The resignation of Robert Mugabe and the current race for power within the ANC have highlighted the importance of succession planning within the political landscape, but just how important is it for your business? Statistically, just 28% of succession plans end up being truly successful. On this week’sThe Money Show with Bruce Whitfield, we considered the all-important questions you need to ask of yourself, and of your business, when creating a succession planning strategy for your business:
The Money Show - Aurik Business Accelerator
On Monday, 21 August, we spoke to Bruce Whitfield on The Money Show on Radio 702 and Cape Talk of that day’s R450 million sale of the Gupta media assets, ANN7 and The New Age, to Mzwanele “Jimmy” Manyi’s consortium, Lodidox.
The feature focused on the business valuation of media assets and made business owners aware of the importance of a correct business valuation in assessing their enterprise as an Asset of Value when they put it on sale.
The feature also highlighted the methods of business valuation, the risks involved for the buyer and why they should be aware of these factors.
Building your business into an asset of value may include expanding through franchise opportunities. This week, onThe Money Show with Bruce Whitfield, we examined the key elements of what you should consider when assessing franchise opportunities:
Last night Pavlo and Bruce spoke about partnerships in business. So often these can make or break a small business. You can listen to the full show here.
So what are the benefits of the right partnership?
- Shared risk
- Two sets of eyes on the ball
- Play your strengths
- Double your resources and networks
So how should you approach finding a partner?
First, ask who your partner is. You'd be astounded at the number of clients who literally know nothing about their partner’s background, their approach to business, and their vision for the partnership. They rush into the relationship so quickly that they don’t even gather this fundamental knowledge about their partner.
Secondly, trust is essential. Talk is cheap. Do your research and check them out. Then understand their values. Know their approach to family because of time, how they view money because of investment direction, and what their purpose is because of vision.
And finally understand their skill set. These should ideally be different to yours. Every business has two main elements - promotion and delivery. Decide who will be accountable for which and who is best suited to which. It doesn't work if you both are doing the same or want to do the same and will be put pressure on the business and relationship.
So you think you've found the right partner? Pavlo suggests the following when entering into the partnership:
- Date before you…marry Divorce is expensive and a waste of time, energy and potential.
- Test for compatibility, capability, skill match
- Structure the partnership Consider the following:
- Roles and responsibilities
- Delegation authorities
- Contributions of resources
- Rights to remunerations
- Dissolution or exit strategy.
- A buy-sell provisions
- Non performance or delivery.
- Non competing & confidentiality.
- Sustain the partnership
- Work harder than if you are on your own. You're accountable to someone other than yourself.
- Ensure that your bookkeeping, accounting and compliance is in order.
Getting sales right is one of the most difficult tasks an entrepreneur faces, it is the ultimate testament of business understanding and sophistication.
Great salespeople don’t build a sustainable business - they do deals.
Last night Pavlo chatted about the need to build a "selling engine" in your business. You can listen to what he had to say here.
Welcome to 2018! A whole year ahead, to plan, implement, and prosper. I hope you had a great break, and were able to gain a little perspective on your business, while spending time with your family and friends. Looking ahead to the year, it’s time to look at ways you can build your business into a better, stronger, and bigger, machine this year. On this week’s The Money Show with Bruce Whitfield, we uncovered 5 key habits that’ll help you build your business in 2018:
This week Pavlo Phitidis talks about building your brand by building a branch network. Listen to the full podcast here.
By Pavlo Phitidis
Over the past few weeks, we’ve been shocked by the news, as McKinsey, SAP, KPMG, Bell Pottinger and so many others, have hit the headlines with significant reputation-related crises. It only seems fitting then, that we chatted this week on The Money Show with Bruce Whitfield about building, or breaking, your brand, through reputation. As Warren Buffet’s 2014 memo to Berkshire management said:
“We can afford to lose money, even a lot of it. But we can’t afford to lose reputation, even a shred of it.
Here are a few actions you can take to both build and avoid hurting your brand.
