SME Mag_Issue 2.pdf - MTN Business

welcomeY’elloWelcome to our second edition of MTNterprise!SME convergence is one of our business’s key growthareas for 2012. With the ever-changing landscape withinthe telecoms industry, our continual innovation as abusiness is key to enabling you to meet your vision, andus maintaining our competitive edge. Aligned to thisand our ambition, we will be launching a convergedoffering to SMEs later on in this year, combining bothmobile and fixed (ADSL) broadband.The converged offering provides you and yourbusiness with flexible access to broadband, whetherin the office or on the move, incorporating seamlessfailover for uninterrupted business connectivity.This is just one of the many new offerings we willbe introducing for SMEs in the near future as westrengthen our partnership with you, providing youwith the technology backbone you need, so you canfocus on your core business.Wishing you a prosperous 2012!"We will be launchinga converged offeringto SMEs... combiningboth mobile andfixed broadbandRegardsKarel PienaarManaging Director, MTN SAWe would love to hear from you. Please send your letters and comments to MTNterprise at email: sme-mag@mtn.co.zawww.samsung.comSpecifications are subject to change without notice, correct at time of going to print.2

newsBulletinboa rdAllon Raiz, CEOof RaizcorpTJDR/51515/RThere are so many ways to enhanceyour business – we’ve rounded upsome super-useful tips and tools forSME ownersThe rise ofmomtrepreneursWho says only men can make it in the world of business?These days, many women are serious contenders in themarketplace. According to an article on smetoolkit.org,Eat Smart Organics (Pty) is a great example of a localwomen-owned, women-run enterprise. As the firstcertified organic-food factory in South Africa to prepareand package heat-and-eat nutritionally balancedorganic meals for the hospitality industry, retail sector,convenience stores and corporate markets, it’s aninspiring success story.To find out more about this revolutionary company,visit www.eatsmartorganics.co.za.A must for SMEs on the boxAn exciting new show is underway on Summit TV, DStv Channel 412.Sponsored by MTN and the South African Institute of CharteredAccountants, The Big Small Business Show aims to give viewerspractical and down-to-earth advice on small business, whetherthey already have a successful business, or whether they’d like tostart or grow one.Entrepreneur and business TV anchor Mandlakazi Mpahlwa-Sigcau hosts the show, and well-known small-business guruAllon Raiz, CEO of Raizcorp is on hand to interview studio guestsextensively about how to improve and grow their currentbusinesses.Tips and advice from established entrepreneurs are featured, aswell as information on how to start “popular” businesses, such asguest houses, food franchises, or for those with a keen nose, maybeeven a wine farm.Current trends, such as the latest gadgets that help businessowners work more efficiently and consumer spending habits arealso highlighted. And for simple no-nonsense know-how, expertguests offer advice on make-or-break aspects of running a smallbusiness, such as how to hire staff, marketing their small businessand increasing sales.This empowering show, which started on 23 January at 21h12,has repeats on Tuesdays at 9h12, Wednesdays at 17h00 and Fridaysat 18h12.Compiled by Riekie Human, Image: Gettyimages.comEverything you need for your big break.Get an MTN Business Start-up Pack for only R469 per month for 24 months.Whether you’re starting up or already running a business, an MTN Business Start-up Pack gives you the ideal, all-in-one communicationpackage. From a laptop, with Internet, to a smartphone, you can now stay connected and get more value with our range of freebenefits, which include MTN BizAssist (inclusive of free access to a business portal), R500 worth of Google AdWords, NSBC membership,and MTN Fax2Email.For more information go to www.mtnbusiness.co.za/sme or contact your nearest MTN outlet.4All standard terms and conditions of MTN Business and MTN Service Provider apply. This offer is available to SMEs. Offers are valid while stocks last. The colour of devices may vary from those illustrated. All prices include VAT and aresubject to a new 24-months contract. For further information, go to www.mtnbusiness.co.za/sme or contact your nearest MTN outlet or dial 809 from your MTN phone/handset or 083 1 809 from any other network operatorin order to speak to a consultant. E&EO.

