THE JOURNEY CONTINUES... The

story of growing a small businessStart Up 2Start Up 2

Come see what we’ve been up to...

Dear Reader

Welcome! So you’ve started a business and you’re working hard to grow it to its full potential. Or perhaps you’re still planning to start a business and are trying to get as much information as you can. Either way, I congratulate you! We need people like you to help build the economy of our country.

Starting your own small business is a big decision. It takes commitment, creativity and a lot of hard work. But keeping it going, managing it, and growing it into a solid, sustainable business... that’s the real challenge!

Statistics vary, but most researchers agree that up to 60% of small businesses fail within the first three years of their existence. Some typical reasons for small business failure include: lack of experience, lack of research, lack of planning, lack of innovation, lack of finance, competition, or even growing too quickly. Most of these are things you can control with the right information, knowledge and planning.

Following the success and popularity of Start Up 1, which looks at the basics of starting a very small business, seda now brings you Start Up 2, which looks at issues of growing and consolidating a new small business.

We’re sure you’ll recognise the challenges that Vuyo and Dudu face as they struggle to manage and grow their small businesses: managing tenders, managing cash flow, marketing and promotion, scheduling production, record-keeping, planning for business growth, applying for finance, partnerships and joint ventures, and how to take advantage of the opportunities of BBBEE.

Reading about their experiences, you’ll find yourself learning all sorts of new information and skills, getting new ideas, and thinking about new ways to manage and grow your own businesses. We encourage you to take the next step and download the Start Up 2 Guide from our website (www.seda.org.za), or get a free copy from your nearest seda branch (see page 31 for provincial office contact details) or Enterprise Information Centre - EIC. Good luck in your business.

Mr Thandile Gubevu, Executive Manager: Products & Services

Mr Langa, your current loan is in arrears. We can’t help

you. I’m sorry, man.

Hey, Thabang, how’re you? I need you here, man!

Sorry, man, Vuyo. This pneumonia is killing me.

What’s this!

They are threatening to blacklist you, man!

What’s gonna happen about our salaries this

month?

Listen, laaitie. Two weeks. Understand?

Two weeks!

CHAPTER

t1

t2

LANGA INC.& ASSOCIATES

Four years ago, Mam’Langa started a fruit & vegetable hawking business with the help of her neice, Dudu, and her son, Vuyo (see Start Up 1). She has been very successful and now owns and manages Langa Wholesale, with the help of husband, Wilson.

Mam’Langa

Bab’Langa

Four years ago, Vuyo started a small welding business withhis friend Thabang.

Eighteen months ago, their cc, Metal Creations, won a tender from the local council. They thought they had it made!

Vuyo married his school sweetheart, Khensani, and they soon had a child.

Khensani

Vuyo Langa

Moss Tau Thabang

Lindiwe

Tau is a small business

consultant. He helped

Mam’Langa to grow her

business, and now he is

helping Vuyo and Thabang

to develop a strategic plan

for their business.

Tau’s cc, Small Business Opportunity Centre, is also an accredited seda EIC

(Entrepreneurship Information Centre).

Thabang is Vuyo’s partner.

He is HIV positive and not

yet on ARVs. As a result,

he is often off work.

Lindi started at D.Com as a

volunteer. She soon became

Dudu’s assistant, and it

looks like further promotion

is coming her way...

Copyright © 2007JASA & seda

Start Up 2 is published by Junior Achievement South Africa &

Small Enterprise Development Agency

ISBN 0-9583890-6-3

No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, or by photocopying, recording or microfilming, or stored in any retrieval system, without the written permision of the publishers.

Start Up 2

Abdul RajahJunior Achievement SAPO Box 61540Marshalltown - 2107Tel: (011) 832-2632Fax: (011) 832-2637Email: abdul@jasa.co.za

John Francisseda

PO Box 56714Arcadia - 0007

Tel: (012) 441-1259Fax: (012) 441-2150

Email: jfrancis@seda.org.za

Start Up 2 was produced by STORYWORKS. Research and writing by Andre Croucamp, Neil Verlaque-Napper and Dale Morris, illustration by Vusi Malindi. Email: storyworks@icon.co.za

Dudu LangaDudu has turned her passion for helping people into a highly

successful business. After volunteering at a business services centre, she opened D.Com, an Internet Cafe,

in her local township. In Start Up 2 we see her and her assistant,

Lindi, opening a second Internet Cafe in town.

t3

I’ve told you before, Vuyo... You cannot just spend all your money on your lifestyle. You must put some profits back into growing your business.

Ja, Ma, but...

Do you want to be successful for a few months only...

... or for your whole life?

Like that big Plasma TV! Was it really

necessary?

You and Khensi must realise that the lifestyle you dream about comes from

planning not spending.

Vuyo, I am not going to give you a loan... again!

But, Ma, I thought the government tender would

be repeated...

What you need, my boy, is a strategic plan.

We’ll pay for the services of a business consultant who really helped me with this business.

People think a loan will solve their

problems! You need someone to help you make better use of the resources you

already have.

