ENTREPRENEURSHIP

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Second last article in the LIFE series and now I’m going to discuss entrepreneurship with entrepreneurs.

Yes, you and you……..

If your job includes:

Setting up a business in the hope of making a profit,

then you are an entrepreneur.

I would put to you that every bond originator, estate agent, principal or a plethora of other occupations that employ you and/or others where the income ranges from commission to fat profits, is an entrepreneur. Anyone who is self-employed is probably an entrepreneur but anyone who is employed can be an intrapreneur and we’ll mention your role below. Bottom-line, the attributes of an entrepreneur can be applied whether you have your own business, work for a boss, or wish you didn’t and you intend to find your way out.

So as not to preach to the converted, let me start with drive. In this context, it probably means that you have done it on your own, want to do it on your own or, at least, think you can do it on your own. You know my old adage, you want to employ people who believe that they could employ themselves. That makes a boss uncomfortable and employee wide awake to opportunity. It raises the creative tension on how the boss treats you and how you treat the opportunities in her business. You want to learn and achieve, she wants productivity so she’s teaching you, exposing you, stretching you and eventually, unless you have something to stay for, you could find yourself as a blue-blood entrepreneur. With that cycle established, it’s not surprising that entrepreneurship includes:

  • A new business
  • A drive to succeed
  • A risk
  • A profit motive.

Those of us who’ve done it, know that profits are a by-product of sweaty hands and foreheads, also called “stress”, so let’s tone it down a little. Like you get the Health Warning on TV in a stunt act “don’t try this at home”, never think entrepreneurship is easy. If it is, you’re probably one of many who have tried and failed, or succeeded. If they failed, beware unless you know why. And, if they succeeded, beware because competition does not let you in easily. Ask Luyt Lager, Top TV et al. They thought they could win, but ran out of steam; admirable effort but a loss. On the other hand, Blue Label Telecoms entered the market of telecommunications when it looked impossible to succeed against the giants and they won a profitable share. Every estate agent and bond originator has the same story and I guarantee, to a greater or lesser degree, they have succeeded along similar principles.

You need to risk it. You could spend another’s money and he would forgive you, but deep down there must have been something to lose. Whether it’s your own, the bank’s or someone else’s or a mixture, honour should come into play. It’s wonderful to win but it’s horrible to lose. Risking it is not for fools and remember, once you have, the Law of Unintended Consequences kicks in. The best laid plans of mice and men, cannot foresee all that may happen. Normal risks around profit margins, turnover, costs etc. can be built into models, but those which you cannot see are a blow to the financial solar plexus. Expect them, whatever they are, but just as importantly, know that they will be there and suss them out from people in business or in your industry of choice before you venture in. Homework is the best work before you take the plunge; you will not be sorry. Linked to this financial aspect is the size of the downside. I remember going into BondExcel and signing a lease for our building [I drove past it the other day in Republic Road with fond memories]. Round figures, it was R4000 for 6 months, or R24000. Knowing we had earned nothing yet, I can tell you that was an enormous decision for me. But that angst taught me something which I’ll simply express like my mother taught me, Look after the pennies and the Pounds will look after themselves. Or, put another way, because we turned every cent, the Rands came in due course.

The idea and the intellect and the drive need to match. In the old days, a guy by the name of Tony Factor set up a retail store in central Joburg in the 70’s. Open to correction, I believe he made some money selling false teeth in London but he was dyslexic; he really battled to read and write. However, he managed to become the discount king of South Africa when discounts were “unpopular” and Factor’s Discounters was a beautiful building in Pritchard Street, if I recall. The point is, Tony had an idea and all the skill to drive it home despite his inability to read or write properly. You see, entrepreneurs are not brilliant, they just know what they can do, what they can’t do and what they must do. If one of those things are missing and you can afford to ‘buy it in”, stay in your day-job, please. One of the rules from Tom Peter’s Thriving on Chaos fame was “stick to your knitting” i.e. do anything as long as it was somewhere in your skill set. I’ll never forget buying RMD Meats though – I could braai so I bought a meat factory – crazy but true. Suffice to say, we knew how to run a business, knew a little about Retail and making customers happy but did we sweat learning about all kinds of meat – cutting a Fillet into 200ml steaks and hiding the “tail” in the batch of “eyes” and then vacuum-packing and labeling every packet before sending them out to restaurants across Gauteng. I loved the time for learning something completely different, but if you want to “buy a butcher”, beware! As another example, we have a restaurant in town that was built and owned by two locals who are very well known and brilliant at what they do. Sadly, they have just sold to new out-of-town owners and I would wager they will not last 6 months. Going into winter and losing the turnover of friends of the sellers is going to cost them dearly; I really hope not for their sake. To summarise, a good idea, needs to be thought through and then driven to success otherwise it and I will not be entrepreneurial.

