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. 

Wednesday 101s: 5 quick answers to tricky questions

Wednesday 101s

It’s happened to me a million times – you’re in a meeting and someone (the boss, a client, a potential business partner) asks you a question you’re just not ready for. And instead of sitting there like a boggle-eyed fish blowing bubbles in a bowl, I’ve always wanted some sort of quick-response guide to provide an adequate enough answer to keep the meeting moving forward and to win an opportunity to respond later with the correct information.

I’ve said before that it’s imperative to go to meetings completely prepared (especially where figures/numbers are concerned, when it’s harder to weasel out of something) but you simply can’t anticipate everything – and, let’s face it, some questions are there to deliberately trip you up. But you can stumble, roll and stand up tall with losing credibility. 

The three main rules for answering questions are: 

1. Be honest. Don’t lie to cover up something you don’t know as it may come back to bite you in the ass later. Saying “I don’t know” is sometimes to your detriment, so avoid it. 

2. Be direct and confident, not defensive. A positive, pro-active reply will get you further. 

3. Don’t waffle. Give the exact information that’s required to answer what’s being asked in a simple manner. Baffling people with flowery, fancy words and jargon you assume they’ll understand doesn’t make you look clever. It’s just cringe-worthy. 

So here are five quick responses for when you’re asked a tricky question – it’s up to you to decide when to use them: 

1. The deliberately dumb question 

“I get what you’re saying but I believe the question you should be asking is...” 

2. The question that’s completely out of left field that’s really important 

“I don’t have an answer for you, but your question deserves a proper answer and I’d like to take the time to do that offline if that's okay.” 

3. Specific question about something, which is confusing or unclear (when your inner voice goes "huh?") 

“Just to make sure I understand, you’re asking me to....” rephrase their query in your own words to make sure you get what it is they want to know of you. Once you get clarity, you’re better able to craft your response. 

4. A question about your opinion on something 

Often, unless you’re senior management, your personal opinion isn’t in question. Avoid the urge to get into gossip, company politics and discussing confidential business matters. In your response, stick to a reply that’s true to your company’s or project’s ethos. 

5. A question that asks you to show your expertise 

“What we learned from working with Client X on Project A last year was...” 

I personally tend to favour response no 2 if I don't know something or haven't got the info with me. Sometimes it works; sometimes it doesn't. So if you have any responses that you've tried and they've worked, please add them as a comment.

Annica van Rensburg: Living your passion

Annica van Rensburg, Annica's Designer Cakes

Many of us can bake passingly well, but it takes a special combination of talent and business savvy to create bespoke cakes for exclusive clientele. Annica van Rensburg started Annica’s Designer Cakes in 2002 with three staff. Today she’s expanded the business to include a deli and restaurant, and has 21 staff making beautiful cakes to order, to suit any occasion.

What were you doing before starting your business?

I studied interior design and decorating in London, so when I relocated to South Africa in 1998, I got involved with a small home industry that belonged to a family member. While working in the home industry, I soon discovered that specialised confectionery was undeveloped in South Africa, so I started applying my artistic skills to make creative cakes.

What kind of planning went into starting the venture?

I just found my passion and always listened to my instinct – there were no formal plans in place – and I opened my own shop in 2002.

What was your big dream for this venture?

My dream was to be able to do what I love and enjoy. And as I found that from confectionery, it also allowed me to push the limits in creativity. To have a clients who appreciate the time and effort that goes into creating a designer cake is the big reward.

If a person wants to turn a hobby into a viable business, what are some of the things they need to bear in mind?

For me, it was sacrificing most of my family time and having no social life. Thankfully I have the most understanding and supportive husband. There are also always disappointments and hardships, but you need to have patience – doing things with understanding and goodness in your heart is important. 

How has your business grown since the day you started? 

Looking back, it was me with few assistants. Now I have a talented and committed team of 20 staff members, who I credit for a lot of the growth of my business. And I recently moved to bigger premises to accommodate the growth.

