Start Up 2 Comic Book

2 p U t r a St The . . .

S E U N I NT O C s s Y E e n N i R s u U b O l al m THE J s a g n i row story of g

Come see what we’ve been up to...

Dear Reader Welcome! So you’ve started a business and you’re working hard to grow it to its full potential. Or perhaps you’re still planning to start a business and are trying to get as much information as you can. Either way, I congratulate you!

We need people like you to help build the economy of our country.

Starting your own small business is a big decision. It takes commitment, creativity and a lot of hard work. But keeping it going, managing it, and growing it into a solid, sustainable business... that’s the real challenge!

Statistics vary, but most researchers agree that up to 60% of small businesses fail within the first three years of their existence. Some typical reasons for small business failure include: lack of experience, lack of research, lack of planning, lack of innovation, lack of finance, competition, or even growing too quickly. Most of these are things you can control with the right information, knowledge and planning.

Following the success and popularity of Start Up 1, which looks at the basics of starting a very small business, seda now brings you Start Up 2, which looks at issues of growing and consolidating a new small business.

We’re sure you’ll recognise the challenges that Vuyo and Dudu face as they struggle to manage and grow their small businesses: managing tenders, managing cash flow, marketing and promotion, scheduling production, record-keeping, planning for business growth, applying for finance, partnerships and joint ventures, and how to take advantage of the opportunities of BBBEE. Reading about their experiences, you’ll find yourself learning all sorts of new information and skills, getting new ideas, and thinking about new ways to manage and grow your own businesses. We encourage you to take the next step and download the Start Up 2 Guide from our website (www.seda. org.za), or get a free copy from your nearest seda branch (see page 31 for provincial office contact details) or Enterprise Information Centre - EIC. Good luck in your business.

Mr Thandile Gubevu, Executive Manager: Products & Services

CHAPTER Hey, Thabang, how’re you? I need you here, man!

Mr Langa, your current loan is in arrears. We can’t help you. I’m sorry, man.

Sorry, man, Vuyo. This pneumonia is killing me.

What’s this!

What’s gonna happen about our salaries this month?

They are threatening to blacklist you, man!

Listen, laaitie.

Two weeks. Understand?

Two weeks!

t 1

LANGA INC. & ASSOCIATES

Vuyo Langa

Mam’Langa

Four years ago, Mam’Langa started a fruit & vegetable hawking business Bab’Langa with the help of her neice, Dudu, and her son, Vuyo (see Start Up 1). She has been very successful and now owns and manages Langa Wholesale, with the help of husband, Wilson.

Moss Tau Tau is a small business consultant. He helped Mam’Langa to grow her business, and now he is helping Vuyo and Thabang to develop a strategic plan for their business.

Tau’s cc, Small Business Opportunity Centre, is also an accredited seda EIC (Entrepreneurship Information Centre).

Dudu Langa

Four years ago, Vuyo started a small welding business with his friend Thabang.

Khensani Eighteen months ago, their cc, Metal Creations, won a tender from the local council. They thought they had it made!

Vuyo married his school sweetheart, Khensani, and they soon had a child.

Dudu has turned her Thabang passion for helping Thabang is Vuyo’s partner. people into a highly He is HIV positive and not successful business. After yet on ARVs. As a result, volunteering at a business he is often off work. services centre, she opened D.Com, an Internet Cafe, Lindiwe in her local township.

Lindi started at D.Com as a In Start Up 2 we see volunteer. She soon became her and her assistant, Dudu’s assistant, and it Lindi, opening a second looks like further promotion is coming her way...

Internet Cafe in town.

2 p U t r Sta Copyright © 2007 JASA & seda

Abdul Rajah Junior Achievement SA PO Box 61540 Marshalltown - 2107 Tel: (011) 832-2632 Fax: (011) 832-2637 Email: abdul@jasa.co.za

Start Up 2 is published by Junior Achievement South Africa & Small Enterprise Development Agency ISBN 0-9583890-6-3 Start Up 2 was produced by STORYWORKS. Research and writing by Andre Croucamp, Neil Verlaque-Napper and Dale Morris, illustration by Vusi Malindi. Email: storyworks@icon.co.za

John Francis seda PO Box 56714 Arcadia - 0007 Tel: (012) 441-1259 Fax: (012) 441-2150 Email: jfrancis@seda.org.za

No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, or by photocopying, recording or microfilming, or stored in any retrieval system, without the written permision of the publishers.

t 2

Do you want to be successful for a few months only...

Ja, Ma, but...

I’ve told you before, Vuyo... You cannot just spend all your money on your lifestyle. You must put some profits back into growing your business.

... or for your whole life?

You and Khensi must realise that the lifestyle you dream about comes from planning not spending.

Vuyo, I am not going to give you a loan... again!

But, Ma, I thought the government tender would be repeated...

We’ll pay for the services of a business consultant who really helped me with this business.

What you need, my boy, is a strategic plan.

People think a loan will solve their problems! You need someone to help you make better use of the resources you already have.

