Ann Druce: Is your communications strategy clear & relevant?

Ann Druce, Octarine Communications

Ann Druce started KZN-based Octarine Communincations in April 2001 after the mid-size advertising agency where she was working underwent restructuring. She seized the opportunity to go on her own, and set up a home office with friends’ castoff furniture, a computer and a phone.

Have you always been entrepreneurial?

I started out in corporate marketing but, happily, working in organisations that encouraged entrepreneurial thinking. 

What were you doing before starting your business?

I had begun the process of cutting the apron-strings by moving from corporate to a mid-sized advertising agency. Then when things were tough and the agency restructured, it provided the impetus I needed to go on my own.

What kind of planning went into starting the venture?

I don’t think an elaborate document is essential, but a plan certainly is. However, before I’d even started thinking about writing a business strategy, my start-up plan was instigated by a client when I mentioned I might start an ad agency.  He committed to giving me his business if I started on my own, giving me the freedom to make the decision based on what I wanted to do, rather than a fear that it might be a while before I established a client base.

What was your big dream for this venture?

The good old-fashioned ideal of being a true business partner to my clients – learning their business and making a real strategic contribution: translating their marketing strategy into clear, relevant messages that reach their target markets.

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

Not every entrepreneur is a born salesman. But we have to use what we have at our disposal – from working our existing networks and developing new ones, to the dreaded cold-calling. I recommend that new entrepreneurs join business groups, scan the employment section in the Sunday papers and see when new decision makers are being appointed, and call them up. And that they ask clients for referrals after every single sale, be it a product or a service.

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

Sometimes what makes you unique isn’t unique at all. All margarine is cholesterol-free, but Flora made this their point of difference, while others were talking about taste. So decide what your niche is and make your unique claim. Evaluating your target market and what they might need is a good place to start. What are their key stressors? Can you address that? What are the frustrations that people think they have to live with? Can you change that? Is it your hours of service? Is it a standard call-out fee? Is it a guarantee that is credible?

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

Pricing should reflect your value. Don’t assume that being the cheapest will get you more business – you might just look suspiciously cheap. Establish what your costs are and evaluate your competitors’ pricing, and take a view on what your market can stand. Then decide where you want to position your offering relative to these factors. You may want to be viewed as a luxury item, or you may want to be seen as accessible to all. You may need volumes for production economies of scale or you may prefer to limit volumes and earn a greater profit per item.

What was your most epic fail in the early days?

I was away and relied on a colleague to proofread an ad before it went to print. There was a typo in the headline. Bad enough for any client, but particularly so when the client is a university and it looks like they can’t spell! I discovered it too late to stop it going to print and there was nothing I could do. I phoned the client and told them before they found out elsewhere. Abject apologies and loads of humble-pie – and a relationship of trust and respect – got me past this.

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

Spending money they don’t yet have and focusing on an image of success instead of the work they produce.

How do you keep yourself motivated?

Get dressed and go to work. If you aren’t busy producing work for paying clients, you should be developing your marketing.

Do you have a mentor?

I never really had a mentor, but the single best piece of advice I was given was: When you don’t know where to start, just start. It’s funny how that questions that you need to ask and the research you need do become evident as you begin to structure your project.

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

I’m sure this varies by environment. In an area like advertising and graphic design, you are asking a client to trust you with his company image and reputation as well as his money, so it can take a lot longer to build a business than if you are selling low-price, low risk products, where if your product doesn’t live up to expectations they simply don’t have to re-order. You need to build a suitable time-frame into your plan.

What’s your life motto?

Life is too short to do a job you don’t love. 

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

* Apologise when you mess up. And you will! Don’t make excuses.

* Don’t work with clients you don’t respect.

* Don’t work with clients who don’t respect you.

* Know where the money is.

* Don’t be embarrassed to chase clients who owe you money – they’re the ones who should be embarrassed.

Get in touch with Ann Druce from Octarine Communications via: www.octarine.co.za, on LinkedIn and on Twitter: @AnnDruce

Emma Dunk: Networking is key to growth

Emma Dunk, EM-Between Communications

Emma Dunk from KwaZulu-Natal started EM-Between Communications, a public relations consultancy in June 2003 after deciding that a life back in the corporate world wasn’t as fulfilling as being a new mum. So she seized the opportunity and hasn’t looked back!

What were you doing before starting your business?

I worked in a corporate PR firm and then moved across to the advertising agency world. I worked at two different agencies as an account executive. The pressure and fast pace took a serious strain on my health and, as a result, I took longer to fall pregnant than I’d expected. Almost two years later my husband and I were blessed with a healthy baby boy (Ethan) and my whole world changed. I knew then that I didn’t want to go back to the corporate world and thought “If not now, when will I ever start my own business?” My passion always remained in PR, so the decision to move solely into this field was easy.

