Michael Gullan: Don't underestimate good PR

Michael Gullan, Gullan&Gullan Advertising

In 2004, Michael Gullan made the leap into entrepreneurship by starting his own advertising agency, Gullan&Gullan Advertising (Pty) Ltd with a business partner. Their start-up capital was R100 000 and the pair were based out of Seattle Coffee Shop in Hyde Park Corner Shopping Centre in Johannesburg until they won their first client – Vespa – who they still have as a client today.

Have you always been entrepreneurial or is it something that’s grown over time?
My father is a successful entrepreneur and one of his ventures was an advertising and public relations company. As a child, I used to spend time playing in the studio of his agency. I knew then that I wanted to own my own agency. 

What kind of planning went into starting your venture?

When we started our agency we had no formal business plan. We formalised things a few years into the business. We started with a clear vision and mission of the kind of clients and work we wanted to attract and then went out and found it. That said, for a business-to-business service industry, I can’t see how too much of a technical business plan is relevant or helpful to charting the way forward. What is important is understanding your core offering and point of difference, positioning against competitors and mapping out your financial goals, and then making sure they are met. 

What was your big dream for your venture? 

We originally started the business as Guerrilla Marketing and our niche was to offer clients smart guerrilla marketing tactics and strikes that would have a maximum impact with tighter budgets. This positioning was limiting in that the bigger corporate brands were not interested in guerrilla tactics and so we struggled to make inroads for our full services agency. This is when we made the decision to rebrand Guerrilla Marketing as Gullan&Gullan and developed our proprietary brand-centricTM methodology. 

How does a new entrepreneur find business leads and profit from them? 

Identify sectors that you have some background experience in, as you will be able to add value and have an intelligent conversation when pitching your services. Target these sectors first by calling key decision-makers. Be sure you have smart and good quality supporting sales and marketing brochures, emails, business cards and website in place so you can communicate with them from multiple angles. What I always recommend is PR; there is nothing more effective for brands and businesses than some good ink, even more so than traditional awareness marketing. It comes with the journalist and media endorsement, and has much more gravitas. 

How does a new entrepreneur figure out what makes them unique from everyone else and leverage that difference? 

A SWOT analysis would be the obvious answer. But for a start up it’s prudent and important to know what you’re good at and amplify that. Be sure to interrogate your competitors and focus on being strong where they are weak. Also, without sounding too idealist – if you can do what you enjoy and are passionate about, you’re more likely to excel at it. 

How does a new entrepreneur figure out what to charge for their service/product? 

Pricing your product or service is one of the most important considerations. You need to research understand what your main competitors are doing. And have a clear set of objectives. Do you want to drive volume? If yes, then you should be priced competitively. Do you want a quality positioning? Then you should be charging a slight premium. Are you providing a luxury service; then you should be charging substantially more. Remember the general rule of thumb: The more expensive the more you have to invest in marketing.

What was your most epic fail in the early days? 

Positioning ourselves as a guerrilla marketing agency for clients with small budgets – our own growth potential was limited. The rebranding to Gullan&Gullan was the best solution, we moved offices, rebranded, developed our brand-centricTM methodology and got a bunch of PR and we never looked back. 

What are the two most common mistakes that new entrepreneurs make in their first three years of business?

Choosing the wrong business partners out of financial necessity – it is so difficult to get out of an ailing business partnership so rather don’t have partners or go, instead, into a partnership where the skills are complementary. Hiring cheap staff is also fraught – pay peanuts and get monkeys – so be prepared to pay the price for experience and expertise in key-areas of your business. 

How do you keep yourself motivated? 

I am a member of the Entrepreneurs Organisation (EO) and can always pick up the phone to any one of my fellow members and ask for advice or just a coffee to download some of my frustrations in a safe space. 

Do you have a mentor? 

A mentor is one of the most important assets an entrepreneur can have. I have my father who has successfully built a number of businesses, but he travels for half the year so is not always accessible day to day. Mostly, I draw on his grace, wisdom and in challenging times think, “What would my dad do?” My partner, Desiree, is also a mentor and helps me see and understand things from a viewpoint I don’t always see. 

How long does it take for a venture to get off the ground? 

In my experience there are no overnight successes. Even when you hear about a business that became an instant success, I can guarantee that there was at least five to 10 years of history of plugging away. So give yourself at least three years to turn a small profit and at least five to 10 years to achieve your success goals. You should always be looking at ways to improve your offering. People, behaviours and business changes too rapidly for any company to stagnate. The old adage “adapt or die” is too true! 

Is it ever alright to give up on a dream? 

Yes, when your dream becomes a nightmare, you need to wake up and smell the coffee. Then take a deep, honest look within and if need be let go of your dream and cut your losses quickly. Then take the time to learn from your mistakes and apply your learnings to your next dream. 

What’s your life motto? 

Family first. Everything else second. So whatever decision I make, I ask “Is this to the benefit of my family now and in the future?” 

Which three character traits do all entrepreneurs possess? 

A healthy appetite to take risks. The ability to function on little sleep. Being ok with making mistakes. 

