Richard Mukheibir Several years of strong sectoral growth combined with business opportunities that are often backed by an investor safety net is making franchising the top choice for many who want to own their own business.  This assessment is based on the strong foundations of my own experience of establishing Cash Converters nearly a quarter century ago and the recent results of Franchise Association of South Africa (FASA) annual industry survey. These figures show that the SA franchise industry has grown its turnover by 55 percent from R465 billion in 2014, when FASA conducted its first survey, to R721 billion in 2017. Alongside this, the sector’s contribution to South Africa’s GDP has expanded by 62 percent, from 9.7 percent in 2014 to 15.7 percent in 2017. The President’s recent Job Summit highlighted the critical need to reduce unemployment and boost the national economy by growing business and stimulating job creation. The franchise sector employs 369 573 people, 9...

It takes stakeholders from across the business sector to cooperate in building businesses that can create jobs, says Cash Converters CEO Richard Mukheibir. The franchise sector continues to grow healthily, according to the survey results recently released by the Franchise Association of South Africa (FASA). That sounds as if we should be in a good position to answer the President’s call to create jobs – but, as the saying goes, the truth is rarely simple. The sector’s estimated turnover was R721 billion in 2017, growing its healthy contribution to GDP from 13.3 percent in 2016 to 15.7 percent in 2017. International investors have clearly been impressed by the SA franchise sector’s track record and are confident about its prospects. The number of international franchise brands in SA more than doubled from 12 percent in 2016 to 27 percent in 2017. We saw employment rise in the franchise sector last year by 7.6 percent as 26 254 jobs were created in contrast to shrinking employm...

Cash Converters Bedworth Park Ubuntu is a treasured part of South Africa’s heritage – but it could be better applied in parts of the country’s business sector, believes Richard Mukheibir, CEO of Cash Converters. “Businesses operate most sustainably when they are entrenched in and care about the community that surrounds them,” he says. “Ubuntu means we are people through our interactions with each other and I firmly believe that a people-centred approach like that should be a strong thread in sound business development.” Embedding yourself in the community is also good for business – as long as you authentically and truly work at being your neighbourhood’s best buddy, he says. “Be about helping people get on with life, about making their lives easier,” he advises. “We always encourage new franchisees to take a fresh look at the neighbourhood where they are setting up so that they can be active participants and not just providers or suppliers.” Corporate social responsibility...

Spring is on the way and Cash Converters is celebrating the season of renewal with a bigger than ever Spring Clean Sale – and this year it gives you two very different opportunities to cash in. The second phase of their Spring Sale Clean-up started on 3 September.  Cash Converters returns the favour by giving away R200 000 over 20 days! A total of 100 customers will win cash prizes in this Spring Clean Special Draw of R10 000 per day from 6 to 25 September. To enter, all you need to do is sell Cash Converters an unwanted item that you have decided to spring clean. Sorting through your cupboards for items that are in good condition but rarely used and that you are ready to sell could put you in line to be one of the lucky winners of a fistful of cash that will make your budget stretch further or give you a head start for early Christmas gift buys. If you have not yet managed to act on this year’s resolution to declutter your space, here is an excellent incentive to make good...

Do you have hidden gems concealed in your longstanding product offerings? Taking a new perspective on buying and selling patterns established over nearly quarter of a century at Cash Converters Southern Africa made CEO Richard Mukheibir realise a business lesson he needed to put into practice – and one he felt worth sharing with any other SA businesses looking for a wakeup call that can help them grow in today’s slow economy. Reinventing your brand to keep it fresh and successful means everything from refreshing your logo to sharpening your strategic vision, he believes. That led him to relook the company’s product offerings and spot the gap where they could supply better. “Dealing in second-hand jewellery has always been a side-line for us, another minor part of the product mix we offer,” he says. “But as the vintage trend took root in South Africa, we realised that instead of just ticking over and maybe not even earning its floor space, this could potentially be a good earner...

