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.

Jules Newton: No need to be unique; be the best!

Jules Newton, Avocado Vision

The CEO of Avocado Vision, Jules Newton, found herself in a tricky spot: managing the training of a team in a corporate environment and going through a divorce. Her then husband was working on the same team and it became a case of get another job or go into the self-employment space. That was in 1996 and Newton’s since been running a successful company that creates opportunities for the people of South Africa, to empower themselves through small business-creation and related skills.

What kind of planning went into starting the venture?

I have never written a business plan – it has grown in my head over time, as my capability and business acumen has grown. I think business plans may be useful when one is moving into a funding or venture capital stage, but I’ve never had any use for one.

What was your start in business?

I quit my job, signed my bond and my car finance deal, got divorced and started my company all in the same month. I didn’t have a penny. I did have a 3-year old child! All I had was a customer and a telephone. I worked from home and sold my heart out. Failure meant my child wouldn’t eat, so it wasn’t an option for me!

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

Building relationships with prospective customers and creating a proposition that adds value to those people. Making sure what you charge is always just a little less than the value you create for them. And talk to lots of prospective customers.

How does a new entrepreneur figure out what makes them unique?

It’s about understanding the industry you occupy very, very well.  The more you know about your industry, the more you’ll be able to understand how you can differentiate yourself. But people can be successful entrepreneurs even if they’re not unique. Doing a great job, pricing well, and being in your customers face when they need what you’re selling can be enough.

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

Market research and talking to clients are important factors. Beware underpricing, though. There is a psychological “value perception” factor that comes in. If you try to significantly underprice your competitors, clients may perceive you to be “cheap and nasty”, or suspect you may eventually go out of business, by naively pricing your product in an unsustainable way.

What was your most epic fail in the early days?

I used VAT and tax money to pay salaries when I ran out of cash. Then I even ran out of cash to pay salaries again. I had made a very serious pricing mistake, and was running my company into insolvency without really seeing it. Changing my pricing strategy and focussing on getting more clients saved the day. Working closely with my team during that time saved all our jobs.

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

Spending cash in the business on personal luxuries, and expecting growth to happen much more quickly than it does, and risking costs in anticipation of that growth.

Did you have a mentor?

I have had many mentors over the years. All of them helped me reframe my picture of my business and gave me practical insights. And courage to carry on!

Is it ever alright to give up on a dream? 

Many people do. I haven’t. It’s nearly killed me, but I’m still in the game. I have no idea whether it’s alright or not? I suppose we all have a limit as to what costs and sacrifices we are prepared to risk and endure.

What’s your life motto? 

“Get up again.”

Which three character traits do all entrepreneurs possess?

Resilience. Vision. Conviction.

In an entrepreneurial arm-wrestle, who would you back: Steve Jobs or Sir Richard Branson?

Richard Branson. I believe Steve was a brilliant man, but I wonder how long Apple will last in its specialness now that he’s gone? I think he kept Apple going through sheer force of his will. Richard seems to be able to build powerful people around him and then let go. Virgin will survive Richard, I think.

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

* There are very few shortcuts. You won’t get rich fast. Starting your business is a long and risky road, and you have to be able to stay the distance.

* Apply for a credit card and DON’T use it until you have a cashflow issue and you need to pay salaries before you get paid by your client.  Pay it all back as soon as the client deposits.

* Don’t employ staff until you absolutely need them. You can save costs and do a lot yourself before you saddle yourself with overheads.

* Get a business mentor: someone who has walked the same road you are starting on.

* Read Allon Raiz’s book: What To Do When You Want To Give Up. It has a lot of simple and practical steps to give you a road map around “what’s next”.

Get in touch with Jules Newton from Avocado Vision via email: jules.newton@avovision.co.za, visit: http://www.avovision.co.za or follow her on Twitter: @Avojules.