Suits & Sneakers 3 Vusi Thembekwayo The Big Lie of Small Business YouTube
Summary
TLDRThe speaker delivers an impassioned speech about the power of entrepreneurship and the importance of thinking big in business. He shares personal anecdotes and stories of various businesses to illustrate the potential for growth and the pitfalls of remaining small-scale. He challenges the audience to embrace their power, to understand the value of networks, and to pursue education beyond formal degrees. The speech calls for a shift in mindset from small business to 'hyper growth' entrepreneurship, advocating for a philosophy-driven approach to building businesses that can fundamentally disrupt and improve the economy and society.
Takeaways
- 🎤 The speaker emphasizes the importance of recognizing and utilizing the power that ordinary people have in shaping the future, especially in a changing political landscape.
- 👟 A personal story about growing up with limited resources and the significance of wearing All-Star sneakers is shared to illustrate the contrast between personal origins and future aspirations.
- 📈 The speaker discusses the disparity in business growth between similar enterprises, suggesting that mindset and approach can significantly impact success.
- 💡 The idea that small businesses should not just stay small but aim for substantial growth and disruption is presented as a key to economic and societal advancement.
- 🏦 A critique of traditional financial systems like banks and stock falls is offered, highlighting the need for innovation and accessibility in financial services.
- 🤔 The speaker challenges the audience to rethink the concept of small business and to consider the potential for creating large-scale, impactful enterprises.
- 💼 The different stages of business growth are outlined, from startup to hyper-growth entrepreneur, with an emphasis on the rarity and importance of the latter.
- 🌐 The power of networks and the value of education in business growth are highlighted, with a real-life example of an entrepreneur who embodies these principles.
- 📚 The speaker argues against traditional business plans, advocating for flexibility, quick adaptation, and starting with imperfections.
- 🔄 The importance of breaking free from biases such as confirmation bias and status quo bias is discussed to foster innovation and change.
- 🙏 The talk concludes with a call for faith in the country's potential and the collective effort needed to build a better future for all South Africans.
Q & A
What is the main theme of the speaker's talk?
-The main theme of the speaker's talk is the importance of shifting from a mindset of small business thinking to one that embraces growth, innovation, and large-scale impact, particularly in the context of South Africa.
Why did the speaker mention All-Star sneakers in the beginning of his talk?
-The speaker mentioned All-Star sneakers as a personal anecdote to illustrate his background and to make a connection with the audience. It represented where he was coming from, contrasting with the suit that symbolized his future aspirations.
What is the significance of the businesses 'Lockin Culture' and 'Mr. Price' in the speaker's narrative?
-The speaker uses 'Lockin Culture' and 'Mr. Price' as examples to highlight the disparity in growth and success between two businesses that seemingly operate in the same industry, emphasizing the need for understanding the power of business growth.
What does the speaker mean by 'hyper growth entrepreneurs'?
-Hyper growth entrepreneurs, according to the speaker, are individuals who take a long-term view, do not focus on their own PR, understand the value of networks, and prioritize education. They are rare and are key to creating substantial change and growth in the economy.
Why did the speaker invest in the business idea presented by Charmaine, despite initial failure?
-The speaker invested in Charmaine's business idea because she demonstrated commitment, integrity, and exponential thinking. Even after initial failure, she was determined to see her idea through, which eventually led to the business becoming profitable and cashflow positive.
What is the concept of 'stokvels' mentioned by the speaker?
-Stokvels are a form of rotating savings and credit associations (ROSCAs) common in South Africa, where members contribute to a communal pool of funds that are given to one member at a time. The speaker uses them to illustrate the potential for community-based financial models.
What is the speaker's view on the importance of education for entrepreneurs?
-The speaker believes that education is crucial for entrepreneurs, not in terms of formal degrees or certificates, but in understanding the mechanics and finances of their businesses, which allows them to make informed decisions and drive growth.
What are the six things that the speaker believes are needed for entrepreneurs to thrive?
-The six things needed for entrepreneurs to thrive, as mentioned by the speaker, are: functional infrastructure, access to markets, strong administrative ability, the right people, and patient capital.
Why does the speaker suggest throwing away business plans?
-The speaker suggests throwing away business plans because they can become outdated quickly and may not adapt to the fast-paced changes in the market. Entrepreneurs should focus on starting, learning from mistakes, and iterating quickly rather than relying on static documents.
