As South Africa prepares to put the spotlight firmly on workers’ rights around Workers Day on May 1, Steven Nathan, 10X Investments chief executive officer, says it is absolutely crucial that financial transformation is achieved at the basic worker level. The founder of the disruptive asset management company says broader economic participation is a hot topic at the highest levels in politics and business, but it is also critical that practical change takes place at grassroots level. In support of these goals, 10X Investments has joint venture agreements with trade union-controlled companies, Numsa Financial Services and BIG Employee Benefits, which is majority owned by Fawu (the Food and Allied Workers Union).  These partnerships advance economic empowerment in general, as well as achieving very practical immediate benefits such as skills transfer. Nathan, says: “Everyone seems to focus on where all the money is, on the assets, but for us it is really about who is deliver...

The Department of Small Business Development (DSBD) has tasked SA Franchise Warehouse (SAFW) with identifying small businesses in peri-urban and rural areas that has the potential to be micro-franchised. The programme which kicked off in 2015 will run over a 3-year period and will package a total of 15 micro-franchise business. We are pleased to announce that the third rollout phase of the programme has started and the selection process has been finalised. Below we take the honours of introducing the 9 businesses chosen to participate in the programme for 2018: 1. Active Care Clinics  Active Care Clinics is owned by 4 shareholders. They currently have 3 clinics open and are based in Springs, Ballito and Table Bay. The original clinic is based in Midrand Gauteng which is a fully fledged medical centre which caters for the average man on the street, as well as the poorest, who pay a minimal fee for a consultation as well as medication. The clinic focuses extensively on Prenat...

George Diab If you mention great leaders, images of historical figures like Napoleon, Churchill and Nelson Mandela may spring to mind. At its most basic level leadership involves getting others to follow you. Winning their hearts and minds is one thing, but leading them in the right direction is another. In the world of politics the reputation of a leader depends upon your own personal political ideology. In small or medium-sized businesses there is a more objective method of determining great leadership; the income statement is the ultimate unbiased measure. Generally, good leaders get consistently good results, bad ones don’t. George Diab, started his professional life as a chartered accountant. He had little idea that he would eventually become an entrepreneur in the fashion industry and a leadership advisor. As a tax specialist in the corporate world, Diab had to look the part. This meant finding the perfect suit. His efforts proved futile. He then decided that if his...

Abed Tau Entrepreneurship is a mysterious creature; so much is written and said about it. Everyone seems to have an opinion as to what makes a successful entrepreneur. A starting point for exploring the meaning of entrepreneurial triumph is to look at the idea of ‘success’ itself. At the simplest level, success is the achievement of a specific goal. But success means different things to different people. It’s logical to assume that everybody wants to be successful in terms of their own individual goals. Nobody plans to fail. In trying to understand the paths to successful entrepreneurship, it is tempting to reduce its attainment to a linear process. It is human nature to search for cause and effect relationships. Much of the research into what makes some entrepreneurs successful is based upon studying the super successful ones. The idea is to then instruct people to replicate the behaviours of the successful. This approach totally disregards two important issues: firstly, t...

Siphethe Dumeko Innovation is crucial to the success of any entrepreneur, and the ability to invent new processes, technology and equipment that fundamentally change the way that clients and competition view one’s business, is how industries are propelled forward. While high-profile inventors garner widespread attention in their field, there are others who are not as quickly acknowledged, but who make equally impressive impacts in their sphere of business. This is according to Siphethe Dumeko, chief financial officer of Business Partners Limited (BUSINESS/PARTNERS) , who points to the recently released 2017/2018 Global Entrepreneurship Monitor report which reveals that South Africa ranks 13 out of 54 countries in terms of innovation. “Low-key, incremental innovation that happens every day in thousands of small businesses in the country are often under looked for their contribution to South Africa’s economic development.” Illustrating how incorporating incremental, local-level ...