What... someone who’s gonna control my business?

Your Mom is right, Vuyo! A business consultant will help you control your business much better.

Ma, there’ll be a big problem if I don’t get money in the next two weeks...

Contact Tau. You won’t regret it. He’s connected to government agencies like the dti, seda... and he’s very well networked with businesses in this town.

Like that big Plasma TV! Was it really necessary?

Please drop this at Dudu’s on your way?

I understand, Ma. t 3

Don’t worry, son.

Your business will come right.

Thanx, Vuyo.

Dudu, I’ve been thinking of getting a business consultant, you know, for a bit of business planning...

You need to find someone who is really interested in helping you make your business work. Don’t get a consultant who offers to do your Business Plan for you. Get one who offers to do it together with you.

Business planning is essential. But with consultants you have to be careful. Some are good, some are just skelms.

I hate paper work.

I’ve seen many of my customers frustrated by consultants, but often-times it’s because they don’t know what they want themselves.

It’s worth the effort. I’ve just been through a business planning exercise myself. It’s so exciting… holding so many ideas together at once… seeing how they all work together to make your business grow.

So, what should I look for in a consultant?

I encourage my clients to ask some questions to evaluate their consultant.

I have a list I can email you...

Ja, I think I should do it.

Dudu, you know I don’t have a email.

Vuyo, you need to get connected, man!

I’ll get you a copy.

QUE A BU STIONS TO SINE SS C EVALU ✸ H ONS ow d A ULT TE busi id you A NT ne be ✸ W hat t ss advis come a I just need qual raining or? a i fi n ✸ W c him to get me d hat ations d some money! busi are som o you h n a e work esses yo of the ve? ed u ha ✸ W ve ho h with? a acce ve you ss he ✸ W hat i finance? lped s t he f op ✸ D erate fr ramewo o o yo rk yo u ha m? u you ve a work team alon or do e?

Be clear about what you want, and be open about your needs. t 4

Hey, Vuyo! Are you coming to the Business Forum tomorrow? Come and network!

The next day...

Dudu, please talk to Mr. Tsedu.

These kids are taking up time on dating sites!

I’ve been waiting for almost half an hour to get to a computer! I’ve got other things to do...

Lindiwe, they have paid for their time.

We can’t kick them off.

I’m sorry Mr. Tsedu. It’s school holidays... Let me see what we can do.

Mr. Tsedu, you can be on in 10 minutes.

Otherwise, we can make a booking for you. One hour free for the inconvenience.

Are you taking bookings now?

Only for our regular customers, like you, Mr. Tsedu.

So, we’re doing bookings now?

The customer is King!

We’re getting more popular.

We need more computers, more space!

I know. I’ve been working on a plan... You’ll see.

Mmm. Sounds mysterious.

Listen, I’m going to town for while. Please make sure everything is ready for tonight’s Business Forum.

Is this about your mystery plan?

Later!

t 5

Just be patient.

Okay, Dudu, think positive!

So, Ms Langa, the purpose of this loan is to open another Internet Café...

I really admire your vision.

ICT is so crucial for our community.

Your Business Profile shows that you have been running a smaller Internet Café for almost two years...

Thank you. Yes, it is. The demand for information in the township is amazing.

Yes.

Well, it seems all your documents are in order.

We’ll need time to go through your Business Plan and all your financial statements.

We’ll also have to do a credit check.

The bank expects businesses to show commitment to their projects by putting up front at least 10% of the money themselves.

Yes, I know about that. I’ve saved enough to cover the 10%.

And now I see huge potential in the CBD to service the small business sector.

Ms. Langa, what about collateral?

Do you mean like some kinda security?

Well, we have our computers, fax and photocopy machines. They are second-hand but they are all paid off.

Yes, something of value, like property or technology, that the bank could possess if the person can no longer repay the loan.

I don’t really want the responsibility of owning business property... not now anyway...

Yes, buying is a big decision.

But it can make sense if you see yourself staying in the same place for a long time.

Okay, good. We’ll have to assess their value as security.

Have you thought about buying a business space, rather than renting?

Ms. Langa, this is a very strong proposal and it is very professionally presented.

Thank you.

We put in a lot of time and effort. t 6

Thank you! We’ll be in touch...

Charlene, thanks again for all your help. The bank was impressed.

You go, girl! It was all your work, your vision.

I remember. You’ve always spoken very highly of her. How are you going to structure the arrangement?

By the way, who will be managing the old Internet Café?

I just wanted to formally thank seda for subsidising the cost of the business consultant who helped me with the Business Plan.

Our pleasure. You are exactly the type of entrepreneur that seda wants to help.

You remember Lindiwe, my assistant, who started as a volunteer? She will manage it, but I haven’t told her yet.

Such loyalty and responsibility can be rewarded with equity – shares in the business. You could start by offering her a performance bonus, with the promise of shares after a year if she continues to bring in profits for the business.

I like that. I’ll call you tomorrow to discuss… I’m running late for our Forum meeting. Gotta go! Bye.