Richard Mukheibir South Africans are often accused of slavishly imitating international trends but, in fact, we adopt and adapt them with great ingenuity and individuality, says Richard Mukheibir, CEO of Cash Converters . Having just returned from a fact-finding tour of related businesses in Australia, Singapore and the United Kingdom, he is more admiring than ever of the way South Africans have had to be ingenious problem-solvers for all kinds of historic and economic reasons – especially in this period of increasing costs for petrol, transport, electricity and other basics. “We have developed a heritage that is creative in approaching all kinds of problems and challenges and this approach is played out right across the economy,” he says. Mukheibir classifies all the countries he visited as first-world economies, differing from South Africa in both the reasons for buying and selling and the mix of goods sold.  “The millennials are growing up and now in a life phase anywher...

Richard Mukheibir As the reach and versatility of social and digital media have expanded, they have achieved more than simply adding another useful channel to the marketing toolkit, says Richard Mukheibir, CEO of Cash Converters . “These new channels allow us to drill down into market sectors and localities, interpreting our brand message to appeal at local level encouraging existing and potential customers to step into the store and explore our offerings,” he says. “For franchises particularly, these channels have transformed the way we conduct our marketing activities and liberated franchisees to talk more directly to their customer base.” For some time, retail chains have tailored stock levels and ranges to each store’s local market and demographic, he notes. Franchises, on the other hand, tend to operate over a spectrum of centralisation. Some insist on tight control of menus or skincare treatments offered and the products used to deliver these, while others give franchisee...

The combination of continuing trading uncertainty in South Africa and the new financial year for many businesses can add up to carefully reviewing costs – including leases on premises. Choosing a site to set up or relocate your business can be just as stressful as deciding where to buy a house – and just as fundamental to its health, finances and sustainability, says Richard Mukheibir, CEO of Cash Converters . This is not the time to snap up the property with the cheapest rental as that might turn out to be something you regret in the long run. Nor is it the time to be dazzled by the swankiest premises you can find. The potential for bragging rights could turn out to be poor value for money. “This is a time for your head to rule your heart regardless of the industry you trade in.” he says. The real-estate mantra of “location, location, location” works just as effectively in commercial as it does in private property but you will often be looking for rather different factors. ...

Wave goodbye to chalk-and-talk sessions – 21st-century staff training is smarter and better switched on to the way people work, learn and have embraced technology in their lives, says Richard Mukheibir, CEO of Cash Converters Southern Africa . The company began with DVD-based learning in 2014. Its e-learning platform now offers 250 custom-made modules that also feature animation and interactive learning, with functionality improving all the time as fibre is rolled out to stores. In effect, this has become the company’s in-house version of the popular MOOCs (massive open online courses), pioneered in the USA from 2008 and expanding rapidly in 2012 and 2013 with the global launch of Udacity, Coursera and FutureLearn. As a franchise company, Cash Converters regularly needs to upskill existing staff as well as offering training for new franchise owners, their management and staff who all need to be trained whenever a new store is opened. E-learning also addresses the challenges of ensu...

Richard Mukheibir Youth unemployment in South Africa is everybody’s problem, so we must make Youth Month a rallying point to tackle it afresh, says Cash Converters CEO Richard Mukheibir. “It is quite simple – we must all look at ways to take on the challenge,” he says. “The only rational and useful response is, ‘Yes, we can!’” In recent years, youth unemployment, upskilling and empowerment have been key issues discussed in the State of the Nation Address. President Cyril Ramaphosa also recently launched the Youth Employment Service. But, says Mukheibir, this is not only a task for government – everyone in business can contribute to youth development. “From mentoring interns to job creation, we can all offer our expertise and resources to help enable young people to build careers and their own businesses,” he says. “We should all look for opportunities to assist where we can.” Franchising, for instance, is a way for independently minded individuals with a flair for business...

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...

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...

Richard Mukheibir Trading in second-hand goods is as old as business itself – and now it’s enjoying a rising new wave of popularity, to the benefit of both buyers and sellers, says Richard Mukheibir, CEO of Cash Converters Southern Africa . “For me, it’s a no brainer because being a smous is in my blood,” he says. “But thanks to the hugely increasing wave of interest in the millennial mantra of ‘recycle, reuse, repurpose’, we are seeing a whole new generation being attracted into buying and trading in second-hand goods. “In the USA, a GarageWorks survey found that 75 per cent of US homeowners have garages that are too full to fit the family car and the situation in the UK is very similar. Instead, garages are full of hobby and sporting gear and overspill from the main house, from holiday decorations to an extra fridge/freezer. South Africans can check out their own garages ahead of winter – they will amaze themselves by how much they boost their own bank accounts when they blit...

