WealthWise March 2011

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Beyond Generation Y Young Entrepreneurs Guerrila Marketing tactics to grow your business Interview: Jacques Magliolo on global stock trading

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South Africa March 2011

On the Cover

LifeWise

MoneyWise

12 Beyond Generation Y

9 Quick Read: 7 Steps to Build SelfAwareness

19 Quick Read: 7 Tips For Wise Investments

10 Rise and Shine!

24 Daddy, Are We Rich?

32 Young Entrepreneurs 36 Guerrilla Marketing

30 How Compound Interest Works

20 Interview: Jacques Magliolo

BusinessWise

C O N T E N T S

CareerWise

Agenda

43 Quick Read: How 47 This month we inspire you to... to Make a Good Impression 48 Destination: Exquisite 40 Would You Rather Luxury at Castello di Monte 44 Recruting the Be the Tortoise or Inexperienced the Hare?

54 On the bookshelf 42 Building a Viable 46 Wellness at Work 56 Events, Workshops and Business Model Seminars 31 Quick Read: How to Wow Customers

Regulars: 3 Contents, 4 Foreword, 5 Mailbox, 52-53 Competition, 58 In our next issue WealthWise 3

F O R E W O R D There’s a young, fresh vibe in the March edition of WealthWise magazine -

from our debatable cover story “Beyond Generation Y” – an essay on believing in the next generations’ potential, to our inspirational stories told by young African entrepreneurs in “Young Entrepreneurs”, the great advice on teaching children how to manage their finances in “Daddy, are we rich?” and the truths behind the pursuit of hot careers in “Recruiting the Inexperienced”.

Another article we enjoyed is Darryl’s take on guerrilla marketing and how can small businesses advertise with little or no money at all – it is easier than you think! Our accountant Robert is also back with a positive example this time on doing business.

Finally, if you have ever given a thought to stock trading, we have interviewed Jacques Magliolo, one of South Africa’s best known stockbrokers and author of various book on trading, to find out what it takes to be a great trader and handle the global markets. We kindly recommend his book, “Lore of The Global Trader”, if you’re serious about learning how to trade.

We have exciting news too and we’re very fond of our new website. For your convenience, you can easily browse through our best articles on the website, select the category of your interest and browse through our digital magazine located on the top right for more articles.

We want to bring you a totally exciting experience, so let us know what you want to find in our magazine at editor@wealthwisemag.co.za! As you would probably notice from this issue, we have a new Mailbox page where we value your suggestions and feedback, so keep posting!

We hope that our publication will inspire you to make every day, long-lasting changes to a wealthier future.

All the best,

Denisa Oosthuizen

Managing Editor WealthWise

4 WealthWise

Each month we showcase your best comments, feedback and suggestions for WealthWise magazine.

This is your page!

"Absolutely stimulating magazine...my own personal belief is its going to be a roaring success, all the contributors have provided value-adding articles, short, sweet and to the point" - Hemant Vanmali (Van), email "I’ve used a trial version of Quicken out of curiosity a few months ago,just to keep track of my personal expenses.The monthly report was a real eye-opener, I was surprised how much money I spent on things that weren’t that important" - Alice, comment post

M A I L B O X

"I am trying a new thing called "budgeting", so was browsing google to find an article on the percentage of your income that you should spend on your expenses e.g. 40% of your income on your house, 25% on your car, 15% on groceries etc. but I couldn't find any. So I thought, it could be a good article for your next issue?" - Marius McAlpine, email

"Thank you for the good tips. My most successful days seem to just happen when I set priorities and goals for the day and stick to them. Regards" Robert Jewell, Accounting for Entrepreneurs, comment post

"Great Blog Entry! I agree we must ask our selves how our actions benefit other. The more we help other people to achieve their goals the closer we get to ours" - Rick, blog comment

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"Huge addict of the page, a lot of your posts have truly helped me out" - Karen, blog comment

Have your say! Write to us at editor@wealthwisemag.co.za!

The best comments will be published in our next edition!

WealthWise 5

Darryl Comley-White is the

founder of Market Magnet, a marketing consultancy service business that helps businesses from various different backgrounds and industries to increase their profits without wasting more money on advertising.

An accomplished speaker, trainer and author, Darryl is a big fan of Jay Conrad Levinson's guerrilla marketing. His marketing strategies are adapted for the South African marketplace he caters for.

Read his refreshing article on marketing in our BusinessWise section, page 36.

Robert CA Jewell is a Chartered

Accountant (SAICA member number 00170991), a Registered Accountant and Auditor (IRBA practice number 935379) and has a Masters Degree in Business Administration from Wits University.

C O N T R I B U T O R S

He has served entrepreneurs since 1989 and is the co-owner of Accounting for Entrepreneurs, or a4e, an accounting, auditing and consulting organization which focuses on the support, training, growth and development of entrepreneurs and their businesses. His company was nominated as a finalist in the 2010 Capital City Business Chamber Business of the Year competition. Read Robert's article in our BusinessWise section, page 40.

Lauren Fleiser (Internationally Qualified

Trainer, BCom, MBA) had her first successful business at the age of 12 and has been bitten by the entrepreneurial bug ever since. She has accumulated years of hands on experience in owning and running operations in various industries, ranging from one-man businesses up to 100 man businesses.

Lauren is the owner of Inspired Initiatives Consulting (Pty) Ltd and the creator of The Trutrepreneur™ Programme (say: troo-trup-rener).She is driven to help as many entrepreneurs as possible to achieve their dreams via a business. Read Lauren's article about developing a viable business model in our BusinessWise section, page 42.

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Cristine Scolari practices as a clinical

psychologist for over 10 years and specialises in children and adolescent mental health issues. She deals with a variety of children’s difficulties such as anxiety, low self-esteem, trauma, grief, acting-out behaviour, divorce, bullying and bereavement.

Cristine sees assessments as vital in understanding children’s functioning and uses a holistic approach on an intellectual, scholastic and emotional level. She is currently practicing at Sandton Psychology Centre. Read Cristine's advice on how to teach children money habits in our MoneyWise section, page 24.

Mike Carnie is a financial advisor and

director of Strategic Financial Consulting, a financial services company based in Centurion. Strategic Financial Consulting is an independent brokerage, with access to a wide range of financial products and services from a host of financial service providers. The company specializes in the structuring of investment and insurance portfolios for business owners, corporate entities and individuals. Read Mike's contribution and advice on how to teach children money habits in our MoneyWise section, page 24.

Want to appear in WealthWise magazine?

Would you like to contribute for WealthWise magazine? We are looking for fresh, witty and compelling content for our magazine's sections.

If you are interested in one of this topics: life skills, money management, business advice, career development and wellness (travel, lifestyle, healthy living etc), please send your article accompanied by a short profile of yourself and your work and a high resolution photo (maximum 2MB) to editor@wealthwisemag.co.za and you might just see your profile article in our publication!

WealthWise

magazine

Publisher REO Media Solutions Managing Editor Denisa Oosthuizen denisa@wealthwisemag.co.za Contributors Darryl Comley-White, Robert CA Jewell, Lauren Fleiser, Lisa Sales and Marketing denisa@wealthwisemag.co.za Graphic Design REO Media Solutions Distribution www.wealthwisemag.co.za www.wealthwisemag.com Copyright All content and information within WealthWise publication is property of the Publisher and should not be reproduced, copied or entirely quoted without the prior approval of the Publisher, being protected under copyright laws.

Should you wish to make use of any of the content displayed please contact us at denisa@wealthwisemag.co.za or editor@wealthwisemag.co.za.

WealthWise 7

L I F EW I S E Quick Read: 7 Steps to Build Self-Awareness Cultivating self-awareness is about knowing who you “really” are as opposed to

who you “think” you are. Being open to judgmental opinions of others is a good exercise to open your eyes, consider why people treat you in a certain way and how to make improvements.

• View yourself for a moment as others do. Ask your friends, family or colleagues for a neutral opinion in pinpointing your strengths and weaknesses (and those blind spots you cannot see yourself). Cultivate the good qualities and ditch everything that’s holding you back.

• Ask for feedback with simple questions such as: “How do you think when I …?”, “What can I do to improve this situation?”, “What would you do if you were in my position?”, “How can I improve myself on…?” Be honest and acknowledge to your friends and family that you want to develop yourself in every aspect of your life when you ask them for feedback. Prepare for discomfort, but don’t get offended when asking sincere feedback.

• Accept that the way people treat you is the reflection of who you are, rather than who they are. But also accept that individual opinions voiced don’t mean the whole picture of others see you.

• Don’t be hard on yourself. Often others see us in a better light than we do. Remind yourself what you are grateful for. Remind yourself that your perception of self is not always how others experience us. Revisit your intentions as often as possible and make readjustments if necessary.

• Learn to control your emotions in a healthy way. Develop your EQ potential (emotional intelligence) to allow yourself to grow socially. Listen to your and others’ body language and nonverbal behaviour for reactions, clues and feedback. Pay attention and take time to respond accordingly – don’t rush your judgment.

• But…don’t overanalyse people’s reactions. Their opinion is just one way towards your self-awareness. Build confidence and listen to your emotions too – don’t rely on external information only.

• Go for coaching or training to know your personality profile and what can you improve on yourself.

WealthWise 9

Rise and Shine!

by Denisa Oosthuizen

“Early to bed and early to rise makes a man healthy, wealthy and wise” – Ben Franklin

Simply put, there are two different kinds of people: those who woke up early

ready to conquer the world (early birds) and those who find their productivity levels peaking after the sun is long gone (the night owls). What are the benefits of waking up early? Is an early riser a better and faster achiever? What about the old saying “Early bird catches the worm”? We thought of exploring these questions and give you the extra needed help in case you want to become an early morning riser (which hopefully you would want to by the end of reading this article!).

Robin Sharma, the force behind bestseller “The Monk Who Sold His Ferrari” talks about the “Ritual of Early Awakening” in his writings: “One of the best pieces of advice I learned in that far-off oasis of Sivana was to rise with the sun and to start the day off well...The ten-minute period before you sleep and the ten-minute period after you wake up are profoundly influential on your subconscious mind (…)Think positive thoughts. Give a prayer of thanks for all you have. Work on your gratitude list. Listen to some great music.

Watch the sun come up, or perhaps go for a quick walk in natural surroundings if you feel up to it”.

In one of his following releases, “Discover Your Destiny behind The Monk Who Sold His Ferrari: The 7 Steps of Awakening”, Sharma includes early rising as its first devotion in “The 5 Daily Devotions” book prologue.“Rise each and every morning at 5am. Those who get early are those who get the best from life”.

His second devotion continues: “Set aside the first sixty minutes of your day as your ‘holy hour’. This is your sacred time to do the inner work (prayer, meditation, journaling, reading from the wisdom literature, reflecting on the state of your life) that will help you live your highest life”.

Eastern philosophy seems to put more emphasize on waking up before sunrise than its western counterpart. Waking up early with the first rays of the sun penetrating the dark horizon or just before the moment itself is a both refreshing and therapeutic experience, requiring much needed discipline and courage to stand up for the new day to come. Although debatable and sometimes viewed as “unhealthy”, since the human body needs at least 7-8 hours to sleep and most of us are late-night sleepers, juggling active work, family and social lives, waking up early does have its wonderful benefits. Here is a morning ritual that could enhance your life for better:

10 WealthWise

LifeWise Practice gratitude. Greeting a new

day and taking a few moments to express gratitude for your blessings will make a huge difference in your daily activities. The Dalai Lama once said “Everyday, think as you wake up, ‘Today I am fortunate to have woken up, I am alive (…) I am going to expand my heart to others, to have kind thoughts towards others’ (…)”. When you first wake up, don’t think about the problems you have to face or solve that day. Practice gratitude, look for opportunities and replace negative thoughts with positive thoughts.

Enjoy the silence. The early mornings

are peaceful, quiet and deeply rewarding, away from traffic, television or other noises.

Now is the time to think about your day ahead, meditate and so on.

