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FROM THE EDITOR
ELON MUSK: SA’s Greatest Entrepreneur
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n an age where business, politics and almost every other aspect of society has become filled with sensationalism and gain based on a sense of entitlement rather than the signs of promise, the need for icons that pursue solutions to world issues through entrepreneurship is greater than ever. South Africa, much like the rest of the world has been overrun with “Pioneers” of the great entitlement race, with no clear reason as to why they’re entitled to the six-figure income, other than that they’ve told us they are. Iconic figures like Prof. Jakes Gerwel, Arthur Chaskalson, Burry Stander and Elon Musk seem to be recent exceptions becoming icons transcendent of their fields. Musk could possibly be the greatest entrepreneur South Africa, and the world for that matter, has seen in the 21st century. Multiple successful ventures Musk is the man behind abundantly successful businesses like PayPal, SpaceX, Solarcity and Tesla Motors. While he is worth an estimated $2.4 billion, he is still not the top South African earner, but it does display the drive and dedication of a true icon, as his personal wealth is as a result of his involvement with not a single business venture like most of his peers, but rather through successfully launching multiple ventures and remaking himself several times in the process. The deciding factor in crowning Musk the greatest entrepreneur over the list of SA’s other finest business minds like Mark Shuttleworth, Raymond Ackerman, Cyril Ramaphosa and company, is a simple one: Not only has Musk’s ventures been financially successful, they have also changed technological development and solved social issues of varying natures. Tesla and SpaceX, two of the businesses with which Musk is currently involved, particularly address social and world challenges – transportation and space exploration. Musk’s ventures have also challenged the status quo by pushing advanced technological services usually provided by government funded agencies. South African born and raised Born and raised in Pretoria, South Africa, the son of Errol and Maye Musk, Elon
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bought his first computer at the age of 10 and taught himself how to program, by the age of 12 he sold his first commercial software for about R4 400, a space game called Blastar. Musk matriculated at Pretoria Boys High School. He left home in 1988 at the age of 17, without his parents’ support and in part due to the prospect of compulsory Military service: “I don’t have an issue with serving in the military per se, but serving in the South African army suppressing black people just didn’t seem like a really good way to spend time” Musk would later say. American education He spent a few years living in Canada before receiving a full scholarship to complete undergraduate studies in both physics and business. Musk graduated with business degree in Economics from the famed Wharton Business School at Ivy League college, the University of Pennsylvania. Following graduation he stayed on for another year to secure a second bachelor’s degree in physics which focused on advanced storage systems. Musk then relocated to California to enroll in a graduate degree program at Stanford. He however dropped out after two days to pursue his first major business venture. Inspired Elon was inspired by famed American engineer and innovator, Nikola Tesla (1856 – 1943). Tesla is most well known for his contributions to developing alternating current (AC) electricity; he however also patented numerous technologies which seemed miraculous at the time. In more recent times Tesla has become somewhat of an icon in engineering and design communities with his many inventions, showman-like style with which he would showcase his creations and his mad scientist demeanor. With Musk’s dual business and engineering expertise it is unsurprising that he would draw inspiration from Tesla – a man frequently described as the Steve Jobs of his time. After college Musk had already established what he wanted to do with his life. He said, “(Addressing) important problems that would most affect the future of humanity,” would be what he spent his life doing. Musk
seemed clear on the areas in which he could achieve this; he said, “One was the internet, one was clean energy, and one was space” Musk becomes the icon Since then Musk has gone from strengthto-strength. He is known as an engineer and entrepreneur who builds and operates companies to solve environmental, social and economic challenges. He co-founded PayPal and currently drives strategy, development and design at two companies he created, Space Exploration Technologies (SpaceX) and Tesla Motors, and oversees a third company, SolarCity, which he cofounded. He led SpaceX’s efforts to be the first private company to successfully launch and dock a spacecraft with the international space station. Musk’s involvement with PayPal Musk’s early innovation and success in Internet technology paved the way for him to focus on his lifelong passion for science, engineering and space. In March 1999, he co-founded X.com, which pioneered online point-of-sale functionality for purchases and quickly became one of the leading transaction facilitating services available online. In 2000, X.com bought Confinity to form PayPal. PayPal soon became the leading global payment transfer provider and is used by virtually 100% of entrepreneurs abroad to allow money to securely be transferred at the click of a button. Musk served as PayPal’s chairman and chief product officer, and was its largest shareholder until eBay purchased PayPal in 2002 for $1.5 billion. Musk’s involvement with SpaceX Musk is CEO and Chief Designer of SpaceX, the company he founded in 2002 to build the world’s most advanced rockets and spacecraft with the ultimate goal of extending human life to other planets. He designed Falcon 1, the first privately developed liquid fuel rocket to reach Earth orbit, as well as the Falcon 9 rocket and Dragon spacecraft. It is worth noting that Musk’s endeavors with SpaceX have not all been successful as a number of launches and scheduled plans initially failed. Musk however fully committed to the business and was able to achieve major success when SpaceX
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became the first commercial outfit to successfully launch a rocket into space and their Falcon 9 rocket recently delivered cargo to the International Space Station in the first of several flights they will conduct as a contractor for NASA. Musk’s focus on space exploration and his contributions to the field have won him many accolades. The world governing body for aerospace records, Fédération Aéronautique Internationale, presented Musk with its Gold Space Medal for designing the first privately developed rocket to reach orbit. The Kitty Hawk Foundation recognized Musk as a Living Legend in Aviation for creating the Falcon 9 rocket and Dragon spacecraft, and Aviation Week named him its 2008 Laureate for his significant global achievements in the space industry. Musk’s involvement with Tesla Motors As CEO/head of product design at Tesla Motors, Musk oversees strategy for the all-electric American car company he co-founded to design, engineer and manufacture affordable electric vehicles for mainstream consumers. He currently guides development of the Model S, the world’s first premium electric sedan, Model X and a SUV/minivan. He also spearheaded design of the original Tesla Roadster, the first battery electric sports car. The electric cars produced by Tesla Motors are built entirely on battery and electrical power features from the ground up. In addition the cars have a very low centre of gravity, ensuring maximum handling capability. The car is also furnished with a 19 inch screen which serves as control panel for the car’s many features. Musk’s Involvement with SolarCity As chairman of SolarCity, Musk provides strategic direction for the company he conceived to help combat global warming and minimize air pollution. SolarCity is a national leader in clean energy services and leads installations of solar power in residences in the US. In addition to Musk’s business’ focus on social solutions, he is also the chairman of the Musk Foundation, which focuses on aerospace, clean energy, science education and pediatric health. The Foundation has donated solar power projects to Soma, Japan – a city devastated by both earthquake and tsunami – and to a hurricane response center in coastal Alabama operated by victims of Hurricane Katrina and the Gulf Oil Spill. Finally as if to affirm Elon Musk’s status as one of the greatest entrepreneur’s and inventor’s alive today, he was recently invited to give a presentation at Oxford University’s Martin School on the future of energy and transportation. There really is no greater authority on the topic. Elon Musk’s recent presentation at Oxford University on The Future of Energy and Transportation can be viewed at http://www.bizassist.co.za/news.asp?Cat=Sme&Ref=3249.
NEWS AND TECH REVIEWS Payroll in the cloud – making life easier for SMEs Five years since its inception, the cloud is making life easier for start-up businesses and SMEs according to Sandra Swanepoel. Payroll legislation is often a challenge for small businesses, especially during tax season. Sandra Swanepoel, director of Softline VIP, says payroll software’s move into the cloud has enabled companies to access a payroll system even if they employ two people. Ease of use, adds Swanepoel, is definitely one of the drivers for a small business when considering a payroll application. “We offer SMEs a “try before they buy” option for the first month. This gives them the opportunity to compare the time they save when using an online payroll application compared to manual calculations.” “Companies can now also load leave transactions and link sick leave notes and applications to employee records. This will save them money and time as well as reduce the immense stress caused by managing manual leave systems.” For more information visit www.vipliquidpayroll.co.za Tel: 086 155 4433
QuickBooks 2013 Edition now available The 2013 QuickBooks range have added two new products to QuickBooks; Accountant and Enterprise Solutions.
QuickBooks Accountant - has specific tools and functions to save the accountant time and money by allowing the practice to spend more time working on billable hours. QuickBooks Enterprise Solutions - specifically designed for growing and large, established companies to manage their increasingly complex business finances. Two effective plug-ins for Premier and Pro and payroll software that seamlessly matches the accounting software packages are also on offer, namely: ACCTivate! - A comprehensive inventory management and control system that, although developed for small to mid-sized businesses, is used by some of the world’s largest companies eZ - One click to download a company’s bank statement into QuickBooks. Quick Payroll Startup -Meets the needs of dynamic South African SMEs. Quick Payroll Lite - Can be used to manage every aspect of your small to medium sized business’s payroll. Quick Payroll - A comprehensive software solution that manages all aspects regarding payroll. For more information visit http:// www.quickbooks.co.za Tel: 086 172 6657
IDC funding for SME’S
The IDC is investing R10-billion over the next five years which offers financial support to South African SME’S. Continued on page 6
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This includes funding for buildings, equipment and working capital. Businesses should also operate in sectors supported by the IDC. These include: • green industries • agricultural value chain • manufacturing • mining and mining technologies • media and motion pictures • The knowledge economy Criteria set out for financial assistance includes: • Start-up businesses • Existing businesses • For the duration of the funding period, businesses whose maximum cost per job does not exceed R500 000 relative to the total funding required; The Gro scheme works by funding businesses at prime less 3% for loans and the Real After Tax Internal Rate of Return of 5% for equity financing. A minimum of R1-million with a maximum of R1billion per project will be allowed. The first draw must be within a year of approval for funding. Office 2817, 28 Floor ABSA Centre, 2 Riebeeck Street, Cape Town Tel: 021 421 4794 IDC Head Office, Sandton Tel: 011 269 3000
Apple revamps their line at the San Jose Product launch Apple recently unveiled four new additions to its range at the San Jose product launch in California.
• The iPad Mini The iPad mini has comes with a 7.2 inch screen, A5 processor, advanced WiFi, 1080p hd video recording and 10 hour battery life. • Fourth Generation iPad The fourth generation iPad comes with Lightning (Apple’s ultraslim connector), and is packed with an A6X processor, and has improved LTE support around the world. • 13” Retina MacBook Pro The 13-inch MacBook Pro now has a Retina brother. Just like the 15-inch model, the Retina and non-Retina versions will co-exist for the time being. • New iMac The new iMac is thinner on the edge, but the most important addition is the Fusion Drive, which is Apple’s branding for a HDD/SDD hybrid. Website: www.apple.com OR www.digicape.co.za
Free Staffing/HR solutions for SMEs
In the modern SME environment, the major hindrance most companies face is that of the administrative side of running the business, with most SME’s running on a smaller amount of staff as compared to a decade ago. Developed by Talenger Holdings in 2008, People Plus is a cloud-based specifically aimed at meeting the needs of SME’s. It handles the HR/Payroll for businesses, thereby taking care of a time consuming but necessary aspect of the business world. The soft ware comes in two packages:
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• Freemium and Premium. The freemium package comes with all the relevant services ranging from Disciplinary Procedures to the ability to print a payslip. As for the premium package, CEO of PeoplePlus and Talenger Holdings, Rodney De Villiers puts it simply, “only pay for further Premium modules, such as those that give you efficiency, communications, risk reductions or put cash in your pocket.” Website: www.peopleplus.co.za Tel: 011 867 3968
IDC and IWF funding available for female business partners In a bid to empower and evolve the role of women in the business district, the IDC’S Women Entrepreneurial Fund (WEF) and the dti’s Isivande Women Fund (IWF) have joined together to fund businesses that are owned or partially owned by women. Both Funds have select criteria in order to qualify for a part of the IDC’s R300-million and dti’s R45-million fund allocation. Women Entrepreneurial Fund criteria: • Requires funding of minimum R1-million. • Only IDC priority sectors. • Existing/start-up business. • 50% owned by women (25% to 50% with revised terms). Isivande Women Fund criteria: • Requires funding of R30 000 to R2-million. • All sectors of the economy, excluding sin industries/primary agriculture. • Early stage, expansion or growth. • Minimum 6 months in operation. • 50% owned by women (30% to 50% with revised terms). Visit www.idc.co.za Tel: 011 269 3000
SMEs to reap the benefits of Video Conferencing Small business owners can attest to the fact that business travel can be both an extremely expensive and tiresome necessity, particularly if the company is owner-driven and absences can result in decision-making delays. Video conferencing has been available for a number of years and the reality is that with hosted and mobile solutions, prices are as low as R175 per month for unlimited conferencing time, while some SMEs have opted to use free options, such as Skype, which is not ideal. This type of software doesn’t give users the functionality to connect into the formal video conferencing environment or virtual boardrooms, and they are not secure. It is best that companies opt for an alternative that offers a secure, locally hosted, encrypted platform. Video conferences are every bit as interactive as live meetings, with tools enabling employees to work on a joint presentation or document from different locations by sharing files and screens. Tips when using video conferencing as a mainline communication tool: • Enquire about hosted solutions before investing in traditional boardroom VC equipment. Not only are the costs of the latter quite high, it also limits users to a single location. • Ensure that the product is user friendly. • Take a moment to do the maths. Most companies are shocked when they find out how much they can save through effective video conferencing. • Don’t let anyone tell you that bandwidth is an issue – with the right provider, it won’t be. As companies are becoming more mobile and environmentally conscious, the need for extensive travelling is decreasing. Mobile conferencing – in any form – can reduce time and costs drastically, without investing in complex equipment. SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
2013 EVENTS The Money Expo This is a show that brings together the best investment and finance opportunities from nation’s premier institutes, along with various other financial products available in the market. Everything relating to money can be found at the expo, from how and where to make money, how to invest it, manage it, save, insure and borrow it. Date: 7-9 March 2013 Venue: Sandton Convention Centre, Johannesburg Tel: 087 943 2340 Web: www.moneyexpo.co.za Hobby-X Johannesburg Hobby-X promotes an innovative marketing approach that targets both Trade and Consumers. This two-pronged approach enables Exhibitors to target their marketing to the Trade Buyers, while generating brand awareness and building brand loyalty amongst consumers, ultimately resulting in increased demand for their products within the retail stores.
range of well-known brands and a host of new business opportunities but is also the place to find out everything to do with acquiring a new business, franchising and financing. The highlight of the 2013 IFE expo is the give-away of two franchises, a first for the IFE. Date: 9 – 11 May 2013 Venue: Sandton convention Centre Tel: 011 615 0359 Web: www.ife.co.za/ The Retirement Expo
The Retirement Expo showcases retirement properties, financial planning services, estates, travel options and resorts, as well as health-care, mid-care and frail-care facilities. In addition, experts will dispense constructive advice during the expo’s interactive workshops. Visitors can also find out more about how to keep fit and active during their later years. Date: 25th-27th October 2013 Venue: Coca-Cola Dome, Johannesburg Tel: 011 794 5800 Email: info@coca-coladome.co.za Web: www.whatson.co.za/details. The Business Opportunities & Franchise Expo (BOFE)
Date: 7-10 March 2013 Venue: Coca-Cola Dome, Tel: 011 478 3686 Web: www.hobby-x.co.za/ My Business Expo Johannesburg See all the new trends, experience the most innovative b u s i n e s s solutions, seize some amazing opportunities and ideas for your business..! The My Business Expo offers a widespread array of powerful and unique solution driven exhibits and world class seminars that deliver, practical and interactive information, strategies and ideas, that can be applied to your future, start-up or growing business. Date: 14 March 2013 Venue: Gallagher Convention Centre, Johannesburg Tel: 0861726722 Web: www.mybizexpo.co.za/index.html
The Business Opportunities & Franchise expo is brought to you by Thebe Exhibitions & Projects together with the Eskom Development Foundation. The expo, now in it’s 19th year, is the ultimate networking event for Franchisors, entrepreneurs and SMME’s. The expo brings SME’s leading business opportunities, franchise options and business support services companies to an audience of successful and aspirant entrepreneurs who have the capital to invest in new business ventures. Date: 12 -15 September 2013 – 09h00 – 17h00 daily Venue: Coca-Cola Dome, Johannesburg Tel: 079 557 1555 Web: www.bofe.co.za/about-us.html Markex
International Franchise Expo (IFE) The IFE will feature a wide range of business opportunities. Although South Africa might lag behind the innovation of the United States, the ripple effects of many new concepts are starting to be felt, and we have our fair share of home-grown concepts. IFE 2013 not only boasts an impressive
All types of companies can visit this show and gain innovation strategies which will enhance the business condition of the respective companies. The expo is the best podium where the beginners can also get an opportunity to know about the best managing skills which they can implement in their
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business and improve the state of the company. Date: 11 - 13 June 2013 (JHB) 13 - 13 August, 2013 (CPT) Venue: Sandton Convention Centre / Cape Town International Convention Centre (CTICC) Tel: Fran Lurie - 011 883-7837 Email: franl@specialised.com Web: www.markex.co.za E-Mobile and Marketing Conference
With the buzz of the previous conference still on everyone’s lips. If you had missed the first Mobile and e-Marketing Conference, you are in luck it will be held at Indaba Hotel, Fourways, Johannesburg at the above mentioned date with a revamped programme. The preparations are full steam ahead, as the expert panel of speakers are all confirmed. Speakers will be targeting issues that will benefit businesses in the next digital age. Issues such as expanding your market online, increasing your potential sales and customer base, by selection of campaign focus, targeting specific consumer types and audiences and getting return on investment are some of the topics to be discussed. Date: 27 - 28 February 2013 Venue: Indaba Hotel, William Nicol Drive, Fourways, Johannesburg Tel: 011 840 6600 Email: info@tci-sa.co.za Web: www.whatson.co.za/details. php?id=85943&event=Mobile%20and%20 e-Marketing%20Conference Hostex
With a successful history dating back 26 years, Hostex Gauteng’s reputation as Africa’s leading hospitality and catering trade exhibition remains undisputed. Providing the best opportunity for face-to-face product promotion in the hospitality industry, this vibrant exhibition is attended by decision-makers across every spectrum of the industry, and is the only exhibition of its kind in southern Africa. This event is widely accepted as the best opportunity to network and source products - attracting over 220 exhibitors and 11 500 visitors from across South Africa and neighbouring countries. Such is the reputation and quality of the show that it was completely sold out in 2012 and the same success is expected in 2013. Date: 17 – 20 March 2013, 10:00 – 18:00 Venue: Sandton Convention Centre, JHB, South Africa Tel: 082 558 5429 Email: lindy@specialised.com Web: www.hostex.co.za
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FISH AND CHIPS SPECIAL FEATURE
Fish and Chips - One of the more lucrative food franchise business opportunities and growing Who would have ever thought that two simple meals in their own right, would one day overlap and lead into becoming a roaring success as a modern day national and international franchise food outlet, as well as one of the more popular of all the take away foods? Whether is a health driven decision or simply a preferred choice, this wonderful mix of the potato chip and the fish dates right back to the 1800’s and perhaps even before......
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he population is growing and as people’s lives become busier there are plenty of people who don’t want to cook after a day’s work. The alternative is to visit a fast-food outlet. Demand for fast food is robust but the market is saturated and people must be mindful that feeding people isn’t an easy career option. Selling food is obviously one of the oldest forms of commerce, and it will never exactly go out of fashion! Fish and chip shops have been around since the late 19th century. A few little excerpts from Albert Jacks book, which makes wonderful reading for any food connoisseur or food lover: Fish is a staple diet for many; chips is a staple diet for many – the combination of
these equals franchised outlets. Fried fish in batter was originally a Jewish dish, one that became increasingly popular in the east end of London where many Jews settled during the nineteenth century. Even Charles Dickens refers to a fired fish warehouse in Oliver Twist (1839) and Henry Mayhew in his epic survey of London (1851-62), estimated there to be already around three hundred fried fish sellers in the city. Fried “chipped” potatoes go back even further. Previously, the most popular form of potato based fast food was the baked potato. But in the nineteenth century, the taste for chips spread, particularly in Scotland and the in north of England; they became a complete craze in the mill towns of Lancashire.
A wave of chip shops spread from down from the north and a wave of fried fish shops spread up from the south until eventually the two overlapped. In 1860, a Jewish immigrant called Joseph Malin opened a shop, on Cleveland Street in the east end of London, selling fried fish in the Jewish fashion alongside fried chipped potatoes for the first time. With the popularity and growing demand for this cheap fast food, Malin soon opened fish and chips shops all over London. Then in 1863, Mr. Lee’s Chippy opened for business in Oldham market in Lancashire and soon he had a chain of shops all across the North Country. By the end of the century, fish and chip shops were accepted by the English culture and by 1925 there were 35 000 shops.
