The ten rules that entrepreneurs live by

The life of an entrepreneur is different from that of ordinary people in many ways, and one of the main ways in which it differs is that it is more challenging. This is mainly because the entrepreneur sees the world not as it is, but as it can be, and then sets about changing it, says David Morobe, BUSINESS/PARTNERS regional general manager.

How do entrepreneurs manage to thrive even while taking such a difficult approach to the world? Morobe believes that the answer lies in their disciplined attitude which, although it varies in emphasis from entrepreneur to entrepreneur, can generally be described in the following ten rules that they live by:

1. Believe in yourself

Entrepreneurs tend to maintain a strong belief in their ability to achieve their goals, upon which they remain focused. They get out of bed in the mornings believing that they have something meaningful to do and a legacy to leave behind. It is a powerful drive that helps to keep them going even when times are tough.

2. Never stop investing in yourself

Some entrepreneurs are famous for flunking out of school when they get busy with their businesses, but these stories should not give anyone the idea that entrepreneurs are not interested in learning. On the contrary, they are voracious learners, whether by reading, taking courses, listening to coaches, mentors and the experts around them. However unstructured it is, the aim is continual self-improvement and strengthening of their businesses.

3. Pursue your passion relentlessly

The most successful entrepreneurs are those who do what they love to do. It allows for great resilience and staying power. “Even when you are weary and disappointed you keep on at it,” says Morobe. Running a business means having to do lots of things that you may not necessarily like, and that is where the next point comes in.

4. Surround yourself with the right people

Although entrepreneurship is a do-it-yourself project in a certain sense, it is simply too difficult an undertaking to do on your own. That is why one of the most important rules of entrepreneurship is to find the right people, convince them to join your enterprise, and forging them into a team to which you can delegate. They should be chosen for skills that complement yours, and for their values which should align with yours.

5. Grow your network

Just like entrepreneurs continuously build their teams inside their business, they grow their network of investors, advisors, suppliers, associates and customers outside of it.

6. Promote yourself and your business

Entrepreneurs don’t pass up opportunities to promote themselves, their vision and their enterprise, irrespective of whether it is in their business interactions or at social occasions. It need not be tiresome or false. If it is done with sincerity and respect, it can be engaging and inspiring, and can win over not only customers, but also potential investors, employees, partners and suppliers.

7. Learn how to manage risk

For entrepreneurs, risk comes with the territory. They simply cannot avoid it altogether. The rule, however, is to manage risk – to mitigate it where they can and to constantly hedge against it. For example, the greatest risk facing most growing businesses is death by cash-flow crisis. Entrepreneurs who survive are those who remain acutely aware of their cash-flow situation so that they can see the crunch coming. A good example of hedging against risk is where an enterprise cultivates several smaller customers despite the fact that it has one dominant client. When that client goes down, they have others to pull them through.

8. Work hard

In entrepreneurship there are no short cuts or half-measures. Once you start, says Morobe, you have to be all in, even if it means putting in twelve-hour days for many years.

9. Stay innovative

One innovative idea is seldom enough to carry a business for longer than a couple of years. The most resilient businesses are those that adopt innovation as a broad approach to whatever they do, especially when it comes to taking feedback from their customers seriously and trying to incorporate it into their products and services. It is not always comfortable, because the disruption caused by innovation prevents any settling down into cosy routines. It also requires a certain tolerance to making mistakes.

10. Take care of yourself

Entrepreneurship is a marathon, not a sprint. Staying the course means pacing yourself, striking the right balance between exertion and rest, and being aware of the warning signals that your body sends you from time to time. Successful businesses are built on the foundations of healthy bodies and minds.

Client knowledge can improve sales

What was first – the chicken or the egg? In some way we are faced by the same challenge in business. Should you endeavour to develop a new product or service before finding a market for it, or first choose a target market and then align your products and/or services to meet the needs of the identified market?

The identification of a niche market for your product and/or service helps you to see the trees (your niche market) from the wood (spectrum of all consumers). Some of the benefits of this approach are that your marketing and sales endeavours will be more profitable, because you have a better understanding of the needs of your niche market, making it possible to customise your offering to be an exact match for their needs. You can then position your business as an expert in your industry.

You can use the data of your current clients to get a better understanding of your niche market profile. The following elements may be used to develop a profile of your ideal client:

  • Income category
  • Age
  • Gender
  • Interests
  • Hobbies
  • Occupation
  • Geographical location

To know your clients, you have to spend time with them – thus creating opportunities for engagement. To add value for clients is a sure way to vest a positive affinity towards your business and brand. You can use articles to illustrate your knowledge of the industry you operate in. These articles can also be used to teach clients to use the product, or to apply the service to their best advantage, but also to introduce more products or services to them. Make a point of also notifying your existing clients of special offers. It is also good business practice to get feedback from your existing clients about your product and/or service set and service experience. Use this feedback to improve your product/service offering and service delivery. By staying in the forefront with your clients, you in effect keep the “marketing noise” of your competitors outside the hearing range of your clients.

“I don’t care how much power, brilliance or energy you have, if you don’t harness it and focus it on a specific target, and hold it there, you’re never going to accomplish as much as your ability warrants.” — Zig Ziglar was an American author, salesman, and motivational speaker.

To support business owners with the important task of business planning, Sanlam gives you free access to the book Your Annual Business Game Plan for Success, which provides an easy and straightforward framework needed to draft a well-crafted game plan that will create the positive change and growth necessary for business success. Go to www.sanlam.co.za/gameplan to download your free copy.

