Month: April 2013

Sanlam and Business Partners launch the anticipated Entrepreneur of the Year® competition in the Nelson Mandela Bay

Posted on by Webmaster

Budding entrepreneurs from around the Nelson Mandela Bay last week packed into the plush Radisson Blu hotel along the Port Elizabeth beachfront for the launch of the anticipated Sanlam / Business Partners Entrepreneur of the Year® (EOY) competition.

Announcing the call for entries for 2013 – the closing date is June 16 – head of national consulting services at Business Partners Limited, Lionel Billings said entrepreneurs needed to be optimistic about the future of the country.

“Small and medium businesses are the bedrock of every economy and every society,” said Billings.

Reiterating the importance of small and medium enterprises (SMEs) in the country, Billings said business and government needed to instil a sense of entrepreneurship in the country’s youth.

It is estimated that there are 1.5 million SMEs in South Africa, of which 1 million are formal micro-businesses employing 5 or less people, he said.

“Government and large businesses need to align their goals to incorporate SMEs,” he said.

The guest speaker was former EOY winner and emerging Eastern Cape powerhouse in business, Mzukisi Stephen Dondolo, chief executive officer of investment firm African Pioneer Ltd. The firm has shareholdng in Coca Cola Fortune, Cerebos and The Boardwalk Casino and Entertainment Complex in Port Elizabeth.

Speaking about the need for entrepreneurs to band together and to lobby the government to better enable the environment for SMEs, Dondolo said: “It is an honour to come and talk at this function, because both Business Partners and Sanlam have contributed to growing small businesses in the country.

“We were once a recipient of this competition and it brings along a lot of recognition and a lot of joy. It was wonderful recognition to have.

“When I started out in the 1980s, I was the first black person in Uitenhage township to receive funding from Business Partners towards growing my business.”

Dondolo said he used his start-up funding to grow a bottle store franchise and then in the 1990s, tired of retail, he decided to enter the unchartered waters of the fishing industry.

“As a black man I had no idea about the fishing industry or how fish ended up on my table,” he joked. Yet Sanlam saw his business potential and invested in his company, he added.

“Sanlam took shares in my business and invested in me. If it wasn’t for that, I wouldn’t have been able to start up that business,” he said.

“Building a business starts with entrepreneurs. The government has created a platform for black businessmen to be able to enter the economy.

“Although on the one hand that has created ‘tenderpreneurs’, on the other hand there are hardworking entrepreneurs who take their hard earned money and reinvest it in the community.”

Dondolo said entrepreneurs were “engines of wealth creation and a creator of sustainable jobs”.He also spoke out against widespread corruption.

“The corruption creates an environment where someone will have to increase the price of a service to pay for corrupt tenders. It benefits ‘tenderpreneurs’ who will not invest back in the economy and allow the economy to grow.

“Corruption has also increased the cost of doing business, which prohibits entrepreneurs entering the market, and in the end the pool oftaxpayers remains smaller or even shrinks further while government expenditure continues to grow, leading to taxpayers being squeezed even more. It becomes a vicious circle which has a very negative effect on the economy and benefits only a very few.”

To counter corruption and to bolster the working environment for SMEs, Dondolo said entrepreneurs needed to band together and lobby the government to pay more attention to the need for SMEs in South Africa, to address the high level of unemployment.

“Entrepreneurs must think positively. Let’s look at our province and look for business opportunities. Together we can conquer unemployment. If we can arrest unemployment and change that into employment opportunities, that money will circulate and create wealth in the community,” he said.

“Together we can lobby all the spheres of government to improve their service delivery.”

Mutual benefits for businesses adopting green alternatives

Posted on by Webmaster

warren

Due to the growing pressures of climate change on a global scale, consumers are increasingly becoming more knowledgeable about their impact on the environment, due to initiatives such as Earth Day, celebrated worldwide annually on the 22 April. This has also led to an increase in the demand for businesses that supply environmentally-friendly products and services.