How do you mean?

15 minutes later…

… Government is spending billions of Rand every year to create better economic opportunities for SMMEs…

… Micro-finance Apex Fund provides affordable finance for micro business owners…

… skills support programmes in all sectors, as well as grants to access these programmes…

It’s difficult to get info on Government Tenders…

… opening up export opportunities for small enterprises…

… National Procurement System on-line…

Through govt agencies like seda, we’re also making sure that there are business development services to help you take advantage of these opportunities. t 7

… also provide investment grants to small enterprises who have qualifying assets…

Great turnout!

Thanks for organising everything.

Thanks. So, where have you been? You’re looking very pleased with yourself…

CHAPTER

Vuyo? Hi. I’m Tau.

Some days later...

Listen, I must just tell you, I only called you ‘cause my mother thinks I need help with business planning.

You need to be congratulated for that.

Do you know how important you are to the economy of this country? Small enterprises contribute 60% of the GDP. I know what courage and commitment it takes to get a small business going. Your business has even helped employ other people.

Well, first I want to congratulate you!

And I know you’re gonna tell me I must keep my business money separate from my personal money...

What! Why? I’m sure it hasn’t been easy.

So, where are you with your business planning?

Well, uhh... I did get a Business Plan together once for the council tender, but that’s it.

Ja, well. It hasn’t been easy.

Business Plans are not only for getting tenders and raising money. A Business Plan is your guide to help you think about and implement your business strategy.

No disrespect, but I urgently need to pay people: salaries, the bank... and the furniture stores are all over my neck!

Business Strategy.

I don’t think I’ve got one of those!

Your Business Plan is an ongoing conversation with yourself about how you are going to make your business vision a reality.

Can a Business Plan help me solve all that?

Shoo! That sounds serious. t 8

Let’s solve the immediate problem first, then we can talk about growing your business.

Later...

I’ve tried everywhere to get some cash...

And Mom was only offering to pay you!

Before going for outside help, you should always start with what you already have.

That’s money lying around, Vuyo!

For example, you have a lot of material lying around. What are you doing with it?

With your talent, there must be some things you can make and sell quickly.

Well... nothing at the moment. It’s left over from the last tender.

It’s still winter. We can make fireplaces.

Making the stuff is easy.

Selling it is the hard part!

I need Thabang for the marketing stuff.

Thabang? Who’s Thabang?

He’s my business partner, but he’s off sick a lot of the time. He has HIV. It’s no secret.

Yes, man, Vuyo. Sometimes HIV can weigh heavily on small business.

By the way... You haven’t told me about yourself. What other businesses have you helped, besides my Mom?

Good question! I will give you a copy of my CV. It has a list of my clients. t 9

Feel free to call them and ask about my work.

A few days later...

There are so many other things I want to do, I don’t want to be tied down to just one type of business.

So you have decided to rent rather than buy...

Yes, at least for now.

Are you sure that you’ll be able to support yourself with the salary you allocated in your Business Plan?

Well, we’ve looked at the financial statements of your personal expenditure and at your tax records. They are all in order.

Yes. Until the new Internet Café starts paying for itself I’ll need to make some sacrifices...

I know, in business, one has to be patient.

The rewards will come later.

I must say you’ve planned well.

I commend you!

Obviously, your ability to repay is what interests us most. What if the new business doesn’t do as well as you’ve planned?

As you know, I’m not closing the other Internet Café, and it’s doing well. I can even pay the loan from that business.

Good news! Your loan has been approved – repayable over 60 months, as you requested.

We got the loan!

Thank you so much.

I wish you all the best. I look forward to seeing your vision taking shape. t 10

Congrats, Dudu!

I knew you could do it.

Now there’s so much work to do. I just can’t wait.

That weekend...

Your father is going to be happy about this news.

Mom! I wouldn’t have got this far without your support. Thanx!

Yes, Duduzile, my child. We wish you all the best with your business expansion... Just don’t waste the money!

Later...

Isn’t he on ARVs yet?

So, Vuyo, how’re things going with your business?

Eh! Difficult, man.

Thabang has been off sick a lot, and I need him for the marketing. He’s good with getting customers.

So, Khensani, have you tried selling your beadwork at the salon, like we discussed?

Eh! The clinics are slow.

He’s still waiting. And those things are too expensive to buy.

We can’t all be business people!

Khensani, I know what you mean. I’m also not an entrepreneur, like Mam’Langa. But we support each other.

Yes, Ma, but people don’t want to pay.

Your beadwork is beautiful.

There should be a big market for it somewhere.

I think what Mam’Langa is saying is that you have great talent with your hands.

Bab’Langa, I didn’t see it like that. I really appreciate you and Mam’Langa seeing potential in me. Thank you, Baba. t 11

Hey, Tau!

Thabang, meet Tau, the consultant I told you about...

Hi. So, you’re going to help us get back on track?

Well, for now I’ve brought a list of potential corporate clients... builders, developers, architects, en so aan...

Eish, these big companies!?

