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BUSINESSLINK NEWSLETTER

SME BusinessLink Community Newsletter 25-31 July 2012

http://smebusinesslink.com

July 25, 2012Authored by: Phillip Chichoni

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BUSINESSLINK NEWSLETTERSME BusinessLink Community Newsletter 25-31 July 2012

ContentsFIVE REASONS YOUR BUSINESS PLAN WILL NOT GET FUNDING...............................37 WAYS TO MAKE RECORD MANAGEMENT EASY..................................................4HARNESSING THE POWER OF INTERNET AND SOCIAL MEDIA TO ACCELERATE YOUR

GROWTH.................................................................................................................6BUSINESSLINK PUBLICATIONS ON SPECIAL OFFER.................................................7ENTREPRENEURS PROFILES.................................................................................8LEAVE A CELEBRATION........................................................................................9TECH TALK: RESTORE A RECENTLY CLOSED TAB.................................................11WHY LEADERSHIP IS SO HARD...........................................................................11MEET AFRICA’S YOUNG MILLIONAIRES................................................................13FIVE YOUNG AFRICAN MILLIONAIRES TO WATCH.................................................13

This free weekly newsletter is sent to subscribers on the BusinessLink mailing list. If it has been sent to you in error, or you no longer wish to receive it, please reply to this email with UNSUBSCRIBE on the subject line. To subscribe just send an email to [email protected] with SUBSCRIBE on the subject line. Please pass on this newsletter to those in your network.

Don’t miss out on opportunities to grow your businessTo list your profile and / or advertise your products in this newsletter and on the

BusinessLink Community website, please see the back page.


mailto:[email protected]

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012 Let’s grow the BusinessLink Community together

Please send me your thoughts and feedback by email or post your comments at www.facebook/smebusinesslink or on our website. Invite your friends and contacts to subscribe to the free newsletter and also participate in our activities and accelerate each one’s growth! Best wishes in 2012.

Phillip Chichoni –PublisherCopyright © 2012 Admiral Business Systems (Pvt) Ltd. All rights reserved.


http://www.facebook/smebusinesslink

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Five reasons your business plan will not get funding

By Phillip ChichoniThis month I received calls from young entrepreneurs whom I helped in developing

their business plans a couple of months ago. The young man and woman, although having very different types of business ideas, had been asked by officers from the youth projects financier to come for interviews and to provide certain information. Now their worry was on how to answer questions they will be asked.

My advice was to be realistic and truthful and to make sure what they will say corresponds to what they had put in the business plan, except for changes which could have taken plan since then. This is where many enterprising young people (and even older ones) trip while trying to raise funds: they propose unrealistic business ideas. Financiers are experts in business; they deal with hundreds of businesses and can sniff any unrealistic aspects in your business plan.

Here are five things you need to be aware of that could scuttle your funding efforts:Failing to sell your idea in the executive summary. Busy loan officers may have

dozens of plans coming across their desks every day, so you have to capture their interest quickly. The executive summary is a snapshot of the whole plan. It should be written last and use facts rather than emotional language to show why your idea is a good business.

Inadequate knowledge of the industry. Research your industry thoroughly to ensure your business compares realistically. This includes aspects like how long it will take to get the product on the market, realistic costs of materials, and labor expenses. Bank officers will be able to research the industry if they haven't already and will sniff out any information that doesn't mesh.

A me too idea. A business that is not unique will struggle to make money. Explain what makes your product or service different from the competition. Highlight patents, copyright protection or a unique process or feature that only your company can provide.

Not proving that you have a competent team. Stress the special competencies and expertise of your staff and management. Show that you and your coworkers have the real life experience to be able to start, manage and grow your business.

Ignoring the competition. Don't assume that your company is the only one with the vision or process to create the products you have in mind. Focus on the competition and be aware of what they are working on.

Need help or information on business plan writing? Let’s discuss at the SME Businesslink page on Facebook, or send me an email: [email protected]. Don’t forget you there are many business planning resources you can download at our website http://smebusinesslink.com.


http://smebusinesslink.com/

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7 Ways to Make Record Management Easy

Good Business Record Management Means Less Tax Time Stress: Part 1

By the SME BusinessIink team If you took the time to make a list of all the tasks you need to do to manage your

business and then ordered them in terms of how much you liked doing them, where would record management come in? Two hundred and seventy? Or even lower?

