingbirdgroup.net

Local company uses what South Africa has to offer to attract international clients

»Understand local and internationalmarkets to know where yourcompetitive edge lies

»Don’t do too many things underone brand — clients are looking forspecialists

»Be a subject expert if you want to leadyour industry

»Understand when to be flexible —clients will come back for more if youaccommodate them

»Understand the value of being aproblem-solver in your own businessand that of your clients’

a turnover of more than R100 million thisfinancial year

“It made sense for us to create fourseparate companies within the group, eachwith their own management team,” says Scarr

“Doing too many things under one brand can

be confusing Clients understand your offeringbetter when it is specialised.”

Where content meets technology

Scarr, who has a drama degree, but is entirely

WHEN IT COMES TO the production of

content, Bridget Scarr, MD of Hummingbird

Group believes there’s strength in numbers

Since she and business partner Graeme Carr

launched their first company, Pollen, in 2008,

they have taken the media, entertainment and

technology group on a growth path that has

involved several co-productions — joint film

and television productions that are shared

between two or more countries This has

made it possible for Scarr and Carr to team up

with foreign producers to pool their creative,

artistic, technical and financial resources to

co-produce lucrative international projects

For Hummingbird’s international partners,

South Africa offers the budget benefits of a

rich diversity of locations, low production costs

and a favourable exchange rate

All about growth

Pollen, a design, animation, post-production

and visual effects company, was launched

with R100 000 seed capital and broke even

in its first year In 2010, the two founders

branched out and added three new companies

to the group: Hey!Fever (content production),

Apiary (digital development) and Hive (content

licensing and management), all of which have

been self-funded The group is anticipating

self-taught when it comes to entrepreneurship,focuses on the strategy and business

development side of the group “Graeme is thecreative genius who has all the digital now-how,” she says “Our biggest differentiator

is that we truly understand the intersectionbetween content and technology

We understand the business of film andtelevision, and have the right creative andtechnical talent at our fingertips We are thepeople that people come to when they needproblems solved, or when they have a ‘whatif?’ We are excellent problem-solvers We hirecommitted people who are passionate aboutwhat they do Also, we have a vision of where

we are going, but we are flexible and not tooprecious, which is vital in our industry.”

A profitable future

Scarr says she and her team have anoptimistic view of the content market inSouth Africa, despite the state of the nationalbroadcaster “In the digital and mobile spacesthere is so much yet to be explored As long

as you trust your instincts, you won’t bedisappointed Our vision is to become thearchitects of the future of content, distributionand rights management for South Africa,Africa and beyond.”EM

TOP TIPS

J U N E 2 0 1 4 E N T R E P R E N E U R M AG C O Z A 2 1

TACTICS

Co-master franchisor for ActionCOACH in Southern Africa, as well as a certified, leading business and executive coach.

by HARRY WELBY-COOKE COACH’S CORNER

There is another concept I would like

to introduce This is the concept of therelationship

It’s important that you understandwhat a relationship can do for yourbusiness One of the most powerfulresults promotional campaigns bring

to any business is the relationship thatdevelops between the business andits target market A good relationshipmeans your customers will trust whatyou say; they will be more likely to takeyour advice than if the relationship wasnon-existent Also, your promotionalcampaigns will become interactive

TOP-OF-MIND AWARENESS

Just know that when it comes toattracting customers, the only realGLͿHUHQFH EHWZHHQ \RXU FRPSDQ\ DQGNike, Apple or Burger King is greater,bigger promotions Let’s look at whysuch well-known, successful brandsspend millions on promotions TakeCoca-Cola Do you think this companyreally needs to invest the money itdoes on promotional activities eventhough the product probably enjoys thehighest levels of brand recognition inthe world? Of course it does If Coca-

&ROD ZHUH WR EDFN RͿ MXVW D OLWWOH WKHcompany would lose vital ground to itsopposition It’s all about top-of-mindawareness Companies like Coca-Colahave been doing this for a very longtime and they do it in a systematic way.Its promotional machine has developedmomentum but the company needs toNHHS LW UROOLQJ ,I LW ZHUH WR VODFNHQ RͿ LWwould lose momentum and of that youcan be certain

So what does the term promotionactually mean? According to thedictionary, the word ‘promotion’ is

to ‘help the progress of’ Promotionalactivities are designed to bring in leads.They involve activities like publicity,advertising, sponsorship, direct mail,in-store signage, window displays,network functions, to name a few There

is nothing mystical about promoting abusiness It’s very straight forward andlogical once you know how, and it’simperative for your business successthat you learn how.EM

MANY YEARS AGOwhen we were

still well and truly in the industrial

age, manufacturers thought all they

had to do was to produce a great

product and it would sell itself That

was before they knew anything

about marketing and promotions

They had yet to discover the secret

that true business success occurs in

understanding the needs and desires

RI WKHLU VSHFLÀF WDUJHW PDUNHW

Business leaders then worked out

that if they were to identify what it

was people needed, then concentrate

on producing just that, they would

have a ready market But even doing

this didn’t guarantee them overnight

success It wouldn’t necessarily result

in consumers falling over each other

to buy Why? Because if the consumers

didn’t know the product was available

and if they didn’t know where to get it

– how could they clamour for it? They

realised they had to promote their

product or service and their business

This is still the position today

Yet how many businesses, in this

advanced technological age, this age of

information, actually devote enough

resources to promotion

TEST AND MEASURE

The key to successful promotion

is consistency It’s wise to developpromotion strategies that promoteyour business in a consistent,deliberate manner and on a regularbasis It’s a planned activity – notsomething that just happens

The greatest business people andmarketers understand the concept

of testing and measuring all theirpromotional activities When youare testing and measuring, everystep brings you closer to the rightformula and the right approach If youapproach your marketing expectingHYHU\WKLQJ WR ZRUN WKH ÀUVW WLPH

you’ll be disappointed when youdiscover it doesn’t You may give upbefore you should Marketing andpromotions have certain rules, butit’s still largely a matter of trial anderror You give it your best guess andWKHQ ÀQG RXW IRU VXUH ,W·V HVVHQWLDOthat you record every result It’sextra work, but you will be relievedwhen you have a marketing strategyyou know will produce results ThatFRQÀGHQFH FRPHV RQO\ IURP WHVWLQJand measuring

BUILDING TRUSTUse promotions

as the bridgebetween youand yourcustomers

to build asales pipelineand retaincustomers

22 E N T R E P R E N E U R M A G C O Z A J U N E 2 0 1 4

TACTICS

Before you own your industry,

your clients need to love you

Do what you say you will do and be the one who respon s:

Two v luable keys to building excellent client r lationships.