What is the speaker's final call to action for the audience?
-The speaker's final call to action is for the audience to have faith - to see the invisible, believe in the impossible, and trust in the unknown, in order to build a better South Africa.
Outlines
🎤 Engaging the Audience with Personal Stories
The speaker begins by playfully acknowledging the late hour and the presence of Gillan's music, which seems to have a profound effect on the audience. He expresses his nervousness and uses humor to connect with the crowd. The speaker then transitions into a more serious topic, discussing the shifts in power dynamics within the country and the empowerment of ordinary citizens. He emphasizes the importance of recognizing and utilizing the power that individuals possess. The speaker shares anecdotes from two businesses, one a personal story about his friend's business and the other about the growth of Mr. Price, to illustrate the potential for success and the stark differences in business outcomes.
🚀 The Power of Entrepreneurship and Growth Mindset
The speaker delves into the stories of various entrepreneurs, contrasting their growth and success. He discusses the journey of a friend who started a business in the early days and its comparison to the rapid growth of Mr. Price. The speaker also brings up the challenges faced by small businesses and the importance of thinking big to create substantial change. He uses the example of his grandfather's small business and its decline over time, in contrast to the exponential growth of Shoprite, to emphasize the need for scalable and sustainable business models. The speaker encourages the audience to challenge the notion of staying small and to think about the broader impact they can have.
🤔 Challenging Conventional Business Wisdom
The speaker presents a critical view of traditional business wisdom, particularly the idea of starting small and staying small. He argues that this mindset has been ingrained in people through various societal structures, including education systems. The speaker uses his experience from the show 'Dragon's Den' to illustrate the problem with small business thinking, highlighting the need for a shift towards hyper-growth entrepreneurship. He introduces the concept of different types of businesses, from startups to hyper-growth entrepreneurs, and emphasizes the importance of long-term vision, understanding the value of networks, and the significance of education in achieving business success.
💡 The Importance of Financial Literacy and Commitment
The speaker shares a personal encounter with a growth entrepreneur named Dog Wall, who demonstrates a deep understanding of his business's financials. This example serves to highlight the importance of financial literacy for business success. The speaker also discusses his experience on a show, where he was perceived as the 'bad guy' due to his tough questioning and feedback. He uses this to emphasize the need for commitment and perseverance in the face of challenges, as well as the importance of understanding cultural nuances and the power of language in communication.
🛠️ Rethinking Business Strategies and Market Needs
The speaker critiques the approach of trying to fix non-existent problems and encourages thinking about real market needs. He uses the example of a failed business idea from a show he was involved in, to illustrate the importance of identifying genuine market gaps. The speaker also discusses the success story of a mobile beauty salon business, emphasizing the entrepreneur's market research, integrity, and exponential thinking. He contrasts this with the previous example to show the difference between incremental and innovative approaches to business.
🌟 Embracing Global Thinking and the Six Needs of Entrepreneurs
The speaker challenges the audience to think beyond local markets and to build businesses with a global perspective. He uses the example of Facebook's widespread use despite its creator not knowing individual users, to highlight the power of thinking big. The speaker outlines six essential needs for entrepreneurs: working infrastructure, access to markets, strong administration, the right people, and patient capital. He emphasizes the importance of these elements in fostering an environment conducive to entrepreneurship and business growth.
🛑 The Call for Legacy Businesses and a Philosophy-Driven Approach
The speaker discusses the importance of building legacy businesses with a strong philosophy that transcends time and culture. He contrasts the approach of building small, sustainable businesses with creating businesses based on powerful ideas that can have a lasting impact. The speaker calls for a shift in mindset towards building businesses that are not just about personal success but contribute to the betterment of the community and the country as a whole.
📚 The Futility of Traditional Business Plans and the Need for Adaptability
The speaker argues against the traditional business plan, stating that it is outdated and not conducive to the fast-paced and dynamic nature of entrepreneurship. He suggests that entrepreneurs should focus on speed and adaptability, being able to move quickly in response to market changes. The speaker encourages entrepreneurs to start businesses without being constrained by rigid plans and to embrace learning from failures as part of the journey towards success.