But while most of us definitely consider business record management to be scut work and tend to give it a low priority, good record management not only makes our working lives easier, but can give us real stress relief at tax time. Here’s what you can do to make record management easy:

1. Keep your business and personal expenses separate.Sounds easy, doesn’t it? But this is the part of record management that trips up most

people. If you take a potential client out for a round of golf, for instance, is that a personal expense or a business expense? (The answer is personal, because green fees are not a deductible business expense.) Vehicles that you use for both personal and business reasons are another perennial problem. You need to know what qualifies as legitimate business expenses and what doesn't, and be sure that your business record management reflects this accurately.

2. Get sufficient documentation for all business expenses.Many business people make the mistake of thinking that "lists" are good enough for

record management purposes. For instance, they have a list of purchases and think that that's good enough in terms of claiming those purchases as business expenses.

In terms of good business record management, there are two points to bear in mind:a) Always get a receipt. Get in the habit of asking for a receipt whenever you make a

purchase - no matter how small. Little expenses add up, too, and you need the documentation for your business records.

b) Label your receipts, if necessary. Some receipts don't have anything on them except the date the item was purchased and how much it cost. When you get a receipt, look at it and write the missing/relevant information on it, such as what the receipt is for and the expense category.

3. Get a separate bank account for your business - and use it.While the fees for business bank accounts are notoriously high compared to personal

accounts, a business bank account is absolutely necessary for good business record management. A business bank account helps you keep your business and personal expenses separate. You will deposit all your business revenues into the business account, and withdraw any business related expenses or payments from the business account only.


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Next week, we will look at four more ways of making your record keeping simpler. Please send your comments, questions or advice on this topic to [email protected].


Need a Shelf Company or New Company Registered or want Tax Clearance Fast?Call Phillip Chichoni now on

0777 774 007

mailto:[email protected]

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Harnessing the power of Internet and social media to accelerate your growth

At the BusinessLink Networking Breakfast Meeting on Wednesday 27th July, 2012, Inbound Marketing expert William Makava will gave participants some valuable insights on the opportunities presented by the Internet and social networks to quickly grow their business.

Apart from being much cheaper than traditional marketing, the new media is very targeted. Instead of the “shotgun approach: of throwing your marketing message across the masses, such as what newspaper, television and radio advertising does, you get to target very specific demographics, consisting of people who need and want your product or service and are most likely to buy.

Instead of you approaching people asking them to buy your product, inbound marketing does it the other way round. People look for you to learn more about your product so that they can buy.

Have you ever seen a billboard advertising Google? Instead, people do look for Google when searching for information.

If you missed this event and wish to benefit from the presentation, you may get the DVD for only $3.00 before 31 July, 2012 or while current stocks last. (Thereafter it will cost $5)

The DVD is available at Crayseal Trading, 5th Floor, Hungwe House, Jason Moyo Street, between 1st and 2nd Street, Harare. Ask for Lloyd.

Forthcoming events: Wednesday 22 August, 2012: BusinessLink Essential Finance for Business

Owners workshop. Accurate costing, price determination and business risk and profitability analysis.

Friday 24 August, 2012: BusinessLink Inbound Marketing Half-day seminar. Holiday Inn Harare. How to make use of internet, websites, blogs, social networks and viral marketing to accelerate your growth.

Wednesday 29 August 2012: BusinessLink Networking Breakfast Meeting. Standards Association of Zimbabwe executive will speak on “How SAZ certification programs give your business an unbeatable competitive edge.”


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BusinessLink publications on special offer

Between now and 31 July, you can get the following publications at half price:

Business Planning Simplified handbook $18 special $9 The Entrepreneurs’ Guide to Starting a Business in Zimbabwe $7 special $4 High Impact Low Cost Marketing Strategies for SMEs $8 special $4 Developing a 3 step strategic plan to grow your business $12 special $6 BusinessLink Starter Pack CD- containing the 4 books on PDF $9 special $4 Seminar DVDs: Accelerate your growth in 2012 $10 special $5 Breakfast meeting DVD: Harnessing the power of Internet and social media to

accelerate your growth special $3

Get these publications and DVDs at Crayseal Trading, 5th Floor Hungwe House, Jason Moyo Avenue, btwn First and Second Street Harare.

If you are out of Harare please call us on 0777 774 007 to arrange delivery.


Have you enjoyed or benefitted from any of the

BusinessLink publications or events?

Please post your comments on Facebook

(search for SME Businesslink).