By Douglas Kruger

CUSTOMER SERVICE

ONE OF THE WORLD’S GREATEST credibility

boosters is doing what you say you will do In

other words, be true to your word Keep your

promise This is inarguably the mark of a true

professional Not only that, but it is universally

recognised as the sign of a quality human

being

As one of the oldest and most revered values

of the human race, this one is like a golden

ticket to the esteem of others Be true

Of course, it’s also hard work And it implies

a two-prong approach: On the one hand, once

you have agreed to do something, you should

do it; on the other hand, you shouldn’t agree to

do anything you don’t believe you will do It’s a

sign of immaturity to say yes to every request

just because you hate to disappoint people

You will just disappoint by not holding true to

your commitment You have to be selective

Sometimes, saying no is a sign of maturity

And it’s often the simple things that really

count here: Returning a call, finding the contact

details that someone requested, sending that

email that you promised The important thing is

to be consistent

Don’t become known as the person who

doesn’t respond… the person who is a constant

frustration to deal with

Of course, it applies to the big deal stuff as

well I know of at least two speakers who have

disappointed their agents — the same ones who

I ith — and been taken off their books as

a re magine the consequence of not doingwhat you said you would once, and losing allyour future business from one revenue stream

as a result!

In my industry, that constitutes careersuicide These speakers should have doneeverything in their power to woo their agentsback I can tell you that they didn’t And

in this way, careers are made and broken

Professionals are born and abolished

Be true to your word The alternative is notworth it

Key question:

If you’re honest with yourself, when lastwere you not true to your word?

BE THE ONE WHO RESPONDS

Let’s go one step beyond doing what yousay you will Let’s look at the idea of turning

‘response’ into a proactive technique thatactually sets you apart

Sounds simple, but it’s a big deal One of

my agents once confided in me that she uses

me on a regular basis, instead of other equallyskilled speakers on her books, just because Irespond more rapid y and more professionally

T is means I’m making more sales, and earningmore as a result of this concept, and this makes

it an expert positioning technique

A big part of the perception ofprofe sionalism is based on hether and h wswiftly you turn around your communications

So always check and return emails and

v icemail, even if you ha e to do i late in theevening Of cours , immediately is bet er t anlate in the evening

I can’t count the number of times I haveemailed mul iple service providers asking forquotes, only to give the sale to the person whoresponded quickest Equally, I can’t count thenumber of times that two out of three serviceproviders just didn’t bother to respond at all.That’s pathetic And that puts yo one businesstransac ion down on your competitors anddamages your brand

Also, don’t assume that you know what aperson wants Just because you see a missedcall from ‘that guy’, don’t assume that youknow what the message might be

I made that mistake once (ironically, withthe same a ent who’s usually impressed by mycommunication), when I believed she wanted

to chat about a certain issue At the time, ehad a large corporate client who had beentreating us in an uneth cal manner I received

my agent’s text message asking me to giveher a call Instead of calling back, I wrote anemail expressing my views on the matter andthen carried on with my life Three days later,she called me, pointing out that she had acompletely diffe ent assignment that she’dbeen wanting to iscuss with me y hesitation

in returning the initial communication meantI’d compromised my chances of landing thenew assignment, and annoyed my agent Badmove.EM

DOUGLAS KRUGER is the author

of 50 Ways to Position Yourself as an Expert, and co-author of So You’re

in Charge Now What? 52 Ways to Become a Better Leader His latest book is Own Your Industry.

WIN A COPY Win one of two copies

of Douglas Kruger’s new book, Own your Industry Go to www entrepreneurmag co.za and click on

‘Competition’.

Just because you see a missed call from

‘that guy’, don’t assume that you know what the message might be.

WITH ADVERTISERS ACKNOWLEDGING

the growth of digital marketing, campaigns

and projects are better funded and more

exciting Nick Durrant, MD of digital

production agency BlueGrass Digital, says

WKHUH DUH ÀYH WKLQJV \RX QHHG WR NQRZ DERXW

the local digital landscape

1What does the digital space look like?

The rise of social media in marketing,

coupled with more people accessing

information on their mobile devices, has had

a major impact on the way we do business

and how we deliver projects and technology

The digital revolution is well underway in

6RXWK $IULFD DQG DQ\ EXVLQHVV FDQ EHQHÀW

from a digital strategy

2What are the major trends?

The growth in mobile is a big focus

Social media is always evolving and will

DOZD\V SOD\ D VLJQLÀFDQW UROH EXW PRELOH

is the key to unlocking growth in the

African market Mobile has been around for

years, but under-utilised in the consumer

marketplace Now, with enhancements in

mobile technology, especially smartphones

and mobile Internet, it’s clear that mobile will

EH D ELJ IRFXV RYHU WKH QH[W ÀYH \HDUV

Poor broadband and the high cost of

KDUGZDUH PHDQ WKDW D XVHU·V ÀUVW H[SHULHQFH

with the Internet in Africa often happens on

a mobile device As smartphones and tablets

become cheaper, growth in Internet usage

will accelerate E-commerce is also starting to

rear its head in this market and the need for

reliable e-commerce platforms is growing as

the market matures to online spending

3What should business owners expect

from a digital partner?