comingsoonData offerMTN's ConvergedEnjoy the flexibility and choice of being able to access the Internet using both a fixed line(ADSL) and mobile connectivity with the converged offer from MTN Business• Personalised service from a single service providerWe’re on call to discuss the unique needs of your business with youand provide you with the best, tailored solution for your businessfrom a range of telecommunications products and services.Curved glass all-screen designOne home, three simple viewsMaps, apps and moreAll a swipe awayWork of Art SmartphoneNokia N9• Failover coverYour USB modem allows your business to remain constantlyconnected to the Internet by seamlessly connecting to our 3Gnetwork if you disconnect from your primary ADSL connection.• The flexibility of wireless connectivityConnect to the Internet wherever you are as the CISCO routerdoes not rely on the USB modem to provide connectivity. Whileyour staff works in the office connected to an ADSL via yourCISCO router, you can use the USB modem to connect and workjust about anywhere.• Cost controlThese solutions allow you to top up with additional mobileInternet bundles as and when you need to (applicable toTopUp packages).By combining ADSL Internet access with mobile Internet access,you will always be connected, and because these technologiesintegrate seamlessly, not only do you save money, but you'llenjoy quick and easy Internet access. These offerings are purelyfor SMEs with the primary aim being to offer you a reliable,affordable fixed and mobile data offering for your business needs.MTN Business Converged Services mean you only needone contract for both ADSL and mobile Internet.Benefits:• You pay lowest rates on both ADSL and mobile Internetbundles• Constant connectivityEven if you reach your ADSL cap and deplete your mobileInternet bundle, you will remain connected to the Internet viamobile access at out-of-bundle-rates, or you can load moremobile Internet vouchers.• ConvenienceThis converged offering provides both ADSL and mobileInternet access in a single offering.• Unshaped bandwidthHigh speed bandwidth for all traffic. In ‘shaped’ packages certainprotocols and traffic are given preference and speed is limited.Terms and conditions apply. For more information on pricing, keep a look out on www.mtnbusiness.co.za/sme.www.nokian9.co.za10© 2011 Nokia. JWT 59923

Start soaringIn the second of a series of articles on SME, André Wiesner chats to those in the know abouthow to take your business to the next logical levelHow do you grow a small business? On the face of it, theanswer seems obvious: keep on doing what you’vebeen doing since start-up – just do a dozen, a hundredor thousand times more of it. The truth is that scaling up anenterprise is more than a matter of taking what you have andmaking it bigger. Getting your SME to break into a gallop, findits wings, lift off and soar entails an evolutionary leap in howyou do business. It involves a change in nature.The first change is that, if you want more numbers inyour bank account, you will need more people in your life:more customers, certainly, but also more staff and outsideassociates. Whether you’re working solo, operating a mom‘n pop establishment, or leading a comparatively small staffcontingent, you have been the centre of gravity holding thebusiness together. Now, as you embark on the growth phase,your aim is to boost long-range profitability – to escalaterevenue yet keep costs down. The thing is, you can’t do it alone.Or, as MTN’s Mellisa Naidoo puts it, “The small businesschanges because increasingly you have to rely on otherpeople and start developing relationships out there.”The second change is the flip-side of the first. To grow, youneed to be interconnected with more and more people; forthis to happen, the business has to be less and less aboutwith your SMEyou. You’re the engine of your business, its driving force – andperhaps also its accountant, receptionist, chief cook andbottle washer, and more. But growth requires that you rethinkhow you divide up the labour in your business; in particular,you want your time freed so you can apply your skills andleadership where they’ll bring the shrewdest benefits.What this means is that you’re re-evaluating not only theshape of the organisation but your role within it. It mighteven mean redefining your core product or service offering.For instance, you could be making a tidy income from yourhighly personalised work as a web designer, yet the fact is yourpotential for growth is restricted – for the simple reason thatthere are only so many websites you yourself can craft in a givenperiod. Don’t be the product. A business isn’t scalable if this is so.As the saying goes, aim to work on the business, not in it.Think of it less as yourself than a second self, a separate entityyou can nurture, guide and steer in appropriate directions. Inshort, step back from your immersion in it, see it precisely as abusiness, and consider the following growth steps you can take:Strengthen your organisationStrengthen the organisation’s capacity by hiring oroutsourcing people to do things you can’t do, or to supportyou in doing the things you can. But if you’re wary about thecost and hassle of equipping new staff with workstationsand miles of clunky, knotted cables for their Internet link-ups,think again.