Erhalten Sie Zugang zu diesem und mehr als 300000 Büchern ab EUR 5,99 monatlich.
- Herausgeber: Tracey McDonald Publishers
- Kategorie: Fachliteratur
- Sprache: Englisch
- Veröffentlichungsjahr: 2023
Starting a business is one thing. Making that business successful is quite another. We've all read the failure statistics of start-ups, yet we entrepreneurs are a determined bunch of people – we are not easily deterred and will try, and try, and try again. We are the drivers of economic growth and job creation, but sadly we are often the unsung heroes of the South African economy. With the lack of support for start-ups and absence of knowledge-sharing, being an entrepreneur is far from easy and what is missing is business guidance and mentorship. Mistakes are made that could be avoided. We certainly don't have all the answers all of the time, especially when we're starting out. But you know who does? Those who've been down the same path before. And that is where the value of this book, The Book Every Entrepreneur Has to Read, lies. It is full of sage advice, lessons learned, and thousands of hours of hard-earned knowledge from thriving entrepreneurs, covering … What they wish they knew when they were starting out. What they wouldn't do again, and the lesson learned. Wisdom they have picked up along the entrepreneurial journey from mindset to idea, planning to execution, funding to partnerships, networking to negotiating, innovation to strategy, hiring to company culture, social media to technology, and everything in between. Don't become a statistic – start reading and make notes and lists of what you can do today, to not only negotiate the sometimes hazardous entrepreneurial journey, but excel from a great idea to a successful business.
Sie lesen das E-Book in den Legimi-Apps auf:
Seitenzahl: 346
Das E-Book (TTS) können Sie hören im Abo „Legimi Premium” in Legimi-Apps auf:
Ähnliche
First published by Tracey McDonald Publishers, 2023
Suite No. 53, Private Bag X903, Bryanston, South Africa, 2021
www.traceymcdonaldpublishers.com
Copyright © Tracey McDonald Publishers, 2023
All rights reserved.
No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission from the publisher.
ISBN 978-1-998958-73-3
e-ISBN (ePUB) 978-1-998958-74-0
Text design and typesetting by Patricia Crain, Empressa
Cover design by Tomangopawpadilla
Proofreading by Nicole McDonald
Digital conversion by Wouter Reinders
Dedicated to Africa’s entrepreneurs and small business owners
CONTENTS
UNLEASHING THE ENTREPRENEURIAL ‘LUCK OF THIRTEEN’ TO GROW YOUR BUSINESS
_____
Catherine Young
_____
Let’s be honest …
Starting, running, and growing a successful business is no easy feat. We navigate the first year facing the dreaded statistic of a 70% potential failure rate. If we’re lucky enough to make it through Year One, our chance of making the Year Three cut-off is about 35%.
Dire situation, right? Well, having worked with thousands of entrepreneurs for more than two decades, and having run my own businesses, and continue to do so, I’ve found that there are fundamentals that change unlucky statistics into serendipitous success. Funny how we often think success is masqueraded as luck, but in entrepreneurship we know that relentless pursuit, hard work and unyielding determination to operate in the spaces between certainty, truly result in successful luck.
Check these thirteen tips below to increase entrepreneurial luck into groundbreaking success.
TIP 1: NEVER SAY WHAT YOU ARE EXPECTED TO SAY – SAY WHAT IS NEEDED TO GET THE JOB DONE.
Effective communication is the cornerstone of any successful business endeavour. Regardless of who we talk to. But it’s not about saying what’s expected. It’s about saying what is authentic and needed to get the job done. Being authentic and owning the core message of our businesses keeps things real. When something works, say it. When something is a mess, say it. When something is wrong, say it. If we only say what is expected, our businesses will become foreign to us and we will lose our passion for it. Let’s keep our passion and be clear on our views, in a respectful, authentic way. Growth will come naturally.
TIP 2: LEARNING FROM GIANTS.
Trench time is the best time. Especially when we can do trench work with giants. Whether our trench work means learning from a corporate career before starting a business, or taking feedback from a stalwart entrepreneur who has gone before us, or working our way up in a small business. Successful entrepreneurs never stop learning; they never believe they know it all. They never stop leaning on giants to help them grow. Wherever we learn our unique perspectives, let’s just keep on learning. Lifelong learning from giants is a direct path to business growth.
TIP 3: THE ART OF CHOOSING A BUSINESS PARTNER.
