How Portia Mngomezulu Is Conquering The Highly Competitive Beauty Industry

https://www.entrepreneurmag.co.za/advice/women-entrepreneurs/women-entrepreneur-successes/how-portia-mngomezulu-is-conquering-the-highly-competitive-beauty-industry/

Vital Stats

  • Player: Erna Basson
  • Company: Erabella Hair Extensions
  • Est: 2017
  • Visit: www.erabellahairextensions.com
  • Career highlights:
    • Named South Africa’s top entrepreneur under 30 for 2017
    • Global female entrepreneur of the year 2017
    • Top 100 most influential young South Africans 2017
    • Interviewing Grant Cardone — 2018
    • Opening speaker at the Mega Success event 2017 in Los Angeles.

Originally from Bloemfontein, Erna Basson has always been highly competitive. She completed a four-year bachelor’s degree in three years, while holding down several part-time jobs. She was first bitten by the entrepreneurial bug in her second year at UFS (University of the Free State). Her class was struggling with business law, so she read the text book and produced an annotated summary that she then sold to desperate students.

Today, she heads up Erna Basson Ltd, a business coaching and speaking venture; Woman Entrepreneur, a global platform empowering and educating female entrepreneurs from around the world on how they can start and scale their businesses; and Erabella Beauty Global, a premium hair extensions brand available in South Africa and globally.

On acting the part

“I was a cheerleader for the Cheetahs while I studied, and I also worked as a hostess at Cubaña,” she says. “I got the opportunity to do tons of promotions for liquor brands and that experience taught me how important it is to always be on point and professional, as the event sponsors could pitch up at any time to check on what was happening.”

Related: How To Start A Salon And Spa Business

After moving to Port Elizabeth with her now husband, Nellis Basson (who is also an entrepreneur), she started working for Gestetner and was out on a sales call at Distell when she heard the regional manager complaining about bad service from an events company. “I said to him, ‘if I can have a company up and running within 30 days, will you make use of my services?’ and he said ‘yes’. I walked into the company as an employee and walked out of the company with a new life and opportunity, and this has taught me a valuable lesson that I still follow every day. Take advantage of every opportunity, even if it scares you. You need to be out of your comfort zone to grow.”

That was one of the first principles she learnt, and which she speaks about to her global audiences.

“The bigger the problem you are solving for people, the more valuable you are to them, and the more money you will make.”

People are always searching for solutions. They will always look for better, faster and smarter ways to accomplish tasks. Erna knew that to grab her customer’s attention, she had to start by solving their problems. “If you can take a person from point A to point B, by identifying their crucial problem and then offering to solve it, you will be able to create a real business that matters.”

Another important thing happened that day. She went back to her boss and immediately told him what had transpired. “Honesty, loyalty and integrity have always been the three key pillars of my business, starting from then, and it paid off — Gestetner became a client soon after.”

She started the promotions business with no staff and she didn’t know anyone in Port Elizabeth. “I called up a friend of one of my husband’s friends and asked her to give me ten phone numbers, and then I asked each one of those women to give me another ten. I sold my Citi Golf so that I could have a small start-up fund, and then the business just took off. We got clients like SAB, MTN, Sony, Mango, Maybelline and L’Oréal. I was earning R450 000 for ten days’ work at the age of 23.”

She soon had seven permanent employees, and more than 500 promoters working on campaigns across the country. “Within a couple of years, I had created systems and processes, which enabled the company to reach its goals and function independently without having me in the business, making it a perfect opportunity to sell and move on to the next challenge.”

Finding the gap in the market

It was just before Erna got married that she came up with an idea for another venture — while she was looking for venues, dresses and décor ideas. “I kept on wishing there was one place where I could find everything related to weddings, and then I thought why don’t I create one?” That was how website and magazine Majestic Weddings was born, an online directory and monthly magazine. After growing it into a successful wedding planning tool, she sold that company in April 2017, through an international business broker, and used the profits to launch her hair extension company Erabella.

Transitioning from services to products

erna-basson-grant-cardone

Erna had never run a product-based business before, but there’s a first time for everything, right? Problem is, product businesses are extremely hard to build and get traction for. They require upfront capital and investment, as well as a whole lot of excitement. Erna certainly had the latter, believing that every woman has the right to have gorgeous thick hair.

But there were some challenges:

  • The output of a service-based company is intangible, but a product-based business sells goods that customers can see and touch.
  • A services company does not have to keep goods in stock or maintain an inventory. The service is created or sold as and when the customer
  • needs it.
  • Service-based companies do not have to put up capital — they provide a service and the customer pays for it.
  • In the service industry, you have maximum control — when it comes to a product based company, you sometimes don’t have control over certain things (like a late courier, or late imports, or increase of exchange rate) but it serves as a great opportunity to apply more systems and processes to lower the risk.

“I had to buy stock for the first time. Different lengths of hair extensions, and different colours. Suddenly, I had invested more than R1 million, just like that. What’s more, in South Africa, there is a 20% import duty, which immediately raises the price of your product, making it more difficult to compete globally.”

Related: Want To Start An Import Business – Here Are The Importing Terms And Documents Involved

There was another problem too. Erna had decided that Erabella would be an online business, but it didn’t grow as fast as she wanted it to and she quickly had to change the business model. “That’s when I realised that you cannot take business personally. The minute you invest emotionally, you will make mistakes. When something is not working, you need to take immediate action and make the necessary changes. Nearly every successful company since the beginning of time has had to change strategy and direction to survive and grow.”

Reverse engineering

She also learnt about the importance of starting with the end in mind.

