Business Sustainability Percci

BEE Workshop
Business Sustainability

PE Regional Chamber of Commerce and Industry
19 March 2009

By: Elton Plaatjes
A N Damane; Generic Presentation

The seda Vision

to be a centre of excellence

for small enterprise development

in South Africa


The seda Mission

to promote, develop and support small enterprises
to ensure their growth and sustainability


seda Values

N - nurture
I - innovation
C - customer servi ce
E - excellence
R - resilience


Definition of Sustainability

Definition of the word Sustain:
1) to support; to provide for; to finance; to assist; to encourage
2) as the ability quot;to maintain; keep in existence; keep going; prolong; keep supplied with
the necessities.quot;

Sustainability originates out of Sustain
quot;forms of progress that meet the needs of the present without compromising the ability of
future generations to meet their needs.quot;

- World Commission on Environment and Development


Target Market

Approximately 20% of seda s focus will
be on Medium enterprises whilst the
Medium
Small, Micro (Formal, Informal) and co-
operative enterprises will get 80% of the
Small
Agency s focus

Micro & Informal


Market Chal lenges
CHALLENGES AND MARKET FAILURES

Inadequate skills and business acumen

Lack of access to information

Lack of access to markets

Lack of access to finance

Services offered too generic instead of differentiated and sector based

Non-involvement of provincial and local government structures

Poor co-ordination across government and other structures

Inadequate funding for and mission creep by service providers

Lack of clear principles and guidelines for participation by private sector

Poor monitoring and evaluation of service providers and small enterprises


Seda: Business Development Process

Seda
Seda Seda Seda
Business
Business Business Business
Grow
Talk Start Build

Pre-Start-up / BIET / Entrepreneurial Diagnostic Tool / SBAT / SME Costing / ACO / CPE

- Broaden markets - QMS
- What do you need - How do you plan
- Tenders & procurement - Procurement
- Can your idea work - Franchising
- Toolkits for trade shows opportunities
- Test your business - Develop business plan
& exhibitions - In-depth assessment of
idea - Improve busi ness
- Productivity business
- Practical planning planning
improvement - Exporting markets
- Business assessment - Management skills
- Business infrastructure - Mentorship & coaching
and referrals - Business advice & support
consulting


Seda Nelson Mandela Bay
Service Portfolio
Services: The Seda Nel son Mandela Bay branch offers an array of non-financial business development services,
namely;
JVs / Ownership Agreements / Business Registration / Business Plan
Finance & Legal
Development / Financial Management / IPR

Training / Mentorship / Skills Development Planning / HR Policy &
Human Resource Development
Procedures

Product Development / Process Development / Information Communication
Productivity Technology
Technology

Marketing Plan-strategy-research / Signage / E-Marketing / Trade
Marketing
Exhibitions / Market Facilitation

QMS Implementation / QMS Certification / Product Certification Testing
Quality
Certification CE Mark, GMP


The Bad News ..First

The rules that a successful business operate by today are very di fferent
from the rules of 20 to 30 years ago.
The widespread use of technology has dramatically cut response times and
elevated customer expectations of service.
Competitive advantage is the catch cry, but most business owners struggle
to articulate what their point of difference is.
The statistics are well known: a staggering 40% of all new businesses fail
within the first 12 months . Within 5 years, more than 80% will have failed.
And yet, peopl e are flocking to start up new bus inesses in ever increasing
numbers


Nothing is impossible


The Good News
What is it then, that sets apart the successful businesses from the unsuccessful ones? Here are
my top ten tips for creating and maintaining a successful business

1. Successful businesses have repeatabl e, scalable systems (Processes & Same
Experience)
2. They don t depend on one person (?!)
3. Successful businesses can articulate what makes them di fferent from others in
their field (Price?)
4. They always add value to the customer s experience (++++)
5. Use strategies that recognize and reward their employees (Do you like to be
rewarded?)
6. Most successful businesses have a powerful vision (Dream Big)
7. Planning short term, long term, medium term (If you have not?)
8. Product innovation re-create or die (Own what you sell!)
9. Surround themselves with the right support (Do you think you can do it all?)
10. Have an exit strategy (What?.......yes!.....if you can t don t sink the ship!)