If you could give yourself any advice when starting out, what would your top 5 wisdoms be? 

* Hire people smarter than you. 

* Be sure you have enough start-up capital. 

* Be clear about your positioning in the market. 

* Set realistic goals, write them down and have an action plan to achieve them. 

* Embrace change. Business is dynamic and the ability to adapt and change with the business is key to success. 

Get in touch with Michael Gullan from Gullan&Gullan via email: michael@gullanandgullan.com, visit: www.gullanandgullan.com, find him on Facebook and on LinkedIn. 

Leron Varsha: Learning from experience

Leron Varsha, Fore Good

Leron Varsha is the CEO and co-founder of Fore Good, one of South Africa’s leading fast moving consumer goods (FMCG) brand builders. He started this family business in 2004 from his sister’s study and has since grown the company into a South African market leader through brands like Pringles, Samsung, Tang and Bioplus.

Have you always been entrepreneurial?

I started in the corporate tech world, but I have always had an entrepreneurial goal.

What were you doing before starting your business?

I was involved in all areas of technology, including web and management. I always had a desire to learn more and to go to the next level. I never wanted to remain in the same field, to keep learning different things. I returned from London and wanted to start my own business.

What kind of planning went into starting the venture?

The idea is usually only a starting point. As business evolves, it starts with a certain idea, and then alternate opportunities open up. The business plan is important to sell yourself to potential investors and to ensure that you are on track with your envisaged goals. However they need to be constantly updated. Some of the essential requirements is a brief overview of the business, the people involved (incl. their expertise), the projected expenses and incomes, as well as a start-up expense sheet.

What was your start up capital and where did you work from?

We started with basic salaries and initial funding from a partner, working from my sister’s study.

What was your big dream for this venture?

Our vision has remained constant: “Fore Good is a dynamic investment and global trading company primarily focused on the Fast Moving Consumer Goods (FMCG) sector”.

How does a new entrepreneur find business leads and profit from them?

Every business has a different target for lead generation; you need to understand who your potential clients are and then service them better than anyone else.

How does a new entrepreneur figure out what makes them unique and leverage that difference?

Uniqueness can be on a product or service basis. With products an example may be performance or pricing superiority, while in a service business it may mean the best at a certain component.

How does a new entrepreneur figure out what to charge for their service/product? 

This is extremely important and often makes the difference between success and failure. Your pricing needs to be competitive in the market, however if you are offering additional value you need to ensure that you are charging for this, and that the client is willing to pay the premium. Also if you cost according to the market and do not have a good enough offering this will be an issue. Certain industries also work on scale; you need to ensure that you can compete on what you offer and the price points in the market.

What was your most epic fail in the early days?

Most perceived failures contain elements of successes and learning. For example, purchasing the incorrect product or quantity, can be painful, however you may still be able to sell to alternate channels to recover your capital investment.

What are the two biggest/most common mistakes that new entrepreneurs make?

Most new entrepreneurs are impatient and they believe success will happen overnight. They don’t understand the time, hard work and passion that are required to get a project off the ground.

Did you have a mentor?

Yes, my uncle. There’s not one most valuable piece of advice, but rather a lifetime of learning from experience. A mentor is fundamental to great success. Learn from their way of thinking.

Which three character traits do all entrepreneurs possess?

Perseverance, determination and a never let up attitude J

If you could give yourself any advice back then, what are your top 5 wisdoms?

* Listen intently to the other person, experience is essential.

* Absorb and learn as much about the industry as you can.

* Growth comes with pain; you can push yourself even further than you ever imagined!

* Understand as much about the financials as you possibly can.

* Get the right people on the bus.

Get in touch with Leron Varsha from Fore Good via email: info@foregood.com, visit: www.foregood.com or find him on LinkedIn and Twitter: @LVarsha.

Roberto De Carvalho: Get out of the kitchen to see your clients

Roberto De Carvalho, Roberto's
Signature Restaurant
Photo: Peter Unsworth 

Since he was nine years old, Roberto De Carvalho dreamed of being a chef and owning his own restaurant. So, after gaining valuable experience at some world-famous eateries like Nobu and Reuben’s, both at the One&Only in Cape Town, De Carvalho opened Roberto’s Signature Restaurant at 44 Long Street, in July 2011 with 12 staff.

Have you always been entrepreneurial?

For 16 years I worked for other people, but the last three years, I would probably say, is when I started to formulate how I would go about starting my own restaurant.

What were you doing before starting your business?

Prior to this I was the resort Executive Chef at the One&Only Hotel. Being in charge of world-renowned restaurants such as Nobu and Reuben’s at the One&Only also made me realise that I was capable of opening and running a successful restaurant of my own.

What kind of planning went into starting the venture?

I would say that an elaborate business plan is necessary, especially if you are opening a restaurant with many facets to think about (décor, food style, pricing, location, etc.). It gives you a good place to start from and I think that when you write a business plan for your own restaurant, you want your business to be the best it can be. It’s a great reminder too if you try and keep what you are doing on a daily basis, in line with what you thought of when you first did your business plan.