The statistics are clear. Businesses with multiple founders have a higher chance of success due to the combination of different skills and perspectives. Business partnerships can propel a venture to unprecedented heights; however, they can be fraught with complexities if not approached cautiously. When picking a business partner, let’s be sure that they share our vision, aspirations and work ethic. ‘Going fifty-fifty’ into any venture said no wise human ever. Evaluate the structure, the roles and what each partner brings to the table very carefully and base shareholding objectively on that. We have one chance to do this – at the start of a venture – so, let’s get the basics right. Think about it – if we can’t discuss these topics at the start, how much more difficult will it get later?
TIP 4: NAVIGATING THE CAPITAL CONUNDRUM.
Limited funds should not deter us from our entrepreneurial dreams. Money is merely a conduit. There’s always a financial source waiting to be tapped into. It is our responsibility as entrepreneurs to get to know the sources and when they will allocate which funding. Every business life stage has a different optimal source of funding, so getting to know the best funding options for the business is crucial. Bootstrapping and using customers as a source of funding are some of the best ways to fund a business initially. Customers equal traction and traction equals growth; growth equals fair valuation when we’re ready to take investment.
TIP 5: CHARACTER MATTERS.
Character is a powerful driving force for an entrepreneur. Embodying a ‘glass half full’ mindset allows us to rebound from setbacks quickly. In the face of adversity, let’s not wallow in despair. Instead, let’s revisit our strategies, create new plans, and adjust our resources. Flexibility in approach, backed by a resilient spirit, will set the stage for long-term success. Entrepreneurship does not do well with procrastination. The true character of an entrepreneur knows anything is possible and that adaptability and speed set you apart from the rest.
TIP 6: DON’T OVER-ROMANTICISE YOUR PRODUCT.
Passion for our product is important, but if we are over-romanticising it, we are in trouble. If a product doesn’t find its market fit, it’s crucial to recognise this early. Not for a minute is the suggestion to pivot on a whim, but if we have talked to at least two hundred B2C customers, or at least fifty B2B clients, and 40% of them say they would be disappointed if the product will not be available, then we have a good chance of making the product work towards meaningful revenues. If we have less than this, we need to shift focus to something different, and quickly. Let’s not be afraid to kill our darlings but learn from the experience.
TIP 7: CHOOSING YOUR BUSINESS.
When we choose the business we want to be in, we need to be true and honest with ourselves. What makes you feel passionate? Why are you doing it? What are you good at? What will people pay money for? How can you be innovative and do things differently? If we truly find the business that will make us feel alive, the balance sheet items will follow. If a business no longer makes us feel alive, we need to get out, or get a CEO, or let the kids take over, or become a silent shareholder and start something new. Life is simply too short not to.
TIP 8: BUILDING A WINNING TEAM.
A winning team is about the people in it. We need to look for complementary skillsets in a team, rather than hiring people who are just like us. Diverse behavioural traits, diverse entrepreneurial DNA, diverse backgrounds and diverse ways of thinking, will enable the different bits to make up the whole. Instead of focusing on fixing our weaknesses, we should hire in for those and focus on building our strengths. And a reminder, not everyone is cut out to work with an entrepreneur, so let’s make sure to hire for innovative, highly flexible pragmatists who are not alarmed by change. Let’s choose carefully.
TIP 9: NO ONE IS COMING FOR YOU.
We need to understand this from the start: No one is coming for us. As entrepreneurs we have no right to anything. We are not entitled to anything from our government, our financial institutions, our customers, or our critics. Entrepreneurship is an extremely lonely road, but an extremely fulfilling one. And we must learn to build our businesses on our own shoulders, and surround ourselves with competent teams, supportive mentors, a spirit of lifelong learning and an internal locus of control. We don’t need to be rescued. We are entrepreneurs.
TIP 10: THE POWER OF GROWTH AND RESILIENCE.
An entrepreneur’s journey is one of continuous learning, exploration, and resilience. We need to expect tough times and be ready to adapt. Let’s use checkpoints at key stages in our business to assess and recalibrate business strategy. The important thing is to keep pushing, growing, and learning. There will be stress, things will be tough, so finding healthy coping mechanisms that help us get through the day is imperative. Life is not what happens to us, life is what happens for us.
TIP 11: YOU GET FROM THE NETWORK WHAT YOU GIVE TO THE NETWORK.