There is a shift from tactical implementation,

to strategic involvement from the start

And there is no amount of resource,TXDOLÀFDWLRQ WDON RU PXPER MXPER WKDWcan replace the experience provided by hard

\DUGV ODWH QLJKWV GL΀FXOW VLWXDWLRQV FOLHQWdemands and changing briefs

4When should you go digital?

The answer is now Every companyFDQ EHQHÀW IURP D GLJLWDO VWUDWHJ\ DOWKRXJKWKH PL[ PD\ EH GLͿHUHQW IURP LQGXVWU\ WRindustry To create one, you need to apply thebasics as you would in drafting a traditionalmarketing plan You need to determine thereasons for the campaign upfront, as well asthe KPIs What’s great about digital is thateverything is measurable

5Are you taking advantage of social media?

One of the most attractive aspects of socialmedia is that there is no cost to entry Ifyou’re an entrepreneur with no experience

in this area, think about hiring a graduatestraight out of university whose cost tocompany will be low For this generation,social media is part of their makeup Laydown some boundaries about what can andcannot be said, and how they are permitted torespond to the public, and take advantage ofthe knowledge they have If you give them aframework in which to operate, they can help

to implement your growth strategy.EM– MONIQUE VERDUYN

Digital is becoming the glue

that binds all the elements of

a killer marketing campaign.

Local IT business achieves impressive growth in a slow market thanks to a mix of partnerships, people development and a leader who trusts and is trusted in return.

BUILD

CAREL DU TOIT, a self-taught IT

entrepreneur who has run his ownbusinesses since high school, tookover the leadership of IT servicesand consulting company MintManagement Technologies in 2012

Du Toit joined Mint as a softwaredeveloper in 2000, when thecompany was just six months old

He had completed a BCom degree

in marketing at Stellenbosch, andhad just sold his own softwarecompany As Mint’s business grew,

so did his responsibilities Hestarted to oversee relationshipswith big blue chip clients andbecame part of the executive team

in 2006, taking on the role as head

of sales at the same time In 2012,

he was appointed MD, heralding

a new chapter in the company’shistory Under his leadership, andwith the support of fellow directorsYvonne Dias and Francois Pienaar,Mint has grown in leaps and bounds,with turnover in the last financialyear reaching R55 million, up 30%from the previous year

2006: Du Toit becomes a director of

the company

2012: Du Toit appointed MD of Mint,taking over the reins from DavidWoolnough

Mint wins two Microsoft Partner

of the Year awards, one forMobility Solutions, and anotherfor CSI

2013: Turnover reaches R55 million,

up 30% from the previous year

Was the change in leadership a big

transition for the company?

No I had been part of the Mint

directorship team for the previous

six years, and part of the team for

more than 12 years I also had a lot of

experience in both the consulting and

mobility sides of the business Beyond

that, we had made our customers,

partners and service providers aware

that the change had been planned and

that we had prepared for succession

planning and smooth continuation of

the business

Describe your business philosophy

We live by our company values, which

include our drive to be first in an

extremely competitive sector, and

we can only achieve that though our

relationships with employees, partners,

and customers Our core philosophy is

about partnerships We partner with

our customers to build a roadmap that

helps them to differentiate themselves

from their competitors, drive revenue

and profit growth, and improve their

service offering to their own customers

We do this through a combination of

technology, services, and consulting

skills that add value to our customers

It’s an approach that has won awards

for the company, with Microsoft

recognising our ability to attract new

customers, grow the business, innovate

and enable people to succeed

Why is people development important

to you?

This business is built on the right mix

of people That said, to trust, you have

to empower your team to enable them

to deliver We want to be first in our

industry, so the company ploughs a lot

of time and money into training and

education In a country where IT skills

are scarce, we do our bit to alleviate

the shortage through our graduate

internship programme, which we started

in 2011 We employ a handful of talented

young graduates every year, give them

much needed on-the-job training, work

experience and mentoring, and we help

them to grow into valued IT resources

These are talented young people who

gain exposure to the IT sector and

to demanding and complex client

environments We prepare them for the

world of work, and employ those who

really shine

We have many competitors, and we are alsoone of the few independently owned playersleft in the market, following a period ofconsolidation We seek partnerships with like-minded customers, and we measure success

by the amount of repeat and referral business

we get Our strategy is to have ten key clients

on board and we went from three to sevenbig clients in 12 months This representsenormous growth for Mint and is proving to be

a successful strategy

What makes your team so successful?

Our objective is to always add value to ourclients’ business We are a services business,but we do not believe in body shopping —

we don’t hire out IT workers to customers

Instead, we insist on being involved in ourclients’ strategy That is the only way to create

a win-win scenario in a commoditised market

The substantial time that our sales executivesspend with our clients in a year, so as tounderstand their business, is how we creatework for the next year Our work for a clientdoes not come to an end when the project is

concluded Instead, our contracts are flexible,and targeted at meeting clients’ needs as theychange It’s a high-risk model, but the repeatbusiness that arises as a result makes it highlyprofitable In our industry, you cannot sell andmove on Like a financial advisor, you have tocontinue to prove your value to the client

What is your personal business mantra?

