Though capital remains a challenge, the New Generation of Entrepreneurs find solutions rather than be hindered by the lack of capital. Also as a Strategist and Business Advisor, I have been observing and have been exposed to the challenges businesses face to appreciate that the survival of companies depends on having large quantities of cash to burn. So that even when businesses are messing up, it does not lead to insolvency as quickly as it could a business that lacks cash even though better run. Cash remains Queen!<\/p>\n
Having started Busara Leadership Partners in 2009, it is sad to see how many of my peers who established companies over the years, have gone back to full time employment or are experiencing challenging times that they are afraid of what the future holds. I am not resting on any laurels myself.\u00a0<\/span><\/p>\n Entrepreneurship is really not for Sissies. It is tough as much as it is enjoyable when you are living your purpose and have a passion for what you do. What entrepreneurs need to survive are existing clients, who are profitable. A healthy pipeline. Low overheads. Clients that pay timeously. That are diversified so that your revenue is not dependent on one or two clients making your business too vulnerable to their vulnerabilities. Processes and systems that help you to deliver and service clients effectively. And to continuously ensure that you have a value proposition that clients are attracted to and are willing to pay for. The majority of what makes businesses survive is more about the business and management skills than about Capital. And entrepreneurs need to learn to get this help for themselves and their businesses if they want to build and maintain profitable businesses. <\/span><\/p>\n In South Africa we are going overboard with the concept of Mentorship. Mentors are not necessarily Strategists and Business Advisors. In order to make money, we also need to spend money as entrepreneurs. It is amazing how we will shell out money to buy expensive brands to wear and drive, attend concerts and events of international speakers, but want freebies to attend seminars with local experts if we even bother to want to attend. We want advice for free over coffee. Would you request coffee with Partners of the Global Consulting firms and suck knowledge and advice from them for free? Why do it to a local or a small firm? Were these global firms not small once upon a time? Would they have become who they are if everyone just milked them for free? Expecting free advice can border on abuse and lack of respect for other people’s expertise, skills and knowledge. If you don\u2019t value other people’s businesses, why should your business be valued?<\/span><\/p>\n I truly found the Middle East inspirational in many ways on my last trip in 2015. The most distinctive difference I felt is how small businesses are doing business with other small businesses. How they are experts in everything and even small businesses are conscious of their own shortcomings and use external expertise to build their own capabilities. I did not get the overwhelming sense of big brands and the multinationals that we are obsessed with in South Africa because we believe they equal quality, competence and better skill. No matter how many of these big brands get embroiled in bad corporate governance scandals and financial crises, we are too risk averse and lack imagination to realise that the brands conceal much and do not always give the best service and brain power. Brands are made by people. People are not constant. So the founder\/s may embody the aspirational characteristics of the brand, but others may not. But overtime, we become blind and less objective in evaluating the true value of the people and their skills. Having started my career in advertising, I truly appreciate the work that is put into building a brand. So am not naive to its blinding effects.<\/span><\/p>\n Our entrepreneurial landscape will change vastly when we wean ourselves from big brand propaganda. Job creation and the growth of our economy is dependent on small businesses multiplying. Not on conglomerates which shed jobs under the guise of efficiency. Our economy will grow when we value business and management skills to seek them and to pay for them in order to continually develop and renew strategies that ensure the growth and profitability of our businesses – small and large. Sharpening the saw is an annual affair. A business plan is not the be all and end all. It is just the beginning. You need to work at your company’s strategy every day and have an annual interrogative session of your thinking and to infuse outside help to remove your blindspots. When we hold on too tight to our own ideas, strategies, thoughts and plans, we risk killing the very business that we love. Diversity of thought is useful to a one person business as much as a conglomerate. Love your business enough to get external input – before it is too late. And know that to make money, you must spend money!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Though capital remains a challenge, the New Generation of Entrepreneurs find solutions rather than be hindered by the lack of capital. Also as a Strategist and Business Advisor, I have been observing and have been exposed to the challenges businesses face to appreciate that the survival of companies depends on having large quantities of cash to burn. 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