What was your start up capital and where did you work from?

My capital came from 10 years of saving and some investment from my father – I contacted letting agents and then started to view premises for my restaurant until I found the one which I thought had the best location, as well as the best rental payment that I could afford.

What was your big dream for this venture?

To be the best Mediterranean-style restaurant in Cape Town, offering five-star quality food and service at affordable prices.

How does a new entrepreneur find business leads and profit from them?

Every possible angle has to be utilised – in my line of business it means staying in touch with the concierges of the surrounding hotels, so that they send their guests to us for at least one meal while they’re in Cape Town. This brings many new feet into the restaurant – people who would probably never have known about us had the concierge not informed them about us.

How does a new entrepreneur figure out what makes them unique and leverage that difference?

By seeking out weaknesses in other businesses like yours and implementing better ways of doing things in your own business – I have found that not many restaurants in Cape Town cater to the vegetarian population, so I’ve implemented a vegetarian menu with new and different items on it to bring the vegetarians back and get them talking about it to their friends who are also vegetarian.

How does a new entrepreneur figure out what to charge for their service/product?

For me, I did price comparisons between the other restaurants around me. To start off, I pegged our prices somewhere in the middle of the competition because I didn’t want to be the cheapest, but I also didn’t want to be the most expensive and scare potential customers away when they saw the menu. From there, after a few months, I became aware of items that customers said they couldn’t get better in other restaurants, which meant I could then start to adjust the prices slightly to balance with the demand for those dishes.

What was your most epic fail in the early days?

Hiring the wrong staff – I eventually re-hired and became more stringent in the hiring process.

What are the two biggest/most common mistakes that new entrepreneurs make in their first three years of business?

Over-capitalising and not sticking to budgets.

How do you keep yourself motivated?

By remembering a little 9-year-old boy who was adamant that he wanted to be a chef and make people happy by providing them with the food that they like to eat.

Did you have a mentor?

I have three major mentors in my life: my father, who taught me to either do something properly or not at all; the second is Rudi Liebenberg who, I believe, pushed me in the right direction to make me the chef that I am today. My third mentor is Clive Bennett, who taught me the finer details of running a business from the financial aspect and forced me to rethink ideas I had about how to try and run a business with as little costs as possible.

How long does it take for a venture to get off the ground, in your experience?

In the restaurant business, I think it takes at least three years to get your name out to as many people as possible and that action plan should be tweaked as many times as needed during this time to make the business a viable entity. After that period, if you’re still not succeeding, I think it would be a good idea to shut shop.

In your opinion, is it ever alright to give up on a dream?

No it isn’t, as long as it is not to the detriment of your health or financial stability!

If you could give yourself any advice back then, what are your top 5 wisdoms?

* Save more money in summer to cover the winter months.

* Make sure to count stock more regularly to ensure that all is accounted for.

* Put more Portuguese items on the menu from the get-go as there’s a lack of good Portuguese food in Cape Town.

* Train staff more thoroughly. Show them how you want things to be done and triple check that they understand how you want the “ship” to be steered.

* Get out of the kitchen and speak to your customers every chance that you get.

Get in touch with Roberto De Carvalho from Roberto’s Signature Restaurant via email: info@robertodecarvalho.co.za, visit: www.robertodecarvalho.co.za or find him on Facebook or Twitter: @chefdecarvalho

Mitch Marescia: Is your service significantly sexy?

Mitch Marescia, Camargue
Underwriting Managers

Mitch Marescia is CEO and co-founder of Camargue Underwriting Managers, one of South Africa’s most successful niche insurance underwriting agencies, which he started from an idea hatched in a gym steam room in 2001. From two staff and big dreams, Marescia now employs 35 people and runs a sustainable business that's transformed the insurance industry.

Have you always been entrepreneurial?

Can you grow an entrepreneur or are they born? I’d like to think that people can acquire many of the entrepreneurial skills needed to run a business as they mature, and as they become more confident in themselves and find their place in the world. I definitely think there are certain characteristics of being an entrepreneur that you can identify in people from a young age though. Take a look the kid at school who makes sweets at home to sell to his peers, or offering to carry an elderly woman’s shopping bags for money… and often that kid grows up to be an entrepreneur. I was certainly one of those kids; I always saw a buck around every corner. I’d work in our neighbours’ gardens and do almost anything to earn a few bucks.

What were you doing before starting your business?

Blessings and direction often come in many disguises. Some of my best motivators have often stemmed from very negative experiences. Whether it was an employer that I disagreed with, or a business partner who let me down, these situations became good spurs for me to do something different. So prior to starting my first business, MGM Corporate Solutions, I was the Vice President of operations for AIG Africa. Although I learned a tremendous amount while with AIG, I quickly reached a point where I couldn’t stomach the internal politics that come with being part of an international corporation, and so started my own consulting business which was reasonably successful… and it was a big risk. Camargue’s birth came about when I tried to help a friend who needed work.

What kind of planning went into starting the venture? Big business plan or none?

