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Similar to IconInterview-TPRaymondAckermanEntrepreneur.doc
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- 1. 3 PAGES PULLQUOTE 1: It was a huge lesson to learn that you don’t need to have money. You need to have passion and a dedication to what you want to do. PULLQUOTE 2: If I hadn’t decided to start on my own, where would I be today? I’d just be a big corporate guy. PULLQUOTE 3: It took getting fired for me to follow this path and now it is inconceivable to me that I may well have remained an employee for the rest my life had that not happened. PULLQUOTE 4: Entrepreneurs are neither born nor made. FEATURE: ICON: Raymond Ackerman <HEADER> The Retiring Entrepreneur… <SECOND LINE HEADER - SMALLER FONT> <INTRO> Announcing his retirement as CEO in early 2010, and handing the reigns over to his son Gareth Ackerman, the elder statesman of South African retail, Raymond Ackerman, is the embodiment of the South African entrepreneur. The recipient of the 2010 African Access National Business Awards Lifetime Achievement Award, Nicholas McDiarmid spent a rewarding afternoon in his company, finding out a little more about his pillars of success. <BODY> A champion of entrepreneurship, Mr Ackerman, in association with the UCT Graduate School of business, and the University of Johannesburg, established the Raymond Ackerman Academy of Entrepreneurship in 2005 and provides aspiring entrepreneurs from disadvantaged backgrounds the necessary tools to succeed. Observing that its reach is inherently limited, Mr. Ackerman has recently published 'A Sprat to Catch a Mackerel', which condenses his practical and acquired wisdom into 53 principles from which to build a business, which are refreshingly practical and meaningful, and clearly based on humane principles, rather than academic ones. TP: Your father was an entrepreneur. Did you always assume you would be one too? Raymond Ackerman: Actually no - not at all. I’d been with Greatermans (which had bought my father’s company out) – for a good number years. and then I was fired! For “being too difficult” (this is what they said, not the view I had of myself). It was a difficult time because I’d been striving to get the principles of customer sovereignty that I believed in across to people, and it didn’t work. So I’d lost my job and was struggling to recover from the experience. At that point I was analysing my life and trying to decide which option I should take. Should I
- 2. emigrate, should I go into another company or should I go back to university? It was then that I learnt one of my greatest lessons, and it came in the form of advice from an American who said to me: “You need 90% guts and 10% capital.” It was this piece of advice that prompted me to start my business. What he was saying is that if you have passion, you’re most of the way there, even if you don’t have the money. And I knew I had passion for the consumer sovereignty principle – that’s what prompted me to go out on my own even though I had no money. What was important about the advice is that it wasn’t just about the importance of passion, but also about dispelling the myth that you always need lots of cash to start a business. It was a huge lesson to learn that you don’t need to have money. You need to have passion and a dedication to what you want to do. That situation changed my whole life. If I hadn’t decided to start on my own, where would I be today? I’d just be a big corporate guy. TP: What practical fundamentals are critical to business, in your view? Raymond Ackerman:Set the right goal: the consumer, not profit. Take care of admin stuff. Source the right merchandise. Everything must be geared for the consumer. We are all about quality, service and the right price. TP: How do you measure success? Raymond Ackerman: It has never been in money terms. I can honestly say that I have never chased money. If you can look yourself in the mirror and if you are close with your family, then that is the most fundamental measure of success. TP: You’ve remarked that when you started out as an entrepreneur, you encountered your fair share of nay-sayers. You’ve mentioned that you were cautioned that the day of the entrepreneur was over! It’s many years later. It’s a different country in many respects. What would you say to someone considering a similar path? Raymond Ackerman: Firstly, our economic growth depends on entrepreneurs. Reducing unemployment depends on entrepreneurs. I am sometimes concerned that many potential entrepreneurs are too afraid to break out of their comfort zones, fearing they may not have what it takes. It took getting fired for me to follow this path and now it is inconceivable to me that I may well have remained an employee for the rest my life had that not happened. So I champion entrepreneurship wherever I can. Because I think there are guidelines that are helpful and that make the path less treacherous. Most successful entrepreneurs create a business in the field they were employed in. They have learnt about what works and what doesn’t work and perhaps have identified a gap specific to that market. Those who choose an entirely new direction will have to summon all the passion they have to overcome their mistakes. However you go about it, make sure you are honest with yourself about your motivation for starting a business. Know the real reasons behind why you are going into business. If it is simply about the money, you will end up demotivated. We all need money, but
- 3. profit is the result of being in business, not the reason. Entrepreneurs are neither born nor made. Many circumstances and influences are behind the creation of an entrepreneur. I believe in mentorship, counsel, planning, focus and tenacity. When I bought Pick n Pay, the thinking was that it was too late; that the time for being an entrepreneur had passed and the circumstances of those days would not allow for it. My advice is to never accept someone else’s version of who you are. TP: Pick n Pay remains a family business. You’ve said that South africa could learn a lot about the value of family businesses from Americans. How do you view the value of family businesses in South Africa? Raymond Ackerman: There is a passion you find in a family concern that you don’t seem to get in other firms. There are not enough family businesses in South Africa. Too many family businesses sell out, and lose the chance to pass on a legacy. But, as with all successful ventures, one must consult widely to ensure ongoing success in a family-run business. It is not easy running a family- controlled business in today’s climate. We take Family Corporate Governance extremely seriously and there are rules that must be followed. Family members in the business need to complete at least a three year degree, and work outside the business for three years. And they earn there spurs. Our younger family members join the ‘Family Counsel’ when they turn 16 as observers and are given a small Social Responsibility project to implement and manage. This embeds one of my most important principles: The best way to receive is to give. One can be tough minded, but not hard-hearted. Conclusion The time spent with Raymond Ackerman conducting this interview was inspiring not just because of his stature; not just because of his success. He lives his principles. He speaks from experience, from his heart, and his very, very shrewd mind. Top Performing Companies salutes you, Mr. Ackerman.