“The beauty of our business,” says Victor Rakhale, MTN’sgeneral manager of Direct Sales, “is that we offer a mobilewireless platform for accessing the Internet and email. Thetechnology is reliable and versatile and makes scaling up easyand cost-effective. If you have an account with us, just addmore staff to it as you grow and we’ll deliver the SIM cards toget your staff up and running.“At a certain point in your growth, it’s a good idea to acquire amyMTN APN, or Access Point Name. It’s a secure connection thatenables staff to access the Internet and email; as a company, youbuy one packet of data and let individuals eat into it.”An additional service is MTN Fax2Email. Safe, paperlessand free to MTN clients, it allows staff to receive faxes fromsuppliers and others in a convenient email format.“Technology is critical in making business more efficient,”Rakhale says. “For example, most SMEs will tell you half theproblem is finding customers; the other half is getting paidby them. Part of the problem is that those SMEs rely onrudimentary systems for generating invoices and receipts.A major focus should be acquiring the right technology sothat you can track accounts and follow up on delinquentcustomers, as well as manage staff payrolls.”Overall, you should develop clear, standardised systemsand processes. The idea is that you ought to be able to trainnew staff quickly – or step out and have the organisationfunction smoothly and consistently by itself in your absence.Enrich your product or serviceBuilding staff and technical capacity costs money, so youneed to devise a financial strategy for funding your growth.This could include taking a loan or, more sustainably, seekingto generate a dependable flow of repeat-business fromcustomers by entering into long-term contracts with them.A common problem is that, as SMEs expand, they neglectpre-existing customers or battle to give them the samequality of support as before. But as Nomalanga Nkosi, MTN’sgeneral manager of Business Marketing, explains, the goal isboth to acquire new customers, as well as harness existingones, whether by eliciting referrals or inducing them toincrease their spending with you.Achieving that goal, she says, takes “a 360-degreeunderstanding” of your market, an eye for opportunity,and flexibility in adapting or repositioning your product orservice. Instead of regarding it in isolation as a stand-aloneitem, picture it from your customers’ perspective, see it as partof an array of interlinked products and services that couldmeet their needs, and bundle your offering into a one-stopshop,bouquet solution.growDoing so involves forming strategic partnerships withother businesses possessing skills that complement orsynergise with yours. Together, you promote one another’swares and collaborate on an ongoing or per-project basis, anarrangement that is advantageous when pitching for work ordealing with the unhappy good luck of a business opportunitytoo huge or complex for you to service individually.But when bringing in external associates to work withyou, take care that they don’t wind up dragging yourbrand through the mud and you into court. A service levelagreement (SLA) should be in place to outline your mutualexpectations, and although customisable SLA templates areavailable online, it’s best to seek legal advice. MTN BizAssistcan help you locate attorneys in your area.Multiply your customer connectionsYou strengthen the organisation’s capabilities and enrich yourproduct or service; the next step is to expand your marketreach by going out where your customers are to let themknow what you’re about and transact with them. This entailsa drive to widen and bolster your sales channels, and couldinclude opening new shopfronts or enlarging a direct-salesteam. Additionally, you might consider using resellers – thirdpartyagents who, in the Tupperware tradition, sell goods onyour behalf – or franchising your business model to others if itis distinctive and can be replicated.What’s beyond question is that your business must be online.A lively, interactive website for engaging with customers isby now a necessity, so you should also be using social mediasuch as Facebook and Twitter. Indeed, it’s an exciting time foryou to tap into the ever-growing world of digital connectivity,be it placing banner adverts on the Web or harnessing mobileplatforms like MTN Y’ello SMS, a bulk-messaging facility forsending out reminders, promotions and more.All of these measures build your brand; to convertthis raised awareness into cyberspace sales, you need toimplement an e-commerce solution that combines a userfriendlywebsite with fast, reliable logistical support for yourwarehousing and delivery needs. (See below for details.)“Make sure that you innovate and stay abreast of what’shappening with technology,” says MTN’s Sifiso Khumalo.“We are increasingly moving into a paperless environment,and it’s essential that you as a SME utilise that space to yourmaximum benefit.”For more info on logistics or e-commerce,see these useful linksE-commerce: www.shopdirect.co.za; www.enginuity.co.za;www.payfast.co.za; www.paypal.com/zaLogistics: www.value.co.za/express.aspx; www.rtt.co.za/www.dawnwing.co.za; www.dhl.co.za/en.html12 13