Ma, there’ll be a big problem if I don’t get money in the next

two weeks...

What... someone who’s gonna control my business?

Your Mom is right, Vuyo! A business consultant will help you control your

business much better.

Contact Tau. You won’t regret it. He’s connected to government agencies like the dti, seda... and he’s very well networked with businesses in this town.

Please drop this at Dudu’s on your way?

Don’t worry, son. Your business will

come right.I understand, Ma.

t4

Thanx, Vuyo.

Dudu, I’ve been thinking of getting a business consultant, you know, for a bit of business

planning...

Business planning is essential. But with

consultants you have to be careful. Some are

good, some are just skelms.

I’ve seen many of my customers frustrated by

consultants, but often-times it’s because they don’t know what they want

themselves.

So, what should I look for in a consultant?

You need to find someone who is really interested in helping you make your business work. Don’t get a consultant who offers to do your Business Plan for you. Get one who offers to do it together with you.

I hate paper work.

It’s worth the effort. I’ve just been through a business planning exercise myself. It’s so exciting… holding so

many ideas together at once… seeing how they all work together

to make your business grow.

I encourage my clients to ask some questions to evaluate their consultant. I have a list I can email you...

Ja, I think I should do it.

Dudu, you know I don’t have a email.

Vuyo, you need to get connected, man! I’ll get you a copy.

Be clear about what you want, and be open about

your needs.

I just need him to get me some money!

Hey, Vuyo! Are you coming to the Business Forum tomorrow? Come

and network!

QUESTIONS TO EVALUATE

A BUSINESS CONSULTANT

✸ Howdidyoubecomea

businessadvisor?✸Whattrainingandqualificationsdoyouhave?

✸ Whataresomeofthebusinessesyouhaveworkedwith?

✸ Whohaveyouhelpedaccessfinance?

✸ Whatistheframeworkyou

operatefrom?✸Doyouhaveateamordo

youworkalone?

Just be patient.

t5

Dudu, please talk to Mr. Tsedu.

I’ve been waiting for almost half an hour to get

to a computer! I’ve got other things to do...

I’m sorry Mr. Tsedu. It’s school holidays... Let me

see what we can do.

These kids are taking up time on

dating sites!

Lindiwe, they have paid for their time.

We can’t kick them off.

Thenextday...

Mr. Tsedu, you can be on in 10 minutes. Otherwise, we can make a booking for you. One hour free for the inconvenience.

Are you taking bookings now?

Only for our regular customers, like you,

Mr. Tsedu.

So, we’re doing bookings now?

The customer is King!

We’re getting more popular. We need more computers,

more space!

I know. I’ve been working on a plan... You’ll see.

Mmm. Sounds mysterious.

Listen, I’m going to town for while. Please make sure everything is ready for tonight’s Business Forum.

Is this about your mystery plan?

Later!

Okay, Dudu, think positive!

t6

So, Ms Langa, the purpose of this loan is to open another Internet Café...

Your Business Profile shows that you have been running a smaller Internet Café for almost two years...

I really admire your vision. ICT is so crucial for our

community.

Thank you. Yes, it is. The demand for information in the township is amazing.

And now I see huge potential in the CBD to service the small business

sector.

Well, it seems all your documents are in order. We’ll need time to go through your Business Plan and all your financial statements. We’ll also have to do a credit check.

The bank expects businesses to show commitment to their projects by putting up front at least 10% of the money themselves.

Yes, I know about that. I’ve saved enough to cover

the 10%.

Ms. Langa, what about collateral?

Do you mean like some kinda

security?

Yes, something of value, like property or technology, that the bank could possess if the person can no longer repay the loan.

Well, we have our computers, fax and photocopy machines. They are second-hand but they are all paid off.

Okay, good. We’ll have to assess their value as security.

Have you thought about buying a business space,

rather than renting?

I don’t really want the responsibility of owning business property... not now anyway...

Yes, buying is a big decision. But it can make sense if you see yourself staying in the same place for a long time.

Ms. Langa, this is a very strong proposal and it is very

professionally presented.

Thank you. We put in a

lot of time and effort.

Thank you! We’ll be in touch...

Yes.

t7

Charlene, thanks again for all your help. The bank was impressed.

You go, girl! It was all your work, your vision.

I just wanted to formally thank seda for subsidising

the cost of the business consultant who helped me

with the Business Plan.

Our pleasure. You are exactly the type of entrepreneur that

seda wants to help.

By the way, who will be managing the old

Internet Café?

You remember Lindiwe, my assistant, who started as a volunteer? She will manage it, but I haven’t told her yet.

I remember. You’ve always spoken very highly of her. How are you going to structure the

arrangement?

How do you mean?

Such loyalty and responsibility can be rewarded with equity – shares

in the business. You could start by offering her a performance bonus, with the promise of shares after a

year if she continues to bring in profits for

the business.

I like that. I’ll call you tomorrow to discuss… I’m running late for our Forum meeting. Gotta go! Bye.

