Taking the plunge
Young entrepreneur meets business world head on

Samora Sipatala knew that his future lay in the entrepreneurial realm.

But, as with so many South Africans, he did not know how to make this dream a reality.

With a family to support, Sipatala tried to get a business off the ground while working full time but the day came when he had to take the plunge.

Seize the opportunity

Sipatala worked as a sales person at a variety of event management and corporate training companies.

He knew however that he could create a successful business offering the same service and when his last employer started retrenching, he seized the opportunity.

With his last pay cheque of R18 000, Sipatala went out on his own and a year later, Mawawa Corporate Training is starting to fulfil its potential.

"I just needed something more challenging," he explains. "This business is about picking up the phone, pitching and convincing people to make use of your services."

Fickle finance

This is not Sipatala's first attempt to start and business and a few years ago he tried to set up a similar operation with two colleagues.

They needed R100 000 but doors were slammed in their faces left, right and centre.

"The IDC told us that they did not fund the industry we wanted to operate in. Also, their minimum funding amount was much higher than what we were asking for.

"Umsobomvu never got back to us and it was the same with GEP (Gauteng Enterprise Propeller). At Khula, we did not comply with their requirements and the bank wanted us to bring in another partner."

When the retrenchments came along, Sipatala's colleagues were not willing to take the plunge and he decided to carry on regardless. So, with his wife Precious at his side, he set to work.

Getting the basics right

The problem however, was that Sipatala did not quite realise the extent of the project he had taken on. School fees had to be paid and while some aspects merely required time, others cost money.

"It was tough in the beginning - my strength lied in pitching and selling something that someone else had put together.

"I decided to approach people that I knew in the industry and asked them how the operational side of the industry works."

Nevertheless, it took him a while to find his feet and to learn how to deal with the red tape involved in the SME sector in South Africa.

At the same time, he had to learn how to perform certain business basics despite not having any previous experience.

"When I did my first deal I had to generate an invoice - it took me two days. I guess I could have paid someone else to do it but there simply wasn't any money."

Similar lessons had to be learnt with VAT registration or creating contracts with clients and training facilitators.

He explains that for someone who has never had any business training, or who has never been exposed to the small business world, it is difficult to imagine the obstacles that will come up. As a result, you simply face them on a case by case basis and hope for the best.

Sipatala says that while it was tough he knew that the business had potential as he wanted to focus on smaller centres around the country where the bigger players did not operate.

"I realised that it was not easy for everyone to come to Johannesburg to attend a workshop or training session. My approach was to take my services to the client. It is too difficult for us to compete in Gauteng so we rather go to East London, Port Elizabeth or Pietrmaritzburg."

School fees

Sipatala also had to learn how to package his products and when to present them, as he initially wanted to focus on government departments and local municipalities.

His first event however took almost four months to come to fruition as he did not calculate the effects of the state's financial year end into his planning. While this training session went off well, it again took longer than expected to get the next one up and running.

"I started to panic and to doubt the business model. I went looking for the problem because I knew I was good at pitching. In the end the problem was targeting administrators such as secretaries and personal assistants directly. This is because they still need to get authorisation from their boss and even if the money is available, timing could be an issue.

"I then came up with a programme on financial modelling which targeted senior managers," Sipatala explains.

The product diversification continues and he now offers a number of different courses throughout South Africa and in neighbouring countries. At the same time the business is growing and Sipatala believes that it is on the path to becoming a sustainable operation.

"I am optimistic about the potential the business has. But, it is not just about the money - I want to achieve something in life.

"When, in five years' time, we have 100 employees I will be smiling because I will be contributing to my country through job creation.

"But, I do want to be a millionaire," he adds with a smile.