I trust my gut If a deal looks too good to betrue, it usually is Also, always be sure that youare selling something for the right reasons,and not just to achieve targets — have the rightend in mind I don’t believe in spending timeworrying about what could go wrong I havefun at work If you are optimistic, things fallinto place To get that right, you have to havethe best people on board, which is where it allstarts We screen prospective employees Wetest for IQ, EQ and culture fit We also have

a business coach who is employed by thecompany Coaching provides encouragementfor people to work harder to achieve peakperformance Our teams are also able to learnmore effective methods or skills needed to

do their jobs well, and they can more easilyidentify personal strengths and weaknessesand focus on what they do best I believe thattalented and empowered people are the basis

of all success.EM

MINT IS A MICROSOFTPARTNERand is comprised

of two operations: MintConsulting and MintMobility The consultingbusiness provides solutionsbased on world-classtechnology that enablesbusiness efficiencyand accuracy, helpingcompanies from a processand technology perspective

With a proven trackrecord in this sector,Mint has clients on threecontinents and has wonmany awards from Microsoftfor its solutions

In the mobile space, Mintsolutions help to make salesand field services teamsmore efficient by enhancinginformation, communicationand data exchange, allowingthese teams to operate in acompletely mobile and real-time manner

The company gives itscustomers control of theirinformation and governanceprocesses to ensure thatthey achieve sustainableresults This is done throughthe implementation ofcustomer management,mobility services,

information access, processautomation and specialiseddevelopment solutions.Clients can chooseindividual components to

fit their existing businesssystems, or they may opt tohave a complete end-to-endsolution that automates theentire sales, service andmarketing process

Mint’s business model

is built on shared risk andreward, and aims to driverevenue, profit and growthfor the company and itsclients

WHAT DOES MINT DO?

Our contracts are flexible, and targeted at meeting clients’ needs as they change It’s a high-risk model, but the repeat business that arises

as a result makes it highly profitable.

Carel du Toit views himself as a

trusting leader “I believe trust is a

key leadership skill You can’t work

with anyone without trust The more

senior you get, the more important

it is to build trust, as people get

less direct access to you Mint’s

employees are on the team because I

believe in them.”

Leadership used to be about

power and vertical relationships

in a siloed business environment

Today, leadership theorists stress

authenticity, EQ and horizontal

relationships Above all, they

highlight the growing importance

of trust

That is because the business

world has changed, according to

Charles Green, author ofTrust-Based

Selling and CEO of Trusted Advisor

Associates: “The business world went

from vertical to horizontal; flat, if you

prefer.” Green says the boundaries

separating businesses from their

employees, their suppliers, and even

their competitors have become

porous

“In such a world, vertical

power-based leadership becomes less

relevant The key success factor

becomes the ability to persuade

someone over whom you have no

power to collaborate with you in

pursuit of a common mission.”

Trust is a relationship established

between a trustor and a trustee

The role of the trustor is to take

risks; the role of the trustee is to

be trustworthy When each is good

enough at their roles, a state of trust

results

New leaders, says Green, rely on

the power of trust “They themselves

will be skilled at trusting, because

trusting and trustworthiness

enhance each other They will be

good at collaboration and the tools

of influence They will operate from

a clear set of values and principles,

because opportunistic or selfish

motives are clearly seen and

rejected.”

HOW TRUST

ENABLES

LEADERSHIP

Let go of preconceived notions and embrace becoming

a better leader — and encouraging others in your

organisation to do the same By Mark Sanborn

Here are seven leadership lies and whythey simply aren’t true

1All managers are leaders

Truth:Some managers can lead andothers don’t or cannot Management is asubset of leadership, not its equivalent.Managers are good at setting up,monitoring and maintaining systems andprocesses They hire people But if theycan’t bring out better performance inpeople and take the organisation beyondwhere it is, they aren’t leading

Leadership always involves change,improvement and growth

LEADERSHIP

7 leadership lies you

need to stop believing

2Some are born leaders

Truth:Even someone with a

predisposition to lead must learn the skills

of leadership

Leadership might be more latent in

some than others – and you can’t always

tell – so focus on what is developing

someone’s behaviours, not their biological

background

3Leaders always have the right

answers

Truth:Leaders ask the right questions

DQG NQRZ ZKHUH WR ÀQG WKH EHVW DQVZHUV

If your people always come to you for

answers, you’re stunting their ability to

think And if everyone in your company

keeps asking the same questions, I assure

you, you’re not that innovative

Without questioning and curiosity,

leaders simply manage by using familiar

answers long after the marketplace has

VWDUWHG DVNLQJ GLͿHUHQW TXHVWLRQV ,W LVQ’t

about knowing the answers as much as it is

about knowing who to ask and where

to look

4You need a title to lead

Truth:To lead you only need to knowwhen it is appropriate to do so and how to

do it When I stay at a hotel, the majority

of people I encounter – from the front desk

to housekeeping to foodservice – have noformal title or power over people, yet theyDUH UHVSRQVLEOH IRU FUHDWLQJ P\ H[SHULHQFHWKHUH ² JRRG RU EDG *RRG VWDͿ ZLOOLQJ

to take the lead are as important (andSUREDEO\ PRUH WKDQ WKH R΀FLDO OHDGHUV DWthe top Leadership is about making thingsbetter, and the best organisations teacheveryone to take responsibility for leading

5Leaders are focused

Truth:Leaders create a shared focus

If your team isn’t focused, it doesn’tmatter how focused you are on doing whatmatters A manager is usually focused, but

a leader creates shared focus and doesn’twaste resources by allowing team members

to do work that doesn’t matter

Being focused is about self-responsibilityand discipline Creating shared focus isabout engaging others in the leadershipDJHQGD DQG PDNLQJ LW VSHFLÀF WR WKHLU MREV

6Leadership is about ambition

Truth:Leadership is about thegreater good There’s nothing wrongwith ambition, but it primarily serves theambitious If what you’re doing serves onlyyou, you almost certainly aren’t leading.When others are served better as well– customers, colleagues, vendors, theFRPPXQLW\ ² WKDW LV WKH VLJQ RI HͿHFWLYHleadership

7Anyone can lead

Truth:Nobody can lead if they lack thedesire to do so You can’t make people leadany more than you can make a horse drinkonce you’ve led it to water Desire is thesine qua non RI HͿHFWLYH OHDGHUVKLSAnd you, Mr or Ms Leader, cannotbecome better without the same desire.I’ve observed that nobody improves byaccident Getting better is about gettingpast the common thinking, lies andmisconceptions and digging for wisdom.Once you know the truth, it can set you freeand make you a better leader.EM