I think we all understand profit. That lovely stuff when you have sold lots at the right margin and everybody has been ready, willing and able to pay you on time. The experts may say that I’m mixing up profits and cash flow, but until you’ve invested your own money in a business, you won’t understand how the two become one continuous cycle in your head. Like the picture of the little guy sitting on his potty, the jobs not over ‘til the paperwork’s done. However, there is one type of entrepreneur that I really do admire these days and that is the Social entrepreneur. Many kinds of business abound like the guy in Somerset West who produces a “dry powder shower”. Fascinating but very necessary when you consider being in a drought for 6 years in Southerland. Another lady I read of is making handbags from tea bags and exporting her art-bags overseas. How many more – all plastic recycling, a social worker building shacks, bee-keeping, bamboo clothing – are out there making profit by being good to the environment and her people? What an amazing achievement by people who are pulling themselves up by their own bootstraps!

So what does it take to be an entrepreneur? Here are some thoughts without repeating those above:

  • A great idea or the drive to be better than the competition.
  • Vision. Begin with the end in mind; you’ll need to in times of “why did I do this”?
  • Never-give-up spirit.
  • Funding. Or a carefully crafted business plan for funders. If you can’t encapsulate it, you can’t expect anyone to give you money.
  • Support. Friends, business colleagues and professionals; most come at a price but all are needed from time to time.
  • Business acumen. Making profit is not making money, collecting cash and more debtors than expenses and creditors, is.
  • Being prepared to start small and grow. Ego has no place in entrepreneurialism; it may get you in but it can also terminate you if allowed to dominate your business.
  • Others. Partners, if you have, and people who trust you to deliver. People will jump with you if you have a plan with a vision and medicine-fills of enthusiasm. People are willing to follow visionary leaders.
  • Risk management. You’ll need it an hour after risk-taking.
  • Un-burnt bridges. I know your boss may have peeved you but the world is small. Become an entrepreneur with a forward-looking motive rather than an “I can’t wait to get out of here” attitude. Of course many people have done so, and probably my best example was Bill Venter, the founder of Altron and Powertech. The latter company, if my memory serves me correctly, he told his boss he would buy “one day” and he did. But I think they’re few and far between and in any case, why not be happy and positive while you’re working hard to succeed?

And by the way, Intrepreneurs do all of this in the context of their work. Right at work, fresh ideas implemented are driving bosses to realize the gems they have behind the desks in their offices. That symbiosis of real recognition for really good effort is occurring every day. If not, the boss may realize money talks but talent walks.

If ever there was an entrepreneur that I admire, he’s Vincent. As I’ve shared before, he joined BondExcel 2 weeks before I left Nedbank, survived sub-Prime on a farm breeding puppies [which he no longer does!!], re-built the Homeloan Junction business off a nearly zero-base and then started his Vape Junction. Unassuming, but a risk-taker of note. Humble yet efficient, he is people-centered to the point of care beyond the call of duty and sometimes to the point that it hurts. So, when we say “talk to us” it’s not because we think we’re cool know-it-all’s but rather that along the way of business life, we’ve learnt a few lessons that you don’t need to endure if you just ask.

Here’s to entrepreneurs, fearless men and women who get up every morning and make business and employment happen at financial risk to themselves. Clem Suntner says of you:

 

“I’m not saying that you shouldn’t focus while you’re running a business but you should have that radar system that is able to capture different possible futures and when they start occurring against expectations, that you have the ability to adapt.”

 

Yours in Property.

ENERGY

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At last, you say, he’s on the final letter of LIFE!

Sorry for you. But, more seriously, I have enjoyed writing these blogs amidst the doom and gloom of our beautiful, tortured country and its property market that’s in the consequent doldrums. Keeping ourselves motivated and humoured is probably more important than the energy that we throw at our work. Nothing is as sapping as a sense of duty driving us towards our goals and little saps our energy like bad news.

I’m sitting at a corporate, probably the most progressive company with which I deal. On the bleeding edge of what they do, industry leaders in their field, giving the banks a run for their money in a core competence , vertically and horizontally integrated in every sector that touches their business and doing deals, both funding and shareholding, that most of us dream of but never quite mange to achieve. Down in the workface, away from the rarefied air of top management quarters, this little poster caught my eye:

Have you ever….