the boxEzra Ndwandwe has an impressive CV, but what’s even moreimpressive, says RIEKIE HUMAN, is his passion and dedication,and an almost effortless ease in how he runs his businessThinking outside“The smallest spark can start the largest fire,but the fire won’t start until the spark is there,”writes Ezra Ndwandwe on Dual Point’s impressivewebsite. “The sparks of my life are curiosity,enthusiasm, excitement and a positive attitude.I have come to realise that with these almostanything is possible and that without them notmuch can be achieved.” And the beauty of hiswords – apart from ringing oh-so true – is that hereally means it. After all, Ezra’s at the forefront ofsolutions-based business strategies, and runningan inspiring business to boot.Ezra has a rather imposing CV, which includesstudying chemistry at Wits; doing a managementdevelopmentprogramme and eventuallymanaging the regional processes of a largeskincare company (with his domain stretching allthe way from Africa to the Middle East and even toPakistan). But it’s also Ezra’s strong leadership skillsand effective management style that have beenthe building blocks of his impressive career. Aftera stretch as management consultant for a globalconsulting firm, he was soon snapped up by SABand worked his way up to operations, becomingproject strategist of this corporate giant. And if thatdidn’t keep him busy enough, he also obtained amasters in Business Leadership from UNISA at thesame time!By then it was clear that Ezra’s strong businessacumen would lead him towards pursuinghis dreams, and in 2003, he started his ownconsultancy – Ndwandwe Consultants – offeringoperational strategies and hands-on experiencein spades. The main thrust of the business? Headvised corporates on how to get the best out oftheir employees, with an emphasis on groomingblack supervisors, managers and business leaders totake ownership of their careers. Not surprisingly, thecompany grew in such leaps and bounds that DualPoint Holdings was born – with the main arteriesof the company being Dual Point Consultants, DualPoint Media and Dual Point Mining.Nowadays, he’s also got The Big Break on his plate– and there could hardly be a more fitting judge fora SME-inspired show. “The possibility of impartingand sharing entrepreneurial knowledge is the mostexciting opportunity presented by being a judgeof this reality-television show,” he enthuses. Andhe also points out that SMEs in South Africa aren’tgiven the acknowledgement they deserve. “SMEsplay a significant role in strengthening and growingan economy – they are in fact the engine of anyeconomy. So The Big Break seeks to raise the SMEprofile and to showcase South Africa’s new industrycreators.”According to Ezra, the show will inspire potentialentrepreneurs with its incredible can-do slant, andit will also add plenty of practical input – such asshowing “what it really takes to be an entrepreneur,as well as how to go about addressing day-to-daychallenges faced by entrepreneurs”. What’s more, hesays, each episode is designed to provide an “aha!”moment and by the end of every show, viewerswill have learnt something tangible – such as whyit’s so important to have a marketing strategy,how to manage your finances well and how to usetechnology to benefit your business.With such a sound understanding of the businessworld, and specifically the entrepreneurial world,one cannot help but wonder what advice Ezra hasreceived over the years that has rung true and stuckwith him. “If you can manage your anxieties, you canmanage your business,” he says without missing abeat. And when it comes to mantras, his is simpleand to the point: “There’s no substitute for qualityand hard work.”Waxing lyrical about South Africa’s immensepotential and opportunities, Ezra says that this isthe best country in which to be an entrepreneur.