Starting and Running a Fish & Chip Shop The reality is that the traditional fish and chip shop is rapidly becoming a general purpose fast food takeaway and why not? You are doing this as a business with the objective of making money. There is no doubt that the market exists, but you will find, unless you are a rare exception or unless you live in a rural area, that 90% of your customers will be from within a few miles of your premises. That is a very important fact to understand and take into consideration for the following reasons: 1) Most of your business will rely on repeats, this is where customer loyalty schemes can be invaluable and there are hundreds of possibilities when it comes to customer loyalty. 2) You are very vulnerable to competition on price as well as quality. 3) The perception of your business is vitally important. Chip shops and takeaways in general can be very profitable business, but they do have their downsides: 1) They are expensive to start;
2) They involve long term commitment to property; 3) They are generally open 7 days a week, meaning that you won’t get a lot of time to spend with the family/friends etc; 4) They require your constant attention; to put managers in charge is to potentially invite disaster. The beauty of the Fish and Chips business, is that it is a cross cultural meal that a large majority of people thoroughly enjoy. There are many private owned fish and chips stores, however if you prefer the back up of a proven concept, there are many local South African fish and chip franchises available for you to consider. Once again location, commitment, and being able to carry the finance for a while is all every important to the success of your business. Check out all the various franchise options, call the existing franchisees, visit a few and compare their operations and quality. Before you make your final decision whether to franchise or to open your variation or concept, or need assistance in due diligence and all the franchise legal documentation
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requirements, call the “FRANCHISE BUSINESS CONSULTANTS 076 509 4590 / 021 9792410. Some franchise options: • Fish and Chip Co. www.fishandchipco.co.za • Something Fishy www.somethingfishyint.com • Fish Aways www.fishaways.co.za • Real Fish and Chips www.realfishandchips.co.za • Skippers Fish and Chips www.mochachos.com/skippers/about-us • John Dorys www.johndorys.co.za • Jimmy’s Killer Prawns www.jimmyskillerprawns.com • Ocean Basket www.oceanbasket.co.za • Texie’s Seafoods www.texies.co.za • Big Fish Brand www.bigfishbrand.co.za
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FISH AND CHIPS
Real fish and chips “At Real Fish & Chips our hake is great, batter matters and our chips are hip! Take the time to meet and chat to Pedro…Pedro will tell you all about our fabulous specials, new stores opening near you and he will be keeping you to up to date with the latest REAL news!”
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eal Fish & Chips is a young and innovative fast food franchise that is growing rapidly by offering entrepreneurs a great fish and chips franchise opportunity. Real Fish & Chips specializes in traditional, tasty fish and chips with a providing exceptional value and service to our customers. Real Fish & Chips opened its first store to the public in 2009 and has grown from strength to strength to this day. The owners decided to take on the venture of bringing back traditional, fresh and tasty fish and chips as it was ‘back in the day’ and set forward to have this as the guideline for their business. The passion behind is Real Fish & Chips is customer satisfaction, by offering affordability, quality, taste and an experience which everyone can enjoy.
The Real Fish & Chips Vision The Real Fish & Chips franchise aims at satisfying the tastes and needs of our customers. The efforts of Real Fish & Chips franchise are focused on bringing the most distinctive, affordable and quality fast foods to the South African market. Real Fish & Chips is creating a brand that is synonymous with high quality fish and chips. Real Fish & Chips provides its employees with ‘Real Food for Real People’ guidelines, which serves as both an internal mission statement, and an external customer service goal. With a guarantee on quality and freshness, Real Fish & Chips serves hygienic fast food along with a mission of maintaining honesty and integrity towards employees and customers,
which along with teamwork, is cited as the key to their success. Behind the Real Fish & Chips Brand Real Fish & Chips has an exceptional team of people throughout their organisation. Real Fish & Chips employees have proven track records in their areas of expertise which enables each franchise to achieve success. Real Fish & Chips has strong directors, who with associates, ensure that corporate standards are met. They provide valuable insights to the company and its members. Specialized marketing techniques guarantee an increase in brand awareness and an expansion in company infrastructure to support the Real Fish & Chips brand as it grows.
Introduction to the Big Fish Brand The Big Fish brand is a brand that revolves around a traditional tried and tested meal that South Africans have enjoyed for many, many years. It is a product that appeals to all races, young and old and through all income groups. To capitalize on this, Big Fish targets the family market and their menu offers a range of family combo meals to satisfy all tastes.
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ig Fish came into being approx. 5 years ago when it was realized that, generally, fish & chips had become a second rate meal served mainly in cafe style stores. The idea was to bring good quality fish & chips made with wholesome ingredients free of modern day sauces and additives back to the public. This is done in a modern environment with open style kitchens, with a focus on cleanliness. The customers have full view on the preparation of their meals. All this is achieved without compromising on some of the old ways
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of doing things. Customers receive their orders in a branded newspaper type wrapping like the old days and the vinegar is dispensed from a glass CocaCola bottle. Hence their brand tag line - “the way it used to be”.
two months with newspaper ads and pamphlets. Our menu has tastes for everyone, from LM prawns and Sole to a plain fish & chips and a meal to suit every pocket.
The stores are also geared for a low setup costs and their operations are designed for minimal overheads so as to make the stores more profitable.
Big Fish is tried and tested and has been very well received. It will be an attraction to any centre by offering something new and exciting to the locals.
They have a promotions and marketing policy that keeps the products innovative and we promote meals every
Franchise Enquiries: Werner 011-824-5894
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HEALTH AND BEAUTY
Healthy Business Opportunities I’m sure you’re aware that the battle of the buldge has become big business. We’ve all heard the terrifying statistics pouring out of America and Europe. Unprecedented levels of productivity combined with an increasingly sedentary lifestyle have taken their toll. In the last 30 years obesity levels have doubled world wide. A study of South African’s conducted by GSK back in 2010 revealed that we have not escaped the trend. Over 60 percent of South Africans are over weight.
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ith awareness of the problem growing and with more and more people focused on finding a healthy lifestyle and achieving the body beautiful the health business is booming. As health and exercise become important to increasing numbers of people South African’s health industry is adapting to suit the needs of its customers. 2012 has seen a trend for heat based therapies and treatments for the hands and feet. There has been an increased demand both for spa services for younger patrons and for the inclusion of culinary experiences into the spa/ gym environment. This is a sign that people are making healthy living more a part of their lives and as such businesses providing these services will need to gear themselves to satisfy broader needs in their customer base. Put simply health is an issue for the whole family and is taking up more time for many people. Another trend that has resulted from the growing awareness of people concerned for their health is that health solutions are having to offer firmer scientific evidence for the effectiveness of their therapies or products. Customers want to feel that their therapies are part of more holistic but scientifically based methods. There is an increasing overlap between medical practice and alternative treatments as clinical studies demonstrate the value of certain alternative therapies like yoga, reflexology and meditation. Health and fitness also comes down to good old fashioned sweat a lot of the time and many people have joined the trend of trying extreme fitness gyms or even fat loss boot camps and classic
calorie burners like boxing or martial arts. Exercise has also come to the people of South Africa in the form of outdoor gyms like the one opened this year in Soweto. With weight becoming such a major issue in the country the city of Johannesburg is considering opening up several more of these free gyms around the city which illustrates a growing need on the part of South Africans to get to the gym and fight off the pounds. Technology is not to be left behind in the rush to meet the needs of the public, there are many types of non-invasive laser treatments available these days that can remove hair, winkles and even scars. Cryolipolysis offers you a pain free non-invasive way to literally freeze away up to six centimetres of unwanted fat in around half an hour. Not to mention that there is a galaxy of supplements, herbal extracts and natural remedies all available at the click of a button from the growing umber of online health shops ready to help the public in their new quest for beauty and wellbeing. Products like Repcillin, 1st fitness and hype energy drinks all offer you a better way to improve your health, keep your energy levels up and get the body you want. If you are a health guru or fitness fanatic there are even opportunities to share your expertise online. Blogging can raise your profile and increase awareness of your product. This can be supported by youtube videos which have the advantage of quickly and clearly demonstrating a product or technique. Get popular enough and you can look forward to a check from youtube who pay up to 1 US cent for every view of their more popular videos. Whether you just want to popularise your business or share some tips the internet provides the perfect low cost platform for generating income and making a name for yourself in the health industry. The changes in how we live and the growing public concern with physical health and the damaging effects of poor nutritional and lifestyle choices present many terrific business opportunities for entrepreneur’s and customers alike. 2012 is an exciting time for the health and beauty industry in the is country and if we look at the current trends we can see a future in which more and more people start to take control of their lifestyles and actively start taking steps to ensure their own wellbeing.
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SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
1ST FITNESS BUSINESS OPPORTUNITY
Yesterday, Today, Tomorrow
I
t is a fact that our modern lifestyles promote sedentary behaviour that contributes to a myriad of chronic diseases. It is also a fact that South Africa is recorded to have one of the highest obesity levels in the world, 1st Fitness seeks to address this situation by offering their customers a smarter way to exercise. By structuring their customer offering and business systems to economically and effectively address their customer’s needs, low-cost gyms around the globe have achieved great success. 1st Fitness is able to offer their members all the facilities required by the majority of the gym going public at significantly lower membership fees without compromising on the quality of the facilities or equipment. 1st Fitness’ vision is “Inspiring People to Live Well by making fitness affordable and accessible to everybody” and they aim to do so by providing quality, functional and inviting neighbourhood friendly gyms with low-cost memberships. The concept under the spotlight 1st Fitness offers their clients a clean, professional and modern environment with state-of-the-art equipment and will soon introduce an exciting online resource that helps members to achieve their fitness goals. Franchisees are encouraged to increase their value offering by offering additional group training classes, such as MMA, kick-boxing or other such classes that are in demand in the regions they serve. The level of service, regular promotions and modern facilities all contribute to making the 1st Fitness regional gym a very attractive proposition. The exercise areas is split into training zones that affords members the opportunity to interact with other participants who are engaging in similar training and includes a cardio zone, circuit zone and strength zone. There is also a large group training area, a Fitvibe studio, an interactive bike training studio and much more. While 1st Fitness caters for all levels of fitness their primary target market is men and women between the ages of 18 and 45. 1st Fitness gyms will be located in residential areas to be easily accessible to the communities they serve. A typical gym will occupy between 600 and 1,200sqm and should ideally be located in or near a busy shopping centre or in a busy strip mall. The functional layout employed by 1st Fitness gyms ensures optimal use of the space which is both efficient and economical. All the 1st Fitness floor staff should be qualified in the basics of personal training. One-on-one training is also available to members who have specific goals and require personal attention. Consider your support The 1st Fitness franchisor will assist franchisees with the establishment of the gym, provide training for staff and management and assume responsibility for national and regional advertising campaigns. The franchisor will be trained at head office for a period of approximately 15 days to equip him/her in managing their own outlet. Ad-hoc training as deemed necessary by the franchisor will be available from time to time. While the franchisee must make every effort to promote his/her business in the local market, the franchisor will be available to provide advice on the appropriate use of medium, based on their own experience. Through the franchisor’s association with Fitness Warehouse the franchisee will have access to internationally known brands of fitness equipment. Do you fit the profile If you are interested in owning a business in the health and wellness industry 1st Fitness may be the opportunity you have been looking for. As a 1st Fitness franchisee you will have superior people, leadership and communication skills and will benefit from any prior experience in direct sales. Contact: Ahmed Hansa • E-Mail: franchise@1stfitness.co.za Mobile: +27 82 461 2222 • Phone: +27 31 304 7137 Website: www.1stfitness.co.za
See outside back cover
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HEALTH AND BEAUTY LISTINGS NAME
TEL
ABOUT
WEBSITE
COST
1st Fitness Holdings Absolutely Water AC Therapy Advanced Hair Studio Adventure Boot Camp for Woman Amway South Africa Annique Rooibos Skincare Aqua Massage Aquasmarter SA Arlex Art of Skin Care Attirance Avon Avroy Shlain Cosmetics Bio Pro Technology Bionic Products BloodScan Blue Moon Tattoos Body Fuel Express Body Mind Studios Body Tec Boosters International Camelot Spa Canyon Organics Cazabella Cele Cosmetics Celebrity Injection Conni Contours Express Cosmetiq E Curves Decorlicious Delance Dis-Chem Pharmacies Divine Beauty Academy Dream Nails Body Dream Weigh Eish2o Espoir Evox Femenique Fitness Flex Forever Living Products Glimpse GNLD International Go Life Health Bar Health Nut Cafe Health Wake Up Herbalife International South Africa Herbazone Herbs for Health Heyns Water Honey Fashion Accessories Hype South Africa info1234u Jean Guthrie Beauty Care Just Fitness Justine Skincare JV Wellness KMI Oral Spray Vitamins Lady Gym Light Spa Madame et Monsieur Mannatech Marni’s Fashion Jewellery Matis
031 3047137 011 9078377 015 7810022 011 3695601 021 4472746 021 4051700 012 3459800 021 5535099 021 7912870 011 6808605 011 8047550 371 67686933 010 2055108 011 6553500 011 7069410 011 7846132 083 2462842 021 9887668 044 8780236 011 4762192 021 4183479 61 425080555 011 8803850 011 8862932 031 7091873 011 9757326 082 7746934 011 4855796 011 7911838 011 7680705 012 6440649 072 1453976 011 6802591 011 7089500 011 4254509 012 6213300 087 9400064 082 4569089 011 6809608 011 4525171 021 5577714 011 3271808 021 6710315 011 5797440 087 8088370 011 4093000 044 3027500 011 8495417 011 7914008 011 5541221 012 3451528 082 9219585 011 7893925 010 2073600 086 1076255 011 6155345 011 8808581 011 6784406 011 2457000 011 2346079 011 7405465 053 7232404 021 7024911 011 8837160 012 6611914 079 0525466 011 3051600
Inspiring people to live well by making fitness affordable Reverse osmosis water purifiers AC Therapy licensees available depending on area Hair restoration Exercise programmes Beauty and body, nutrition and wellness products Internationally award winning rooibos skin care, health and food products An opportunity to own dry massage machines across the country Water purification Perfume factory shop A leader in cosmetic industry in SA through network marketing Attirance is experienced manufacturer of natural cosmetics from Latvia. Selling beauty products from home Skincare, bodycare, suncare, fragrance, colour and vitamin supplements A new generation of wellness solutions - independent agent with biopro Recruiting consultants to sell Bionics products and business opportunities. BloodScan provides you with insight into your current health status Temporary Airbrush Tattoos Water industry Dance like a professional tone your body, lose centimeters and build confidence BODYTEC is the first EMS fitness studio in South Africa Most powerful jump start pack in the world in it’’s class Integrates marine technology and the latest spa therapies Vitamin supplementation-network marketing Delicate to decadent rings, bracelets, necklaces and earrings Marketing perfume Injection free botox Become a Conni Distributor, The World’s Fastest Growing Health Business! Womens gyms and fitness Specialist skincare for dry and sensitive skins since 1973 Womens-only fitness & weight loss centre Specialising in dresses Direct Selling Cosmetics Company Leading chain of discount pharmacies Part time courses offered to women from all age groups and races Nail and beauty salon retail concept warwick@skinwell.co.za Beauty Products Water hydration solutions Education and training centre in modelling, beauty, and personal development Evox supplements and products Contemporary skin, body, nail and hair clinic Health and fitness centers Open your very own Flex 30 minute fitness studio Health, nutrition and beauty products Unprecedented opportunity to capitalise on a revolutionary new skin care brand Multilevel networking, largest in the world-health, beauty & wellness products Natural health products Health Nut Cafe is a health conscious cafe Complementory health products Weight management, nutritional supplements and personal care products Natural Health Products: skin and health care Natural African herbal tinctures & creams for natural healing Purified Bottled Water Honey is a company that trades in high quality fashion accessories Hype energy drink An opportunity to start your own health and wellness business Skin care, cosmetics, fragrances, personal care and direct selling opportunity Profitable gym with health products Justine is dedicated to skincare, offering a wide range of beauty products Business opportunity in ultrasound liposuction, cellulite treatment. Patented oral spray, vitamins,minerals,and herbs Lady gym gives you the opportunity to start your own ladies gym in your area Teeth whitening treatments Health and slimming specialist Optimal health with cell to cell communication Fashion jewelley Health and beauty institute based on a branded retail store concept
www.1stfitness.co.za www.purewatersa.co.za www.actherapy.co.za www.advancedhairstudio.com www.adventurebootcamp.co.za www.abn.amway.co.za www.annique.com www.aquamassage.co.za www.aquasmartersa.com www.arlexpro.co.za www.artofskincare.co.za www.attirance.com www.avon.co.za
Enquire Enquire From: R2700 Enquire Enquire Enquire From: R170 Enquire Enquire From: R750 From: R500 Enquire Enquire Enquire Enquire Enquire Enquire Enquire Enquire From: R60000 R500000 Enquire Enquire From: R250 R40000 From: R1100 R120000 300 000 From: R243000 From: R600 Enquire From: R15,000 From: R225 From: R300000 - R1500000 R120000 Enquire From: R600 R85000 From: R150000 Enquire Enquire R5000000 Enquire From: R1752 Enquire Enquire From: R120000 Enquire R5000 Enquire From: R299 Enquire Enquire From: R500 From: R190 000.00 R1032 Enquire From: R700000 Differ on the price list From: R65000 From: R50.00 R125000 From: R350000 R220000 R850000 R180 Enquire
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www.bioprotechnology.co.za www.bionicproducts.co.za www.bloodscan.co.za www.bluemoontattoos.co.za www.bodyfuelexpress.co.za www.bodymind.co.za www.bodytec.co.za www.boostersinternational.com www.camelotspagroup.com www.canyon.co.za www.cazabella.co.za www.celeperfume.co.za www.injectionfreebotox.co.za www.conni.co.za www.contoursexpress.co.za www.cosmetiqeantiaging.com www.curves.co.za www.decorlicious.com www.delance.co.za www.dischem.co.za www.divinebeautyacademy.co.za www.dreamnails.co.za www.dreamweigh.com www.eish2o.co.za www.espoirsa.com www.evox.co.za www.femenique-health.com www.planetfitness.co.za www.flex.co.za www.aloevera-flp.co.za www.glimpsebusiness.co.za www.gnld.co.za www.golife.co.za www.healthnutcafe.co.za www.healthwakeup.co.za www.herbalifeww.com/za www.herbazone.co.za www.peacegarden.co.za/associates www.heynswater.co.za www.honeyacc.co.za www.info1234u.com www.jeanguthrie.com www.justfitness.co.za www.avonjustine.co.za www.jvwellness.co.za www.kmihome.com www.ladygym.co.za www.lightspa.co.za www.electroslim.com www.mannapages.com/koos marnisfashionjewellery.blogspot.com www.twincare.co.za
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
HEALTH AND BEAUTY LISTINGS NAME
TEL
ABOUT
Miglio Mon Cheri Parfum Mon Cheri Parfum Mr Zippy Natur House Nature’s Health Products No Dough 2 Mo Dough Nu Skin Options Optometrists Organiet Oxford Skin Clinics Pandora Bra Studio Perfect 10 Perfect Water Phuza Health Phyto-Nutraceuticals Placecol Planet Nails Premier Permanent Make Up Ralo Cosmetics Rapid Contour Re Vitalize Day Spa Red Ruby Beauty Products Reeva Beauty and Health Run Walk for Life Sevenpointfive Shack Art Shapes for Women Shzen SkinPHD Slim Active Slimming & Wellness Clinic SOQI Wellness Centre Sorbet Space Sparkport Pharmacy Spec Savers Spirit Of Africa Cosmetics Sport For All Sport Water Sportron International Spraytan Stanley De Kock Optometrists Stemtech Stop Smoking Stylique Sunbird Perfume Sunrider South Africa Sure Slim Team Revup 31 The Aim Companies The Crystal Box The Firm Slimming and Health Clinics The House Of Aloes The Laser Beautique The Mattress Medic TLC Torga Optical Travelling Trainers Treasure Chest Vanda Cosmetics Vemma SA Virgin Spa WaterMate Watkins Valeur Cosmetics Whiter Image World Wide Trends
021 8549600 018 4688174 018 4688174 011 8278608 011 4523047 086 0221100 000 000000 082 4953702 011 6217000 012 8037730 041 4842940 011 7838174 011 7830340 011 9078377 011 7924638 021 7835738 012 6213300 011 4475550 011 9038628 021 9495530 011 0365950 011 7067685 072 0966681 011 4821570 011 3679400 031 7645450 021 558886 011 7911838 021 7042940 012 6213380 012 8064560 016 9311939 021 4331417 041 3733855 031 3080400 041 5065800 012 3474463 087 8204030 072 4499206 011 3178300 021 5575279 016 4306400 021 8525664 021 5666630 012 3416464 012 3455523 011 3151338 021 7976003 083 3732850 011 6750477 083 4169748 031 5640660 028 7351454 011 6153358 011 7911838 086 1000852 011 6786556 084 8724637 082 3430114 011 4223710 021 9131185 011 4651176 0860 247777 021 5322640 021 7024911 073 1667710
Designer jewelery direct selling company Passion for perfume A opportunity to earn above average extra and fulltime income. Purified ice and water vending Nutrition and health Quality products and services that conform to the demands and requirements We produce music, and our merchandise includes flashwear clothing & earphones. Direct selling opportunity in the health and beauty sectors. Individual practice ownership with group buying power Best products suitable for the skin types Tattoo removal Professional Bra Fitters Nail and beauty franchise Opportunity for those wanting to market and distribute purification systems Natural health Healthy soy products Beauty and wellness salons Supplier of Professional Nail & Beauty Products and Training Courses. Permanent or professional makeup Cosmetics chain store Laser-based technology to help you lose the centimetres that just won’t go away Spa and wellness facilities Most up-to-date and effective beauty equipment to enhance the clinical Direct sales and marketing of cosmetics & nutritional supplements Fitness and weight loss programme Live blood analysis, manufacturer of detox supplements Nail art printing machines Women’s health and weightloss gyms. Direct selling of hand, foot and beauty care products Aesthetic health clinic Weight loss clinic, specializing in slimming, cellulite and detox treatments Medical devices Beauty salons and nails Exercise, anti-cellulite and anti-aging treatments Retail community pharmacy Optometrists and eye care Unique fragrances and cosmetics Sports development, structured coaching and life skill programmes for children. Lucrative water bottling business Health and wellness supplements Products & equipment for application & maintenance of professional spray tanning Eye care and optometrists franchise Natural product that stimulates stemcell’s in the bonemarrow for self healing Product to help you quit smoking Ethnic skin and hair processing Direct selling/network marketing - perfume A range of products sold via multi-level/ network marketing Weight loss wellness clinics Introducing revup31 the future of anti-aging and optimal health Suppliers of BarleyLife and other high quality health care products Clear boxes for storing your shoes in an efficient way Slimmimng and Health Clinics Aloe skin and health care products Offers the latest in non-invasive beauty and aesthetic treatments. Dry mattress cleaning service Training and weight loss coaching Eye care Private personal training programme Locally manufactured Lingerie for the fuller woman Cosmetics and skin care products Marketing Manager: jorika@vanda.co.za The worlds most powerful liquid antioxidant Slimming and wellness spas Ensures all the water in your home is clean, safe, crisp, clear & balanced Unisex beauty and fragrance products Cosmetic teeth whitening Wellness, nutrition and anti-ageing products
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
WEBSITE
COST
www.miglio.com www.moncheriparfum.co.za www.hannesgerber.com www.mrzippys.co.za www.naturhouse.com www.natureshealth.co.za www.nd2md.co.za www.ironyourwrinkles.com www.optionsoptometrists.co.za www.organiet.co.za www.oxfordskinclinics.co.uk www.pandorabrastudio.co.za www.perfect10.co.za www.perfectwater.co.za www.colloidalsilver.co.za www.phyto.co.za www.placecol.com www.planetnails.co.za www.cosmetic.co.za www.ralocosmetics.co.za www.rapidcontour.co.za www.revitalize.co.za www.redrubybeauty.co.za www.reeva.com www.runwalkforlife.co.za www.sevenpointfive.co.za www.shackart.co.za www.shapesforwomen.co.za www.shzen.co.za www.skinphd.co.za www.slimactivesa.co.za www.htegroupsa.co.za www.sorbet.co.za www.spacecentre.co.za www.sparkport.co.za www.specsavers.co.za www.spiritofafrica-cosmetics.co.za www.sportforall.co.za www.sportwater.co.za www.sportron.co.za Differ on the job spec www.sdk.co.za www.healthandbeautyfinder.co.za www.stylique.co.za www.sunbirdperfume.co.za www.sunrider.co.za www.sure-slim.co.za teamrevup31.cast.cc www.theaimcompany.com www.crystalbox.co.za www.thefirm.co.za/ www.aloe.co.za www.thelaserbeautique.co.za themattressmedic.co.za www.tlcforweightloss.co.za www.torgaoptical.co.za www.travellingtrainers.co.za www.treasurechest.org.za/ www.vanda.co.za dante.vemma.com www.virginspa.co.za www.watermate.co.za www.watkinsvaleur.co.za/ www.whiterimage.co.za