That’s a good question. People often make the mistake of thinking that a business plan is going to be the magic answer to running a successful business. But the plan is only one element. Whether it’s a plan written down on one page or it’s a 21-page document, a plan is essential. But more important than having an idea is having vision and passion. Often the passion around the idea is more important than the plan. If you have both, you’ll definitely survive a lot of initial start-up trauma. A plan is important, but you need to work your plan with passion.

What was your start up capital and where did you set up office?

We started up in a little office at home… on my couch to be more accurate. In fact, truth be told, the entire idea of Camargue was conceived in a steam room at the Virgin Active in Bruma! So space, and place and geography aren’t always important to starting up a successful business. From the couch, we migrated to a “broom cupboard at Hollard”… Hollard, who were our very first big supporters, gave us a little office that we squeezed into. We literally had zero start-up capital, but did have a loan account that peaked at about R2.3 million, and that was paid off after three years.

What was your big dream for this venture?

We wanted Camargue to be an idea – not a place, not a physical space, not a product. We started with the idea of living differently, engaging with your society differently, operating in the economic space differently and aimed at bringing something of value to the market. This ultimately became our sustainability approach. When we looked at insurance, we realised that we wanted to turn it on its head. I came from a business empowering consulting background, and although I was very familiar with insurance, my business partner was the underwriter. I suggested putting the business empowering element ahead of the insurance – with insurance being the final part of the jigsaw – and that approach lead to our success. Our approach was later known as the “blue ocean strategy” by some industry gurus, but we were using it way back then.

How does a new entrepreneur find business leads and profit from them?

Door-to-door. You’ve got to just keep knocking on those doors! You actually have to pound the pavement and then resole your broken shoes and continue knocking door-to-door. Whether it’s meeting people in a coffee shop, or knocking on a client’s business door, you have to do whatever it takes to meet as many people as possible and one lead will eventually lead to another.

How does a new entrepreneur figure out what makes them unique and leverage that difference?

It’s such a personal journey. We were very fortunate to have started our business within a niche market of the insurance industry. So it’s a case of identifying what you want to be; do you want to offer a service or product to the mass market or do you want to be in a niche – offering a value-added service and product, where these are less price sensitivity? This decision will often dictate how unique you are and how unique you can afford to be. You know what you want to bring to market, so the question is – how do you make it unique?

How does a new entrepreneur figure out what to charge for their service/product?     

Be serious about what it’s going to cost you to produce your product or develop your service, and don’t forget to include your time! A lot of people forget to add their own time to the cost of developing their product or service. Once you’ve established those basic costs, add on what you feel is a comfortable mark up, and this will be based on your projected volumes to make a living out of. Then you have a reality check and you find out what your competitors are charging for the same thing. If your product or service is significantly different and sexy – you can then afford to be less tolerant of price. So, you have to look at all your costs and add 100% mark-up – maybe more – and then look at what the rest of the market is doing.

If you could give yourself any advice back then, what are your top wisdoms?

If you asked somebody 10 years after starting a business: “If you’d known what you were going to go through, would you have commenced on the journey?” their answer might be “no”. I believe that blissful ignorance and raw passion upfront is often what gets you to start something and it creates a momentum. If you knew the pain you were going to go through in year two and even in year three – you might not choose to embark on your journey. That’s also how you discover – through pain, friction, conflict and trauma – your tenacity and that’s how you grow. So, I’d want to stay blissfully ignorant. The most important wisdom for any entrepreneur is to choose your principles and your ethics… choose how you want to operate your business. There are all sorts of challenges and temptations out there, just like the classic “tenderpreneur”. Today people are so desperate to get work and business… you have to decide if you’re going to make that first bribe or not. You have to decide where your value system lies and whether you’re willing to compromise and lastly, do not confuse motion with progress!

What was your most epic fail in the early days? How did you work through/solve it?

The person I backed to start the business with was not the correct partner for me and vice versa. That was my biggest fail. That being said, if that person hadn’t presented, I wouldn’t have taken up the business and turned it into the success it currently is. Today 35 people have permanent jobs, we’ve just started up an internship programme that will no doubt change many more lives, we’re contributing to the development of skills within the industry through our academy programme for brokers, and then there’s our people development drive where we’re actively involved in various charity works. Our network of people and partners across the globe is just so encouraging and none of this would’ve happened if it wasn’t because of that epic fail.

What are the two biggest/most common mistakes that new entrepreneurs make?

Many entrepreneurs confuse cashflow with profit, and they battle to separate their personal finances from business finances.

How do you keep yourself motivated?

When I first started the business somebody said to me: “When you put yourself out there, when you take a risk and take a chance and you’re feeling purely motivated – you put something in motion – and the universe has a way of rewarding you”. That little piece of wisdom kept me going during the lonely moments. But I also noticed that when I walked down the aisles in a supermarket, and while I was sitting around the airport, I’d find far more people like me on this planet, who had taken a chance… and that’s ultimately how you start forming natural networks of people who are going through similar challenges. Often, this newly acquired network of entrepreneurs keeps you motivated and then there’s your personal “stuff” – and I say stuff loosely, because it includes everything that constitutes you.