© Entrepreneur Media Inc All rights reserved.

a turnaround plan and Georgeimmediately went to work Stock thatZDV ROGHU WKDQ VL[ PRQWKV ZDV FOHDUHGfor cash and that alone covered hispurchase price plus some withinWKH ÀUVW \HDU ,W WRRN VL[ PRQWKV WRget right but his debtors book cameback to an acceptable 45 days and

he shrunk his customer base to ahealthier 1 200-odd from the 1 600-odd that had patronised the businessbefore

*HRUJH KDG DOVR UHIUHVKHG KLV VWDͿFRPSOHPHQW 7KH DYHUDJH DJH RI VWDͿwas now 37 as he brought in freshblood and reinvigorated the business’senergy None of this happenedwithout sleepless nights There weremany moments when George believedthat the present week of tradingwould be his last The reason he gotthe business for a song was that healso took on the legacy bank debtthat the founder had managed toaccumulate to an impressiveR3,8 million!

BUILD A COMPETITIVE MODEL

With the turnaround complete, wewere now to take the business to itsQH[W OHYHO $V D JHQHUDO ZKROHVDOHUGeorge was vulnerable Theindependent retailers organisedbuying groups, the chains organisedprocurement divisions and theChinese direct trading capabilitieswith South Africa were making it

Silent killers of great businesses

and how to avoid them

FIRST WARNINGSilent killersare lurking

in everyone’sbusiness —which areyours?

Are your profits falling, overheads increasing and turnover a fraction of what it used to be? You might have fallen prey to these four silent killers of entrepreneurs and their businesses.

CEO of Aurik Business Accelerator, an organisation that works with business owners

to grow their businesses into assets of value.

by PAVLO PHITIDIS GROWTH GURU

WHAT A DRAMATIC HEADING.

Silent killers! Yet, I see them at

work every day with many of the

entrepreneurs that I work with

These killers are seldom obvious

and yet destroy the lives of solid

entrepreneurs, eroding the value

of some of the country’s best

businesses and brands These killers

are so insidious that they are most

likely operating in you and me

today In fact, I know they are!

Recently I received a phone call

from an entrepreneur that I’d done

some really interesting work with

a few years back His business wasmature when I met him It had been

in operation for over 28 years and

he had bought it from the originalfounder 17 years back He got it for

a song It was a general wholesalerimporting general hardwareequipment and consumables as well

as homeware

When we met seven yearsback, George had done a lot toclean the business up At thetime of purchase, debtor’s dayswere averaging at 102, stock turnratios were a mess and customer

J U N E 2 0 1 4 E N T R E P R E N E U R M AG C O Z A 33

BUILD

H[KDXVWLRQ ,W·V YLWDO WKDW DV DQHQWUHSUHQHXU \RX ÀQG ZD\V DQGmeans to constantly build yourentrepreneurial psychic energy Oftenthis is found through people, gettingKHOS IURP VSHFLÀF SHRSOH ZKR LQVSLUHyou, thinking big and taking smallsteps to get to the big idea The cost

of comfort is a fading interest thatwill result in you not dealing withthe increasing number of little thingsthat erode the businesses performancesuch as late payments, draggingcompliance deadlines, late arrivalIURP VWDͿ VRIWHQLQJ SULFLQJ IURPsuppliers and the like

COCOONING

7KH H[KDXVWLRQ RI HQWUHSUHQHXUVKLSDͿHFWV HYHU\RQH ,I \RX DUHintroverted by nature, this killer willimpact you even more By isolatingyourself from your environment toÀQG VRPH UHSULHYH IURP WKH KHFWLFweeks that govern your business,life will only bite you in the back Ifbusiness is about people, you cannotDͿRUG WR QRW EH PHHWLQJ SHRSOH DQGactivating a sensible networkingcalendar as a business developmenttool to prevent isolation from yourindustry, politics and the peopleLQÁXHQFLQJ WKH GLUHFWLRQ RI WKLQJV WRcome that will impact you and yourbusiness Loneliness is bad enoughwithout you having to amplify it!

BLAME

There are many reasons for ourinability to succeed in business Fromuncertain government economicpolicy, red tape, compliancy pressures,ZHDN VWDͿ FDSDELOLW\ DQG VNLOOV DV

a result of a shocking educationalsystem, potholes and Nkandlaamongst others There is a perversesatisfaction in being able to blamesomething else for our inability tomove ahead and make it happen.The reality is that everyone is in thesame boat Languishing in blame onlydepletes the most precious commoditythat we have Time It can never betaken back The remedy might well

be to take a teaspoon of cement withhoney and toughen up A business isbuilt through action, not ideas andbuilding a business anywhere in theworld is tough!EM

