Coffee Groups of to a flying start

SA Business Hub and Majestic launched Coffee Groups in Southern Africa in February 2008. Already more than 1335 members have subscribed and the numbers are growing daily with 244 being prepared to coordinate meetings. More than 65 Coffee Groups have started with their meetings and some had two or more to date. Meetings are taking place on a daily basis all over South Africa, even Lesotho.

Objective

"The intention of Majestic, SA Business Hub and this coffee group, is to create an environment of trusted business co-operation where each community member helps each other to achieve a financially sustainable business."


What is the response to the meetings?

Joyce Tsitsi – Moroko North

"I would like to say i am overwhelmed with joy that i found both of your organisation. Before i came across both organisation; I sort of had little confidence that I will succeed but since our Coffee Group met for the second time; my confidence is higher than the world tallest building."

Diana Swales – Claremont, Cape Town

"I left the group at 11H15 and they were still connecting, I got two phone calls afterwards thanking me"

Khosi Buthelezi – KZN

"So this networking has really started up on a very good note and I left feeling very valuable in that I could contribute my skills in that manner without seeking anything in return. What I picked up in my group is the fact that we are all pretty much start ups on the business and still have a long way to go and need a lot of assistance. The interesting thing though is we immediately picked up the areas in which we can assist each other.

Big ups to you guys for making us connect this way! "

Anthony Kirk - Cape Town

"The meeting went very well and I have no doubt it will grow into a great group going forward."

Mike Jackson- Gauteng

"The first meeting at Pineslopes was a blast. It's a great group and I'm sure it will flourish. Thanks for bringing the concept to life."

Ndebs Ndabezitha - Johannesburh South



Feedback before end of Meeting:

Highly valuable, feel I have the direction to take.

We started talking; more break troughs' when understanding deepens

Do not feel alone anymore

Mateboho Mafantiri - Lesotho

"Challenges raised were about individual businesses. They were share amongst the present and solutions were brought forth"

Join a Group!

There is NO CHARGE for these groups because they are binded together by a shared intention. Get involved and change the face of SME's in Southern Africa. Click here to become part of the movement: click here

Where did it all start?

Majestic and SA Business Hub are bringing this sense of community back to small businesses. If we do not start working together, we will not survive. We are jading ourselves if we adopt the attitude that money will buy us out of trouble. Of course we want to make money, but we need to be thinking a little longer term that that. If you're successful now, you won't necessarily be for much longer. Things are changing that fast.

If you are a small business owner, you should be spending at least five hours a week working with your community, building each person as they build you. You need to surround yourself with other business owners that you trust and who you can work with. So let's start forming real world communities again. Let's stop using the excuse "I don't have time" and start saying "I'll make time" for others. Start leveraging a community around yourself and your business

You can join and participate in a localised group in your area free of charge. Among others, the purpose of these Coffee Groups is to:

Provide technical support for the Majestic software and technique
Share your business problems in confidence and find a solution
Send each other referrals using the Majestic database marketing system
Access a host of business tools and services through the SA Business Hub knowledge base

Here's to a new generation of small business teamwork!

Marketing to the Radiohead Generation

When Radiohead recently decided to make their new single available for free and asked fans to pay at their discretion, business around the world sat up and listened.
Not only was it a genius stroke of marketing but also did it transform customers expectations of what to expect from marketing and promotion in the future.

A spokesman for Radiohead says: 'As you might imagine, offers are ranging from nothing to more than you might pay for a CD in the shops.' The Observer goes on to say that “In part, Radiohead are asking: how much do you value us? But implicitly, they are also questioning how ..much people are prepared to pay to download music over the net. It's a question that music companies have been grappling with ever since the file-sharing site Napster was closed in 2001“.

This is just another way that the Internet is changing the way we do business.

The UK Observer points out that “Once again, the economics of the music industry is being turned on its head as artists take matters into their own hands. Haven't we already seen Prince sell 3m copies of his new album via a deal with the Mail on Sunday during the summer? Lily Allen, Arctic Monkeys and countless others have launched themselves via email or social networking sites such as MySpace and Facebook.”