Over 85% of people using #networking on social media platforms are between the ages of 25 and 44. Very similar to the majority age demographic of entrepreneurs globally. So, go figure, we know we need to network, and we do, but there are networkers and then there are networkers. The successful networkers are relentless; they see it as part of their core role as an entrepreneur, and know that they get as much from a network as they give to a network. So, to truly help our businesses grow, let’s ensure we ask from our networks as much as we can give back. It’s a game of give and take.
TIP 12: YOU SET THE TONE.
Whether we like it or not, as founders of our businesses, we set the tone – for everything. We set the tone on a Monday morning for how the rest of the week will pan out. We set the tone with a new client when we sign the deal. We set the tone with our team when the chips are down. We set the tone for the future. Let’s ensure we are mindful when we engage with our circle, as our tone impacts our future.
TIP 13: FAMILY AND FRIENDS.
The light-hearted anonymous quote ‘Family and business don’t mix, just like friends and business don’t. Unless you want to end up friendless and disowned’ is no joke. Starting out with a level of expected trust and commitment from family and friends is very different to ten years later when the growing pains of the business created real wounds and broken relationships. Let’s be very clear from the outset if we include family or friends in the business, of our expectations, roles and responsibilities, and the potential risk to our personal relationships, to avoid future heartache. If we run a business with friends or family already in the mix, let’s ensure a level of professionalism and clear boundaries to continue successful business growth.
In closing, remember: ‘You don’t have to work for anyone if you can work for yourself.’
CATHERINE YOUNG
Founder of Thinkroom Consulting | Managing Partner at Grindstone Ventures and Grindstone Accelerator
LinkedIn: https://www.linkedin.com/in/catherine-young-b7077115/
Website: https://thinkroom.co/
Website: https://grindstonexl.com/
Facebook: https://www.facebook.com/thinkroom
Twitter: https://twitter.com/ThinkroomSME
CONQUERING UNCHARTED REALMS: THE ODYSSEY OF A DISRUPTIVE ENTREPRENEUR
_____
Abdullah Verachia
_____
Picture an explorer setting sail for uncharted territories, braving unknown lands and distant horizons, despite the many risks and uncertainties. This is the spirit that defines a disruptive entrepreneur. They aren’t just business people; they’re visionaries and pioneers, risk-takers who dare to venture into unexplored markets and reshape existing landscapes. This chapter invites you on an exhilarating journey to unlock the secrets of disruptive entrepreneurship, and to learn how to ride the exciting wave of disruption.
THE DISRUPTIVE ENTREPRENEUR: A FORCE OF NATURE
New technologies have upended industries around the world: music and entertainment, media, transport, power generation and computing. Things that we encounter on a daily basis will never be the same again.
According to a recent article from the World Economic Forum, disruption may in fact be the new economic driver of our times. Disruptive leaders like to question and to break the rules. Changing the status quo and taking bold, innovative action comes naturally to them. As the world becomes increasingly complex, an ability to focus on what matters really counts. Growth leaders are set apart by their penchant for bold action – their willingness to move where they need to go, and at speed.
The disruptive entrepreneur is a storm, a whirlwind of change that transforms landscapes and redefines norms. They’re the artist painting vivid colours on a canvas that others deemed complete.
Disruptive entrepreneurship starts with a golden idea, a flicker of insight that holds the potential to ignite a wildfire of change. It’s about seeing the world, not as it is, but as it could be. Your idea could be a groundbreaking technology, a radical business model, or a unique approach to customer engagement. Any industry, from fashion to agriculture, can be your canvas if you’re willing to wield the brush of innovation.
And remember, innovation doesn’t always involve reinventing the wheel. Often, it’s about seeing new ways to spin it, ways that can make the world sit up and take notice.
BUILDING A DISRUPTIVE BUSINESS
Becoming a disruptive entrepreneur is akin to embarking on a daring quest. You need to carry a rebel’s spirit, a maverick’s nerve, and an innovator’s vision.
Here’s what you need in your backpack:
The Courage to Confront Uncertainty: Uncertainty can be your most daunting adversary, but when you face it head-on, it can turn into your most exciting adventure.
Challenge the Status Quo: Break free from the confines of conventional thinking and challenge the way things have always been done. Disruption happens when we question established norms and push the boundaries of what’s possible. Dare to challenge industry conventions, explore untapped opportunities, and be unafraid to go against the grain.