Col’Cacchio, the popular Italian-inspired franchise known for its gourmet thin-base wood-fired pizzas, hearty pastas and crisp fresh salads recently announced the opening of their first certified Halaal store. The Atholl store has been converted to be a SANHA certified Halaal store and boasts a brand new menu and look and feel. Consumers can expect all the tried and tested iconic Col’Cacchio favorites as well as an exciting new mocktail range. Col’Cacchio has always been able to adapt to and stay ahead of food trends, in part due to the fact that they prepare everything in-house using only the freshest ingredients. Knowing the exact origin of every delicious component of their menu items gives them an elevated level of control and consistency over their new Halaal menu. Col’Cacchio have also confirmed that the Canal Walk store will also be converted to a certified Halaal store in the coming weeks. “Our strength has always been to listen to our customers and make them a part o...

Richard Mukheibir Standup comedians take cues from their audiences and modify their material as they go along. You can use this technique to watch for cues from your customers as to how they like to be addressed by you and staff. This might seem like a schlep when things are going crazy at the tills or in the back office but the reward is creating loyal customers. Getting their feedback can also help you build your business. Here’s how to make communicating with customers a win-win scenario for them, for you and for your staff: 1. Listen first Rethink your relationship with your customers by remembering that they are in control of the cash, not you. Shift your attitude to acknowledge this by recognising that you would like them to buy happily and confidently from you. Bullying them with an over-the-top sales pitch is often a fast road to customer disappointment. Instead, take time to guide them to the product or service that suits them best. 2. Acknowledge and connect Wheth...

Gugu Mjadu Globally, women experience many barriers to equal economic participation. The Establishing a baseline for lending to women-owned SMEs 2013 report by the International Finance Corporatation (IFC) points to low levels of access to finance for women entrepreneurs with 15-25 percent of loans issued to women across 34 IFC client financial institutions in 25 countries. According to Gugu Mjadu, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS , this presents a significant stumbling block to economic growth for the country. According to the African Development Bank , in Sub-Saharan Africa, the financing gap for women is estimated at over $20 billion. Mjadu explains that this amount is made up by gender-specific challenges that women face, including lower access to quality business training and education, lesser funding opportunities for women-owned small businesses, and cultural beliefs discouraging women from participat...

The listeriosis outbreak has had far-reaching consequences for multiple businesses; not just Tiger Brands. JSE-listed RCL Foods predicts listeriosis-linked losses to equate to R75m, with a profit impact of R20m a month. By their very nature, crises are usually unforeseen and wield potentially devastating consequences for the businesses they directly – and indirectly – impact. Think of the Ford Kuga fires and Samsung Galaxy Seven’s flawed battery flames. When these catastrophes hit, businesses have to act fast to protect and rebuild their reputations. Kobus Engelbrecht, Marketing Head of Sanlam Business Market , believes there are many business lessons to be learned from the listeriosis crisis. While unforeseen disasters can rarely be avoided altogether, business owners can mitigate risk and limit fallout by having a plan in place. Engelbrecht says, “Every business needs to have a plan to deal with crises, even before any issue arises. A crisis needs prompt intervention so as t...

BACKGROUND Ceramic Pro and its manufacturer, Nanoshine Ltd, are changing the dynamics of the coating industry. In 2010, Nanoshine Ltd introduced Ceramic Pro — a series of products for the automotive, air and marine markets suited for paint, glass, alloy, fabric, leather, plastic, and rubber surfaces. What sets Ceramic Pro apart from the competition is their patented, cutting-edge technology based on ceramic molecular compounds (nanoceramics). Having dedicated years to perfecting their industrial multifunctional protective coatings, the company continues to strive to improve their products and work towards their goal of being the number one choice in nano protection in South Africa. THE CONCEPT  In the current economic environment where people are increasingly compelled to hold on to their vehicles and homes for longer, people are also looking for ways to preserve the value of these items, and this is where Ceramic Pro has identified a particular niche. Ceramic Pro South Af...