From: R275 R149000 From: R990 Enquire Enquire From: R1200 Enquire Enquire From: R120000 From: R7500 Enquire From: R65000 From: R495 000 - R595 000 From: R150,000 From: R350 R300 Enquire R350000 R850000 R450000 Enquire Enquire Enquire R5000 R25000 R285000 Enquire R400 000 Enquire Enquire R325000 R250000 Enquire Enquire From: R800000 From: R800000 From: R750 From: R275000 95 000 From: R50 Enquire From: R500000 Enquire Enquire Enquire From: R200 R1200 R490000 Enquire R85 Enquire R499 000.00 Enquire Enquire Enquire From: R2000 R800000 R190000 From: R6000 R200 Enquire R1200000 Enquire Enquire From: R200000 From: R350
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HEALTH AND BEAUTY HOT OPPORTUNITIES HYPE ENERGY DRINK
Hype Energy is a new energy drink in the South African market, but has well established itself in the international markets. Market research for 2011 of the product in South Africa revealed that it could compete with other renowned energy drink brands in the South African markets. Dealers will be allocated territories according to the their chosen area of operation. Hype aims to establish sustainable businesses in the sense that a dealer will have an opportunity to distribute in his or her chosen area of operation without the intervention of Hype Energy. Start-up capital is R 190 000, with an expected R70 000 return on investment per month. Hype has a relatively high profit return with all advertising being free and no royalties’ charged, a low startup cost and an ease of distribution. Hype Energy has prospered due to being operated in a highly professional manner and the constant introduction of new products, branding techniques, design trends and marketing strategies. The target market being all grocery stores, liquid stores, service stations and wholesalers within South Africa. Contact Person: Mr M M Bambo Tel: 0738304929 Office Tel: 0861076255 Website: www.hype.com
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THE LASER BEAUTIQUE
The Laser Beautique, a wellness and beauty clinic focusing on non-surgical treatments, was established by Neil and Tzvia Hermann in September 2009. It has since grown into a franchise opportunity with 4 branches already established and a further 5-10 planned for the 2013/2014-business year as well as branches across the border being considered. The business model has evolved from the initial start up to a cutting edge beauty clinic that keeps up with trends and market changes and adapts accordingly to increase profitability and improve client service. The contributing factor to the succes of The Laser Beautique is also what makes it a solid business opportunity with fantastic return on investment, i.e. Low cost of sales, High GP percentage, 3 year forecast based on existing clinics and a proven track record and business formula. The wellness industry is one of the most booming industries in the world assuring that there is huge growth and potential for a business with the right model. With licensees receiving a total franchise setup, i.e. computers, furniture, software, branding, franchise assistance, as well as discounts and machinery to name a few, the buy-in fee, starting at R1.2 million and a royalty charge of 12%, is more than a bargain. With R10 000 minimum for a commitment undertaking and a R100 000 upfront franchise fee, this is one of the easiest businesses for aspiring entrepreneurs to enter into. With excellent marketing resulting in invitations to 3 Talk with Noeleen and an upcoming feature on Top Billing in 2013, this is a business opportunity with definite return possibilities. Franchisees are offered national marketing via the The Laser Beautique website as well as assistance with their marketing and estimated return on investment after 18 months. Contact Person:Tzvia Hermann Tel: 0861 850 851 Mobile: 076 895 2068 Email: management@thelaserbeautique.co.za Website: www.thelaserbeautique.co.za
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RED RUBY BEAUTY
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Opened in March 2011 by Marian Ludewig, Red Ruby Beauty and Slimming specializes in developing a platform where individuals, both small and big salons can afford to do therapies/treatments with the latest proven innovative versatile beauty aesthetic system available. Therefore creating more entrepreneurs and fast-growing business opportunities.
Red Ruby Beauty started off only selling small handheld machines and advanced to setting up small salons, with the best machines and technology, at affordable prices. It also has rapid growth potential with 65% of South Africans being obese and a growing trend toward health and aesthetics, the client base has already been established. Red Ruby Beauty and Slimming has, to date, set up 6 agencies and plans to set up a further 12 in the 2013/2014-business year. With a R35 000 buy-in, opportunity buyers receive discounts on products, training, traceable machinery, website and expo exposure, as well as corporate branding materials, andno royalties charged, it’s one of the most affordable health and beauty sector buy-ins. The return on investment is an estimated 12 – 24 months. Contact Person: Marian Ludewig Tel: 082 214 9046 Email: marian@redrubybeauty.co.za Website: www.redrubybeauty.co.za
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SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
BUSINESS ADVICE
Interns as a business solution
It’s a growing trend in business today. Internship has grown, as shrinking profit margins and the need to compete in an ever harsher job market, throw young people and businesses together. No one could deny that the prospect of getting a bright and eager employee, at a fraction of the cost of employing an older staff member, would be a boon to any business, especially if margins are tight.
H
owever, the real truth is that, if you want your internship programme to work, you’ll need to realise it has to be at least as much about your intern as an individual, as about your business. No relationship that begins on exploitative lines is likely to have positive outcomes, but if you can make sure that your intern gains as much as you do from your relationship, you may well be ensuring a brighter future for both your intern and your company. People who recognise the true value of internship, are people who can look to the future. If you’re just hoping to get someone cheap to do the grunt work around the office, prepare yourself for disappointment. Remember you are dealing with a young person with limited skills and experience. You simply can’t have the same expectations of them as you would an experienced employee. This is a blessing and a curse since on the one hand, they may need a lot of hand-holding but on the other you can train someone from the ground up. The bottom-line is that interns grow in value over time. You could “use em’ and lose em’” but the chances are that you would only end up costing yourself time and emotional energy. Interns do have much to offer but you will never get the most out of them, until you see them as growing concerns. Above all you need to have a clear vision of what you want out of your intern, as the more experienced party in the relationship it is you who is most likely to be able to shape your personal dynamic into a productive working relationship. An intern can be many things to
your business, anything from painful drain to resentful drone. The only acceptable situation is when both parties are getting something of value, so let’s look at what you can expect to get out of taking on an intern and what you should be prepared to give. The benefits of an intern: Your business just got a young and hopefully eager team member. If your intern doesn’t seem eager, don’t hire them. You don’t want to be forced to deal with someone going through the motions; your intern needs to meet you half way. The costs can be very low and you have the opportunity to grow your intern’s skills to suit your business and to assess whether they would make a good, permanent addition to your team. You could look at an internship as a job interview that lasts several months (typically an internship should last about three months), allowing you to pick only the cream of the crop for proper employment at the end of the process. It is worth bearing in mind that, under the law, you can’t keep someone on a temporary work contract indefinitely, therefore you should be looking at the possibility of full time employment for valuable interns from the beginning. Though they lack experience, interns can often have desirable skill sets, particularly when it comes to handling the latest technology and forms of media. When interviewing for interns, look out for candidates who might be able to offer more than they realise. If you make sure that your intern values your relationship and values the experience of working for you, then they can also represent great word of mouth advertising and indeed may represent a link to the local community, since it will often be local youngsters who apply for internships. If your intern forms a positive opinion of your company, you may well reap the benefits. What you should be offering an intern: The primary benefit any intern derives from working for you is experience. It’s an old story, no one wants to give you full time employment until you can demonstrate experience; you can’t get
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
experience until you get a job. Internship by passes this problem and gives the intern real work experience. The important thing, from the employer’s point of view is that you go out of your way to help your intern get the most out of their new experiences. Since you are not offering much financial compensation, it is imperative that the intern gets mentored properly, so that they get something valuable in lieu of financial compensation for their efforts. Furthering of the intern’s career goals. Many young people are required to seek internships as part of gaining a qualification. This presents you with the opportunity to use the skills they have acquired so far in their training. This may also present a problem, in as much as their interest in your company may only last until they have fulfilled their course requirements. If you are hoping that someone will stay on, it is worth ascertaining what their hopes for the future are and seeing if you can’t persuade them to continue their involvement with your business after graduation. The advantage of this is that you could snap up a quality graduate before they even get onto the job market. If you don’t intend to employ your intern after their internship has expired, you could still refer promising candidates to other businesses and friends, thus building good will for your business with both the intern and the businesses who take them on. Money. It might not be much but if someone is just out of school or even still in school, even a token salary can seem like a great incentive. It is possible to find interns who will work for nothing, but unless you know that you are working with a committed individual, who truly values what you are teaching them, a regular small payment is advisable. Why should this be necessary? Well for starters, you are trying to give someone their introduction to the working world and the satisfaction of a salary well earned is part of that. More importantly payment creates a professional obligation in your relationship. Ultimately most people who receive nothing for their work, start to feel under valued, both your relationship and their work will suffer. You don’t want to be at the mercy of “What do you want for nothing?” You may feel that the experience you offer is invaluable and you may be right, but a pay check gets us all through those tough days, when we’d rather stay in bed and do you really want someone working for you who thinks they are worth nothing? At the very least you should ensure that your intern breaks even. Expenses like travel and food add up and making someone feel as though they are losing money to come to work, is a sure way to foster resentment.
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BUSINESS OPPORTUNITY
Amazing Business opportunity Once in a while every few years an exciting new business opportunity presents itself. This year Repcillin joined us on our stand at the Coca Cola dome an we could see the incredible interest there was in their stand.
F
or four days they were inundated with inquiries and it was surely one of the busiest stands at the while show. We looked into this and found the its founder, John Sweet was generating a great deal of excitement form his presentations, which on the face of it looked too good to be true. He was offering a ROI of R10000 a month from an investment of only R50k. How could this be achieved? We delved a bit deeper for our subscribers to get the facts. Firstly Repcillin has a unique product in as much as it has developed a natural cream made from crocodile oil and this has received rave reviews from users all over the world who have used it on many skin problems. John explained that crocodiles have an incredible immune system which had helped them survive over 200 million years and that recently scientists discovered that their serum kills
bacteria such as MRSA which nothing else has been able to do. John saw this program on National Geographic and contacted the scientist involved and asked if the fat of the crocodile had the same healing results. He did not know. So to cut a long story short John did his own research and testing and has build up a lucrative business for himself and his distributors by manufacturing his own skin care products and selling them to pharmacies and hospitals throughout South Africa. Now a further development in his expanding business now requires more distributors both in South Africa and overseas. A new skin care product especially for the people who either work in the sun or are sun seekers on holiday. The new Skin Care Kit has a huge
potential there is not only a sun block in the package, but an after sun which reduces sunburn almost instantly, a cool cloth which does not need refrigeration a lip balm and an oil which will not only maintain the tan for holiday makers, but also can be used to heal insect bites. This kit has a huge potential and it can be sold alongside the sun tan lotions in tourist outlets and hotel gift shops. The profit margin on this kit is excellent and inquiries from potential distributors are welcomed. This is truly and excellent business opportunity which does not become available often. Contact john on john@repcillin.com or visit his business opportunity website www.businessinabox.co.za
RENEWABLE ENERGY
The Drive to be Green
BMW’s prototype electric scooter
By now you would have had to be living under a particularly large rock not to have noticed that the world is going green. In almost every sector people are waking up to the fact that ensuring sustainable growth and use of energy is not only the right thing to do but the best way to court a growing consumer base, which demands to know the real cost of your business to the planet. Naturally these new demands mean new opportunities and many businesses have been quick to react. Some of the greatest of these opportunities lie in the field of sustainable transport. Given the size of South Africa, transport is definitely an issue close to our hearts. Let’s have a look at how we can help the environment, while at the same time making the most of the emerging green market.
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he profits in the transport sector are huge, this year Exxon an Shell were making $160,000 per minute! However, we all know that the party can’t last forever, fossil fuels are finite and getting ever more expensive (not to mention the hidden cost to the environment). Oil reserves are dwindling around the world, but our need to get from A to Z is only increasing. That gives you a demand, if your business can satisfy that demand, while at the same time adhering to ecofriendly principles, you can become part of a new type of economy, a green economy. The UNDP defines such an economy as “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. Green economy is an economy
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or economic development model based on sustainable development and a knowledge of ecological economics.” Now, most of us would naturally want to be a part of that, who wouldn’t like the idea of getting profit from doing the right thing? Remember, these days people won’t just react positively to green projects, they are also liable to react negatively to environmentally harmful business models, so, over time, it may become a case of adapt or die. When a visionary like Elon Musk is investing so heavily in green transport, then you know that this is not some fad that will be gone tomorrow; green transport is the future.
For anyone not familiar with Mr. Musk, he is one of South Africa’s greatest exports. Musk’s meteoric rise has included founding the company that would go on to become PayPal, as well as orchestrating the first private space missions to put a satellite into Earth orbit and to supply the international space station. Musk’s vision and his capacity to make that vision a reality has been truly inspiring and over the last several years, he has been focusing much of his extraordinary talent into green projects. He is currently chairman of Solar City, the largest provider of solar power in the US, but more excitingly for car enthusiasts, he is behind the Tesla electric car. Tesla débuted with the Tesla Roadster back in 2008 and while the company is still relatively young, Tesla is producing truly startling vehicles, with
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
Electric mountain bike
performance statistics that put many petrol cars to shame. If you don’t have Elon Musk’s kind of money or level of talent to get involved in eco- friendly transport, there are various business opportunities that you could explore. For a start before we ask people to scrap their cars, how about offering them sustainable fuels that are compatible with their existing vehicles? Green-Diesel is one South African company that offers you the chance to get involved with the production of biodiesel. Bio-diesel will work with existing diesel cars, it is easy to produce, safe to handle and store and bio-degradable. Bio-diesel reduces carbon emissions and offers a sustainable alternative to diesel derived from oil. There has been a lot of negative press around the possibility of bio-diesel impacting on the global food supply but various sources have now been found that mean bio-diesel does not have to impact on our food production; jatropha, wood by-products, even animal excrement and algae, are all promising sources of sustainable bio-fuels. One of the great thing about bio-fuels, as long as they are taken from the right sources and don’t impact on crops, is that they are carbon neutral. In other words, when you burn a fossil fuel you release carbon that had been sealed away from the
earth’s atmosphere for millions of years, whereas when you burn a bio-fuel, you are only re releasing carbon that was bound to the plant during its life time. In theory the next generation of plants will absorb that carbon. Green-Diesel offers business opportunities that range from DIY kits to commercial ready plants. GreenDiesel’s plants can vary in size from eighty to a thousand litres, which would be perfect either for fuelling your own business fleet or even for starting a commercial venture. At around seventeen and a half thousand rand, excluding vat, for the basic machine, Green-Diesel sounds like one option to break into the green transport economy (especially when you consider that you can produce a litre of bio-diesel for less than five rand a litre with their equipment). As fossil fuels run out, people are going to have to break their addiction to oil; bio-diesel, when created from the right materials, could well be one of the solutions that keeps us motoring into the future. It’s not just diesel fuel that’s going to go through some changes in the next decade or so. An American entrepreneur by the name of Thomas Quinn has developed a machine, about the size of a fridge and retailing for $10,000, that
can distil pure ethanol in the privacy and comfort of your own home. If a car is properly outfitted it can run on pure ethanol (though current limits in the US only allow an 85% mix with gasoline). Mr. Quinn’s EFuel100 MicroFueler can mix gasoline and ethanol as well us being capable of producing as much as thirty five gallons of ethanol a week (about two full tanks). There are even plans to take this kind of technology and create ethanol vending machines. I doubt this will be commercially available in South Africa anytime soon but I’m sure anyone who has ever looked resentfully at a register on a petrol pump, can see the commercial possibilities of offering people the chance to distil their own fuel at home or even to circumvent the taxes that put such an extra burden on our fuel bills, by visiting an ethanol vending machine. Back in South Africa there are various other businesses who also know how to cash in on the demand for green transport. Companies like “GreenCab” make their use of bio-diesel a selling point. Entrepreneurs like Neil McWilliams, managing partner of Shesha Tuks, have seen the opportunity inherent in offering eco-friendly public transport. The vision of the sustainable urban transport project is particularly relevant in a country such as South Africa, where around 70% of people commute rather than owning their own vehicles. The Tuk Tuk as operated by Mr. McWilliams’ organisation is, as he puts it, “Inherently a green vehicle since it uses less fuel”. In this case Mr. McWilliam’s green thinking is allowing him to exploit a niche market and set up a business that provides transport, while offering a reduced carbon footprint. If the argument “I use less fuel.” is appealing to customers, what about “I don’t use fuel at all”? Imperial Green Mobility, for instance, offers a wide range of electric vehicles throughout Sub-Saharan Africa. It isn’t just what we use to power our vehicles that makes them green. Continued on page 22
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
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Continued from page 5
The amazing Tesla electric car
According to a recent report by Technical University of Munich ecofriendly tyres offer another way for us to increase efficiency. This month the EU introduced a new labelling system for tyres that made it easier for consumers to choose green tyres. Apparently green tyres can save you as much as R2768 per year (presuming a petrol price of R11.11 per litre and an average of 35 mpg). That adds up to 350 kg of carbon emissions and is great news, since it demonstrates once again that you don’t have to rush out and buy a hybrid, when you can make a significant impact on your carbon footprint just by changing something as simple as your tyres. The green transport revolution doesn’t just stop at cars and taxis, of course. For years we’ve been told how wasteful it is to be dragging around the weight of a whole car, when there is only one person in it. These days there are ranges of electric bikes and scooters like the e-max, that can answer individual transport needs, while reducing their owner’s carbon footprint to almost nothing. China has really led the way, when it comes to the commuter cyclist and with many of South Africa’s citizens spending up to half their wages on transport, more and more people are going to need a cheaper, more efficient and greener way to get about. Products like the eZee bike, introduced into South Africa by James Swift back in 2008 or Flexible Energy Solution’s EGO Helio, offer pollution free transport and the advantage that you don’t require a driver’s licence to use them. Kits like the ‘e-bike’ allow you to customise
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existing bikes by enabling you to fit a 230w motor, which will turn any bike in to a vehicle capable of going at 25km per hour, in good conditions. A local company, Thula eBikes, even offers the opportunity for you to start an e-bike dealership, selling customisation kits or even offering full conversions. When you consider that China already has 140 million e-bikes in use, you can see the opportunities inherent in personalised, eco-friendly transport. China is also the source for one of South Africa’s newest green transport vendors. By the beginning of next year Yaseed Shabodien and his business partner are planning to be importing the ElectroFire electric scooter. The ElectroFire boasts a 800 watt motor and a top speed of fifty kilometers per hour. It covers up to eighty kilometres on a charge and can be recharged within seven hours with as little as eight point five units of electricity. Mr. Shabodien’s company, Nayara is currently researching the South African market and intends to start by importing a range of four models of electric scooter. The import level will start low with model prices starting at ten thousand rand. Battery powered bikes and scooters represent an ideal way for individuals to commute, without harming the environment and I think that Nayara may well find itself going from strength to strength as customers respond to this potential. Transport has been a human concern throughout history and there is no doubt that it will remain at the centre of people’s lives. They say that the only
certain things are death and taxes but you could well add the need to get about to that list. Any businessperson worth their salt can see that there is money to be made in eco-friendly transport, the real trick is to gauge what people will want in the future. You don’t have to make a whole new car or even get people to substantially change their existing modes of transport; the important concept is reduction. Some saving on your carbon footprint is better than none. So if your company can produce a better tyre or a better fuel, if it can do anything to reduce damage caused by, or offer an alternative to, outdated methods of travel then you can count yourself as part of the green economy and likely reap rewards for your involvement. We have made many amazing innovations already but alternative energy solutions are really still in their infancy. Recently the University of KwaZulu Natal came in third in the Sasol solar car challenge, with a vehicle that covered 5400km in just over a hundred hours. The strong South African showing in the Sasol challenge has led many to speculate that in 2014 SA will be giving the Japanese a run for their money. This isn’t just great for national pride, it’s a sign that the technology is maturing and that sunny South Africa is poised to be one of the front runners when it does. It’s an exciting time for entrepreneurs, the rules are all being rewritten and if you can spot trends before they happen then you are almost certain to succeed. Green innovation and business is the best kind of business since it really can be win-win. It is little wonder that our best and brightest are drawn by the promise of new Eco-innovations. Who can resist the combination of challenge and reward that this kind of business offers? The paradigm has shifted, responsibility has replaced greed, sustainability has replaced profit at all cost. If humanity is to reach the new horizon, then it will have to be driving something green.