🔮 Overcoming Biases and the Power of Faith
In the concluding part of the speech, the speaker discusses the psychological barriers that prevent individuals from acting on new knowledge, specifically confirmation bias and status quo bias. He emphasizes the need for faith - the ability to envision the unseen, believe in the impossible, and trust in the unknown. The speaker calls for unity and collective effort to build a better country, urging the audience to rise above political divisions and work towards common goals.
Mindmap
Keywords
💡Small Business
💡Disruption
💡Entrepreneurship
💡Hyper-Growth Entrepreneurs
💡Innovation
💡Philosophy in Business
💡Mentorship
💡Delayed Gratification
💡Status Quo Bias
💡Confirmation Bias
💡Faith
Highlights
The speaker emphasizes the importance of recognizing and utilizing the power that ordinary people have in shifting the center of power in society.
A personal anecdote about wearing suits and All-Star sneakers to symbolize the journey from humble beginnings to professional success.
The story of two businesses, Lockin Culture and Mr. Price, which started around the same time but grew at vastly different rates, raising questions about business strategies and growth.
The comparison between a traditional South African business selling 'Gorda' and a modern business, Cota Joe's, which achieved significant growth in a short time, highlighting the power of innovation.
An explanation of how 'stokvels' (a type of communal savings group) function similarly to banks, challenging the audience to rethink traditional financial models.
The idea that small businesses are often encouraged to stay small and not disrupt the status quo, which the speaker argues is a lie that limits potential growth and impact.
The speaker's grandfather's story of starting a small 'spaza' shop and the contrast with the growth of Shoprite, illustrating the difference between small business mindset and large-scale success.
The concept of different types of entrepreneurs: startup, survival, success, and hyper-growth, with an emphasis on the rarity and importance of the latter.
The importance of understanding one's business and financials in depth, as demonstrated by the story of a growth entrepreneur who knew his business inside out.
The speaker's experience on a show similar to 'Dragon's Den', where he observed a tendency for people to think small and the need for a change in mindset.
The story of an entrepreneur who pitched a bizarre product related to the human eye and anus, serving as an example of thinking too small and solving non-existent problems.
The contrasting story of a mobile beauty salon business that thought big and aimed to create an 'Uber for hairstylists', demonstrating an exponential growth mindset.
The six essential things needed by small business entrepreneurs to succeed: infrastructure, access to markets, strong administration, the right people, and patient capital.
The call to build businesses with a strong philosophy that transcends time and culture, as exemplified by companies like Apple and Google.
The need for a strong mentorship system and a culture of delayed gratification to foster a new generation of successful entrepreneurs.
A challenge to entrepreneurs to abandon traditional business plans and instead focus on starting, learning, and adapting quickly in a constantly changing market.
The speaker's personal achievement of being recognized as one of the top speakers in the world by a global organization, highlighting the importance of overcoming biases and taking action.
The role of faith in driving change and the need for South Africans to have faith in each other and the country's potential to overcome current challenges.
Transcripts
somewhere
some mana so I I know it's quite late in
the evening but if you give me the next
30 minutes of your attention I hope to
make it worth your while
before I start ah boy I'm nervous hey I
know what it is
it's Gillan and his stupid music so good
so good to us and play music like that
for black people because really feels
like we're hey hey where where I also
have to say that I I I find our
beautiful country fascinating did you
notice how old and illumos had they all
stars tied while they were up yeah
do you notice now I don't know if the
Lumos know this but the whole point of
the All Star was you never had to tie
the laces
hey man guys you must learn they the
comrades must levels my Levitz I'm gonna
be a bit difficult with you here today
I'm also going to be slightly
controversial if for no other reason
other than I think it's about time we're
in an interesting time in this beautiful
country of ours when never before has
the centre of power shifted from the old
structures established pre historically
through law today to the ordinary man on
the streets who exercises his right and
my view was that most of us don't
understand the power that we have and we
don't even know how to exercise that
power
so here are two interesting businesses
one of them was owned by a friend of
mine his name is 1d limb he tells a
fascinating story about how these
started locks and culture in the early
days and I don't know about you but mark
the reason I took this on very
interestingly is when I started speaking
professionally I used to wear suits and
all-stars never sneakers always
all-stars and clients and people would
ask me why and it wasn't again
it's cuz when I grew up I think it's
part of the reason I got quite emotional