Watch the sunrise! It’s one of the

most beautiful and therapeutic sights: the rise of the sun.

Eat right. Waking up early gives you

extra time for preparing and consuming a healthy breakfast. Breakfast is, after all, the most important meal of the day. Make sure you have enough time for it.

Get exercising. An early morning run

helps kick start an active day. If you find yourself often cancelling your post-work exercising, due to other social or family commitments, switch to a morning exercise routine.

Plan your day. Waking up early is a

boost for your productivity levels. Use this time to take advantage of the nodistractions and plan your day ahead to make your daily workload easier. This way there’s a big chance you won’t have to work over schedule and dedicate more time to yourself, family and friends.

Work towards your goals. Decide

Become an Early Riser!

• Don’t make drastic changes.

Start slowly, by waking just 15-30 minutes earlier than usual. Get used to this for a few days. Then cut back another 15 minutes. Do this gradually until you get to your goal time.

• Allow yourself to sleep earlier. You might be used to staying up late, perhaps watching TV or surfing the Internet. I suggest going to bed earlier, even if you don’t think you’ll sleep, and read while in bed. If you’re really tired, you just might fall asleep much sooner than you think.

• Put your alarm clock far from you bed. If it’s right next to your bed, you’ll shut it off or hit snooze. Never hit snooze. If it’s far from your bed, you have to get up out of bed to shut it off. By then, you’re up. Now you just have to stay up.

• Go out of the bedroom as soon as you shut off the alarm.

Don’t allow yourself to rationalize going back to bed. Just force yourself to go out of the room.

• Have a good reason. Set something to do early in the morning that’s important. This reason will motivate you to get up.

• Make waking up early a reward. Yes, it might seem at first that you’re forcing yourself to do something hard, but if you make it pleasurable, soon you will look forward to waking up early. Find something that’s pleasurable for you, and allow yourself to do it as part of your morning routine.

• Take advantage of all that extra time. Don’t wake up an hour or two early just to read your blogs, unless that’s a major goal of yours.

Don’t wake up early and waste that extra time. Get a jump start on your day!

every day the one thing that you have to do in order to move closer to your main goal.

Early mornings are the best time to tackle this. See more tips at Source: www.zenhabits.net www.howtowakeupearly.com.

WealthWise 11

B e y o n d G e n e r a t i o n Y

by Denisa Oosthuizen

LifeWise

The rise of Internet and social networking, the increase exposure to global

markets and media calls for a different approach to understanding, managing and empowering Generation Y (born between 1978 to early 1990s), the youngest of the generations in today’s workplace and its predecessors: the computer-savvy, multitasking and highly demanding Generation Z (born between late 1990s and 2010) and Generation Alpha (born after 2010). What should we expect from the newest generations and how do we shape the future of the next generations of leaders?

A New Attitude Unlike its predecessor, Generation Z, the GenYers (the Millenial Generation) display a no-fear, demanding, curious and ambitious attitude, challenging the old hierarchies, systems and structures not only in their personal lives, but in the workplace and business in general. Although demographers differ in establishing the boundaries of Generation Y, general consensus indicates anyone born between 1978 and 2000, some experts have divided the Millenials in Generation Y(born between 1978 and 1990) and Generation Z (born between 1991 and 2000). This separation can be explained given the accelerating pace of change.

Generational expert Bruce Tulgan, internationally recognized as the leading expert on young people in the workplace, and best-selling author of “Not Everyone Gets A Trophy: How To manage Generation Y”, acknowledges that "Generation Y calls for strong leadership, not weak. This might be the perfect time for business leaders, managers, and other "grown-ups" to give a much needed reality check to Generation Y employees (those born 1978 and later)."

In an interview published in his book, Tulgan admits that “the same major historical forces that shaped Generation X are also shaping Generation Y: Globalization and technology, institutions in a state of constant flux, the information tidal wave, and the growing immediacy of everything.

‘Generation Y calls for strong leadership’

But those forces have picked up so much velocity in just one generation that I would argue there is a profound difference in the life experience of Generation Y—a true generational shift. Gen Yers have never known the world any other way. Uncertainty is their natural habitat.”

According to Tulgan, generation Y “has been much analyzed, but largely misunderstood”. The misconceptions and myths about younger generations, particularly in this case, have been mistakenly led management to reconsider their recruiting and retaining programs focused on the ideas of fun, rewards, interactive computing and an over-the-top friendly working environment.

Among other claims, GenYers want to be taken seriously. In his book, spanning more than a decade of research, Tulgan affirms that "GenYers don't need to be humored in the workplace. They need to be taken seriously. Managers need to

WealthWise 13

LifeWise hold them to high standards and help them every step of the way to reach those high standards. Generation Y is the most high-maintenance workforce in history, but they also have the potential to be the most high-performing if they are managed the right way”.

Innovative Minds One point that Tulgan agrees on is the self-possession and over confidence of the GenYers, which apart from making them the “over supervised generation”, gave their predecessors, parents educators and recruiters the false impression of entitled, intolerant of rule-based structures, highly critical and non-conformist persons. But there are some good lessons to be learnt from this.

The “superchildren generation”, as viewed by Tulgan, has gone through massive shifts towards early precociousness or accelerated childhood, creating a strong background where entrepreneurial tendencies could manifest. Rather than being just stubborn and critical, GenYers had the chance of becoming fiercely independent, risktakers, multi-taskers and highly entrepreneurial.

“They take the concept of diversity to a whole new level. For Generation Y, difference is cool. Uniqueness is the centerpiece of identity. Gen Yers continually shape and reshape their uniqueness. They want to customize anything and everything they possibly can. Gen Yers want to customize their very minds, bodies, and spirits”, notes Tulgan.

This uniqueness brings new attitudes and behaviors that require adjustment and a different perspective on recruiting, developing, engaging, motivating, retaining and educating GenYers. Unconventional and not restrained to ordinary thinking, these individuals strive in highly competitive businesses, adding their highly innovative and creative ideas to the mix, shifting the focus from seeing problems to creating opportunities.

Despite the fact that autocratic styles, strong vertical hierarchies, routine and inflexible schedules are not highly positioned on their list, GenYers are not to be dismissed. “They do want work to be engaging. They want to learn, to be challenged, and to understand the relationship between their work and the overall mission of the organization. They want to work with good people and have some flexibility in where, when, and how they work”, says Tulgan, although he emphasizes that “boundaries and structure” are paramount to their inclusion in a working or business environment.

A challenging, interesting environment seems non-negotiable for today’s younger

14 WealthWise

LifeWise generations. Collaboration and open-plan environments are the norm, although that doesn’t signify a complete disregarding of titles, hierarchy or individual appraisal (in fact, they love to be praised and rewarded).

However, GenYers are much more likely than previous generations to request flexibility, negotiate employment terms, demand all-day round access to technology, instant messaging and social media (Facebook, Twitter, LinkedIn, Skype etc), expect to be recognized on their performance and input, ask for frequent feedback, want to be provided with social opportunities and (ideally) the framework to expose, share and cultivate their own ideas in the organization.

Their highly risk-tasking profile as compared with previous generations makes the GenYers the ideal candidates for high risk investments, business ownerships, a deeper understanding on managing their finances and “taking matters in their own hands”. Leaders in their own way, GenYers strive for difference, independence and innovation, consequence of the emerging markets, technologies and forward thinking worldwide.

Beyond Y: Generation Z Will the next generations born beyond 2000 be as non-conventional as the GenYers? Can we hope for a next generation of leaders and entrepreneurs? How would the next generations be like, act like and think like?

Today’s teenagers, Generation Z (Internet Generation) are highly connected, having been exposed since infancy to media technologies such as SMS, instant messaging, social networking, YouTube, wireless broadband and mobile phones.

Unlike previous generation, the GenZers rely pretty much on digital life and mobility, having a wider immediate access to smartphones and Internet portable devices (think about the iPad revolution). Their birth coincides with the birth and rising of Internet and browsing.

According to an article published by Teacher Librarian in 2006, “these youths are the first generation to be born into a digital world. What distinguishes these adolescents from those of every other generation is that they are the most electronically connected generation in history”. In other words, a striking difference between Generation Y and Generation Z is that older members of the former can still describe their lives before the takeoff of mass technology, while the latter have been born completely within it.

This entirely dependency on technology and digital worlds have prompted psychologists to claim that GenZers are prone to an “acquired Attention Deficit Disorder (ADD)”, characterized by lack of focus and much lower attention span than previous generations. In an entry posted on Teen Life blog at pressdemocrat.com, rightfully titled “The Life of Generation Z”, a teenager, member of Generation Z, acknowledges its peers as instant minded, impatient and lacking ambitious, as in “they’d rather tweet or play a video game”.

In an article “What will Generation Z be like at work”, published in 2009, Penelope Trunk, founder of Brazen Careerist, a career management tool for next-generation professionals, says that Generation Z tends to be more individualistic than its predecessors.

WealthWise 15

LifeWise

‘members While

of Generation Y are team-orientated, members of Generation Z are more self-directed

’

“We know from Strauss and Howe (note: authors of “Millennials Rising”, considered the authorities on generations) that as generations cycle, the team generations (such as Generations Y) are usually followed by individualist generations. So it is not surprising to see trends that the same thing will happen over the next decade”, cites Trunk.

While members of Generation Y are group and team- orientated, members of Generation Z are more self-directed. According to New York Times magazine, parenting is less focused nowadays, leaving the GenZers free to learn about self-discovery, much like the Generation X did decades ago. It’s a cyclical approach.

Although more consumer-oriented than previous generations and highly dependent on technology on a daily basis, there is one thing that distinguish GenZers from their older counterparts: the ability to process information at a lightning speed, as neuroscientists agree that today’s human brain is changing faster than in the prehistoric times. Will this make them a smarter generation though? Possibly, however still a subject of current debate among demographers.

According to campaignbrief.com, a research by online virtual world site Habbo.co.uk, which depicts consumption habits of Australian youth, indicates that Generation Z is more focused on “career stability in their adult lives, ecological responsibility, and social justice”. It’s a conservative look, derived from the past years’ recession outlook. “The recession is going to have a huge impact, and Generation Z are going to be much less likely to take risks, and are far less likely to travel or want to work abroad”, says the study.

The research also found that GenZers are more altruistic than GenYers, are strong brand savvy, enjoy advertising and media, seem to be more consistent about their likes and dislikes, have a strong sense of community and appear to care less about fame and fortune than Generation Y. From the career-hoppers, experimentalists of Generation Y to GenZers’ attitude of knowing what they want, we might just be faced in the near future to a coming out of tech-savvy, multi-tasking, brandbuilders social entrepreneurs.

Beyond 2010: Generation Alpha The next generation, born from 2010, will be called Generation Alpha or Generation A, the truly millenial generation since they will be entirely born into the 21st century, unlike the GenZers, whose oldest members were born on the cusp of the 20th century. Children of the Generation Y and the older members of Generation Z, the new Generation A is set to be the most formally educated ever, according to social researchers and sociologists.

"It's not so much going back to the beginning as starting a brand new page", said

16 WealthWise

LifeWise researcher McCrindle, the author of a new book about global generations, The ABC of XYZ, cited by Australian press. The new terminology, Generation A, is inspired from the Greek alphabet after scientists exhausted the Latin (W,X,Y,Z).

According to McCrindle, the new generation will begin school earlier, will study longer than previous generations and are expected to be more materialistic and technology-focused, as their parents from Generations Y and Z perfectly understand the consumerism and technology era they grew in.

If sociologists claimed GenZers to be more individualistic and focused on one direction, a point still to be discussed, research by McCrindle indicates that the Alphas could be prone to work longer and have more careers and different employers in their lifetimes. Sounds like Generation Y all over again, but could the Alphas instill a new era of leadership beyond 2030, when they will make part of the youngest global workforce?

Famous GenYers who changed the world Mark Elliot Zuckerberg

(born May 14, 1984) is famously known for being the co-founder and CEO of social network Facebook.

