South African insurance company, Coface and enterprise development company, The Transformation Legacy, co-developed an enterprise development programme that has led to a 35% revenue growth rate for a small black-owned business called VVKBD financial services.

The four phased programme which focused on business diagnosis and assessment, personal development assessments, business mentorship and coaching as well as, business skills training and workshops, enabled financial service provider to develop entrepreneurial skills to grow their brokerage firm, gain access to business development support and tools that position the SME for growth.

“As an entrepreneur it becomes lonely and one tends to run out of ideas, with the support received from the programme through the workshops and mentorship, I have realised things that still need my attention. Things like succession planning, documenting certain processes in the business have been eye openers for me as I did not realize the importance of having these things in place in the business,” said Vusumuzi Marule, founder and CEO of VVKBD Financial Services.

VVKBD is an authorised financial service provider which was established in 2018. Their business offerings include long-term assurance and investment products on risk benefits, estate planning, retirement planning and entrepreneurial investments. Similarly, through their short-term solutions, they offer a bouquet of assurance services on household contents, business, home, commercial and motor plans.

According to Marule, since joining the programme, he has seen significant progress in the performance of the business. The business was able to attract 123 new clients, revive old clients and create jobs for three people.

“Before joining the programme, one of the major challenges we were experiencing was marketing training and materials, getting motivated staff members that I can retain and managing finances and cashflow.”

Using the grant funding received from Coface, the SME has embarked on a rebranding exercise which will enable them to roll-out marketing campaigns and print marketing material as part of the growth market strategy. In addition, all training interventions which were designed and facilitated by The Transformation Legacy, improved the organisations staff engagement, recruitment and selection processes, financial management processes and financial governance as well as, helped shift Marule’s focus from an operational to a strategic role.

Small and medium-sized enterprises (SMEs) play a crucial role in driving economic growth and development in many countries around the world. They are the backbone of many economies and significantly contribute towards creating jobs, driving innovation and entrepreneurship. In many cases, SMEs are the force behind the development of new products and services that can transform industries and improve people's lives.

However, despite the significant role that SMEs play in driving economic growth, they often face significant challenges in terms of accessing the resources and support they need to grow and flourish. For instance, accessing financing, talent, entrepreneurship skills and education, as well as markets, are a struggle for many SMEs, which can limit their ability to compete effectively and grow their businesses.

As such, there is a growing recognition of the importance of evolving the economic system to be more inclusive of SMEs and create an environment that allows them to grow and flourish. This includes creating a more supportive ecosystem that allows all players to thrive and contribute to economic growth.

The importance of successful and sustainable SMEs in the market cannot be overstated. SMEs are critical contributors to the economy, they have the potential to create jobs and new markets. Therefore, by supporting the growth and development of SMEs, we can help to create a more robust and diverse economy that benefits everyone. Moreover, the success of SMEs can bring about more economic contributors by growing future consumers in the market. SMEs often cater to specific niches in the market and are more likely to tailor their products and services to the needs of their customers. This results in the creation of new markets, which can expand the overall consumer base and drive further economic growth.

However, for SMEs to succeed, all parties in the economic ecosystem need to play a role in their growth and development. While SMEs are ultimately responsible for identifying and creating new opportunities for themselves, support from a well-coordinated economic ecosystem goes a long way. For instance, corporates are responsible for giving back through initiatives such as enterprise and supplier development (ESD) for the development and growth of SMEs. ESD initiatives provide SMEs with access to business skills, mentorship, business opportunities and financing, which can help them grow and compete effectively. Furthermore, when an ESD programme has been tailored to meet the needs of an SME, the effect has a long-term impact which sustains the SME way past the point where the ESD initiative has ended.

Government, on the other hand, is responsible for creating an enabling environment that allows both corporate and SMEs to grow. This includes creating policies and regulations that promote entrepreneurship, innovation, and economic growth. By creating a supportive environment for SMEs, governments can help to unlock the potential of small businesses and drive economic growth.

