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Showing posts from February, 2018

Newcomer franchisee Refilwe Molokomme shares why she chose Pharmacy at SPAR

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Owner of the Pharmacy at SPAR Nelspruit franchise, Refilwe Molokomme, grew up in the village of Ga-Monene in the Mokopane and Bakenberg areas of Limpopo. After completing a B. Pharm. degree at what is today known as the University of Limpopo, Refilwe rounded out her qualifications by also completing a 1-year Business Management Certificate through the University of Potchefstroom and obtaining a Postgraduate Certificate in Strategic Management through Unisa. In addition, she is currently studying towards her Pharmacotherapy qualification through North-West University.

Before setting out on her own, Refilwe paid her dues working as a pharmacist in public and private hospitals as well as community and corporate pharmacies. It was her role as the Responsible Pharmacist (RP) at one of the corporate pharmacies, and her involvement in getting the store up and running, that motived her to set out on her own. We spoke to her to find out about her experience as a Pharmacy at SPAR franchisee.

Wh…

Can I franchise my business?

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In South Africa, two out of every three ‘franchised’ brands offered as business opportunities do not see month 36 as a continued franchised operation.

Franchising is an effective way of distributing a product or service to consumers and business-to-business markets. However, before embarking on franchising as an expansion strategy, it is necessary to establish whether franchising is a suitable replication format and if the business system, including the brand, is mature enough that a third party may, with relative safety, invest their livelihood. Conclusively answering these questions will require more than spending a few hours on the Internet or reading a book or two on the subject.

All too often, the failure of new franchised businesses has nothing to do with the underlying customer value proposition, but can rather be attributed to the fact that franchising a business demands more patience and capital than the aspirant franchisor anticipated.

Good franchisors are true entrepreneur…

Multi-unit franchising growing in South Africa

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Multi-unit franchising is becoming a growing trend globally and in South Africa, meaning a single franchisee owns more than one outlet in different geographies. This ownership model challenges the traditional paradigm of a single-unit franchisee that we are most accustomed to.
Riaan Fouche, Chief Operating Officer (COO) Franchise at FNB Business says, “Multi-unit franchisees are a major trend in South Africa and more franchisors are giving first preferences to existing franchisees due to proven success and understanding of the franchisors brand. This enables the franchisor to grow their footprint in partnership with a franchisee while mitigating the level of risk associated with opening up a new outlet.”
Fouche shares five advantages and disadvantages of a multi-unit franchisee:
Advantages Diversify income – Having more than one source of revenue as a business improves cash flow and the lifeblood of a business.Knowing the system – There would be no need to start from the beginning to l…

#SAFranchiseFriday featuring Cash Converters

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BACKGROUND
Cash Converters is the leader in the buying and selling of quality pre-owned goods in South Africa and has been since 1994. Launched in Perth, Australia in 1984, Cash Converters has grown to become the world’s largest cash and asset converter, and provider of short-term loans. Today, Cash Converters is a multi-million-dollar international business with more than 750 stores in 22 countries and the brand is still growing.

Whatever happens in the world, people will always need access to cash — whether they’re selling their belongings, borrowing money or just looking for a great bargain. Having pioneered the transformation of the buying and selling of quality pre-owned goods, Cash Converters offers an exceptional, recession-resilient franchise model with multiple revenue streams that provide franchisees with an opportunity to achieve real wealth.

THE CONCEPT
The Cash Converters business model is based on the principle of providing consumers in the communities they serve with ac…

Is a franchise still viable in 2018? Choose The Bed Shop

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Starting a new business can be daunting, especially with ongoing political changes taking place (locally and globally), flailing consumer expenditure and the unpredictability of consumer trends. But if you want to start a business in 2018, the franchise model is still your best bet – you just have to choose the right one. 
During tough economic times consumers are less likely to spend money on unknown brands and instead seek out names that they know they can trust and rely on. The Bed Shop has been manufacturing beds for more than 20 years and our brand name is synonymous with manufacturing high quality beds that are at the same time value for money and beds that consumers know they can depend on to take care of their whole family. As further reassurance in our brand we belong to The Franchising Association in South Africa which is an accredited trade association within the franchise industry. Their aim is to develop and safeguard the business environment for ethical franchising in S…

Pre-budget 2018 commentary: Government to bolster SME ecosystem to minimise shortfall

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Following an inspiring and predominantly growth friendly State of the Nation Address (SONA) on Friday, 16 February by President Ramaphosa, South Africa now gears up to find out how National Treasury plans to minimise the country’s revenue deficit, currently at an estimated R50.8 billion.