This is according to Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year® competition, who says that there has been a gradual growth in the number of South Africa entrepreneurs creating eco-friendly service-focused businesses.

“This trend could mainly be ascribed to consumer demand, especially the more sophisticated and demanding consumer, and the entrepreneurial trait of always looking out for new opportunities of carving out a niche market for him or herself and be the “first mover” when it comes to new product lines and/or alternatives.”

A recent BBMG Conscious Consumer Report revealed that nearly nine in 10 Americans say the words “conscious consumer” describe them well and that 87% of respondents are more likely to buy from companies that are committed to environmentally-friendly practices.

Botes says that this change in consumer behavior is also gaining momentum in South Africa and provides a gap in the market for local entrepreneurs and small and medium enterprises (SMEs) to not only make a difference in the environment in which they operate, but to also ensure they remain competitive and current. “Many consumers are looking for ways to minimise their impact on the environment and as a result, ‘going green’ is increasingly being regarded as an attractive business strategy.”

One such entrepreneur who noticed this gap is Warren Graver, founder and director of Envirodeck, who saw an opportunity to providing an alternative to timber in the decking sector.

Graver says that the growth of green products in this industry has been phenomenal, not only in international markets, but also increasingly in South Africa. “Nowadays there are opportunities for business owners to capitalise on in terms of implementing more sustainable products and practices for their customers.

“Business owners need to continually look at sustainable products and practices to remain competitive. For example, in the market that I operate in, there is a huge drive coming from architects and designers who are designing full green projects in line with international trends, and those companies who have not recognised the trend of sustainable practices are frequently losing market share to innovative green product offerings.”

Graver says that the concept of green decking versus traditional timber was an easy business decision for him but that the company initially felt resistance from the industry who were reluctant to change practices due to a lack of awareness around the benefits of such green alternatives.

“Through intense research and product sourcing, it revealed how timber is fast becoming unsustainable, unmaintainable and ultimately expensive due to unjustifiable costs to maintain. But although I noticed a considerable gap in the market for a smarter option, it proved extremely tough to penetrate a market when no one had ever seen or heard of such innovative products.”

He adds that while eco-friendly products have now become the buzzword amongst South Africans and that the demand for green alternatives is increasing due to consumer awareness, business owners must still be mindful to the fact that the market might be hesitant to initially switch from their original purchase.

“It is imperative that green alternatives introduced remain competitive against the traditional markets. While customers want to be more environmentally friendly, the industry is still price sensitive compared to the traditional industry and a consumer will likely only select a green product if it provides a cost saving to the consumer.

“Our products, for example, are not only manufactured with recycled material, thereby providing sustainable benefits to climate change, but they also don’t have to be maintained which provides a cost saving throughout the lifecycle of the product.”

Botes says that while the trend of living a more eco-friendly existence is on the increase, it is still crucial for businesses to do sufficient research when entering a new market. “While entrepreneurs usually identify a problem or gap in the market where they are able to offer an alternate solution, it is crucial to ensure that this solution is integrated into a business plan that promotes the concept effectively and efficiently to the correct market.”

Why EOY is valuable to the entrepreneurial community

Posted on by Webmaster

Magriet-web

2013 competition entrant, Magriet Smit, shares some information with us about her business and why she decided to enter the competition.

Briefly describe your business and the industry you operate in?

Word4Word is a company that provides educational tutoring to school children and underprivileged children. Word4Word has two sub divisions:

  1. Word4Word Reading Therapy  Word4Word reading therapists are trained and equipped with our special Word4Word recipe: play therapy techniques combined with visual therapy techniques, perceptual techniques and a lot of love.
  2. Word4Word Projects – Word4Word tutors are trained and equipped with the Word4Word Reading Programme to assist children at projects like soup kitchens, safe houses and children’s homes.

Where did the business concept originate from and when did you start your business?