Embrace Bold Innovation: Incremental improvements may be safe, but true disruption requires audacious innovation. Embrace radical ideas that can transform entire industries. Seek out novel approaches, technologies, and business models that have the potential to revolutionise the way things are done. Be willing to take risks and pursue game-changing ideas.
The Agility of a Peregrine Falcon: In a world where change is the only constant, learning agility is your superpower. Adapt, evolve, and transform with the changing landscapes.
Embrace Agility and Adaptability: The business landscape is dynamic and ever-evolving. To thrive as a disruptor, you must be agile and adaptable. Become comfortable with constant change, be responsive to market shifts, and always seek new opportunities. Develop a culture that encourages experimentation, learning, and flexibility. Embrace a growth mindset and view challenges as opportunities for growth.
The Resilience of Steel Crampons:The journey of disruption is dotted with trials and tribulations. You will need resilience to take on technical, steep and icy terrain, again and again. Stay calm in the face of challenges, and when things don’t go according to plan continue to work towards your goals and adjust your long term plans if necessary.
The Compass of Market Validation: Before you embark on your journey, ensure that your map is accurate. Conduct meticulous market research to chart your path.
Think Big, Start Small: Disruption doesn’t happen overnight. While it’s crucial to think big and envision the long-term impact of your venture, it’s equally important to start small and iterate as you go. Break down your ambitious goals into manageable steps, test your ideas, gather feedback, and refine your approach along the way. Learn from failures, adapt quickly, and persevere.
The Rope of a Disruptive Business Model: Scale the heights with a business model that’s as innovative as your idea. Be it a unique pricing strategy, or an unheard-of customer engagement plan, your model should be able to withstand the strong winds of the market.
Leverage Emerging Technologies: Embrace the power of emerging technologies to drive your disruptive vision. Explore advancements in artificial intelligence, blockchain, robotics, or whatever tools are relevant to your industry. Be at the forefront of technological innovation and leverage these tools to reimagine existing systems, streamline processes, and create new value for customers.
Disruption should always be rooted in delivering exceptional customer experiences. Truly understand your customers’ needs, pain points, and desires. Develop products, services, and experiences that cater to these needs, going above and beyond their expectations. Engage with your customers, seek feedback, and continuously iterate to refine your offerings.
The Oxygen Cylinder of Funding: Your disruptive venture might need a substantial financial boost. Choose your oxygen supply wisely, be it bootstrapping, crowdfunding, or venture capital.
Writing in the Journal of Management Studies, authors Van Balen, Tarakci and Sood found that the ability to clearly articulate a disruptive vision increases the likelihood of the venture receiving funding. However, the amount of funding obtained may be reduced due to investors’ expectations of extraordinary returns from disruptive ventures.
The Sherpas of Disruption: Your team is your most valuable asset. Surround yourself with individuals who share your vision and can brave the journey with you.
In a recent Harvard Business Review article, Prof Linda Hill said leaders need intense collaboration with the people who understand technology and new tools, and have to be open to having their perspectives challenged.
Collaborate and Build Networks: Disruption often thrives in collaborative environments. Seek out partnerships, collaborations, and networks that can amplify your impact. Surround yourself with diverse thinkers, industry experts, and fellow disruptors who can challenge and inspire you. Foster a community of support and collaboration to fuel your entrepreneurial journey.
The Ice Axe of Flexibility: On the mountain of disruption, you’ll need to carve your own path. Be ready to iterate, pivot, and take detours based on market feedback and emerging trends.
Create Meaningful Impact: Disruption should not only be about profit; it should also be about creating a real difference. Consider the social and environmental dimensions of your venture. Find ways to align your business with a larger purpose, contribute to sustainable practices, and make a positive difference in the world. A purpose-driven approach attracts loyal customers and builds a lasting legacy.
The journey of a disruptive entrepreneur is an expedition filled with excitement, danger, and unparalleled reward. Strap on your boots, tighten your grip, and embrace the thrilling odyssey of disruption.
Remember, as a disruptor, you have the power to reshape industries and create a lasting impact. Embrace the challenge, unleash your creativity, and be relentless in pursuing your vision.
Let your passion, determination, and unique perspective guide you on your journey of entrepreneurial disruption.