“There’s opportunity aplenty – SA is truly alive withpossibility!” And when it comes to job satisfaction,he’s equally enthusiastic, saying that knowing he’sinfluenced a positive outcome while applying histalents gives him great joy.Orchestrating a balance between work and therest of one’s life is never easy, but Ezra says that he’sfortunate to have a solid family support system.UP CLOSEMarried to “a beautiful woman – inside and out”,he comes from a God-fearing family and credits hismother for being “the pillar of my strength”.When he unwinds, his interests run far and wide,and include everything from playing tennis anddabbling in poetry to watching movies – “anythingwith Meryl Streep or Charlize Theron is bound tointerest me,” he says.With a love for ballads and classical music, histaste in books also veers towards the classical(The Great Gatsby is a firm favourite), and as far asfavourite holiday spots go, he can’t stop ravingabout KwaZulu-Natal’s beauty. “We have an amazingcountry and sometimes it takes going out of thecountry to appreciate it more.”"SMEs play asignificant role instrengthening andgrowing an economySo what could possibly still be in store for thisdynamo in future? Well, for starters, he’s currentlybusy with a doctorate in business administration,consulting to various large organisations (includingmany multinationals). He also lectures widelyat business schools (on subjects ranging fromeffective marketing, effective change managementand project management to corporate strategy,managing transformation, business-process reengineering,organisational design, employmentequity, diversity in the workplace, and organisationaldevelopment). And these pursuits are constantlygrowing in scope. He also dreams of being at theforefront of “a movement to ignite a culture of selfsufficientcommunities through entrepreneurship”.Among all his accomplishments in life, it’s clearthat Ezra doesn’t shy away from thinking outsideof the box and dreaming big. Which makes it notentirely unsurprising that he says the one nonwork-relatedthing he’d still want to achieve in life ismastering playing the harp. We have no doubt thathe’ll do just that.For more info on Dual Point Holdings, visit www.dualpointholdings.co.za15

forecastThe year aheadTough times on the horizon, but good news is on our doorstepWhat’s the economic forecast for 2012? Let’s getthe bad news out of the way first, because it’sgrim indeed; the good news, on the other hand,is better than good – it’s great.According to Dr Adrian Saville, chief investment officer ofCannon Asset Managers, “The single biggest headline issuein the advanced world is that Europe and the United Statesare going to remain troubled economic regions… There isan overwhelming possibility that Europe will go back intorecession in 2012, and a 75% chance that the US will followit. That’s not good news for South Africa because of our stillcloseeconomic association with these geographies. If Europeand the US are going to have tough times, this will translateinto tough times for us as well.”However, in this light, there is a second critical issuefacing South Africa: the extent to which we can mitigatethe recession by tapping into the energy of the “dynamicmarkets”. They include the well-known BRIC countries (Brazil,Russia, India and China) but are by no means limited tothem. Turkey, for instance, was one of the world’s fastestgrowing economies in 2011, and in that same year the Turkishcompany Arçelik bought up the South African manufacturerDefy Appliances for R2.5-billion.“Those bridges into dynamic markets are incredibly importantfor our prosperity,” Dr Saville said. “Turkey is an example,but there are others. While some, such as Vietnam and thePhilippines, are further afield, many of the vibrant economiesare close to home. Over the past 10 years, Angola has been thefastest growing economy in the world, and is then potentiallya very important partner for South African businesses.”For Dr Saville, these “bridges” into the continent’s dynamicmarkets hinge on two things: the state-level policies thatare put in place to enable them, and the ground-levelinfrastructure that is built to make them a reality.“Currently, one of the single most important initiatives isthe Grand Free Trade Agreement, which will run from SouthAfrica through southern Africa and into East and West Africa.If it’s put together successfully, it will result in a free-tradezone that includes about 600 million consumers. It’s a seriousand real initiative… Today’s South-East Asian countries doabout two-thirds of their trade with each other; in sub-Saharan Africa, only 15% of our trade is with each other…Yet our neighbours are these fast-growing economies suchas Angola, Rwanda and Mozambique.”Infrastructure is being developed to support these policyinitiatives, a good example being the Maputo Corridor thatconnects South Africa’s northern provinces to Mozambique’scapital port. “Infrastructural investments of this kind areimportant for economic welfare and will be good for smallerbusinesses, which are likely to find incredible opportunities inthese new frontiers.”Take cellphones, for example. Dr Saville points out thatthere are an estimated 600 million handsets in sub-SaharanAfrica, which “makes the [telecommunications] marketbigger than the US or Europe. Handsets require a range ofdifferent inputs, whether it be electrification, cellular towers,the servicing of broken handsets, the sale of airtime andconnectivity, or the development of applications.”Similarly, a surge in building is happy news for those inthe