While working in my ex-husband’s optometry practice, I noticed that a lot of children experienced difficulty while learning to read. I was under the impression that there might be something wrong with their eyesight, but after a while, I realised that most were struggling with reading skills.

I started providing unique reading lessons at the optometry practise and realised that the children enjoyed this method thoroughly. I decided to start developing this reading programme in more detail after giving birth to my son as I had more time on my hands as a housewife.

Soon after I decided to launch the programme and started to teach other women how to work with the programme.

We now have functioning projects in the Western-Cape, Gauteng and Namibia.

Briefly describe some of the challenges that you have experienced as an entrepreneur?

In the beginning phases of the business, while I was still writing the programme, I experienced a lot of negativity from various parties, all telling me that the concept would not be a success. It was challenging at the time to fight all of this negativity.

Also, as a mother of a son in Grade One, who is just starting to read himself, I sometimes found it challenging to balance personal and work life.

Finally, starting a business, with no external funding, was very challenging and definitely not as comfortable as working for a salary.

Why did you decide to enter the Sanlam / Business Partners Entrepreneur of the Year® competition?

As part of my role in the business, I have to spend a lot of time tutoring ‘off-site’ at locations such as safe houses, farm projects, and Aids orphanages. During this time, I also realised the demand and potential for the programme, which requires additional funding. So if we should win the prize money, the plan is to expand and focus on educating more children in South Africa and Namibia.

Why would you recommend that fellow entrepreneurs get involved with initiatives such as the Sanlam / Business Partners Entrepreneur of the Year®?

Being an entrepreneur is similar to living the biggest adventure ever. This adventure is however a combination of the fear, adrenaline and long lonely hours full of big decisions that will impact not only your life, but those close to you.

It truly is inspiring to know that there are companies like Sanlam and Business Partners that are not only passionate about my company, but about me as an entrepreneur too.

By getting involved in these initiatives, we learn that we are not alone out there. The more of us who get involved, the stronger our entrepreneurial voice is.

Protect your business; cover your assets

Posted on by Webmaster

Any business operation is vulnerable when faced by unplanned crises. The crippling and unexpected costs associated with these risks are often compounded by failure to protect the business adequately through appropriate short-term insurance.

Although the greatest losses are usually experienced when a business is not insured; under-insuring your business can prove to be just as detrimental.

Underinsurance is one of the most worrying challenges facing South African businesses. Generally, business owners often fall into a trap of underinsurance because they do not fully grasp the repercussions or do not have the time or expertise to navigate the wide spectrum of insurance products available. So how can you insure that you avoid the pitfalls?