Taken an extra half an hour for lunch without permission? Pulled a sickie? Cyber-slacked? Spent excessive time socializing during work hours? Taken long smoke breaks? Left work early without permission?

These types of behaviour are considered unethical use of company time, because you have been paid for time at work which wasn’t work.

As you see, the topic here was Ethics, but at the heart of much of our behaviour can also be Energy.

The physics formula for Potential Energy is: PE = MGH, where:

M = mass in kilograms
G = the acceleration due to gravity [9.8m/s2 at the surface of the earth]
H = the height in meters.
PE is the energy that an object has relative to its position. If you’re standing at the top of the stairs, you potentially have more energy than if you’re standing at the bottom.

Let me give you an example. When I wake up in the morning, it’s normally still dark outside. Once I’ve done my thing, my spaniel, Lyla, joins me for loves. Then she lies at our bedroom door because she needs to do hers and get a Dentastix. [It is supposed to keep her teeth clean, but it doesn’t and really it’s her rusk, but I think it just costs twice as much.] Anyhow, I open the door and approach the steps. In the dark, we both catch our breath at the top. My toe feels for the first step as my eyes adapt to the dim light of the street lamps and Lyla stands with me – adapting just as I am. Then I step forward and so does she…my 92kgs, 1.83m and gravity potentially accelerating me at 9.8m/s2.

Let me spare you the calculation; if I missed the next step picture, the blood and guts that would land at the bottom of the stairs. No cowboy movie stuntman could ever replicate the tumble of my wobbly little body rolling down tile-cladded stairs with such absence of aplomb that would befit an idiot who – you’ve got the idea – lost his footing on his stairs. Lyla, of course, would be completely different. With her smooth fur and short legs, she would slide and bump down each stair, but with little more than chest bruises. So there you have it, Potential Energy early in the morning in the Trevena home.

But… wait for it… later in the day something else occurs like clockwork. Lyla and her little brother, JJ the sausage dog, beg, scratch, bark and plead for their daily walk. The same Lyla who gingerly stuck her nose over the first stair that morning and waddled down with tail wagging, becomes crazy dog. Her ball becomes her focus and only a stray Hadeda can rip her away from her chase. Ball or Hadeda? – you can see her two brain cells screaming at each other. This way or that? Up or along? – if the ball had wings, the choice would be easy but squawking Hadedas are just too much distraction. She runs twice as much, gets shouted back onto the field from the direction of the dangerous road – sleek, shiny and fast – she runs up and around the cricket field.

EVERY DAY OF THE WEEK, POTENTIAL ENERGY BECOMES REAL ENERGY IN THE PURSUIT OF LIFE.

I could close now. I have made my point.

We all have a measure of energy. Normally physical by nature, we have heard to boredom that we can improve it by eating proper food, drinking proper wine [not really J], and getting proper exercise. Throwing in some good habits improves it further. Really Guys, this stuff is true. You don’t need to Google it, just go for a walk every night after work and feel the slow, but sure difference. Not all of us can have a body like a Greek god, but we can all enjoy the fresh air and sweat of a good walk; long time before we tackle The Epic, Argus or the neighbourhood Fun Run. Get energetic at its first base and enjoy life; not just longer but with vitality. Even Lyla knows this kind of lifestyle!

There are many other energies, so let’s discuss Emotional Energy [EE]. Without perfect definition, let’s agree EE is that energy which stirs in us every morning, a resource to center our emotions for a range of realities in our lives, in which or for which we become capable to perform emotionally. With EE, we don’t lose it nor do we care less, we simply cope well psychologically. Closely linked to EE is Emotional Intelligence [EI] of Daniel Goleman fame, which is defined as: the capacity to be aware of, control and express one’s emotions and to handle interpersonal relations judiciously and empathetically [read: “well” for the last two big words]

We are often stressed and sometimes exhausted by hard days at work. Working Moms have done it all in the day – up and ready, kids ready, lunches boxed, off to work and then everything in reverse every afternoon – leave work, pick up the kids, supper, homework and bed. What a day – every day! Our emotions are sapped by the sheer speed, urgency and incessancy of it all. Identify? – of course you do. Our emotional energy often becomes “no energy, just emotion.” And Dad is not spared but let’s just simply say, he’s paying the bond and stretched like a rubber band. Like muscular energy, emotional energy needs exercising, reserves and restoration, but how?