Zuckerberg co-founded the notorious social network in 2004 with his classmates Dustin Moskowitz, Eduardo Saverin and Chris Hughes while they were all students at Harvard University.

Today, Facebook caters for more than 500 millions users worldwide and Zuckerberg is one of the world’s youngest billionaire. In 2010, Zuckerberg was named Time Person of the Year by Time magazine.

Furthermore, the romanticized story of how Facebook started was even pictured in the movie “The Social Network” (2010), directed by David Fincher and starring Jesse Eisenberg in Zuckerberg’s role.

There is something to celebrate about the future generation after today’s labeled Generation Y and that is individuality, a recognition of customized lives that will carry on throughout Generations Z and A. With a definitely increase in access to Chad global information, social interactions and Meredith upfront technology, the newer generations Hurley (born will absorb faster, harder and more than 1977) is the coever and this is encouraging, as the founder and possibility of becoming increasingly aware former Chief of global economies, wealth and financial Executive Officer matters could happen at an earlier stage. of the popular Wouldn’t you prefer your children to fully video sharing understand and embrace this valuable website YouTube. knowledge by the time they turn 16, say Previously employed by Ebay’s division 18?

PayPal, he co-developed YouTube in 2005 with fellow PayPal colleagues Do you believe in a next generation of leaders? Share your thoughts on the topic Steven Chen and Jawed Karim. In 2006, just one year after YouTube’s at editor@wealthwisemag.co.za. The launch, he sold the company for $1,65 most interesting comments will be billion to Google. YouTube operates published in our April edition. now as a subsidiary of Google.

Source: Wikipedia.com

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M O N E Y WISE Quick Read: 7 Tips For Wise Investments Stick to these valid truths whenever you’re crafting your investing strategy and you are bound to make better choices next time!

Time is not that important. There is no specific time and market cycle

when it’s better to invest. Any experienced investor will tell you that any time is a good time, providing you get personalized guidance based on market situation and your investment needs carefully assessed beforehand.

The sooner you start investing, the better. Your returns will prove far greater if you start investing as early as possible. No excuses!

Patience pays (in the end). The success of your long-term investments lies

in your commitment. Choose wisely your investment funds and portfolio and don’t change your strategy too often. Think of how your short-term changes might affect your long-term planning.

Diversify. If you want to reduce your overall portfolio risk, consider a variety of

investment options, but don’t lose focus though. In other words, the saying: don’t put all your eggs in one basket! is true for your investments, too.

Leverage the power of compound interest. You can achieve better results when choosing an investment plan that will give you back exponentially more for your initially invested bucks. See on page … how compound interest works.

Think why, when, what and how. Assess why you are investing, what

are your investment goals, the timeframe you have in mind for your investments (short or long term), when and if you need constant access to your investments, how would you proceed according to your risk tolerance levels and so on. Be prepared.

Review regularly. Your investment strategy should incorporate your asset

allocation based on your investments goals and expectation, market conditions, opportunities in the market and so on. It’s a good idea to review your plan regularly to accommodate any changes – but modifying your strategy too often can hurt in the end.

WealthWise 19

Leveraging global markets Interview with stock trader Jacques Magliolo

by Denisa Oosthuizen

Born in Morocco and bred in Port Elizabeth, South Africa, French Jacques Magliolo has become one of the most successful stock brokers on the continent and an inspiration for thousands of traders. We chatted to the non-conformist Jacques about his career and latest book, “The Lore of The Global Trader”.

WealthWise magazine: Tell us more about yourself. How did you come to get involved in stockbroking?

Jacques Magliolo: I came to South Africa in 1969, grew up and went to university in Port Elizabeth. I’ve always wanted to be in stockbroking. In 1986 I approached a number of stockbrokers. Those times you had no chance of entering – it was like an old boys’ club. Most of stockbrokers came from a media background. I enquired which media and was told Financial Mail. Being an ambitious person I called Financial Mail – it was a good timing as they had a course coming up. So I applied, I got into course, made sure I was in the financial markets and investment division. This was 1987. Three years later, I went to the same stockbrokers and said what I have achieved. “I went to Financial Mail, now I’m here”. They all laughed. “We need ambitious-driven people like you, join us”. I left Financial Mail and in 1990 I started as a junior analyst. The difference in stockbroking between the 90s and now is that back then they had an open-outcry system, with dealers on the trading floor shouting at each other, buying shares from clients between each other and now everything became electronic. From there I build my way up to become a director and head of research and strategist for stockbrokers Global Capital Securities. Stockbroking is a very exciting career, but it’s a full day job from 4am till after 10pm and I was beginning to feel claustrophobic. In 2000 I left and started my own company Business Consultants International. The company deals with two aspects: corporate finance for start-ups who want to list their companies – I have just listed a company last April on AltX – and the writing of books that bring a change of environment in the stockbroking.

WealthWise magazine: How is your latest release, “The Lore of the Global Trader”, different than the previous books you have written on how to trade?

Jacques Magliolo: In 1995 still, the broking community was pretty much a closed structure, an old boy’s club. You couldn’t play yourself on the stock market, you needed to have a broker. By 2005, the market has moved towards online trading with the development of Internet after 1998. “Lore of The Global Trader” is the fourth book in a series – "The Millionaire Portfolio", "Become Your Own

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MoneyWise

Stockbroker" and "Richer than Buffett", about how to start trading and trading strategies for the South African market. None of these books talked about globalization. Now you can go online, open an international account with a bank and start trading international markets. This book helps trades to understand and trade in foreign markets and between foreign markets, be it Chinese, Indian or European markets. The only restrictions for South Africans lie in the ability of opening up an account.

For example, foreign traders cannot set up account in USA, however if you can open a UK account you can trade the American markets too from that account. You can trade anything from commodities to futures to foreign exchange. Technology has enabled the individual to become a day trader.

WealthWise magazine: Is the book focusing on day trading as opposed to long-term investment?

Jacques Magliolo: The long-term investor doesn’t

‘The stock market

is the leading indicator of the economy, not the other way around

’

tend to want to invest in the foreign markets. A day trader opens an account in the morning and closes it down in the afternoon. The day trader is a highly skilled individual who is knowledgeable in the market. The global markets are for day traders – as a long-term investor you don’t have the time to follow the strategies involved in day trading.

WealthWise magazine: What is the ultimate goal of the book? Is it essentially for South Africans?

Jacques Magliolo: It’s for anyone in the world. What the book does, unlike others, is to determine which is the best trading style for you. These trading styles and the strategies inside the styles are then detailed in the book. Your trading style depends on your personality, the time you have to trade and your knowledge on the market.

WealthWise magazine: You mention a highly computerized trading world in your writing – how is this shift from traditional to online trading affecting the trader’s personal touch/emotion/gut feel/ sentiments?

Jacques Magliolo: Electronic trading is all anonymous. If you want to buy a share quicker than anyone else, you make a higher offer. The electronic environment is a queuing system. If you buy the share at the current market price, you simply go to the back of the line. All orders are filled from the front. If you want to sell now, sell at the lower price and jump the queue. You have to understand the environment you’re in before you trade. That is the most basic rule of investing. The second rule is to understand which is the leading indicator. The stock market is the leading indicator of the economy, not the other way around. If you get it wrong, every trading decision will be based on the wrong assumption. You really need to understand fundamentals before even looking at technical aspect. Stockbroking is a profession and you cannot move from one profession to another without studying the markets. There are no shortcuts.

WealthWise 21

MoneyWise WealthWise magazine: How much should the gut feel/instinct part reflect in trading decisions, in your opinion?

Jacques Magliolo: If you really understand the markets and how the four environmental factors influence shares – economy, politics, business and technology – then your gut instinct starts to kick in. It only does the better your knowledge and skills. It’s different than reacting on fear or greed. Gut instinct is not emotion. It comes with experience.

WealthWise magazine: What makes a good trader?

Jacques Magliolo: A good trader must have complete discipline, work ethic, commit to the trading strategy (not breaking its own rules) and the work schedule.

A good trader needs to understand that if anything happens in the Asian markets, how would that ripple-effect South Africa, for example? We’re heading towards a 24 hour market, where we can trade anytime. The Internet didn’t give an advantage, it just made possible for trading hours to become more complex.

WealthWise magazine: How often do you trade now? Can you give us insights in your next book?

Jacques Magliolo: I’ve closed all my position last year. I’m concentrating on special projects, the upcoming books and I’m also involved in setting up from scratch a new stock exchange in an African country and it takes a lot of time. The next book is called “Six Steps to Trading Like a Pro”. It’s based on the contents of the workshops that I’ve been given over the last eight years.

WealthWise magazine: You have referred often in the book at investor’s personality as paramount in building a trading strategy – can anyone be taught and succeed in global trading?

Jacques Magliolo: There are unrealistic expectation to trading. I have people coming to me and saying they want to trade global markets in three weeks, whereas they took several years to be in their current profession. Unfortunately it’s not like that and you need to understand the market, what the technical indicators do and what to do when something happens in the market. Markets move in an irrational manner. It’s not always buy when a share price goes up. Sometimes shares prices fall with good news and go up following bad news. If the market expected better news than the news that came out, the share price falls, if the market expected worse news than the news that came out, the share price rises.

As a trader, you must know what these things mean. You can learn to trade. The better your knowledge, the more you can trade. You must have full knowledge of the companies you’re buying shares from. What do the companies do? How different are they from the competitors? How did the share prices performed in the last months?

WealthWise magazine: What are the most important steps in a beginners’ preparation to trade, especially in global markets?

22 WealthWise

MoneyWise Jacques Magliolo: What I do with my clients is that first I establish a long-term portfolio and then move to the futures market. You must first succeed in these before being comfortable with short-term portfolios. You need knowledge and then to built up capital. You have both currency and country risks in global markets. Try and look at a virtual portfolio and understand it before trading with real money.

WealthWise magazine: You mention mentorship as absolutely necessary for traders – could you explain in detail how this relationship should evolve?

Jacques Magliolo: Mentorship is individual assistance. I help my clients to build knowledge, to know they have someone to call and guide them. They need someone experience to be there for them. When they want to buy shares, I tell them to look at random shares and think about it and analyse before trading.

When they do it, they know they are doing it with the knowledge behind it.

WealthWise magazine: How can day traders minimize the losses incurred by unpredictable moves or news in the market?

Jacques Magliolo: Many clients have a stop-loss. If the share price falls below that, you move the share. If you have a stop-loss strategy, use it. In the market you can make money with share prices falling. The skilled, disciplined trader will say: There are no problems in the market, only opportunities. There is a section in the book where I claim that famine, floods and war are good and it shocks many people. If you don’t agree, then you’re not ready for day trading. Because day trading is exactly that. Disasters create demands for companies to supply – you get the big picture. It’s not a nice thing to say, but a true trader will take advantage of the situation. You need to get to that mentality and accept it.

WealthWise magazine: How effective is trading in global markets as a wealth creation tool, as opposed to other means of investments like retirement funds or property investment?

Jacques Magliolo: Why should anyone in the world be limited to invest only in their country? One should be able to move money anywhere in the world as he pleases. If one country collapses, you should be able to move you money and be competitive worldwide. That’s what the extremely wealthy investors too. Real estate investments are assets limited to the environmental factors – imagine selling and moving the money, it will take months for the transfers, plus fees and taxes. You can buy shares in property companies – the stock market is available for every single aspect, derivatives, bonds, gold shares and so on. With day trading, there is no waste, cash is transferred into your account immediately.

WealthWise magazine: Your overview on the global trading markets in 2011?

Jacques Magliolo: This year, the world economy will start to align in terms of growth, which never happened in the bull of economy. The market will fall back a bit, but the growth is there. Some of my pessimistic colleagues think there will be a mighty crash by 2016, but by that time, the markets will be significantly higher than they are today. Every 3-4 years in history you experience a crash. We’re looking at a potential crash in the next few years, but not now. The new West is East. The Asian markets are growing ferociously. If the US markets become the third largest over the next ten years I won’t be surprised at all.