  • Choose the right insurance partner: Choose an insurer that has a good claims payout reputation and is financially secure enough to cover your risk.
  • Identify all potential risks to your business, these could include:
    • Natural perils (wind, storm, hail, lightning, flooding, etc.)
    • Crime related perils (burglary, armed robberies, theft of vehicles/hijacking, etc.)
    • Accidental damage (motor accidents, damage to computers, etc.)
    • Legal liabilities (due to products being sold/repaired, motor accidents where the insured/driver is negligent, etc.)
  • Evaluate these risks in terms of the likelihood of them happening and the potential size of the loss, for example:
    • The likelihood of having a motor accident is high and the size of the loss would be medium to large (a vehicle being written off as well as damage to a third party’s vehicle/property)
    • The likelihood of a fire at the premises is low, but the size of the loss would normally be high to extremely high.
  • Consider your location and associated risks: Some commercial areas are more risky than others. If your business is located below the flood plain on the banks of a river, there is a high probability that you will suffer loss, and you need to make sure that you have sufficient cover to manage this risk. The same goes for areas that suffer higher levels of crime. If you don’t have a choice but to be at a specific location, you can still reduce your risk by implementing changes to protect yourself and your livelihood, including the addition of burglar bars or alarms if you’re in a high-crime area.
  • Proactive risk management. Using the information above, a business owner should decide whether some of the risks can be eliminated or reduced.
    • Installing an alarm and burglar bars reduces the likelihood and impact of potential burglaries.
    • Arranging with suppliers to deliver stock instead of collecting your own eliminates the risk of loss or damage to goods while in transit.
    • Prevent physical hazards that could lead to claims. Have your geyser, wiring and fire protection gear checked for leaks or damage on a regular basis, either by someone in the office or by a professional.
  • Finance the residual risks (i.e. the risks that can’t be reduced to an acceptable level). The most common method of financing the residual risk is through dependable insurance, this would also be the most viable option for the small business owner.
  • Insure your business for the appropriate amount: Many business owners are unaware whether they are over or under-insured. If you under-insure your business or assets, there is a chance that the payout you receive when claiming is lower. Ask your broker to help you assess your risks.
  • Take advantage of the benefits derived from successful risk management: Insurance companies are more likely to reward customers that take risk management seriously. People and companies that are serious about managing their risk take stock of their assets, measure the potential risk and insure them for an appropriate amount. Being under-insured can also lead to lower insurance payouts when claiming. From time-to-time, savvy risk managers also check equipment like geysers, fire equipment and so forth for damage or faults that can lead to more severe damage.
  • Ask for advice and communicate changes: If you’re not sure what to insure, ask your broker for advice on risk management. He or she will be able to advise you appropriately and save you valuable time to concentrate on building your business. If you make any changes to your business, including the installation of walls or fences, additional buildings, add another vehicle, and so forth, communicate these to your broker as soon as they happen.

Contact your broker for more information or call Santam on 0860 444 444

Information provided by Santam

Entrepreneurs: the unsung heroes of the business world

Posted on by Webmaster

Government has not yet been able to help solve the unemployment crisis in South Africa, which leaves the responsibility with the business and private sector to do the job. This was the message delivered at the recent Sanlam / Business Partners Entrepreneur of the Year® workshop by Dennis Collins, a South African entrepreneur and business man.

According to Collins, the private sector of South Africa has been laden with responsibility to help solve the unemployment crisis in the country.

“We entrepreneurs are the unsung heroes of the business world. Entrepreneurs are the individuals who, starting with ideas, create employment, earn money, pay taxes, and up skill staff who earn salaries and pay their own taxes. We are the individuals who grow the economy.

“I remind you that never before in the history of this wonderful country has there been a greater need for the emergence of such people. I therefore applaud entrepreneurs because they will make the difference.”

He says that there are certain principles that entrepreneurs should follow to assist them in their quest for success:

Drive and ambition:

Hard work is key to success – you don’t just arrive! Your ship won’t come in if you have never sent one out. Entrepreneurs are in charge of their own destiny

Conviction:

Entrepreneurs need conviction that what they are doing will work, and be prepared for the “downs” because they do come.

Strong will to win:

Never give up – stay focused – don’t be diverted from your dream.

Respond to failure with attitude with optimism:

Attitude is very important for entrepreneurs as they have to be able to respond to failure with optimism. Failure is no less than lessons learned because the man who never made a mistake, never made anything.

Be confident in your own ability:

Always be confident in your own ability. In order to be confident one needs to be an expert in the industry that you operate in – never be scared to study and learn more about your area of expertise.

Set measurable goals:

Success is the result of setting goals in every area of life. An entrepreneur’s desperation quotient will determine how far you go when the going gets tough. Your final destination must be clear, measurable and specific in time, quality and values.

Advisors and friends:

Entrepreneurs need to select good friends and business networks to assist them with the strengths that they may not have.

Collins says that entrepreneurs need to dream, live, eat, talk and consume that which is within them. They then need to break out of the dream cocoon and spring into action. “Never be afraid to make decisions. As long as you are right 51% of the time, you will be on the winning side, and the sheer momentum of that will pull you through.”