Did you have a mentor?

We definitely all need mentors and they come in different forms. A mentor doesn’t have to be a business associate or somebody that you met in business; they could also be your church minister or a teacher. The big thing about being an entrepreneur is that it’s a lonely space and a lot of focus is put on personal management. You can either choose to be a person who sits on the couch and watches DStv all day long, or you could be the other extreme and be up at 3am doing reports. So it’s very important to learn how to properly manage yourself – so that you’re performing at your best. A phrase that was put to me early on by somebody was as follows: “At any point in time, do the most productive thing possible”. When you’re in the waiting room at the doctor, or in the car, wherever… use that time to do something productive. This is definitely the best time and personal management advice you’ll get. This of course includes rest. Every driven entrepreneur needs rest. If you’ve chosen to rest – go and rest! To rest is often the most difficult thing for entrepreneurs to do.

How long does it take for a venture to get off the ground, in your experience?

I think three years is a good time to get a business off the ground. Within two to three years you’d know whether you’ve got relevance in the market or not. You might not be making money, but if your offering is valid, you should be approaching break-even by year three. By year five you should start enjoying the cream of all your hard work. If things aren’t going to plan by year three – you should consider tweaking your business strategy, and start questioning if you’re in the right business at all. In some cases, it’s obvious after six months that your venture isn’t going to work… like selling ice to Eskimos.

Is it ever alright to give up on a dream?

No! Dreams are what keep us inspired beyond the everyday, and it’s often when the biggest dreams are pursued that they produce the most amazing results for you and for society. If anyone told the Wright Brothers that they shouldn’t be flying – it was their dream to fly like birds – then today we wouldn’t be able jet-set around the world! And there are many more examples like that. If it wasn’t for Steve Jobs we wouldn’t have touch-screen technology.

Do you believe in internships for your business?

We certainly believe in internships. There’s nothing better than learning a craft by sitting next to a professional who’s done it before. You can’t replace that experience. In fact we’ve just started an internship programme here at Camargue! Interested candidates are welcome to approach the Camargue Academy, which is headed up by John Stebbing who will conduct an interview.

Get in touch with Mitch Marescia from Camargue Underwriting Managers, email: mitch@camargueum.co.za, visit: www.camargueum.co.za, find him on Facebook: and on LinkedIn.

Jonty Fisher: Bringing strategy back

Jonty Fisher, Bletchley Park

Jonty Fisher started Cape-based Bletchley Park with a workforce of three and no fixed address. His initial vision was to provide a fully integrated marketing solution for smaller clients but his ultimate goal was to become best known for bringing strategy back into executional marketing communications.

Have you always been entrepreneurial?

I grew up needing to make my own pocket money, so whether it was coaching sport or running a stand at the Greenmarket Square, I had ways and means in my early years. Myself and a business partner started an agency in my Honours year at the University of Cape Town (UCT), and we didn’t look back, so I guess that would qualify me as always having an entrepreneurial side. To be honest, I’ve never talked about myself as being entrepreneurial, I just took decisions at certain times that were the right ones for me at that stage.

What were you doing before starting your business?

I was studying Business Science at UCT and was never interested in the beauty parade rolled out with all the big marketing or consulting firms. Mark Shuttleworth gave a guest lecture in our business strategy class (before he sold Thawte) where he made the statement that South Africa was in a small window period where conditions were excellent for entrepreneurs. He said that if we had any consideration of doing something by ourselves, that now was the time to do it. That was my final nudge.

What kind of planning went into starting the venture?

To be honest, you learn the most by doing, especially when you’re starting from a young age with your own capital. When you’re older and wiser and certainly if you’re looking for external funding, then something like a business plan is critical, but when you’re young and just starting out, I’d certainly advocate planning a bit less and just being immensely action-orientated. That bias towards action and trying loads of different approaches (when you can take those risks) is a lot more valuable than a business plan on a piece of paper. Be clear on what outcomes you want, and what type of business you want – from enviroment to colleagues etc – but give yourself the freedom to explore. I know a lot of people that hide behind business plans of what they’re “going to do”. I’m more interested in those that don’t talk about it; they just go towards it and get started.

What was your start up capital?

Initially we had no capital and worked between my business partner’s flat and the Golden Spur in Newlands, depending on the time of day!

What was your big dream for this venture?

The focus when we started was on providing a fully integrated marketing solution for smaller budget clients. It was more client-side thinking focused than purely executionally focused. Our aim was to start at objectives and solve marketing problems in a one-stop-shop – thinking of broader objectives first, and then taking a channel neutral approach, rather than executing purely in terms of what channel specialty we offered. Our tagline was “On time. On budget. As agreed.” (Cringe!). The bigger dream was to become famous for bringing strategic thinking back to executional marketing communications.

How does a new entrepreneur find business leads and profit from them?

