Michael Holenstein: Success may mean re-invention

Michael Holenstein,
De Hoek Country House

With years of experience in the food and hospitality industry, it was hardly a surprise when, in 1994, Michael Holenstein was invited to join De Hoek Country House in Magaliesburg with seven staff and seven rooms. Today, thanks to loads of hard work, tenacity and a great reputation, De Hoek has grown to be named one of the best country houses in the world.

Have you always been entrepreneurial?

I always wanted to have my own business and work for myself

What were you doing before starting your business?

Prior to starting at De Hoek, I owned my own Italian restaurant and before that, I owned a catering company with two partners.

What kind of planning went into starting the venture?

In the beginning it was really hit and miss, as my very supportive business partner, Johann Redelinghuys, and I had no real experience in the hotel industry, although I had trained as a chef in Switzerland and cut my teeth in the kitchen. My wife and I had the responsibility of running the business; our goal was to become the best country house hotel in South Africa. We had a very informal plan and just worked very hard and long hours to build up a reputation for excellent service, comfortable accommodation and, obviously, very good food.

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

As you can well imagine, starting a hotel – albeit a small one – is a huge capital investment. I was fortunate to have a partner who is very supportive of our ideas. We started with seven bedrooms – that was it. We’re now up to 20 bedrooms, four conference rooms, a restaurant and beautiful extensive gardens.

What was your big dream for this venture?

Our big dream was to turn De Hoek Country House into the best country hotel in South Africa. We were awarded the accolade for Best Country House in the World, in both 2007 and 2008, from the World Luxury Hotel Awards.

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

Be sure of what you have to sell to the customer, stay true to your offerings and rather under-sell and over-deliver than over-sell and under-deliver.

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

A start would be to do a SWOT analysis: identify your strengths, weaknesses, opportunities and threats, and then focus on key issues.

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

By researching the marketplace. What do my competitors charge? Can I charge more if I provide a better product/service?

What was your most epic fail in the early days?

We had a coal AGA stove in the kitchen – try doing a function for 60 or 70 with one oven and one hot plate; very challenging! We upgraded the kitchen with good industrial equipment.

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

I think you must stay focused and keep working towards your goals; and watch your cashflow carefully.

How do you keep yourself motivated?

Being in the hospitality industry, I have become accustomed to working hard, missing out on weekends with friends and family, and staying focused on the goal and dream.

Did you have a mentor?

My mentor was my father. He encouraged me to work hard and to keep going even if the going gets tough. My business partner is also someone I look up to for guidance and advice.

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

It probably takes a good five years to reach a certain stability. We’ve been going for 18 years. Business is never without its challenges. We continuously have to think how we can “sweat the assets”, re-focus, re-strategise and keep going

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

Don’t give up the dream; you might have to start another business or re-focus, but never give up. Richard Nixon said: “Defeat does not finish a man – quitting does. A man is not finished when is defeated. He is finished when he quits.”

Do you believe in internships for your business?

I definitely do. I think it is a very good way of addressing our unemployment problems in South Africa. The Swiss have a very good apprenticeship programme, a Private Public partnership that has stood them in good stead for about a century. A similar programme should be instituted in South Africa, companies should be accredited to train people for a certain number of years and, once the “apprentice” has completed their time under the watchful eye of accredited mentors, they will be qualified in their chosen field and employable.

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

* Work smarter.

* Take some time off to re-energise

* Keep staff motivated.

* Be prepared to re-invent yourself.

* Stay in touch with technology.

To get in touch with Michael Holenstein from De Hoek Country House, email: mholenstein@dehoek.com, visit: www.dehoek.com or find him on LinkedIn.

Ian & Lise Manley: Reputation brings clients

Ian and Lise Manley, Manley Communications

Ian Hamilton Manley and his wife Lise both have an established background in the hospitality industry. In 2000, when an opportunity presented itself, they each took a month’s salary cheque as start-up capital and set up Cape-based Manley Communications from the alcove in their kitchen. Their aim: to be the leading boutique agency representing the best brands in the tourism and hospitality business.