And of course many of you will know that its not only the music industry using the shock tactics to boost sales. Companies like Netscape making their internet browser available for free, or Google giving you a range of free software applications simply to attract and keep your custom has become part of what we expect as web consumers.

The question is what next in the race to attract the Radiohead generation and where do we go as small business owners who don't have millions in the bank to back up our free offers?

For me the answer lies in balancing the free stuff with the revenue gaining products on your website or in your business. Make sure your free stuff is as good as the products you are charging for. Care as much for the customers paying you as the ones who are not and always ensure that the customer recognises the value in your products.

When offering free stuff, why not use it to:

Give at test drive or trial
Create sense of ownership
Make emotional connection with your clients
Under promise and over deliver

I'm guessing its back to the marketing drawing board for some of us.

Innocence of the young

Often our young ones come up with the most curious quotes. Here are a few.

JACK (age 3) was watching his Mom breast-feeding his new baby sister. After a while he asked: "Mom why have you got two? Is one for hot and one for cold milk?"

MELANIE (age 5) asked her Granny how old she was. Granny replied she was so old she didn't remember any more. Melanie said, "If you don't remember you must look in the back of your panties. Mine say five to six."

STEVEN (age 3) hugged and kissed his Mom goodnight. "I love you so much, that when you die I'm going to bury you outside my bedroom window."

BRITTANY (age 4) had an earache and wanted a painkiller. She tried in vain to take the lid off the bottle. Seeing her frustration, her Mom explained it was a childproof cap and she'd have to open it for her. Eyes wide with wonder, the little girl asked: "How does it know it's me?

SUSAN (age 4) was drinking juice when she got the hiccups. "Please don't give me this juice again," she said, "It makes my teeth cough."

DIANE (age 4) stepped onto the bathroom scale and asked: "How much do I cost?"

MARC (age 4) was engrossed in a young couple that were hugging and kissing in a restaurant. Without taking his eyes off them, he asked his dad: "Why is he whispering in her mouth?"

CLINTON (age 5) was in his bedroom looking worried. When his Mom asked what was troubling him, he replied, "I don't know what'll happen with this bed when I get married. How will my wife fit in?"

JAMES (age 4) was listening to a Bible story. His dad read: "The man named Lot was warned to take his wife and flee out of the city but his wife looked back and was turned to salt." Concerned, James asked: "What happened to the flea?"

TAMMY (age 4) was with her mother when they met an elderly, rather wrinkled woman her Mom knew. Tammy looked at her for awhile and then asked, "Why doesn't your skin fit your face?

Customers for life

In this feature on the business of small business , I will be offering views on everyday topics that can make a difference in your business. If you want me to cover anything specific, leave a comment here.

Following the statistics on customer service, here are some thoughts on the value of keeping your customers for a lifetime.

Through out my many workshops and seminars conducted world wide at universities, small business fairs and exhibitions, book launches, business breakfasts and networking events etc, one of the issues I'm always impressing on the audience is this one. Take note of this message today and your business will thrive.

There's an old truth that one customer, well satisfied, is worth a fortune. Over and over again, I work with companies who are determined to improve their advertising to attract new customers. They spend fortunes looking for better copy, the write spokesperson or the right "media mix." All the while, current customers are evaporating or (worse) doing business with their competitors.

Imagine for a moment a brand or supplier from whom you or your family buy on a regular basis. Once you are happy with a product you are likely to return to this shop or supplier for many years, in fact in some cases both you and your family will return for a lifetime. What is the revenue generated by this supplier by simply keeping you as a client for the next 20 years? Lets also not forget about the friends and family you will be referring to the supplier for the next 20 years.

It is always easier and more profitable to keep a customer than to attract a new one. Advertising is expensive! Negotiating the first sale, learning the needs of the customer and serving them well is difficult. To grow your business, focus on repeat sales.

