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. 

Deon Kruger: Passion breeds perseverance

Deon Kruger, human.kind advertising

Deon Kruger knows entrepreneurship – and the lessons that come with it – incredibly well. He’s opened, (and closed) a number of ventures in his career. His most recent business, human.kind advertising, launched in 2003 from the back of his bakkie (and later his current ops director’s lounge), is a socially and environmentally conscious creative agency. Now, nine years on, the agency is a recognised force in the industry. 

Have you always been entrepreneurial?

I’ve always liked to be my own boss – as the youngest of four brothers, I learnt from an early age to fend for myself. Both my parents worked so I was left to entertain myself. I think this may have helped me become an independent thinker.

What were you doing before starting your business?

I worked in our family business as national key accounts manager in the FMCG industry. The business was sold to a large organisation and, after being employed by the new owners, I soon realised that the environment would be the death of me. Desperation is often the best incentive to step out and take the risk – you have nothing to lose anyway.

What kind of planning went into starting the venture?

When starting any new busines today you have to have done your homework well. There are many resources available to any new entrepreneur who has a good idea. The flipside is also true: desperation to make it work can also drive you to succeed. What you need is lots of guts, determination and to immerse yourself completely in the business for the first couple of years until it can manage without you. Most entrepreneurs forget that at some stage they need to be able to hand over to competent staff to manage the daily operations. I don’t think an elaborate business plan is always necessary when you have a very clear idea of what needs to happen, especially when you don’t need to raise money from a financial institute to start your business.

What was your big dream for this venture?

This was going to be my last advertising agency, which meant we were going to have to do everything better than before – I’d just lost my previous agency of seven years; I let success go to my head, thought we were invincible, and we made a very weak empowerment deal that ultimately sank our business. This time around, I wanted to create a highly successful agency that delivered exceptional creative solutions to clients without compromising on integrity and quality of life.

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

This still remains my biggest challenge as most of our business is gerenated through word of mouth and referrals.

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

They give up too quickly when things don’t go exactly as they have dreamt they would, and they drain cash from the company too soon; usually when they need the cashflow most.

How do you keep yourself motivated to continue?

Your passion and belief in your vision for the business keeps you going. It’s always good to find yourself a mentor that will keep you motivated and remind you why you initially started the business; they will keep you accountable too.

Is it ever alright to give up on a dream?

Yes, if the dream can’t be turned into reality, give it up.

What’s your life motto?

Die happy and content.

Which three character traits do all entrepreneurs possess?

They’re constantly restless, they get bored quickly and have a short concentration span, and are never satisfied.

Do you believe in internships for your business?

We often have interns and ecourage it. It’s great exposure for youngsters hoping to break into the industry and we often employ them.

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

* Never take your eyes off the finances of the business.

* Stay ahead of your competitors and continuously improve your offering.

* Make sure you employ the best people you can afford.

* Find out what consumers/clients want.

* Spend lots of time training, encouraging and mentoring your staff.

Get in touch with Deon Kruger from human.kind advertising via email: deon@hksa.co.za, visit: www.humankindadvertising.co.za, find him on Facebook and on Twitter: @kindhuman1.

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!

Styli Charalambous: Selling the idea

Styli Charalambous, Daily Maverick

In October 2009, Styli Charalambous and his team of seven launched the Daily Maverick; a digital “newspaper” that provides South Africans with daily news, insights, analysis and opinions. Charalambous’ abandoned a career in investment banking to embrace SA’s growing digital media industry – and it’s paying off!

Have you always been entrepreneurial?
Yes, I spent most of my misguided holidays working for my dad, so I guess I never really had a choice but to get involved in ventures outside of the corporate world.

What were you doing before starting your business?
I trained as a chartered accountant at Deloitte in Johannesburg and then spent about four years in London, wandering the halls of investment banks. But my passion for South Africa and getting involved in start-ups brought me back. Thankfully!

What was your big dream for this venture?
It was really my editor, Branko Brkic’s dream that I got caught up in, but it’s something we’re both passionate about: changing the media landscape in South Africa and influencing the influencers with smart commentary and debate.

How does an entrepreneur find business leads and profit from them?
Networking. The best leads come from introductions via people you know and trust. A lot of time you get unsolicited rubbish but, being in the media, it’s our job to know as many people as possible, which helps. I read a lot, and am lucky enough to have close friends who are very enterprising and broad thinking, so I bounce a lot of ideas off them and my editor, and I lean on each one for advice and guidance.

How do you figure out what makes you unique from everyone else in the market and how do you leverage that difference?
I don’t think you necessarily have to be unique in every respect. Sometimes, just doing something better, faster, more reliably than anyone else is good enough. I sometimes joke with my mates that in Africa, service is a unique selling point. Budding entrepreneurs think they need to reinvent the wheel to make it happen, but I can guarantee you that in SA, it's harder than you think. I’m pretty sure that if Mark Zuckerberg had started Facebook in South Africa, it would have been tossed on the scrapheap ages ago, or would have had to leave the country to make it work. South Africa is a tough, harsh environment for dreamers who live on the cutting edge, especially when it comes to technology. We’re a conservative nation with poor Internet penetration, so your lead time to meaningful traction is longer than it would be in developed countries, and even some African countries.

How did you come up with your pricing model?
It depends on the product/service and the industry you operate in. In media, and digital media especially, we have this conundrum where people expect everything in a digital format to be free, but it costs us a huge amount to produce. So pricing a digital media offering is tricky and your product has to be of the highest quality if you expect people to pay for it.

What was your most epic fail in the early days and how did you solve it?
Not understanding how the infant digital media industry operates, how small it is compared to traditional media and not dedicating enough resources to sales and marketing.

What are the two biggest/most common mistakes that new entrepreneurs make in their first three years of business?
I’ve heard many people talk about this massive market (millions of people) and how they only need to capture “just 10%” of that to make gazilllions. Well, I have news, 10% is a massive number and very difficult and expensive to capture. Don’t kid yourself with your projections. The other thing that entrepreneurs fail to do is managing cash flow adequately; there's nothing scarier than having a payroll to sort out, two days to go and a bare bank account.

How do you keep yourself motivated?
Passion. Without passion for what you do, you will break down and succumb to the pressure of being an entrepreneur. The other extreme is irrational passion, when an entrepreneur is flogging a dead horse or doesn’t exit because he is too emotionally attached to his venture. Sometimes you need to take a step back and make some hard, objective decisions.

How long does it take for a venture to get off the ground, in your experience?
It depends on the scale of the venture, the bigger the scale the longer it will take. But if you’re going to leave the comfort of corporate, make sure it’s worth your while. As a rule of thumb, I’d say don’t expect any miracles in the first three years. It’s ok to abandon your dream, but only if you’ve given as much as you possibly could. Sometimes you can be too early (bleeding edge) especially in South Africa, where the timing just isn’t right and you end up hurting yourself and others. It’s the most difficult call to make when you get to that position because you’ve invested so much time and energy into it. You will have learnt so much and grown so much, which is why round two or three is usually where most entrepreneurs make it.

If you could give yourself any advice back then, what are your top 5 wisdoms?
* This is going to be the hardest thing you have ever done, but the most rewarding!
* You will need more money than you think to become profitable.
* You will need more time than you think to become profitable.
* Sales! Sales! Sales! Sales! Everything else is just admin.
* No-one cares about your business as much as you do, so make sure you do everything you can to make things happen.

Get hold of Styli Charalambous at the Daily Maverick via email: styli@thedailymaverick.co.za or visit: http://www.dailymaverick.co.za, check out his LinkedIn profile: Styli Charalambous or follow him on Twitter: @stylichara.