5 winners will get free to the next Networking

breakfast meeting on 29 August.

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Entrepreneurs profilesBy the BusinessLink team

This week’s featured entrepreneur::

Stowell MupanguriHow did your company come about? The desire to do what our competitors are not

doing and the inspiration to run a business that will enable us to change our word spiritually and economically. Spiritually by sponsoring the gospel of Jesus Christ which we believe has the power to change anyone who accepts it and economically by creating employment opportunities for the majority of skilled graduates roaming our streets unemployedWhat business do you do? The company provides:Networking Solutions to customers ranging from SMB to large enterprises in the domestic

marketSupplies and Supports Information Communication Technology Products and ServicesSupplies and Supports Electronic Power Systems and ServicesSupplies and Supports Electronic and Office EquipmentSupplies and Supports Telecommunications Systems and ServicesOur target market is the Internet Service Providers, Telecommunication Service Providers, Non-Governmental Organizations, Financial Sector, Government, Military, Police, Quasi-Government Organizations, Mines, Travel and Tourism, Health Sector. What challenges did you face during the start up phase? Working capital, grey market productsWhen did you get your biggest break? Last year November 2012What ambitions do you have for the company? Diversify into mining, agriculture and industrial lubricants.What success tips would you offer aspiring entrepreneurs? Be persistent, always have written down goals which are SMARTWhat kind of legacy would you like to leave behind?Wealth that will be enjoyed by the thousandth generation from me.


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Leave a Celebration By Milton Kamwendo“Don’t ask what the world needs. Ask what makes you come alive, and go do it.

Because what the world needs is people who have come alive.”- Albert EinsteinLife is a grand stage onto which we all enter, play our parts and leave. Some spend a

longer time on stage, some have bright lights shone on them, others have to be content with arranging the props or doing the makeup back stage. Some leave memories to be recited many times, others leave sorrows untold and other leave celebrations unbridled. What makes the difference is not so much the stage, but the actor. The challenge for all of us is to live a worthy life. You can never leave what you did not live. Indeed our names may not all be blazoned on the sky or tweeted across the internet, but we each can live a worthy existence and play our humble parts with grace, humility and beauty.

Live Daily When we are in our prime, death looks far and foreign. Sometimes we fail to recognize that each moment that we live is special and has its own distinct signature on time.

Everyday should be lived as though it is our last and only. What would you do on your last day, week, month, year or decade on earth? Faced with this challenge if you would make some serious changes in the way you are living then make those changes now! Life is too fast, swift and rapid. Soon it will all be over and you may have missed your whole life and your would have wasted the climax of your appearance on life’s stage. Imagine a play or game finishing and you did your play your best. Give your best effort to life. You cannot reserve your best effort for the dressing room.

Make a Difference Heroism is everywhere. Greatness is accessible and available. Perhaps not on the next popular podium or reality TV show but by your roadside or right next to your door. The key to a great life is to make a difference somewhere and to someone. It may be a small difference but it is never for us to measure the full impact of a small gesture. Great memories are created in ordinary moments. This moment is destiny’s launching pad.

Some people are looking for a troop of pied pipers to herald the season of making a difference. That would be a long fruitless wait. To make a difference find a need near you and fill it with excellence. Needs are everywhere and one does not need special endowments to meet and fill a common need. You are meant to be a blessing to


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someone. Your good deeds are an inventory of blessing that will be an answer to someone’s prayer.

Dream Daily Everything starts with a lonely, insignificant and fragile dream. Never let the genesis of a dream discourage you. Dream daily and wake up to pursue the dream until it is begging for mercy. Nothing is beyond improved or unable to benefit from change. For any dream there will always be naysayers and skeptics. The world would not be what it is were it not for people who are radical enough to be unreasonable. The few who ask: “Why not?” Until we dare to attempt the impossible we may never know the limits of the possible and we may never manifest any miracles. Believe in the beauty of your dreams and dream daily because dreams infuse life with passion and work with meaning. Fall in love with your dreams, else life may be empty and may not have any challenge with meaning.

In 1994, I bought a book entitled, “The 7 Habits of Highly Effective People.” I read the book with fanatical zeal. About two years later I came across a tape that had been recorded by the author and had the message of the abridged and compact Seven Habits message. I still have this tape after many years. Seeing it today, the wording on the tape is now faint. This is because I have listened to the tape more than 200 times.