In 2008, determined entrepreneur, Karabo Songo, established Olive Communications. I first met Karabo during the 2013 Business Accelerators radio segment, and was happy to discover that, by 2014, he’d followed through on the advice I’ve offered him. This led to him snapping up the deal of a lifetime – a large advertising contract with a corporate insurer. Karabo’s business grew, exponentially, from this, but then the problems began. In this week’sThe Money Show with Bruce Whitfield, we chatted to Karabo, touching on just how bloody the sport of business can get, and the importance of risk management:
Digitisation is converting information into a digital format – but why is it important?
Listen to the show here. But why is digitisation important for small business?
After listening to Bruce's interview last night with Astral and all the news of the past few weeks from Brexit, to the upcoming US elections, to tightening credit, to low growth and poor paying corporates. It's very easy to find reasons not to succeed!
On Monday, at 5.47am, Juno entered into the orbit of Jupiter.
The five-year journey culminated in Juno burning 18 000lbs of rocket fuel to slow down from 150 000mph to the exact speed needed to orbit Jupiter.
On board, three Lego men and women made of space-grade aluminium hope to withstand the perilous radiation of Jupiter for 18 month before Juno crashes into Jupiter’s surface.
Pavlo shared his entrepreneurial insights from Juno's voyage on the Money show last night. Listen to the show here.
1. Juno will get closer to Jupiter than any previous spacecraft ever has
Jupiter is surrounded by an intense "radiation belt."
The probe will circle the planet 37 times over 20 months, traveling between Jupiter and its radiation belt.
Juno, however, will come as close as 2,600 miles from the tops of Jupiter’s clouds.
GET CLOSER TO YOUR CUSTOMER TO BETTER UNDERSTAND NEEDS BOTH PHYSICAL NEEDS AND EMOTIONAL NEEDS
2. Data collected by Juno can help settle a debate about how planets, including Earth, are formed
Formation theories always begin with a collapsing cloud of gas and dust. Most of that material goes into forming a star, like our Sun, and the remainder can be used as building blocks for planets. Its not clear exactly how this is done: do planetary cores form first, and then accumulate their outer layers of gas just through gravitational attraction? Or do particularly large instabilities in that collapsing gas cloud collapse separately to form planets?
Learning more about the makeup of Jupiter’s core can help differentiate between these two scenarios
YOUR MARKETING MUST BE CUSTOMER NEED LED AND INNOVATION MUST BE DATA LED
3. Juno will attempt to measure the water in Jupiter’s atmosphere
Because Juno will be able to travel so closely to the planet, the probe will determine the composition, structure, and motions of the atmosphere below the cloud tops for the first time. In particular, the spacecraft will measure the water and ammonia in the gas giant’s atmosphere.
CONDUCT PROPER ANALYSIS ON YOUR CUSTOMERS OR PRODUCTS OR PEOPLE; WHO MAKES YOU MONEY AND WHO COSTS YOU MONEY
4. It’s Broke a Speed Record
Over the past few weeks, Jupiter’s gravity has been reeling Juno in, accelerating the spacecraft to breakneck speeds. By the time it arrives, Juno will be one of the fastest human-made objects in history, moving approximately 260,000 kilometers per hour relative to the Earth. That’s roughly ten times the top speed of the Space Shuttle.
When it enters Jupiter’s orbit on the evening of July 4th, Juno will shed some of its velocity in 35-minute main engine burn. But even after slowing down to a paltry 210,000 kilometers per hour, it’ll still be the fastest spacecraft ever to enter orbit around a planet. The reason for Juno’s incredible speed? Getting the spacecraft as close to Jupiter’s cloud tops as possible.
BUILD IN THE GRASS BUT SPRINT IN THE OPEN FIELDS WITH YOUR INNOVATION
5. Juno launched aboard an Atlas V rocket from Cape Canaveral Air Force Station on August 5th, 2011
BUILD OFF YOUR REFERENCE CLIENTS AND PIGGY BACK ON THE BIGGER ONES
6. It’s a Nuclear Fallout Shelter
A 180 kilogram titanium box roughly the size of an SUV trunk, the vault will reduce ambient radiation exposure approximately 800 fold. By the end of its mission in February 2018, it’ll have been dosed with the equivalent of 100 million dental x-rays.