“If you want to make $1 million, write that figure down and reverse engineer. If my hair extensions are priced at $250, I will need to sell 4 000 sets per year, which means 11 sets a day. Instead of being dumbstruck by that big figure, I’ve now got something manageable to work with. It’s that old story about how to eat an elephant.”

Two can be better than one

Another key lesson Erna learnt was that you can do anything, but you can’t do everything. “When I started Erabella, I had one staff member in Johannesburg, and lots of competition. I had to do everything, from accounts, social media, business development and so on, but now we have an entire team in each department. The business grew too slowly and I realised that doing it alone was not going to work. I found a business partner in Cape Town, Karel Vermeulen — a very successful businessman who owns a personal care brand — and I knew we would be a great fit. I knew I could trust him with Erabella SA because he was invested, and I moved on to growing Erabella New Zealand and Australia.”

As a result of the partnership, the business is soaring. Today, Erabella hair extensions are available in South Africa, Namibia, Australia, New Zealand, Hong Kong and Dubai, with Canada next on the list.

That personal investment principle is one that Erna has applied in her coaching business. People do not appreciate what comes free, she says. “If I coach you at no cost, chances are you will say the programme did not work. But if I charge $6 000 a day, I can guarantee that you will do the work required to make it a success, because you have skin in the game. You will value and appreciate the process.”

Related: The Glamorous and Sleek GHD Offices


Erna’s key principles

  1. In the words of Grant Cardone, author of The 10X Rule, follow up, follow up and follow up: ‘90% of business lies in the follow up’. “I always do, and believe that you should follow up so much that they tell you to go away, and then follow up again two weeks later. I chased a client in Cape Town for two years. When their promotions vendor let them down, I was top of mind and I got the deal.”
  2. Never focus on the 10% that’s negative; focus on the 90% that’s positive: “We all need to have bad days in order to appreciate the good ones. When a client says no, see it as a new opportunity (take the negative from the word no, and turn it into a positive new opportunity) to recreate your strategy.”
  3. When people say no, ask them why not: “If I don’t close a deal, I ask, ‘What is the reason we did not do business today? Objections are only complaints — find a solution, and you will win all the time.”
  4. Don’t ask how: “Focus on the what and the who. What do I need to do to achieve my objective and who do I need to speak to? The ‘how’ will take care of itself.”
  5. You are 100% responsible for your business: “Don’t blame the economy, the government or your staff. If you are not successful, it’s your fault.”

3 Mind Hacks For Overcoming Your Fear Of Marketing Yourself

https://www.entrepreneurmag.co.za/advice/marketing/branding/3-mind-hacks-for-overcoming-your-fear-of-marketing-yourself/

The term “personal brand” denotes the phenomenon of people marketing themselves and their careers as brands. I know, because I’ve spent a number of years perfecting mine.

I wear jeans and cowboy boots at every event I go to, for example – no matter how fancy the occasion. That wardrobe choice is just another way I present my brand, the C-Suite Network, as being brash and bold – like me – and refusing to do things a certain way just because they’ve ways been done that way in the past.

But what about other CEOs? Do they “own” their own brand? Should a CEO cultivate his or her own brand, separate from the company? The short answer is … yes!

There are good reasons why: A study by Burson-Marsteller concluded that 48 percent of a company’s reputation can be attributed to the standing of its CEO.

These leaders represent their company’s vision, so both should exemplify the same traits and values. However, a CEO won’t stay CEO forever of that same company. That’s why it’s essential to create a brand identity CEOs can own – a parallel brand of sorts.

A personal brand will travel, in other words. And while the public may have a fascination with a particular company, it’s the people in that company they feel the biggest connection to.

So, why do as many as 61 percent of CEOs, according to CEO.com, lack a personal brand because they have no social media presence? Because they don’t think that move will have an impact, personally or professionally. They couldn’t be more wrong.

study by Weber Shandwick and KRC Research estimated that 44 percent of a company’s market value can be directly linked to the CEO’s reputation. The same study highlighted other benefits when CEOs have a positive brand reputation, including: Attracting investors (87 percent), positive media attention (83 percent), crisis protection (83 percent) and [the ability to] attract prospective employees (77 percent) and retain employees (70 percent).

The takeaway here, of course, is that more CEOs need to own their brand. So the next question has to do with personal branding mistakes.

Related:  It’s Okay To Promote Yourself – In Fact, It’s Necessary. Here’s How To Do It Better

Here are three common ones:

1. Thinking you don’t need a personal brand

If this phrase describes how a CEO thinks about his or her personal brand, that person has no business being CEO of anything. This isn’t about “I don’t want to” or “I hate talking about myself.” This needs to be about what defines you as a leader and what defines you outside of your day job. What are your beliefs and values? How do you want to drive growth and innovation? Basically, this is anything that makes you, you.

Dave Newman, founder of Do It! Marketing, told me once that when a CEO “doesn’t own their brand, they lose control of the company’s story.” Therefore, “no story, no distinction.”

I stated before that your personal brand is forever yours, so it’s your responsibility to create one that blends your leadership style, ideals and values with your company’s brand. Together, these two brands should comprise the perfect complement, but should also be able to exist separately. Remember, you won’t always be the CEO of that company.

2. Thinking you can delegate your brand

I get it: As CEOs, we’re busy people, but that doesn’t mean you can tell your PR or marketing team to “create” a brand for you. There’s no shame in using your PR or marketing team to help you craft aspects of your brand, such as talking points, content or a new, improved bio. It’s just that shaping and creating are two different things.