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
RENEWABLE ENERGY LISTINGS NAME
Bio Fires
TEL
0861 452773
ABOUT
Bio fires distributor provide supplementary heating for any room in your home
WEBSITE
COST
www.biofires.co.za
Enquire
Doctor Power
011 8236181
Save energy, cut light bills by 50%
www.doctorpowersa.co.za
Enquire
Drom Monster
082 4187928
Specialized waste management for a green future
www.drommonster.co.za
Enquire
Electra Energy
021 7625081
Energy saving solutions
www.niteproducts.biz
From: R50 000
Energy Cybernetics
012 3699880
Solar works and systems
energycybernetics.com
R 350 000
Flying Hippo Energy Solutions
076 4641829
Interested in opening a flying hippo agency
www.flyinghippo.co.za
Enquire
Gener8
082 4569089
Energy management solutions
www.gener-8.co.za
R 85 000
Green Diesel
082 9012047
Biodiesel
www.green-diesel.co.za
Enquire
Green LED
083 5101844
Invest in a renewable energy business
www.greenled.co.za
R 85 000
Greengel Flamable
013 7001313
Greengel offers a business opportunity to entrepreneurs to become distributors
www.flamablegreengel.co.za
Enquire
Greenled SA
021 9818048
Greenled SA supplies led lighting equipment
www.greenled.co.za
Enquire
Home Comfort
086 1114169
Underfloor heating, solar energy franchise opportunity
www.homecomfort.co.za
Enquire
ITS Heat Pumps
0861 4328464
Heat pumps
www.itsheatpumps.co.za
R 150 000
Lamin8 Window Film
011 6405236
Irisfilm blocks heat before it penetrates the room 5 17th Street Orange Grove
www.lamin8.co.za
Enquire
OneSolar
021 7900634
Join our network of solar specialists,we are looking for hands-on individuals
www.onesolar.co.za
Enquire
Safrelec
086 0353500
Manufacturing, retail and sustainable energy products for business, residential
www.safrelec.co.za
R 33 520 000
Solahart
0861 76524278
Solar franchise
www.solahart.co.za
Enquire
Solar Charge (Pty) Ltd.
011 6916600
Applications to generate lighting and power with the use of unique solar panels
solarcharge.co.za
Enquire
www.solargateway.co.za
R 350 000
www.solarcon.co.za
Enquire R 47 750
Solar Gateway
011 7400701
Solar solution to the residential, corporate and industrial markets
Solar Geyser Antifreeze
083 7803212
For indirect systems only
Solarcon
011 4447503
Solar Training for Professionals available from South African based Solarcon
Enquire
Solartech
086 1618618
Solar energy
www.solarbusiness.co.za
Sum Electrical
011 9722106
Generator power
www.sumelectrical.co.za
From: R1 000 000
The Battery Solution
011 6136957
A battery solution on wheels
www.thebatterysolution.co.za
Enquire
Thermacool Insulation
011 8815833
Thermal cooling
www.thermacool.co.za
Enquire
Thula Lula
083 6522369
Electric bicycle and conversion kits
www.thula-lula.co.za
From: R 3 900
Walco Power Solutions
012 3652955
Energy saving solutions
www.walcopower.co.za
R 74 100
Zen-ergy
011 8815833
Renewable energy solutions
www.zen-ergy.co.za
Enquire
BUSINESS OPPORTUNITY
Renewable Energy opportunity in convenient transport dealership Thula Lula (an electric bicycle e-merchant) e-Bikes aims to provide a greener, low cost alternative to common public transport (roughly 4c/km) and low pollution mobility through a simple conversion kit which will fit any bicycle.
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he easy-to-assemble kit allows the e-bike to reach an estimated distance of as much as 45 km on a single charge, with the top speed being around 25 km/hr on a straight road at a minimal cost. The e-bike is regulated by a 250kw motor, but is still, however, qualified as a bicycle (in transport regulations). Larger motors are available, but would require a license to drive. Thula Lula has been featured on Top Billing and several times on Talk Radio and has done a successful pilot study for the provincial Transport Department under Helen Zille. 110% Green, an initiative of the Premier’s office, has chosen Thula Lula as a flagship project for the coming
year. The aim will be to encourage the use of commuting via bicycle, whether it is conventional or electric. Agents across the country are extending the reach of the company to enable its application throughout South Africa and eventually to the rest of Africa. Tapping into a green business prospect is the future of SME’s and Thula Lula is quite easy to get into, the basic prerequisites being: • Having an adequately spaced location to meet customers. • Having sound mechanical ability in order to safely and professionally install the conversion kits on bicycles. (Thula Lula does, however, provide the option of installing conversion kits at R150 per bike.)
As a first time dealer, you will be required to purchase a minimum of two conversion kits, with one kit being installed on your own bike to familiarize yourself with the process, with the other kit being kept as stock. After the sale of a kit, extra stock is available from the Thula Lula head office. With each conversion kit sold, you will be awarded 5% commission, with 8% being gained from each sale when there are ten or more orders.The projected commission income is around R1000-R2000 a week. Kit prices for the Thula Lula conversion kit ranges from R3058.50 to R3668.37, Disk brakes at R579.90 and Batteries ranging from R 3861.75 to R 5583.00. Tel: Mike Blake – 083 652 2369 Website: www.thula-lula.co.za
BOOK REVIEWS The Mobile Marketing Revolution: How Your Brand Can Have a One-to-One Conversation with Everyone - Jed Alpert From fundraising to polling to selling products, this book shows how to use mobile messaging to turn even the briefest initial interaction into a permanent engaging relationship. Better still, you can achieve all this without expanding your business’ overhead or building campaigns from scratch, by integrating mobile into your organization’s existing processes and practices
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich – Timothy Ferriss
Whether your dream is escaping the rat race, experiencing world travel, earning a monthly five-figure income with zero management, or just living more and working less, this book is for you. This step-by-step guide to luxury lifestyle design teaches: how Tim Ferriss went from $40,000 dollars per year and 80 hours per week to $40,000 per MONTH and 4 hours per week; how to outsource your life to overseas virtual assistants for $5 per hour and do whatever you want.
Get Rich Click - Marc Ostrofsky
Get Rich Click shows you how to jump in and begin making money online immediately. Author Marc Ostrofsky outlines the strategies that made him a multimillionaire despite having no technical skills and never creating a single website. Using real-life examples, this engaging guide gives you step-by-step instructions for achieving financial success. You’ll learn hundreds of unique ways to make money online including the use of Facebook, Twitter and other social sites, domain names, Pay-Per-Click and creating digital based products.
The Personal MBA: Master the Art of Business – Josh Kaufman
The Personal MBA distills valuable business by explaining important concepts such as: •The Iron Law of the Market Why every business is limited by the size and quality of the market it attempts to serve-and how to find large, hungry markets. •The 12 Forms of Value Products and services are only two of the twelve ways you can create value for your customers. •The Pricing Uncertainty Principle Raising your prices is the best way to dramatically increase profitability - if you know how to support the price you’re asking. •4 Methods to Increase Revenue There are only four ways a business can bring in more money.
STARTING YOUR OWN COFFEE SHOP
Starting a Coffee shop: the insights of a Noble Peace Prize Winner Lameen Abdul-Malik, owner of Escape Caffe and a joint Nobel Peace Prize winner (with International Atomic Energy Agency in 2005) shares his experience on starting up a coffee house without any entrepreneurial experience , and also, offers some advice on running your business. Do you have any previous experience in this field or was it learnt as you went along? I had no previous experience. I did a lot of research, because I always believed that to own a coffee shop, then I need to be a “guru” in coffee. So, from the first time I thought about owning a coffee shop in 2005, I did a lot of research on the web, bought books and talked to experts, until by early 2007, I had amassed a lot of knowledge, including buying a semi-commercial espresso machine to make proper espresso at home. The culmination of my research came with me starting my own blog www. fromcoffeewithlove.com to share my experiences in the World of coffee. However, although I had read a lot about running a coffee shop, the realities only came into play when I started running my café, learning about accounts, suppliers, staff management, visioning and strategizing.
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s a testimony to success of his business ventures, he’s had articles run in Die Burger, the Sunday Times, the Mail and Guardian, Taste Magazine as well as having had radio interviews with CapeTalk and the BBC World Service and some television exposure on eTV. We sat down with the Nobel Prize winning Barista, and he had this to say; Where did the name of your business originate from? Escape comes from “escaping” back to my dream of owning a coffee shop. It also comes from my concept to “escape” from the hustle and bustle into a lounge and relaxing environment, hence the décor in my caffe. It also comes from the words ES – espresso, CAP – Cappuccino and E – Eat. Why didn’t you follow the franchise route? As this was my dream, it had to connate with my own space and ideals – this means that in order to maintain your vision and quality, you have to control the way the concept develops and evolves. This is the main reason Starbucks is not a franchise – they wanted to always maintain their vision. In any case, with only two years of trading, the franchise option was not available, even though customers had enquired as a means of making more money.
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What was the toughest thing to learn? The toughest thing to learn is how slow people are in responding to your product, despite your focus on high quality. In the big cities of Europe, especially London (where most of my knowledge was amassed), people respond to quality very quickly compared to Cape Town. How important do you feel that being the ownermanager your business is to the success of it? Very. With a small business like mine, where I dreamt about my caffe for over 5 years before it became a reality, your vision is intertwined with your personality. One major reason for wanting to own and run my cafe, was to meet different people every day – it’s a very enriching experience, as no two days are the same. People come to the caffe to meet with you and after a while if you are not there, they may go somewhere else. However, if you are able to hire the right people and communicate what you and how you want it, you may be able to transfer that experience to your staff, so that customers still have a great experience. What was the biggest challenge in starting up your caffe? Being a foreigner in Cape Town. There was no network of friends and family to patronage me at the beginning, nor to spread the word. On top of that, the South African government doesn’t make it easy for foreigners to set up businesses and workers assume you are rich. SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
How was the launch of your caffe/brand marketted? And was there any prime factor? I started with a soft opening, but this was a mistake – as a newcomer to Cape Town, I shouldn’t have done this, but rather I should have had a grander opening. With regards to marketing, I am against paid advertising, as the return is very minimal. It was only after about 7 months, using twitter – nonpaid social media – that I saw any returns. Is it an ideal business to involve your family in? It depends. If your family have skills related to setting up a business and share your passion, then it should work, as long as there are clearly defined roles. How has the capetonian response to your business been? Initially it was slow, then very slow and only picked up considerably when people found out I was a Nobel Peace Prize Winner and that our cheesecake was lauded as being the best. However, the response has dwindled again – Why? Many factors as follows: increased competition, price wars, small clientele base and lack of patronage. I’d like to focus on the last two – (small clientele base) – with poor income distribution, the market is 10% maximum of Capetonians that can visit a café of my quality and price – this is too small for a business that thrives on volume – this means when I’m busy, my competitors are not and so forth. Lack of patronage was the initial problem, but it remains. Most of my competitors are from Cape Town and this means that they already have customers when they open. Sure, some of them will visit my caffe once a in a while, but they will be regulars at their friends or patronage those in their network. They are willing to compromise on quality vis-à-vis enhancing their network. I also wish to add that Capetonians are quite conservative in their approach to things new. I value my conclusion on these points along the following analysis “I have by far the most publicity in Cape Town when it comes to cafes but that hasn’t resulted in a lot of customers supporting my business”. Do you plan on opening more branches? And do you have any advice for others who want to open their own caffe? I would love to open up more branches in South Africa. I have lots of advice for people who want to open their own café, but I don’t think time permits within this forum. In short, follow your passion with knowledge, purpose and commitment, BUT make sure you are part of the network or partner with someone who knows the network and never compromise on your ideals – not even once. Never listen to your competitors who advise you something is too difficult. Make sure you have enough spare capital to change your direction/strategy slightly. Plan ahead – don’t plan for one café, but two, because no one makes enough money on one shop, not even the most successful and definitely not in cash-strapped CT. Do you have any previous entrepreneurial activity or did you did it come together up as you went along? This was my first “proper” entrepreneurial activity. I did a lot of research beforehand, but most of it was learnt on the job SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
What was the time period before your business became profitable? Using my current model, we broke even in 11 months due in part to the massive media publicity we received in August. This together with aligning my costs in accordance with World hospitality rules helped to meet the target. Up until now, how many hours do you work at the caffe? At the beginning, when I opened, I was at the caffe at 6:30am to start at 7am and finished around 5:30pm, but since early 2012, I work between 8:30am and 3:30pm. This is because I focus more on my family and trust my employees more to open and close the caffe. However, that excludes the time at home, contacting suppliers and paying bills on the weekend. How much of the marketing for your business was: a) being the friendly face behind the counter and b) meeting with other business owners and clients. You have to constantly market your caffe – I have been doing this on twitter since early 2011 and it paid off. When it comes to maintaining customer loyalty, then “being the face” has paid off, especially with my special emphasis as “being the only caffe in the World, owned and run by a Nobel Peace Prize Winner”. This was what drew people in, as tourist and as future loyal customers. So, I had to be there all the time, meeting people, talking to them and even taking pictures with them. I don’t have much interaction with other business owners as I am more focused in being in my caffe. So, in summary, the way I structured my business, being at the caffe, meeting people, offering a focused customer service was more important.
Escape Caffé is situated in the heart of the Cape Town CBD at: Manhattan Place, 130 Bree Street, Cape Town 8001 Tel: 021 422 1325 e-mail: escapecaffe1@gmail.com Web: www.escapecaffe.co.za Twitter: @escapecaffe Escape Caffe is open from 7am - 4pm - Mondays – Fridays. www.saguides.co.za
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MARKETING IDEAS, PRODUCTS AND SOLUTIONS The latest range of marketing solutions available to SME’s is as varied as can be. This issue includes everything from technology to save you money, to better promotional solutions for your company or event. Also on the list, is a mobile scanner, using your hand to get what you want from Google and corporate clothing to better build your brand.”
The Little LogBook
South African law requires all taxpayers with a car allowance to submit a detailed logbook of business mileage. Any monthly tax benefits without one are lost and this is where Little LogBook comes in. The small GPS device, no larger than the average USB Flash Drive, uses a minimum of four satellites to kilometers while you drive. The device itself plugs into the standard cigarette lighter port in your vehicle, and as you drive, it logs the distance travelled, ending with downloading into the Little LogBook software on your pc. Little LogBook is also compliant with Google Maps. All collected data is logged and translated into a SARS-compliant report, using software developed and supported in South Africa. Price: R899 Stockiest: www.littlelogbook.co.za 011 05 00 999
Google literally at your fingertips
It’s not always easy to use the keyboard on your phone or tablet, especially when you’re on the go. Handwrite on Google.com allows you to write your search terms with your finger rather than typing the words on the keyboard. As you write, your handwritten text converts into words in the search box. The Handwrite feature works best in the native Android browser on Android 2.3* phones, Android 4.0* tablets, and iOS 5* phones and tablets. It’s available on Google.com in your browser, but not in other search boxes on your device, e.g. within apps. Handwrite is available on Google.com from your smartphone or tablet, and is activated in your mobile search settings.