Have you always been entrepreneurial?

I wasn’t brought up in an entrepreneurial home so it’s more a case of learning from experience in business over time.

What were you doing before starting your business?

I worked in management at a number of hotels in Cape Town. My wife Lise was also employed in the hotel industry but was approached in 1999 to head up a new hospitality division at a well-known PR agency. As a newly married couple, we decided that it was a good opportunity to leave the “industry” but still be involved in it and also the luxury of one of us enjoying more stable office hours was attractive. After a year, we realised that there was an opportunity for us to start our own agency and niche ourselves in hospitality representation. Lise took the step first by launching the agency and I followed five months later when we could see stability and growth in our portfolio of clients.

What kind of planning went into starting the venture?

We had no plan which was quite scary and naïve, but perhaps those factors worked in our favour as we launched with a fresh approach to the services that we could offer. We literally started our business in an alcove of our kitchen with a sign above our one computer stating, “THERE IS NO PLAN B”.

What was your start up capital?

Offering brand representation required little initial start up funding. We were fortunate to start the business with key hotel accounts from day one and a month’s salary check in both of our back pockets.

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

In our industry, your good name is everything. All our new business has been achieved via word of mouth and networking. We’ve never pitched for business. If you’re at the top of your game, the right people will get to hear about you.

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

It often comes down to service delivery, which will set you apart from the rest. If you’re quick and offer a quality service, you’ll find yourself soon pipping your competitors at the post, especially if they’ve slackened over time.

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

You’ll need to do your homework on what your competitors are charging and then offer a lesser price with more service delivery. As time goes by, you can then increase your charging structure to match your competitors. Your clients will stay with you if they see value in your offering.

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

Assuming that a new entrepreneur finds quick success, it’s key to stop your ego taking over and becoming too self-assured. Few clients enjoy a cock-sure dude in a Porsche. And don’t grow too fast. Keep on taking stock and re-grouping before taking the next big step in growing your empire.

How do you keep yourself motivated to continue?

There’s nothing like the wolves at the door to keep you motivated! There simply wasn’t – and still isn’t – a Plan B for us, which has kept us energised through thick and thin.

Did you have a mentor?

We didn’t have a mentor as such, but Stewart Banner who is based at the Vineyard Hotel & Spa was always there to give us sage advice and a psychological boost. A mentor is definitely the ideal scenario as there’s nothing more valuable than tapping into experience.

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

We were fortunate in that our business launched quickly. I would say that after three months from launch, one should take stock and see what messaging needs to be refined. By six months, you should be on a roll and, if not, drastic changes need to be made or move on to a new venture.

Is it ever alright to give up on a dream?

I’m a realist, so if the dream is not working out, go seek a new one.

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

* Be selective of the clients/business that you want to align with. It takes a lot of time and energy to change the direction of your business if you haven’t got the formula right from the beginning.

* Don’t grow too fast!

* Keep your finger on the pulse at all times. Don’t employ staff to take over key strategic issues unless you’re certain of their ability.

* Over time, we’ve found that it’s better to outsource key work to freelance professionals than get bogged down with permanent staff who can land up being a liability and “dead wood” to the business.

*Always stay in tune with your clients needs and be at least one step ahead of the game.

* “He who controls the pace, controls the victory!”

To contact Ian and Lise Manley from Manley Communications, email: ian@publicity.co.za, visit: www.manley-communications.com, find him on Facebook, on Twitter: @manleycom and on LinkedIn.

Johan Jansen van Vuuren: The effect of good experiences

Johan Jansen van Vuuren,
South of Africa

A long history of entrepreneurship has given Johan Jansen van Vuuren a solid foundation for his business South of Africa – a portfolio of eight fine properties – which launched in 1990. With hotels in Limpopo and the Western Cape, the South of Africa brand of hospitality is big on family values and memorable experiences.