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

Never! Even when we fail, at least we’ve followed our heart and learned something in the process.

What’s your life motto?

Life is too short to carry negativity in your attitude. The greatest gift to yourself and others is love and forgiveness.  

Get in touch with Annica van Rensburg from Annica’s Designer Cakes via email: annicas@mweb.co.za, visit her website: www.annicascakes.co.za, find her on Facebook or read her blog: http://annicasdesignercakes.wordpress.com

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!

Kendel Falkson: Keeping it a small business

Kendel Falkson, Blank Page Communications

It was while working in communications with a friend that Kendel Falkson realised she could go into business for herself. She opened Blank Page Communications in 2009 from her home in Johannesburg, with around R6 000 as seed money and the belief that her venture could help her realise her entrepreneurial dreams.

Have you always been entrepreneurial?

I’ve always wanted to start my own business. As a child, when asked what I wanted to be when I grew up, I would always say, “The Boss”.

What kind of planning went into starting the venture?
I didn’t have a business plan per-se, but I made a point of getting all I needed to understand and know about my business down on paper first. I worked through the following steps:
PROCESSES: I asked myself, "What do I want to do and how?" I then wrote a list of steps I needed to follow, from picking up the phone to call a prospective client, to finding answers for things like how I was going to charge for my services, how I’d do the actual work as one person, how my filing system would be set up, if I’d use freelancers, what my tax options were, how I’d find clients, etc. Once I’d done this, I was much clearer on exactly how the business would run.
BRAND IDENTITY: I decided on a company name, then set about getting a logo done and having my stationery made.
HOME OFFICE: I set up my fully-equipped “home office”, sorting out a desk, chair, laptop, printer, files, etc. Once that was complete, I picked up the phone and started…

What was your big dream for this venture?

I don’t want to be a huge corporation. I want life balance. I’m a mom, a wife, a business owner, and I want to do all all three the best I can. I love my work and want to be able to give my clients my best attention, so I want to keep the business small.

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

You have to find a newtork of people you can meet with regularly to brainstorm with or bounce ideas off of. It can just be three friends who own their own business; as long as you’re not completely isolated.

How do you figure out what makes you unique from everyone else in your market and how do you leverage that difference?

If you’re passionate and energetic about your business, you will do well. I know that I’m far more likely to work with people who I feel in safe hands with and the only way you become a safe pair of hands is to know your business inside and out and be confident in that.

How did you figure out what to charge for your service/product?

That came from chatting to people in the industry. Even something as simple as calling a business that’s in a similar niche as you are and asking for a “dummy” quote can help you set your prices.

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

They spend too much money – it’s great to have lots of money all of a sudden, but that doesn’t mean spend it all at once! Success can also mean forgetting to save for that rainy day or quiet patch – believe me, they come around every now and then.

How do you keep yourself motivated?

This is the hardest thing in business! I normally have a few days of feeling depressed before I realise what is bugging me… then, I usually take a day off and go and do the things that inspire me. I go to the gym and do some boxing – I find I’m very angry when business is bad, so I start my off day getting rid of all my anger and frustrations. Then I go and have a breakfast out, visit shops I like, see a movie, spend time with friends and remind myself why I started this in the first place.

Is it ever alright to give up on a dream?

Sometimes giving up is better than being forced shut!

If you could give yourself any advice back then, what are your top 3 wisdoms?

* The wheel always turns – sometimes business is slow and you want to cry, or you lose a client or a big pitch, but the wheel always turns; business goes in ebbs and flows.

* You can never become complacent; that’s when you lose business.

* If you do do something really damaging you need to learn from it. You can’t take it back but you can NEVER do it again. You have to keep learning!

Get in touch with Kendel Falkson from Blank Page Communications via email: kendel@innovise.co.za, on LinkedIn: Kendel Falkson and on Twitter: @kendelfalkson