The greatest di scovery of
William James
my generati on is that human beings can
alter their lives by altering their attitudes of
mind


quot;If you possess the market, you eventually possess the profits.quot;
Bill Gates

- Concentrate your effort on a mark et with huge potenti al but few competitors
- Get in early and big
- Strive to become the industry leader
- Set the industry standard to become the industry leader
Make your produc t the best
Make your produc t the most useful
Make your produc t the cheapest
- Establish a proprietary position own what you sell and protec t this
position
- Make your customers and strategic alliances offers they cannot refuse
- Continually invest in innovation to improve your produc ts and services


Quick Exercise

Let s use one of the bus inesses from the audi ence!
Any Volunteers!!!


Performance Feature
Com petitive Price
100
. Cus tom er Training

. After-sale s Support

. Guarantee
50

. Delive ry

0
. Solutions

Financing Product Im age

On-site installation Com pany Im age

Advice Product variations
M aintenance Support Sm all volum es

M abena M ahlangu Im portance to Custom er?


Competitor Assessment
PRICE M y Company
100
. GUARANTEE Compe titor 1
90 Compe titor 2
. PAYM ENT TERM S
80
70
. TECHNICAL SUPPORT
60
50
40
. ON-TIM E DELIVERY
30
20
10
0
. INSTALLATION SUPPORT

. DESIGN ASSISTANCE

SERVICE LIFE PERSONAL SERVICE

COM PLEM ENTARY SERVICES IM AGE

VOLUM E FLEXIBILITY UNIQUENESS
CUSTOM ISATION


Overall Health Check
P r i ce
P r o f it ab i l i t y P ayme nt T er ms
100
P r o d uc t i o n E f f i ci ency G ua r ant ee
C ust o mer C o mp l ai nt s D el i ver y Sp ee d
R ej ect s / D e f ect s T echni cal Sup p o r t

S t o r ag e I ns t al l at i o n Sup p o r t
75
S ecur i t y D e si g n S up p o r t

P r o d uct C o mp et it i ve A d v ant a g e I mag e
50
C U S T O M E R C O M PE T I T I V E N E S S U ni q uene ss

C U S T O M ER LO Y A LT Y C ust o mi sat i o n
25
P r o d uct Li f e S t ag e V o l ume F l exi b i l i t y

0
EM P LO Y E E R E T E N T I O N S er vi ce Li f e

EM P LO Y E E S KI LLS C o mp l ement ar y Se r vi ce s

P R O D U C T I O N C O ST C ust o me r T r ai ni ng

LO C A T I O N S O LU T I O N S

PR OD U C TION PR OC ESS EF F IC IEN C Y P r o d uct V ar i at i o ns

S T A T E O F F A C I LI T Y M ai nt enanc e Sup p o r t

EQ U I P M EN T O B S O LE SE N C E M ai nt enanc e C o st

M A R KE T V I S I B I LI T Y C us t o me r A c cess
M A R KE T S HA R E ( R / c) P r o d uct I nno v at i o n
M A R KET S HA R E ( U ni t s) T e chno l o g i ca l Lead er s hi p
T U R N OV ER P r o d uct A g e

YOUR COMPANY Com petitor 1 Com petitor 2


Your Attitude Contributes to Your Success
Harvard University found that when a person
gets a job or a promotion, 85% of the time it is
because of his attitude, and only 15% of the
time because of intelligence and knowledge of
specific facts and figures.
Yet, almost 100% of education rands go t o
teach facts & figures, which account for only
15% of success in life


Embrace Diversity BEE Can Work! !!


Can We Achieve Business Sustainability W ithout BEE?

Let s Consider the following;

the reality of the world beyond our own


Oliver Wendell Holmes

What lies before us, and what
lies behind us, are tiny matters
compared to what lies within
us


Thank You
Seda Nelson Mandela Bay
140 Govan Mbeki Ave
13th Floor Starport Bulding
Tel: 041 5022400

Elton Plaatjes
eplaatjes@sedaec.org.za


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