Lindi Engelbrecht Entrepreneurship has long been touted by government as the answer to unemployment. The basic idea: create businesses and businesses will create jobs. This is exactly what the National Development Plan (NDP) stipulates, that Small, Medium and Micro Enterprises (SMMEs) should deliver 90% of the new jobs required to eliminate poverty and radically reduce unemployment by 2030. But, to deliver profits for the entrepreneur, and jobs for the nation, first you need to start a business, then you have to keep it alive, then you have to grow it. Anybody that has attempted any one of these three phases will testify that this is no easy task. Statistically the odds are stacked against you.  According to the 2016 SMME Insights Survey conducted by the South African Institute of Chartered Accountants (SAICA) only two in ten SMMEs make it past two years. In life and in business “success” is a relative term. In the SMME arena “success” is often, on the way to achievi...

So, you’ve decided to take the step and become a franchise owner. There are many advantages to becoming a business owner and even more to becoming a franchise owner. There are, however a few important questions you should ask yourself before choosing a franchise seeing as there are so many to choose from, making it all the more important to find the right fit. 1. How much will it cost? This is one of the most determining factors in choosing the right franchise for you. Questions like what is the total of startup capital you will need to get the franchise up and running? And how soon will you begin to see a return on your investment? Are things you need to consider. One of The Bed Shop’s biggest advantages is the low capital inset required from the franchisee when setting up shop. The set-up cost is averaged at R500 000, which also includes the initial franchisee fee. The stores turnover is estimated to be at around R200 000 and allows the franchisee to quickly see a return on th...

Bendeta Gordon There are many ways to skin a cat, they say. For SMMEs this definitely does not hold true when they need capital to grow. Though many SMME owners are willing to grow and create jobs, they aren’t spoilt for choice where the financing of growth is concerned. But all is not lost according to Bendeta Gordon, chartered accountant [CA(SA)] and founder of Franchize Directions . “There is a way to finance growth which SMMEs have under-utilised but which is proving to be a viable way for them to increase market share at low risk levels. We have been researching and tracking franchising for more than 20 years and, over the period, franchising has consistently proven itself to be a great business expansion mechanism that reduces the business risks associated with growth and which also stimulates the economy and creates jobs”. Franchisee, franchisor…what is the difference? Franchising is a way in which a company wishing to expand its reach, issues a licence to another party...

All the signs are there that consumers are feeling the economic pain, from rising unemployment rates to this year’s recently reported falling retail sales, says Richard Mukheibir, CEO of Cash Converters Southern Africa . Reflecting these circumstances in empathetic debt collecting approaches means the company now boasts a success rate of two out of three loans clawed back from default. “People are still haunted by that adversarial historic image of rough-and-ready debt collectors,” he says. “Thankfully, that kind of abuse is illegal now. It pushed everyone to rethink their credit and debt procedures and for us, that now means reinforcing a spirit of ‘collecting with kindness’ among our call-centre consultants. The results speak for themselves with collections up 72 per cent year on year.” The improvement has come thanks to better technology to track and follow up debt patterns among borrowers, says Mukheibir, and to the “make friends” approach introduced by Cash Converters Debt...

Retirement is about a lot more than having more time and less money, say the experts at 10X Investments, who add that to be really happy after you have quit working you will most likely have to consider the needs of the mind, the body and the soul along with the practical aspects, such as money and time. “For many people work is not just a source of income, but also of identity, visibility, status, self-esteem, power, belonging, networks, structure and much more,” says Tracey Jensen, chief financial officer at 10X Investments. Finances – making your money last  A critical financial aspect you need to consider is how to ensure you don’t outlive your money. Steven Nathan, chief executive at 10X Investments, recommends starting with making a plan. He says this will force you to confront issues and set objectives with time horizons. “The plan should set out your goals and how you intend to fund them, as well as important financial ‘to-dos’,” says Nathan. “Things such as whe...