Your customers are your best source of new ideas and innovations to put you ahead of the crowd. Listen to them, honor them, go the extra mile and work with your customers to achieve what you both want: a satisfying and profitable long-term relationship.

Statistics to take notice of!

If you don't yet think that effective customer service is as serous as a heart attack then perhaps today you will change your mind.

A few statistics to take notice of:

90% of customers surveyed in 2002, listed "customer service" as one of the top three things that influence their buying habits. Of that 90%, 68% listed customer service as the most important thing; above the reliability of the product or service.
Gregory and Kuchinsky 2003.

Even in purchases of the most functional products, consumers tend to be swayed more by how a product appeals to their emotion and cultural values than its rational virtues such as durability or ease of use.

Only 11 out of 100 dissatisfied customers will place a formal complaint with business, but 42% of all dissatisfied customers will tell 20 to 25 people about their dissatisfaction.

For every complainer, there are 31 with the same complaint that never say anything.

93% of all unsatisfied customers do not repurchase from the offending business, compared to the 70% who remain loyal when their complaints are satisfactorily handled.

On-line Student Tutorials

This is a much needed idea aimed at students and school goers who fall behind at school or simply want to improve their grades.

An Internet business that focuses on supplying quality tutorials on the web could be lucrative. Imagine being able to offer courses ranging from how to understand Maths, Speak and write better Zulu and how to pass the science and biology exam. The range of courses on offer could be huge and could cover every aspect of school ranging from hobbies, education, sports, business, languages and much more.

The great thing about this idea is that once it is set up, your overhead costs are really low and you really only have to focus on marketing

So if you have a bit of capital, love education and are willing to commit for the long term then setting up an Internet tutorial website could be both enjoyable and lucrative in the long term.

This business can easily be run from home initially until growth demands
office space of your own.

Upside: If you remember your school days and the frustration of not understanding Maths, science or any other subject, or if you have kids in school currently experiencing the same challenges you would know that this business idea is a winner.
Downside: Its fairly easy to start-up and once you make a success out of it you can be assured that competitors will follow.



Verdict: A great idea for entrepreneurs with IT savvy, a bit
of cash and the drive to make it work. Initial set-up costs may be relatively
low but a solid marketing plan and budget to support it is a must. My
research has shown nothing similar in South Africa yet, so the early
bird is likely to grab market share.

If you need support with your business or business plans please contact us click here

The Big Idea - Making a difference

With another series of Big Idea workshops successfully completed, this time as part of the Small Business Week exhibitions in both JHB and Cape Town, where we also started working with and supporting SAB-Miller in their Kick Start program, I'm happy to report that we are making a significant contribution towards business starting and growing in many areas through out the country.

Last week saw us conducting workshops and an exhibition in Durban as part of the Durban Small Business Fair 2007. This image shows the head of our Big Idea business arm, Lluwellyn Diedericks with the Head of the Business Support unit of ETHEKWINI MUNICIPALITY Mr Philip Sithole.



The next Big Idea workshops will be taking place from 19-23 November 2007 at the
Royal Show Grounds, Pietermaritzburg, KZN where a whole series of workshops focusing on all stages of the small business process will be presented. I hope to see you there.

Small business funding more accessible

Even more great news for small business owners looking for funding this week as Standard Bank and Government sponsored Kula Enterprise announce new measures with which to make finance to small business more accessible. The credit indemnity model, largely based on the loan guarantee scheme found in the UK and US whereby the government and in this case Kula Enterprise. Basically underwrites the loan taken out by the entrepreneur. With the IDC announcing last week that it will be contributing R1bil towards a fund supporting small business, this is another major step in the right direction.

This is a major boost for entrepreneurs who may have become increasingly frustrated with the availability of loans and credit form the SA banking community. With the recent credit act making loan finance even more difficult to come buy, this agreement could not have come at a better time.

Finally Kula Enterprise is doing something useful with the more than R1bil funding they receive from the government, national and international CSI investors each year.

