Interview with an Entrepreneur….(Part 2)
Last part we heard from our Christian entrepreneur about what he thought contributed to business success today. Let’s hear some more…
- How long did it take to compile the forecasts?
“It took me about a week to do the forecast with costs. I still do the forecast and budget every year so that we have a set plan to follow. I have a system of monitoring the sales and expenses on a daily basis and this helps to keep one step ahead of whatever situations arise. I spend about 30-60mins a night updating the figures.”
- Did you need capital to start your business, and if you did, do you mind telling me how much?
“As mentioned, by Gods grace I didn’t need a capital amount up front to start the business. I had no money of my own and I didn’t want to apply for a bank loan. We bought the business for about R240,000 and I made an arrangement to pay this off on a monthly basis as the cash flow came in.
At home, I had an amount of about R1,500.00 which I kept in my clothes cupboard. It was money that I used to pick up if I found it lying around the house or small change from other purchases. We used that money to buy some product for the first order we got, and it grew from there! ”
- How long did it take you to cover all your costs and become profitable?
“The way I planned the forecast was that we should be profitable from the start. It was only monthly running expenses that had to be paid at the end of the month. The business has shown a profit each year of trading to date. It has taken us about 6 years to get to a place where I can comfortably say the company makes an annual profit.”
- Did you experience pressures in the beginning?
“Yes, it was mostly the doubt of the business succeeding. There were personal pressures and family pressures. There were also business deal pressures and added stress wondering if suppliers would produce what we needed on time and in full.”
- Did you have a mentor, or someone who was able to guide and direct you?
“No, no particular person. There were quite a few people who gave me advice through the experience of working with them. I was able to witness first hand when situations went wrong and learn how not to do things! But, really at the end of the day, it’s my relationship with the Lord that is my guiding hand. There are answers for everything in God’s word and it is the best “How to…” manual ever!”
- Were you able to develop successful networks and how did you achieve that?
“Yes, I’ve been able to achieve some very successful networks because of communication and mutual respect for others. I have learned that one of the most important things in life are relationships. Good solid, productive networks are formed by open, honest and respectful communications with those around us. This is not restricted to business but applies to marriage, family and friendships as well. As I spend time with people, I get to know and trust them and the reverse applies.
Once again, I take my example from the Lord. Relationship bridges are formed out of serving others, putting their needs before mine. When we have this attitude towards our relationships they will be meaningful and long lasting.”
- Was your family negatively affected in the beginning?
“I think they were affected but I wouldn’t say negatively. Like myself, they were concerned about the future of the business. They could see that, at times, I was very worried. It was amazing to see how they encouraged me with words that I had spoken to them years before. Things the Lord had taught me to share with my wife and children, were coming back to help me. So, they were concerned, but also very supportive.”
- What do you perceive your strengths to be?
“I think probably my best strength would be communicating with others. Based on my relationship with the Lord, I strive to deal with people in an open, transparent and honest way. This has helped our business to form long term, healthy relationships with our clients.”
- What was your most exciting moment in the business?
“There have been a few exciting moments because of the growth the business has shown over the last 6 years. Now is one of those moments because we have just exceeded our best sales month since we started. The turnover is ten times bigger this month than it was in our first month of trading!”
- What was your most challenging moment in the business?
“There have also been a few of those…mostly relating to concerns over cash flow. When the bank balance is low and I have commitments to make, that is always a challenging time for me. Our staff are No.1 in our business, followed by our suppliers and then our customers, so it is very important that our employees’ salaries are paid on time. It has only been in the last eight months or so that I’ve learned to have peace during these tough cash flow times.”
- How difficult was it to find good staff?
“It was very difficult, and still is, to find good staff that are willing to work hard, to be loyal and honest. Finding the right person for the job takes time and skill. Great attention needs to be paid to the interviewing of prospective employees. It helps to have a guideline for interviewing candidates so that not too much emotion interferes with the selection process. When finding new staff, I pray hard to ask the Lord to put the right people across my path.”
To be continued…..