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.

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.

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!