Additionally, another element that is often overlooked is the responsibility of the public in supporting proudly South African businesses. This is crucial for the growth and development of the local economy. When consumers choose to buy products or services from local businesses, they are not only supporting the entrepreneurs behind these ventures, but they are also contributing to job creation and community development. Part of supporting locally developed products, services and innovations also means, making the time to provide business owners with feedback on your personal customer experience, this too, will help a small business grow and refine their service or product so that it meets your needs.  Furthermore, supporting local businesses often means buying products that are unique to South Africa, which can help to showcase the country's diversity and rich culture. Essentially, by rallying around South African businesses, individuals can help to build a more sustainable and prosperous future for the country as a whole.

Therefore, to create an environment that levels the playing field, all role players must do their part and become active participants of the economic ecosystem. This includes creating opportunities that afford SMEs the same opportunities as larger corporations. Often, the tendency is, SMEs are judged for their size and not the expertise they bring. In an effort to defy this narrative, government and corporates should give SMEs a chance to compete for contracts and business opportunities. This will encourage healthy competition and spur innovation, which could benefit the overall economy.

Additionally, business and tax regulations that are sensitive to the journey of an SME play a critical role in creating an enabling environment. Regulations should be designed to encourage entrepreneurship and innovation, and not be overly burdensome for small businesses. By creating a more supportive regulatory environment, SMEs can more easily navigate the challenges they face and focus on growing their businesses.

In summation, SMEs are critical contributors to economic growth and development. By evolving the economic system to be more inclusive of SMEs and creating an environment that allows them to grow and flourish, we can unlock the potential of small businesses and drive economic growth. Further, by creating a supportive ecosystem that allows all ecosystem players to thrive, we can create a more robust and diverse economy that benefits everyone.

Written by: The Transformation Legacy

Email. info@transformationlegacy.com

Website: www.transformationlegacy.com

Tel no. 010 023 0508

• Entrepreneur Busi Raphekwane's business reached the five-year mark in June 2022.
• After great victories, disappointment and failures, Busi has gained wisdom from her entrepreneurial journey.
• She says personal development, saving, hiring the right staff and building your business for longevity contribute to its success.

Starting my own business was one of the best decisions I have ever made, and for me, this is because I’ve had the opportunity to learn, develop and grow in the past five years.

There have been many great moments, celebrations and victories, however, this did not come without equally as many tears, heartbreaking moments and disappointments.

It’s all part of it; building a successful business comes with its fair share of disappointments and failures. These failures ultimately contribute to our growth and success because they leave us with lessons that we can use as future tools as we continue the journey of building our business.

I have certainly had my fair share of hardships and asked myself multiple times whether it was all worth it or if I should just quit while ahead. Every time I get consumed by the hardships and feel I have no strength to continue; I always remember why I started in the first place and tell myself that I will not quit because my business has not achieved its ultimate vision.

The other thing I always think about is that building a legacy-driven business that will outlive me as a founder is a long-term commitment and generally doesn’t happen overnight.

My company turned five in June 2022. I decided to reflect on my journey as an entrepreneur because of what this milestone represents. I’ve come across some information where it mentions that the fifth year anniversary represents long-lasting strength, wisdom and forgiveness.

I certainly agree with that because I’ve become wiser and more resilient as an entrepreneur in the past few years. Running my business has given me great joy and satisfaction because the work I do is aligned to my purpose, however, this journey has also presented many lessons that I will cherish forever.

Taking a look at Small Business Growth Strategies with The Transformation Legacy

Starting a small business takes a lot of courage and work from business owners. So, thinking about growing the business once it has stabilized is something many business owners would rather not think about.

If you are a business owner seeking business growth but unable to take that leap; This article will take you through a couple of different ways to grow your business.

Understand your Customers

The most important part of growing your small business is knowing your customers. You are not growing the business for you; your primary focus should be on your current customer demographic and the demographics you want to attract in future.

Just as you researched your industry when first creating your business plan. This strategy involves researching your customer base to understand their needs and wants. While researching your customers, you have the opportunity to learn about their expectations.

The process of researching your customer base can involve surveys, user reviews and customer interaction. The key is to gather feedback and leverage that to create an effective growth strategy for your business.