Many executives believe that the hardest part about building a brand is not knowing what to write about and that that’s something your team can help you with. However, if you don’t know who you are by now and or what you stand for, no PR team can help you.

Sure, they can create a persona for you, but what comes through won’t be authentic, and it will cause irreparable damage, not just to your personal reputation, but to your company’s, too. Creating a brand persona shouldn’t be transactional; it should be (and feel) incredibly personal.

3. Thinking you don’t need a social media presence

Again, wrong! A 2016 report by BRANDfog said that 75 percent of those surveyed believed the executive leadership of a company is improved by those leaders being active on social media. If you’re a leader yourself, you don’t have be present on all platforms, but you should be highly present where most of your target audience lives; and you must use that platform well.

If you’re a strong writer, think about writing a blog – either on your company’s website or for a magazine that covers your industry. Also share the published article on your company’s platforms, including LinkedIn. The content you write doesn’t have to be lengthy or overly technical. It has to be accurate, thoughtful (or thought-provoking), entertaining and educational.

Think of the different social platforms as TV channels; you don’t have to watch all of them, but you do need to present in several mediums to get your message across.

Here’s the good news, then: It’s never too late to turn the ship around. Here are some steps you can take to do that.

Related: Personal Brand Or Business Brand: Which Is More Important?

Think about claiming your URL. Sounds simple enough, but we still sometimes forget to do it. I have my very own – which includes a small bio, social media information, TV interviews I’ve done, a link to my podcast, listings of my books and more. That’s mine and mine alone. No one can claim to be me (as they do on other platforms).

It is also through my social channels that I get more “personal” with my followers. Dave Farrow, CEO and founder of Farrow Communications, told me, “Your brand is just an image of who you actually are. Today, any difference between the two is seen as a betrayal.”

The message here is that people make connections with people. So, give them an insight about your thoughts, opinions and style. Everyone I do business with knows what I’m about. I live my brand 24/7. Everyone should.

As Hall of Fame speaker Mikki Williams said, “Don’t be different; be unique. Anyone can be different, but no one can copy ‘unique.’”

Get in front of the media. This is the part where your team comes in handy. Its members should have the connections to get you in front of a camera. I have been a frequent guest on several national shows and networks. One thing I used to do at one of those networks was have my team look at the “news of the day” and then pitch me to the show.

The producers knew I could be ready in a pinch, so it was a quick turnaround between prepping and going on air. In short, staying on top of the news is critical to getting yourself out there. CEOs need to be topical and, according to Linda Popky, president of Leverage2Market Associates, “use situations as they arise as an opportunity to reinforce the brand and tie the brand to what’s happening on a day-to-day basis.”

Related: They’re Your Rules, Break Them

Write a book: I’m now writing my fourth book, The Hero Factor: How Great Leaders Transform Organizations and Create Winning Cultures. As any author can tell you, books are a long, drawn-out process, but one that should help establish you as a knowledgeable and credible source.

In short, we live in a world that’s connected all the time. One simple click of a button can tell people nearly anything they need to know about you. So, in that kind of world, having a strong CEO brand is no longer a luxury, it’s a necessity. That’s why you should get on this.

Don’t wait until you’re managing a crisis to decide who you want to be and what values you want your company to espouse.

This article was originally posted here on Entrepreneur.com.

Two 20 Year Olds Reshape Entrepreneur Landscape With New Social Investment Platform

https://www.entrepreneurmag.co.za/advice/success-stories/snapshots/two-20-year-olds-reshape-entrepreneur-landscape-with-new-social-investment-platform/

Vital Stats

It’s no secret that finding the right investor for your venture is a challenge that most entrepreneurs face. The current process of finding investment is one that is outdated, and limits entrepreneurs due to a lack of time, and network that is needed to find the right investor. But, this doesn’t have to be the case in today’s digital society, says Zander Matthee and Brandon Bate, co-founders of Merge.

“By making the Internet the middleman, we are able to connect with each other much simpler and faster than before” was Zander’s response. “We have taken advantage of this, and have created a digital meeting place for entrepreneurs and investors” added Brandon.

Merge is a social platform that connects entrepreneurs and investors. It aims to simplify, refine and accelerate the process of finding investment for entrepreneurs, and the process of finding investment opportunities for investors. From idea to developed, the platform allows entrepreneurs to present a brief outline of their venture to a network of all investor types. While doing this, entrepreneurs are able to browse through, and connect with investor profiles that suit their requirements.

Related: 8 Codes Of Success That Helped Priven Reddy of Kagiso Interactive Media Achieve A Networth Of Over R4 Billion

From Private Investors to Venture Capital, and everything in between, Merge allows all investor types to join. Investors have the opportunity to personalise their feed to suit their investment preferences, and will be able to connect with innovative businesses – that are looking for investment – at their fingertips. Only once there is a mutual interest in each other, are users able to enter a secure private chat where they can discuss further and share documents under the protection of a digital NDA.

The two boys became good friends during their time in high school at St Stithians Boys College. However, it was only in their last year, 2016, that they decided to pursue their dreams and create the platform. They didn’t know how to code, so rather ironically, they needed some form of investment to get the platform off the ground.

merge-app

“We knew we had a mountain to climb, but we believed in our vision and that we were really trying to make a difference, and if we could get others to see that, they would be onboard.” said Zander.

Related: Lessons From The Rich And Famous: Manage Your Money Like Oprah To Avoid Going Into Debt Like Nicholas Cage

Chris Peters is one of these individuals that bought into their vision, and became Merge’s first investor. As a successful entrepreneur and part time investor , Chris saw how much value the platform could bring to all entrepreneurs and investors alike. His marketing and strategic background gave him insight into how Merge could play a vital role in a lucrative space, Brand involvement.

