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| Bessie Mogale, shop owner |
According to SpazaNews, there are an estimated 40 000 spaza shops in Gauteng alone – 100 000 across South Africa – contributing a turnover of R7-billion a year. Each spaza employs two to three people, each supporting a family of four.
Have you always been entrepreneurial?
I have always
been an entrepreneur – it all started with a bag of oranges. I sold each orange
at a profit and when my mom found out she told me to use the money to replace
the bag. I then used the change to buy sweets to sell to all my school friends,
much to her dismay. It was then that she told me that I took after my
grandmother who had owned a butchery, a grocery store and other shops.
What were you doing before starting your business?
Before the tuck
shop, I was unemployed and when my husband left for Botswana I had to raise
three boys by myself. As an unemployed mother, this was going to be quite a
challenge. Opening the tuck shop was the only way I could make sure that we had
food on the table and that the boys received a good education.
What kind of planning went into starting the venture?
In my case it
was all about having the passion and determination to create a sustainable
business. I didn’t have a business plan, instead I used the knowledge and
skills I picked up over the years. However, after attending Coca-Cola's "Women Empowerment" training course, I realised how important it is to have the correct skills and
structures to run a successful business. Without these, your business has a
higher risk of failing along the way.
What was your start up capital and where did you work from?
I started my
little tuck shop in a one-roomed shack, with enough money to buy one crate of
cold drink, a few bags of maize meal, sugar and tea. It was a trying time, but
I was determined to do better and make my venture a success. I knew that I
needed more skills and capital to grow the business, so when the opportunity to
gain such knowledge presented itself through Coca-Cola South Africa’s "Women Empowerment" training
course, I did not hesitate to attend. Not only did I gain financial and human
resources, as well as business management skills from the training course, but
I also received R3 000 start-up capital and a container to use as my tuck shop.
What’s your big dream for this venture?
At the moment, I
run one tuck shop, which I would like to see grow into a supermarket to franchise
across the country.
How does a new entrepreneur find business leads and profit from
them?
It is all about
research. You need to read and engage with people in order to understand the
market.
How does a new entrepreneur figure out what makes them unique and leverage
that difference?
Again it’s all
about research and more research. Through research you can find out what makes you
different and then develop that differential advantage to better your business
venture.
How does a new entrepreneur figure out what to charge for their
service/product?
Talking from
personal experience, I would say conducting ongoing market research is the best
way to find out what to change for your service offering. When I started my
tuck shop, I asked my customers what new products they would like to see in the
shop, which I then went ahead and purchased.
What was your most epic fail in the early days?
When I started
my tuck shop I employed an additional worker. We worked well for some time
until it came to my attention that he was stealing from the tuck shop. The only
way I could solve the problem was to let him go.
What are the two biggest/most common mistakes that new entrepreneurs
make?
Firstly, being
product-driven instead of focusing on the customer. Upcoming entrepreneurs need
to keep in mind that in order to succeed they need to provide a need/want to
their customers, and no matter how brilliant your offering is, if it does not
satisfy a customer’s needs it will not be bought. Secondly, new entrepreneurs tend to spend more money than they will make, which
may lead to early financial problems.
How do you keep yourself motivated?
I was raised by
independent businesswomen; my mom and grandma. Watching them work hard and
strive for the growth of their businesses remains an inspiration and motivation
for me in my quest to grow my business.
Did you have a mentor?
I did not have
a mentor, but I did look up to my grandmother when growing up. She was a strong
businesswoman, whose tenacity helped sustain her businesses and our family. I believe
that every up and coming entrepreneur should have a mentor, who will advise and
assist them as they grow their ventures.
How long does it take for a venture to get off the ground, in your
experience?
With regards to
a spaza-shop specifically, I would say between six to 10 months and if it
doesn’t work, try tweaking your offering by getting new products that are of
interest to your customers.
Is it ever alright to give up on a dream?
No, dreams are
meant to be followed. Dreams are the things that challenge us to do better and grow
as people, if we were to stop following our dreams, we would stop growing as
individuals.
What’s your life motto?
“When life
gives you lemons, make lemonade!” In my case: “When life gives you oranges,
start a business!”
Do you believe in internships for your business?
Yes, I do. The
skills and knowledge gained from undergoing an internship can help up and
coming entrepreneurs grow their ventures and reach the goals that they have set
for themselves. Unfortunately I do not have a formal internship programme,
however I do share the knowledge and skills I gained from Coca-Cola South
Africa’s "Women Empowerment" training course with a few women in my community.
If you could give yourself any advice back then, what are your top
5 wisdoms?
* Always
conduct market research ahead of starting your business.
* Beware of who
you partner with.
* Always know
where you want to be in the future and have a clear vision of your future plans.
* Never give up
on your hopes and dreams.
* Equip
yourself with the relevant skills needed to run your business.