15minuteslater…

… Government is spending billions of Rand every year to create better economic

opportunities for SMMEs…

… Micro-finance Apex Fund provides affordable finance for

micro business owners…

… skills support programmes in all sectors, as well as grants to

access these programmes…

… also provide investment grants to small

enterprises who have qualifying assets…

… opening up export opportunities for small enterprises…

It’s difficult to get info on Government Tenders…

… National Procurement System on-line…

Through govt agencies like seda, we’re also making sure that there are business development services to

help you take advantage of these opportunities.

Great turnout! Thanks for organising

everything.

Thanks. So, where have you been? You’re looking very pleased

with yourself…

t8

Listen, I must just tell you, I only called you ‘cause my mother thinks I need help with business planning.

And I know you’re gonna tell me I must

keep my business money separate

from my personal money...

Well, first I want to congratulate

you!

What! Why?

Do you know how important you are to the economy of this country? Small enterprises contribute 60% of the GDP. I know what courage and commitment it takes to get a small business going. Your business has even helped employ other people.

You need to be congratulated

for that.

I’m sure it hasn’t been easy. So, where are you with your

business planning?

Ja, well. It hasn’t been

easy.

Well, uhh... I did get a Business Plan together once for the council tender, but that’s it.

Vuyo? Hi. I’m Tau.Somedayslater...

Business Plans are not only for getting tenders and raising money. A Business Plan is your guide to help you think about and implement your business strategy.

Business Strategy. I don’t think I’ve got one of those!

Your Business Plan is an ongoing conversation with yourself about

how you are going to make your business

vision a reality.

No disrespect, but I urgently need to pay people: salaries, the bank... and the furniture stores are all over my neck!

Can a Business Plan help me solve all that?

Shoo! That sounds serious.

Let’s solve the immediate problem

first, then we can talk about growing your

business.

CHAPTER

t9

I’ve tried everywhere to get some cash...

And Mom was only offering to pay you!

Before going for outside help, you should always start with what you

already have.

For example, you have a lot

of material lying around. What are you doing

with it?Well... nothing at the moment. It’s left over from the last tender.

That’s money lying around,

Vuyo!

With your talent, there must be some things you can make

and sell quickly.

Later...

It’s still winter. We can make fireplaces.

Making the stuff is easy. Selling it is the hard part!

I need Thabang for the marketing stuff.

Thabang? Who’s Thabang?

He’s my business partner, but he’s off sick a lot of the time. He has

HIV. It’s no secret.

Yes, man, Vuyo. Sometimes HIV can weigh heavily on small business.

By the way... You haven’t told me about yourself. What other businesses have you helped,

besides my Mom?

Good question! I will give you a copy of my CV. It has a list

of my clients.

Feel free to call them and ask

about my work.

t10

Afewdayslater...So you have decided to rent rather than buy...

Yes, at least for now.

There are so many other things I want to do, I don’t want to be tied down to just one type of

business.

Well, we’ve looked at the financial statements of your personal expenditure and at your tax records. They are all in order.

Are you sure that you’ll be able to support yourself with the salary you allocated in

your Business Plan?

Yes. Until the new Internet Café starts paying for itself

I’ll need to make some sacrifices...

I know, in business, one has to be patient.

The rewards will come later.

Obviously, your ability to repay is what interests us most. What if the new

business doesn’t do as well as you’ve planned?

As you know, I’m not closing the other Internet Café, and it’s doing well. I can even pay the

loan from that business.

I must say you’ve planned well. I commend you!

Good news! Your loan has been approved – repayable over 60

months, as you requested.

Thank you so much.

I wish you all the best. I look forward to seeing your vision

taking shape.

We got the loan! Congrats, Dudu! I knew you could

do it.

Now there’s so much work to do. I just

can’t wait.

t11

Your father is going to be happy about

this news.

Yes, Duduzile, my child. We wish you all the best with your business expansion... Just don’t waste the money!

Mom!I wouldn’t have got this far without your

support. Thanx!

So, Vuyo, how’re things going with your business?

Eh! Difficult, man. Thabang has been off sick a lot, and I need him for the marketing. He’s good

with getting customers.

Isn’t he on ARVs yet?

Eh! The clinics are slow. He’s still waiting. And those things are too expensive to buy.

Later...

So, Khensani, have you tried selling your beadwork at the

salon, like we discussed?

Yes, Ma, but people don’t want to pay.

We can’t all be business people!

Khensani, I know what you mean. I’m also not an

entrepreneur, like Mam’Langa. But we support each other.

I think what Mam’Langa is saying is that you have great

talent with your hands.

Your beadwork is beautiful. There should be a big market

for it somewhere.

Bab’Langa, I didn’t see it like that. I really appreciate you and Mam’Langa seeing potential

in me. Thank you, Baba.

Thatweekend...

t12

Hey, Tau!

Thabang, meet Tau, the consultant I told

you about...

Hi. So, you’re going to help us get back on track?

Well, for now I’ve brought a list of potential corporate clients... builders, developers, architects,

en so aan...

Great! I’ll make appointments, and Vuyo and I will go see them

personally.

Eish, these big companies!?

I never thought of them as our kinda

clients!