“Entrepreneurship and SME development are two key factors that drive economic growth in developing countries like South Africa. That is why brands are currently getting involved, and looking to support entrepreneurs through various means. We have built a platform that allows these brands to successfully market, and execute on the programmes they have created to assist entrepreneurs.” said Chris

Merge was created to assist all entrepreneurs and investors in finding exactly what they are looking for, regardless of age, race, sex, financial position or social status. That is why anybody can sign-up as an entrepreneur. As long as you are determined and willing to work for your dreams. For too long has the investor space been seen as an “elite club for the select few”, and Merge is here to change that. Whether you’ve gotten your bonus at the end of the year and looking for new investment opportunities, or are an active investor, you can sign-up. Whether you’re currently working, or a retired industry leader, you can join as a mentor.

Their vision is to become the ‘go to’, digital meeting place for entrepreneurs and investors, and to truly make a difference in the world.

Eskom Competition Winner Targets More Growth

https://www.entrepreneurmag.co.za/entrepreneur-today/eskom-competition-winner-targets-more-growth/

“The challenge that business owners often face in this respect is comparable to the difficulty that many new parents have with imagining their children grown up and leaving for university. Imagine, however, if parents did not plan ahead for the cost of their education – that would be detrimental to the future of their children. The same could be the case for your business.”

Mjadu says that a good exit strategy is about sustainability and being able to measure your business performance against the goals you have set for it. “It’s really about being able to say, ‘this is when the work is done and I can exit the business or take on a different role – this is what success looks like in terms of monetary return on investment and other business growth indicators’.

“The lack of an exit strategy could be telling of a fundamental lack of measurable business goals and this needs to be addressed,” she says.

From immediate liquidation to liquidation over time; family succession; selling to staff or external investors; the open market or another business; or the gruelling but profitable exercise of taking your company public – there are many different ways in which an entrepreneur can exit their business, but Mjadu says that whatever the process, a strong and solid strategy is essential.

She shares five key points of a good exit strategy:

1. It tells you when you are done

Mjadu says that a good exit strategy should reflect a core understanding of all the intricacies of your business and should be able to tell you when the lifecycle of your business (or of your involvement in the business) should come to an end. This is usually done by including a set of tangible measurables or objectives so that it is easy to ascertain when these have been achieved.

Related: When Do You Know It’s Time To Sell Your Business

2. It sets out the right environment within which to exit

A good exit strategy considers the economic, social and political environment at the time of your exit. Mjadu says that this is important in order to plan for a secure financial future.

“Failure to think about this could result in short-changing yourself by exiting during a tough economic climate when the risk to buyers reduces the value of your business.”

She references the case of Victoria’s Secret when founder, Roy Raymond, sold the failing business for $1m unknowing that it would later grow into the multi-billion dollar empire it is now. “While Raymond’s exit was ultimately necessary for Victoria’s Secret’s growth, he sold it in 1982 during the global recession of the early eighties – one of the world’s biggest financial crises and this influenced the selling price at his exit”.

3. It compensates those who have contributed to the life of your business

It is important to consider the impact your exit could have on investors and staff, says Mjadu. “Closing shop for example, means that your staff no longer have employment at your business. Selling could mean the same.” She adds that it is important to consider ways in which your exit could also benefit these stakeholders – for example, selling to a bigger business could mean more career opportunities for your staff, as well as continued job security.

4. It compensates you

Mjadu says that entrepreneurs often struggle to recognise their own true worth, especially when this involves attaching a monetary value to what has been achieved. “The time of exiting a business is no place to short-change yourself. You need to get out the full worth of what you put in,” she says, explaining that this means ensuring that you are financially secure before and while you go into your next venture.

“Your needs for retirement and medical insurance, as well as the maintenance of your living standard, should be met at your exit.”

Related: Want to Exit the Company? Here’s Your Shareholder Exit Strategy

5. It sustains your entrepreneurial drive

Mjadu says that while you may be nearing the end of one journey, your exit should enable and encourage you to continue to be an entrepreneur – and to look forward to the next journey. “Your entrepreneurial skills and capacity do not end when you exit your business and whatever your strategy, it should egg you on to more entrepreneurial activity including becoming a mentor to aspiring entrepreneurs.”

Mjadu says that exiting your business should allow you a good retrospective look at what you have done over the years – and so planning the strategy early on in your business lifecycle will set you up in regards to what you hope to achieve. “Upon exit, you should be able to say that you have done what you set out to do, financially and socially, and you have some energy left to do more elsewhere.”

Stop Surviving And Start Thriving In Business

https://www.entrepreneurmag.co.za/advice/growing-a-business/business-survival/stop-surviving-and-start-thriving-in-business/

Think global and exponential

If you’re an entrepreneur trying to establish a successful business, it’ll be dead before it even takes off, if you don’t build it for the future. You have to think three to five years ahead, so when it launches, it’s still relevant.

Think like former Canadian pro ice hockey player Wayne Gretzky, who said: “I skate to where the puck is going to be, not where it has been.” And these days it’s easier for entrepreneurs to predict the future thanks to technology and data insights.

Consider what Singularity University co-founder Ray Kurzweil calls The Law of Accelerating Returns. He says the only thing that’s constant is change and that change itself is accelerating exponentially. As per Moore’s Law, information-enabled industries are doubling their performance and halving their price every 18 months, according to the price-performance ratio. The field of biotechnology has managed to surpass that.