Speaking in light of the upcoming 2018 National Budget Speech, Ben Bierman, Managing Director at Business Partners Limited (BUSINESS/PARTNERS), says that although Treasury must consider lowering expenditure and increasing income tax rates such as VAT to decrease the budget deficit, it is also critical to focus on delivering a business friendly budget in order stimulate economic growth.

To do this, Bierman hopes to see a focus on creating a more conducive environment for small and medium enterprises (SMEs). “Consistent with the SONA, Treasury should emphasize the role that SMEs play in the broader economic environment, and announce measures to boost SME business formation and businesses growth, which …

Find your dream boss – yourself!

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Do you want an exciting job where you learn something every day, meet lots of new people and do not notice the time flying past? Those have been some of the delights of becoming your own boss for Jaco Kruger, one of the partners in the new Cash Converters store in Welkom.

In complete agreement is Jason Lovell of Cash Converters, Arbour Crossing, who has been surprised and delighted by the rapid success that he has managed to achieve. “I expected fairly slow growth but we have more than managed to exceed all expectations,” he says. He puts that success down to “being 110% committed to every aspect of the business.”

Kruger is similarly delighted that his original plan to break even within six months is on track. Robust marketing strategies really help combat counter-campaigns from the competition, he says.
Kim Broom and Africa Msimango took over Cash Converters, Pietermaritzburg, and say they have found it an “amazing experience.” They admit that they had thought that the business’s th…

#SAFranchiseFriday Featuring Neighbiz

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No buildings, no staff,  no bookkeeping and no admin

BACKGROUND
Neighbiz is making a difference in two ways:

Big problem number 1: Neighbiz wants to connect advertisers with their community — they understand that for many businesses, local support can make or break them. There is a significant informal sector of painters, tilers and carpenters etc. whom the community would hire, if only they knew who they were and where to find them. Let’s ask a neighbour — let’s make a new friend! Through the Handy Help section of the Neighbiz platform, micro-businesses can receive an instant boost.

Big problem number 2:The holy grail of online media is the ‘click’, but it may be difficult for customers to find businesses who are lost in cyberspace. With Neighbiz, however, it could be easy because all you need is a smartphone. 90 Percent of ‘spenders’ are chained to their mobile phones and with Neighbiz’s patented technology it is guaranteed that advertisers will be found. SMEs and businesses who are t…

#SAFranchiseFriday featuring H2O International

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BACKGROUND
Around the globe H2O International has acquired a reputation as a provider of superior, safe drinking water filter systems. Continuously striving to improve the quality of their offering they tailor products to suit the demands of a specific market, and it is this ability to adapt that has secured their position as a global leader in the water purification industry.

H2O International SA was established in 1994 when Tony Marchesini secured the rights to distribute H2O’s range of products in South Africa. With over 55 franchises and stockists, H2O SA is as a leading force in water purification on the African continent.

THE CONCEPT
Franchisees have a choice of two business models — H2O Water Bar and H2O Water Station. Water Station franchisees also have the option to incorporate a water bottling plant. The Water Bar concept with its smaller footprint is ideal for shopping mall locations while the Water Station concept is well-suited to line shopping centres.

H2O International …

H2O International delivers water refills responsibly in the Cape

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Two weeks ago when the DA launched it’s #DefeatDayZero campaign and Level 6B water restrictions came into effect, H2O International founder and CEO, Tony Marchesini, took the decision to suspend the company’s water refill service until alternative water sources could be secured. The announcement was widely welcomed as H2O International was determined to be part of the solution in defeating day zero, as well as being a responsible brand.