Contact Jacques Magliolo at +27(0)11 656 9387 or mentor@magliolo.com.

WealthWise 23

Daddy, are we rich?

by Denisa Oosthuizen

Teaching children about money needn’t be

inconvenient or, worse still, taboo, as in with sexuality. But in most cases it is, as parents fail to educate their children to understand the value of money, from childhood to adolescence.

Turns out that from as early as four years old we are exposed to various opinions on money and its effects on our little minds. Remember the words “money doesn’t grow on trees” – I personally used to envision every time a huge tree whose branches were carrying vast amounts of notes – “you have to work hard for money”, “money doesn’t bring happiness”, “we can’t afford this” or “it’s too expensive”?

The Money Talk “Like most things, education about money should be age appropriate and factual.

One has to be aware of a child’s developmental stage regarding teachings about money, for example what you tell a three year old is going to be different to what you tell an eight year old”, says Cristine Scolari, a child psychologist at the Sandton Psychology Centre in Johannesburg.

According to Cristine, the concept of money “would usually be inadvertently introduced” in early childhood when the child would ask Mom or Dad why they’re going to work, would become aware of going to the shop and buying something or would be denied the purchase of a toy when Mom or Dad may say is too “expensive” or “we don’t have enough money”.

These are, in each situation, the perfect occasions to have an open conversation about money. Cristine agrees that with younger children, discussions usually occur when the topic comes up in the normal course of the day. “For older children there can be a more formal discussion of money and money issues. It can be included in a family meeting, for instance”, she adds.

Financial advisor Mike Carnie, director of Strategic Financial Consulting, a financial services company based in Centurion, agrees. “There should be open discussions within the family on what the family budget is, how is the budget allocated and so on, the earlier, the better”, says Mike.

The discussions have to be age appropriate and should include how one acquires money, why stealing is forbidden by law, what money is normally used for and the principle of not wasting money, thus saving. It is imperative to acknowledge what kind of message is transmitted to the child – whether “money is not important” or “money is the most important”. Both messages are lacking in substance because they are not realistic.

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MoneyWise

Children should be given examples of defining the value of money in relationship with other values such as love, friendship, health and so on. Saying that money is important for one’s survival, but there are countless other things in life that count might be a better strategy than just solely insisting that “one needs money to survive” or “money doesn’t bring you happiness, there are more important things that money”.

More often than not, parents’ relationship with money will influence the way their children relate to money. If money is often discussed as a survival tool only, in a family who struggles financially, the child could grow up thinking that money is not just essential, but it’s hard or problematic to get – a “scarcity” mentality that could result later in life in acceptance, poor financial decisions, constant financial worries, perhaps an unhealthy emphasize on money.

‘should There be

open family discussions regarding money the earlier the better

’

If parents have a healthy relationship with money, developing a balance between their money values and other life values, the child has better chances to pick up on money not as a constant issue or source of conflict, but as a natural fact. Be careful though not to deny the importance of money or instill a carefree attitude – the child should understand that he will have to earn his/her money one day without parents’ help.

Rich versus Poor “Unfortunately in South Africa there is such a chasm between rich and poor and is something that does need to be addressed with children. For example, there are street beggars and children would naturally pick up on this. This could be an opportunity to explain what poverty is”, says Cristine.

Irrespective of the country though, the rich-poor discussion tends to become more complex, depending on the child’s age and understanding. It’s a social-related education that must emphasize first that all humans are equal and deserve respect – but due to other circumstances, we are not all equal when it comes to financial wealth. This could be extended to countries (for example, some have richer natural resources than others) and nations.

It is important though not to insist on the poor and rich families debate, but to cultivate gratitude if the child is part of a wealthier family or to inspire optimism if the child is part of a poorer family. The family one is born in shouldn’t be blamed or used as an example of financial failure, but instead be viewed as a starting point to one’s financial education.

“Parents shouldn’t shy away from discussing their financial situation though.

Financial problems shouldn’t be kept away from children. There is not always an overflow or money and children should understand why and that costs are incurred”, advises Mike.

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MoneyWise Those fortunate enough to being born in a prosperous environment should learn the value of money beyond accepting their “luck”, while those coming from poorer families should embrace a “can-do” attitude towards financial habits and money achievement.

Either way, children should understand that no matter your current financial situation, this is something not to ignore and doesn’t guarantee success or failure unless you let it happen.

“Children should ultimately understand how to create value and grow the money they have”, says Mike, who recommends children and teenagers to start reading books and articles on the topic, such as “Rich Dad, Poor Dad” series

by Robert Kiyosaki to further support their financial education.

Instant gratification versus delayed gratification The cornerstone of early financial education is to correctly understand the difference between instant and delayed gratification. This is the most challenging issue for parents and would determine later in life the child’s attitude towards using money as a “waster” or “saver”.

It is useful for children to receive a piggy bank to collect the money they are receiving. This would help the child learning how to be organized and put aside money. Children should be then educated to learn the difference between buying now or saving more money to buy later. They could take part in this discussion in a natural way, while choosing between various toys from a shop: “Do you like X or Y? X is cheaper, Y is more expensive. We could get X now or you could add more to your piggy bank and buy Y later”.

Children shouldn’t be blamed for wanting too many toys or completely being denied their wishes. But they shouldn’t receive every time what they want and there is a valid explanation behind this.

“Sometimes parents grew up without much many material things and they don’t want their children to feel “deprived”. What happens then is that parents buy everything a child desires. The child therefore doesn’t have to save or wait for a birthday or a religious holiday to receive something special. All that this teaches a child is that you don’t have to work for something you want and you don’t have to wait for it. The child therefore has difficulty delaying gratification and doesn’t learn that acquiring something comes from working for it”, explains Cristine.

She advises parents to ask themselves the following: “what am I teaching my child by buying everything he/she wants? Am I teaching my child valuable life skills by doing this?”.

Later in life, the child should be aware of associating saving habits with delayed

26 WealthWise

MoneyWise gratification and be wary of recurring too often to instant gratification. Parents should intervene to explain their children the importance of saving before letting them handle a loan or open a bank account in their name.

“Parents need to emphasize and be consistent regarding money. If they are encouraging their children to save for a bigger item, but their child spends their pocket money right away, it would be wise to not give him/her a loan as the child will not learn to delay instant gratification”, says Cristine.

With teenagers, Cristine believes it is often a good idea for a child to have a budget, for example, how much money is budgeted for entertainment, clothing and personal items. “I know some parents give an allowance and want their youngster to save a third of it”, she mentions.

“It is also important for children to understand how to plan for the future, why do they need to save for the future, that they won’t have money when they stop working unless they have put aside for it”, adds Mike, who believes it is a good idea for parents to encourage pocket money since an early age and open a bank account for their children, so they can see what is available for them regarding spending, school and university fees and so on.

This can be done from the early age of seven or eight, he says. On the other hand, Cristine agrees that older siblings may get pocket money sooner (not the same amount), “merely as a token gesture and to keep the peace” – although this is debatable - and that allocating money to children comes with more responsibility.

“When children can start being responsible and making decisions regarding money, it is wise to give pocket money. For young children, they will not know the value of money, so giving pocket money to a six year old or a four year old serves little purpose”, she explains.

There are other ways in which children can benefit and receive money for later purposes. “With children’s birthdays, especially very young children, there are often superfluous toys and items which children don’t really need or they will play with and then get bored and never touch it again.

Sometimes Moms and Dads usually have opened some type of savings account for the child and do appreciate money for the child in lieu of a present”, advises Cristine.

“Thus children still get some presents to make birthdays

WealthWise 27

MoneyWise special, but also some money which Mum and Dad can safely put away. Gift vouchers are also useful, as parents often find there is no waste and that items that are needed are bought. This may become more difficult for older children as they have ideas on what they would like to spend money received from birthdays”, she adds.

Parents must be also careful at the reasons behind giving pocket money. It is not recommended to pay your child for house chores or depending on his school grades. Children should understand that they help or study for themselves and not because they are giving money.

Never offer children money to acknowledge their correct behaviour. Saying “Either you listen to us/be good or you won’t receive any money from us” is not a loyal attitude and instills a dangerous ground where the child’s feelings are traded for money.

Also, it is advisable to encourage teenagers to start complementing their pocket money with additional income from suitable jobs (baby-sitting, sampling etc) that teach them to be responsible and become less dependent on their parents. This way they understand that they have to earn money, not just receive it from their parents.

External pressures Teaching children how to use money in an efficient manner shouldn’t be complete without realizing the major role that external factors, such as peer pressure, play in their lives. Especially in later life, children are developing inner values based on social factors such as friends’ preferences, popularity of brands, media channels reports and so on.

“It is also important to bear in mind that children today are pressurized as well to buy and buy in order to fit in or be “cool”. Parents should be vigilant if a child insists on an excessive amount of material things and is never satisfied, as this may indicate underlying emotional difficulties such as insecurity or inadequacy”, affirms the psychologist.

The recent global economic downturn has brought, though, a different approach to consumers’ habits. This is benefiting the next generations of parents and children to better understand money management in a larger context.

Seeing what lies behind a brand name or whether a purchase is justified has grown to be a more complex issue than ever, however it is a very necessary step to take in the world of an aggressive consumerism.

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MoneyWise Fortunately, ethical, environmental and ecological debates have become the norm and they should form part of children’s financial education.

“The world is moving towards more awareness or consciousness regarding how money is spent. Therefore, more and more people will be aware of what they’re buying (is this really necessary?) and will become more conscious of the different ways in which their purchases came about (for example, how animals are farmed in order to create meat products and how manufacturing factories are using children in order to produce cheaper clothing).

I do think it is useful to make children aware of and think about the aforementioned”, concludes Cristine.

What to say and what to avoid when discussing money Do’s and don’ts for parents •

Do keep to the facts.

• Do remember that money is linked to one’s value system and other emotional factors. (You may be spending money on your child because you are over-compensating or feeling guilty about a divorce for example; you may admire someone’s wealth when you know it hasn’t necessarily come via legitimate means).

• Don’t over-burden children with financial difficulties and stress. Whilst they need to be aware, often children will become very anxious and pre-occupied with the parents financial situation. Don’t overdo it.

• Don’t be blasé about money and money management, as it is an important life skill for children to learn.

• Do remember to model appropriate behavior. It is of no use parents telling children to save when Mom and Dad is not setting a good example. Children will learn when they see parents having a household budget and not making an impulse buy.

• Do give older children lee-way in terms of how/what they want to spend their money on.

• Don’t give an excessive amount of money as pocket money especially to teenagers, no matter how much parents may happen to have. Parents still need to be aware of what teenagers spend their money on, as giving teens for example, R500 to go out on a week-end night is asking for trouble.

•

Don’t be afraid to say “no” to constant demands for money.

• Do remember that when discussing money there are other aspects to discuss, such as security (regarding various scams); choosing a bank; awareness of bank charges and so on.

Source: Cristine Scolari, child psychologist at Sandton Psychology Centre, Johnnesburg. Contact Cristine at (+27) (0)11 024 2742/3 or email info@sandtonpsychologists.co.za. For more info, please visit www.sandtonpsychologists.co.za.

WealthWise 29

How Compound Interest Works Compound interest or effective

rate, also called end of term interest rate, is interest based on the total interest capitalized on the investment during the period or term of investment. Simply put, think of it as an interest earned on interest.

In our previous issue, we have discussed the difference between the nominal and the real interest rate. We have used the following example: An investment of R10000 in a fixed deposit at an annual interest rate of 10% yields an annual interest of R1000. Your account will hold then R11000 by the end of the year. In 5 years, at an interest of R1000 yearly, your account will hold R15000, representing the initial R10000 plus the interest rate carried over the five years, R5000.