Related: 5 Mindset Changes You Must Make When Going From Employee To Entrepreneur

There’s no time to slow down, your business has to constantly evolve, and you have to keep asking “what’s next”. Encourage experimentation and innovation in your company. Innovation focuses on incrementally improving your already existing products and services, while experimentation allows for fresh outlooks and breakthrough strategies that leapfrog old ways.

We should reprogramme our linear mindset into an exponential one. Don’t aim to grow your business by 10 per cent year-on-year, but rather 10 times. The first thing I learned at Singularity University is the potential of exponential growth. If you take 30 linear steps, you only move 30 places, but if you move 30 exponential steps your place doubles with each step and by the 30th step, you’ve moved over a billion places.

We’ve seen this happen with unicorns – not the magical creatures, but start-up companies that are valued at over $1 billion within their first year – like Slack (cloud-based team collaboration tools and services) and Square Inc. (a mobile payment company). It once took around 20 years for American companies to reach the billion-dollar valuation mark, now it may take less than a year.

In the early stages – until your third step – your progress may seem linear. Many exponentially-geared companies give up at this point – just as their growth rate is about to explode. Persevere!

A few decades ago it was unthinkable for an individual or start-up to disrupt entire industries. Start thinking globally, not locally. Use staff-on-demand and crowd souring to propel your business ahead of the competition. It’s unlikely that you have the world’s smartest minds working for you, however with the power of the crowd, you just might.

If you’re struggling to find a solution, turn the challenge into a game and offer prize money. You’ll have thousands of people attempting to solve your problem, but will only pay for the best solution. Kaggle is a platform for predictive modelling and analytics competitions. It lets statisticians and data miners compete to produce the best models for predicting and describing data. Mining company Gold Corp placed its geological data online and offered money to anyone who could locate gold at their Canadian mine. Four of the five winning entries struck gold. And in 2011 it took a team of gamers 10 days to solve an enzyme riddle that could hold the key to curing AIDS.

The six Ds of tech

As companies become information-enabled they should internalise what Singularity University co-founder Peter Diamandis calls the six-step growth cycle of digital technologies. These Six Ds of Tech Disruption are digitisation, deception, disruption, demonetisation, dematerialisation, and democratisation.

The first step is digitisation. Once something enters the digital realm it gains the potential for exponential growth. Think of the radio and CDs. You no longer need either, instead you can stream online, listen via YouTube or download music. After digitisation, growth appears slow, even deceptive. Sadly that’s when many companies opt out. Be patient!

Related: How To Build The Right Mindset For Start-up Success

No one imagined Kodak would disappear after a century. Kodak thought they were in the business of printing photographs, while they were in the business of memories. Think about the need your business solves. Kodak invented the digital camera, but was too scared to disrupt its own industry. It didn’t realise that people were no longer taking photographs in the same way, so their competitors disrupted the industry instead.

Today, the camera has become part of the smartphone and photographs are predominantly shared via social media. Instagram epitomises the next step in the equation: demonetisation. With time technology becomes cheaper and even free. Instead of printing photographs, many people instantly share them on a free smartphone app like Instagram.

Next comes dematerialisation. The radio, camera, video recorder, GPS, calculator and calendar are disappearing from the physical world as they’re being built into the smartphone. The wallet will dematerialise next with the advent of online transactions and cryptocurrencies.

Finally, democratisation happens when government, corporates and the wealthy no longer hold control and masses of people have access. Just think, the average South African with a smartphone has access to much more information than the president of the United States of America had 20 years ago.

In the age of exponential technologies, it’s a risk not to take a risk.

Applications For MEST Class of 2020 Now Open To Aspiring Software Entrepreneurs Across Africa

https://www.entrepreneurmag.co.za/entrepreneur-today/applications-for-mest-class-of-2020-now-open-to-aspiring-software-entrepreneurs-across-africa/

Last night, Rand Merchant Investment Holding (RMI), through AlphaCode, awarded entrepreneurial packages valued at R16 million to eight of South Africa’s most promising financial services start-ups. The entrepreneurial packages consist of R1 million in grant funding and R1 million in support, which includes mentorship, monthly expert-led sessions, exclusive office space in Sandton, marketing, legal and other business support services as well as access to the broader RMI network.

The AlphaCode Incubate initiative, in partnership with Merrill Lynch South Africa and Royal Bafokeng Holdings, identifies South African financial services entrepreneurs with extraordinary ideas and businesses that could impact the financial services industry. More than 200 start-ups applied to participate. Of these, sixteen made it to final pitch evening and eight recipients were selected.

The eight winning businesses are:

Name Description Founders Video link
Akiba Digital A gamified mobile app making it easier and more rewarding to set, manage and meet savings goals. Tebogo Mokwena and Kamogelo Kekana https://bit.ly/2yOjYoX

 

ISpani Group Provides access for insurers into traditionally under insured communities through prepaid vouchers and USSD sold by a network of spaza shop vendors. Prince Nwadeyi, Khathazile Moroe, Patrick Machekera and Louis Buys https://bit.ly/2CrgbkE

 

Jamii De-risks tenant rent default through offering tenants incentive-based discounts on food and transport and bolt-on retrenchment cover. Adrian Taylor, Marc Maasdorp and Bartek Dutkowski https://bit.ly/2ytdc8F

 

Nisa Finance An invoice financing platform that enables financiers to issue invoice-backed loans to SMEs quickly and affordably by fully-automating the application and invoice verification through ERP system integration. Thando Hlongwane, Tekane Ledimo and Sinqobile Mashalaba https://bit.ly/2yptcIW

 