Build a Sales Funnel

Having a filled sales funnel will ensure the periodic expansion of your business as well as economic stability. A sales funnel strategy may involve time and money, but it will reap future rewards.

Focus on Customer Service

One of the easiest and most cost-effective approaches to expanding your business is looking inward and improving your current customer experience.

In a world of instant gratification, your customers are looking for companies to provide a great experience. You can grow your business by improving and adding on services internally.

Your current customers can be the gateway to exploring new audiences and converting them into customers. This growth strategy is also a proven way to retain your customers.

Use Social Media

Most businesses presume that their branding strategy is only limited to their customers. But branding is an efficient approach to boost employee morale and confidence.

Networking

Ask for Referrals

At the beginning of your business journey, you will be focused mostly on survival. It’s a good idea at this stage to ask for referrals to double your leads and expand your business. You can start by asking your current customer for referrals.

Growing a sustainable small business in a competitive market is hard work. Correctly measuring and tracking each step’s progress will show you, you are going in the right direction.

It’s the beginning of the year and as you start the new year, you are probably thinking about the year gone by ‘’2020’’; this may have been a good year for you, however for most businesses this was indeed a challenging year. If you’ve had a tough 2020; I suggest you continue reading.

You’re probably asking yourself a few questions as you begin to plan for the new year;

• How do I ensure I have a better year than what I had in 2020?
• How do I gain more clients?
• How do I keep my business afloat?
• How do I improve my competitiveness? 
• How do I maintain or improve my income in a tough economic business environment?
• How do I become even more efficient so that I can make more profit? 

These are all critical questions that are probably going through your mind as you prepare for the new year. You can outline your plans for the new year by answering these pertinent questions.

• How do I ensure I have a better year than what I had in 2020?

In order for you to know how you can have an even better year than what you had in 2020, you first have to start by reflecting on the year you had. Start off by writing all the things that went well for the business and all the things the business managed to achieve. For instance, perhaps you received really good feedback from your clients regarding your quick turnaround time. These are the things that need to be listed as you outline all the things that went particularly well. You may be asking; how does this contribute to making the new year an even better year. Well, you need to take all the things you did really well and detail what made you achieve those results. This is what you’ll carry over to the new year. 

Once you’ve done this, you’ll write down all the things that didn’t go well and the things you had set out to achieve and didn’t do so. When you have written all of this, you will detail what you believe you have learned from this all the things you didn’t do well. Its important to spend time introspecting on the things we didn’t do well, so that we can continue learning and growing our capabilities as a business. This also gives us an opportunity to see what we are leaving behind in 2020 and should not carry over in the new year. The COVID-19 pandemic has taught us all the importance of financial prudency, having a healthy cash flow, diversifying product and service offering and being agile enough to pivot when the business environment changes. Taking into consideration all the lessons learned from the previous year, put in writing how will you do things differently to ensure that your business stays sustainable.

• How do I gain more clients?

This is a question that every entrepreneur is asking particularly during tough economic times. My view is that although people may have less to spend on your products or services; this is the perfect time to create new products or services that speak to the needs of consumers during this particular time. 

There is always an opportunity in every tough situation; as an entrepreneur I would suggest you turnaround this tough time and start asking ‘’what new opportunities has this economic climate created in my industry?’’  For example, if you’re running an accounting bookkeeping business and less people are purchasing your service you could repackage your services by providing budget management services that helps clients to contain their costs instead of just offering standard bookkeeping services. There’s really opportunities in every situation, no matter how tough it may seem to be. This time also gives you an opportunity to diversify your service and product offering to speak to the current needs of your market. It may lead to building a new client base or even penetrating the current client base you currently have.

It is also important to not cut your marketing and sales budget during this time as this is the best time to ramp up your marketing initiatives and improve your market presence so that when the economy picks up again, you are already in the presence of your potential clients minds. If your business has slowed down, use up this time to market your services or products and implement your sales strategy.

• How do I improve my competitiveness? 