Initially, we tapped a lot of known networks – family, friends, school contacts etc, which carried us through the first few months, and then referral was our big driver for the first few years as we made our way up the client scale. The profit came from ensuring that we sat so close to the client on their challenges, really walked the walk with them, that we became indispensable. That’s where the profit was drawn from. We weren’t suppliers, we were true partners.

How does a new entrepreneur figure out what makes them unique and leverage that difference?

I think there are two sides to it. Naturally you’re going to have a position or thought on what makes you different. You need to express that in various forms and then just get in front of clients and test it out. Don’t wait until it’s perfect, just go and try it. You’ll very quickly learn what is turning the lights on and what’s not. The other side is always try to get close to your customer so that you can learn what is relevant about what you think is valuable to them and what is not. There are always shortcuts. Ask people for advice. People right at the top of companies that you will look to pitch to. In our experience, people are incredibly willing to help young entrepreneurs trying to get started. We learned the most in areas we knew nothing about by just picking up the phone to marketing managers, sales directors and MDs and just asking them to help us out for 30 minutes. Almost all of them obliged.

How does a new entrepreneur figure out what to charge for their service/product?

Various industries can offer broad benchmarks for billing, but ultimately you have to let the market advise you. Start at a median and keep increasing your pricing until your losing at least 15% of your proposals for price reasons. Then you know where you’re sitting. Underquoting is one of the biggest traps enterpreneurs fall into when starting a business and it can hold you back for years. You have to put a value to your belief, and have the confidence to stick to it.

What was your most epic fail in the early days?

In our first year we were running the closing event for the House & Leisure Young Designer’s Awards in Cape Town, which was probably our biggest client at the time. It was a very flashy affair with loads of celebrities and journalists there. We had this beaten up old IBM ThinkPad that we were running this Flash presentation off on a big screen, which carried the announcements and introductions to the winners. Halfway through, while all the guests were glued to it, the old ThinkPad gave up - “there is not enough disk space to run this application” - and it crashed, leaving the guests looking at the desktop with a hundred client files on it! Not much we could do but laugh it off!

What are the two biggest/most common mistakes that new entrepreneurs make?

Undervaluing what they do and trying to do grow too fast. Cashflow is king.

How do you keep yourself motivated?

Family naturally plays a big role, but I’m a big believer in building an entrepreneurial network too. There are challenges that you face as a young business owner that are so different to corporate environments and it really helps to share knowledge, learnings and commiserations with fellow entrepreneurs. Personally, you have to remind yourself why you started in the first place. If you’re being true to that, then it will get better and tough times will pass. If you’re not, change it.

Did you have a mentor?

I’ve been lucky to have various great mentors over my career, in various different spheres of business focus. They’re incredibly valuable and can fast-track your journey. The single most valuable piece of advice I have ever received is to give myself the freedom in my work to be absolutely true to myself. It sounds immensely simple, but it is something that very few people do, and especially given the pressures of running your own business, you often feel like you have to compromise. I’ve learned that each time you compromise, and try to chameleon your way to a piece of work, or a client relationship, or whatever, you subconsciously chip away at your own confidence and focus. Always be true to yourself and your own dreams; do what you need and want to do, not what you think people expect you to do, or how they expect you to act. That freedom can truly build category-breaking businesses.

How long does it take for a venture to get off the ground, in your experience?

That’s a very difficult question to answer. I think it’s very diverese in different industries, at different ages, and naturally with different funding platforms, and I don’t think there’s a standard benchmark here. However, I’d say it’s time to shut up shop when you’re not feeling the love anymore, which goes without saying. Building a business is often a thankless, highly stressful and demanding journey, and you have to build an armour of love for the business to handle it. If you fall out of love, you’ll be burnt out quickly.

Which three character traits do all entrepreneurs possess?

Belief, tenacity and self-awareness.

Do you believe in internships for your business?

I do, for both talent scouting and more philosophical reasons too. I think we work in a business environment where “work experience” is seen as a non-negotiable, which can be a huge barrier to entry for young people. Internships can help them to bridge this divide. I also think internships are really important for young people to really find their meaning in their work – is this really what I want to do? We encourage interns to explore different areas and will give very honest feedback as to whether we think this is their game or not. If someone would like to intern at Bletchley Park, they just need to email: cv@bletchleypark.co.za

If you could give yourself any advice back then, what are your top 5 wisdoms?

* Focus. Don’t try to be everything to everyone. The fastest growth comes from focus.

* Just try it. Don’t wait until you think something is perfect. Fail fast.

* Don’t be afraid of anyone, believe in yourself and back yourself. You’re good enough.

* Find mentors early

* Be true to yourself. Always.

Get in touch with Jonty Fisher from Bletchley Park via email:  jonty@bletchleypark.co.za, visit: www.bletchleypark.co.za, on Twitter: @jontyfisher and on LinkedIn.

Frances Wright: Be an empowered entrepreneur

Frances Wright, Trinitas Consulting

Frances Wright, MD of Trinitas Consulting, knew her future was not as an oral hygienist, nor in PR. She launched the company in September 2006 with the dream of establishing a marketing/communications/operations company with a holistic view on clients’ businesses to positively affect business success.

