Innovator leads local retailers’ embrace of ecommerce

Wynand Geldenhuys was still at school when he sold his first computer programme. It was to the owner of a cell phone shop who wanted a computer-based repairs booking system, and Wynand, who fell in love with computer coding at 16, had no problem writing the programme.  

At that stage he had no idea that his passion would lead him to become the owner of Africa’s biggest independent ecommerce software development company, Vectra, and earn him the Innovator of the Year Award at the 2019 Business Partners Ltd Entrepreneur of the Year®competition.

But perhaps these achievements would not have surprised the young Wynand either. “I was always entrepreneurial. A pal and I were always busy with some scheme or other to make money,” he says. 

Today the 33-year-old employs a team of more than 50, of which more than 40 are coders and software engineers. His Pretoria-based company, which he started a mere four years ago, is doing groundbreaking work in the custom building of ecommerce systems for South African corporates and increasingly those from the rest of the continent. 

“When you say ecommerce, people think that it’s all about websites, but that is just the front of a whole logistical system that kicks in when an order is placed online,” says Wynand. Using open-source platforms such as Magento, Vectra specialises in the whole range of software necessary to integrate a company’s ecommerce website seamlessly with its enterprise management systems.

Innovations achieved so far by Vectra include a system called SmartSales which integrates a customer relationship management system with an ecommerce website, and a point-of-sale system that does away with traditional tills, allowing a shopfloor salesperson to order for, advise and conclude a sale with a customer on a hand-held device.  

Vectra’s explosive growth over the past four years follows a decade in which Wynand slogged as an employee in various roles, quietly building a deep network in the software industry and the corporate clients whom they served, and also a sturdy reputation as an innovator. 

His career started with a major disadvantage when his father died during his matric year, and the family resources had to go towards urgent surgery for his mother and the raising of his two sisters. There was simply no money for studies, and Wynand started working as a coder for a web hosting company straight after matric. Looking back on it, Wynand says not having the luxury of a few years of study was probably good for his career development. “It pressured me to be independent, to take control of things and to find solutions on my own.”

Wynand was constantly trying out new ideas and coding on the side. He even signed up a new client with a point-of-sale system he had designed, but when his employer rejected it as too non-core for their web-hosting business, he decided to leave. The shares that he was given in the company turned out to be fake, and he left with no financial reserves. But he did gain valuable experience, not only in coding, but also in working with people and clients. 

His next move was to partner with a company to develop and sell his point-of-sale software, but the partnership did not work out, and Wynand, already known as a livewire in the industry, was recruited to work for the software giant SAP. There he cemented his reputation as an innovator by heading up their Innovation Lab where he got to experiment with all sorts of new ideas. 

It was a great job and he did well at the company, says Wynand, but the corporate world was not for him. There are too many conflicting personal agendas and, ultimately, you have to work on other people’s ideas, whether you like it or not. 

In 2017 he was contacted by an old client who wanted to appoint him as a software developer, but instead Wynand negotiated a two-year contract with him that would serve as the basis for building his own business. At last Wynand had free reign to implement his ideas and put his pent-up energy to use without having to cater for a boss or a partner, and Vectra grew phenomenally. 

Wynand says the most difficult part of starting Vectra was a dilemma faced by many under-resourced start-ups: in order to win over clients, you must show substantial capabilities first in the form of products, infrastructure and team. To set this up, Wynand had to scrape together every resource he had in the early months without any guaranteed return. 

An easier way around the dilemma would have been to find an investor or a partner, but he was mindful of his previous bad experiences with partners and decided to stick it out on his own. 

It paid off well. Apart from Vectra’s extraordinary growth, Wynand was named the 2019 Innovator of the Year. “I never had to opportunity to study for a degree, and the award felt to me like a graduation of sorts,” he says. With its substantial track record in both retail software and ecommerce systems, Vectra is very well placed to continue its fast-paced growth. Compared to other regions of the world, African retailers, including those from South Africa, were until recently still largely wedded to bricks-and-mortar business. With the shock of Covid-19, and with the unstoppable march of technology, the demand for a local innovator to help them transition to ecommerce will remain high for many years to come.

Five questions to consider before going into business with family or friends

Almost every aspiring entrepreneur gets their chance to weigh up whether it is a good idea to have a close friend or family member as a business partner. The answer is not always simple and almost always varies from scenario to scenario, and person to person. There is certainly a reason why the adage, “never do business with family and friends,” is an expression rather than a concrete rule.

As a starting point, when faced with this kind of decision, ask yourselves the following salient questions:

  1. Are we in it for the same reasons?

The most successful and efficient business partners share a vision and are clear about their goals from the onset. Is the collective ambition to employ a growth strategy that will boost the business’s bottom line? Is it a 10-year plan to build a business worth selling? Or is the strategy to build a legacy? All parties need to be aligned upfront to ensure a fruitful partnership. Singleness of purpose is essential to making joint decisions that will have everyone involved walking away feeling confident. 

  • What will happen when partners don’t agree?

As a business partner of a close friend or family member, you may have conflicting interests, which can lead to complications. The challenge centres around when to “wear the hat of a professional business partner,” and when to “wear the hat of someone who is emotionally invested in the other party.” It is a delicate balance to maintain and disagreements are an inevitability. However, to avoid conflict becoming crisis, you need to agree on a way to resolve matters before you even enter into the partnership.

3. Do the business partners share the same risk profile?

Some of the most pivotal business decisions rest on whether the deciding party is risk-taking or risk averse. It is not always necessary for both parties to share the same risk profile per se, but it is necessary to be able to meet somewhere in the middle. Compromising and calling on each party’s instinctive attitude towards risk is vital when it comes to making decisions like launching new products, taking on a strategic partner or restructuring the business.

4. What will each partner’s role be?

In a partnership that transcends the lines between professionals, it may be difficult to define clear-cut roles and responsibilities. However, professional boundaries are the key to healthy working relationships, and that begins with defining each other’s strengths, capacities, and work ethic. Being able to have an open conversation about what each role or position entails, can be the beginning of building trust and mutual respect. 

5. How will we keep personal and professional lives separate?

In a relationship that entails both a personal and a professional component, the lines between the two can become blurry. However, with transparency and an openness to debate and discuss, healthy “ground rules” can be set. Maintaining a work-life balance is a challenge for business owners across the spectrum. For those in business with family and friends, the challenge takes on its own nuances. On the one hand, the shared, personal relationship may make communication easier. On the other hand, the opposite could be true.

There is simply no blanket answer to whether going into business with friends or family members is a good idea. Different people respond in different ways to the complexities of relationships. However, pausing to ask the tough questions from the beginning, may help avoid future pitfalls.