Last week I got the news that Stephen Covey, the author of the 7 Habits book and tape that changed my life so much passed on. He was 79, a father of 9, husband of Sandra for a full 50 years and a recipient of The 2003 National Fatherhood Award among many other accolades that he has received in a lifetime of service and contribution. Here is a man who lived long, traveled wide, spoke extensively and touched many. His works live on beyond him and the force of his influence is beyond estimation.

On this stage called earth where we are all called to play our humble parts before our departure how are we playing your parts? Some are applauded, some are cheered, some are jeered and yet some are pelted off the stage. Your fate is your choice and what will it be?

I would like to hear what you think. Let's link up on facebook and you can follow me on twitter. Better still, please come and be part of our community of motivated people at: www.innov8motivation.ning.com.

Committed to your greatness.

Milton Kamwendo


http://www.innov8motivation.ning.com/

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Tech talk: Restore a recently closed tab

By Patrick Stafford

Every so often you may be browsing on the internet and then accidentally close a tab that you needed.

It’s an annoying feeling. But did you know there’s a way to restore that tab instantly? If you happen to have shut down that tab, then just click ctrl+shift+t. Then the recently closed tab will pop open.

This will work on any major browser too, including Internet Explorer, Chrome or Firefox.

From www.startupsmart.com.

Why Leadership Is so HardIt's very hard for leaders to show that they're good at leading, and that they know

what they're doing. Which is why sometimes they need to do a lot less.

By Brian Evje

Many burdens of leadership are well known and visible: getting people to back a common purpose and vision, managing change, and maintaining a balanced personal perspective. But there are a number of hidden challenges, common to both new and old leaders, that underlie the more familiar work. To be a truly effective leader, you're going to have to address them as well.

Let's start with identifying the three hidden challenges. I’ll call them competency, doing, and control.

How Can a Leader Show Competency?As an individual contributor, it’s easy to show that you know what you’re doing. If you

have mostly transactional and tactical responsibilities, your decisions, actions, and results are largely clear. However, as a leader, your portfolio is larger, more ambiguous, involves more people, and is more vulnerable to a wide variety of influences. With this comes both increased authority and less direct control over outcomes.

Many leaders mistakenly try to fill this gap by becoming “overly competent.” Usually, that means they invade someone else’s work while ignoring certain key responsibilities of their own. We see this in the start-up CEO with an engineering background who avoids his broader company responsibilities by staying immersed in the daily activities of the technology team. We might also see this in the corporate Vice President who is


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running a new cross-functional department; rather than genuinely delegating work to the team, she keeps them tightly tethered so that she won’t feel left behind.

Both of these micro-managers may be motivated by a desire to demonstrate competency in an area of their expertise (what they did in the past) rather than by focusing on the requirements of broader leadership (what they need to learn for the future.)

Leaders need to recognize that for them, competency is manifested differently than it is for their staff. A leader’s failure to adjust (or personal frustration at having to make an adjustment into new competencies) prevents one from leading fully.

What to Do When You Can't "Do" Anything Another common leadership inconvenience is the inability to directly “do” things.

Great leaders are directors of action, not necessarily direct actors themselves. This distinction can be difficult for some leaders to accept and demonstrate. If a leader is particularly attached to displaying personal competencies, he may fall into the trap described above and infringe on someone else’s work to prove his abilities.

Ditch the stereotype that says leaders must always be vigorous, action-oriented personalities with all the answers. Yes, leadership does sometimes require bold, visible action. But what about those situations when it is not appropriate? What is an aggressive leader to do when direct action is highly inappropriate?

Often, the answer is simple: Do less. Step back from a challenging circumstance to see the wider view – the people, politics, intentions, emotions, and energies involved. Resist the temptation to dive into problems with solutions. Press your teams for their best efforts in working through the issues. Direct the action, and help them think of a different way forward if they get stuck.

The Issue of ControlLeaders have direct control only over themselves. Yet many leaders believe they can

exert a special kind of influence over others simply by telling them what to do more persuasively, more clearly, or more forcefully. Or that by sheer force of charisma, vision, or intelligence they can move mountains and control outcomes.

Successful leaders learn to change the way they envision and enact control. They recognize the need to manage the constant process of ensuring that decisions are made by the people who need to make and own them.

Obviously, a leader often makes the final decision, and rightfully so. However, in the face of complexity and change leaders should aspire to include multiple (and dissenting) points of view in the pursuit of as much clarity as possible. This honest participation is made possible only when a leader loosens the grip on control.