Pago A low cost mobile micro payments platform for the informal sector to enable an inclusive economy by digitising remittances through the use of blockchain technology. Philip Mngadi and Noel Lynch https://bit.ly/2S1QKvn

 

Prospa A mobile savings wallet for low-income earning South Africans that makes it easy to save small amounts infrequently using prepaid vouchers. Dhanyal Davidson and Carl Ngwenya https://bit.ly/2JbwbJf

 

SELFsure Enables millennials to significantly reduce car insurance premiums by self-insuring part of the risk via peer to peer lending. Proud Chitumba, Amos Mugova and Tshepiso Shamane https://bit.ly/2J6HVfV

 

Yalu A self-service credit life insurance platform which replaces a customer’s current policy with a more affordable, simpler and rewarding policy. Nkazi Sokhulu, Tlalane Ntuli, Steve Goeieman and Life Mhlanga https://bit.ly/2PH87QF

 

The programme has disbursed R13 million in funding to 15 black-owned financial services businesses since it began three years ago. “Some have experienced exponential growth and we have been amazed at the level of traction they have received locally and internationally. The intention behind AlphaCode’s Explore, Incubate and Accelerate programmes is for RMI to discover the next OUTsurance or Discovery; we want to identify, partner and grow the future of financial services in South Africa,” says Dominique Collett, head of AlphaCode and a RMI senior investments executive.

During the event, contestants had just three minutes to pitch their businesses, with a couple of minutes set aside for questions from a formidable panel of judges. These included Phuti Mahanyele, CEO of Sigma Capital; Raymond Ndlovu, investment executive, Remgro; Nakedi Ramaphakela, finance director, Royal Bafokeng Holdings; Anthony Knox, MD Investment Banking of Merrill Lynch South Africa and Dominique Collett.

Julie Benadie, regional executive of Operations and Corporate Affairs at Merrill Lynch explained: “We believe in supporting disruptive ideas so that creative fintech solutions will emerge to address the challenges that South Africa faces. We want South Africa to become a fintech centre of excellence with its already advanced financial services infrastructure.”

The AlphaCode Incubate programme deals with common challenges that financial services startups face. All participants are early stage businesses, under two years old and at least 51% owned by black South Africans.

“AlphaCode is also now also seeking additional fintech entrepreneurs for our Explore programme. This offers a 12-month data science and business skills programme for 20 aspirant South African fintech entrepreneurs in conjunction with The Explore Data Science Academy,” Collett added.

Candidates will go through an intensive six-month data science-training programme, where they will learn how to design a 10X business along with the core digital skills needed to build a fintech organisation. This will be followed by three-months of business skills training. Interested fintech entrepreneurs should apply at www.alphacode-explore10x.club by 30 October 2018.”

In addition, AlphaCode recently selected four more established fintech businesses for its Accelerate programme: Entersekt, Livestock Wealth, Click2Sure and Invoice Worx. This R2 million scale up accelerator offers mentorship, expert guidance and support services to help these more established businesses to scale and create jobs.

Workflow And Business Efficiency – 5 Strategies You Ignore At Your Peril

https://www.entrepreneurmag.co.za/advice/personal-improvement/get-organised/workflow-and-business-efficiency-5-strategies-you-ignore-at-your-peril/

There’s always something you’d rather be doing. Even right now, you might be reading this article in an attempt to avoid carrying out a less palatable endeavor.

Procrastination is normal, and especially so these days. Social media, streaming television and movies, the ease of internet access, and the ubiquity of smartphones can all distract. There are ample reasons why people procrastinate, and it’s always been thought of as a blockade to productivity.

But the perception of procrastination doesn’t always match the reality.

“Procrastination is not just avoiding or delaying a task,” says David Ballard, head of the American Psychological Association’s Center for Organisational Excellence. “It also has to include an aspect that’s counterproductive, irrational or unnecessary.”

In fact, active procrastination can often help you get more things done. Below are four psychological reasons entrepreneurs should sometimes lean into procrastination

1. Procrastination helps spur creativity

West Wing creator and Molly’s Game director Aaron Sorkin once said on the Today show, “You call it procrastinating, I call it thinking.” Sorkin puts off writing sometimes until the last minute, and the results speak for themselves.

Even if we’re not all award-winning writers, when you’re putting something off, it doesn’t have to be a distraction. It can simply be a break, and that break can open up a world of new ideas.

When you allow yourself more time to sit and think about what you’re working on, different pathways to a result can bubble into your brain. A 2012 study in Nature discovered – through brain imaging – that the dorsolateral prefrontal cortex (DLPFC) lay largely dormant when rappers were free-styling. Some athletes might even refer to this as “the zone.”

For entrepreneurs, procrastination might be just the thing to trigger an answer that would be impossible to reach if they didn’t let their minds wander away from the task at hand.

Related: Are You A Procrastinator? Don’t Be By Doing These 3 Things

2. Procrastination aids memory recall

In 1927, Lithuanian psychologist Bluma Zeigarnik first discovered how interrupting an event can actually help people remember it. After her professor noticed waiters at a nearby cafe remembered open tabs better than those that had already been paid, she tested the hypothesis by giving a series of puzzles to people to complete, while subtly interrupting half of them.

Those that were interrupted were able to recall details with 90 percent more accuracy than those who were allowed to complete the task. The Zeigarnik Effect was borne.

The same could be said for today’s entrepreneurs. Breaking for lunch, hitting the gym, reading a book, jumping on another task or simply staring out the window can help you better remember the various moving parts in the mission you’re trying to finish.