PROTECT YOUR IP, STORE IN THE CLOUD, FORECAST WHAT CAN GO WRONG AND LIMIT YOUR DOWNSIDE RISK; NOT EASY FOR ENTREPRENEURS
7. It Runs on Renewables
Juno is the furthest solar powered mission ever conceived, built to run on the sun in an environment 25 times dimmer than the Earth. Even with state-of-the-art solar technology and energy-efficient electronics, the spacecraft needs to catch a lot of sunlight. Spanning 20 meters (66 feet), its three solar arrays contain approximately 18,000 solar cells in all. Total number of individual solar cells: 18,698.
INVEST FOR TOMORROW, ENSURE YOU HAVE RESERVES, IT’S A TURBULENT JOURNEY
In last night's show Pavlo and Bruce chatted about his recent trip to Britain and what opportunities the current environment presents. The full show can be heard here.
There comes a point in every growing business that you reshape, restructure and reposition your business!
Bruce and Pavlo chatted last night about if there is ever a time when you need to fire a client. Listen to the full show here.
Last night on The Money Show Pavlo spoke about how tough every day in South Africa is at the moment. If feels like being in a boxing ring.
I seldom go to shopping centres but was at one of the bigger Joburg centres last weekend. It was heaving – filled with consumers dressed to the nines but they were all empty handed. They are not spending!
Last night Pavlo spoke about valuing your business. He'd attended an event with 250 entrepreneurs and when he asked who was building a business that will be sold, only five people put their hands up. Remember that 94.6% of businesses started, don't get sold.
Last night Pavlo and Bruce chatted about how to get better at dealing with change. Changes are happening at an alarming rate in SA. Business owners are now expected to make so many decisions and so fast. Often these decisions are not made since the environment is too demanding, the changes too sudden and there are too many variables all in play.
Entrepreneurs have to become “change fit” to outlast the road you have to run that will eventually build your business into the Asset that you want.
How do you manage both yourself and your business within an ever-changing environment?
1. Look for it
Be present and watch the levers of change. Ask what this means for you? Be sure to look at both positive and negative impacts. This allows you to think, plan, consider and have options when change comes.
2. Don’t be alone
Whatever it is, someone has been through it or knows someone who has. On your own, you get stuck in your head and it’s impossible to see things differently after a while.
3. Be future forward in thinking
Focus your energy towards the things that you can control rather than what was
4. Be chilled
You will make mistakes in dealing with change. You will say things that you regret. You will realise that in hindsight… Be chilled with the fact that you will make these mistakes and that retrospectively, there would have been better options that the ones you took.
5. Always be a big thinker
You have to anchor your thinking and actions into the future towards something.
6. Be positive
Acknowledge that this is simply a challenge and seek to find interesting, novel ways around it. The language you use matters enormously and the view you have of yourself matters equally.
1. Build a customer facing business
This is a business that solves a problem for a group of customers who have that same problem
2. Build a simple business
Don’t try be everything to everybody
This is a business that is designed to solve problem
3. Build a system driven business
Systems control the customer experience. If this is the experience the customer wants to solve their problem. Your business will be supported by your customers as and when you have to change. They will lend you a kind ear.
4. Involve your core team
A business is made up of functions. Good systems delivering the function means you will have people who can operate the systems and deliver the function. Team leaders allow then for a layer of supervision. These supervision or management levels form your core team.
Change means a response from these areas of the business. Get the problems and challenges solved at that level.
This enables ownership, ownership enables action, action enables a response to change.
5. Generate data
Allows you to remove emotion and think rationally
Listen to the full podcast here
So how do you know when the price of your product is right? Pavlo spoke about what you need to consider when pricing your product and provides a number of strategies that may be appropriate. Listen to the full show here.
My recent meetings with people across the country have revealed that we have so much human potential, and yet such low morale. Fatigued by empty promises from government and business, people – especially the poor – are exhausted by their efforts to make ends meet. The toughest question posed to me was: “How can I start a business, or a career, if I come from nothing, and have nothing?” This week, onThe Money Show with Bruce Whitfield, I set out to answer that question, by adopting an entrepreneurial approach.