ABDULLAH VERACHIA
Founder and CEO of The Strategists
Senior Faculty and Head of the Harvard Senior Executive Programme for Africa at GIBS
Global Strategist | Speaker | Management Consultant | Board Member | Author
Websites: https://www.averachia.com/ and https://www.thestrategists.co.za/
LinkedIn: https://www.linkedin.com/in/abdullah-h-verachia-global-future-strategist/
TRIFLES, TRENDS, AND TRUTHS: SOLID FOUNDATIONS FOR RADICAL INNOVATION
_____
Dave Duarte
_____
I got my first lucky break in business in 2006 when I committed myself wholeheartedly to the emerging trend of social media. The real game changer for me was realising the fact that suddenly there was technology that enabled anyone to publish easily, inexpensively, and immediately, to reach an audience online. Although the market in South Africa was small at the time, there was almost no competition. I could quit my job and start earning money by providing social media services: courses, networking events, and consulting.
I enjoyed early success, landing large corporate clients in South Africa and internationally. I made friends, travelled the world, and enjoyed doing what I found both easy and fulfilling.
However, as more and more people entered the industry, standing out and staying ahead became more challenging. By 2010, simply keeping up with the changes in the industry was a full-time job. I was working insane hours, not taking enough holidays, and damaging my physical and mental health just to keep up. It was no longer as fun or fulfilling. I remember feeling a kind of despair that, at the ripe old age of 28, I was getting stale. What was my distinctive offering? What could I do, see, or offer that others couldn’t?
FINDING MY TRUTH
Luckily, through mentorship, I had the opportunity to reflect on what was most important to me in my work. And I found a way to see beyond the ever-shifting sands of emerging technologies and build on the bedrock of value creation. My health improved, I found meaning in my work again, and not only kept up with industry developments, but started pioneering changes that led to breakthrough results.
This change was so significant that I distilled it into a framework I could use in my business strategy and consulting. And it’s that framework that I’d like to share with you now. It has guided me in finding a more sustainable way of staying ahead of the market without exhausting myself. I call it ‘Trifles, Trends, and Truths’.
EXAMINING THE FRAMEWORK
In business we need to grapple with changing market opportunities and expectations constantly. New technologies, new competitors, market forces and changing preferences all impact us. There are two kinds of businesses that get destroyed by all this change: those that are too slow to change and become stale and irrelevant, and those who over-respond to change and lose their character and ability to deliver excellently over time.
I find that breaking change down into three levels really helps me decide what to act on. The fact is that we don’t know what the world is going to be like next year, but we do know what we stand for and what’s important to us as a business. We need to start with a strong foundation around which we build excellence (our Truths), keep track of substantial shifts in market expectations that we expect will impact us over a 12-36 month period (Trends), and decide which short term opportunities we want to ignore and which we want to take a risk on (Trifles). There are benefits of all three, and distinguishing and working with them allows you to be both durable and surprising over time.
I’ll break down each in turn, and hopefully you’ll have a good sense of how to apply this framework to your own thinking and strategy in business and organisational design.
1. Trifles
Trifles are the shiny, new things that capture the public’s attention for a while but often don’t have lasting importance or substantial impact on the market. These could be fads, viral phenomena, or hot topics that rapidly rise in popularity but fade away just as quickly. I have found that in technology this is what tends to panic people in the short term, but that in the long run have yet to prove their value – think metaverse, Bitcoin, and flexible screens as an example. They may prove game-changers in the long run but are currently subject to extremely volatile, highly speculative hype-cycles.
While Trifles can sometimes offer short term opportunities for quick profits, they generally don’t form a stable basis for a long-term business strategy. Entrepreneurs and innovators should be cautious about investing too heavily in Trifles, as their fleeting nature can lead to unsustainable business models.
However, Trifles can sometimes indicate emerging Trends or more profound Truths, so it’s essential not to dismiss them entirely. Instead, they should be analysed critically to determine if they represent a deeper shift in consumer behaviour or the market.
An example of a Trifle could be the fidget spinner craze that took off in 2017. These small, handheld toys became incredibly popular – quickly – with children and adults buying them in droves. But, the fad soon faded and demand for fidget spinners dropped dramatically. Businesses that invested heavily in producing, distributing, or selling fidget spinners might have made short-term profits, however those who based their entire business model around the craze would have found themselves in a difficult situation when it ended.
Ditto making masks during Covid-19. Huge short-term opportunity – and kudos to those who could rise and meet the demand. But, the 2021 level of demand for masks longer term couldn’t be sustained; if those businesses over-invested in that particular product, they wouldn’t be able to sustain sales. Rather, it would be their ability to focus on more fundamental drivers of their value creation, such as manufacturing agility, wide distribution, material science, reliable delivery, performance under pressure, or whatever else enabled them to succeed in scaling up, in response to the short term opportunity as an organisation.