Sure, you’re a small company, but you make a quality

product. There’s no reason why you can’t approach those

companies for work.

I assume you are fully compliant and that you’re up-to-date with your taxes, etc. You’ll need that.

Ja... I can show you the papers.

I’ll need to get copies of all your registration documents, tax records,

financial statements...

No problem!

t13

Somedayslater...

Thanks, guys. Nothing at the moment, but I’ll

keep your details.

Call us in 6 months; there may be some

work for you.

Sorry, Mr Schoeman is still in a meeting. He can’t see you today.

Okay, next: Moonsamy & Associates Architects.

We’re chowing petrol but we are getting nowhere!

Come on, Vuyo. We must push!

... and we did all the gates and burglar proofs

at the new clinic.

What’s that!? Can I see?

This is my personal stuff - just an experiment for

my gate at home.

Experiment! It’s beautiful.

Serious? I’ve been looking for creativity like this. I don’t

mind paying more.

When can you bring me more designs like this?

Amazing! Your crazy designs are gonna save our butts!

We’re gonna have to move fast!

MAPONYA CONSTRUCTION JANUARY & SONS PROPERTY DEVELOPERS SCHOEMAN ARCHITECTS

Well, in principle, I’m interested.

t14

Earlyonemorning...

Now open your eyes. Can you imagine an Internet Café here?

But how are we going to afford it?

Aah, so this is your

mystery plan?

The bank was impressed. They gave us a loan!

I’ve been working on this for months. Here’s a copy of the

Business Plan with all my research, strategy, projections...

I’m also thinking of getting Alvin and his tech-heads to rent some of the space for

their 2nd hand PCs.

That’s great, Dudu. We work well together, but

they’re just messy!

Wow!

They’ll have to be more professional here ‘cause the

more people buy computers...

... the more people will need our training

services!

You remember when I asked you to speak to our customers about our

service and how we could improver?

Yebo!

Well, I used that info to plan the design of this new space, to better meet our customer needs

and offer a superior service...

There’ll be a separate area for training at the

back...

Fax, photocopying, stationary, binding, and

public phones...

And, of course, Internet and email...

And the other Internet Café?

Are we...

You are going to

manage it!

Wooow!

Does that mean I get a raise?

Actually, I want you to become a

partner.

I love you, Dudu!

But it will have to happen in

stages.

CHAPTER

t15

Lindiwe, I’m going to give you an opportunity to

prove yourself.

What do I need to do?

If your ideas and management can raise

the income of the existing Internet Café

by 7% over 4 months... I will give you half of that 7% as a

performance bonus...

...and if you’ve achieved 3 performance bonuses in the next 12 months, I’ll give you

15% equity.

I can do that. I’ve got so many ideas for attracting

new customers, and...

I know you can do it. And, as from today, I’m going to treat you as my

partner.

But... if the Internet Café loses income, you...

I must expect to sacrifice part of my salary. I know.

You got it! So, I’ll draw up a Memorandum of Agreement.

Sorry I’m late! Nice location! Just on the edge of the CBD.

Yes, and near lots of potential new small

business clients.

Charlene, meet Lindiwe, my assist... No, my partner.

Nice meeting you, finally. This is all so exciting!

Later...... and renting out

some of the space will help your cash flow.

I really want to see Alvin’s business grow. Every one of my clients

is a potential client for him.

Have you thought of going into a partnership with him? You’re offering

him a lot.

Mmm... I must give that some thought.

t16

Somedayslater... Afternoon, Tau.

How are you?

Sharp, Vuyo. Good to see you smiling.

I came to thank you for helping us with all those

contacts. Vani Moonsamy, the architect, has placed two orders already and

paid 50% up front!

We already had most of the materials, so I’ve managed to pay salaries... and pay the most urgent

debts.

Well, I’m happy your short-term crisis is solved.

Now we must focus on developing long-term

strategies to grow your business... sustainably.

That’s why I’m here.

Let’s go back a bit. You said that you got a large tender from the council...

and that is when you rented the factory... and employed Jack and those

other 2 guys...

Ja, the tender was great. I thought we’d hit the jackpot,

and ... Ja...

And you finished that tender almost 2 months ago... and

you have had no real orders since then...

Niks. But the council was very happy with our work. I thought they would give us

more business.

Remember: all govt departments have to be fair and give opportunities to as

many small enterprises as possible. They have

to share out their jobs... Meaning...?

Big companies also put out tenders, and they have to ensure that a certain percentage of

their procurement goes to small enterprise.

Meaning that in order to meet the government’s Broad Based BEE requirements bigger companies have to buy from smaller ones, especially from

black-owned businesses.

But where does one find out about such tenders?

From government Tender Bulletins, newspapers, online...

look at corporate websites... both provincially and nationally.

You talking like Internet stuff? My cousin, Dudu, has been telling me

to get connected or some such. She runs an Internet Café...

Well, she’s right. The Internet is the

best place to find the information you need.

t17

A council-appointed business consultant helped us a lot

with the last tender. He got us registered and he wrote our

business proposal. But I didn’t understand the nitty gritties.