With much talk in the past year about strategies being put in place to make South Africans more entrepreneurial and our entrepreneurial rating in world circles sliding down the chart, its hard to ignore the simple fact that funding for start-up simply have not been accessible on reasonable terms to the thousands of would be entrepreneurs out there.

More on this in Business day and the SABusinessHub web forum

What will small business clients buy from you?

For many years entrepreneurs and small business owners simply did not consider the services of business coaches. For many years small businesses simply could not compete with larger organizations.

Today more and more small businesses are using business coaches to fine tune their organizations, skills and competitive elements. Is it any coincidence then that more small business are now taking on larger organizations and winning?

The top services small businesses and entrepreneurs are buying from me as a coach right now:

1. collaboration/tossing ideas around services

2. goal setting/achievement

3. training (manage better, sell and market more effectively, maximizing opportunities and budgets etc.)

4. problem solving/issue resolution

5. restructuring/redesign of how the business works

6. profitability focus

7. ramping up strategies/support/structure

8. new business start up design/support

9. support during difficult times/face the facts

10. working on vs in your business - see previous blog post

Small Business gets R1Bil cash injection

Small business in South Africa stands to receive a cash injection of R1Bil through the IDC. With the SA economy relying on small business to boost employment rates, international investment, exports and of course tax contributions, this investment comes as no surprise and for those who receive it as more than welcome.

Many will agree that investment itself is certainly not enough to answer the prayers of entrepreneurs around the country. What is need is a effective control mechanism through which the money is distributed and results measured. Lets ensure that the money reaches those who it is meant for and fulfill the purpose it was intended for.

The 1Bil mentioned above is certainly not all that goes into smme's. A quick bit of research recently revealed that that:

R83m of the of the Corporate Social Responsibility (CSI) budgets in the 2006/2007 period were used to support industrial innovation by enterprises and R48m was allocated to technology incubators that assist small enterprises to adopt and adapt new technologies. A further R10m was made available for a technology venture capital fund and R6m for the Technology for Women in Business programme.

If you are into these type of statistics I can further tell you that a further R1 billion of the 2006/2007 was given towards Government enterprise development agencies such as Khula, the IDC, Business Partners and the National Empowerment Fund.

The government understandably has been under some real pressure of late (finally) as few entrepreneurs, and the corporations who contribute the money have seen any notable results from these large investments.

Finally this year public outcry lead to new legislation governing the CSI industry with specific focus on effective management of funds and measurement of results created by CSI.

Lets not hold our breath while waiting for this money to come to an entrepreneur near you. Be proactive and assertive in getting the investments your business needs.

My comments follow the recent story in the Business Day

Weekly Humor: Can you guess the sex?

Female or Male?
Often other languages refers to objects as being either female or male. The ideas that follow here are mostly from my local newspaper who recently asked readers to suggest the sex of certain objects. See if you can guess!

SWISS ARMY KNIFE: Male, because even though it appears useful for a wide variety of work, it spends most of its time just opening bottles.

KIDNEYS: Female, because they always go to the bathroom in pairs.

HOT AIR BALLOON: Male, because to get it to go anywhere you have to light a fire under it.and, of course, there's the hot air part.

SPONGES: Female, because they are soft and squeezable and retain water.

SHOE: Male, because it is usually unpolished, with its tongue hanging out.

COPIER: Female, because once turned off, it takes a while to warm up. Because it is an effective reproductive device when the right buttons are pushed. Because it can wreak havoc when the wrong buttons are pushed.

ZIPLOC BAGS: Male, because they hold everything in, but you can always see right through them.

WEB PAGE: Female, because it is always getting hit on.

SUBWAY: Male, because it uses the same old lines to pick people up.

HAMMER: Male, because it hasn't evolved much over the last 5,000 years, but it's handy to have around.

REMOTE CONTROL: Female...Ha!...you thought I'd say male. But consider, it gives a man pleasure, he'd be lost without it, and while he doesn't always know the right buttons to push, he keeps trying.