Have you always been entrepreneurial?

It’s something that’s grown over time – I originally studied to be and practiced as an oral hygienist.

What were you doing before starting your business?

I was managing director for a PR company, but a disconnect existed between myself and the CEO’s vision resulting in an untenable work environment.

What kind of planning went into starting the venture? Huge, complicated documents or not?

Planning is important, but business plans should be succinct and to the point. I encourage clients to keep their business plans to no longer than four pages, and to remember that, although it is a good starting point, you need to be flexible within that plan to “roll with the punches” that entrepreneurship will throw at you. 

What was your start up capital?

Trinitas started in Raizcorp, and the capital came from share buy-back from the previous company that I worked for.

How does a new entrepreneur find business leads and profit from them?

Through excellence of delivery, resulting in word-of-mouth marketing and relationship-building.

How does a new entrepreneur figure out what makes them unique and leverage that difference?

Entrepreneurs should identify a problem in a specific market and then develop a solution that is specific to that need.

How does a new entrepreneur figure out what to charge for their service/product?

Work out cost of sale, forecast sales and spread overhead costs across clients, then add the required profit margin. Once the ideal sales price is determined, market research should be done to see if the price is in line with the market; if your price is too low clients may not take you seriously but if it is too high you will price yourself out of the market.

What was your most epic fail in the early days?

I sold shares to somebody that was not aligned with the business culture or ethos. After a few months I had to buy him out by paying back the money paid for the shares, plus interest.

What are the two biggest/most common mistakes that new entrepreneurs make?

Going after every opportunity that presents itself, without first evaluating the chances of success whether it be a business venture, or taking on a job within your business which is too much work for your company to be able to deliver on. More entrepreneurs fail from too much business than too little.

How do you keep yourself motivated?

By understanding your calling in life and keeping your eye on the next step only – take things day by day.

How long does it take for a venture to get off the ground, in your experience?

There should be money flow within three months. Profitability could take longer, but after a year or so, if there are no profits, the business model has to be looked at. Profitability does not mean that the entrepreneur can relax though, as more tough times will come. Keep an eye on the macro environment constantly to look for threats.

Which three character traits do all entrepreneurs possess?

Ability to take risks, the ability to handle stress and sound relationship-building skills.

If you could give yourself any advice back then, what are your top 5 wisdoms?

* Contain growth.

* Focus on one business.

* Keep learning.

* Surround yourself with support.

* Follow your gut, especially with regards to recruitment.

Get in touch with Frances Wright from Trinitas Consulting via email: frances@trinitas.co.za, visit: www.trinitas.co.za, on Facebook, Twitter: @FrancesRay and on LinkedIn.

Terri Brown: Get your brave on!

Terri Brown, Actuate

In 2002 and with zero capital, Terri Brown started Actuate, an internal marketing and communications agency that offers clients bespoke strategies to align their employees with their brand. She had three staff members and a few clients waiting for her to go it alone. Today, Actuate has won numerous industry awards and has some of South Africa’s biggest corporates as clients.

Have you always been entrepreneurial?I've always been very independent and I think that's part of being entrepreneurial – wanting to do it yourself.

What were you doing before starting your business?I was studying, and very briefly worked for a small marketing consultancy. The decision to start my own thing wasn’t a planned or considered one – it just happened in response to an opportunity that presented itself. One month I was a paid employee, the next I was paying employees.

What kind of planning went into starting the venture?
I didn’t have a plan; I just sort of stumbled along for the first year or two. I think those years were great learning years because a business plan can be a very hypothetical. Getting a few years experience allowed me to understand the realities of running a business and plan from there.

How does a new entrepreneur find business leads and profit from them?
Word of mouth – look after your clients very, very well. They’ll give you repeat business and send new business your way.

How does a new entrepreneur figure out what makes them unique and leverage that difference?
You have to know what everyone else is doing so that you’re aware of the gaps. You have to know what your clients want to know if the solution is viable and you have to know what you can do very well – better than the next guy.

How does a new entrepreneur figure out what to charge for their service/product?
Look at what it costs you to create or supply, and then add a reasonable margin. The offer must be sustainable – from a business perspective, a market perspective and a resource perspective. If any of these things are out of balance, the model isn’t sustainable.

What are the two biggest/most common mistakes that new entrepreneurs make?
Risking money they don’t have; rather grow slowly through self-funding. Taking on too much work and compromising on quality.

How do you keep yourself motivated to continue?
Put on your big girl pants and suck it up! You’ll go through shit times – everyone does – you just have to brave on.

Do you have a mentor?
I do. He told me it’s good to be a little bit scared. If you’re not a little fearful you’re complacent.

How long does it take for a venture to get off the ground, in your experience?
I think it’s different for every business, and every business needs to constantly tweak their offering – otherwise you’ll lose relevance and become outdated. But if you’ve done EVERYTHING and it’s still not working maybe it’s worth moving onto new challenges.

Is it ever alright to give up on a dream?
It’s alright to give up on a dream, but not dreaming. If it’s making you miserable and it’s not worth it, give up and find a new dream.