Great! I’ll make appointments, and Vuyo and I will go see them personally.

Sure, you’re a small company, but you make a quality product. There’s no reason why you can’t approach those companies for work.

I never thought of them as our kinda clients!

I assume you are fully compliant and that you’re up-to-date with your taxes, etc. You’ll need that.

Ja... I can show you the papers.

I’ll need to get copies of all your registration documents, tax records, financial statements...

No problem! t 12

Some days later... MAPONYA CONSTRUCTION Thanks, guys. Nothing at the moment, but I’ll keep your details.

Okay, next: Moonsamy & Associates Architects.

JANUARY & SONS PROPERTY DEVELOPERS

N ARCHITE

Call us in 6 months; there may be some work for you.

Come on, Vuyo. We must push!

We’re chowing petrol but we are getting nowhere!

CTS

Sorry, Mr Sc hoeman is still in a mee ting. He can’t see yo u today.

... and we did all the gates and burglar proofs at the new clinic.

Well, in principle, I’m interested.

Serious?

This is my personal stuff - just an experiment for my gate at home.

SCHOEMA

Experiment!

It’s beautiful.

What’s that!?

Can I see?

I’ve been looking for creativity like this. I don’t mind paying more.

When can you bring me more designs like this?

Amazing! Your crazy designs are gonna save our butts!

We’re gonna have to move fast! t 13

CHAPTER Early one morning...

Aah, so this is your mystery plan?

Now open your eyes.

Can you imagine an Internet Café here?

The bank was impressed.

They gave us a loan!

But how are we going to afford it?

I’ve been working on this for months. Here’s a copy of the Business Plan with all my research, strategy, projections...

Wow! They’ll have to be more professional here ‘cause the more people buy computers...

I’m also thinking of getting Alvin and his tech-heads to rent some of the space for their 2nd hand PCs.

That’s great, Dudu. We work well together, but they’re just messy!

You remember when I asked you to speak to our customers about our service and how we could improver?

Yebo!

There’ll be a separate area for training at the back...

Well, I used that info to plan the design of this new space, to better meet our customer needs and offer a superior service...

And the other Internet Café?

Are we...

Fax, photocopying, stationary, binding, and public phones...

And, of course, Internet and email...

Actually, I want you to become a partner.

Wooow!

You are going to manage it!

... the more people will need our training services!

Does that mean I get a raise?

I love you, Dudu! t 14

But it will have to happen in stages.

Lindiwe, I’m going to give you an opportunity to prove yourself.

If your ideas and management can raise the income of the existing Internet Café by 7% over 4 months...

I will give you half of that 7% as a performance bonus...

...and if you’ve achieved 3 performance bonuses in the next 12 months, I’ll give you 15% equity.

What do I need to do?

I can do that. I’ve got so many ideas for attracting new customers, and...

But... if the Internet Café loses income, you...

I know you can do it.

And, as from today, I’m going to treat you as my partner.

Sorry I’m late!

I must expect to sacrifice part of my salary. I know.

Nice location! Just on the edge of the CBD.

You got it! So, I’ll draw up a Memorandum of Agreement.

Charlene, meet Lindiwe, my assist... No, my partner.

Yes, and near lots of potential new small business clients.

Later...

... and renting out some of the space will help your cash flow.

Nice meeting you, finally.

This is all so exciting!

Have you thought of going into a partnership with him? You’re offering him a lot.

I really want to see Alvin’s business grow. Every one of my clients is a potential client for him. t 15

Mmm... I must give that some thought.

Some days later...

Afternoon, Tau. How are you?

Sharp, Vuyo.

Good to see you smiling.

I came to thank you for helping us with all those contacts. Vani Moonsamy, the architect, has placed two orders already and paid 50% up front!

Well, I’m happy your short-term crisis is solved.

We already had most of the materials, so I’ve managed to pay salaries... and pay the most urgent debts.

Ja, the tender was great.

I thought we’d hit the jackpot, and ... Ja...

Now we must focus on developing long-term strategies to grow your business... sustainably.

That’s why I’m here.

Niks. But the council was very happy with our work. I thought they would give us more business.

Let’s go back a bit. You said that you got a large tender from the council... and that is when you rented the factory... and employed Jack and those other 2 guys...

And you finished that tender almost 2 months ago... and you have had no real orders since then...

Big companies also put out tenders, and they have to ensure that a certain percentage of their procurement goes to small enterprise.

Remember: all govt departments have to be fair and give opportunities to as many small enterprises as possible. They have to share out their jobs...

Meaning...?

Meaning that in order to meet the government’s Broad Based BEE requirements bigger companies have to buy from smaller ones, especially from black-owned businesses.

But where does one find out about such tenders?

From government Tender Bulletins, newspapers, online... look at corporate websites... both provincially and nationally.

You talking like Internet stuff?

My cousin, Dudu, has been telling me to get connected or some such.

She runs an Internet Café... t 16

Well, she’s right.

The Internet is the best place to find the information you need.

Firstly, good quality work.