To improve your competitiveness, you have to know and understand what your business does really well and to keep improving on that. It is crucial to also communicate this clearly to your market so that they are also aware of it. Constantly understanding the needs of your customers and selling products or services that speak directly to their needs will also improve your business significantly. Every product or service you sell must be driven by the specific needs of your customers. This is a good time to speak to your customers, ask them what they feel you did particularly well and also find out what they believe you can improve on.

As a small business you have an added advantage in comparison to big businesses, as more businesses are looking for agility in their service providers and want to know that they can receive services that speak to their specific needs. Therefore, it places small businesses in an advantageous position in comparison to their corporate counterparts. 

• How do I maintain or improve my income in a tough economic business environment?

Maintaining income means you need to ensure that you keep the same standard and customer service that you have been providing to your clients. When the customer service is maintained, and clients are happy they are likely to continue doing business with you. This is a result of having good systems and processes in place. A good system to invest in during this time is a Customer Relations Management (CRM) system, that will assist with managing clients and ensuring that they are satisfied with the products and services that have received from your business.

This is definitely a time where every business needs to pay close attention to the systems and processes they have in their business and to ensure that they are implemented consistently so that the customer service constantly maintained and improved. 

The use of technology can also improve company productivity which will allow for capacity to sell more products and services. Since most business transactions are conducted online, it’s important to see how your business can meet customer needs using online platforms that can improve the company’s reach. There is an opportunity to reach more customers since more and more consumers are open to buying online.

• How do I become even more efficient so that I can make more profit? 

In order to improve your profitability, start off by developing your strategy for the new year. Once you know what the focus areas for the year are going to be, write down all the resources (financial and non-financial) you are going to need in order to implement this strategy. 

Its important not to cut costs without understanding how that cost relates to you executing your strategy. The costs that should be reduced or even removed are the ones that do not relate to the execution of your strategy in the new year.

When doing this exercise, you will need to look at what costs you really need to incur and which ones you can do without. When operational expenses are driven by strategic objectives, you are likely to maintain efficiency whilst achieving the desired results.

Even though you may have had a tough year, there is an opportunity to make 2021 a great year by having the right strategies in your business. The outcome of every situation really depends on your perception of it. If you want to have a great year, you need to start looking at all the challenges differently, look at them as an opportunity to learn, evolve and reinvent your business.

The Transformation Legacy is on the lookout for black woman-owned businesses in the Green Economy Sector. We will be taking these businesses through an intensive tailor-made Enterprise Supplier Development Programme to help them build sustainable businesses.

In this article, we are taking a look at Green Economy in South Africa, a couple of important Green Economy Sectors in South Africa. As well as how you and your business can be a part of our fantastic programme. 

Green Economy in South Africa

The South African government views green economy as a sustainable development path that addresses the interdependence between economic growth, social protection and natural ecosystems. Their approach is to support green economy programmes through a practical and implementable action plan which highlights the importance of building on existing good processes, programmes, initiatives and indigenous knowledge in key sectors. 

A more formal definition: “A system of economic activities related to the production, distribution and consumption of goods, and services that result in improved human well-being over the long term, while not exposing future generations to significant environmental risks or ecological scarcities.”

It implies the decoupling of resource use and environmental impacts from economic growth. Characterised by substantially increasing investment in green sectors, supported by enabling policy reforms. 

The Green Economy refer to two inter-linked developmental outcomes from the South African economy:

Important Green Economy Sectors

Carbon Footprint Verification

Allowing organisations to measure greenhouse gases emitted while performing their activities. Thus Carbon Footprint Verification can prove the commitment of the organisation to reducing climate change effects. 

It is no longer enough for organisations to merely state that they are eco-friendly and working on building sustainable practices. Carbon Footprint Verification provides organisations with proof of what they are doing for the environment. 

CDP Evaluations

The CDP (formerly the Carbon Disclosure Project) is an organisation based in the United Kingdom which supports companies and cities to disclose the environmental impact of major corporations. 

Since 2002 over 8,400 companies have publicly disclosed environmental information through CDP.

Waste Management

Includes the actions needed to manage waste; From its origin to its final disposal. Waste Management consists of the collection, transport, treatment and disposal of waste, together with monitoring and regulation of the waste management process. 