Jetline Corporate Stationery
Custom printed stationery is an excellent way to help you build your business and brand identity. Jetline offers comprehensive printed corporate stationery solutions for all types of businesses in South Africa. The printing options include full colour, black and white, a number of die cuts and various finishing options. Jetline offer printing for all your business stationary needs including business cards, letterheads, branded business writing pads, compliments slips,presentation folders, litho printing, AutoCAD printing, board signs, flyers, brochures and much more. If you are in need of printing for your business be sure to browse the range of services on offer at Jetline. Telephone: 011 566 0500 E-mail: headoffice@jetline.co.za Web: http:// web.jetline.co.za/services/corporate-stationery
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Webtickets - Online Tickets
If you are selling tickets to any event, trying to ‘start from scratch’ and setup a website to market your event online can be time-consuming, expensive and complicated. Webtickets offers an all-in-one solution where clients can create their own box office, giving them complete control of their own event. Webtickets is an excellent idea for anyone working in events and offers a variety of services including print-at-home PDF tickets with secure barcodes, a 24/7 service which allows purchases to be made day or night, simple re-issue of lost, stolen and damaged tickets, real-time ticket sale information and multiple payment options (Credit Card, EFT and Cash). Telephone: 0861 CALL WT E-mail: info@webtickets.co.za Web: http://www.webtickets.co.za
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Promotional & Display Systems Merchandising Solutions
Looking for the right product for your next promotion or brand activation?Promotional & Display Systems offer a wide range of solutions and their services include design, print, production and distribution. The products on offer at Promotional & Display Systems include custom displays, promotional tables, display stands and promo trays. With custom printed branding options for your company logo or promotional text, and a wide range of solutions to enhance visibility of your brand, if you are looking for an innovative solution for product marketing and promotion browse the range on offer at Promotional & Display Systems. Telephone: 031 7057795 E-mail: stuart@proscc.co.za Web: http://www.proscc.co.za/index.php?option=com_virtuemart&Itemid=74
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MARKETING IDEAS, PRODUCTS AND SOLUTIONS Doxie Go mobile document scanner
In need of a Mobile scanner with industry specs? The Doxie Go is a mobile scanner which offers users the efficiency of scanning documents, without the use of a computer. The Go’s internal battery can handle 100 scans at a resolution of 300 dpi and can be charged using either the provided mini USB cable or an international power adapter. The mini USB port is used to transfer scans from the Go’s internal memory to your computer using either a photo importing software or the included Doxie software. It also houses an IFI card as well as WiFi, rendering it capable of uploading documents to the internet from the device itself. Price: R2825 Tel: (011) 462 5482 Website: www.mantality.co.za/Doxie-Go-Smart-Scanner.html
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Adapt Group
A global supplier of Mobile Vending solutions and Outdoor Event Branding equipment, Adapt Marketing, creates a practical and powerfully branded event, function or road-show. Adapt Marketing was established in 1994, since which time we have won many product design awards, with notable brands including SAB/ Miller, INBEV, Coca-Cola, British American Tobacco, Lipton, Distell, Virgin, Pick ‘n Pay, Woolworths being in their client list. Key Benefits of Adapt Rotationally Moulded Products: Exceptional insulation with Polyurethane foaming. Durability, which has been known to exceed 10 years. Manufactured using recyclable materials. Practical and aesthetically appealing product designs. All product elements are non-corrosive. All products are custom printed and moulded in your respective colour Phone: +27 (031) 764 6762 Website: www.adaptgroup.com
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Impressive Designs CC
Impressive Designs CC offers an exciting product from our Storage Range. Organise your life with these versatile utility boxes perfectly suited to your storage need - ranging from shoe boxes to toy boxes to paper trays. The interlocking design feature allows for stackable options suited to cupboards or desk use. We specialize in acrylic point of sale product displays for the retail and hospitality environments offering a wide variety of acrylic products with any required specification of size, shape and colour. Make us your acrylic specialist today - you imagine it we make it. Email us at Info@impressivedesigns.co.za or visit us at www.impressivedesigns.co.za. +27 21 592 1270
SignRug
SignRug is a Signage and branding company specializing in corporate branding design of a photographic image to be imprinted onto the Mat both quickly and affordably. These heavyduty mats are also excellent for the office and fold or roll up when necessary to be stored. With high-quality and heavy-duty mats offers you the ability to put your full color graphics, corporate image and marketing message on durable Floor advertisements mats, which helps to break the monochromatic grey of the office space. They also prove great for conferences or Expos. Their products include - Indoor & Outdoor Main Entrance - PVC LOOP 12mm, Indoor & Outdoor Main Entrance - WATERHOG 10mm, Indoor Main Entrance 14mm – Ribbed (for heavy traffic), Indoor Plush Mat 7mm, Floor Advertising Mat, Bar Runners, Desk Mats, Mouse Pads and Coasters. www.signrug.com
Branded Gifts and Clothing
Branded Gifts and Clothing are suppliers of high quality gifts and clothing at very reasonable prices. With their 500 page catalogue, offers you a wide range of products, managing the process of sourcing and branding of all your corporate gifts and clothing in one company. The Branded Gifts and Clothing range includes work for Slazenger, Gary Player Collecton, US Basic, Canterbury, Adidas, and Cutter & Buck. They offer high-quality fabrics and materials with an added attention to detail for any corporate or intricate design while still remaining affordable. Their range also includes headwear, eco-friendly as well as a gift range for men and women. Tel: 011 070 9734 Email: info@brandedgiftsandclothing.co.za Website: www.brandedgiftsandclothing.co.za Catalogue: www.brandedgiftsandclothing. co.za/ECatalogue.aspx?id=clothing
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Large Format Digital Printing Offers Profitable Outcomes Starting any new business is hugely challenging and in this two-part article by Midcomp, we aim to provide some basic guidelines for potential, large-format print business owners to assist with selection of a supplier and the correct start-up equipment. WHO IS MIDCOMP? Over the past two decades, Midcomp has grown into a formidable supplier of large format printing and finishing equipment to industry in Southern Africa. Midcomp provides world-class brands, backed up with the best service and support possible from a team of highly skilled engineers. Midcomp are also accomplished colour management and workflow/production specialists and offer courses in colour management, tailored production management and printing business management. Many of Midcomp’s long-standing customers purchased their very first machine from them and through the years Midcomp has proudly walked them through the stages of their success with quality systems and services as an active business partner. WHY A LARGE FORMAT DIGITAL PRINTING BUSINESS? Large format digital printing dominates the signage and graphics industries. Almost every advertising, marketing or branding campaign rely in some way, shape or form on the incorporation of large format digital prints. Whether you venture to the mall, your favourite restaurant or coffee shop, the airport or even an office building, digital printing surrounds us in the form of posters, banners, printed wall papers or window graphics. Not to mention the eye-catching vehicle graphics that allow businesses to get extra marketing mileage out of every kilometer travelled. The fact is, with new technology on the market providing a lower cost of entry to new businesses and the rise of visual communications, large format digital printing is here to stay and dominate the future of branding and advertising. A digital printing business offer a wide variety of service offerings to an even wider customer base in both the professional and private sectors. THE BASICS TO CONSIDER? The first steps to starting your own digital printing business is to educate yourself about the industry, investigate the other digital
print service providers in your area and decide what services you will offer as a digital printer. Will it be low volume, high margin business or high volume, low margin? There are plenty of applications to consider, from medium sized banners, signage, displays, roll-up banners, window graphics and even vehicle graphics. Once you have chosen the services you would like to offer, make sure that you know what equipment you will need in order to provide them. This is where the decision making is critical. The bulk of the financial investment will be in your capital equipment, and partnering with the right supplier is key. Remember that no single printer can ever do everything, so maximize on the key specifications important to your business.Your supplier should be able to guide you moving forward. • Which type of printer do you want to buy? UV, Solvent, Eco-Solvent or the latest in LATEX technology. (Conceived by HP) • Roll to roll, flatbed or both? The central difference between a roll-to-roll and a flatbed printer is that a flatbed printer allows printing directly onto rigid substrates (like Perspex), thus eliminating the need to mount prints to rigid boards. To make money with a flatbed, there has to be a good demand for rigid prints. • How labour intensive is the printer to operate and maintain? (More information to follow in Part 2 of this article.) • Consider the brand, print quality, operating costs of the printer, width and flexibility. Look for a machine that can print on a wide variety of media and offers applications diversity. This will help you extend your service offering to your customers and make your business more profitable. VERSATILITY = MORE SELLABLE APPLICATIONS = MORE PROFITS.
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For a start-up, low volume, high margin print operation, a suitable first investment is a roll-to-roll printer. An eco-friendly printer like HP’s DesignJet range of LATEX printers provides excellent print quality and applications versatility with the benefit of lower environmental impact. The DesignJet L26500 and L28500 printers provide an extra competitive edge in industries where solvent inks may be perceived as unsuitable. The health service sector, restaurants, fresh food stores or kids’ toy shops are a few examples where environmental health and safety are of paramount importance. Printed displays in these “sensitive” environments represent ideal applications where HP Latex Printing Technology represents a no-compromise when compared to solvent printers. Lastly, research your supplier and ensure that they have a good reputation in the market and can offer basic business advice in terms of production management of a digital print operation. Points to take into consideration: 1. How many installations have they done? This is directly linked to their expertise and they should be able to provide references. 2. Do they offer extensive service and support? 3. Is it 24-hour support, or office hours only? At some point you will work overtime to meet a production deadline and 24-hour support is critical. 4. How many trained engineers or support staff do they employ? 5. A broad product offering is also advantageous because you can source your equipment from one supplier. In the second part of this article we will investigate HP LATEX print technology in more detail and provide information on innovative applications to make your low volume, high margin print business profitable. www.saguides.co.za
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MOVIE INDUSTRY
Camera, lights, action! By Jo Kromberg
Making it big in the film industry in South Africa has been notoriously difficult for many years and only a select few have managed to make it to the top.
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ut in recent years we have seen films like Tsotsi and District 9 winning multiple international awards and even a few Oscars. But the “home-made” movie is within everyone’s reach even in mainstream cinema. The best example is probably The Blair Witch Project, a 1999 American psychological horror film, written and directed by Daniel Myrick and Eduardo Sánchez. The film received enormously positive reception by critics and went on to gross over US$248 million worldwide, making it one of the most successful independent movies of all time. The Blair Witch Project was shown at the 1999 Sundance Film Festival, and released by Artisan on 30 July 1999 after months of publicity, including a groundbreaking campaign by the studio to use the Internet and suggest that the film was a record of real events. The Blair Witch Project grossed $248,639,099 worldwide, compared to its final budget, which ranged between $500,000 and $750,000 The Internet has revolutionised marketing and distribution of films and film clips on an unprecedented scale. South Korean rapper Psy’s Gangnam Style has become the most-watched YouTube video of all time with more than 805 million views.Youtube is of course not ideal for feature films but as far as trailers or teasers go, you may theoretically never have to spend a cent on marketing your movie if you utilise the Net properly. But back to local is lekker.... Jac Williams and Jaques Le Roux are two Capetonian filmmakers who have combined their resources to start a very successful company called Man Makes a Picture (MMaP). After travelling abroad and working in the UK for four years, Jac Williams returned to CapeTown where he completed his studies at film school in 2005. He then founded Wild Lemon Productions, freelanced on big budget commercials and mini series and worked as a chaperone and a behind-the-scenes cameraman. He joined Jacques to form MMaP in beginning 2008, where he produced various corporate, educational and marketing audio-visuals as well as documentaries; also working as cameraman, and directed the documentary Mountain of Ashes. He has a passion for the industry and thrives
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Jac Williams and Jaques Le Roux
on telling stories and creating memories through the medium of film. “I got inspired at an early age by my father who had a dark room in our house. I was exposed to still photography since it was his passion,” says Jac about how he became inspired to make films. “My family are storytellers. With every family gathering stories were told. When I was in primary school my father bought a video camera. I played with that and made my own little recordings. My best childhood friend and I also watched a lot of movies, which we recorded and watched over and over again. He is now a filmmaker in Dublin.” So what does his job entail? “I’m a producer and a director. Producing entails networking, pitching to channels, getting funding, employing cast and crew, working with freelancers, looking after the crew and generally making sure the production runs smoothly. It’s not just about producing; it’s about running a company. As a director I’m in charge of the pre-production and production itself. Directing people and crew on set is a very important part of my job.” Jac studied at City Varsity in Cape Town “I think City Varsity and AFDA offer really good film courses. Vega also has a business-orientated approach to filmmaking, which I think is a very important component to filmmaking.” How long did it take you to become established and reputable? “I started studying film in 2004. In 2006 I started a company called Wild Lemon Productions. An investor, Kobus Olivier,
helped me to start this. But I think this was too soon and eventually I left and started freelancing in the commercials industry as a production assistant and then a loader. But soon I got frustrated because I wanted to make my own stuff and not work for years in one department. I hooked up with Jacques le Roux who started MMaP with Kobus Louw and we became business partners in the beginning of 2008. In the beginning it was difficult, I freelanced as a chaperone on commercials and films while trying to make the company work. It took really hard work and dedication but after five years at the end of 2012 the company is really doing great.” MMaP has an impressive body of work under its belt. They have produced corporate films for clients such as Sasol and Ceres and produced music DVDs for artists such as The Parlotones and Mr Cat and the Jackal as well as having done series for KyKNet and a documentary on the series Mad Dogs for Sky HD1 in the UK. “At the moment Man Makes A Picture is producing a show called It’s Africa’s Time for Regency Networx and CNBC Africa on DSTV 410. We are also shooting music videos and busy with a big corporate video.” Unfortunately he repeats the refrain often heard by South African filmmakers when it comes to funding – the government is not helpful or involved enough. “Getting funding is the definitely the biggest challenge facing South African film-makers today. That and the shortage of good scripts!”
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Wesgro to fund WC films With many international films frequently being shot in Cape Town, Western Cape Finance, Economic and Development MEC Alan Winde announced a couple of weeks ago that promoting the city and the province as a film destination would now fall under Wesgro. Wesgro is the official destination marketing, investment and trade promotion agency of the Western Cape. Previously the marketing of the film industry was done by the Cape Town Film Commission. He said that the agency had already started implementing plans to ensure that in the 2012/13 financial year, “film trade and investment to the value of at least R1 billion will be leveraged”. He said for the 2013/14 financial period, marketing of Cape Town and the province as a film destination by Wesgro would include “aggressive marketing” to encourage “as many international block-busters and commercials to be filmed in the Western Cape”. Winde said he was confident that Wesgro would “draw even more investments and grow the economic and job creation potential of the sector”. He said since 2010 various international film productions shot in the city had created “thousands of job opportunities” in the Western Cape. He said Wesgro would facilitate access to national rebates, develop local film audiences and undertake trade and investment obligations in collaborations with the Department of Trade and Industry. He said that South Africa’s entertainment industry was valued at around R7, 4 billion, with film and television generating more than R5, 8 billion in economic activity every year. National Film and Video Foundation (NFVF) chairperson Mmabatho Ramagoshi and chief executive Zama Mkosi also addressed the stakeholders on their commitment to fund and grow the industry. They called for transformation in the industry and for women and emerging young filmmakers to form consortiums and apply for funding for their projects. However, during a question session, a number of filmmakers complained about a lack of funding from the NFVF and wanted the organisation to improve its funding models. For the sake of transparency, Winde suggested to Ramagoshi and Mkosi that in the next stakeholder meeting they should bring a report indicating those who had applied for funding. - Francis Hweshe
Does he believe we produce good movies as South Africans? What, in his opinion, do we still need to learn to become a great movie-producing nation, recognised globally? “Yes and no to the first question. I think we are getting there. We are one of the oldest movie making countries in the world. We made over 2000 films before 1994. Because we did not have television, going to the movies was just about the one major entertainment avenue for South Africans. We really need to experiment with more genres as South Africans. I think for too long we were caught up in the slapstick comedy. I would like to see more movies made in the physiological thrillers, dramas, and romantic comedies genres. I get annoyed when so many people stress that we have tell “South African” stories. What is that anymore? Tell stories which are universal. He believes that at this stage our industry is not sustainable enough. “That is one of our weaknesses. On the plus side, we have top local crews, amazing locations and great up-and-coming and established talent as well as very professional work ethics. The international production companies who come here on shoots are invariably impressed with us.” What is the most difficult part of his job? “Getting contracts and working with people who think that the are bigger than the industry.” And the easiest? “Networking with people.” So what attributes does one need to become an excellent filmmaker? “Entrepreneurial skills, resilience, resourcefulness, a “can do” attitude, business and administrative skills, creativity, the ability to build up a solid network of industry contacts and to look after them and it definitely helps to have a rich, generous uncle!”
Source: http://westcapenews.com/?p=5649
Contacts: For more information on how to fund your film or documentary, go to the IDC’s website at http://idc.co.za/index.php?option=com_content&view=article&id=61&Itemid=168 or the The National Film & Video Foundation at http://nfvf.co.za/funding or the Department: Arts and Culture at http://www.dac.gov.za/funding.html. Go to http://www.safilm.org.za/film/howto4.html for a very informative article on funding your film. Man makes a Picture Films: http://www.manmakesapicture.co.za/contactus.htm Jacques: Director | 083 550 3946 Jac: Producer | 082 560 9226 Email: info@manmakesapicture.co.za SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
Old Castle Breweries Building Unit 105, Main Building 6 Beach Road - Box 6 Woodstock 7925 www.saguides.co.za
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EXPORT SALES FINANCE
State incentives to boost your export sales It can sometimes feel as though the tables are stacked against you. You know your business has the potential to grow and that there are, as yet untapped, markets for your products but you just you need to do to make your business expand, in the way that you know it can. You’ll be happy to hear that you are not alone.
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he Department of Trade and Industry has identified the need to help strengthen South Africa’s export industry and to this end they have established the Export Marketing & Investment Assistance scheme. The EMIA is a programme that gives qualifying businesses and individuals financial and logistical support designed to strengthen our country’s export industry and encourage foreign investment in South Africa. Right, so how does one go about becoming part of this programme? First off you should understand that The EMIA is involved in various national and international trade fairs and expos; the EMIA puts together National Pavilions, at which South African exports are displayed. The National Pavilion season starts in April, with the list of official exhibitions having been finalised seven months beforehand. National Pavilions can be local or national domestic pavilions may only be organised at exhibitions approved by the Exhibitions Organisation of South Africa. Enterprises that produce acceptable proposals and represent industries that the EMIA is trying to promote are eligible for various benefits including: • Transport of samples – The DTI will bear the cost for up to 2000kg or 3 cubic meters of freight to the event (in the case of perishable goods or high value products this reduces to 300kg.) Details will be worked out between the DTI and the applicant but generally your approval letter will tell you the mode of transport to be used. The maximum payment for transporting samples is R17,500 including forwarding and clearing charges. Note that any travel insurance for goods, along with customs papers will be the responsibility of the exhibitor. You will also have to coordinate with the EMIA preferred service providers, to ensure that they receive the right goods to transport on time. • Subsistence allowance per day – R2000 per day for international events and R1,200 for national events. You will
be given an allowance for the duration of the event, including the day before the event starts, so that you can set up. • Return economy-class airfare – The DTI will subsidise up to R13,000 for international travel costs and R3,500 for national airfare. In the case of national events, the travel distance required must exceed 200km to justify a plane ticket. • Exhibition fees – these fees include logistical costs like the rental of exhibition space, construction of stands, interpretation fees (up to R1000), cleaning costs, internet and telephone setup and installation and up to R5, 000 of the design and print cost for your marketing materials for the event. In total the DTI will cover exhibition fees up to a maximum of R45, 000 So how do you know if you qualify? You can look at their basic criteria, but in the final analysis you’ll have to write to them and see. This is possibly the most important stage of the process; you have to sell yourself and your organisation as valuable to the programme. It may not be immediately obvious how your business fits into the general guidelines of the EMIA programme. You may not be in one of the preferred industries, you may not have been involved in the export market before. This sort of problem need not be insurmountable, if you can motivate your involvement in the programme with your application form. Chances are if you can sell yourself as a candidate then you are the kind of person South Africa needs to have representing her export interests. The application form, along with more detailed rules and limitations are available on their website (www.thedti.gov.za) or from the EMIA customer care line: 012 394 1031. Be aware that you may only make four applications per calendar year. You will also need to make the application several months in advance of the actual event you wish to attend. Think long term here, ad hoc Continued on page 38
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certificate and an exporter Registration Certificate will also be required, if you are going to an international event. It is also possible for groups of companies to be represented by a trading house or an agent. A trading house or agent must represent at least three SMME’s. This option might be good for several smaller/ related businesses, who would like to attend an event but would not qualify singly. If you decide to merge your business interests in this way you should note that only the agent will be able to participate in the EMIA programme on your behalf. The DTI has specific industries that it wants to promote, so for an increased chance of being approved you should look at whether your business could fall into, or promote growth in the following sectors of the economy:
trade events must be submitted for consideration at least seven months before the event and involvement in National pavilions requires an application at least six months beforehand. Before you send off your application you should have read through the programme guidelines (http://www.thedti.gov.za/trade_investment/docs/emia/ individual_exhibitions_guidelines.pdf) to be sure that you meet the basic criteria for the program or at least can justify why you should be included, if you don’t seem to be a perfect fit at first glance. The generic qualifying criteria are as follows: • Export-readiness of applicant • Export/production performance of the applicant • Export/marketing competence of person visiting the foreign exhibition • Potentially available/accessible production/export product capacity • Type of product for export and local sales performance • Level of labour absorption, location and technological requirements • Industry in which the venture operates or is planned • Submission of general and specific qualifying documentation and adherence to general and specific criteria as stipulated for the National Pavilions offering.
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Aerospace, Rail and Marine; Agro-processing, including furniture; Automotives; Build Environment Professions: - Consulting engineering; - Civil engineering contractors; - Quantity surveying; and - Architecture. Business process outsourcing (BPO); Capital equipment and allied services; Chemicals: - Pharmaceuticals; and - Plastics fabrication. Clothing, textiles, footwear and leather products; Cultural Industries: - Film & television; - Music; and - Crafts Electro-technical: - Electronics; - Electrical engineering; and - Information technology and communication. Energy-efficiency products (for foreign direct investment purposes only); Metal fabrication; Paper and pulp; and Pre-qualified tourism.