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 ...

The Kruger family from Welkom 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 th...

If you are facing a January spending crunch, you are not alone. On top of demands for school fees and last-minute uniform or stationery requirements, you might also have an unexpected cashflow hangover from unplanned festive season spending. A recent survey of festive season spending by global accountancy firm Deloitte found that gifts represent only one third of the average holiday spend. In fact, the bulk of spending over this period is related to sprucing up your wardrobe and your home, entertaining at home and socialising outside the home. “It is easy to underestimate how much these extras will add up to and play havoc with our New Year budgets,” says Richard Mukheibir, CEO of Cash Converters . These seven strategies from Mukheibir will help rescue you from this situation: Know your cash reserves: Can you still access any of the cash you received as a Christmas bonus? Do you have a rainy day account for emergency funds or other income due that you have forgotten about? ...

The team from Pietermaritzburg Kim Broom and Africa Msimango took over the Cash Converters branch in Victoria Centre, Pietermaritzburg, on 1 November 2018 as part of the Kutana Group ’s corporate social development. “Kutana’s leadership is committed to BEE and sustainable growth through responsible investments,” says CEO Thoko Mokgosi-Mwantembe. “As a Pan-African investment company focused on delivering significant shareholder value while contributing to economic and social transformation, we see great development opportunities within the Cash Converters model for both Kim and Africa as well as ourselves.” This is the first experience of franchising for both Kim and Africa, who both come from marketing backgrounds. “We believe this franchise offers good products at great prices,” says Kim. “Taking over has been hectic and a huge learning curve for us but we have had wonderful support from the franchisor.” Africa sees this business opportunity as an important stepping s...

Rudolph du Toit and his team Rudolph du Toit became so enthusiastic about shopping at Cash Converters that he bought a franchise, opening the first shop in the group in Hermanus on 8 December 2017. “I love second-hand goods and I thought it would be great to have my own shop,” he says. “I love the Cash Converters franchise model. I believe it is a perfect match for me.” Rudolph is originally from Paarl. Having qualified as a winemaker, he has since spent his working life so far in marketing with SFW and Distell. He moved to Onrus in November. “I am keen to put down new, long-term roots in Hermanus,” Du Toit says. “I have been coming to Hermanus for years on holiday and I already know that this is where I should like to retire.” Before that happens, Du Toit is keen to build his franchise and already plans to expand his start-up staff from seven to 10 in the New Year. “I feel the potential for a Cash Converters is definitely here and so is the mix of customers,” he says. “I lov...

For all the time spent wishing the year-end holidays would come faster, consumers are also wishing there were more paydays between now and then, notes Richard Mukheibir, CEO of Cash Converters . “The best way to resolve this dilemma is to confront it,” he says. “Apply a two-step solution – establish your budget and shop smartly.” Even those who are number-phobic feel more relaxed after spending a short time allocating the cash they have available to different types of spend, he believes. “You will be much less stressed if you prevent too much money flying out of your pockets by remembering the basics of financial common sense,” he says. Make two lists – everything you need to spend and everything you want to spend, he suggests. The first list covers necessities such as your basic food budget, municipal bill and transport costs. The second list covers what you would like to spend on gifts, holidays, entertainment, decorations and new clothing. After adding these two totals tog...

The trend for buying vintage is thriving in South Africa and it has extended into smart shoppers buying well-selected, pre-loved or used items as gifts for family and friends at a second-hand store. Choose to spend your hard-earned cash at reputable second-hand goods dealers and you should also be reassured that you are not risking an encounter with stolen goods.  “The possibility of stolen property ending up in the second-hand industry is remote because we have procedures in place in line with the Second-hand Goods Act,” says Peter Forshaw, Chief Financial Officer and founder member of Cash Converters . Industry cooperation with the South African Police Service protects customers, he says. This means reputable second-hand dealers carefully screen goods they purchase, reinforcing these well-established buying processes with electronic stock systems and close-circuit video. “Self-regulation plays an important role in our industry,” says Forshaw. “Sellers must produce identif...