Just for starters, the formula above deserves a look in. If EE was defined as MGH, we could say that they stand for something like this:

M = the size of the problem
G = the speed at which it’s coming
H = the height of the fall.

So, you would agree that gaining weight, from eating ice cream daily, and putting on 5 kilograms in a month cannot be compared with being told you don’t have a job, leaving at the end of the month with a three months package. Simply put, you need a whole lot more EE to cope with job-loss than to slow down on ice cream.

Therein may lie my first point. As the adage goes, Pick your battles. Sometimes we want to fight them all; same ones, same place, every day. You and I, my friend, are not built to do that. We are built far more like cheetahs than like elephants – the former runs furiously for short bursts and then rests because she has to [in fact, that rest is so crucial that if she does not, she is vulnerable right then to her predators], but an elephant can trot at pace for hours. Of course, we can do both, but we are built to cope a life time not to burst forth for a day. Many of us do and have run our lives like the latter. We’re exhausted and deplete of EE.

Juts a quick point, we all exercise our EE and do it through overcoming problems. Times of recreation, vacation, joy and happiness are very nice and they “recharge our batteries”, but it’s in the tough times of life that we really learn to cope. [I’ve just returned from the country market and we met the ladies I mention below. One of them was telling me that she lost her husband last year but 10 years ago her daughter also, to Bipolar disorder. I looked at her cheerful disposition and thought you’re going to be mentioned in this blog for sheer emotional energy and even, guts. She is an overcomer of note, loaded with emotional reserves. Of course, she was shattered in each case and felt terrible loss when her life partner also “left her”, but she’s made new friends, stayed in touch with old and keeps herself fit and hearty. If she can do it, so can we!]

Then, of course, the issue becomes, How do we exercise EE in order to build it up? To build what we could also term: Resilience?  To be “aware of, control and express” emotions, you need to be exercised in these practices but before the next time your EE and/or EI is tested, just spend some time thinking about some LIFE questions:

How much of what I have do I need?

Am I focused on urgent or important things?

When last did I take a break?

What do I expose my mind to that is uplifting and refreshing?

What do I expose my heart to that is uplifting and refreshing?

How are my key relationships?

Am I emotional or emotionally mature?

You see, emotion energy is far more difficult to give easy answers to. Physical – go for a walk each day for 20 minutes – easy. Your dogs will love you and if you do it with the family, they’ll love you too, but Emotional Energy is more complicated. For those of us with a happy, uncomplicated disposition towards life it can be done with little thought. For the other 99% of us, it may be deeper than we think.

And by the way, it’s not age related at all. At church on Sunday, two ladies [as mentioned above] walked into church. They are both over 80, have lost their husbands, and had walked about 3kms from their retirement village to church in the sunshine. They were dressed brightly with colourful sun hats and track shoes. They were chipper and energetic. Best of all, those of us who were concerned offered them lifts home. “No way!” they replied, “It’s too nice a day to ride home.” Talk about energy, that was personified in those two ladies – age is definitely not a determinant of EE.

Picking your battles, as we mentioned above, just enables all the issues to be discounted for the most important issues that need to be tackled with the EE we have available. In other words, don’t worry about everything, just worry about what’s important.

As I also understand the secret, it seems to be a combination of attitude, well-being and hope. Attitude we have discussed so often but just to remind you that a real positive attitude even learns from the “bad stuff” as well as the good stuff. Well-being admittedly has a health factor, but it certainly includes your approach to your environment, our locus of control, your expectations and your level of contentment. Finally, hope is the elixir that lifts our sights from the depths of despair to the heights of possibility. Together with others I’m sure, these three attributes make for an ability to endure where need be and to be happy and content with where we’re at. Relationships form a huge part of our potential energy, including our EE; it’s so good to give and receive support.

I have not raised spiritual energy, but it too can be the source of faith and hope in the direst of situations. “Seek peace and ensue it“, says the Good Book.

There is so much more to say on all these matters. In the rough and tough of business, the market and the country issues, take some time to consider what you need to work on to improve your reserves of emotional energy. Luck may come your way, but for the rest of us, it’s a combination of hard work and application. One thing we wish on you is contentment and gain. Be kind to yourself and give to others everything you’re able within respectful boundaries.

Remember, as an organisation, HLJ has its own persona with EE as a component. Times have been blessed and while we have much to be thankful for, we need encouragement and support in these difficult days of the marketplace. Thank you to each of you who breathe so much life into our business. We value and appreciate you.

Yours in Property.