What exactly do we need to quality for these tenders?

Firstly, good quality work. Then, of course, you must

be fully compliant.

You need to be properly registered as a business and registered for tax. I’m covered!

You also need to comply with labour law as regards UIF, as well as employee compensation for disease and injuries. You also need to comply with the code of conduct for health and safety.

Compliance is a way of communicating professionalism...

It shows that you’re serious about business.

Sounds like lots more paperwork!

Herman! Meet Vuyo.

Herman is our legal advisor. He’s retired, but he still helps

us with legal issues.

Dankie, Sisi. Hey, Vuyo. Tau told me about your business. I have a friend, Frik de Beer, who’s looking for a BEE joint venture partner who can make high quality security gates.

Joint venture. I don’t know...

JVs can be a great opportunity,

Vuyo. Both businesses keep

their independence, but join forces to

get new work that neither business

can get on its own…

In the case of a JV between a very small business, like yours, and a bigger, more established business, the small business can learn a lot, develop new skills, access new markets...

I thought this BEE thing was only benefiting the

fat cats...

BEE is not a handout to small black businesses, but it is an opportunity. If you can

perform to professional standards, the doors are wide open... the sky’s the limit!

Just make sure that there is a proper contract

between you…

t18

Meanwhile...

We get these computers 2nd hand from companies that are upgrading…

We give them a few repairs and modifications and then try to sell them… mostly to tertiary students.

We hope to work more with businesses like yours… supplying

computers, networking, maintenance, njalo njalo…

Alvin, how can you guys work in such a tiny space?

Renting space is baie duur. Our business is not

top notch just yet...

How would you like to rent some space in my new Internet

Café in town?

Wow, Dudu! Another Café! What would you charge us?

Okay, I want to open is 6 weeks. I’m gonna need 12 workstations and a powerful server. There’s

money available…

Oh, Dudu my love, how can I thank you. That’s amazing!

Then, of course, I need the network maintained in perfect working condition.

I’m thinking that the maintenance contract is

equal to the rent…

Sounds good! We’re happy to look at that.

You guys need space and, most importantly, you need customers. At my

new place you can get all that.

I’m prepared the help promote your business. I’ll even help develop

your business strategy. You know I believe in

you guys.

Now, in exchange for getting you out of here and helping to expand your business…

I want shares – 25%.

Mmm. That’s something to think about…

I’ve written down some points for you to consider. You don’t have to decide

now. Get some legal advice, and let me know.

Let me talk to the guys. I’m excited!

t19

Onecoldmorning…Tau, morning. Sorry I’m late.

So, Vuyo, what do you want your business to be

like in 5 year’s time?

Eish, 5 years from now! I’m struggling just to put together

my son’s birthday party this weekend. I can’t think about 5

years from now…

The amount of power you have as a businessman is all about how far into the future you are able to plan. You need to be able to imagine what your business will look like in 1, 5 and even 20 years from now. Vuyo, that’s power!

Is that really

necessary?

Okay, you’re planning a party for the weekend. You only have limited time and resources. So

the party will only be as good as your planning. Right?

Now, imagine if you start planning for a party in 12 months’ time. You save up money for a party people will never forget. You do research to get the best venue, the best DJ and the best food and drinks. You invite your buddies. You’re gonna have one killer of a party!

If you can only see one month into the future, then your life is only one month long!

Sure Tau. If I can’t look into the future I can’t put

the things there that I want to achieve…

The long view of things is the best view. When you develop the skills

of projecting into the future you’ll

see that the things you

value in life start to change.

I want you to think about the values that drive your business. Make me a list of

your business’s values.

Business values!?

Here is a list of all our equipment.

What’s this for, Tau?

You can get a grant from the dti for up to 30% of the cost of your

equipment…

You mean money back for the equipment we’ve bought?

Yeah, some money… but there’s lots of documents to submit and it takes ages to get ze moola!

I never knew that.

Government supports small enterprises in many ways. You should look at the dti

and seda websites.

Internet again!

t20

ThatSaturday... How’re things going with

your business consultant?

Tau. He’s great. I’m learning a lot. Did you know

that the dti gives you back money for equipment you’ve bought?

Don’t rely on that, Vuyo. Don’t wait to be rescued by

handouts. You have to rescue yourself.

Yes, Vuyo, it’s better to enjoy the fruit of your own toil. Stand on your own two feet. That’s real

entrepreneurship!

Mom, I’m on track. You’ll see. Just wait.

Dudu, help me out. Tau has ordered me to draft a list of the values of my business… Does a metalwork business have such

things as values?

Mntanasekhaya, just like family and friendship values, you need business values.

These are the things that guide your business decisions. They

are the foundation on which you

build your business.

And they need to be realistic values, like quality, productivity, efficiency, encouraging initiative…

What are your business values, Dudu? Top class

service, customer satisfaction,

empowerment, sustainability, transparency, feedback and

lifelong learning.

Okay, I get it!

Later... Hey, Duduzile, a little something something

for you…

Khensi, this is beautiful. Can I put

it on?