Now, with nationwide logistics of the collection and delivery of bottled water being finalised, six branches within the Western Cape region have already identified alternative, non-municipal water sources and are able to continue the walk-in refill service.

The six branches are Knysna, Mossel Bay, the Garden Route, Hermanus, Stellenbosch and Paarl.

“All those utilising our water refill services at these branches can be guaranteed they are not putting pressure on municipal resources and are refilling responsibly,” says Marchesini. “As custodians of g…

Safer Internet practices for SMEs

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Safer Internet Day was celebrated around the world on 6 February. Consumers and small to medium enterprises (SMEs) should take the time to ensure that they are managing their cyber risks correctly.

This according to Santho Mohapeloa, Digital Distribution Specialist at SHA Specialist Underwriters, who says that the cyber risks faced by SMEs increase every year. “According to a global Cybercrime Survey Report for 2017 by KPMG¹, approximately 43% of organisations indicated that they have experienced ransomware attacks in the past year.”

According to Mohapeloa, it is therefore becoming increasingly important for SMEs to learn how to protect themselves against cybercrime to the best of their abilities. In line with this year’s Safer Internet Day slogan of “create, connect and share respect”, he provides the following cyber risk management tips.

STAFF TRAINING INTIATIVES
Mohapeloa says that employee negligence is one of the leading causes of cyber-attacks. “Well-informed staff members alre…

Trends to fast track your business in 2018

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The rate at which new trends appear and influence the way we live has become astounding. The last decade, with its countless technological advances, has signalled a move into the internet shop, a faster pace in most spheres of day-to-day life and the importance placed on providing more convenient, time-efficient solutions. And according to Google’s Eric Schmidt and Jonathan Rosenberg, the acceleration in the pace of change can be evidenced by start-ups that are able to turn over millions in profits within a year or two of operation.

This outlook is shared by Kobus Engelbrecht, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS says that the only constant in 2018 is change. He refers to the fourth industrial revolution which is categorised by the boom in innovation across various industries and disciplines. And advises that this rapid rate of change in the business sector presents a plentiful opportunity for business growth.

Engel…

Key franchising trends to consider for 2018

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The franchising industry has steadily shown adaptability to the tough economy by growing the sector 3,6% over the past four years – from contributing an estimated 9,7% to the country’s GDP in 2014 to its recent figure of 13,3%. This trend is expected to continue in the same trajectory in the short-term and could possibly improve should SA see better economic growth.

According to a survey conducted by the Franchise Association of South Africa (FASA), 78% of most franchisors are optimistic about future growth in their businesses. Although this translates to positive sentiments, the franchising is still, like other businesses, also vulnerable to the economic headwinds. As a result, franchisors need to keep abreast of their operating environment.

Morne Cronje, Head of Franchising at FNB Business says, “2017 has been a very tough year for businesses and consumers. However, the sector continues to perform well gradually year in and year out. This is testament that franchising is robust and…

#SAFranchiseFriday featuring Alpha Pharm

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BACKGROUND
Alpha Pharm, our nation’s oldest traditional pharmaceutical wholesaler, was originally founded to serve as a buying group that would supply pharmacies in the region. Eventually establishing itself as a wholesaler, the company expanded its distribution network from Bloemfontein to Vereeniging and later Pretoria, and by the mid 1990’s Alpha Pharm, known as Kemco back then, was delivering to all Northern provinces. The establishment of Alpha Pharm (Pty) Ltd in 2015 effectively united the group’s wholesalers from the Eastern- and Western Cape, KwaZulu-Natal and Free State under one national banner.

Today, Alpha Pharma pharmacies form the largest group of independent community pharmacies, backed by the country's biggest independent pharmaceutical wholesaler. With an established franchise network of more than 410 stores across the country, Alpha Pharm services the greater South African population, geographically offering the widest reach into some of the most remote regions.…