Then, of course, you must be fully compliant.

A council-appointed business consultant helped us a lot with the last tender. He got us registered and he wrote our business proposal. But I didn’t understand the nitty gritties.

What exactly do we need to quality for these tenders?

Sounds like lots more paperwork!

You also need to comply with labour law as regards UIF, as well as employee compensation for disease and injuries.

You also need to comply with the code of conduct for health and safety.

Dankie, Sisi.

You need to be properly registered as a business and registered for tax.

Compliance is a way of communicating professionalism...

It shows that you’re serious about business.

Hey, Vuyo. Tau told me about your business.

I have a friend, Frik de Beer, who’s looking for a BEE joint venture partner who can make high quality security gates.

I’m covered!

Herman!

Meet Vuyo.

Herman is our legal advisor.

He’s retired, but he still helps us with legal issues.

Joint venture.

I don’t know...

JVs can be a great opportunity, Vuyo. Both businesses keep their independence, but join forces to get new work that neither business can get on its own…

I thought this BEE thing was only benefiting the fat cats...

In the case of a JV between a very small business, like yours, and a bigger, more established business, the small business can learn a lot, develop new skills, access new markets...

BEE is not a handout to small black businesses, but it is an opportunity. If you can perform to professional standards, the doors are wide open... the sky’s the limit! t 17

Just make sure that there is a proper contract between you…

Meanwhile...

We give them a few repairs and modifications and then try to sell them… mostly to tertiary students.

We get these computers 2nd hand from companies that are upgrading…

We hope to work more with businesses like yours… supplying computers, networking, maintenance, njalo njalo…

Alvin, how can you guys work in such a tiny space?

How would you like to rent some space in my new Internet Café in town?

Okay, I want to open is 6 weeks.

I’m gonna need 12 workstations and a powerful server. There’s money available…

Renting space is baie duur. Our business is not top notch just yet...

Wow, Dudu! Another Café!

What would you charge us?

Oh, Dudu my love, how can I thank you. That’s amazing!

Then, of course, I need the network maintained in perfect working condition.

I’m thinking that the maintenance contract is equal to the rent…

Now, in exchange for getting you out of here and helping to expand your business…

I want shares – 25%.

We’re happy to look at that.

Sounds good!

You guys need space and, most importantly, you need customers. At my new place you can get all that.

Mmm. That’s something to think about…

I’m prepared the help promote your business.

I’ll even help develop your business strategy.

You know I believe in you guys.

I’ve written down some points for you to consider. You don’t have to decide now. Get some legal advice, and let me know.

Let me talk to the guys. I’m excited! t 18

One cold morning…

Tau, morning.

Sorry I’m late.

So, Vuyo, what do you want your business to be like in 5 year’s time?

Eish, 5 years from now!

I’m struggling just to put together my son’s birthday party this weekend. I can’t think about 5 years from now…

Okay, you’re planning a party for the weekend. You only have limited time and resources. So the party will only be as good as your planning. Right?

The long view of things is the best view. When you develop the skills of projecting into the future you’ll see that the things you value in life start to change.

The amount of power you have as a businessman is all about how far into the future you are able to plan.

You need to be able to imagine what your business will look like in 1, 5 and even 20 years from now.

Vuyo, that’s power!

Now, imagine if you start planning for a party in 12 months’ time. You save up money for a party people will never forget. You do research to get the best venue, the best DJ and the best food and drinks. You invite your buddies. You’re gonna have one killer of a party!

I want you to think about the values that drive your business. Make me a list of your business’s values.

Business values!?

You can get a grant from the dti for up to 30% of the cost of your equipment…

You mean money back for the equipment we’ve bought?

Yeah, some money… but there’s lots of documents to submit and it takes ages to get ze moola!

I never knew that. t 19

Is that really necessary?

If you can only see one month into the future, then your life is only one month long!

Sure Tau. If I can’t look into the future I can’t put the things there that I want to achieve…

Here is a list of all our equipment.

What’s this for, Tau? Government supports small enterprises in many ways.

You should look at the dti and seda websites.

Internet again!

That Saturday...

Don’t rely on that, Vuyo. Don’t wait to be rescued by handouts. You have to rescue yourself.

How’re things going with your business consultant?

CHAPTER

Tau. He’s great.

I’m learning a lot. Did you know that the dti gives you back money for equipment you’ve bought?

Dudu, help me out. Tau has ordered me to draft a list of the values of my business… Does a metalwork business have such things as values?

Yes, Vuyo, it’s better to enjoy the fruit of your own toil. Stand on your own two feet. That’s real entrepreneurship!

Mntanasekhaya, just like family and friendship values, you need business values.

These are the things that guide your business decisions. They are the foundation on which you build your business.

Mom, I’m on track.

You’ll see. Just wait.

And they need to be realistic values, like quality, productivity, efficiency, encouraging initiative…

What are your business values, Dudu?

Top class service, customer satisfaction, empowerment, sustainability, transparency, feedback and lifelong learning.

Okay, I get it!

Later...