Have you always been entrepreneurial?

I’ve been entrepreneurial since my childhood days. It started with me breeding budgies and rabbits, and then buying sweets wholesale and selling them at school. 

What were you doing before starting your business?

I was a flight attendant with South African Airways (SAA). This exposed me to a variety of opportunities, options and dreams. Living out of hotels and experiencing 5-star luxuries pushed me to pursue my dreams even further, as I knew that I wanted to offer guests the same experiences. My entrepreneurial spirit helped me to reach this goal. I built a small business while flying and eventually had to stop flying so that I could give my business more attention and to realise my dream of owning my first hotel.

What kind of planning went into starting the venture?

Planning is essential for any business’ success. The biggest part of planning happens in your head. You dream it. Having a vivid picture of what you want to achieve and a basic step-by-step plan is what I had, not a business plan on paper – it was always in my head – if you can see it, you can achieve it.

What was your start up capital?

I received a food allowance from the airline when we stayed over in cities around the world. Instead of spending all of this on gregarious meals and luxuries, I lived on cheap takeaways like Big Macs and cafe food. I used the remainder of my allowance to purchase items for clients and charged a small commission. Eventually, I ended up importing items from the East.

What was your big dream for this venture?

South of Africa is a dynamic portfolio of fine hospitality properties, with high ethics, delivering outstanding quality experiences and exceptional service in a unique, creative environment.

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

In my experience, attending trade shows and being a member of local business chambers and tourism associations was the best way to find leads. Selling your product as a service to your local community is where it all starts. Through word of mouth, referrals build relationships and result in profit in the long run.

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

You have to constantly measure yourself against your opposition, but be creative and individual. You must maintain the creative edge and do not reveal your trade secrets up-front but hint at the extraordinary service that awaits guests. 

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

It’s important to calculate your cost of service or product. Thereafter you need to do a comparative analysis in your immediate area. You also need to see what other services and products that you compare yourself with cost. Combining and averaging these out is what you base your prices on.

What was your most epic fail in the early days?

I was declared insolvent at the age of 24. My father had to sign surety, so he was liable for all my debts. This forced me to get up and start afresh. I had to earn an income, repay the debt and I had to get back on my feet. I focussed on the results I wanted to achieve and worked very hard to get there again.

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

Firstly, believing that you will get rich quickly and make lots of money. The biggest failures are due to the shortage of working capital – you need to have capital for at least six to 12 months. 

How do you keep yourself motivated?

Through prayer and positive affirmation, and believing in myself and my dreams, I stay focussed.  You are in charge of the end results, and you – and only you – can make the difference.

Did you have a mentor?

Yes, I had quite a few that played valuable roles in my life. One important piece of advice was that you can never go wrong with investing in property. My mother’s advice was to look after the pennies and the pounds will look after themselves; this is so true.

Which three character traits do all entrepreneurs possess?

I think that the most important trait that is clearly visible is tenacity. This goes hand-in-hand with patience and a strong desire to succeed in your dream. Through passionate and intensive hard work, your common sense and goal-setting will result in success.

Do you believe in internships for your business?

It is imperative to pass down knowledge and share your skills with others. Through this process of training, you not only enrich others’ lives, but the business also benefits from this. We take on trainees and they are tutored in all aspects of the business. We have also introduced an in house trainer. We’re currently busy with preparations to open our own training academy to invest not only in the future of the country, but also improve others’ lives.

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

* Introduce proper financial accounting from day one. 

* Have control and take control of all operations on all levels. 

* Despite temptations and endless possibilities, do not grow and expand too quickly. 

* Don’t lose focus. 

* Complete tasks and only once the dream is reached, do you continue to the next project. Do not forget about completed projects – keep them alive!

Get in touch with Johan Jansen van Vuuren via email: johan@southofafrica.co.za, visit: www.southofafrica.co.za, check out his Facebook page or on Twitter: @southofafrica01.