construction sector, but – thanks to what economistscall multiplier and spillover effects – its impact grows andspreads indirectly to other sectors. “It means that goodsneed to be moved, which is good for transport firms; itmeans that buildings need painting, which is good for paintmanufacturers; it means you need electrification, which is goodfor service providers in the electrical industry; and so on…“We are often obsessed with the spectacular growth inIndia and China, but in actuality we have remarkable growthgoing on right outside our front door.”Dr Adrian Saville is an executivedirector and CIO of Cannon AssetManagers. He has combinedteaching and investments overthe years, having lectured atthe Estonian Business School,the University of KwaZulu-Nataland the University of Pretoria.Currently, he holds a VisitingProfessorship in Economics andFinance at the Gordon Instituteof Business Science (GIBS).Words: André Wiesnertime outThe best inventions ever? Here are some of the things we can't do without. By Kathy MalherbeAlthough there appears to be no consensus aboutwhich innovations are an SME manager’s favourites,a bit of informal research produced some interestingsuggestions. From facetious to funny, basic to brilliant,sublime to ridiculous – they were characterised by passionateconviction. Paper? Electricity? Money or maths? What didemerge from this informal research was the realisation thatnone of these inventions came about in a eureka moment.Rather, they were developed slowly over time by rocketscientists in various disciplines anticipating needs thatbusinesses may never have anticipated themselves.According to prolific inventor Nikola Telsa, “Science is buta perversion of itself unless it has as its ultimate goal thebetterment of humanity.” Not many of these inventions appearto have improved humanity but they have facilitated efficientand significant changes to small and medium businesses.A personal favourite is the diary – written or digital –whichstarted in the 17th century and was used for recording(ostensibly private) thoughts. Ironically the diary was the firstthing parents read when they were concerned about theirteenagers and is often the second thing to be read (after thewill) by relatives when someone passes away. These days abusiness diary is almost public domain, but whether digital orleather- bound, they manage our time and jog our memories.Unless you are living on some deserted island, yourbio-rhythms are determined by the tides and moon and notmuch else to do but plait palm fronds, your diary is your mostessential business tool.The personal computer however, was voted unequivocallyas the top invention for small and medium business. CharlesBabbage, considered the father of the computer after hisinvention and conception of the Analytical Engine in 1837,could hardly have known where his brilliance would lead toone day. Later, the personal computer changed the world offavouritethingsSome of ourbusiness, despite some scepticism and epic failure predictionby Ken Olson, president, chairman and founder of DigitalEquipment Corp (which made big-business mainframecomputers), who said in 1977, “There is no reason anyonewould want a computer in their home.”While the personal computer might have been thewunderkind for a while, it was the World Wide Web andInternet access, made available to the public in 1992, thatchanged the way we did business. First invented in 1957,when Sputnik I (the first satellite) was launched by SovietUnion, it is now ubiquitous, fast and accessible.The cellphone comes a close second: In 1878, Sir WilliamPreece, Chief Engineer at the British Post Office, scoffed at thenew-fangled idea of a telephone. Prissily he declared, “TheAmericans may have need of the telephone, but we do not.We have plenty of messenger boys.“ We can only imagine hisreaction to the mobile phone. Invented by Martin Cooper in1973 while he was working for Motorola, the cellphone tookoff slowly. Large, expensive and considered relatively useless,it was only in the mid-1990s that phones were small andcheap enough to warrant mass production. Cellphones havebrought about personal freedom!In third place, amongst all the technological and brilliantbreakthroughs, came the coffee machine – just a short headbehind the computer and Internet… They say “the power ofa man’s mind is directly proportional to the quantity of coffeehe drinks…“ Not only that, but apparently more money,promotion and bigger offices may be important but a goodcoffee machine is what keeps employees happy. Not onlydoes it offer a fix for a legal addiction but is pivotal to socialnetworking in large corporations.The also-rans include USB sticks, caller ID, Drop Box, 3Gcards, Xcel-spreadsheets, printing and, last but not least,though hardly an invention, the indispensable PA.1819

SME offers sold nationwide via selected MTN stores. To find your nearest MTN store,visit our website on www.mtnsp.co.za or call 809 from a cellphone or 083 1808 from a landline.