What kind of planning went into starting the venture?

There wasn’t too much “heavy” planning involved to be completely honest. I brainstormed a business name and settled on EM-Between Communications (for obvious reasons J), had my company name registered and then got a friend who was a graphic designer to design my logo.

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

I converted my study at home into a small office, bought a computer, printer, fax machine, new office furniture, office stationery etc. Paid my graphic designer friend a whopping R250 for my logo and had a basic website developed. Total set up costs where just over R10 000, which I borrowed from my folks and repaid them within my first year in business.

What was your big dream for this venture?

One of my USP’s (Unique Selling Propositions) was the fact that I was a small consultancy and was therefore able to provide my clients with personal attention – they wouldn’t be palmed off to a junior account executive (AE) who didn’t know how to handle their account. Another big attraction for clients was the fact that I would build relationships on their behalf with key media and get them free below-the-line coverage. Working with someone on a retainer basis is also appealing to clients, as they don’t have the pressure of having to employ a permanent person and set them up with an office, furniture, equipment etc. It’s a far more cost effective option with not as many strings attached!

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

I found networking key to the growth of my business. I joined up with a few networking groups and made sure I met with as many new people as possible – having one-on-one coffee appointments with people so that we could get to know each other and I’d have the opportunity to explain what I do. After all, people only do business with people they know, trust and respect. Ask for testimonials from existing clients and use them! I was pleasantly surprised at how willing my clients were to oblige. Testimonials are your biggest and most powerful form of advertising, especially in a service-related field!

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

Listen to what the market is saying: what problem are they experiencing and how can you help or fix it – make yourself the solution. In my case, I kept contact with a few of the clients from the advertising agency I had left and noticed a common thread when chatting with them – they all complained that they weren’t receiving the attention that they felt they deserved, as they had been pushed from junior AE to junior AE. They also wanted help in getting more free coverage and more below-the-line space in conjunction with their advertising as budgets were getting tighter and tighter.

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

I phoned around, Googled and spoke with other contacts in the industry to conduct research in terms of fee structures and billing options, and then positioned myself slap-bang in the middle – not too expensive and not cheap!

What was your most epic fail in the early days?

I had an idea of what I wanted my company logo to look like and got my graphic designer friend to do a few options of it for me to show to friends and family for their opinions. In a nutshell I wanted EM to be placed in the middle of the word communications – I figured this would be quite clever and would literally show EM in-between the word communications. Long story short… this was an epic fail and nobody else got it at all – if anything, they were all completely baffled! I quickly swallowed my pride and had my graphic designer buddy get stuck in to doing what she does best!

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

I think they often fall into the trap of saying yes to any and all business that comes their way instead of being selective with the types of clients they know they should be working with. Another mistake I think most new entrepreneurs make is under-valuing their time – or cutting their price just to get the work … big mistake!

How do you keep yourself motivated to continue?

I have a gratitude journal that I try to write in as often as I can … I always go back to it if I’m feeling low and page through it… within no time I am feeling less sorry for myself and ready to carry on moving forward!

Did you have a mentor?

I didn’t have one mentor in particular, but rather surrounded myself with a core group of other women in business who were always a phone call or email away with help, advice and reassurance!

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

I started off small with only one retainer client and slowly grew from there. It took me eight months before I managed to secure my second retainer client. Rather than shut shop if things aren’t picking up, I say tweak your offering.

Do you believe in internships for your business?

Yes, I have already had three students spend time with me – generally for a few days/week at a time. If readers want to intern, it’s a simple process: email me: emma@embetween.co.za  

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

* Ask for help! You will be amazed at how many people are willing to give you advice freely!

* Stick to your knitting: stick to what you are good at and outsource what you battle with.

* Get a good accountant if, like me, accounting isn’t your thing.

* Learn to say no when you need to… and be okay with it.

* Get networking!

Get in touch with Emma Dunk from EM-Between Communications via email: emma@embetween.co.za, visit: www.embetween.co.za, find her on Facebook, Twitter: @Embetween and on LinkedIn. 

Regine le Roux: Partnerships and accountability

Regine le Roux, Reputation Matters

For Regine le Roux, 2005 was a turning point in her career – she turned her apartment living room into an office and started Reputation Matters, one of South Africa’s first reputation management consultancies. Her business provides strategic business insight centred around the communication to stakeholders that has a positive impact on the overall reputation of an organisation.   