Suppose you invest the R10000 in a savings account at 10% interest per year, only this time with compound interest. In the first year, your will have R10000 plus interest rate R1000, this R11000. In the second year, you will receive a 10% interest on your current balance of R11000, equaling R1100. Your balance is now R12100. At the end of the third year, your account will hold R12100 plus the 10% interest on the R1210, totaling R13310. In the fourth year, the balance will indicate R13300 plus the interest of R1331, thus R14631. At the end of the investment period, your account will have grown by a further R1463,10, reaching 16094,10.

Notice the difference between the two examples. Although not a major difference, your investment will benefit from a compound interest calculation according to the period (term) of investment and the amount of money invested initially. Note that compound interest can be added per day, month, year, depending on your savings account choice.

If you invest a R100000 at 10% net return, your investment will grow by R10000 after one year and R100000 in 10 years! Practically, you have doubled your investment from R100000 to R200000 over a period of ten years.

Now let’s look at this using the yearly compound interest formula. The yearly interest will jump from R10000 in the first year to R11000 in the second year, R12100 in the third year and so on, until the interest rate added to your balance in the final tenth year will be around R23579! Your balance will gradually show R110000, R121000, R133100, R146410, R161051 and so on, until the final tenth year where your investment will be now showing a whooping R259374! This represents an extra R59374 which was added by leveraging the power of compound interest. We have not only doubled our initial investment, but almost tripled it.

With compound interest you can achieve better sustainable profits for your hardearned money. However, as with the normal interest rate, make sure you understand the difference between a nominal and real interest rate.

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B U S I N E S S WISE

Quick Read: How to WOW Customers

Attract great customers by implementing simple steps in your daily approach. It’s easier than you think!

Build a good reputation. Honour your promises, respect your deadlines, always respond to positive feedback and negative claims. Be consistent and honest. Make no excuses and let this be your mantra.

Share your enthusiasm. Promote your products and /or services with keen

enthusiasm and confidence. If you can’t do this yourself, no one will. Set an example for your employees to share the same values and attitudes towards your company’s offerings.

Advertise your USP. Find your unique selling point and promote in everything

you do, from marketing and sales proposals to business cards. Don’t assume that a non-innovative product doesn’t have a USP – think out of the box in terms of quality, performance, speed, warranty, value add and so on.

Use testimonials. Ask for feedback from your current customers. Make sure you mention every success story to your future prospects.

Offer guarantees. Ensure your customers know that there is a guarantee if

they purchase a product/service – whether you offer a “money back” guarantee, a time-frame guarantee or expect full payment only if the customer is happy.

Keep it personalized. Make an effort to treat every customer as a highly regarded individual, follow-up regularly, say thank you for their support.

Communicate on a personal level – this helps build loyalty.

Know your customers. Have regular chats with your customers. Ask

questions on how you can improve your offer to them and what they expect from your service. Listen and get to know what your market wants.

Get involved in the community.

Strive to help people in the community that support your business, through local charities and community events.

WealthWise 31

Young Entrepreneurs

by Denisa Oosthuizen

WealthWise magazine has interviewed two

young African entrepreneurs to find out what it takes to succeed in the business world – because it’s never too early to start crafting your own path towards entrepreneurship. Find out how they did it and let yourself inspired by these amazing stories – proof that Africa has an undeniable entrepreneurial potential.

KK Diaz, 31, Managing Member at Rekopane Dot Biz Profile “I have always seen myself as a problem-solver. I’ve always had the passion and genuine interest to help others succeed way before I thought of starting a business”, admits KK Diaz, who started to fiddle with the idea of entrepreneurship since primary school, where he sold sweets and snacks to fellow scholars and neighborhood kids before registering a record label business at the tender age of 21. “Its mission was to help launch the careers of undiscovered talent. To a certain degree we succeeded, with very little resources and experience. One thing this experience taught me is that in business you must be a master of maximizing the very little you have available in resources”, recalls KK. He is now a managing member of Rekopane Dot Biz, a Johannesburg-based payroll and accounting solutions company. Founded in 2004, the company now employs 5 people and has over 40 clients in its database, including Surgical Innovations, Mayo Dairy, Sasol and ChemCity, to name a few. This year, the company targets an annual turnover of R1 million.

“What motivated me to start this business was the fact that the only way Africa and its people will survive to see an economically better future is through the generation of wealth and income. This, in my opinion, can only be achieved through entrepreneurship”, says KK, who decided to specifically address the high rate of failure in business and contribute towards helping businesses with the right payroll and accounting systems to boost their bottom line. Rekopane Payroll Services was born, now trading since March 2011 as Rekopane Dot Biz. The company Rekopane Dot Biz provides business people with the right payroll and accounting solutions to help them to keep track of their financials, as well as to make sure they comply with the government’s payroll and financial reporting compliance regulation.

“80% of businesses fail because they don’t have or they don’t use their current financial systems correctly.We help such businesses to acquire and implement effective payroll and accounting systems so they can improve their chances of success”, explains KK.

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BusinessWise Prior to launching his company, KK has joined Softline Pastel as a payroll and accounting software consultant and trainer, after completing a BCom degree at UNISA where he studied tax, accounting, business management, auditing and entrepreneurship. “I learned my current trade during this time and I’ll always be grateful for this experience. Even up to today I still have a very close relationship with Softline Pastel”, says the young entrepreneur.

The company has a varied client base, representing anything from small businesses to larger businesses with more than R200 million annual turnover. “Our existing and potential clients come from different types of industries ranging from security, financial, medical, advertising, fashion, mining, hospitality and everything in between. We have more than 5 bases of operation so we can service clients in areas such as the entire province of Gauteng, in eMalahleni (Witbank), Richards Bay, the Vaal. We even have clients in Cape Town who we service using remote support and our outsourced payroll”.

How he did it

‘youIn business must be

a master of maximizing the very little you have available in resources

’

“I started my company with a zero budget. I chose the right business model and made sure that it would not require too much in the beginning. This was to minimize risk and be able to prove the concept before looking for or investing too much money in the business explains KK. Since late 2007, the company has caught the attention of Raizcorp’s founder Allon Raiz. Being under the Raizcorp prosperator has meant significant steps further and provided KK’s venture with the support structure he needed:“Raizcorp helped us to achieve the success we are currently celebrating by launching a new trading naming and a new brand, Rekopane Dot Biz”.

Apart from the strategic business partnership with Raizcorp, KK attributes his success to a careful planning and assessment of the company’s cashflow needs. His business model includes a monthly annuity income and payments and deposit in advance, which 95% clients commit to it. “We have low monthly operational costs and this has helped us survive the toughest times in business. We implement a lot of big and small ways to help us maximize our cashflow. More importantly we use the right accounting software and systems to help us determine our cashflow needs well in advance”, says KK. The Future KK’s visionary goals include securing 5000 businesses as users and resellers of its new web-based payroll application that would reach Southern Africa region. “I see us having created at least 100 job opportunities and turning over in access of R 12 million in revenue per annum by the year 2016”, says the ambitious entrepreneur.

To achieve his goal, Rekopane Dot Biz has to confront the current challenge of

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BusinessWise raising a massive funding of R2,4 million to launch the web-based payroll application. The project is nearly 90% completed with resources drawn from the company’s profits and savings since the past year.

“If the funds or investment doesn’t come we will launch it anyway, hopefully in about three months or less. So if there are any potential investors reading this they should contact us right away, instead of later on when it will cost them more”, explains KK, as always looking for opportunities to move one step closer to his goal of making a difference in the business world and the lives of entrepreneurs.

“Helping others is what I love most about what I do”, affirms KK. Lessons learnt “The most important lesson learnt was that I am part of an inter-dependent system and if I don’t pull my weight and add value to others I fail myself and them in the process. There are many other lessons and I continue to learn every day. Some of them include the following: • You don’t need a loan to start a business. Read Allon’s book ‘Lose the business plan’ to understand what this means.

• When you plan, remember that everything takes twice as long and will be twice as hard to do than you originally thought.

• People will gladly give you their money if you add value to them • A business will not survive if it does not add economic value to others. What is your economic value-add?

Ask yourself these questions first: What is your value proposition and why should customers buy from you and not your competitors? If you can answer those two questions you will be ten steps ahead before you even start. Innovate, be consistent and collaborate with others. Entrepreneurship is the most difficult thing you could put yourself through. It takes character to build a business, especially a big and long lasting business. So start as early as possible so you can make as many mistakes as possible early on and hold on for dear life”.

KK Diaz can be contacted at 011 838 8267 or kk@rekopanepayroll.co.za. For more information on Rekopane Payroll Services (Rekopane Dot Biz), visit www.rekopanepayroll.co.za.

Marlon Bernardo Hendrike August, 28, CEO Maluja International Profile For Marlon, business started as a family affair. “I was involved in trading my whole life. Both my parents run general business firms and involved me since my teens. I started working for them and eventually built my own bonds with clients”, he says.

Marlon is now the CEO of Maluja International, a Johannesburg-based commodity trading business

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BusinessWise with footprints in SADC countries like South Africa, Namibia, Mozambique, Angola, Malawi and Cape Verde. Although he inherited the family’s business, Marlon took it to completely new heights, expanding its roots to another three sub stations and investing in other ventures.

The company “At the core we are sourcing and procuring specialists. I am a trader, although not in the popular term. In fact, to be more specific, a general commodity trader”, explains Marlon. His company offers a wide product range of goods, from electrical to stationary, clothing and building materials, corporate gifts, furniture, fresh produce and so on. The commodities are sourced from local and international suppliers on behalf of local and international institutions. Established in 1998, Maluja International caters to an average of 40 clients, with an annual turnover of R5-8 million. The company currently employs 15 people.

How he did it Marlon admits that, especially in an Import/Export business, “getting out there” and understanding the trading legislation of different countries is what counts the most. “Networking and marketing is a huge primary goal for any business, especially when you don’t really have a product”, says Marlon. He is quick to point out that one needs to have a keen understanding of the world markets and local markets, trading legislation and news when dealing with commodities trading.

Besides marketing, one of the biggest challenges the young entrepreneur has faced at the heart of his company was the cashflow demand. “Cashflow was difficult because we would spend a lot of money procuring for contracts that might not happen. We have run into various problems with debtors ordering and not paying for goods, but we have survived and learned. Luckily we have much stronger bonds with suppliers now and have our fingers on the pulse so to speak”, affirms Marlon.

The future Marlon can be easily identified as the typical serial entrepreneur. Although Maluja International gets most of his attention, he has invested in other businesses and is actively using his trading business to procure goods for his other ventures, while servicing its normal clientele. He is constantly looking at the next opportunity to capitalize on his investments.

Lessons learnt The best part about being an entrepreneur is doing things on your own terms.

Although Marlon enjoys taking decisions for the company, he finds working and consulting with other people equally enjoyable. He believes in building strong relationship with both his co-workers and clients.“Running a company is hard work.

I have to run a few businesses from other countries. People don’t trust your product, they trust and believe in you”, says Marlon. “Be informed, keep looking forward and no matter what, persevere”, concludes the young entrepreneur.

Contact Marlon at +27(0)11 807 8622 or marlon@maluja.co.za. Visit www.maluja.co.za for details.

WealthWise 35

Everything you know about marketing is wrong!

How guerrilla-marketing tactics will help grow your business

by Darryl Comley-White

For as long as marketing and advertising has been the driving force behind big

business, smaller companies have tried copying their marketing strategies with results that are less than desirable. This results in the general opinion among small business owners that marketing is expensive and does little to generate business.

These general options are true. So true in fact that the majority of small business owners have become so jaded by their own marketing activities that they have chosen not to market their business. Other business owners have heard stories of failed marketing attempts and they too shy away from actively growing their business.

Why? Everything you know about marketing is wrong! That’s why!

How can I say that everything you know about marketing is wrong? Look around, look at the marketing you see every day. We are bombarded by TV commercials, radio adverts, billboards and print advertising and as a result this is how we have now learnt to market our businesses. This could not be further from the truth as to how we should be marketing our business.

The type of marketing we have become accustomed to has its origins in the 1950s.