You’ll need to put your best foot forward, have your credentials ready and sell your company as a vehicle for promoting South African trade interests. Remember you are not just putting forward your company but also the individual you have decided will be attending. EMIA will only subsidise someone with real authority and the capacity to make binding deals for your business. Your representative will also be required to man your stand for the duration of the event, so no sneaking off to the beach I’m afraid! (bear in mind that leaving the show early will cost you your entire subsistence allowance too). You will need some basic paper work for your company. Along with your application form you will have to provide a valid Tax Clearance Certificate; proof of your company’s products (brochure or pamphlet should do); proof of turnover (financial statements) and company registration. A valid passport for the person attending the event, a customs and excise registration
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So let’s say you’re eligible and you get approval. How do you go about getting your payment? Apart from payments to the EMIA’s preferred service providers, payments are made retroactively, so you’ll have to make a claim against your expenses. When you receive approval from the EMIA you will also receive a claim form. You must complete this form, stating all legitimate expenses and attaching supporting documents. You should do this within three months after the event to be eligible for payment. Be sure to include all relevant paperwork to substantiate your claim; for instance if you are claiming for the cost of air travel, you will need to present your ticket, proof of payment and the original invoice. You should receive acknowledgement of your submission within forty-eight hours and any outstanding documentation will be requested within four working days, along with a due date for providing the required information. Once approved, payments will typically take around a month to reach you. It is worth noting that no claim can be made for any of the following: • Insurance expenses in respect of exhibition material • Domestic Value Added Tax • Bank charges • Business cards • Promotional and publicity expenses, other than the expenses incurred in connection with the listing in the official exhibition directory • Storage of the transport of samples As with any programme of this type, there are also a few pitfalls to look out for. A real danger to be aware of is that any exporter, who cancels their participation in an event after having signed
the approval letter, will be liable for a R50,000 cancellation fee. As unappealing as paperwork can be it is also worth making sure you don’t skip any of the required documentation and that you send in required forms in a timely fashion. Failure to submit your six month report back questionnaire for instance can get you excluded from any EMIA funding for two years. Any business taking advantage of this funding also needs to show improved performance; participants who consistently fail to deliver satisfactory export performance (over the course of four events) can be re-evaluated and may be required to pay their costs for the National Pavilion. While I’m on the subject of pitfalls, it’s worth restating that, if the samples that you are sending to the event are valuable, then you should be sure to insure them, since the DTI takes no responsibility for losses or damages incurred. That’s a quick overview of the EMIA programme. For further details visit their website or direct queries to their general helpline: 0861 843 384. Don’t let all the official requirements and the bureaucracy daunt you. Until the DTI stepped in, it appeared that you were going to have to bear all these costs alone, if you wanted to expand your business internationally, now you just have to cross the I’s and dot the T’s and you’ll have a real partner in promoting your company. This programme could be just your opportunity to expand your business into undreamed of markets and all at a fraction of the cost you might once have faced. It’s an exciting programme both because of what it could mean for your business but also because of the potential for South Africa to grow her exports and bring investment into the country. I’d say it’s certainly worth a look if you think you’ve got a product or business model ready to take the world by storm.
Odyssey Established in 1998, Odyssey Software, a software development company that after 15 years, has grown into the leading global provider of Point of Sale software, with more than 20,000 packages sold to date.
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dyssey is one of very few companies that develop software for a very broad spectrum with its crossplatform compatibility enabling it to run on the corner shop notebook or even the large retailer’s hi-tech desktop. We can install any retail environment (supermarket, bottle store, hardware, wholesalers) and any hospitality industry (restaurants, take-away) and more specialized environments like hotels and lodges linked to a bar or restaurant. We support most hardware and our product is very fast requires the minimum hardware specifications and most notably, improved features as well as being user friendly. Being the largest independently owned POS Company, with branches all over South Africa, Odyssey holds training sessions for our clients in most of the major cities, with more than 40 vehicles servicing the installations. For any company making a decision to buy a system, service and support is very important, which is why we have infrastructure in place to ensure excellent service and support. A testimony to our great service is having the Captain Dorego’s fast food franchise run on our software, not to mention the many other Franchises. With a well qualified development team, Odyssey has managed to stay ahead of the competition by ensuring that we stay on top of the latest technology standards. We not only develop for in-office environments but have also integrated our products onto the cloud-based web and most apple and android tablets. To keep competitive, our prices over the last 10 years have stayed the same on most products. We target any size business. The Odyssey sales teams are quite large and the whole of South Africa creating is targeted in our quest to create good business opportunities for us.
The new exciting development from Odyssey Software is a new product called “Odyssey CRM”, which offers businesses full control over the software and an extended reach over the every aspect of the operations. Most CRM systems from international companies and are expensive due to the rand/dollar exchange rate, Odyssey however has brought an affordable feature rich CRM cloud-based system onto the market that can help any business owner or manager improve on sales and increase profits, hence our mantra that “NO SALES TEAM SHOULD BE WITHOUT THIS SOFTWARE”.
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eCOMMERCE
Important Questions to ask your Ecommerce Service Provider Is your business online yet? “I don’t mean do you have a website?”, the question is, can you do business online? In 2012 the number of South African internet users tipped the scales at over eight and a half million people, that’s just over seventeen percent of the population and the numbers are only growing.
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ou don’t need to look far to see how E-commerce has taken off, these days you can buy everything from biscuits to designer dresses online. With so many people getting used to the convince and simplicity of this growing market place you need to ask yourself, is your business ready to serve them? If the answer is “no” then it’s time to make a change, before everyone else leaves you behind. Locally companies like Kalahari. com, Gumtree and Takealot all have gone from strength to strength. One only needs to look at the winners of this year’s South African eCommerce awards to see how diverse the services being offered online are these days. Winners like, Yuppiechef, Bidorbuy, Property24, and HomeChoice make it clear that E-commerce is a real option for almost any business and that businesses ignore this option at their peril. If we look further afield to countries like the US or Europe then the pattern becomes very clear. Giants like Amazon, Buy.com, Walmart, Tesco and eBay have literally re-written the rules and changed the industries they are involved in forever. With so much of the South African E-commerce market still untapped, there are still plenty of opportunities out there and fortunes to be made, but the time is definitely drawing near when it will be too late to catch the pack. If you let the E-commerce side of your business slide for too long customers will have already made their choices and it will be harder and harder to break into the online market. You need to take inspiration from the successes of other companies that have made the transition into E-commerce. Remember that just as the market is growing so the technology available and your online options are increasing. If you haven’t already, it’s time for your business to take the plunge. When making a choice of who to use as your eCommerce service provider, one must ask the right questions to ensure that what you are paying for is what you’re getting. Also ensuring that there are no unpleasant surprises or complications down the road that will seriously affect your ability to do business online. The 3 Success Factors: The right technology -to fulfil your business requirements Intelligent Support Infrastructure– for effective support, hosting and technical knowhow to ensure that your technology is up and running as close to 100% as possible allowing you to focus 100% on selling and running your business. Professional eCommerce Services- that are geared to helping you sell effectively online, including online merchandising, information architecture, sales strategy and sales focused copywriting. SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
Important Questions to ask: • How many Ecommerce sites have they done before? Experience will dictate how well your storefront is built, operate and sells online • What is the core competency of your provider? If your provider offers web design, logo design, flash design, ecommerce, SEO and a number of other services, please make sure that they truly differentiate themselves in terms of eCommerce. • Does your provider have a fully functional ecommerce system? Or do they have to “build” one? Can they show you something that really works and does it work for you? If they don’t you may wait a long time to start trading online, and even then the possibility is there that the system will not work smoothly. • What happens if something doesn’t work? Do you get charged to fix it? Are there support and maintenance costs? How long will it take to get back up and running? • What kind of technical support do you get? Do you get charged for this? Can you phone in and expect immediate intelligent answers to question? What is the turnaround time for response? • Do you get access to upgrades? If so, do you have to pay for them? What kind of upgrades can you expect in future? • What kind of Bandwidth and hosting environment do you get? How fast is your hosting environment and are you hosted in SA? This makes a difference as to how fast your site loads and whether customers are going to lose patience, leave and never return. • How independent are you? Do you have to ask your provider to complete critical business tasks such as upgrading orders, adding in new content such as products and prices, running reports, creating affiliate campaigns, changing your design. If so do they charge for this and how fast do they get this done? • What kind of Security Certificates do they provide? If they do not provide full Thawte (or Verisign) certification, at least 128 bit encryption and SSL (Secure Socket Layer) technology, then they are not providing your customer with a secure place to perform online transactions. • What does your provider advise you to use for your main page? If there is no mention of placing products, specials or items that will be truly of interest to your customer, then you will know that your provider is not thinking about designing a storefront geared to sell. • Are you tied in to a contract? If so, for how many months and what are the terms? • Has your provider given you a deadline? If not you may wait a very long time to get things done and get online and selling.
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ShowMe taps into small business retail in SA going Online, going Mobile and going Global 2012 saw over 8 million South Africans accessing the internet and shopping online. This is backed up by latest figures showing e-commerce increasing its share in the SA retail market by an impressive 30% year on year. It is estimated that the nation will spend a staggering R3 billion online in the year 2014 and as a result, local business is wising up to the fact that e-commerce in South Africa is no longer an avenue exclusive to online giants such as Amazon and Kalahari. The good news is, claiming a stake in the proverbial online pie has never been simpler as set-up costs decrease, functions are automated and smart technologies take the fear out of expanding your business online. ShowMe Online Media, creators of the leading network of community websites in the country, has created a world-class e-commerce solution specifically geared at enabling small businesses to sell their products on the internet. Some of the features include a product catalogue showing up to 2000 products, a shipping calculator, a discounts calculator, wholesaler login, PayPal for secure check-out, parcel tracking, instant payment notification and safe order records. The easy-to-use website editor allows complete, real-time updating of all ShowMe websites and to top it all, the ShowMe package includes a listing marketed on the number 1 online community network in South Africa. Share in the traffic volumes and search engine results no single, small business can attract, all while securing the benefit of constant development and technical upgrades at no extra cost. Ever. Your business is not too small for e-commerce. Align yourself with ShowMe and launch yourself into the fastest growing market in the world. Costs R425 per month. Contact us. Yolandi Badenhorst - Franchise Development Manager at ShowMe™ Online Media • yolandi@showme.co.za / 044 533 6289
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ADVICE
How to keep tabs on your competitors A competitive business environment can help you to optimise your business to its fullest potential; by innovating and refining new ideas constantly to stay ahead of the competition it can only showcase and benefit your own business. Why is it important? It is important to conduct research on competitors as your findings should influence the development of your own company.Your company should offer something different from all your competitors. You should also allow the information gathered to shape your marketing strategy, which should aim to exploit the weaknesses of competing businesses. By gaining information about the activities of your competition, you will be able to counteract them more easily, identify why they are taking business from you and aid your company in defending established client relationships. Cost and Time The cost and time spent on researching competition depends on your company – you can employ measures which can be executed for free or even hire an agency to do opposition research on your behalf. Be sure to not waste time and resources researching too many different firms. Set a maximum of five companies that are all truly competing with your business. Keep an eye out for new businesses or established ones moving into your industry so as to not be caught unawares by newcomers. Competitive Intelligence There are four corners which make up the basics of Competitive Intelligence (CI); they are to determine what the goals of the competitor business is, which strategies and tactics the business employs to reach those goals, determining how well are they equipped to meet those goals and what their management assumes about the market. The tactics you use to keep track of competitors should thus be modelled to make sure all the information on which the four corners of CI is based, is gathered. Here are 5 practical tips to keep tabs on competitors in the digital age. 1. Business Websites Virtually all businesses have an online presence in the form of a business website. By thoroughly studying your competitors’ websites, you should be able to gather information on the business of your competitor and determine what they place
value on, what are the primary benefits or services offered by them and who their target market is and whether it overlaps with your business’ target market. You can also find out who is linking to your competitors’ websites by making use of the URLinfo tool on FaganFinder.com. By knowing who links to your competitors’ websites, the business network, suppliers and customers of your competitors can be revealed. As it is believed that websites with blogs associated with them, receive up to 54% more traffic than those without, most companies now have blogs maintained by executives. It is recommended you read these blogs on a regular basis to stay on top of what they are working on, in which ways they are innovating and to see what their future plans are. 2. Search engine research You can set a Google Alert to make you aware of any mention of your competitors in digital media. Google will send you an email as-it-happens, daily or weekly, depending on your choice. The alert is triggered whenever one of your keywords are made mention of in the online media of your choice, be it in an article, blog, video or discussions. The service is free. Google Trends is another Google service which might be of use. On Google Trends you can research the number of searches conducted for your own and competitor businesses, thereby effectively measuring the differences in brand awareness, stay on top of what’s happening online regarding your industry Spyfu is another very useful website which provides detailed reports of the most successful search engine and advertising keywords – paid and organic – associated with your competitors’ websites. This could be particularly useful in determining the keywords most likely to be of value to your company should you make use of Google AdWords campaigns. 3. Social media It is recommended that you follow your competitor’s social media accounts, by liking their Facebook page, following them on Twitter and connecting with them on
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other relevant platforms, particularly on LinkedIn, where you can also connect with the businesses associated with your competition. By following your competitors on social media, you will be aware of any specials or new product launches they are offering or advertising.You can also see how they gain a social media following, their interaction with their following and what type of content they’re sharing. If they are doing any aspect of these things well, you can draw inspiration for your own social media marketing, while if they are failing in an area, you can know what to avoid. Furthermore you can use make use of social media management platforms to monitor the posts or tweets posted within a set period of time about keywords concerning your competitors, to know what the public is saying about them. 4. Newsletter subscriptions Most companies nowadays have a newsletter to which users can subscribe free of charge. By signing up for your competitors’ newsletter, you can stay updated with the offers and information they are sending to potential customers. 5. Benchmarking By using statistics offered like websites like Alexa, you can gain knowledge about the popularity of your own business as well as your competitors’, and how it fluctuates. By making a study of and analysing the data available, significant information about not only competitor businesses but also the needs of potential customers can be gathered. Going to all this trouble of gaining information on competitors is of no value if it isn’t appropriately analysed and influencing the development and strategies of your own company in some manner. It is also of great importance that all staff has access to the relevant information, as it might influence the thinking of the marketing department in a massively different way to the sales department. Finally make sure that you don’t focus so much on the competition that you lose focus on developing your own company and truly being competitive. www.saguides.co.za
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e COMMERCE
How to start a successful e-commerce store With a new online store opening its doors on an almost weekly basis, the time to stop putting off that business idea is now. No other period in financial history can boast the ease and amount of choice open to today’s entrepreneur.
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ith more than 8 million internet users in South Africa, roughly 20% of the population, the prospective client list is quite high, with a large number of Internet users making online purchases. But how should you go about this? How would you compete with the well-funded chain stores on a shoestring budget? Simple really, online is the new trendy store. Everyone loves having the convenience of not having to leave home to get what he or she might want. Why Go Online? Online sales could positively impact the total sales and brand awareness of your company almost immediately. Once your company has an online presence, a home based business or small local service, has a national or even international base of potential customers. International borders as we know them, cease to exist. Entrepreneurs with new enterprises are found to have a significant appreciation for the cash flow which internet sales provide virtually immediately. A study found that conducting business online leads to faster payments and simpler ways of conducting business. When a small business has an online presence, they are more easily able to bridge the gap with larger competitors. A small business
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can be as attractive and customer friendly as a major chain store, while retaining a distinctiveness which allows them to attract more potential customers. Research shows that there is an immense amount of money being spent via the internet. Following the recent holiday of American thanksgiving, on the traditional US sales day, Black Friday, record sales in excess of $1B were made by online companies like Paypal and Amazon. Sell your goods through a vendor to gain customers There are several online stores available that are willing to sell your goods at a small commission with minimum admin required. Reputable companies like Kalahari and Amazon sell products on behalf of users at 6% commission and 0.99$ flat rate respectively, following a simple registration process. Third party websites like Bidorbuy, which claims “Africa’s largest online marketplace”, are perhaps the easiest platform on which to gain customers for your product and business. Hundreds of thousand South Africans actively search for products on their site. SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
It follows a slightly different scheme to Amazon and Kalahari, requiring more effort on the seller’s part. They however charge no more than 5% commission and your products can be up for sale on Bidorbuy in less than 30 minutes. Other third party websites like Gumtree, JunkMail and OLX classifieds charge no fees and are incredibly popular. They allow buyers to directly contact the seller. These sites, along with Bidorbuy, provide the opportunity to gain clients in great numbers as they have a huge number of established users. An online presence on a number of these sites will almost guarantee sales. The resources needed to set up your own e-commerce website If using a vendor does not suit your business, it is best to set up your own e-commerce store. Some capital is required to pay for the administrative costs of running an online store. Webhosting and registering a URL are essential and costs which have to be undertaken. Additionally a professional web designer can be hired if you are unwilling to spend time on the learning curve which exists when designing one yourself. You are also likely to have some costs associated with buying website software, such as specialized e-commerce themes or plugins. The resources required are thus not great and your business will benefit from the business perks of having an online store you will not have to be legally registered as a business, as you will more than likely be operating as a sole trader, which ensures that taxes resulting from your business activities will be minimal. Your e-commerce store website The first order of business is to register a URL for your online store. Ideally this should contain the name of the business or if you are selling a very specific product, contain a keyword associated with the product. Registering a URL can be done very easily via numerous websites, including Google Accounts. Most companies that provide hosting allow for you to register an URL through them when you secure hosting. When choosing a webhost, it’s best to go with a company known to be reliable. You should also take into consideration the location of your intended customers. If you hope to target an international market, it would be best to go with an American hosting company, like Bluehost or Dreamhost, as they have servers in the USA and Europe, which means your website, will load faster to users on either of those continents. If you are mainly targeting a South African client base, it’s best to go with a South African based company, like MWeb. The next step in creating your e-commerce store will be to enter website development. You can do this yourself or if the task seems too great, hire a professional designer. With modern software, it is relatively simple to create your own website. Using web software like WordPress or Magento anyone should be able to come up with a good, streamlined design for an online store. At this point it is important to consider which payment methods you will offer your customers. Customers are often more comfortable using a payment intermediary like PayPal or PayFast as it means that they do not have to type their credit card and other personal information into numerous websites. Transaction security will result in greater SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
number of sales. It also provides business owners with measurably less risk of losing valuable client data to hackers. Find customers for your online store • Selling products on well established websites As mentioned, several marketplace websites are incredibly successful in South Africa. As several of these website, including JunkMail, Gumtree, OLX and Bidorbuy have a huge built in user base, you can access a very wide group of potential clients by tapping these platforms. In addition to raising sales, it can also build brand awareness among buyers who purchase from you, which can in turn drive to your e-commerce website in future. • Good copywriting, SEO and advertising. It is important to market your products well on your website. A good product description – simple and not filled with too many faux buzzwords - will not only appeal to customers, but also aid your website in appearing higher on search engine page rankings. There are other measures which can be taken to help you gain a higher page rank too, though these are numerous. A brief study of SEO techniques is essential and could prove to be vital to your business’ success in the long run. Email marketing and social media campaigns can benefit sales too, as can paid search campaigns using one of any number of advertising options. Google’s AdWords service whereby you can advertise on Google results pages and a multitude of other web pages, is most popular. Small companies might however benefit more – and obtain cheaper ad rates – on smaller intermediary advertising services like Ad Dynamo. Ultimately it would be ideal if you advertised on niche websites and blogs which relate to the product you sell. Not only will you get a targeted audience, but you could also be supporting someone else’s’ small business in lieu of major corporations, like Google which operates AdWords. Go online today On the internet trends change at a far greater pace than anywhere else. But the principles of starting and operating an online business have remained relatively unchanged. For the first time entrepreneurs can reach a global market through clear, simple and relatively inexpensive measures. Six practical tips for starting your online store 1. You can check to see if the URL you want for your business is available at whois.com. 2. For free, reliable and easy to manage web software, WordPress. org is recommended. You will be able to design the site yourself with the help of official documentation despite inexperience with web design. The newer versions of WordPress allow for customization of the look and function of the website to the finest degree. With the free e-commerce plugin from WooThemes.com it also means that you can get all the web software you need, to run an online store, free. 3. Excellent international webhosting is provided by BlueHost, with competitive rates and full support. They offer a one-click install of most content management systems, including WordPress, which significantly decreases the skill level required to create the website. BlueHost offers packages from $8.95/month. 4. MWeb offers reliable local webhosting services, their Ultra package costs R99/month.
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5. Use AliBaba.com as an intermediary to source your products. With 1.5 billion products and several thousand product suppliers, obtaining the products you hope to sell becomes significantly easier and less expensive. 6. Postage and packaging can increase the cost of a product to such an extent that buyers opt out of purchasing over the internet. Make sure you offer customers the best courier rates available by using franchise courier services instead of the Post Office’s Speed Services, as rates are sometimes up to R40 less expensive with couriers like RAM and Citi-Sprint, particularly in urban areas. Finding customers for your online store In South Africa, e-commerce websites lag behind in sales and users a few major classified ads listing websites. In South Africa, internet shoppers seeking a specific product, search on these sites, whereas in other countries the norm is to search for an appropriate online store. As such, online stores targeting South African clients are well served by offering their products on sale on these classifieds websites. JunkMail.co.za An extension of newspaper based JunkMail classifieds and Cape Ads, Junk Mail Online was launched in 1998 and one of the first established online businesses in South Africa. To sell a product on JunkMail a basic form needs to be filled in which contains all necessary info to accurately describe the product for sale. You can place an URL in the ad to link to your online store. Gumtree.co.za Gumtree is an international classified listing website which operates in six countries. It is owned by eBay. Gumtree is one of the most visited websites in South Africa. It works in a similar fashion to JunkMail, with classified ad being posted after filling out a form with details of the product for sale. Gumtree however requires one to have a physical address and blocks all URL’s from postings. OLX.co.za Despite being the youngest company on the list, founded in 2006, OLX is one of the biggest classified listings sites in the world; it is available in 96 countries. OLX functions in the same manner as Gumtree and JunkMail and is gaining in the online classifieds market in South Africa. OLX offers the option onsite to share your ads on Facebook and Twitter. Bidorbuy.co.za Bidorbuy ranks as the 5th most visited website in South Africa. It follows a similar model to eBay where customers can buy items at auction and marketplace. Buyers and sellers interact directly with one another. Buyers can also rate sellers on their service and quality of product; this rating is displayed when products are offered on sale, thus providing buyers with some reference as to the sellers’ credibility. Both buyers and sellers can also apply to have their accounts verified. This involves providing a copy of your ID to Bidorbuy and paying a nominal fee for them to run a credit check on you. Products bought from verified users fall under Bidorbuy’s Buyer Protection Programme. Listing a product on Bidorbuy is fairly simple, and potential buyers can view you ad –and bid or buy – almost instantly.