If you could give yourself any advice back then, what are your top 5 wisdoms?
* A lot of your problems will take care of themselves.
* It’s never as bad (or as good) as it seems.
* Work hard to keep good people.
* If you have a bad feeling about something walk away.
* If the worst thing imaginable happens – you’ll get through.

Get in touch with Terri Brown from Actuate via email: terri@actuate.co.za, visit: www.actuate.co.za or on LinkedIn.

Top 5 new business basics

Success and/or failure is a two-way street

This week we’ve met Peter Unsworth, Kendel Falkson and Styli Charalambous, all South African entrepreneurs in the media space. But the experiences and information they’ve shared can be applied to any start-up, no matter what industry. The common threads in their working knowledge are:

1. You don’t always need a formal business plan

Many new entrepreneurs get so freaked out by the thought of writing a massive, formal business plan, they simply don't bother. But if you're a small business person who is looking to secure funding to get your venture started, you definitely will. Business plans are there to assure the people you're looking to loan money from – be it a bank, angel investor, venture capitalist, friend or family member – that your venture is viable, has a future and will provide the income to pay their investment back over a set number of years. So, if you’re applying for funding, some admin time will be required – do your sums, make those projections and get that plan down on paper to prove to potential investors that your idea/product/service is worth the cash-injection that will give them payback at set points down the line. You’ll find some great example plans and more advice here, here and here.

Just one thing to remember about getting a second person on-board as “the money” – there needs to be a rock solid, yet reasonable contract in place, crafted by a lawyer (expensive, but worth it in the end). As part of their expectation, the funder may ask you to hand over a percentage of ownership in the business and you need to be comfortable with that; if you’re not and want to retain sole ownership, you may need to relook where the money’s coming from. The contract also needs to handle the “what ifs”… like exit strategies for you and/or your partners, loan payback terms, share buyouts, restraints of trade and non-disclosure agreements (NDAs).

2. Strategise, be confident and over-deliver

You may not need a formal business plan to get your venture going, but you must take a day or two to sit down and figure out a strategy on how you plan to attack every aspect of the business. From setting up an office and filing, to setting your billing cycles, branding your stationery and what you’re going to say to people when they ask you what your business does. You have to know what you do, the services you offer and the value you can add to potential clients’ lives better than anything in the world. That certainty breeds confidence, and if you’re 10 000% sure about what you do and how you do it, people will be more likely to buy into using your company over a competitor.

In learning about your new business you may want to get some “rules” or have systems in place before you start. Like setting yourself the goal of responding to correspondence within 24 hours, especially if you’re making great service one of your key deliverables.

3. Manage that cashflow

All three of our featured entrepreneurs say mismanaging cashflow is the biggest mistake a newbie makes once the money starts coming in. It’s great having all this cash to wave around and it can make a huge difference in your life – but only if you look after it.

Business – especially new business – comes in ebbs and flows, so until you’ve established yourself a solid reputation in the market, you’ve got to be prepared for those quiet times. Immediate cash relief is great: it will get you out of a debt hole quickly, but there will still be overheads to pay to keep that cash cow grazing. Pay all the bills, salaries and taxes relevant to you and your business in time and honestly, and resist the urge to run out and buy the trappings of a luxury lifestyle. How you spend your profit should be strategised, too! Plan for that “rainy day” wisely.

4. Want new business? Go out and get it!

We live in a connection economy, so the more people you know professionally is a massive plus. All our entrepreneurs agree that if you want to generate leads for your new venture or to seal the deal on new business, you’ve got to leave your house – and your comfort zone!

Whether it means cold calling potential clients, or following up recommendations and referrals from friends and family, no-one sells yourself better than you can – especially if you don’t have an advertising budget. Relying on email shots and phone calls is simply not enough – you need to connect, in person, with as many new contacts as you can. The most important thing to remember is that potential new clients only need to know two things: how your product or service is going to add value to, or simplify, their lives and how much it will cost. Know this information by heart, be confident, show genuine interest in them and keep your promises! Follow up regularly, stay top of mind, but abandon needy and creepy.

5. Passion pays off

Above all else, if you’re not passionate about your business, no-one else will be. Doing something you don’t love it just not worth it – and people can pick up on it. It’s easy to become discouraged when things are slow and aren’t going well. And, judging by our entrepreneurs’ comments, this is exactly the time to “fake it till you make it”! But that doesn’t mean hiding your emotions. If you’re having an off day and you can afford to, take a step back from the business, do some things that you enjoy and reconnect with the reasons why you started the venture in the first place. And lean on that support system – brainstorm new offerings, strategies and business leads. Who knows where the ideas may take you.

But if the cycle of bad days outweigh the good ones, our entrepreneurs agree that there comes a time when you have to assess whether continuing the venture is viable or not. It's a hard decision, but there's no shame in closing doors if something's just not working. Finally, be grateful for what you do have and take the time to say “thank you” in a way that suits you best.

And from me, to the universe, thank you for this -- and something better!