3. Shockingly, procrastination can enhance focus

This seems like a paradox on its surface. How can you focus better by interrupting what you’re doing – i.e. procrastinating?

Instead of bearing the monotony of working on a single task until it’s done, it’s more helpful to move away – at least briefly. Concentration wanes if we don’t break up the the tedium. Similar to triggering creativity, we’re better able to concentrate if we take a brief blow.

study in 2011 looked at this psychological effect. Subjects were asked to remember random digits while performing a visual task. They found that once people were asked to recall the digits, their performance on the visual task declined over time. But when researchers interrupted the visual exercise with sporadic reminders of the digits, their visual scores remained high no matter the duration.

The short of it: Take a break every once in a while, even if you’re on deadline.

4. Procrastination often yields better decision-making

Oftentimes, entrepreneurs will receive an important email that needs an answer. There’s no hard timetable on the answer, but because of the weight of the question, people drop everything to arrive at an answer. If you don’t take a moment to sit back and let the full import of the question sink in, you’re liable to make the wrong decision.

Researchers at Columbia performed an experiment to test this idea. Would a little more time actually lead to better decisions?

Related: 6 Steps To Go From Procrastinating To Productive

First, they asked the subjects to determine which direction a set of black dots was moving across the screen. At the same time, a cluster of coloured dots starting moving to distract them. Participants were asked to judge as quickly as possible.

When the coloured dots moved in the same direction as the black dots, the results were basically perfect. But when they moved in opposite directions, the accuracy dropped.

Second, they performed the exact same experiment, but subjects were asked to answer when they heard a clicking sound, which they varied between 17-500 milliseconds – a time span meant to mimic real-life decisions, like driving. Researchers found that when decisions were delayed by about 120 milliseconds, their accuracy significantly improved.

However, the researchers differentiated between prolonged and delayed decision-making. If subjects made the decision too quickly, the brain was still filtering out the distractions (coloured dots). But if it took too long, it could be hindered by other distractions.

The same could be said for procrastination. Procrastinate too much, or for too long, and nothing will ever get done. But, as we’ve seen, there are some serious psychological benefits to procrastination.

This article was originally posted here on Entrepreneur.com.

When The Customer Fixates On Price, 
It’s Probably Not About 
The Money

https://www.entrepreneurmag.co.za/advice/sales/sales-strategy-and-management/when-the-customer-fixates-on-price-%e2%80%a8its-probably-not-about-%e2%80%a8the-money/

Like it or not, your business is losing customers. Recent research from McKinsey & Company revealed that only 13 percent of customers surveyed said they were loyal to a single brand. The research found that 87 percent of customers surveyed said they shopped around, and 58 percent had switched to a new brand.

Why do people shop around? What motivates them to abandon the businesses they know and buy products or services from competitors? It’s time that you take a close look at why your business is losing customers – and, what you can do to fix it.

Here are five common reasons why customers leave small businesses … and effective tips you can use to start turning the tide.

1. You’re guilty of poor customer service experience.

Few things can sour a customer experience more quickly than poor customer service. To a customer, your support team is your business. Shauna Geraghty, a clinical psychologist and head of talent at the global customer support innovator TalkDesk revealed on the company’s blog that over 90 percent of customers who are dissatisfied with your customer service experience will — rather than telling you that something is wrong and how you can improve it — just not come back.

So, if you’re not paying attention to your customer-service policies and performance, there’s a good chance that neglect is costing you customers.

This is one reason why some companies, including Comcast, create create support-focused accounts like @comcastcares on Twitter. These accounts are public and are known for helping customers to resolve problems quickly.

Related: How to Lose Customers through your Website

What you can do:

Outline thoughtful, positive customer service practices. Start with an internal audit of the policies that govern your team. Conduct interviews with customer-support managers and representatives.

Assess what company policies have led to customer dissatisfaction. What internal issues are preventing your reps from supporting customers quickly and effectively? Use this data to improve your customer service practices.

Then, bear in mind these three golden rules of customer service:

Respond quickly. Acknowledge when a mistake is made and make it right.

Treat the customer with respect and empathy.

Support your customer support team. Give your customer service team the resources they need to provide your customers with awesome service. This includes the technical infrastructure as well as the autonomy to make choices that will benefit your business and support your customers.

2. Your product or service failed to meet expectations

Disappointed customers are likely to share their disappointment with friends on social media. And angry customers will post angry reviews for other prospective customers to see.

What you can do:

Design and build a quality product or service. Don’t think that marketing magic or any amount of other business trickery is going to make up for a poor product or badly executed service. So, work with a talented product designer.

Test. Build with quality materials. Adapt your service based on customer feedback.

Do whatever it takes to create and deliver a service or product that is worth paying for.

3. You didn’t show the value

valuePrice is what a customer pays. Value is what a customer gets. Sales expert and emotional intelligence coach Liz Wendling pointed out on her blog that customers don’t necessarily choose only “the lowest price or the cheapest in town.” Customer preferences, she said, have nothing to do with price and everything to do with the value you are conveying. When your potential customers tell you it is about the money, wrote Wendling, that is actually customer code for “show me the value.”

This is certainly one reason why Apple continues to dominate when it comes to smartphone profits. In Q4, 2017, Apple captured 87 percent of smartphone industry profits but accounted for only 18 percent of total units sold. Customers, clearly, are buying iPhones because they believe that Apple products deliver more value, despite the higher price.

What you can do:

Identify your unique value proposition. What awesome value do you bring to your customers that other businesses don’t? This is your unique value proposition.

Clearly articulate your unique value proposition on all platforms. Publish the benefits of your product or service on your website home page.