Waste Management is critical to a Green Economy. As waste is one of the most significant contributors to pollution and the destruction of the environment. 

Development of Green Economy Businesses in Gauteng and Cape-Town

If you or someone you know is a black woman-owned business in carbon footprint verification, CDP Evaluations or Waste Management. Get in touch with The Transformation Legacy to be a part of the programme that will help you grow a sustainable business. 

T: 010 005 5753

E: info@transformationlegacy.com 

Read more about the Green Economy Strategy of South Africa here.

When entrepreneurs start a business, the majority would think about developing a great product or service, ensuring that it is known in the market, exploring how this will generate an income, seeing how the business will grow and sustain its profitability from these products and services, hiring the right people etc. All of these are some of the typical fundamentals that an entrepreneur considers in order to build their business. When you look at some of these; they are all talking to the functions of the business; such as marketing, finance, human resources amongst many others. All of these are critical fundamentals to consider when starting any business with a good foundation.

However, there is one important fundamental that should be considered when an entrepreneur builds a business and that is: ‘’how to do you as an entrepreneur grow yourself to ensure that you remain an asset to your business?’’ sometimes this gets completely ignored. Although this is important; personal growth is often ignored in the process of building a business and may not be considered as a critical aspect of building a solid growing business.

Many might say that finances are the backbone of the business and cash flow the life blood of the business. I believe that the entrepreneur is the ‘’engine’’ of the business. This principle has been practiced many times, when potential investors want to invest in the business; they often say that they do not only look at the potential and performance of the business; what is important to them is the entrepreneur behind that business. This is where the saying: ‘’Bet on the jockey (entrepreneur) not the horse (the business/idea/product)’’ stems from.

As an entrepreneur, you are the most important part of the vehicle called your ‘’business’’, you are the engine that determines the destination of business, its performance, its speed, its effectiveness etc. In all vehicles, the engine is the most valuable asset and without it, the vehicle is worthless and nothing moves. The performance of this vehicle is determined by the quality of its engine and the quality of the engine is determined by how well it’s maintained. Therefore, personal growth can be seen as the process of maintaining the engine of the business as the most critical fundamental in the business. There are three critical things that every entrepreneur should consider to ensure that they remain a valuable asset to their business:

1. Gain an in-depth understanding of who you are

The process of personal growth starts with you getting a good understanding of who you are. This will enable you to know exactly what you bring to your business to make it a success and what you may bring to the business that could become a barrier to its growth. Self-Awareness refers to conscious knowledge of one’s own character, values, strengths, talents, capabilities, vision and desires. Successful entrepreneurs have a good understanding of their strengths and weaknesses and know how to master who they are and harness their inner strengths. This brings tremendous value to the business as the entrepreneur is able to align what the business requires with their strengths and to bring in others in their areas of weakness.

It’s important for every entrepreneur to know that the business resembles the character of the entrepreneur; therefore you need to know what character traits could create a barrier for the growth of the business and which ones would result in exponential growth for your business. If you want your business to succeed, you need to start the process of knowing and understanding yourself.

This can be done using different methods from formal to informal methods:

• You can do a 360 assessment of yourself by asking key people who know you well to give you feedback such as colleagues, clients, family, friends etc.
• There are various profiling tests available online which you can take to assess yourself.
• Spending quiet time regularly to connect with yourself to run through some of the things you are great at and those that require improvement.
• Seeing a mentor or coach is tremendously valuable in the self-awareness process.

2. Set personal development targets

When you know yourself well you are able to identify which areas require outsourcing, improvement, enhancement or advancement. In order for you to start the process of actively growing the most important asset in the business; you need to set development targets which will also incorporate the process you will embark on to develop yourself.

For example, you may know that you have poor people skills and as a result you lose your temper when dealing with difficult clients. You need to review this and decide whether this aspect of the business can be outsourced, improved, enhanced or advanced. If the nature of your business requires that you speak to clients daily, you may need to outsource the function to someone with good people skills. Therefore the goal might be: to find a Client liaison employee with great people skills. Should this not be an option for your business, you may need to improve this aspect of yourself and in this case the goal might be to attend communication classes.