Mfanam’. Just one can! Your Mom won’t see…

No, Pa. Doctor’s orders!

… and they’re going to display some of my work in

their shop.

Great! We must get you a website to show the

whole world your stunning creations.

CHAPTER

t21

Hey, Tau! Did you get my fax of the business

values?

Tuesdaymorning...

Vuyo, I can’t see your points clearly. It’s not professional, man!

I thought it was just a brainstorm…

But is this how you want to present

your business? It should be typed, with your business

name, and printed.

Tell you what. Let’s meet at 5pm at your cousin’s

Internet Café. We’ll work on your document there.

Okay. The address is 25 Mango St.

Askies kanjane Vuyo. Bab’Vee bought new safety

glasses and only 1 litre of paint instead of 2 litres!

Jack, Thabang, what’s all this about?

Vuyo, this helmet was on special. I can’t see much with the old one.

One litre cannot finish the job for Moonsamy. Now

where we gonna get money to buy more paint. We need to finish today!

It’s okay, guys. We’ll use the little cash I kept on the side for emergencies.

Jack, for us now, saving is a

priority.

I understand, but safety is also a

priority.

For me the priority is our client. We must

deliver on time!

Nobody said anything about delivering tomorrow.

See, there is no proper communication…

Still, delivery is critical for marketing. It’s an

opportunity to impress the client.

Anyway, Vuyo, you promised to replace that welding helmet

last month.

Okay, guys. I’ll go and buy paint. Let’s just concentrate on finishing

the gates.

Workflow!

Cash flow!Scheduling!

Communication!

Like Tau and them keep saying about planning:

I’ve got to get my house in order!

t22

Thatevening…

Is that yours, Ma?

Yebo ‘fana. I designed the letterhead myself to show what my business is all about –

delicious homemade food.

But did she do that all herself… on that

computer?

You sound surprised, Vuyo.

Why?

Ma’Bonolo has also produced a business card, promotional flyers, an email template… even

a T-shirt design.

Our computer training courses are

very practical.

Hi, I’m Moss Tau. You must be Vuyo’s

cousin, Dudu?

Hi. You meeting Vuyo? I was wondering

why he’s here!

Yes, Vuyo is typing up a business assignment…

Vuyo type! You joking?

Tau, look! I want something like this for my business!

Come on a training course, Vuyo, and you’ll be able

to do that yourself.

One of your learners did this?

Yes, after only 8 sessions! This is one of our most popular courses. In fact, I’m opening a new Internet Café in

town next month.

I’m impressed. Here’s my card. I run a business consultancy in town that is also a seda

EIC.

Would you be interested in giving introductory talks on computers and the Internet at our entrepreneurship

courses?

t23

Laterthatweek…Wow, Dudu, what a

place you’ve got here!

Thanks, guys! Come check out your new space…

You must tell me what basic fittings you need and where

you want power points…

It’s so big!

We can put up display shelves here to promote your products for sale.

Dudu, this is truly amazing.

I’ll be with you in a sec…

I can see you’re busy. Dudu. We’re extremely excited to take up your offer. As you suggested, we got legal advice… and we think 25% is too much. Ah… I don’t know…

I want you here. Your products and services

add value to the Café. But you guys lack

business experience. I can help with that,

but to make it worth my

efforts…

20%. Okay, Alvin. Deal! But you must know that I’m worth

more...

Sorry, sister. We got a big problem here!

Later...

Right! Goodbye!

This landlord is horrible! He expects me to replace his

madala geyser!

I’ve never seen you this angry before.

This whole thing is driving me nuts. It’s too much. I don’t know how I’m gonna manage all this.

Dudu, you’ve got to look after yourself. Take some

time…

I can’t. It’s VAT submission next

week… Ooh!Let me start with the books. I’ve

seen how you do it. Go and relax with Thabi.

Hi, Lerato!

You home early. That’s nice.

t24

Earlythefollowingweek...20 mins! Sure, we’re here…

Frik de Beer is coming. We must get

this place tidy!

Why must we jump for him?

This can be business for us.

So, are we going to work under

him now?

Later...We must be careful not to take on more work than we can handle.

Hi, mense! Lekker business you’ve got here!

Mr Frikkie! Here already…

Aangename kennis.

Let me be straight. I’ve had my own business for 20 years, specialising in electric gates, fences and roller doors.

But now I battle to get jobs I used to get – because of

my low BEE points.

So, I’m looking for a black supplier of security gates. Wanneer ek van julle koop,

my BEE points go up.

BEE aside, here we take pride in our work…

Goed! ‘Cos I’m not just looking for black names.

If I have to do this, I want to work together with people who can

deliver the goods. How many gates can you

make in a week?

That depends on what you need. We are busy with a big

job for some architects...

Architects! Daai mense kan jou van

jou kop af maak!

Anhourlater…

Passop! It’s wet.

Why is there grease on the

hinges and lock?

Most people cover the locks with tape before spray

painting. I use grease and just wipe it off after… It

saves time.

Fascinating.

Jack’s a master! He’s been making gates for

longer…

Longer than you’ve been alive!

t25

I’m very fussy about standards…

There’s nothing wrong with our work!