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MOBILE TRENDS
The Top Mobile trends of 2012 (and some advice surrounding them)
2012 has been the year for most of the new technologies and software to be put into use. With constant change needed in the business sector to simplify and improve the flow, the ever-evolving mobile and commerce sector has delivered the following list of mobile trendsetters that have proven invaluable to the development of the ecommerce industry.
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he top mobile trends in the evolution of mobile commerce are:
Mobile web browsers More than 70% of current mobile phone manufacturers sending out models with web browsing capabilities, and that number likely to reach 100% in the next few years, the mobile commerce sectors has received a major boost VIA mobile traffic. Google expects at least 44% of the last minute gift searches to be done by mobile browsing. Mobile Coupons According to a recent survey by AT&T, mobile barcodes have the biggest potential growth area for innovation, with a 66% of respondents agreeing that it will drive new mobile marketing campaign concepts in 2013, with most executives ranking it as the second highest mobile marketing priority of 2012. Mobile Commerce International banks have started developing a mobile transactional capability called Swipe to Pay, which is planned to replace credit cards within the next few years. Also on the cards is allowing an enabled mobile phone to be swiped passed a merchants reader to pay for goods. PayPal has recorded global mobile payment increase by 516% on Black Friday and 55% on Cyber Monday this year. Another new capability is already in use by some companies, i.e. allowing customers to add items to a shopping cart by taking a photo of their desired item, or its barcode, in the physical store. Mobile Video With the arrival of HTML 5, in email and on the web, brands have been given more to work with in terms of being able to build videos, animated graphics or even audio, into mobile newsletters and\or mobile sites. HTML 5 also allows brands to reach their customers VIA a media reach campaign while sticking to uniform mobile system requirements. Mobile Applications Two of the most popular mobile applications currently in use are:
• Advanced Mobile Searches To bring forth further evolution to mobile searches, apps have been created to allow users the have follow-up actions to their search, such as making a call or reservation, buying a ticket, placing an order, etc. • Object Recognition High-end mobile devices have higher sensory and processing capabilities, which enable sophisticated applications to recognize user surroundings, specific objects of interest, and advanced search capabilities by using the onboard camera. This has been evident since the beginning of 2012 with the increase in mobile devices being instilled with Augmented Reality software. Mobile Social Media Due to mobile devices being the most personal form of technology a user constantly interacts with, it is unsurprising that the social media forum represents the majority of a consumers’ time spent on a mobile device. comScore has recorded that 45% of Facebook traffic and 55% of all Twitter traffic is generated VIA mobile use. Unlimited access to browsing capabilities via mobile Internet hasn’t just changed how consumers access the social web but also what they do when they get there. One of the newer developments has been to integrate touch screen web-enabled monitors in stores allowing consumers to access an entire catalogue, browse the website, and in certain cases, create their own version of the product. Things to consider Many brands want to get onto the mobile site trend, but ignore the important factors that allow these sites to flourish. The pitfalls affecting most brands are: Rushing to complete the site OR improper planning. “Skimping” on the budget. Thinking “too far ahead”. Implementing software they don’t understand or have no real use for. Rushing to complete the site OR improper planning Without taking the time to build a functional site or planning what the site is actually
meant to achieve, brands confuse the purpose by wanting to be a part of the trend. A rushed site not only confuses consumers but also damages the brand dependability. The second most important factor of a mobile site is to mirror the brand identity of the full site. “Skimping” on the budget Many brands are reluctant to extend the necessary funding it takes to build a worldclass site and, in most cases, choose the cheaper option of having mediocre site built at the fraction of the cost. The only advice on this topic is DON’T DO IT. Thinking “too far ahead” Many brands like to stay on top of the new apps and software advances that are brought out on an almost monthly basis, which is not a bad thing, the pitfall, however, is understanding your market and your location. Certain international mobile trends are too great a leap for certain infrastructures. Implementing an HTML 5 site is a brilliant way to ensure brand progression but ensuring that your site also has a non-HTML 5 interface is critical. HTML 5 is growing and becoming commonplace but it hasn’t become the generals standard as yet, with most mobile devices not capable of handling the media-rich interface, capabilities and features. To ensure the best site possible site build, have an HTML 5 and non-HTML 5 interface to your site. Implementing software they don’t understand or have no real use for Too many companies have made the mistake of clinging to the new tech, when in most cases it serves no purpose to their business sector.Trying out new apps is a way to stay in the mobile loop, but implementing software that is redundant or without use could cost your company, not only in turnover but also in time used to generate turnover. If software has no real-world application to your company, scrap it and find a simpler, relevant software that builds your brand and that everyone one, from the CEO to the PA, can understand. Continued on page 51
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SPECIAL REPORT: The top mobile trends of 2012 and what it means for 2013 Mary Meeker, a former investment banker turned venture capitalist who works for Kleiner Perkins Caufield & Byers, one of the most influential Silicon Valley venture capitalist firms, published her annual Internet Report recently. Meeker gained fame as an early Wall Street Backer of the internet and championed the stocks of successful companies like Google, eBay, Amazon and Microsoft early on. In her 2012 Internet Report Meeker indentified several interesting internet trends. Perhaps most noteworthy is the manner in which mobile devices are taking over the market. We review the five most remarkable mobile trends identified in the report. 1. Mobile internet traffic is growing exponentially At the close of 2009, mobile traffic represented 1% of all internet traffic. A year later and it was up to 4% and as of November 2012 mobile traffic has grown to 13% of all internet traffic. This trend doesn’t look like it will abate anytime soon either as continued announcements of surging smart phone and tablet sales is made. What does it mean for your business? You should make sure you are able to accommodate mobile browsers. Having a mobile site is great, but perhaps of greatest value in the online industry right now is to have a responsive website – one which dynamically adapts to the browser and screen size upon which it’s viewed on.
2. There is immense room for growth in mobile advertising Advertisers – particularly small and medium enterprises – are always in search of marketing options with the highest return on investment. Since the amount of time spent on mobile phones is not matched by the level of spending on advertising on the platform,
it seems mobile is great opportunity for advertising. What does it mean for your business? You should investigate advertising channels on mobile devices. You could have access to millions way ahead of every other company and potentially save costs as it does not yet appear to be a very popular – and thus expensive – form of advertising.
3. By the second quarter of 2013, more tablets and smart phones will be in use than personal computers. In 2012 the number of smart phone users increased to 1.1 billion – a growth of 42%. Despite this, still only 17% of cell phone users worldwide are smart phone users, indicating more significant growth to come. Similarly use of the iPad has increased by incredible numbers; the rate of uptake of the iPad has outstripped that of both the iPod and iPhone. Three years ago, less than 2% of American adults owned a tablet or an e-reader. Now 29% own some sort of tablet or e-reader and young people and children are very interested in owning a tablet or e-reader. Clearly the popularity of mobile products will remain on the increase while the use of personal computer’s decline.
to make sure customers can easily get in touch with support, register for newsletters and view text, image and video content with ease. Consider the use of mobile technologies to support your business, like instant notifications and location tagging and awareness. 4. E-Commerce via mobile devices is continuing to increase The amount of shopping done via smart phone and tablet is increasing as better technologies are developed to enhance the shopping experience of mobile device users. A record 24% of all online sales done of 2012 Black Friday – sales day in the US – was done via mobile devices. What does it mean for your business? Your online store should be optimized for mobile and you should consider adding special features that take advantage of the capabilities of mobile devices. Some companies now make it possible to virtually try on products using the camera on mobile devices.
5. Revenue from mobile apps and advertising continues to increase Mobile apps are becoming monetized, with income from app monetization and advertising exceeding 19 billion in 2012. What does it mean for your business? You should be investigating the mobile business apps available to individuals which could increase the productivity and efficiency of your business across the board.
What does it mean for your business? A mobile strategy which covers your customers’ bases is vital. As mobile devices become the norm, it’s important
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Running your own business as a woman – the Do’s and Dont’s By Jo Kromberg
A few years ago I met up with a very prominent editor of a famous women’s magazine for lunch. We hadn’t seen each other for a while and I asked her in a joking fashion whether she still makes her female employees cry at work on a daily basis. “No,” she replied, hardly cracking a smile. “That honour now belongs to...” (I cannot print the name my lunch companion mentioned – suffice to say, she was the editor of an opposition women’s magazine).
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hy do women do this to each other in the work place? Of course, not in all work places and not all women but there is definitely a different type of dynamic between a majority of women working together and a balance of men and women working together or a man running the show. In the antithesis of this scenario, another friend who also runs her own company, befriends her (mostly) female employees and makes them her confidantes – in my opinion, equally irresponsible and misguided. Boundaries apply in every single relationship in our lives, not the least of which in the “boss-worker” dynamic. For some reason, no matter how far we have come as women in terms of asserting our rights and privileges, we still can’t quite get it right the way men can. There seems so be a very unfortunate disparity in the way a women’s professional needs are perceived – by staff, suppliers, clients and funders – as oppose to mens’. Many female entrepreneurs become business owners via a combination of necessity, opportunity, family considerations and hard work. It is seldom – and this is of course arguable – that the female entrepreneur emerges solely as a result of gritty determination, resilience, rebellion, aggression, self-confidence and/ or lofty ideals. There are of course exceptions (refer to above-mentioned hard-core women’s magazine editor) but most female entrepreneurs do not necessarily possess the one-track minded pursuit of financial reward that most male entrepreneurs seem to posses. When you are in charge of your own company as a woman, the challenges are never-ending. I have not met one woman in charge who doesn’t second-guess herself on regular basis no matter how confident she is. So here are a few – hopefully helpful! – tips on how to carry on succeeding in your own business: DO’S: * Know and love your business. Debbi Fields, founder of Mrs. Fields Bakeries said the following: “What I wanted was to be allowed to do the thing in the world that I did best — which I believed then and
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believe now is the greatest privilege there is. When I did that, success found me.” • And if you can’t know everything about certain technical or specialized areas your business requires, hire the right people and stay out of their way! There is nothing more annoying than being micromanaged by your boss in the area of your expertise. • Your employees are your employees – NOT your friends. Be professional and courteous with them at all times but there is nothing in the rulebook that says you have to be their baby-sitters, psychologists or mommy. In fact, getting involved in employees’ personal lives or – perish the thought – confiding in them about yours, will create unnecessary complications in case they have to be disciplined for instance. • Be honest. If the business hits a rough patch and retrenchments or salary cuts become necessary, your employees will know, make no mistake! Treat them like adults and discuss the situation openly, no matter how painful it may be. • Be fair! What applies to one, applies to all. There is nothing more dangerous or destructive in a company when the employees feel that one or more of their colleagues are given preferential treatment by the boss. Don’ts: • Don’t make your business your life. As far-fetched as it sounds, to your friends and family the story-of-the-day about how your supplier tried to overcharge you is not as edge-of-your-seat stuff as it may be to you. Keep your business and private life separate as much as possible – even you need a break! • Whatever you do, never, and I mean, never humiliate or scold an employee in front of other staff. There is nothing more damaging to productivity or moral as an out-of-control screaming fit from the boss. You will be the laughing stock of the company and you will pay dearly so watch that temper! • Don’t expect the world. Your staff are people. Manage your expectations carefully and make allowances without appearing weak or tolerating unacceptable behaviour or levels of productivity. The rest is basic common sense and a bit of luck... Good luck in whatever business venture you may pursue!
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WOMEN IN BUSINESS
Dti sets up support structures for Women in business The Gender and Women Empowerment (GWE) is an initiative set up within the Broadening Participation division of the dti. The mandate of the unit is to provide targeted support to women enterprises through programmes and policies that ensure and accelerate the sustainable participation of women in the mainstream economy.
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he GWE has introduced various initiatives catered to women, with the goal of developing sustainable enterprises - that contribute to SA’s GDP, employment, equity and economic transformation - to enable women to have equal access to and control over economic resources. Some of these initiatives include: South African Women Entrepreneurs’ Network (SAWEN) Provides women entrepreneurs with tailormade business solutions, opportunities as well as information-sharing platforms. It serves as a policy advocacy and capacitybuilding resource. The dti identified and adopted SAWEN as a strategy for fast tracking support provided to women in addressing challenges faced when establishing and sustaining their enterprises: SAWEN is a membership organization set up to represent, and articulate, the aspirations of all women entrepreneurs that operate within the South African SMME sector. The support services under the banner of the SAWEN programme include: 1. Effective network forums. 2. Training and Capacity building programmes. 3. Relevant business information and advice that leads to business opportunities. 4. Facilitating trade missions and exposure to the global economy. 5. Maintaining a data base of South African women entrepreneurs.
Technology for Women in Business (TWIB) TWIB aims to fast-track womenowned businesses through the use of technology, innovative solutions and business applications. Its mandate extends to programmes that encourage girls to choose careers in engineering, science and technology bay, by facilitating access to educational information, career opportunities, as well as academic and extra-mural learning programmes. Isivande Womens Fund (IWF) IWF is an exclusive women’s fund established by the dti. It aims to accelerate women’s economic empowerment by providing affordable, usable and responsive finance. The Fund is managed by the Industrial Development Corporation (IDC) through a development fund manager. The IWF assists with support services to enhance the success of businesses. It pursues deals involving start-up funding, business expansion, business rehabilitation, franchising and bridging finance. Bavumile Skills Development The Bavumile project is a women’s empowerment initiative aimed at identifying talent in clothing and textile and arts and crafts sectors among women. It is a formal training programme to develop their expertise in production of marketable goods and creation of formal enterprises in the creative industry. Bavumile provides training to mostly rural-based women to improve the quality of their products and enable access to both domestic and international markets. With the focus being on skills development and empowering women economically, Bavumile seeks to: • Recruit women who are currently involved in the creative, clothing and textile
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industries, with skills in embroidery, sewing, weaving and beading. • Provide specialist skills training and assist women to establish their own enterprises or cooperatives. • In partnership with SEDA, provide additional training in packaging, customer service, basic bookkeeping and registering a business. • A Five day training session is provided to groups of women in municipalities who are then provided with sewing machinery to grow their businesses. Techno Girls The Techno Girls programme aims to encourage female learners to explore and access careers of their choice, particularly those in science and technology. This year’s programme will include job-shadowing to provide real-life work experience through the dti network of institutions. The angle taken by the dti in the campaign is to encourage young girls to contribute to the country’s economic development and growth by becoming creators of wealth and job opportunities. The programme targets the 10 best schools from the previously disadvantaged communities. 10 learners per school are selected to participate in the programme with a total of 100 learners per province participating annually in different provinces. Each school comes up with the best entrepreneurial idea which is measured in term of Credibility & feasibility, Practicability, Originality and Durability. These funding programmes have essentially been set up to cover the broadest spectrum of needs in the women’s business district. With the aim of getting the level of access and prestige of women in business to the same level as their male counterparts. Tel: 086 184 3384 Website: www.dti.gov.za www.saguides.co.za
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2nd Take: Building a brand 2nd Take was conceived in early 2010 and opened its doors in June of that year by Bettina Berlep. Beginning her career in the travel industry, with an exposure to the hospitality and tour operations as well as gaining experience in student travel and the airline industry.
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his lead to a move into the international outsourcing industry, a local recruitment agency and a transcription and translation service. Having spent the last ten years involved in the managing and growth of existing businesses as well as the starting up of new ones, fuelled by a love for possibilities and the potential for growth in new business ventures, 2nd Take arose out of conversations with friends regarding the lack of quality second hand clothing stores in South Africa. The need for this type of business venture was evident as second hand stores are cornerstone within the international fashion industry and, to a large extent, designate the trends amongst fashion fundis. Having no formal experience within the fashion industry, other than the appreciation for beautiful garments, Bettina decided to take the plunge. We had the chance to interview her about 2nd take and its inner workings. SAGBO - How long did it take to open your business? BB – 2 and a half months. SAGBO - What are the biggest launch challenges have you faced since staring your business in terms of attracting customers/clients and getting finance? BB - Financing is challenging, as banks don’t lend to new businesses, and getting enough feet through the door, throughout the winter months, especially in 2012. SAGBO - Did you have to compromise your pricing in order to get business? BB – No. SAGBO - How important is the Internet to your business? BB - Very important.
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SAGBO - How many people use your online ordering service and what percentage of your business is generated online? BB - Far too little it varies from 2% to 20% - the online business holds great growth potential for us. SAGBO - What areas/regions does your company operate in? BB - The store is situated in Cape Town and the online store services SA and Namibia. SAGBO - Do you manage the business yourself? BB - Yes. SAGBO - How many staff do you employ? BB - 5 permanent staff plus interns. SAGBO - How many hours per day do you work? BB - On average I work a 13 hour day. SAGBO - How do you market your business? BB – We use online and traditional marketing channels. SAGBO - Would you recommend starting your own business? BB - Ask me in another year. SAGBO - Would you open another outlet? BB – Yes. SAGBO - How long will it take to recover your initial investment? BB - Good question! SAGBO - How would you rate your customer loyalty? BB – Very high! We have lots of repeat business. Those who shop with us once, will shop with us again. SAGBO - What growth potential do you see for your business in South Africa? BB – I foresee having a 2nd Take outlet in every major town, plus a striving online business. 2nd Take has had garments featured in the fashion pages of most of the local publications, namely HuisGenoot and You magazine as well as the South African editon of People magazine.
Contact: Bettina Berlep Tel: 082 777 2282 16 Regent Road, Sea Point 8005, Tel: 021 434 5878 Unit 3, Roeland Square, Roeland Street, Gardens 8001, Tel: 021 461 9360 Facebook: www.facebook. com/2ndtake Web: www.2ndtake.co.za SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
ENTREPRENEURIAL SPOUSE
The Entrepreneurial Spouse: The Vital Role Of The Significant Other One of the most critical (and most unsung) roles in an entrepreneurial company is not the founder or owner, it’s the role of that person’s significant other or spouse.
Do you get ‘buy in’ from your partner?