Have you always been entrepreneurial?

From a young age I was always thinking of ways to make extra pocket money and the entrepreneurial spirit has definitely grown more over time.

What were you doing before starting your business?

I did my MCOM in Communication Management, specialising in reputation management at the University of Pretoria. To get my foot in the “working world” door, I joined a management consulting firm as a research analyst. This was an interesting time and I learnt a lot, but statistics was not my career of choice; I wanted to get more involved with something a lot more creative, which was more in line with what I studied such as communication management, public relations (PR) or event management projects, so I joined a promotions agency. But, during my time at the agency, I realised that there weren’t many companies that managed reputations, so I grabbed the opportunity!

What kind of planning went into starting the venture?

A lot of people do their jobs extremely well and then think that they can start their own business with their expert skills. This is true to some extent and I also fell into this trap, but when starting a business you need to realise that you’re going to have to manage a business, not a job. I personally never wrote a formal business plan, but I had a very clear idea in my head of what I wanted the business to look like and how it should function. I worked with many lists of absolutely everything that I could think of that my ideal business needed, and then systematically started to tick things off. I think a business provides guidance to get you started, if you’ve no idea where to start, but I don’t think it is essential.

Where did your start up capital come from and what was your vision?

When I decided that Reputation Matters would be my future, I played open cards with my employer who was incredibly understanding and supportive, and allowed me to continue working on a half-day basis to supplement my income. I didn’t want my company to be seen as “just another PR agency”. Often, when people think of PR agencies, “gin and tonic girls” or “bunnies and balloons” spring to mind, so it was important for me to position the business as being so much more than just PR and event management.

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

Networking, networking, networking! It may not be everyone’s cup of tea, but you need to speak to people and let them know what you have to offer and, most importantly, make them want what you have to offer.

How does a new entrepreneur figure out what makes them unique from everyone else in their market and how do they leverage that difference?

You get to a point when you realise that you’re an expert in your specific field and you start wondering why you’re working for someone else when you could be working for yourself. From an entrepreneurial point of view, it’s important to make the distinction between realising that you’ll be running a business opposed to just doing the expert job that you do so well on a daily basis. Running your own business is totally different. Once you know this, your communication and marketing strategy will play a key role in getting messages out there that will leverage you in the market.

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

Firstly, find out the market value of similar products and services; this will provide a base to work from. For many years I used the “gut-feel” approach, which is definitely not recommended. I’ve never liked accounting, but an important lesson that I’ve learnt is to make sure that I understand my monthly financial statements, and to plan accordingly when it comes to expenses versus income.

What was your most epic fail in the early days?

I don’t like to see it as an “epic fail” per se, but there were many challenges thrown my way which taught me two very valuable lessons: SARS needs to be paid, full-stop. They are supportive of small businesses, but ultimately still need the monies owed to be paid, with interest. And beware of partnerships – it may seem great to have someone to share growing pains with when starting a business, but be very careful of who embarks on the voyage with you. Make sure that you have a formally drawn-up contract right from the start outlining everyone’s responsibilities, shares, contributions etc. It doesn’t matter how much you trust each other, there are no guarantees, and you don’t want to be caught out.

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

I think the first three years are definitely some of the most challenging you’ll face. If business isn’t picking up, it may also be worth investing in a business coach who is able to provide insight and be a sounding board to see how best an offering can be tweaked.

Is it ever alright to give up on a dream?

If, for whatever reason, your business is not working out, don’t see it as giving up, perhaps it just means that you’re not ready for that specific area in your life yet. Gain some more experience, learn a few more lessons and then re-try later. Don’t give up on something that you believe in.

What’s your life motto?

I have two: “Plan for the future, but live and experience the now, as it’s all we have”, and “Always tell the truth; you can’t remember a lie”.

Do you believe in internships for your business?

Yes, internship is great – it gives the candidate an opportunity to experience the world of communication management so they can see whether it’s a profession that they’d like to pursue further or not. If someone would like to intern at Reputation Mattes, they can send me an email motivating why they should be considered to: info@reputationmatters.co.za.

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

* Always pay SARS on time!

* Be very careful who you go into partnership with.

* Quality – and not the quantity – of employees is very important.

* Accountants are vital; select them with care.

* Invest in experts, e.g. labour management firms have years of HR knowledge, same goes for accountants; leverage on this expertise.

Get in touch with Regine le Roux from Reputation Matters via email: regine@reputationmatters.co.za, visit: http://www.reputationmatters.co.za, on Facebook, on Twitter: @reputationiskey and on LinkedIn.