easy for retailers to import direct

What George wanted was the ability

to build the business into an asset

of value This is a business that

can be sold for a premium price or

alternatively can relatively easily

raise growth funding if required

We needed to build a moat around

George’s business Something

WKDW ZRXOG PDNH LW GL΀FXOW IRU

his customers and competitors to

compete with him His castle needed

a defensive line around it that would

safeguard its value

After some consideration, the

strategy of the business changed

George would migrate the business

model from a general wholesaler to a

branded distributor This was going

to take some doing and the starting

point was to work with what he had

² JRRG VWDͿ JRRG RSHUDWLQJ V\VWHPV

DQG UHOLDEOH EDFN R΀FH ERRNNHHSLQJ

DQG DFFRXQWLQJ FDSDELOLW\ H[WHQVLYH

customers in the hardware and

home-ware retail market

The change in the business model

took some time Moving from a

general wholesaler to a branded

DJHQW GLVWULEXWRU FUHDWHV D GLͿHUHQW

emphasis on the business For

H[DPSOH LW UHTXLUHG D FRPSOHWHO\

GLͿHUHQW PDUNHWLQJ V\VWHP WR EH

built Branded agent distributors have

WR LQÁXHQFH WKH PDQ RQ WKH VWUHHW

as well as their retail distribution

channels The man on the street

needs to ask for the product and

the channels need to promote the

product Before, the man on the street

was largely irrelevant to George since

his retail chain took care of moving

KLV QRQDPH SURGXFWV RͿ WKHLU

shelves The premium associated with

branded products needed this new

GULYH DQG PDUNHWLQJ HͿRUW

:LWKLQ ÀYH \HDUV *HRUJH KDG  ELJ

name brands that he represented His

PDUNHWLQJ HͿRUWV ZHUH ZHOO RUJDQLVHG

DQG SD\LQJ RͿ %XVLQHVV EHJDQ WR

boom again During this time, George

QHJRWLDWHG H[FOXVLYH VXSSO\ LQWR D

retailer for a branded product that he

represented in sub-Saharan Africa

The retailer had 283 stores around

South Africa George’s business

boomed Cash was being generated

in the business at a rate unseen before

but getting the deal done, securing

the supply from his principles abroad

and bedding down the logistics

and distribution to meet the servicelevel agreements with this retailerhad taken their toll on George

([KDXVWHG *HRUJH EHJDQ IRU WKH ÀUVWtime to take the odd holiday

KEEP WORKING ON YOUR BUSINESS

In my recent meeting with George, Iwas saddened to see a dramaticallyGLͿHUHQW PDQ +H ORRNHG IDGHG DQGH[KDXVWHG +LV IRUPHU HQWKXVLDVPhad been replaced by a cynicism andresentfulness towards arbitrary foes

² WKH H[FKDQJH UDWH WKH VFKRROLQJsystem, toll roads! He was meetingwith me in order to get someassistance to prepare the business forsale It was clear that he was sick of it,VLFN RI KLV FXVWRPHUV VWDͿ VXSSOLHUVand everything else

We looked through his last three

\HDUV RI ÀQDQFLDO VWDWHPHQWV 7KHbusiness had hit a turnover level ofR79 million in its peak and today wastrading at 24% below that high This

is not necessarily a problem if theratios remain the same since changes

in turnover can be driven by manythings I looked on and saw that hisJURVV SURÀW KDG IDOOHQ E\  DQGoverheads increased by 16% Thiswas not good What was especiallydisturbing was that George did notseem to care

$IWHU DQ H[WHQVLYH FRQVXOWDWLRQ

it was clear to me that George hadfallen prey to the four silent killers ofentrepreneurs and the businesses thatthey build

COMPLACENCY

When securing a great long-termcontract that spits cash into thebusiness every month manyentrepreneurs feel that they can take abreather The everyday worrying slog

of the business lifts The paranoia ofUHPDLQLQJ DÁRDW IDGHV 7KH WROHUDQFHIRU FRQÁLFW DQG WKH ÀJKW WR JHW WKHbusiness to where you want it softens

,W ZDV H[DFWO\ WKHVH FRQGLWLRQV WKDWOHG WR WKH VHOOHUV R΁RDGLQJ ZKDW ZDVoriginally a good business to Georgefor a song It was within a year of hisbig deal that George fell prey to thesame condition

COMFORT

:H DOO VXͿHU IURP HQWUHSUHQHXULDO

JOURNEY BACK

TO HEALTHSmall changes

in strategycan result

in massiveimprovements

3 4 E N T R E P R E N E U R M A G C O Z A J U N E 2 0 1 4

BUILD

THE MARSHMALLOW CHALLENGE is a simple

team-building exercise withincredibly deep insights foryour business The objective

is to build the tallest standing tower using 20spaghetti sticks, 90cm of tapeand 90cm of string, with asingle marshmallow on top In

free-18 minutes This forces people

to collaborate quickly

Start the clock!

Typically, 2,5 minutes are spentorienting, 3,5 minutes planning (akajockeying for power), 10 minutesfor building, followed by the grandreveal, which promptly collapses.Who’s the worst at this exercise?

“Recent business school graduates.They build really lame structures

From kindergarten class to retirees,

art is a stimulus for imagination For

entrepreneurs, imagination of an abstract

nature, essentially that more akin to

dreaming, is the driving force for creativity,

endurance and success Here is how to fire

up your own dream machine and recharge

your journey to greatness

Sketch the dream

In your business, you are engrossed in

keeping it afloat today However, you

must keep imagining the future Critically,

a future imagined must be sketched

Specifically, state what your expanded,

more profitable business will look like;

profile its typical employee, its office

culture, its customer profile, its products

and services and what it will do best

Centre the dream

Why would your dream or imagined future

change the world? If the dream fails to

materialise, who would miss it? Transition

from the artistic, creative sphere to the

concrete and rational sphere by connecting

the dream to your life purpose and how it

can enable you to serve others better

Activate the dream

Just like exotic art, entrepreneurial dreams

remain abstract until they are interpreted

into a life form Create a physical space for

the dream, a studio where you carve it out,

invest time in nurturing it, invite others who

can supercharge it, and let go of habits that

stand in the way of its realisation

Self-induced, entrepreneurial dreaming

is free, yet it could be your most valuable

investment in your business

Corporate strategist LIZWE NKALA

explores the role of a successful business

leader in today’s competitive world.

a leader one of your primary tasks is toset direction for your company that willovercome current threats, sustain value

for all, outdo your competitors, infuse youwith energy and ultimately break througheverything that obstructs or impedes onthe way

This kind of leadership requires a highlevel of strategic creativity Creativity inVWUDWHJ\ DOORZV H[HFXWLYHV WR SOD\ ZLWKbig ideas and break through boundaries

It deals with a way of thinking thatallows leaders to go beyond what their

Strategic creativity drives

growth

STRATEGY

Tools that will help you break through everything that obstructs or impedes your business’s growth.