Hey, Duduzile, a little something something for you…

Mfanam’. Just one can!

Your Mom won’t see…

No, Pa. Doctor’s orders!

Khensi, this is beautiful. Can I put it on? t 20

… and they’re going to display some of my work in their shop.

Great! We must get you a website to show the whole world your stunning creations.

Tuesday morning...

I thought it was just a brainstorm…

Hey, Tau! Did you get my fax of the business values?

But is this how you want to present your business? It should be typed, with your business name, and printed.

Vuyo, I can’t see your points clearly. It’s not professional, man!

Askies kanjane Vuyo.

Bab’Vee bought new safety glasses and only 1 litre of paint instead of 2 litres!

Jack, Thabang, what’s all this about?

Tell you what. Let’s meet at 5pm at your cousin’s Internet Café. We’ll work on your document there.

Okay. The address is 25 Mango St. One litre cannot finish the job for Moonsamy. Now where we gonna get money to buy more paint. We need to finish today!

Vuyo, this helmet was on special. I can’t see much with the old one.

It’s okay, guys. We’ll use the little cash I kept on the side for emergencies.

Jack, for us now, saving is a priority.

I understand, but safety is also a priority.

For me the priority is our client. We must deliver on time!

Anyway, Vuyo, you promised to replace that welding helmet last month.

Okay, guys. I’ll go and buy paint. Let’s just concentrate on finishing the gates.

Cash flow!

Nobody said anything about delivering tomorrow.

See, there is no proper communication…

Still, delivery is critical for marketing. It’s an opportunity to impress the client.

Scheduling!

Communication!

Workflow!

Like Tau and them keep saying about planning: I’ve got to get my house in order! t 21

That evening…

Is that yours, Ma?

But did she do that all herself… on that computer?

Yebo ‘fana.

I designed the letterhead myself to show what my business is all about – delicious homemade food.

Hi, I’m Moss Tau. You must be Vuyo’s cousin, Dudu?

Hi. You meeting Vuyo? I was wondering why he’s here!

One of your learners did this?

You sound surprised, Vuyo.

Why?

Ma’Bonolo has also produced a business card, promotional flyers, an email template… even a T-shirt design.

Yes, Vuyo is typing up a business assignment…

Our computer training courses are very practical.

Tau, look! I want something like this for my business!

Come on a training course, Vuyo, and you’ll be able to do that yourself.

Vuyo type!

You joking?

I’m impressed. Here’s my card.

I run a business consultancy in town that is also a seda EIC.

Would you be interested in giving introductory talks on computers and the Internet at our entrepreneurship courses?

Yes, after only 8 sessions! This is one of our most popular courses. In fact, I’m opening a new Internet Café in town next month. t 22

Later that week…

Wow, Dudu, what a place you’ve got here!

Thanks, guys! Come check out your new space…

You must tell me what basic fittings you need and where you want power points…

We can put up display shelves here to promote your products for sale.

Dudu, this is truly amazing.

I’ll be with you in a sec…

It’s so big!

I can see you’re busy.

Dudu. We’re extremely excited to take up your offer. As you suggested, we got legal advice… and we think 25% is too much.

Ah… I don’t know…

I want you here. Your products and services add value to the Café.

But you guys lack business experience.

I can help with that, but to make it worth my efforts…

Later...

Right! Goodbye!

20%.

Okay, Alvin. Deal! But you must know that I’m worth more...

Sorry, sister. We got a big problem here!

I’ve never seen you this angry before.

Dudu, you’ve got to look after yourself. Take some time…

I can’t. It’s VAT submission next week… Ooh!

This landlord is horrible!

He expects me to replace his madala geyser!

This whole thing is driving me nuts. It’s too much.

I don’t know how I’m gonna manage all this.

Hi, Lerato!

You home early.

That’s nice. t 23

Let me start w ith the books. I’v e seen how you do it. Go and rela x with Thabi.

Early the following week...

20 mins! Sure, we’re here…

This can be business for us.

Frik de Beer is coming. We must get this place tidy!

Why must we jump for him?

Later...

We must be careful not to take on more work than we can handle.

Mr Frikkie! Here already…

Hi, mense! Lekker business you’ve got here!

So, I’m looking for a black supplier of security gates. Wanneer ek van julle koop, my BEE points go up.

Aangename kennis.

Goed! ‘Cos I’m not just looking for black names.

If I have to do this, I want to work together with people who can deliver the goods. How many gates can you make in a week?

Most people cover the locks with tape before spray painting. I use grease and just wipe it off after… It saves time.

Passop! It’s wet.

Let me be straight. I’ve had my own business for 20 years, specialising in electric gates, fences and roller doors.

But now I battle to get jobs I used to get – because of my low BEE points.

That depends on what you need. We are busy with a big job for some architects...

Architects!

Daai mense kan jou van jou kop af maak!

BEE aside, here we take pride in our work…

An hour later…

So, are we going to work under him now?

Why is there grease on the hinges and lock?