This was before TV had been launched in South Africa and the two largest advertising mediums were radio and print, although nowhere near as competitive or costly as it is today. The 1950’s is known as the era of the brand builders. Brand building worked off a simple formula adopted by advertising agencies, used even in today’s era of marketing and advertising.

This formula is so simple and yet out of reach to smaller businesses as the cost escalates in to the millions. The brand building formula, ‘C&R’ is how they base all their advertising and marketing expertise. C&R translated into laymen’s terms is Creativity and Repetition Advertising. Simply put, develop a creative catchy advert and repeat it so many times that it sticks. Almost like throwing mud onto a wall. If it is dirty enough some will remain behind and leave a lasting impression.

It is frightening how many millions this type of advertising can amount to, keep in mind that advertising is only one element of the vast array of guerrilla marketing

36 WealthWise

BusinessWise tactics at our disposable. Here is a brief example. A number of years ago I was involved with a large corporate advert in the motor security environment. They commissioned a budget of R3 500 000 for the production of their advert. The ad was cute and portrayed the essence of the company and the service provided to the public. Excluded in that hefty production bill was airtime fee across the variety of TV channels in SA. This amounted to a whopping R4 000 000, which delivered three months of airtime. The company then ran short of budget for the second half of the year and decided to rebroadcast the same advert for another R4 000 000, with far less effect. In total R 11 500 000 was spent on the ad campaign and not one sale could be tracked from the ad campaign.

Can you see how you have been trained to believe that TV, Radio and Print adverts are the way to market your business? As a small business you can market yourself for far less and generate generous results.

Jay Conrad Levinson coined the term Guerrilla Marketing in 1984. He is known as the father of Guerrilla Marketing and is considered a pioneer with his take-no-prisoners approach to marketing for the small and medium-size business owner.

Jay has authored and co-authored over 35 books, selling more than 20 million copies worldwide. His skills and marketing tactic have become part of the curriculum in many universities worldwide as they recognise that the standards of marketing have changed.

‘Guerrilla Of the 100 Marketing tactics, around 60 will cost nothing to implement

’

Adopting Guerrilla Marketing Tactics into your business is key to growing your business at an affordable marketing budget. There are over 100 marketing weapons, according to Jay, that should be considered when planning a marketing activity in your business. One of which is database marketing, using technology as a delivery vehicle.

Before any marketing takes place you need to establish the type of business you are in. You may be a service provider, you may sell products, you may be in manufacturing, hairdressing, plumbing or retail. Which ever it may be, know that your primary business is marketing: marketing your products and services.

Marketing is one of the only two activities that drives revenue, the other being sales.

The aim of Guerrilla Marketing is primarily to explore the untapped assets within your business. Those assets are your marketable entities that can and should be used to expose the benefits of doing business with you.

Of the 100 Guerrilla Marketing tactics, around 60 will cost nothing to implement into your daily marketing activities. These can be used in their simplest form, and stem from what is known as the ‘inner reality’ of the business.

The ‘inner reality’ of your business is everything you and your business stand for.

This could be the based on service excellence, owner and staff expertise, your guarantee (also known as risk reversal), time in business and other elements that make you stand out from the crowed of competitors.

WealthWise 37

BusinessWise Taking what we now know from your ‘inner reality’ and matching it to the ‘outer perception’, the experiences and opinions your clients have of your business, is the basis for the development of your USP (Unique Selling Proposition). Your USP becomes your superior promise to your clients and prospects of that which they will experience with your business based on other clients’ experiences as well as the ethos of your company.

Once your USP has been well constructed and implemented throughout all communication channels, the competition your audience faces is narrowed as they realise that you must be the obvious choice to do business with based on the superior promise you offer. You must be able to back up your USP with testimonials and references that have been blown away by your offer and service. There you have a number of Guerrilla Marketing tactics in place: testimonials, references and a compelling USP. One of the most obvious Guerrilla Marketing tactic is known as phone demeanour.

This baffles most business owners yet is so simple to implement and get right.

Your telephone is the first port of call to your business and so often the people operating the switchboard perform so poorly that every caller must wonder why they have called in the first place.

Make sure that every telephonic communication presents the best possible experience for the client. This goes for your voice mail as well as leaving messages on other peoples’ answering machines.

One of the most obvious Guerrilla Marketing tactics, which is usually underutilised, is your business card. Many business cards deliver the least amount of detail, which should be considered a waste of paper and print. Your card should inspire and motivate the prospect to take some kind of action. Next time you are at a networking event presenting your business take a good look at the variety of business cards you receive and separate cards those that move you from those that are not grabbing your interest. Then decide what needs to change on your card.

Picture your card as a mini portable billboard that advertises your company.

Spot the other guerrilla activity? That’s right, networking. There are obviously the good and the not so good networking events. Choose those that relate closest to your industry and learn the dynamics of effective networking. This will help to grow your list of potential buyers and even suppliers. Keep in mind that there are always sellers at networking events and very few buyers. This is however, a very good way to initiate relationships for future marketing.

That brings us to another guerrilla marketing activity, relationship marketing.

People like to buy from people they like and trust. The fact that they entrust their hard-earned cash into your offer means that some kind of working relationship needs to be established to ease the risk of the business transaction.

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BusinessWise There are many relationship tools available to small business owners that ‘automate’ the relationship process. These tie into other tactics such as email and digital marketing.

Guerrilla Marketing is everything you do, from the way you answer your phone to your dress code and appearance. It is any contact you have, or anyone representing you, with anybody or company.

Your marketing should start and have no end; it needs to been seen as a circle of events that continue year in and year out. These events should be structured on your Guerrilla Marketing calendar for easy reference and measurement. Every marketing campaign should be structured around your marketing plan.

Jay developed the seven sentence-marketing plan which delivers direction and accountability to your marketing efforts. This plan outlines the promotion, benefits, audience and budget of every campaign. Following these basic fundamentals of small business marketing will help your company generate sales and profits without spending unnecessary money on advertising.

If you want to improve the effectiveness of your email marketing call Darryl for a free, no-obligation exploratory session! This session will help you put the right message in the right sequence to increase the responsiveness to your marketing efforts.

For the past eight years, Darryl Comley-White and his team at Market Magnet Consulting has helped hundreds of businesses and individuals grow their bottom line profits without spending unnecessary money on advertising. Visit www.marketmagnet.co.za for more info or contact Darryl at 011 431 2349 and darryl@marketmagnet.co.za.

Read more about guerrila marketing principles in Jay Conrad Levinson's "Guerrilla Marketing" manual, a musthave for any entrepreneur!

Jay Conrad Levinson is one of the foremost business marketing experts in the world. His classic "Guerrilla Marketing - Easy And Inexpensive Strategies for Making Big Profits From Your Small Business" (pictured left) sold in over 14 million copies worldwide and marked the starting point of dozens guerrilla marketing-inspired books, a must-have for entrepreneurs and marketers.

Jay gives regular lectures to a vast audience ranging from small groups, businesses to enterprises and Fortune 500 companies.Visit his website at www.gmarketing.com for more information about his books.

WealthWise 39

Would you rather be the tortoise or the hare?

by Robert CA Jewell, B Compt B Compt Hons MBA (Wits) CA (SA)

In my previous article, "How not to manage your business and personal finances", I wrote about the Spenders and their business Printing Pain, and how through a lack of focus and self-discipline they landed themselves and their business in a financial mess.

Their conduct is in many ways similar to that of the Hare in Aesops fable about the race between a tortoise and a hare. The Hare was swift and confident and was soon far ahead in the race. He then lost focus and decided to munch on some cabbages and took a nap before the race was over. When the Hare woke up, he found that the Tortoise, crawling slowly but steadily, and with tremendous self-discipline, had won the race. "Slowly does it every time!" he said.

Contrast the Spenders with today's case study, which is about the Tortoise* family and their manufacturing business called Wealth Manufacturing*. Mr Tortoise is a full time employee of the business and manages the business. He often works extended hours and is responsible for sales, marketing, production, quality control and research and development. Mrs Tortoise is a part time employee and is responsible for the bookkeeping and administration. She spends the rest of her time during the week attending to the needs of their children.

Ten years ago the annual turnover and net profit of the business were R500 000 and R30 000 respectively. The annual turnover and net profit for the last financial year exceeded R5,0 million and R2,0 million respectively, which is quite an achievement for a family business.

Mr Tortoise has been very innovative. He designed and built a moulding machine at a fraction of the cost of an imported model. He also changed the focus of the business, which initially was the design and manufacture of moulds, which required highly skilled employees.The business now uses the moulds to manufacture the end product for customers using production runs and employees who are less skilled.

He also gave a great deal of attention to quality control. As a result, Wealth Manufacturing has built up a good name in the market place. The business does minimal advertising. Most of its customers are referrals.

Mrs Tortoise has always kept accurate and reliable accounting and administrative records for the business, using an off-the-shelf accounting package. They were at all times instantly updated about the financial performance (income statement) and financial position (balance sheet) of the business. The Tortoises were in control of the business and accordingly were able to make informed financial decisions.

40 WealthWise

BusinessWise Sales were invoiced on time and the outstanding debtors collected when due. Bad debts were kept to a minimum. Their suppliers were always paid on time, as were their taxes, thereby avoiding costly penalties and interest.

The Tortoises also managed their personal finances prudently and lived within their means. They drove moderately priced motor vehicles. They have been living in the same house for the past 10 years, and although the house has been modestly refurbished, the costs associated with relocating to a new home were avoided.

They have been debt free for the past few years. Whilst many others have been drowning in debt and struggling to meet their commitments due to the high interest rates, the consequence for the Tortoises is that they earn more from their investments. Recently they acquired their first luxury car without incurring one cent of debt.

‘Success in

business rarely happens in an instant

The lessons from this case study are:

Success in business rarely happens instantaneously. It is invariably the result of

focus, dedication and commitment over an extended period. In the words of Thomas Edison: "Many of life’s failures are men who did not realize how close they were to success when they gave up"

’

Personal wealth is acquired through financial prudence and discipline, and a

commitment to save no matter what your level of income. Ten years ago the combined monthly income of the Tortoises was R5 000 per month.

They spent less than they earned and settled their debts. Today they are wealthy.

Maintain accurate and reliable accounting records for your business. It can either be a manual system or computerised system. An off-theshelf accounting software package will be suitable for most small businesses.

Look after and nurture your business and its employees, and

they will look after you. As entrepreneurs we can change the world and help to make it a better place."Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, It is the only thing that ever has"- Margaret Mead.

Adopt an attitude of continuous learning and innovation. "Live

as if you were to die tomorrow. Learn as if you were to live forever" - Mahatma Gandhi. By adopting this attitude, Mr Tortoise built a machine at a fraction of the cost which a supplier would have charged for a similar piece of equipment. The machine did not look good, but it got the job done and the quality was right. Many times we fill our lives with the bells and the whistles, all of which add to the clutter and the stress and fail to improve our lives.

So, would you rather be the Tortoise or the Hare? *Wealth Manufacturing and Tortoises are not their real names.

Robert can be contacted at 0861 000 a4e (243) if you're in South Africa or +27 12 460 1032 if you're abroad, email robert@a4e.bz or visit www.a4e.bz.

WealthWise 41

Building a Viable Business Model

by Lauren Fleiser

The term ‘business model is often bandied about in business circles without a real understanding of what the term actually means. In essence, a business model answers the question “How do I make money?” In other words, it is all about your revenue streams – how many revenue streams you have, what they are, how they work and how they link to each other. Revenue streams in turn are determined by your product or service offerings.

A business without a business model may be making money, but will end up at the mercy of the clients they attract, without achieving a long term, sustainable result.

A business that has developed a business model is working more strategically, has more focus and control over its long term direction and is therefore more likely to succeed over the long term. Every successful business has a business model. The components of a good business model include: • Clearly defined revenue streams that are tested for viability. These revenue streams will stem from clearly defined product and/or service offerings.