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his has always been true, but the challenges (and importance) of these individuals is even greater and more crucial in the challenging business climate we currently face. There is a somewhat prevalent myth that being the spouse of an entrepreneur is highly desirable, that it’s great to be married to someone who loves their work and is taking creative risks. That “being your own boss” leaves you with a greater income and higher flexibility to take time off for vacations or to attend to family needs. In actuality, the opposite is far more typically true. The truth of the entrepreneurial life is a tornado of long hours, high risk and uncertainty. Despite their good intentions, entrepreneurs can be the world’s worst spouses, since they are very typically investing the majority of their time and interest in their companies, even during prosperous times. If an entrepreneurial company fails, it can often take the family’s finances down with it, which can lead to marital troubles or even trigger divorce. Forbes contributor Dale Buss recently reviewed a book by Meg Hirshberg on the topic – For Better Or For Work: A Survival Guide for Entrepreneurs and Their Families. In addition to the typical topics, Meg addresses some of the tougher issues such as how to handle the failure of a startup, the strains of “serial entrepreneurship,” and how to handle some of the extra stresses that happen when a company owner falls ill. Meg concludes her book on a positive note, Buss says, encouraging entrepreneurs and their families to strive for and focus on the “magic moments”, when owning a company “makes possible a family’s most remarkable experiences.” There are ample articles that discuss the negative aspects of being an entrepreneur’s significant other or spouse. But today I’d like to take the opposite approach and to highlight and acknowledge several highly inspiring individuals for the roles they’ve played in their spouses’ success. The first is Darlene Hatch, the wife of Brent Hatch, CEO of ProFire Energy. This exciting company began in March, 2002 with just four people, as pioneers in the technology of burner management. They make fossil-fuel combustion
operations safer, greener, and more efficient by ensuring the burner that keeps the fuel at the proper temperature for operation is safely lit, or remotely and safely re-lit, and that it is operating at maximum efficiency. Today the company is a multi-million organization with presence in the U.S. and Canada, publicly traded, and on its way to making an impact on the oil and gas industry worldwide. But prior to ProFire’s success, Brent recalls, it was his wife Darlene who bore the worst of the brunt of failed prior entrepreneurial efforts. “She took the calls from creditors. She gave up vacations, endured the long hours when I couldn’t come home.” “People look at the joy we’re having know and say ‘I’d give anything to be able to play at a business like that,’” Brent observes. “What they don’t realize is that the entrepreneur’s spouse already did give everything, in some cases have done so multiple times in order for the entrepreneur’s dream to have the possibility to succeed. I would not be where I am with this company were it not for Darlene.” Hatch notes that the role of spouse is so critical to an entrepreneur that ProFire interviews spouses as well as individuals when considering key hires. Jeanne Hall, wife of Forbes contributor and lifetime entrepreneur Alan Hall is another example. Those who follow Alan’s articles know that prior to his homerun successes with MarketStar, Mercato Partners venture capital, and his vast base of earlystage investments, he had experienced several entrepreneurial failures. He recalls the worst moment of his life being when, in his forties, one of those failures left him with a business debt so deep that it required Jeanne going back to work as a teacher and counselor to help to pay it back off. “She managed to raise our children on a salary that was below the poverty line for an entire two years,” he recalls. Even now that he has vast entrepreneurial holdings, Alan notes with humor that while she fails to be unduly impressed with his standing, her lifestyle (and theirs) has remained largely the same, she drives a car with enough miles on it that he claims to have been tempted to buy her a new vehicle and pretend he had won it on “Let’s Make A Deal,” but he fears that even at that point, she’d refuse it and find a way to give it away. While she would have the option of affording herself every leisure, she prefers to spend her time in work on philanthropic efforts through their church and through their Hall Foundation instead. In my own case, prior to my opportunity at Fishbowl, the inventory software company I now lead, my wife Paula Williams has had ample experience with the highs and lows of being married to a “all or nothing” entrepreneur. We have been married for 33 years. While bearing and raising 5 beautiful children, Paula has
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endured moving 20 times. A highly conservative person by nature, married to someone who envisions himself as full-on warrior, she has been steadfast in her devotion, whether the bacon was being brought home or not. In her other life, entrepreneurial spouse Paula Williams sings with the globally acclaimed Mormon Tabernacle Choir. In either situation, she has allowed me to go and be “me.” Ten years ago I had “bet the farm” on a massive land reclamation in our valley. After three years of investing everything we had, all in a day, it seemed, it was gone. Everyone jumped ship and I was last man standing. I anguished and sought counsel over what to do. Should I declare bankruptcy? Not knowing if the house would be lost or the utilities shut off could force many significant others, spouses and children to pile onto the equation with their own additional negative stress. My family remained steadfast in cheering me on. We had a close friend who literally forced his way into the endeavor with additional investment and when the deal went south, he left threatening messages on our phone and wrote letters to my children telling them what a loser of a father they had. Three years later, we had survived the process of repaying more than $1 million in debt. We paid off 72 credit cards (without missing a payment). The leases, everything we owed, all paid off. At any time, if the negative pressure I faced had been coming from within my home, I would have foregone my entrepreneurial life and chosen a different path. Because of Paula’s patience (and because the creditors had been willing to work with me, thankfully) I was able to avoid bankruptcy and to remain standing when the opportunity to discover and lead Fishbowl came along.Without the strength of our Fishbowl family we would have been unable to endure losing our oldest son, Cameron (our CAM Courage Above Mountains foundation is named in his honor) to a rare cancer just four years ago. The trials we face can either make us or break us. When the challenges have nearly broken me as an entrepreneur, my wife and my family have remained strong. In conclusion, I’d like to issue a challenge today to every entrepreneur who is supported by a steadfast spouse or a significant other – don’t ever forget that your ability to “be who you are” and accomplish business miracles is equally dependent on them. Let us always appreciate, respect and reward the vital roles that they also play in your ability to reach an entrepreneurial goal. Author: David K Williams is the Chief executive Officer of Fishbowl
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BEE AMENDMENTS EXPLAINED
New BEE codes still misguided By Jo Kromberg
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remember a conversation I had with Alec Irwin at a dinner hosted by the National Council of Provinces many, many years ago relating to Black Economic Empowerment. The DTI was in the process of designing the very first draft of the “BEE codes” in order to advance and absorb previously disenfranchised black people into the economy. I was somewhat sceptical about the government’s punitive rather than incentivebased approach to the whole thing. I expressed the opinion that perhaps it might be wiser to offer tax breaks to companies who trained and promoted previously disadvantaged races instead of withholding government contracts from companies who did not entirely resemble the United Nations. He responded by saying something like that was the job of the SETAs and that wealth should be redistributed Twelve years on and the SETAs have all but collapsed and it seems that the only people who have benefited from BEE in any serious capacity are the “inner circle” business people who arguably had wealth to begin with. In addition, the BEE codes have seriously hampered entrepreneurship and SME advancement – the one sector of the economy that should have been earmarked for aggressive development by Government. New broad-based black economic empowerment (BEE) regulations have just been announced by Trade ad Industry’s Rob Davies but analysts are simply reiterating their previous concerns. Business Report’s Wiseman Khuzwayo quotes Sandra Burmeister, the chief executive of the Landelahni Recruitment Group, as saying that the proposed changes to the codes of
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good practice in the Broad-Based BEE Act introduced stringent targets for qualifying enterprises. Small businesses could drop two places in their ratings if they failed to meet the minimum requirements. “This will restrict their opportunities to obtain contracts that could boost their businesses and help drive employment,” Burmeister was quoted as saying. She said, in addition, under the new codes, 100 percent blackowned businesses were automatically granted level one BEE status, which was the highest score. “This implies that they do not need to adhere to other conditions of the codes. It prejudices those with 51 percent or higher blackowned and controlled companies, limiting the pool available to bid for government contracts,” Burmeister argued. She said that unless the same recognition was given to all companies with majority black shareholding and management, the codes would mitigate the intention of BEE to engage as many black South Africans as possible in the economy. Khuzwayo’s article (http://www.iol.co.za/business/businessnews/new-bee-regulations-come-under-fire-1.1428244) also quotes Lisa Tait, the chairwoman of Transcend Corporate Advisors, as saying that the codes were broadly revised to address obvious errors in the present regulations. However, there was the need to ensure that BEE policies were aligned to all of the government’s strategy documents, such as the New Growth Path, which focused on national priorities such as job creation, localisation and industrialisation, she said. What this means in practise exactly is unclear to say the least. SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
Veruschca Pillay, a director in the corporate and commercial practice at law firm Cliffe Dekker Hofmeyr, said that one of the important changes to the codes was that there were now three priority pillars instead of the previous seven. These were ownership, skills development, and enterprise and supplier development. “The total BEE points for ownership has increased from 23 to 25, meaning ownership continues to be a dominant feature on the generic scorecard,” Pillay said. Three issues seem to be at play here. The first is the obvious ownership question. The BEE codes still, after all these years, allow for loopholes with regards to ownership in that an ignorant and uneducated person can still theoretically be approached to own a majority shareholding in a company without having any executive powers just to cover the “ownership” requirement. This of course makes a mockery of the entire system. The second issue is the question of training, competence and experience. Nowhere do the codes require that the previously disadvantaged component of a company needs to be skilled in their duties and responsibilities. It simply states that you have to be black-owned to qualify for government contracts. . The third area of concern is the obvious detrimental affects on SMEs. Because of the government’s morally reprehensible neglect in the area of education and training over the past 18 years, very few previously disadvantaged people have the management and financial training, requisite administration skills or the mental
and intellectual resilience to start and sustain successful SME businesses – with the obvious exception of a few very gifted and lucky individuals. The ones that do have successful business concepts who also happen to understand their own shortcomings would logically and practically want to hire specific expertise, which unfortunately often comes in the form of persons other than black. The BEE codes discriminate against these people in almost egregious fashion and these small enterprises are left to fend for themselves or die. Given all these factors, it is painfully apparent that the government’s exclusive BEE code system is failing and dragging the economy – and therefore majority economic advancement – down with it. It is time that the architects of these economic policies set aside their political agendas and start looking at the real issues facing this country and its people. Interested parties have until December 4 to submit comments on the new codes to the Department of Trade and Industry. For the full revised code notification and technical levels, go to http:// www.info.gov.za/view/DownloadFileAction?id=175608
HOME BUSINESS
Is your home office tax deductible? Working from home certainly has its perks, especially if your home office enables you to reclaim your hard-earned money back from the taxman.
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ccording to Richard Gray, CEO of Harcourts South Africa, qualifying for home office deduction can result in great money saving and is applicable to both homeowners and renters, living in any type of home. However, before you assume that you are entitled to remuneration, you first need to make sure that your home office meets the specific requirements that would qualify it for tax deduction as prescribed by the Income Tax Act. He says typical home office expenses include rent on the premises, insurance, interest on the mortgage bond, rates and taxes, repair costs to the premises, electricity, water, security and cleaning costs. Three simple requirements, considered as ‘general rules’, need to be fulfilled before establishing whether home office expenses are tax-deductible. The home office needs to be a room within a home that is solely dedicated to the purposes of the business. It should be equipped with necessary items specific to its trade, and it should be used frequently and exclusively for its intended purpose. With the above being said, the South African Revenue Services (SARS) does not expect an entire room to be dedicated exclusively to the business. Instead a portion of a room or a designated area can still be considered a home office and will enable one to claim a tax-deduction - but this area would need to comply with all the general rules as previously stated. Gray says there are two types of deductible home office expenses and it is very important to distinguish between them. “Expenses that directly relate to the work space are deductible in full, while those thought of as indirect expenses can be partially deducted as are related to the cost of the property where the office is based.” Direct costs attributed to the office would include repairs to the office, stationary or telephone costs relating to the business, and can be claimed in full. However, expenses relating to the property, as a whole, are more complicated and would depend on the percentage of the home that is used for the business. To calculate these expenses the floor area of the home office would need to be divided by the total floor area of the home in order to determine the accurate expenditure that has incurred within the office space. Examples of these types of indirect expenses include real estate property taxes, rent, mortgage interest, utilities and homeowners or renters insurance. The law pertaining to employees working from a home office stipulates that their income from employment needs to be more than 50% derived from commission and that they need to work for the majority of the time from that home office in order for them to receive remuneration for their home office expenses. Gray says when working from home, your office may come under intense scrutiny from SARS. “Therefore it is important this office is only used for business purposes and not for personal affairs, as well as that an accurate record of all expenses is thoroughly documented.” As an employee working from home, ensure that the employment contract specifies that you are able to use a room or part of a room in the home as an office, he says. www.saguides.co.za
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BUSINESS
Millions Make Money from Affiliate Advertising: Here’s How Online advertising has become increasingly cheaper which is great news for advertisers, but less so for businesses whose primary source of income is selling advertising space on their websites. A great substitute for selling advertising is to become an affiliate marketer.
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ffiliate marketing is the process of earning a commission by advertising other companies’ and businesses’ products. You take a product you like, promote it to others and earn a percentage of the profit for each sale that you generate. Affiliate marketing works because all three entities involved in the sale are left satisfied.You earn a commission, the company makes a sale and the client is happy as they now have a product or service which fulfils a need or desire they have. The great advantage of affiliate marketing is that you don’t have to invest time and effort into creating or even sourcing a product to sell. You can simply sell items or services as an affiliate. Find a niche and product It would be best to start small and recommend products from a specific niche that you know. Remember that you can’t sell everything to anyone. You will need to establish traffic to your website – which in turn results into clicks to your affiliates and subsequent sales. A community that are willing to trust and accept your recommendations is thus invaluable to earning an income as an affiliate advertiser. If you are unsure which products to advertise, simply do an online search on products with affiliate programs or check out the range of products offered by Kalahari and Amazon. Find a platform Finding a platform is simple; if you are already in the online media industry, you can adapt your current website to optimise it to generate an income by affiliate advertising, or start a new site. Once you are familiar with the affiliate advertising industry, we recommend maximising income by operating more than one website, in more than one niche area. More niche areas and sites mean more products, traffic and thus income from affiliate advertising. Find a niche partner There are countless affiliate programs, networks and campaigns which you can join. A vast number of South African and international companies now market their products through affiliate advertising. Kalahari, BidorBuy, Truworths, CNA and Musica are just a few of the companies which have affiliate programs. A simple internet search within your niche product should result in a number of possible affiliate programs operated by South African and international companies which sell the products within your niche for which they are seeking affiliate advertisers. When deciding which affiliate program to go with it is worth weighing the reputation of the company and the percentage which they pay affiliate advertisers. Affiliates pay anywhere between 2 – 15% commission or a flat rate of up to R400. SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1
Kalahari (3-6% - commission) and Amazon (2-10% commission) are two excellent companies which run affiliate programs. Both stock a huge variety of products. Thus whether your niche is books, music, or even camping, you should be able to employ either one of these two companies as an affiliate. Signing up and getting paid For the most part it is very simple to sign up for an affiliate program. Completing an online form is all that’s required. Different affiliate programs pay out in different ways. Amazon gives you the option of receiving payment in the form of an Amazon gift card or receiving a cheque, while Kalahari offers payment through either EFT or bank deposit. Traffic and Income The affiliate network model is simple, easy to learn and has the potential to generate vast amounts of income for you if done right. It is however worth knowing that the amount of time it will take for your affiliate advertising to generate a decent income, is entirely dependent on the time, effort and expertise you put into refining your website and gaining traffic and thus sales for your affiliate. For more information visit smartpassiveincome.com, affiliate-program. amazon.com and Kalahari.com/commission. www.saguides.co.za
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BUSINESS ADVICE
How to sell
HOT OPPORTUNITIES BETTER SERVICE
A prime example is the legacy of Steve Jobs. Known for being incredibly hard to work with and, at times, arrogant, his redeeming factor was found in the release of any Apple product. Watch any video of his apple product launches, and it’s evident that he not only enjoyed selling his products, but believed in them. His explanation of every aspect of his product made it obvious that if he was excited; everyone else had a reason to be too.
Better Service Technologies has an exciting business improvement opportunity for all restaurateurs, with a brilliant new way to improve service delivery, efficiency as well as giving café and restaurant owners a way to organize their business with one simple tool. The Better Service Wireless Waiter Calling system equips your restaurant with a hi-tech system which includes a service display screen, which displays the list of calls that waiters need to answer and a wrist watch receiver, which notifies the waiter of the Bill, Call or Cancel request. This system also enables business owners to keep track of which waiters are less efficient than others, which allows measures to be taken to increase productivity and in turn a greater profit turnover. The systems integrates seamlessly with all of the different models, whether the one or three key transmitters. The wrist watch can store and track up to ten calls and displays 4-digit numbers ranging from 0000 to 9999, with the service display showing call numbers ranging from 00 to 99. This package includes stock and training, with exclusive areas available and area licenses starting from R39 000. Tel: 082 979 8014 OR 076 509 4590 Email: sales01@ betterservice.co.za Website: www.betterservice.co.za
If a CEO is excited to sell his product and believes in it, getting it sold is easy. When CEO’s view the selling as a chore, however, their sales tend to represent their lack of enthusiasm.
GOLDEFFECTS
(when you hate selling) “I hate selling.” This sentence is heard often, even amongst entrepreneurs, where the essential nature is selling. Selling the business, selling the product and selling ideas. The general idea of hating sales, but being in sales, isn’t uncommon. The first point to understand is that any business entails selling. Being in it means you love it, and selling your ideas, product, etc. Hating it requires a swift exit, as loving the sale and evolution of your treasured product (whether it be an idea or a physical product) is the main drive behind successful business owners.
The regular excuses of those who hate selling are as follows: It’s manipulative The common belief is that a sales person is going to spin the facts into the most rose-tinted version that he can to get the sale. (Not really how they want to be seen.) It’s annoying It’s boring Selling usually takes “forever” and is regularly met with “can I get back to you?” Holding any of these beliefs is a recipe for failing in sales. All three of them, though, spell disaster. Changing your views and feelings regarding the “Selling” point will do more than bottom line and it might ultimately improve your business acumen. A better way to look at it is: It actually helps Once a conscious decision is made never to sell something to someone that they don’t need, you’re more focused on selling products you believe in - to people who actually need them. Deciding to learn something valuable in every sales situation not only makes it more interesting but also lets you know who believes in your product and how to make it better. Now that we’ve established what not to do, is it actually possible to learn to love selling. In a word…yes. Business success is directly linked to selling your idea. Learning to love it is simply a question of getting re-inspired by your product. If you believe in it, your customers will be inspired to believe. Once you train yourself to improve and re-ignite the flame, selling won’t be about getting someone to buy your product. You’ll realise that it’s letting someone in on your vision. In short, learn it, love it, live it.
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Gold Effects is one of the most profitable, low-level entry business opportunities on the market. It is simple to operate and essentially sells itself. Ask yourself three important questions: • Do I want to make money? • Do I want to be self employed? • Do I want to plan my own destiny? If you answered yes to any of these questions, then Gold Effects is the business opportunity for you.
Gold Effects is perfect if you have the desire to be your own boss and operate your own business and the investment return is as only proportional to the amount of time you put into your business. Like all businesses, this depends on the time, enthusiasm and effort an operative is willing to put into his or her business. Gold plating is a great business opportunity, as it is Recession Proof: Gold is one of the precious resources as well as being sought after as a status symbol, allowing your business ventures and its earning potential to be very stable. Email: sales1@goldeffects.co.za Tel: 021 761 2531 Website: www.goldeffects.co.za
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FINAL THOUGHTS
Leaders set the tone in a company and for that matter a country
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he author, communicator and business executive, Brenda Kali, is one of the few individuals able to decipher the inner intricacies of the corporate world.
Having spent most of her life in the communications industry and gifted with the knowledge and experience from an extensive career that spans a wide range of genres, Kali is able to communicate in direct terms on how to find equilibrium, sanity and harmony in the workplace. Her impressive background in the industry includes: authoring three books, work as a journalist, serving as a broadcast and telecommunications executive for Telkom, as well as a strategist and consultant while on sabbatical, it was during this period she decided to write Beyond The. Kali is in an ideal position to dispense her words of wisdom and her new book, “Beyond Corporate Sludge,” which serves as a practical guide for stressed executives, managers and employees on all levels. Providing insights and universal truths which prove invaluable to business owners, she has helped to shape the reputations of a number of high-profile companies. On the creation of the book, Kali says, was being prompted by her captivation of human behaviour in a corporate environment. “People when they get into a corporate environment change. Most companies by their very nature experience some toxicity. People forget who they are, they forget their core and their spirit and they get caught up in the greed and the hype and the agendas and manipulation. They forget at the end of the day that we are spiritual beings”. Brenda Kali, a communication specialist and the author of Beyond Corporate Sludge, speaks to Margaret Harris How important are the behaviour and leadership style of a company’s CEO to the company culture? Corporate behaviour takes its cue from CEOs and their leadership. The tone and manner, and the attitude and behaviour of a company’s leader cannot be separated from the organisation. It plays out in its performance, employee behaviour, its reputation and the perception of its ingrained corporate culture. Great leaders stand out and shine by example whereas insecure, incompetent leaders hide behind sycophantic executives, revitalisation of corporate culture, and projects that dissuade robust debate. In this age of excessive materialism, cut-throat and dishonest dealings, one looks to the CEOs, chairmen and leaders of the day to display courage and vision - not incompetence and cowardice - to take the company forward. To some, the company is a means to an end, a journey of self-enrichment and power. Unfortunately the self-interest, double dealing and blind disregard for corporate
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governance displayed by some leaders leaves one in no doubt that there is much to be done in terms of governance and values. What do you think makes someone a great leader? I believe a great leader can change the course of a company’s destiny by intense endeavour and inspired imagination with a wise and impersonal eye - whatever his personal feelings may be. He is able to turn around the negative fortunes of the company to work in his favour. With such leaders, attitude towards unfortunate events, blunders and failures do not generate hopelessness and despair, but rather actions stemming from meaning and purpose. When leadership is a top-down formal approach rather than a conversation, employees become passive consumers of information, and communication becomes fragmented, reactive and ad hoc. A great leader always engages with employees or communicates personally and directly, where value, trust and integrity become the hallmarks of his persona. When such leadership exists, employees will actively participate in telling the company story, acting as first-hand brand ambassadors. A great leader may have to create disruption, an ordered chaos for the end goal of transformation. He is endowed with a matchless energy, a combination of intelligence and memory, a keen wit coupled with a sense of humour, a natural comprehension of human behaviour and a devotion to duty. Personality apart, he should also be a determined visionary, endowed with a genuine sense of modesty, common sense, a keen imagination and an inspirational zest for life. There is a lot said and written about work-life balance. Is it possible to be a successful company executive and still have a fulfilling personal life? Our need to find time to do the things that matter, especially when demanding work schedules negate any hope of finding work-life balance or peace, is a challenge. Yet it comes down to choice. It is a fundamental right and choice to work in balance, harmony and peace. However, the corporate environment is not conducive to this. Once we are aware that we have neither harmony nor balance in our lives, we have a choice to revitalise ourselves, take responsibility for our own thoughts, actions and emotional wellbeing and turn the situation around by allowing ourselves to create a foundation of putting into perspective why we work, why we play and why we live. * This article was first published in Sunday Times: Money & Careers
Brenda Kali, author of Beyond Corporate Sludge
SA GUIDE TO BUSINESS OPPORTUNITIES VOL 11, # 1