Go from hustler to head honcho – a playbook for small businesses

Let’s face it. South African businesses are up against some serious odds. With one of the highest start-up failure rates in the world, such as 71% of small businesses started in 2022 failing within their first year, getting a small business off the ground is no small feat.

Access to market, costing and regulatory challenges are just three of the villains standing in the way of superhero-level success. The good news is that there is an ‘it-factor’ – it’s consistency, and with a little bit of grit and a generous dose of dogged determination, success is within the grasp of any entrepreneur.

The thing about consistency
There is arguably no entrepreneur out there who doesn’t dream of making it big. The pitfall in chasing that dream however, is thinking that there’s a quick fix to success. The key is to be consistent – to take small but steady steps towards achieving a goal, keep heading in the direction of your vision, and repeating until progress is made.

This is because strong, resilient businesses are built on trust, and the thing about trust is that it isn’t earned in a day – or even two. Trust is something that is built over time and through a consistent demonstration of trustworthiness. This can be said about every big (or small) successful brand or business that has ever been created.

Metropolitan, for example, has become what many have come to know and appreciate as a proudly South African brand. The journey to getting there however, was anything but an overnight success. To the contrary – it’s a brand that’s 126 years in the making, and that didn’t happen by accident.

Of course, not every entrepreneur needs to live beyond 126 years to see their vision come to life. There are many inspiring examples of South African entrepreneurs who have accomplished their goals by being consistent. Benjamin Nkanyane is one of those examples.

Benjamin’s story
Nkanyane was one of Metropolitan’s first participants in our inaugural Collective Shapers programme – an initiative aimed at empowering young entrepreneurs to scale their business, create employment within their communities, build their network and facilitate market access. An avid farmer, Nkanyane decided to start ‘Davhuha Farming Enterprise,’ which literally means ‘to grow.’

When COVID hit, his business was dealt a deafening blow, and he was on the brink of shutting down because lockdown regulations prevented him from getting his produce to market. But by participating in the Collective Shapers programme, he was able to turn things around, by taking full advantage of the initiative’s skills development, mentorship and networking opportunities.

His breakthrough came when he was able to use his newfound abilities to identify a gap –a demand for peppadews. All the while, he was taking consistent action towards keeping his farm running and working towards his goal of making a difference in his local community.

Today, he supplies major retailers like SPAR and has been able to successfully make the transition from selling produce out of the back of his van, to winning a major supplier contract. His efforts have allowed him to start a school feeding scheme and employ a growing team of seasonable workers. What started as a passion, turned into purpose, and by consistently investing time, energy and resources back into that vision, Nkanyane has made it happen for himself and his community.

Profit vs paycheck
Apart from the need for iron-clad resolve, no entrepreneur can talk about their major hurdles without mentioning rands and cents. Funding is one of the main boxes many aspiring business owners need to tick. In addition to this, there’s also the issue of needing to know how to handle that money and make it work for you. Doing that requires good financial planning.

Too often, entrepreneurs fall into the trap of thinking about their business profits as being the money that they are making when instead, it’s far wiser to separate personal finances from the financial state of the business.

Understanding that your business is a separate entity from yourself is quite important because as soon as you start to muddle the two, you are in very murky waters. In terms of your business, you should be clear about how much money is coming in and how much money is going out. Drawing a monthly salary is far different from taking money for your business’ profits.

Plan with the pros
Understanding important distinctions such as these is where having a financial adviser in your corner can make all the difference. It’s a big misconception that financial advisers are for business owners who are already making big money. In fact, you should develop a relationship with an adviser before you make it big – doing that will help you build the foundation for financial literacy and long-term financial wellbeing.

Financial advisers can provide advice and guidance on every aspect related to personal and business finance. This includes aspects like budgeting, setting financial goals, and having the right kind of insurance in place to mitigate the unique risks that face your business. As you start to build your business, you need to also have the right mindset to preserve it.

Think long-term. Think legacy.
There are entrepreneurs who build businesses and then there are entrepreneurs who build business empires. The sole difference between these two types of individuals is that the latter has a vision set on long-term success.

Small businesses – even ones that start out as micro-enterprises – have the potential to sustain its founders and community for generations to come. But building generational wealth takes consistency, careful planning and – you guessed it, time. If you’re smart enough to separate (in your mind) your personal financial wellbeing and the affairs of your business, you’ll understand the value of planning for your future while also planning for the longevity of your business.

This should include planning for retirement, as being self-employed means you’re the only one contributing towards your retirement fund, so it’s important to have an actionable roadmap to cover your later years.

You also need to consider what would happen if you pass away; how your ship will continue to sail if you’re not at the helm. You need to have a will in place. Further, the financial factors that will shape your employee value proposition – aspects like funeral policies or life cover for your employees – matter. You know what Spiderman says: ‘with great power, comes great responsibility.’

These are important pillars to build a business that can last for the long-haul – a venture that you can put your unique stamp on and know that it will thrive, despite the hurdles and challenges you’ll need to overcome along the way. If you’re going to put blood, sweat and tears into your business, you best make sure you can get something out today, but also tomorrow.