Competency, doing, and control encompass many of the necessary, and inconvenient, lessons of leadership. Fortunately, there is a way for leaders to approach these challenges that is both productive and, ultimately, quite convenient.


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Copyright © 2012 Mansueto Ventures LLC. All rights reserved.Inc.com, 7 World Trade Center, New York, NY 10007-2195.

Meet Africa’s young millionaires

Five Young African Millionaires To Watch

There’s no money like young money.

While African millionaires and billionaires like Onsi Sawiris, Raymond Ackerman, Aliko Dangote and Deinde Fernandez may have more money than most of us can ever dream of, there’s one thing they can never buy: Youth. Even money has its limits.

But there are a handful of young Africans in their 20s and 30s who have built businesses and amassed enviable million-dollar fortunes. Call them million-dollar babies. While some are corporate animals; others are empire builders- like Ladi Delano, the restless 30 year-old Nigerian entrepreneur who founded Solid XS, a hugely successful premium Vodka business in China when he was barely 23 years old. He subsequently flipped his vodka company for millions of dollars. Today, he is a co-founder and CEO of Bakrie Delano Africa, a $1 billion investment vehicle committed to making acquisitions in Nigeria’s mining, energy and agriculture sectors.

There are thousands of young and immensely successful entrepreneurs across the African continent. There’s a growing number of Africans aged 40 and under who are legitimately amassing multi-million dollar fortunes. They don’t inherit stuff; they build it themselves.

Here are five you need to know:

Mark Shuttleworth, South African

Age: 38

Founder, Knife Capital


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When Shuttleworth was 22, he founded Thawte, a digital certificate and internet security company which he sold to VeriSign for $575 million in 1999, when he was 26. Shuttleworth used a fraction of his proceeds to start HBD Capital (now called Knife Capital), a Cape Town-based emerging markets investment fund. HBD has made a series of successful exits including Fundamo, a mobile financial services company which was acquired by Visa for $110 million in 2011; and csense, which was acquired by GE Intelligent Platforms the same year. Shuttleworth also founded and funds Ubuntu, a computer operating system which he distributes as free open source software. Shuttleworth has a net worth north of $500 million.

Magatte Wade, Senegalese

Age: 36

Founder, Adina World Beat Beverages & Tiossan

In 2004 Magatte Wade founded Adina World Beat Beverages, a San Francisco beverage company that manufactures coffee, tea and fruit juices using traditional beverage recipes across Africa and organic

ingredients sourced from smallholder farmers in Africa and Asia. Within five years of launching, Adina raised over $30 million in venture capital from institutional investors and the products began being sold by Whole Foods and United Natural Foods. Magatte stepped down from her position as CEO to grow her second company, Tiossan, a manufacturer of luxury skin care products based on indigenous Senegalese recipes.

Mike Macharia, Kenyan

Age: 36

Founder & CEO, Seven Seas Technologies

When he was 25, Macharia, a Kenyan national, founded Seven Seas Technology, now easily East Africa’s most reputable IT services firm. The $50 million (annual sales) company is a leading provider of integrated business and technology solutions across Africa in the telecom, financial, Real Estate, service industry and government. Seven Seas is gearing up to get listed on the Nairobi Stock Exchange next year.


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Yolanda Cuba, South African

Age: 35Executive Director, South African BreweriesOne of just two women to make it to this list. When

Yolanda Cuba was 29 she was appointed CEO of Mvelaphanda Holdings, a Johannesburg Stock Exchange-listed investment holding company. She was awarded stock options worth over $10 million which she exercised before stepping down as CEO last year. She subsequently took up a job as an Executive Director at South African Breweries. Cuba still serves on the boards

of South African blue chips such as Steinhoff International Holdings and Absa Group.

Jason Njoku, Nigerian

Age: 31Founder & CEO Iroko TVThe maverick Nigerian Internet entrepreneur is

founder of Iroko TV, the world’s largest digital distributor of African movies. Iroko TV has been dubbed the ‘Netflix of Africa’. Earlier this year, Iroko

TV raised $8 million in venture capital from Tiger Global Management, a New York-based private equity and hedge fund run by billionaire Chase Coleman. IrokoTV enjoys lucrative content distribution deals with Dailymotion, iTunes, Amazon and Vimeo. Njoku is unwilling to divulge figures, but analysts believe IrokoTV could be worth as much as $30 million. Njoku is the company’s largest individual shareholder.

www.forbes.com


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