Some of the Lessons learnt: One year on
1. Have a personal vision for your life, not just the company’s vision. This will be important as you spend time in the business. When times are hard, you will be tested. If you do not know where you want to go to as a human being and what you stand for, you will be swayed by anything and everything. You need to be able to live with yourself when the lights are off and when you are the only one that can hear your inner voice and thoughts. Do not do things you will regret. Life is too short for regrets. When things are tough, that is when your true character and values come out. Make sure you will like the person you are and have become when you draw your last breath.
2. Cash flow is definitely not a theory, it is a reality. (Cash flow is essentially the movement of money into and out of your business; it's the cycle of cash inflows and cash outflows that determine your business' solvency).
v We heard about cash flow in accounting and in entrepreneurship everyday whilst we were doing the MBA. You know the word. You may even be able to define it. Then you experience it. I do not think you can really be prepared for the experience. For some of us that began our businesses last year, it was a softer landing in a sense because the entire world was going through a crunch.
v Each potential client who enters your business pipeline has a tremendous potential value to you, but until the money is in your bank account, they represent a cost. The ongoing focus in our business is figuring who has our money in their pocket (and just don’t know it yet). All the energy is spent on going to get that money and putting it into our pocket.
v It is rare that one gets revenue that exceeds ones cost in the first year or more. But it is not to say it cannot be done. (I have just returned from Fortune/ US State Department Global Mentorship Programme in the US. One of my mentors was Meredith Whitney, previously the MD of Oppenheimer and Co, leading investment bank and full-service investment firm that provides financial services and advice to high net worth investors, individuals, businesses and institutions. From Day 1, she was a ‘millionaire’. A large portion of clients and her key staff members went with her when she started her company last year. No restraint of trade. I can’t see many of us getting away with that in South Africa.
v One missing part of my entrepreneurship project on the business plan during my MBA was the 5 – year forecast. I managed to do a one year forecast. In the real world, I didn’t get to meet even my first year’s projections. Things just changed – just like that after building a very healthy pipeline and getting commitments. During a recession, you do not only take into account long sales cycles and seasonality, but you have to take into account your target markets’ ones as well. Then look for gaps that you may not have seen.
3. You fantasise about building widgets as a knowledge business.
v The expensive, but most accepted and successful model is when local companies use foreign brands and intellectual properties for their businesses. It is sad, but true. I believe it is another unconscious sign of our lack of confidence in ourselves and our own intellectual capital. We couch in rationalizations of experience and track record. But where would these foreign brands be if their own countries never gave them the chance in the first place? This is definitely the struggle of this generation. To be able to build entities from scratch, not just buying into existing companies as in the BEE model and to be given the chance to fail and succeed in building brands and companies that can compete globally overtime. Sadly, my first client was a Zimbabwean business man who runs a continental business. Fortunately for me, he ‘fought’ for me to get the opportunity with his EXCO and Board. And was very happy with the results. I say sadly because it was not a business person or leader in my country who went to bat for me. But thank goodness for such guardian angels!
v My reality has also been the expectation and reception of what type of an advisory and consulting firm I should have as a black person – marketing, advertising, HR, BEE, Transformation, accounting and auditing. Black people have the ability to begin businesses of expertise beyond the “usual suspects” of businesses and specializations that have become the norm. Busara Leadership Partners’ competitors are also not our competitors. These are global firms. They do not pursue business below a particular threshold. There is a niche that is available for us to occupy. Coupled with my age, gender and race (triple shock), I am not expected to be in the corporate governance field either especially as this is seen as the territory of law firms and, business schools and the Institute of Directors (IOD). However, if the naysayers did listen and look at the value proposition, they would see that our services are on a personalised, tailor-made basis. That is our niche. We are about the mindset change with respect to corporate governance, not compliance. By the time you know whether you comply or not, it may be too late. Ask BP and Goldman Sachs.
v Our goal in Busara Integrated Governance is to have a strong research capability and to monetize our ideas and knowledge. But we know that it will take resources (time, financial and human). My belief is borrowed from Franklin Covey (foreign brand, you must certainly know these statements): “Begin with the end in mind. But do first thing first”.
4. Choosing the right partners is 95% of the work. This quote captures this perfectly. “Successful companies are started and made successful, by at least two and usually more soul mates”. It is very important that you share similar values and definitions of those values, work ethic, have complementary management styles and believe in conflict resolution which will be needed at some point without believing that conflict is the end of the relationship. Constructive conflict is positive and creative. Always focus on the issue and not try to play the person. Aim to protect relationships rather than to always be right.
5. You will constantly be relooking and refining your value proposition. “Think Big. Set your sights high and strive for something grand. Shoot for doing things at least ten times better than the status quo”.
6. The age of islands is fast disappearing. During the boom times there was money flowing everywhere. During these lean times, we need to be smart in working with and through alliances. Ethics are very important. Break the golden rule, you will be burnt - if not now, somewhere down the line. It is not a sustainable strategy to build a business. Small companies need to work together and to sell and promote each other’s businesses. Work out referral fees. But fencing yourself off and hoping to make it solely on your own will not get you very far. Even big corporate have entered the Age of Co-opetition where you find areas of synergies with your competitors and work together to ensure both your survival.
7. Bootstrapping is the way. One of the hallmarks of bootstrapping is to get your product or service immediately to market. Pick your battles. Positioning against the leaders or the standard ways of doing business is one way of getting an ear because people have a clear picture already. Your challenge is then to articulate your difference so that they get it. That is our ongoing challenge.
8. Dare to be different. Do it your way. Our goal in our company is to achieve our dreams and a particular lifestyle. Because then what is it all for if not to enjoy our lives? We eat to live not live to eat. We only have one life. We do not want to have regrets for focusing only on making money and not enjoying our families, friends and our world.
9. It is still important for me to create a service and products that make the world a better place. The challenge is always about how to make money and a sustainable business model. Meaning that you create for yourself is your biggest motivator.
10. Laugh a lot. And have a great support network around you. Never look down at anyone you meet even a beggar. Remember that “The toes you step on today, may be the feet you kiss tomorrow”. So play it safe and treat everybody with respect and dignity. Tomorrow you may walk into an office and find out that the person you treated badly is the decision maker on whether you get the business or not. You just never know.
v Develop ambassadors for your business. I actively communicate with individuals, share with them my vision and the profile of the company and request their active assistance in looking out for opportunities and spreading the word about our company.
v Board of Advisors not just the company’s board of directors. I have been fortunate at the access that I have. They are solely for business inspiration and guidance not for getting business that you are not qualified to get and deliver on. Go beyond your age, race and sex. Diversity is definitely the key to the quality of your thinking, creativity and innovation.
And congratulations for having started the journey. The very best to you!!