3. Measure your personal growth

‘’What doesn’t get measured, doesn’t get done’’~ Unknown. Every month you would review the performance of your business by looking at your income, your expenses, your profit, your cash flow, how much tax you have to pay etc. All of this is done to assess how your business is performing against your targets and this process is crucial to the sustainability of the business. It is also important for you to measure your personal growth against the personal development goals you would have set for yourself, to ensure that you are on the right track. Remembering that you too are an important asset to the business, measuring your personal growth would give you an idea of how far you are from reaching your targets and how much of an asset you are to your business.

It is important to always remember that as an entrepreneur, you are the most valuable asset in the business and the business will not go further than where you are at. Your personal growth plays a significant role in the success of your business. If you would like to see your business succeed, the process starts with you constantly asking yourself: ‘’I am an asset to my business?’’

It is an extremely stressful time in our country right now and especially if you are a small business owner. In this article, we will take a look at what types of relief is available to small businesses who are struggling during Covid-19 lockdown.

Funding through the Department of Small Business Development 

To qualify, businesses must meet the SMME criteria as shown below. SMMEs are able to apply for financial or non-financial assistance in order to meet employee, supplier and overhead obligations. The qualifying criteria:

• Turnover below R50 million for the previous financial year.

• Business 100% South African owned.

• 70% of employees employed by the business must be South African citizens.

• Business must be tax compliant.

Information supplied by the Government indicates that funding of up to R500,000 is available and applications are likely to take up to 14 days. Successful applications will be audited in the future and will have to have supporting documentation and invoices to show how the money was expended. Anyone failing the audit will have to repay the money at prime plus 10%.

Small Enterprise Finance Agency (SEFA) Funding

The requirements to access SEFA funding are the same as for SMME SA Funding, but is restricted to the following sectors:

• Retail, wholesale and tourism industry

• Production industry

• Agriculture industry

• Construction industry

• Mining industry

The Industrial Development Corporation will disburse and manage this fund. Please note that as with SMME funding, an audit will be carried out in future and those failing the audit will be required to repay the money at penalty interest rates.

More information can be accessed at: http://www.sefa.org.za/

Accessing UIF benefits for employees

The Unemployment Insurance Fund (UIF) is to be utilised to make funds available to:

Companies that close their businesses during the lockdown, providing a flat amount equal to R3,500 per employee for the duration of the lockdown or a maximum of three months;

Reduced work time (in which case the UIF benefit is equivalent to the difference between what the employer normally pays and the normal UIF benefits applicable)

Illness benefits (in which case affected employees are entitled to claim 1 credit day for every four days of work, up to a maximum of 365 days for every four years of completed work)

Death benefits payable to the beneficiaries of the decease (payable on the same basis as illness benefits mentioned above)

Application forms can be downloaded from the Department of Employment and Labour website: https://www.labour.gov.za.

The TERS programme 

(Temporary Employer/Employee Relief Scheme) will be expanded and expedited – funded by the UIF to assist distressed companies in the form of subsidies to fund directly workers’ wages. One of the conditions is that the company embarks upon a turnaround or sustainability programme. TERS will be overseen by the CCMA (Council for Conciliation, Mediation and Arbitration). To obtain application forms and all relevant details, please send an email to: infoTERS@labour.gov.za. 

If the CCMA finds that you do not fully follow the sustainability programme, penalties and repayment will be levied at punitive interest rates.

Solidarity Fund

This is a special fund created by the Government and funded by both the private and public sectors (the Rupert and Oppenheimer families have agreed to contribute R1 billion each). Details of the fund are available at https://www.solidarityfund.co.za/.

Compensation commissioner

Any employee contracting the Covid-19 virus while employed by you (and not while at home) can apply for compensation under the Compensation Act. Please note that these applications must be made in person by the employee to the Compensation Commissioner’s offices. More information can be accessed here: https://www.gov.za/services/compensation-fund/register-compensation-fund

This is a great time to really focus on your business and get in tip-top shape. Follow our social media to get tips on how you can work on your business during this time to come out on top.