Nee, not your work. It’s just your space… It’s a bit difficult to move in. And these wires

can be dangerous, hey!

Have you guys heard of the ISO?

ISO?

ISO lists the recognised standards for things like

quality and safety. If you like, you can come to my factory

and I’ll show you how I’ve set everything up to ISO

standards.

This is good quality work. I like what I see.

You know... maybe I can pass you guys some of the jobs that are too small for my company... for a small

commission, of course.

If things go well, we can think of some joint ventures in the future.

One step at a time, hey?

Ja, let’s see how we work together, you

know.

We’re ready when you are. And, ja, we’d like to visit your

factory… see that ISO stuff.

Do you trust leburu lena?

Bab’Vilakazi, Frik can give us plenty of work and

help us grow.

You sure he’s not just looking after himself?

Well… He’s offered to sell us materials at his bulk buying

cost – no mark-up.

He’s also offered us a second hand invertor welding machine that we

can pay off at no interest over 6 months…

Serious!

Se-ri-yas!

Totsiens!

t26

Overthefollowingweeksandmonths,bothDudu’sandVuyo’sbusinessesgrow.Ofcourse,therearemanychallengesalongtheway,butit’snottoolongbeforetheystarttoseeresults...

Hey, Dudu, tight pamphlet! And you’ve included us.

Cool, man.

I told you I’d make you famous.

Ja, I attract them with services they know, like fax

and photocopy…

So this is how you pull them in…

...then I offer them vouchers for free time on the Internet… help

them find what they’re interested in… and they

are hooked!

Meanwhile...What did your market

research find?

People want a proper catalogue with pictures and prices, not just

loose photographs.

We should also give each of our designs a fancy name.

I can speak to the seda branch in the city and recommend that

they issue a voucher for the development of promotional

materials…

I didn’t know they did that? How much can we ask for?

The voucher will be worth about R4 000. You will need to choose from a list of accredited service providers.

Your chances of getting the voucher will improve

if you can show them that you have a proper marketing plan.

How far are you with that part of your Business Plan?

I’m working on it. I never realised how important the skill of writing

is to growing a business!

So, when you opening?

Monday. Come and see when you have a moment.

We’ll be offering discounts to local

businesses for the first month.

Aeei, me too old for Internet, hey!

So, you’re still banking the old fashioned way?

CHAPTER

t27

AtFrik’sfactory...Why are these lines

on the floor?

They indicate pathways that are a safe distance from

machinery. No cables must touch those lines.

Is that part of ISO?

Ja, the International Standards

Organisation has a list of internationally recognised standards for things like safety, quality, efficiency, compatibility of

equipment and cost…Ja… and if your business

is ISO compliant, customers and partners immediately know your business is professional.

So, they are like guidelines?

Jack, we must do something similar at our

workshop.

You guys can join us when we do ISO

training.

I’ve planned my factory floor so that materials move the shortest distance between any two points in the production process. Anything that moves against this flow wastes time and increases the risk of accidents.

I’ve been reading about how to create more efficient

workflow processes…

Speaking about workflow, that order from the car rental company has been

confirmed. Come, let’s discuss delivery dates…

Many of your clients are already online. More and more, email and Internet are the accepted ways of communication…

You can market your business through a website, through linking your website to other

websites, and through sending emails.

You know that business is all about making the right connections and having the right networks…

Internet helps you make more connections.

You can also use the Internet to educate yourself. There are thousands of useful courses, databases,

libraries and newsgroups from all around the world where you can get info on any topic of interest for

work or recreation.

I’m a bit nervous about computers. How do I get started?

The best way to learn is to experiment and play with it. It is very difficult to

do any damage.

Thank you, Ms Langa. If any of you have been inspired…

I know I have…

D.com offers excellent service and Internet training courses…

Meanwhile...

t28

Someweekslater...

Wow, guys, what a transformation!

How’s the work going for Frik?

We’re working 24/7 to finish on time.

Excellent! Then you can keep track of

each order.

Some of the things we’ve picked up from Frik have made us more

efficient… but I’m still worried about completing all these jobs

on time.

It can be useful to calculate the total number of hours needed to

complete each process…

… and not forgetting time for site visits.

Good point. Then, once you know how long each process will take, you can be more accurate

about delivery. You can also see if you need more staff, or more training…

Alvin, this is Jakes. He needs advice on purchasing a PC.

Meanwhile...First, just tell me; I’ve heard it’s very expensive to buy computer

programmes… the software…

It can be. But here we promote Open Source software. There are free programmes for almost all a person’s needs…

Dudu, look! I’ve got an email!

A Craft Fair in Cape Town. They’re inviting me to exhibit my work!

Can you believe it!

See… Who knows what email you’ll get next. Excited for you!

But how will I afford to go…?

You can apply to the dti, or provincial govt… There are many organisations

that can help…

Frik suggested we write out the workflow process step-by step… from receiving an order, to purchasing materials, to manufacturing the order, to quality control, delivery and invoicing.

t29

Hey Tau, sorry to disturb. I’m working on my marketing plan, and I wanted

to check something with you…

Shoot!