The revenue streams must be tested for viability to determine whether or not they will make good profits for the business over the long term. It is also important to try and create links between your revenue streams so that you can target the same customers with different offerings.

• Alignment with strategy. A good business model aligns with a good measure of strategic thinking and planning. A lack of working on strategy results in the entrepreneur getting stuck in their daily operation, going around in circles, without achieving a tangible end result for both themselves and their business.

• Alignment with personal dreams. The development of a business model is also a personal opportunity to achieve your own life goals. A business model maps out what you are setting up to achieve over the longer term for your business. Your business is a large component of your life. It is therefore possible to map out what you would like to achieve for your life in parallel with these more technical goals.

You can therefore achieve a business that aligns with the dreams you want to achieve with a bit of careful forward thinking.

A theoretical business model does not necessarily take long to set up, however the testing, building and implementation of the model is what takes time, patience and perseverance. However, once a business model is working in practice, it is always worth the effort and once a business model has been running successfully for at least 3 -5 years, you can reap both personal and financial reward.

Read about Lauren's Tru-trepreneur™ Building a Viable Business Model workshop in our events section, page 57.

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C A R E E R WISE Quick Read: How to Make a Good Impression

Afraid of being judged just another salesperson or worse, rejected? Here is what you can do to make a good first impression and secure that sale.

Use time to your advantage. Unfortunately for most salespeople, but true: your prospect will make his/her choice within less than five minutes – some in seconds!

Therefore make the best of your time, but don't rush things either!

Smile. Introduce yourself with a smile – people respond to other humans who are smiling. Make sure you send a positive, happy vibe when you meet your prospect.

Show your enthusiasm. Be enthusiastic about the product and/or service you are selling. Don’t overdo it or fake it – it will show.

Be polite and confident. Confidence is key to winning over your prospect. Don’t show either weakness or arrogance. Believe in yourself, have a correct attitude and put your good manners at work!

Know your offer. Product knowledge is key – know your offer inside and out!

Some prospects will be eager to ask more questions in order to decide if they want to buy or not – can you answer those questions?

Dress smart. People are more likely to trust and buy from a well-dressed person.

This is not superficial – the way you dress reflects attention to detail and respect for the company you are representing. Always dress smart when meeting your prospects.

Know your prospect. Find out more about the person or company you’re selling to. You might find some information that will help you in your sales proposal. Your research will be appreciated.

Be innovative. Suggest ideas that will help and improve the prospect’s business.

Your creativity will be appreciated. But don’t be too aggressive in projecting your ideas.

Leave a reminder. Leave business card, proposal, brochure, perhaps a small attention (branded pen or mug) to your customer to remind him/her of the meeting.

WealthWise 43

Recruiting the Inexperienced

by Denisa Oosthuizen

Recruiting people with little or no previous experience is not an easy job. But for most employers, it’s not a hard thing to consider either – the more work experience you have, the more it counts and yes, sometimes more than hard earned degrees.

If you aim higher, chances are you won’t be land your dream career too soon, especially if you don’t have past work experiences to show up for. WealthWise examines how can inexperienced people – graduates or adults with little or no work experience – break the ice in such a situation. Here is our advice: Aim high. Don’t put yourself in jobs or situations that you won't be happy with.

Think of what you want to achieve – long-term that is – and write down what possibilities you see to get closer to that. Don’t be motivated solely by money when you start a new job or venture – think about growth opportunities, career development and skills acquiring in the first place.

Market yourself. You must be able to present yourself in a professional manner, define your passions, aspiration and know what you are working towards.

Volunteer. Volunteering or joining charity work shows your responsible, willingness, compassionate side. Some employers do appreciate your efforts.

Be proactive/Network. Get involved in extra curriculum activities or extra courses to gain valuable skills. Join professional networks of your interest. Put yourself out there. Studies show that up to 80% of all jobs are found through networking and it’s not surprising in a fast-paced world.

Ask for references. With little or no work experience, count on your teachers, coaches, educators, reputable friends or members of the groups and associations you are part of to recommend your personal quality and skills.

Be online. Build a professional online profile on business social networks such as LinkedIn. Nowadays employers scan social media sites and other related websites before recruiting. Make sure you state clearly your interests and know exactly what you want to achieve.

Visit employment agencies. Don’t say no to part-time or temporary work when long-term positions are not available, especially if they are aligned to your interests.

44 WealthWise

CareerWise

Consider an internship. Whether paid or unpaid, an internship of your choice will help you understand more about your career choice and learn some valuable skills.

Go for entry-level with potential. Not every entry-level job has the possibility to evolve in a managerial role – if you know where you are heading to, choose wisely.

Get help. There are various assistance programs that can help you in deciding what you want and provide skills training that will ease your transition to a part-time or full-time position.

See a life coach. Most importantly, look for expert advice to help you decide on your future career path, if you are not sure about your choices.

’Don’t Aim high. put

yourself in jobs or situations that you won't be happy with

‘

How much does experience count anyway?

"I'd rather have a lot of talent and a little experience than a lot of experience and a little talent" - John Wooden , American basketball coach In an article aptly titled “Don’t recruit people based on experience”, written by international business speaker and best-selling author Alan Fairweather and published at www.ezinearticles.com, the author argues that recruiting based on the prospect’s experience is not feasible and should be overlooked in favour of talent.

Alan affirms that most recruiters scan for previous work experience in the prospect’s CV to see if this matches the current positions in certain industries. This is believed to be relevant to the prospect’s skills and whether he or she could do the work. Well, it’s not really as relevant as we may think.

There’s the other side of the coin, too, where people recruited based on previous experience didn’t perform well in their interactions with clients or the company’s staff. Moreover, some employers themselves might have a gut feeling around the prospect’s first impression at the interviews – and not a positive one.

The conclusion – that the prospect’s experience is not a conclusive factor in recruiting, but shouldn’t be overlooked either – is invigorating for those who cannot claim a minimum of three or five years of previous work on their CVs, but have perhaps acquired the same needed skills in a shorter timeframe or in a different industry.

Does talent then count? Certainly, and talent can be shaped accordingly.

Have your say! Send your opinions on this subject at editor@wealthwisemag.co.za and the best comments will be published in our next edition!

WealthWise 45

Wellness at Work How to make healthy choices at the workplace

Wellness interventions in organizations have become even more important in the past years, after decades of focusing solely on the performance of employees. Now “well-being” is the next word on the companies’ lists and this is not just a trend.

Healthy employees are critical for every company’s performance. We have looked at ways of addressing wellness at work from both the employer’s and employee’s point of view.

If you are the employer: • Ensure your employees can afford a medical aid or medical assistance • If possible, devise a medical scheme for your employees • Outline the necessary safety issues at work • Encourage your employees to exercise, join a gym or go for wellness or spa treatments • Offer your staff the possibility to try integrated health and wellness options at work – from massages to Yoga or Tai Chi • Encourage employees to make use of the hour lunch break • Ensure your employees get comprehensive health screening, especially if they are predisposed to hazards at the workplace • Hand them motivational and inspirational material – books, CDs, DVDs • Create a wellness mission statement and make it visible inside the company • Discuss with your staff ways of reducing stress at work – be open to their suggestions too • Develop a stress management programme If you are the employee: • Take short breaks every 60-90 minutes at work to clear your mind • Bring healthy foods at work – forget about the vending machine • Do use your leave days • Plan short getaways in weekends with friends and family – if possible, don’t think about work during this time • Go for regular health screenings • Use your lunch break time to meditate, chat with a colleague, go to a nearest gym for 15-30 minutes of exercise or just do nothing Benefits to implementing wellness at the workplace include enhancing the quality of life, creating a healthier work environment, maximizing personal potential, maximizing performance and providing ongoing support and motivation.

What are you doing to support your employee’s healthy choices? What are you doing to enhance the quality of life at your workplace? Send us your opinions at editor@wealthwisemag.co.za and the best answers will be published in our next edition.

46 WealthWise

A G E N D A This month we inspire you to...

Embrace your inner "zen" Founder Leo Babauta reffers to his blog, Zen Habits at www.zenhabits.net, as a place of "finding simplicity in the daily chaos of our lives". It's not surprising that Zen Habits is rated as one of the Top 25 blogs in the world, with about 200.000 readers, boasting powerful articles on health, fitness, happines, family life, motivation, inspiration and so on. A big plus: the content is uncopyrighted, so spread the word on your own website or blog!

Get networking!

4Anything is a business social network that helps companies expand their own, giving them the opportunity to do business while getting personal with their consumers. See www.4anything.co.za for details.

Get to know more about wealth and stock trading!

If you liked this month's interview with stockbroker and author Jacques Magliolo, you'd be happy to know that you can find out more about trading and wealth related education by downloading free resources on his website, www.magliolo.com. (Look out for the free resuces tab under stockbroking menu tab)

WealthWise 47

Exquisite luxury at Castello di Monte

by Denisa Oosthuizen

You’re standing at the top, on the panoramic deck, soaking up the magnificent

360 degrees view of the green, lush surroundings. The alfresco dinner is almost ready and, as you wait for your cocktail or wine to arrive, you take one more look at the sunset visible among the sand-coloured walls, as it sets over the olive and lemon trees in the downstairs courtyard.

It’s so easy to imagine you’re in romantic Tuscany, sharing a glass of wine with your Italian lover, but this is Castello din Monte, a place that evokes the luxurious and timeless romance of a bygone era right in the middle of Pretoria, South Africa.

Nothing has been spared from the sixteen century Tuscan-style grand splendour, from the carefully imported wood furniture and the labourious upholstery to the hand-painted murals in the honeymoon suite and the painted ceiling in the main dining room, reminiscent of the Sistine Chapel in Vatican city.

Each room at Castello di Monte has its own unique feel. The five-star guesthouse, which boasts nine luxury individually decorated en-suite rooms, including a presidential suite, a honeymoon suite, four standard rooms and three with terrace access, is the preferred choice of the detail-lover guest for a decadent weekend, a romantic getaway , as well as the selection of the corporate traveler who wants to indulge, once in a while, in pure fantasy.

The effortless grace is present from the moment you pass through the massive ironed gate and enter the lobby with its splendid granite staircase. Initially built for an African government official, the massive building was redesigned and transformed in a classy boutique-style guesthouse, which finally opened its doors to the public in 2004.

Chandeliers, silk curtains, antique mirrors, paintings and chests of drawers are the perfect setting for a romantic encounter, a celebration or a business meeting or

48 WealthWise

Agenda: Destination conference. Whether you enjoy strolling through the landscaped garden, sipping a classic wine at the downstairs bar with its own wine cellar, dining under the stars or indoors or taking a plunge in a sparkly roman-style swimming pool, you can do all these at Castello din Monte.

The luxurious experience is evident through the displayed attention to detail and the combination between the classic Tuscan-style and modern touch.

The rooms, featuring queen size beds, walk-in closets and full bathrooms, are individually designed to suit the Tuscan atmosphere, complete with modern convenience reflected in the remote controlled air conditioning, underfloor heating, a mini bar, a personal safe, tea/coffee making facilities. Satellite TV, direct dial telephone and wireless connection are provided and in-room service is available during your stay. If you love pampering, head to the Jacuzzi, sauna and steam shower located on the ground floor.

What I liked the most about Castello is the intimate feel present in every corner – it’s easy to imagine yourself in your own holiday home, sampling the finest cuisine carefully prepared by your personal chef in one of the seven food and beverage areas, each more spectacular than the previous. You’re definitely spoilt for choice, with a main dining room, a formal intimate dining room for maximum four to six guests, various lounge areas and terraces where you can satisfy your appetite.

The main attraction at Castello is certainly the fabulous dining experience – best done alfresco at the panoramic deck with astonishing views over Pretoria. Another big hit, I presume, is the outdoor chess set, which personally brings memories of my travel in Austria, where a massive outdoor chess set captivated my attention in one of Salzburg’s piazzas.