Fascinating. t 24

Jack’s a master! He’s been making gates for longer…

Longer than you’ve been alive!

I’m very fussy about standards…

Have you guys heard of the ISO?

Nee, not your work. It’s just your space… It’s a bit difficult to move in. And these wires can be dangerous, hey!

There’s nothing wrong with our work!

ISO lists the recognised standards for things like quality and safety. If you like, you can come to my factory and I’ll show you how I’ve set everything up to ISO standards.

ISO? This is good quality work.

I like what I see.

You know... maybe I can pass you guys some of the jobs that are too small for my company... for a small commission, of course.

If things go well, we can think of some joint ventures in the future.

We’re ready when you are.

And, ja, we’d like to visit your factory… see that ISO stuff.

One step at a time, hey?

Do you trust leburu lena?

Bab’Vilakazi, Frik can give us plenty of work and help us grow.

Totsiens!

Ja, let’s see how we work together, you know.

You sure he’s not just looking after himself?

Well… He’s offered to sell us materials at his bulk buying cost – no mark-up. t 25

He’s also offered us a second hand invertor welding machine that we can pay off at no interest over 6 months…

Serious!

Se-ri-yas!

CHAPTER

Over the following weeks and months, both Dudu’s and Vuyo’s businesses grow.

Of course, there are many challenges along the way, but it’s not too long before they start to see results...

Hey, Dudu, tight pamphlet!

And you’ve included us.

Cool, man.

I told you I’d make you famous.

Meanwhile...

So this is how you pull them in…

...then I offer them vouchers for free time on the Internet… help them find what they’re interested in… and they are hooked!

Ja, I attract them with services they know, like fax and photocopy…

I can speak to the seda branch in the city and recommend that they issue a voucher for the development of promotional materials…

People want a proper catalogue with pictures and prices, not just loose photographs.

What did your market research find?

We should also give each of our designs a fancy name.

I didn’t know they did that? How much can we ask for?

Your chances of getting the voucher will improve if you can show them that you have a proper marketing plan.

The voucher will be worth about R4 000. You will need to choose from a list of accredited service providers.

How far are you with that part of your Business Plan?

I’m working on it. I never realised how important the skill of writing is to growing a business!

So, when you opening?

We’ll be offering discounts to local businesses for the first month.

Monday. Come and see when you have a moment.

Aeei, me too old for Internet, hey! t 26

So, you’re still banking the old fashioned way?

At Frik’s factory...

Why are these lines on the floor?

They indicate pathways that are a safe distance from machinery. No cables must touch those lines.

Ja, the International Standards Organisation has a list of internationally recognised standards for things like safety, quality, efficiency, compatibility of equipment and cost…

Is that part of ISO? Jack, we must do something similar at our workshop.

You guys can join us when we do ISO training.

Meanwhile...

I’ve planned my factory floor so that materials move the shortest distance between any two points in the production process.

Anything that moves against this flow wastes time and increases the risk of accidents.

I’ve been reading about how to create more efficient workflow processes…

Many of your clients are already online.

More and more, email and Internet are the accepted ways of communication…

So, they are like guidelines?

Ja… and if your business is ISO compliant, customers and partners immediately know your business is professional.

Speaking about workflow, that order from the car rental company has been confirmed. Come, let’s discuss delivery dates…

You know that business is all about making the right connections and having the right networks…

Internet helps you make more connections.

You can market your business through a website, through linking your website to other websites, and through sending emails.

You can also use the Internet to educate yourself. There are thousands of useful courses, databases, libraries and newsgroups from all around the world where you can get info on any topic of interest for work or recreation.

I’m a bit nervous about computers.

How do I get started?

The best way to learn is to experiment and play with it. It is very difficult to do any damage. t 27

Thank you, Ms Langa. If any of you have been inspired…

I know I have…

D.com offers excellent service and Internet training courses…

Some weeks later...

How’s the work going for Frik?

Wow, guys, what a transformation!

We’re working 24/7 to finish on time.

Some of the things we’ve picked up from Frik have made us more efficient… but I’m still worried about completing all these jobs on time.

Excellent! Then you can keep track of each order.

… and not forgetting time for site visits.

Good point. Then, once you know how long each process will take, you can be more accurate about delivery. You can also see if you need more staff, or more training…

It can be useful to calculate the total number of hours needed to complete each process…

Meanwhile...

Alvin, this is Jakes. He needs advice on purchasing a PC.

Frik suggested we write out the workflow process step-by step… from receiving an order, to purchasing materials, to manufacturing the order, to quality control, delivery and invoicing.

First, just tell me; I’ve heard it’s very expensive to buy computer programmes… the software…

It can be. But here we promote Open Source software.

There are free programmes for almost all a person’s needs…

Dudu, look! I’ve got an email!

A Craft Fair in Cape Town. They’re inviting me to exhibit my work!

Can you believe it!

See… Who knows what email you’ll get next. Excited for you! t 28

But how will I afford to go…?