Entrepreneurial innovation is key to improving the local education sector

The South African education sector has been thrust into the spotlight again recently, eliciting many questions, debates and varying opinions about potential solutions to an ongoing challange. Amid all the negativity currently being reported on, 2016 Innovator of the Year® award winners, Ryan Harrison and Stacey Brewer of SPARK Schools, remain inspired as ever to use the opportunities presenting themselves within the sector.

It has been reported that South Africa has one of the highest rates of public investment in education in the world. Accounting for around 7% of gross domestic product (GDP) and 20% of total state expenditure, the government spends more on education than on any other sector. Yet, Ryan, says that this is currently not translating to tangible results.  

Ryan and his co-founder Stacey, started the SPARK Schools network in response to the growing opportunities that became available to fix a struggling education system through creativity and innovation.

SPARK Schools is a network of primary schools dedicated to delivering accessible, high quality education by using a blended learning programme, which combines traditional classroom teaching and online learning, to individualise education for all students. The SPARK Schools model is the first of its kind for primary school students in Africa and the software SPARK School scholars use is adaptive, allowing for highly individualised student practice and assessment.

“The primary education division is one of the hardest areas to innovate because young children need much more stability and hands-on guidance to aid their development, whereas in senior levels, children are able to self-study, which allows for more creativity in the tools they are exposed to within the classroom,” says Ryan. “At SPARK Schools, we’ve only just begun to shake things up in the way our education model works, but there is a need for an overhaul and renewed creativity, in order to work towards a system that benefits all our learners – countrywide.”

As state schools currently have the monopoly within the education system, more competition is needed to drive change, says Ryan. He stresses the need for more entrepreneurs to get involved in this vital sector of the South African economy. “It’s not all about making money – sometimes we have to forgo the easy sell to make a quick buck initatives, and instead get really innovative for the sake of our, and our children’s, future.”

He explains that if parents were presented with more options to choose affordable, private education, as opposed to state school facilities, the sector would benefit overall. “As in any industry where a monopoly is present, we tend to accept mediocrity for lack of other options available. But the minute there is new competition in the industry, we as consumers are able to choose options that suit us better, according to our own personal preferences. Competition also forces businesses – and in this case, schools – to aim higher and perform better.”

Part of the innovation within SPARK Schools is the emphasis placed on teachers. The school prides itself in the amount of effort that goes into their recruitment process for teachers. “Teachers find themselves under a lot of scrutiny, and part of this is owing to the often inadequate training that they receive, which often does not sufficiently prepare them for the classroom,” says Ryan.

SPARK Schools has implemented a number of innovative activities for teachers at their school. These include a training programme to accustom new teachers to the SPARK Schools education model, and on-going professional development which includes weekly 4-hour skills-training sessions customised to a teacher’s particular needs, internal coaching to mentor and assess teachers in their classroom on a weekly basis, as well as ad hoc leadership training programmes outside of the classroom to assist teachers to grow into a principal role.

Overall, these positive, go-getter entrepreneurs have realised that when working in the education space, quality takes priority over everything else. “We want to instil a culture of innovation within our schools and this means that everyone employed here has to fit into our culture and mission. We work towards one common goal, which is to provide high quality private education at affordable rates,” says Ryan.

“We have many dreams and goals for the SPARK Schools network. Ultimately, we want to take our schools abroad. But for now, our core focus is on South Africa, and increasing SPARK Schools’ current network of 11 to 20 schools across the country. With a larger share of the education sector pie, we hope to inspire the sector to make a real difference in the quality of education that is provided to South Africa’s children and families.”

Financial advice from entrepreneurs for entrepreneurs

The 2016 Entrepreneur of the Year® winners share the best financial advice they have ever received.

Given the current challenging economic climate with South Africa’s GDP growth expected to remain flat at 0.1% for the year according to the International Monetary Fund (IMF), it is becoming increasingly difficult for entrepreneurs to ensure the financial sustainability of their businesses.

As there are many factors which contribute to the effective management of cash flow within a business, we asked some of the winners of the 2016 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS to provide us with the best financial advice that they have been given while growing their businesses.

“Remember that your business is a long-term investment.” Says Johan Eksteen of Agricon, 2016 Entrepreneur of the Year® winner. “Always look at the bigger picture and be aware of how any decision can impact the future. When it comes to short-term solutions, you can’t ‘buy yourself rich’, so rather focus on selling your product or service as this is a sure-fire way to generate a healthy cash flow.”

In the same breath, Meisie Nkosi of Bella Bonni Guest House and 2016 Small Business Entrepreneur of the Year® winner goes on to say that finance is the heartbeat of a business. “Keeping an eye on daily expenditure and auditing these periodically will help you manage day-to-day finances. In order to maintain a healthy profit margin, make sure you price your product or service correctly,” she adds.

“Also make sure you find the right investor,” points out Carl Pretorius of Just Trees and 2016 Medium Business Entrepreneur of the Year® winner, who says that it is important to ensure that whoever invests in your business shares your vision and expectations. “I would also advise finding an investor that is patient as things don’t always go exactly according to plan and they may need to wait for the return,” he explains.

Michael Roberts of Khonology, 2016 Job Creator of the Year winner says that when building a business, you should manage your cash flow as if your life depends on it, because your business does. “My mantra is ‘Revenue is vanity, profit sanity, and cash is reality’,’” he continues.

Vanessa Jacobs of Sow Delicious and 2016 Emerging Entrepreneur of the Year® winner shares the same sentiment as Michael and recommends running a business on a “cash” basis. “I try to use cash when it comes to making and receiving payments as I find this helps to monitor cash flow and make better decisions for my business while ensuring steady growth,” she concludes.