Educate your customer support and sales staffers so that they can speak fluently about the value included in your pricing.

Feature your unique value proposition on the landing page for every offer. (Check out https://www.crowdspring.com/blog/landing-page-guide/this article to learn more about creating effective landing pages.)

Related: 3 Ways To Stop Taking Your Most Loyal Customers For Granted

4. Your business is Inconsistent

In business, and in life, consistency breeds trust. Things that are consistent can be relied upon. And, things that can be relied upon don’t need to be worried about. Inconsistent branding, including using your company’s name or logo differently on your own site and on social networks, plus inconsistent quality or service, all have the potential to drive customers away.

United Airlines learned this lesson the hard way when young women wearing casual wear were not permitted to board a flight unless they changed out of Spandex leggings. Yet any traveler is going to see many, many women at the airport wearing leggings. And there’ was no previous record of United barring others from flying for wearing leggings. That’s why this particular decision created a social media firestorm and lots of confusion.

What you can do:

Deliver an experience customers can rely on. This starts with you and your employees.

Educate all of your employees about what a good customer experience should look like.

Create a branding guide to establish uniform branding guidelines and share it with your team.

Hold your employees accountable for delivering a consistently positive customer experience.

Create strong customer interaction policies. Whatever your policies are, make sure that they will serve your customers well before you implement them. Then stick with them! Be consistent.

5. Your sales tactics are out-of-date.

Aggressive sales techniques are more likely to drive customers away than lead to positive results. Leslie Ye, for HubSpot, wrote that the old sales playbook — dragging prospects through a sales process and strong-arming them into a purchase — worked only because there was no better way for buyers to buy.

If your sales techniques focus on manipulating or coercing a sale, your business is actively chasing customers away.

What you can do:

Employ value-based selling techniques. Take the time to learn what your customer actually needs. Then offer value-based solutions that address those needs. Show how your product benefits the customer and allow them to decide if it’s the right fit for them.

Build relationships with your customers. If you’re trying to sell with every single customer interaction, you’re doing it wrong. Instead, focus on establishing trust with your prospective customers.

Have honest interactions and provide value through useful content and entertaining social media engagement. Then, when a customer needs the product or service you provide, he or she will turn to you, a trusted resource.

The key to growing a business is to maintain the customers you already have while acquiring new ones. So, stop leaking customers. The success of your business depends is at stake.

This article was originally posted here on Entrepreneur.com.

The Average South African Sacrifices Over R500 000 Worth Of Unused Lunch Breaks Over Their Career

https://www.entrepreneurmag.co.za/entrepreneur-today/the-average-south-african-sacrifices-over-r500-000-worth-of-unused-lunch-breaks-over-their-career/

The research conducted amongst 3,000 South African working respondents suggests that more than a third of South Africans skip their lunch break altogether between two to four times per week.

 “The average South African works two and a half years overtime during their lifetime due to unused lunch breaks. That amounts to a staggering *R512, 465.00 worth of free work and unnecessary time spent at their desks instead of taking a break,” says Odile Badenhorst, CareerJunction’s Communications Manager.

Despite their being no written rule, employees have an unhealthy belief that it’s expected of them to skip lunch. “In this fast-paced world of work, it’s a common, and unhealthy, mindset that the more hours we work, with no break, the more we’ll be admired or rewarded,” she adds.

The truth is quite the contrary – According to research, it has long been proven that regular breaks, and a healthy, well-balanced lunch break in particular, increase employee productivity, improve mental well-being, boost creativity, and encourage healthy habits in the workplace. The Cost of a Lunch Break Survey confirms this; when asked how skipping their lunch breaks make them feel, most respondents listed unhappy, indifferent and stressed as emotions that accompany them when working though their lunch breaks. So, why then, are we working ourselves until burn out?

CareerJunction says that the research also showed that while the average lunch break allocated to employees is 60 minutes, the average time taken each day by South African employees is only 24,5

minutes. Only 5% take their full 60 minutes and although over two thirds say their employer encourages them to take lunch, 19% claimed they feel pressured not to take lunch, while 38% have too much work. In fact, 73% of participants said the reason they skip their lunch break is because they have too much work to do or an unexpected task cropped up.

A large percentage, 67%, said they eat at their desks while working, with nearly 60% eating leftovers or a packed lunch. And, even though most workers have access to a full kitchen or seating area, many prefer to eat at their desks, with 45% saying they spend under R100 per week on lunch.  Therefore, the fact that 57% of respondents said that the availability of amenities close to work – such as restaurants, shops, delis, convenience stores – has no impact on their choice of job application, makes sense when you look at the majority bringing lunch from home, or not taking lunch at all.

Related: What The Law Says About Employee Leave And Absence

Smoke breaks have long been a contentious issue in the work place with many non-smokers resenting the number of extra breaks smokers get. Smokers in South Africa take, on average, three to four smoke breaks a day with 42% of their colleagues saying they don’t mind if they do. 29% said they didn’t know or care.

So, why aren’t South Africans taking lunch breaks? “While our research revealed that the majority of South African employees listed unexpected work responsibilities or too much work as reasons, other reasons included having to cover for others, sacrificing lunch breaks to leave work earlier, financial difficulties or simply not caring about lunch,” adds Badenhorst.

While it’s encouraging to see, from the research conducted, that the ‘work till burnout’ culture is largely coming from the employees themselves rather than being enforced by employers, Badenhorst is still calling on employers to encourage their staff to take regular breaks away from their desks and enjoy all the benefits that come with this.

For the full survey results, please visit www.careerjunction.co.za/lunch