By Charlene Lew

Spaghetti and a marshmallow can revolutionise your business

Leadershiplessons fromsix year oldsYou don’t need to be Steve Jobs to foster creativity in your business

J U N E 2 0 1 4 E N T R E P R E N E U R M AG C O Z A 35

BUILD

competitors may be doing, what’s been done

before and what they are currently doing

The seeds of such creative thinking can be

found in every good strategy

If, however, creativity is about having

new ideas, multiple solutions and unusual

VWUDWHJLHV DQG LI FRPSOH[LW\ DQG DPELJXLW\

increase as you ascend the corporate ladder,

then nobody needs creativity more

WKDQ WKH H[HFXWLYH %XW FUHDWLYLW\

UHPDLQV D ODUJHO\ XQH[SORUHG

source of positive change,

especially for senior leaders

Whether it is to compete on

assets like Shell, restructure

your company to be more nimble

like Toyota, or carefully choose

the release dates of your products like

Apple, the logical choices in business remain

important But alongside strategic planning,

it has become high time to prepare for

unknown futures, re-evaluate your relevance

and shape tomorrow How do you do this?

+RZ GR H[HFXWLYHV HPEUDFH D FUHDWLYH

counter-intuitive way of thinking to drive

new results? Here are four practical tips for

developing strategic creativity

1Ask, look and listen more When

\RX H[SRVH \RXUVHOI WR ZLGHUDQJLQJ

viewpoints and information, you introduce

new thoughts that challenge set mental

patterns It may be by sourcing new ideas

from all ranks and challenging your

employees to come up with new solutions

/D]DUXV 5DPDVKLODEHOH UXQV DQ ([[DUR PLQH

and to drive a culture of high performance

he has introduced a campaign called ‘Every

second counts’ He wants hard results and

the aim of this campaign is to let everyonegenerate creative ideas “Challengingeverybody to be creative has resulted notonly in useful ideas, but also a wave ofH[FLWHPHQW WR PDNH WKLV FXOWXUH KDSSHQµsays Ramashilabele Leslie Matthews, CEO

RI 7HPSHVW &DU +LUH KDV DOVR H[SHULHQFHGthe value of contrary views “New ideascome to the fore when I allow mycolleagues to have a robust debatewith me, without any concernwhatsoever of reprisals Thisthen stimulates my thinking ofalternatives in strategy, instead

of me forcing my thinking

RQ WKHPµ

2Play more In diverting your

attention to less serious or pressingissues, you gain and generate energy It isnot about doing frivolous things, but doingthings that allow you to test various risks

Tempest’s Matthews puts it this way: “WhenSHRSOH DUH UHOD[HG LQ WKHLU LQWHUDFWLRQV DQGFRPPXQLFDWLRQ WKH\ EHFRPH FRQÀGHQWDQG FRQÀGHQW SHRSOH EHFRPH FUHDWLYH DQGSRVLWLYH SHRSOHµ ,Q KLV H[SHULHQFH FUHDWLQJ

DQ HQHUJHWLF SOD\IXO DWPRVSKHUH LQ WKH R΀FHbrings a sense of happiness and subsequentRXWRIWKHER[ WKLQNLQJ

3Dream more.,Q 'LVWHOO·V *KDQD R΀FH

Burton Swain, GM of trade marketingwrites on glass, doors and walls to visualisehis thinking “If I draw the strategic roadmap,

it helps us all to focus on the year ahead

Our strategic picture forms part of all ourmeetings, and helps us to add to our ideas orWUDFN RXU SURJUHVVµ KH VD\V 7KLV LQWURGXFHV

creative shifts in your own perspectives andlets others see new possibilities

4Work more Developing creative

skills also involves hard work and theGLVFLSOLQH RI SXWWLQJ HͿRUW WRZDUGV XVHIXOpractical and relevant solutions, rather thanillusions or fantasies It requires you tocombine your divergent, outgoing thinkingwith your convergent, logical and practicalthinking Bruce Strong, CEO of the packagingbusiness Mpact, has turned his strategyreview process on its head to do this Instead

of starting with the vision and mission inPLQG KH KDV DVNHG DOO WKH OHDGHUV WR ÀUVWidentify opportunities and only then to map

it through analytical processes to strategicintent Strategy for Mpact has become muchmore practical in the process

What is certain is that all businesses willface completely new sets of challenges inthe future and customers of tomorrow willKDYH QHHGV WKDW GLͿHU TXDOLWDWLYHO\ IURPwhat customers need today As a businessleader in South Africa, strategic creativityshould be embraced as a source of positivechange, growth and resilience, especiallyfor senior leaders It has to be developedthrough practice and as part of a personaldevelopment plan Opportunities to learn,SOD\ GUHDP DQG H[HFXWH VKRXOG EH DFWLYHO\sought out as part of strategic thinkingtowards new and better futures.EM

because they’re taught to

come up with one right

plan,” says design workshop

guru, Tom Wujec “They

spend all their time building

and jockeying for CEO of

Spaghetti Inc Then when

the structure collapses, it’s a

crisis.”

The best teams are six

year-olds This isn’t just

hilarious, it’s valuable They

produce the tallest and most

interesting structures because

there’s no planning or power

struggle They also start withthe marshmallow They buildmultiple prototypes, alwayskeeping the marshmallow

on top It’s the essence ofprototype iterations

How does a $10 000 prizeaffect employees? They failevery time Why? Unlessthey understand and valuethe process of prototypingand iteration, the highstakes negatively affectperformance

— TRACY-LEE NICOL

DR CHARLENE LEW is a senior lecturer in strategic leadership decision- making at the Gordon Institute of Business Science (GIBS).