The critical thing with Trifles is to capture the moment, ride the lightning, take the win, and solve the problem, but be willing to divest and move on before demand collapses.
2. Trends
Trends represent more significant shifts in the market, technology, or society that can create new business opportunities. Changes in consumer behaviour, technological advancements, regulatory modifications, demographic changes, or other large-scale factors might drive Trends.
Unlike Trifles, Trends tend to persist over a more extended period and can substantially impact the market. Businesses that identify and leverage Trends effectively can gain a competitive advantage and achieve significant growth.
Despite that, even Trends eventually fade or evolve, so businesses should continuously monitor the market and be prepared to adapt their strategies as necessary. While Trends can offer significant opportunities, it’s also essential to avoid becoming too reliant on a single Trend, as this can make a business vulnerable to shifts in the market.
An example of a Trend might be the rise of remote work and online collaboration tools, which the Covid-19 pandemic has accelerated. While remote work was already increasing before the pandemic, the need for social distancing led many businesses to implement remote work policies, leading to a surge in demand for tools that facilitate online collaboration. This Trend has significantly impacted how many businesses operate and has created new opportunities for companies that provide relevant products or services. However, as the pandemic subsides, businesses will need to adapt to changes in the market, such as potential shifts back towards in-person work, or the development of hybrid work models.
Major Trends right now may include anything to do with integrating AI into your workflow, looking at ways to reduce pollution or carbon emissions from your supply chain, automation, using more sustainable materials, and more. Look at where the world is going, and start moving before you’re forced to.
Not all Trends are relevant to your business, so this is about placing your 3-5 year bets where you think the market will be. I believe that this is how sustainable innovation really happens. Your results in three years’ time will be determined by the Trend you start investing in today, so that you can be a market leader, or at least compliant, by the time the Trend becomes more mainstream.
3. Truths
Truths represent fundamental aspects of human behaviour or the market that remain constant over time. I call these fundamental drivers of your business your Truths. They’re your value drivers. If you’re in the restaurant business, you might have ‘Deliciousness’ and ‘Freshness’ as value drivers, or maybe ‘Personal Service’, or ‘Always the Same’ – or whatever you most value and want to be most known for.
Jeff Bezos – founder of e-commerce giant Amazon – has often talked about the importance of focusing on things that don’t change as a critical business strategy. His philosophy is that businesses should invest in services or products that will always be in demand, rather than chasing after Trends that come and go.
One of his most famous quotes on this subject is from a 2012 interview:
‘I very frequently get the question: “What’s going to change in the next 10 years?” And that is a very interesting question; it’s a very common one. I almost never get the question: “What’s not going to change in the next 10 years?” And I submit to you that that second question is actually the more important of the two – because you can build a business strategy around the things that are stable in time. [...] In our retail business, we know that customers want low prices, and I know that’s going to be true 10 years from now. They want fast delivery; they want a vast selection. It’s impossible to imagine a future 10 years from now where a customer comes up to me and says, “Jeff, I love Amazon; I just wish the prices were a little higher,” [or] “I love Amazon; I just wish you’d deliver a little more slowly.” Impossible.’
In this, we see Bezos’ belief in investing in aspects of business that customers will always value, the kind of long-term thinking that has played a vital role in his and Amazon’s success. For Jeff and Amazon, those bedrock Truths are low prices, fast delivery, and awide selection. But these things are different for every business, based on what you want to excel at.
Truths form a solid foundation for a long-term business strategy because they represent enduring customer needs or desires. Businesses that consistently deliver on these Truths will likely enjoy sustained success and customer loyalty.
While Truths are less flashy than Trifles or Trends, they often represent the most significant opportunities for businesses. By delivering value in areas that will always be important to customers, companies can build a durable competitive advantage that will stand the test of time.
An example of a Truth might be the human desire for convenience. Whether it’s fast food, online shopping or streaming services, people have consistently shown that they value getting what they want quickly and easily. Businesses offering a more convenient solution to a problem or need often gain a significant competitive advantage. This Truth has remained constant over time and is likely to continue, making it a solid foundation for a business strategy. For example, Amazon’s success is primarily based on its convenience – with its vast selection, competitive prices, and fast delivery, it’s a go-to solution for many people’s shopping needs.