How do I understand Return on Investment as regards

marketing costs?

Okay. You spend money on marketing, right? Phone calls,

petrol, time visiting clients, even time spent developing your

marketing strategy…

Sure, but I haven’t exactly been recording

all those hours.

You need to record that time and all direct costs.

Only by calculating those costs and comparing them to sales can you see what your ROI is. For example,

you spend R100 on marketing to get R1 000

of sales.

Got it!

Cool! By the way, I hear Thabang was off sick again. You should have organised

ARVs by now.

Are you saying the business should be paying for his

ARVs?

Think about it.What will your return be on

that investment?

Oneevening... Place is pumping!

Ziyabuya! My ideas for attracting scholars and tertiary students are

really paying off.

I’ve made a list of websites for all the regular

school projects…

I saw your figures. You’re well on your way

to earning that performance bonus!

Amazing things are happening with our volunteers… You remember how Siswe helped Ma’Bonolo with her

business proposal?

Sure.

I’ve been thinking: there are many older women with small businesses who struggle to write down their business

ideas. This blocks them from applying for

tenders, for funding, etc…

But if I can put them together with

unemployed graduates who have writing

skills…

I love it, real community development!

Like you always say:

Entrepreneurship is not just about

making money; it’s also about social

innovation…

t30

Manyweekslater...Thanks to you, Frikkie, man!

I really enjoyed working with julle kerels!

So, where to from here, Frik?

It was tough, but we learnt a lot.

Your work looks great, guys, and we met all our

deadlines. Congrats!

I’d like us to look at a Joint Venture to go after some serious

government work…

This JV is new for us, but we want to learn. So we need to be fully involved in all project management meetings and participate in decision-making.

Ja, nee, Fuyo! I like your attitude. I’ll get my legal guys to draw up some papers we

can look at, okay?

11weeksafteropening...

You didn’t do as much training as you expected…

But at least Internet time, printing and copying are all higher than

you projected in your Business Plan.

Hey, wena! Training has been slow, but now our courses are booked

up ‘till December.

Ja, the evenings are the busiest. There are so

many people passing… It’s great for business.

So, some higher, some lower, but in balance it looks like we’ll reach your projected income for the first

three months.

Ja, it’s a huge relief. I don’t like being in debt. But I’m much more confident.

I can see the path ahead clearly now…

So, Dudu, when can we have a formal opening. I wanna have some fun! You also need to party a bit…

Get yourself a pretty dress!

t31

KWAZULU NATALProvincial Office DurbanSuite 205, Ascot Park3 Ascot StreetGreyvilleDurban - 4001(031) 308 6300 (T)(031) 309 6069 (F)

MPUMALANGAProvincial Office Nelspruit Suite 102Bi-water Building 16 Brander StreetNelspruit - 1200(013) 755 6046/7 (T)(013) 755 6043 (F)

WESTERN CAPEProvincial Office Cape TownN1 HouseNeels Bothma StreetGoodwood - 7460(021) 596 1300 (T)(021) 595 1253 (F)

LIMPOPOProvincial Office Polokwane 2nd Floor, Suite 5Maneo Building73 Biccard StreetPolokwane - 0699(015) 397 4022 (T)

NORTHERN CAPEProvincial Office Kimberley13 Bishops AvenueSanlam BuildingKimberly - 8301(053) 839 5700 (T)(053) 839 5711 (F)

NORTWESTProvincial Office MafikengSuite 201, ABSA HouseUniversity DriveMmabatho - 2735(018) 384 0393/4/5 (T)(018) 384 0397 (F)

FREE STATEProvincial OfficeBloemfonteinBlock B, 1st FloorTelkom BuildingNelson Mandela Road Bloemfontein - 9300051 411 3820 (T)051 444 4267 (T)051 444 4235 (F)

EASTERN CAPEProvincial Office BishoGlobal Life CentrePhalo AvenueBisho - 5605040 635 0555 (T)040 635 0565 (F)

GAUTENGseda TshwanePretoriaBuilding GThe dti Campus77 Meintjies Str.Sunnyside - 0002012 441 1100 (T)012 441 2212 (F)

PROVINCIAL OFFICES

t32

Dudu, do you remember, three years ago, when you came to our offices? You knew nothing

about computers then… Now look!

I want to thank you, Moss. You’ve turned my boy around.

He’s a man now!

I know. Sometimes I can’t believe it myself. You got me

started, Charlene…

Mama, he’s got some of your Midas touch. He just needed

a little structure.

Thabang! You’re looking great, man!

You’re looking pretty fine too Lindi…

That dress!

We are actually thinking along those lines… I’m so

proud of her!

Have you thought of accrediting D.com as a seda

service provider? She’s a natural trainer…

We are so happy for you children…

t33

Ngiyakutshela, Tau, next of next year I’ll be having a party bigger than this… in my new factory… bigger than Friks!

Don’t worry, Vuyo, you’ll get there…

By the way, who’s that guy hanging around Dudu?

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