You can apply to the dti, or provincial govt… There are many organisations that can help…

Hey Tau, sorry to disturb. I’m working on my marketing plan, and I wanted to check something with you…

How do I understand Return on Investment as regards marketing costs?

Sure, but I haven’t exactly been recording all those hours.

Okay. You spend money on marketing, right? Phone calls, petrol, time visiting clients, even time spent developing your marketing strategy…

You need to record that time and all direct costs.

Shoot!

Only by calculating those costs and comparing them to sales can you see what your ROI is. For example, you spend R100 on marketing to get R1 000 of sales.

Cool! By the way, I hear Thabang was off sick again.

You should have organised ARVs by now.

Are you saying the business should be paying for his ARVs?

Think about it.

What will your return be on that investment?

Got it!

One evening...

Place is pumping!

Ziyabuya! My ideas for attracting scholars and tertiary students are really paying off.

Amazing things are happening with our volunteers… You remember how Siswe helped Ma’Bonolo with her business proposal?

I’ve made a list of websites for all the regular school projects…

I saw your figures.

You’re well on your way to earning that performance bonus!

But if I can put I’ve been thinking: there them together with are many older women unemployed graduates with small businesses who have writing who struggle to write skills… down their business ideas. This blocks them from applying for tenders, for funding, etc…

I love it, real community development!

Sure. t 29

Like you always say: Entrepreneurship is not just about making money; it’s also about social innovation…

Many weeks later...

Your work looks great, guys, and we met all our deadlines. Congrats!

I’d like us to look at a Joint Venture to go after some serious government work…

11 weeks after opening...

You didn’t do as much training as you expected…

Thanks to you, Frikkie, man!

I really enjoyed working with julle kerels!

It was tough, but we learnt a lot.

So, where to from here, Frik?

Ja, nee, Fuyo! I like your attitude. I’ll get my legal guys to draw up some papers we can look at, okay?

This JV is new for us, but we want to learn. So we need to be fully involved in all project management meetings and participate in decision-making.

Hey, wena! Training has been slow, but now our courses are booked up ‘till December.

Ja, the evenings are the busiest. There are so many people passing…

It’s great for business.

But at least Internet time, printing and copying are all higher than you projected in your Business Plan.

So, some higher, some lower, but in balance it looks like we’ll reach your projected income for the first three months.

So, Dudu, when can we have a formal opening. I wanna have some fun! You also need to party a bit…

Ja, it’s a huge relief. I don’t like being in debt. But I’m much more confident.

I can see the path ahead clearly now…

Get yourself a pretty dress! t 30

PROVINCIAL OFFICES NORTWEST Provincial Office Mafikeng Suite 201, ABSA House University Drive Mmabatho - 2735 (018) 384 0393/4/5 (T) (018) 384 0397 (F)

KWAZULU NATAL Provincial Office Durban Suite 205, Ascot Park 3 Ascot Street Greyville Durban - 4001 (031) 308 6300 (T) (031) 309 6069 (F)

FREE STATE Provincial Office Bloemfontein Block B, 1st Floor Telkom Building Nelson Mandela Road Bloemfontein - 9300 051 411 3820 (T) 051 444 4267 (T) 051 444 4235 (F)

MPUMALANGA Provincial Office Nelspruit Suite 102 Bi-water Building 16 Brander Street Nelspruit - 1200 (013) 755 6046/7 (T) (013) 755 6043 (F) WESTERN CAPE Provincial Office Cape Town N1 House Neels Bothma Street Goodwood - 7460 (021) 596 1300 (T) (021) 595 1253 (F)

EASTERN CAPE Provincial Office Bisho Global Life Centre Phalo Avenue Bisho - 5605 040 635 0555 (T) 040 635 0565 (F)

LIMPOPO Provincial Office Polokwane 2nd Floor, Suite 5 Maneo Building 73 Biccard Street Polokwane - 0699 (015) 397 4022 (T)

GAUTENG seda Tshwane Pretoria Building G The dti Campus 77 Meintjies Str. Sunnyside - 0002 012 441 1100 (T) 012 441 2212 (F)

NORTHERN CAPE Provincial Office Kimberley 13 Bishops Avenue Sanlam Building Kimberly - 8301 (053) 839 5700 (T) (053) 839 5711 (F) t 31

Dudu, do you remember, three years ago, when you came to our offices? You knew nothing about computers then…

Now look!

I know. Sometimes I can’t believe it myself. You got me started, Charlene…

I want to thank you, Moss.

You’ve turned my boy around.

He’s a man now!

Mama, he’s got some of your Midas touch. He just needed a little structure.

Thabang! You’re looking great, man!

You’re looking pretty fine too Lindi…

That dress! t 32

Ngiyakutshela, Tau, next of next year I’ll be having a party bigger than this… in my new factory… bigger than Friks!

Don’t worry, Vuyo, you’ll get there…

By the way, who’s that guy hanging around Dudu?

Have you thought of accrediting D.com as a seda service provider? She’s a natural trainer…

We are actually thinking along those lines… I’m so proud of her!

We are so happy for you children… t 33

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