WORKING OUT YOUR OWN
In a world that seems to be faster, more complex and unpredictable than ever before, it is helpful to be reminded that some things never change (Truths), other things change slowly and rather predictably that you can play with very short term (Trends), and risky opportunities without betting your whole future on them (Trifles). In terms of investment, I would say you should proportion out your time and energy in a way that 70% of your energy and resources go into establishing and maintaining your Truths, 20% should go into investing into emerging Trends, and 10% should go towards speculating in high-risk/high-return Trifles.
Feel free to change these totally made-up proportions to suit your own risk profile, of course. But however you do it, remember that in the long run the business that survives and thrives will be the business that delivers consistent value in a way that meets the changing expectations of their customers, and occasionally delights them too.
Whatever you do, I believe that it needs to make sense to you as an entrepreneur. If you’re feeling panicked or overwhelmed you need to pause and reconnect with your purpose and what’s important to you in your business. The best decisions about what to invest time, money and other resources into are always going to be based on your Truths.
DAVE DUARTE
Founder of Treeshake | Communications Strategist | Social Entrepreneur
LinkedIn: https://www.linkedin.com/in/daveduarte/
Personal website: https://www.daveduarte.co.za/
Business website: https://treeshake.com/
Facebook: https://www.facebook.com/treeshakes
Twitter: https://twitter.com/DaveDuarte
Instagram: https://www.instagram.com/treeshake/
MY ENTREPRENEURIAL JOURNEY IN SEVEN INSIGHTS
_____
Jessica Boonstra
_____
‘Why don’t you start a business, and I will give you the seed capital,’ he said.
My eyes must have opened wider than the plate of mouth-watering starters that sat in front of me.
It was late 2018 and I was meeting an accomplished British entrepreneur for lunch, on the back of some work I had done for the charity he sponsored. He was charismatic; the type of man who is used to getting his way.
‘Well that’s just ridiculous, have you looked at me? I am not an entrepreneur!’ I replied.
As a mother of three with a corporate background, the idea had simply never crossed my mind. But my very persistent first angel investor and I shared one fascination: the potential of the South African township market and its readiness for a ‘digital revolution’. And I was about to learn my first key lesson …
1.Entrepreneurs come in all shapes and sizes. You don’t have to fit the mould of a ‘smooth 20-something Silicon Valley-type’. If you are a problem solver and you are obsessed with a certain problem, there might be an entrepreneur hiding inside you.
Indeed, my interest in the ‘kasi economy’ would soon escalate to a full-blown smack-me-in-the-face, who-needs-sleep-anyway level obsession. And while many of the people I spoke to in those early days would share well-intended warnings about the township market being ‘too poor, too difficult, and too dangerous’, I did manage to get a small motley crew of brave colleagues together to start experimenting with simple e-commerce solutions built around the market specifics (such as high cash high crime, low technical literacy, high cost of data, low budgets but high demands). We started in my garage and we had one mission: find out if and if so, how, an e-commerce solution for townships could assist in empowering informal businesses and communities. And it had to be a sustainable (and thus financially viable) solution.
2.Shut up and listen. Even though I had an extensive background in online retailing and logistics, this was not a matter of copy-and-pasting. It was a matter of unlearning everything we thought we knew, and spending precious days on end listening to busy spaza owners, formidable gogos and budding young township professionals before reconnecting the dots into a first version of a business concept. We went in customer-first, never tech-first, and built our entire user experience around what our learnings told us.
After about a year, Covid-19 hit. When most of South Africa was locked safely inside their homes, our small team of by then six people was out every day on the eerily empty roads, waving our Essential Services permit to get through roadblocks. The pandemic meant the immediate end of some of our early-stage experiments and most of our sales vaporised. However, we had been dealing with a phenomenal local charity that, we knew, was battling against the instantaneous hunger crisis.
We all masked up and met up, and we asked if we could somehow assist. Surprisingly, the charity said ‘yes please’. We developed a win-win plan together: they knew the local communities and had the sponsorships of big donors; we had logistics experience, some simple systems and, most importantly, a lot of bravado. Together, we decided to just figure it out along the way.
Before we knew it, we were one of the Western Cape’s leading emergency relief logistics providers. In that period, we delivered an equivalent of over 35 million meals to vulnerable households and built the foundation of our future organisation, our supplier relations, team and systems.