Four ways

to foster creativeexecutives forfast-trackedgrowth

To see some great examples of the marshmallow challenge at work,visit www.marshmallowchallenge.com

36 E N T R E P R E N E U R M A G C O Z A J U N E 2 0 1 4

BUILD

we do it? We forget We get distracted

We don’t have the mental discipline tomake it automatic

90% of this skill is listening, whichrequires the discipline to concentrate.,·YH GHYHORSHG D VLPSOH H[HUFLVH WRtest my clients’ listening skills Closeyour eyes Count slowly to 50 with onesimple goal: Don’t let another thoughtintrude Concentrate on maintainingthe count Sounds simple, but morethan half of my clients can’t do it.Somewhere around 20 or 30, naggingthoughts invade their brain This maysound like a concentration test, but it’sUHDOO\ D OLVWHQLQJ H[HUFLVH $IWHU DOO LIyou can’t listen to yourself (someoneyou presumably like) as you count to

50, how will you ever be able to listen toanother person?

/LNH DQ\ H[HUFLVH WKLV GULOO H[SRVHV Dweakness and helps us get stronger

TEST YOUR NEW SKILL

2QFH \RX FDQ FRPSOHWH WKH H[HUFLVHwithout interruption, you’re readyIRU D WHVW GULYH 0DNH \RXU QH[Winterpersonal encounter – whetherit’s with your spouse or a colleague

RU D VWUDQJHU ² DQ H[HUFLVH LQ WUHDWLQJthem like a million bucks Listen.'RQ·W LQWHUUXSW 'RQ·W ÀQLVK WKH RWKHUperson’s sentences Don’t say, “I knewWKDWµ 'RQ·W HYHQ DJUHH ZLWK WKH RWKHUperson If he praises you, just say thank

\RX 'RQ·W XVH WKH ZRUGV ´QRµ ´EXWµDQG ´KRZHYHUµ 'RQ·W OHW \RXU H\HVwander elsewhere while the otherperson is talking Maintain your end ofthe dialogue by asking questions thatshow you’re paying attention, move theconversation forward, and require theperson to talk (while you listen).Your only aim is to let the otherperson feel that they are important

If you can do that, you’ll uncover

a JODULQJ SDUDGR[ 7KH PRUH \RXsubsume your desire to shine, themore you will shine in the otherperson’s eyes You may feel dull

as you listen quietly, but the otherSHUVRQ ZLOO VD\ ´:KDW D JUHDW JX\µjust as you would of anyone whomade you feel like the most importantperson in the room.EM

TWO ACCOMPLISHED LAWYERS

are sitting at an A-list bar in New

York One is my friend’s lawyer, Tom,

the other is Tom’s law partner, Kevin

They’re having a leisurely drink,

waiting for their table A-list superstar

US attorney David Boies, who argued

the US government’s case against

Microsoft, makes a beeline to the bar

to greet Kevin, whom he knows from

previous cases

Boies joins Tom and Kevin for a

drink A few minutes later, Kevin gets

up to make a phone call outside Boies

remains at the bar, talking to Tom

for 30 minutes “I’d never met Boies

EHIRUHµ 7RP VDLG WR PH ODWHU

“He didn’t have to talk to

me I wasn’t bowled over by his

intelligence, or his piercing questions,

or his anecdotes What impressed me

was that when he asked a question,

he waited for the answer He not

only listened, he made me feel like

, ZDV WKH RQO\ SHUVRQ LQ WKH URRPµ

Tom’s words describe a single skill

that separates the great from the near

great When Kevin disappeared, Boiesstuck around and made a lastingpositive impression on Tom Boieswasn’t looking to score points Inshowing interest, asking questions,and listening for the answers withoutdistraction, Boies was simplypractising the one skill that has madehim great at relating to people

LEARN TO LISTEN

I’m not sure why all of us don’tH[HFXWH WKLV LQWHUSHUVRQDO PDQRHXYUHall the time We’re certainly capable ofdoing so when it really matters to us

If we’re on a sales call with aprospect who could make or breakour year, we prepare by knowingsomething personal about theprospect We ask questions designed

to reveal his inclinations, and we scanKLV IDFH IRU FOXHV 7KH RQO\ GLͿHUHQFHbetween us and the super-successful

is that they do this all the time It’sDXWRPDWLF 7KHUH·V QR RQRͿ VZLWFKfor caring, empathy, and showingrespect It’s always on So why don’t

The skill that separates

Executive educator, coach and million-selling author of numerous books, including the New York Times bestsellers, MOJO and What Got You Here Won’t Get You There.

by MARSHALL GOLDSMITH MASTER CLASS

Practising the single most important skill that separates

the great from the near great.

IN THESPOTLIGHTAre you merelymediocre or abusiness leaderothers want toemulate?

a high-performance sales organisation, delivered by

a dynamic line-up of globally and locally renowned sales experts

Call +27 (0)11 886 6880 • www.thinksales.co.za

Sales Leadership Conference

2014

Become the business in you

Invest in Yourself, Invest in Your Business Success

PRINT SUBSCRIPTION

Subscription Plans

VALUE 0 PAY R344.64 SAVE 20%

SAVE R86.16

VALUE PAY R646.20 SAVE 25%

SAVE R215.40

VALUE PAY R904.68 SAVE 30%

With little effort, you cangenerate useful businesstravel claim reports, making

it easier to keep track ofmonthly travel expenses

Those with a travel allowancecan now provide an accurate,detailed and SARS-compliantlogbook at the end of eachmonth or financial year

Subscribe in June and stand a chance to Win 1 of 8 GPS Log Books worth R899 each!

Subscibe

and WIN

Subscibe

to Entrepreneur and WIN

of Douglas Kruger’s new book, Own your Industry Go to www entrepreneurmag co .za and click on

‘Competition’.

Just because you...

work every day with many of the

entrepreneurs that I work with

These killers are seldom obvious

and yet destroy the lives of solid

entrepreneurs, eroding the value

of... killers ofentrepreneurs and the businesses thatthey build

COMPLACENCY

When securing a great long-termcontract that spits cash into thebusiness every month manyentrepreneurs