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Agenda: Destination

Timeless, unforgettable and utterly fascinating, Castello di Monte deserves its place in Pretoria’s luxury guesthouse landscape. Once the gates close behind you, the mysterious hideaway, tucked away on a hillside, much like a castle or fortress, becomes your very private mansion, where sundowners are spectacular, romance is whispering in every corner and delectable dinners delight the most demanding of palates. In one word, breathtaking!

Castello di Monte is situated at 402 Aries Street, Waterkloof Ridge in Pretoria, South Africa. For bookings and reservations, call +27 12 3466 984 or email info@castello.co.za. Breakfast, lunch and dinner at the guesthouse’s restaurant can be arranged upon request . Visit www.castello.co.za for details.

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Agenda: Destination

The La Mer Experience It was at Castello di Monte that I was invited to experience La Mer’s unique facial, the perfect way to understand the luxury brand and its revolutionary products.

The honeymoon suite of the Tuscan-style guesthouse became the massage room – without the usual therapy feeling of everyday’s SPAs and beauty salons, which showcase their latest equipment in a plain, simplistic décor.

Pleasantly, the hand-painted murals, antique furniture and large king-size bed become the witnesses of La Mer’s pampering.

My therapist Mpho worked her magic on my face and neck for about an hour, which left me completely relaxed, sort of a miracle since I am not the most relaxed person I know. It comes quite easy to unwind and drift away at the light touch and feel of La Mer’s innovative products and especially its smell of unique fresh marine-based ingredients, mixed together to result in La Mer’s trademarked “miracle broth”.

Apart from the relaxed feeling, the radiance on my face was visible and my skin felt hydrated, suppler, oil-free and smoother. La Mer products are designed for all types of skin, with different formulations to best address your skin’s needs.

I would highly recommend the experience, especially if La Mer's products top your beauty wish list!

WealthWise 51

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Business, romance or adventure?

We have them all at WealthWise magazine!

We are giving away Penguin books to three of our luckiest WealthWise Club members!

You could win one of these epic books: Moky Makura, Africa's Greatest Entrepreneurs review on page 54 Nora Roberts, Black Hills Tony Fitzjohn, Born Wild - review on page 54

To stand a chance to win one of the Penguin Books, each valued at around R150, join our WealthWise Club absolutely free by registering at

www.wealthwisemag.com/wealthwise /register or by clicking the Register button on the website's menu bar.

Competition starts 10 March and ends 10 April.

Winners will be notified in mid-April via phone/email.

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Fancy a hot Jacuzzi bath in a tranquil African setting?

Hoogland Health Hydro invites you to experience the best of both!

REGISTER FOR FREE at www.wealthwisemag.com and WIN!

WIN a 5 Day Midweek Package for two, valued at R4000 per person!

Your Hoogland Hydro experience includes: • Full access to Private Game Reserve • 2 daily guided nature walks • Accommodation in private room with en-suite bathroom • Unlimited use of all facilities: Saunas, Sitzbaths, Steam Baths, Gym, Jacuzzis, Underwater Jet Massage Pool, Heated Pool and Cold Pool • Daily health monitoring • All meals form the health buffet • Herbal teas and bottled mineral water available at all times.

• Stretch and aquarobic exercise classes every day • Daily Lectures/Discussions/ Relaxations classes (Please enquire about the programmme during your stay) • A Full Body Massage, • a Back & Neck Massage, • a Back & Neck Aromatherapy, • a Reflexology and • a Scalp & Neck Massage To stand a chance to win, simply register for free at

www.wealthwisemag.com!

Competition starts 10 February and ends 10 April. The winner will be notified by email on 15 April.

Valid until August 2011 inclusive, excluding school holidays and public holidays.

WealthWise 53

Agenda: Books

On the bookshelf...

Jacques Magliolo, Lore of the Global Trader: Strategies to Master International Stock Markets

Penguin Books, R140 from Exclusive Books (www.exclus1ves.co.za) Jacques Magliolo is a well-known investment and corporate strategist since 1987, whose experience includes stockbroking, business development and consultancy. Lore of the Global Trader (2011) continues his published series of books on trading, best known for popular titles such as The Millionaire Portfolio (2003), Become Your Own Stockbrocker (2005) or Richer than Buffet (2007). Whether you are a novice or a seasoned trading professional, Lore of the Global Trader will awake your interest for day trading in any global market, anywhere in the world, from your personal computer desk. The book covers the basics of trading and includes a useful glossary of terms for easy reference, justifying its wide appeal. Lore of the Global Trader is definitely the ultimate guide for investors who want to become self-employed traders with balanced and diversified global portfolios. Don’t expect quick rich tips and tricks though – billiondollar dealers know the magic words: discipline, experience, work ethic and knowledge. All in all, Magliolo’s latest release on global trading is bound to be a huge success among traders.

Steve Slaunwhite, The Complete Idiot's Guide to Starting a Web-Based Business Alpha, R158 from kalahari.net.

American Steve Slaunwhite is an award-winning copywriter, author and web-based business owner of ForCopywritersOnly.com and ForGraphicDesignersOnly.com. Steve’s interest in online marketing and web copywriting has granted him the opportunities to work and consult with various enterprises and Fortune 500 companies. In "Starting a Web-Based Business", Steve gets down to the simplest, easiest and proven techniques on creating and running an online business. His extensive research covers anything from creating a business plan for your website, setting up a website that sells, writing persuasive web copy and generating traffic to using website analytics, working with affiliates, SEO techniques and online marketing tools. There’s also a handy glossary of terms and a list of free helpful resources for business owners. Steve’s story-telling is simple, on-the-spot and infectious, accompanied by examples, definitions, tried-and-tested success tips, cartoons and warning signs. Highly recommended for all those who want to start or improve their web-based business, it couldn’t get more effective and easier than this!

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Agenda: Books Africa's Greatest Entrepreneurs

Penguin Books, R191 from Exclusive Books (www.exclus1ves.co.za) Who said Africa doesn’t rival the entrepreneurial forces abroad? “Africa’s Greatest Entrepreneurs” is a collection of inspiration stories about 16 of the most successful entrepreneurs and business visionaries, from their humble beginnings to reaching their dreams of wealth and success.

Read the amazing stories of Miko Rwayitare, the late telecoms legend, Prince Kofi Amoabeng, the Ghanaian ex-army officer, today CEO of the best financial institution in Ghana, Strive Masiyiwa, founder of Zimbabwe’s Econet Group, Mo Ibrahim, the Sudanese-born telecoms millionaire, Wale Tinubu, the Nigerian head behind Oando oil and gas giant, Nigel Chanakira, head of the largest Zimbabwean conglomerate, Richard Maponya, the South African retail giant and many other heroes of Africa that have defied historical, political and economical power forces to build their empires.

The stories are beautifully told by author Moky Makura, herself an exponent of success. Nigerian-born and educated in England, Makura is a TV presenter, producer, writer and successful businesswoman. She is currently living in Johannesburg, South Africa.

Tony Fitzjohn, Born Wild

Viking, R116 from Exclusive Books (www.exclus1ves.co.za) British born Tony Fitzjohn hasn’t received a salary since he met George Adamson, the force behind reintroducing wildlife in Kenya’s Kora National Reserve, made famous by his “Born Free” book and documentaries. Still, Tony has become wealthy in its own right, spending over forty years reintroducing lions, leopards, rhinos and African wild dogs into the wild. He has built schools and education centres in remote areas and remains one of the world’s leading experts on the man-wildlife relationship, having received recognition for his services to the wildlife.

Inspired by George, whom he have worked for eighteen years in Kenya, Tony set for Tanzania to rescue Mkomazi, now a highly successful game park, while taking a similar approach to Kora after George’s regrettable death. He now lives in Tanzania with his wife Lucy and their four children. His book “Born Wild” is an inspiring read on his African adventure, his never ending quest for wildlife rescue, his passion for African lions and the thrilling, yet simple life with the “Old Man” George. Deeply moving, exciting, funnily written and completely unforgettable, this is a book you won’t want to put down.

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Agenda: Events

Events, workshops and seminars 5th Africa Economic Forum 7 to 9 March 2011, Cape Town

The continent's top conference that focuses exclusively on Africa's economic agenda, now in its 5th year, Africa Economic Forum gathers top corporate players, government officials, parastatals on the continent to discuss future developments in Africa. Visit www.petro21.com/events for details.

My Business Conference and Expo 2011

17 March, Gallagher Convention Centre, Johannesburg Keen on starting your own business? My Business Conference and Expo showcases a wide array of products and services that will help you start, buy or grow a business. The expo is interactive and “doing business” driven. For more information see www.mybizexpo.co.za.

Mobile Money World Africa

22 to 24 March 2011, Sandton Convention Center, Johannesburg Mobile Money World Africa brings together industry's leading players in the retail, banks, telecommunications and technology sectors to explore and understand opportunities in m-commerce, in the only mobile payments conference on the continent. Visit www. terrapinn.com for details.

Also at Sandton Convention Centre, Johannesburg: • • • • • • • • •

Prepaid Cards Africa (21 to 23 March) Cards Africa (21 to 25 March) On-Site Power World Africa (29 to 30 March) Clean Technology World Africa (29 to 31 March) Energy Efficient World Africa (30 to 31 March) Green Buildings World Africa (30 to 31 March) Power and Electricity World Africa (30 to 31 March) Power Generation World Africa (30 to 31 March) Transmission and Distribution World Africa (30 to 31 March)

Cape town International Jazz Festival 23 to 24 March 2011, Cape Town

Cape Town International Jazz features some of the best 40 international and African Jazz acts and photographic and art exhibitions. Visit www.capetownjazzfest.com for details.

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Agenda: Events

The Tru-trepreneur™ Building a Viable Business Model workshop •Roadmap your business for the next 3 – 5 years •Build or repair your revenue streams in order to create a viable business model.

•Get your dream into workable alignment with your business strategy for the next 3 -5 years.

Next workshop: Johannesburg, Friday 25 March Cost: R1710.00 pp (includes VAT, workshop material, refreshments and lunch) Venue: To be confirmed.

Bookings: 084 840 4444 / info@tru-trepreneur.com.

Marketing Career Insights - 9 March 2011, GIBS, Johannesburg The forum discussion is part of GIBS Business School's Career Insights about managing your career.

Lleading professionals are invited to discuss and debate career challenges in their sector or function.

This time Alistair Mokoena, managing director and founder: Bird's Eyeview Marketing; Happy Ntshingila, chief marketing and communication officer: Absa Bank; and Jade Maletsky, head of strategy, group marketing: Liberty Group, examine, discuss and debate career challenges and opportunities in marketing in the current climate. Details at www.gibs.co.za/career-insights/careerinsight-forum.

2011/2012 Tax Update Seminar - March, nationwide Pastel Payroll's Annual Budget Speech Tax Update Seminar simplifies the budget speech, while providing some tips and tricks on how to avoid unexpected SARS audits and penalties. The seminar has a session focusing on the Budget Speech and how it affects businesses, plus a second session that elaborates on the changes that directly affect your payroll including tax rates, travel allowances and so on. For a complete calendar and more details, visit www.pastelpayroll.co.za/Annual-Tax-Seminar.

Do you have an event, workshop or seminar you would like to promote in WealthWise magazine? Send your suggestions to editor@wealthwisemag.co.za and we will publish your event in these pages!

WealthWise 57

IN OUR N E X T The Power of Collective Leadership

Steven Langton, Head of the Deloitte Centre of Collective Leadership, talks about the vision behind Deloitte's "individual action, colective power" mantra captured in best-seller As One, in an exclusive interview with WealthWise magazine.

Intellectual property We uncover the importance of patents, trademarks, copyrights and the legal steps one needs to follow in order to protect innovative and creative works.

E D I T I O N

Regain your feel good mojo In an exclusive interview with WealthWise magazine, health and nutritionist guru and author Patrick Holford talks about his latest book, "The Feel Good Factor" and shares a thing or two about a wealthier, heathier life.

How a trust works Ever wondered how a trust works? Read a nontehnical approach of the workings behind a trust in our next April issue.

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