3.Turn every crisis into an opportunity. Covid-19 could have been the end of Yebo Fresh. Instead, it was the genesis of our growth.
Entrepreneuring in today’s VUCA (Volatile, Uncertain, Complex and Ambiguous) world is tough in general. Townships in South Africa are like the VUCA world on steroids. It is a space of inspirational people doing mighty things with little, and building thriving businesses against all odds. But also one of crime, convoluted social dynamics, and hectic volatility. Navigating this day-to-day reality in stark contrast with the (for me) brave new world of investors, cap tables, SAFE (Simple Agreement for Future Equity) notes and five-year business plans, is enough to regularly send my imposter syndrome on a raging frenzy. Every day brings enough challenges to potentially throw me off course, and running this business is the most vulnerable experience I have ever lived. So here is a lesson for the fellow self-doubting entrepreneurs among you …
4.Feel the fear and do it anyway. Do the scary CNN interview. Make the hectic decision. Reach out to the big player and make them a bold offer. Lean into those gruelling nerves and stomach pains, realising that every failure is a lesson and every ‘maybe’ is a win. I’m not saying it gets easier (I find it actually gets tougher as the business develops and the stakes get higher every time), but at least the personal growth is real, and I now tend to laugh at what I found intimidating a year ago.
As a company expands, something intriguing happens when it comes to roles and responsibilities.
In the early stages, agility and mobility is everything. Our small ‘garage’ team sorted all work and activities between us and it happened almost organically. We were also extremely hands-on: if a delivery driver didn’t show up, I would load up my own family car and drive into the heart of Imizamo Yethu to personally deliver Mama Miriam’s Maize Meal. We would go with the flow, solve problems along the way and we knew the nuts and bolts of the entire business inside and out.
However, soon enough that same fluidity would start to hamper our growth. Scalability requires repeatability, which requires procedures, rules, and even (gasp) a certain level of bureaucracy – especially in a field like online sales and logistics. Meeting structures, Standard Operating Procedures, frameworks and KPIs become the skeleton of the company – its literal strength – and superhero generalists or ‘fixers’ naturally make way for in-depth specialists with a clear mandate.
5.Find the right balance between formal structures and agility, at the right time. Fast forward what feels like a hundred years (but in reality, barely four years), Yebo Fresh is now active in 25 townships across the country, has built some uber cool order-to-delivery tech and has deals in place with most of the country’s leading FMCGs. We have pivoted to a B2B solution that services thousands of spaza shops, prepared food businesses and many other township SMEs with the goods and services they need to run their operation. We have grown to a team of over 100 amazing individuals. And here is one of the most important lessons I learnt over the years: people are everything.
6.Surround yourself with people who build you up and give you energy. This starts at home. I am lucky enough to have an incredible support system in my husband and kids, who know I am a tad crazy to do what I do, and they are tolerant and kind enough to back me throughout this wild odyssey.
Then the team. I have learnt to select for attitude over aptitude. Hiring people who do not fit the culture is much like trying to fit a square peg in a round hole: it damages both the company as well as the individual. If the match is wrong, moving on swiftly and decisively is better for everyone involved. The right people will make you fly, and you know it within days. My top team are all better than I am in their own disciplines, and we know how to find each other to succeed together.
The same applies to investors. Fundraising is about so much more than the capital. If there is no chemistry and no constructive dialogue with an investor, you should definitely not want their money either as it will come back to bite you later. Yebo Fresh has a long cap table, but we have been in the privileged position to have a network of investors, board members and advisers who challenge and support us in equal measures.
Which brings me to my closing takeaway …
7.Count your blessings. Reflecting on this wild and somewhat madcap entrepreneurial ride, it is easy to be consumed by the many challenges and obstacles that lie in the path.
I regularly try to pause, breathe and remember what a privilege it is to be building a company in one of the most beautiful and exciting places on the planet. The journey is filled with as many highs as there are lows, and every twist and turn shapes me, our team, and our venture in significant ways.
So, my fellow entrepreneurs, follow your obsession, embrace the chaos, cherish each moment of success and (sometimes painful) growth, persist through trials, and stay a tad crazy!
Jessica Boonstra
Founder and CEO of Yebo Fresh
LinkedIn: linkedin.com/in/jessica-boonstra-424215
Website: https://www.yebofresh.co.za/
Facebook: https://www.facebook.com/yebofresh/