earlier when I grew up the only shoe
that was branded my mom could afford to
buy us was all stars and so for me the
the suit represented where I was going
the shoe spoke about where I'm from and
I think many of us in the room can
relate to this so my good friend Wanda
started this interesting business called
lotion culture
he started it in 95 96 formally started
it in 98 at the peak of his business I
ran about 80 million rand and turnover
around the same time he started his
business 10 years prior this interesting
business was started called mr. price
mr. price today is just about an 11
billion or an business those numbers are
dated by two years so here's the
question if what one dealer does and
want him artha my good friend mr. price
does is the same thing why did one of
them odd grow with the other by a mile
here are two interesting businesses
I made an interesting entrepreneur
called Tebow tobol he operates and lives
in Alexander he's runs a business that
was run by his dad was run by his
granddad before him his business is as
puzzle his popular commodity of sale in
his puzzle shop is it Gorda all of us
here know about Yokota if you don't
you've not had a quintessential South
African experience now he's been running
his business for years but I asked him
when did you formally start take taken
over the business was when he left high
school in 2005 last year he employed
three people he did 53 thousand rand and
turn over the entire year as an
interesting business called Cota Joe's
was started by a group of people that
belonged to famous brands they started
their business in 2013 what do they sell
the same gada
with table cells in Alexander and yet
in three years they've grown their
business to 20 million rand though do 60
this year they'll do a hundred neck
they'll be doing a billion maybe in
seven years time if what he did were
terrible and what got the Joe does is
the same thing why is the tubs business
not growing
what's a bank put up your hand if your
mom and dad ever had a stock fell or
belongs to one my mother belongs to so
many stock fell she was broken the
second of every month I was like mom why
she's like I am a poor dog I'm like
and we're not allowed to
swear in my household that's why I speak
so proper it's true dusty does another
job you know shirk the black people when
he's born dusty started swimming cuz for
us
ayee iving houses are different I look
at my own household like my wife and I
grew up very differently my wife comes
from a proper posh background so when
our kids are naughty my son's name is
fussy
the third everybody ganja levels and
child levels levels when my son's Nortel
watch more chickens be she don't take
the corner I'm fascinated by this idea
of corners there's a black person I'm
like how is this a punishment and then I
worked it out you know why black people
never send kids to the corner cuz in the
in the rural areas will come from those
around us no cause that's gonna lean
pasta so my mother belonged to stock
fell on stock fell on stock fell there's
an interesting stock fell we met up with
in the Eastern Cape they're called sang
lore but they've existed since 1985 do
you know what a bank is a bank is a
stock fell the simple idea that you put
your money somewhere when Lucy needs to
buy a home he goes to the bank says a
bank I'd like to lend money what they do
is they collectively take all the money
you've put in as deposits lend it to me
if I'm a good risk price the risk
calling it interest they use this thing
called the interest rate and the worst I
behave as a consumer they primeplus me
over a 20-year period and I pay the
money back the bank makes a bit of
interest and they pay you back your
money so all the bank is is nothing more
than a stock fell that has the licence
to lend the money art so my mother's
belonged to a stuffed well this
particular stock feeling has existed
since 85 last year they collected three
hundred thousand rand in total
collections of the members of the stock
fell APSA has existed only since 91 but
epsilon she did 4.6 billion rand in
turnover now if what apps are does in
sahaba does essentially the same thing
then why are the people of oh no in the
Eastern Cape who belong to the stock
full of Sun globe are still ridiculously
poor and what I will argue here today
very simply is this that you and I have
been fed a lie the lie is about this
great idea called small business start
one just start they tell you and stay
small never disrupt don't move things
too much
employee
person maybe to you show me one thing
that you and I look at around here today
that's been changed or fundamentally
disrupted by small business you will not
find it
1978 my grandfather now late grandfather
started a business his business was as
puzzle and he took his garage looking to
make a bit of extra income and converted
his garage to a shop and the neighbors
would come down the street to buy for
monk from our grandfather's pazzo shop
to this day were famous in our home for
that special in the 1990s he expanded
who moved further up the road and up the
road there were two other houses and
into those two other homes he got into
their garages and converted those into
his puzzle shops and you know what
happened in the 90s
my grandfather was living large he now
had three spas of shops but he started
in 1978 when my grandfather died now
four years ago he died with one spacer
shop and not much money to speak of in
the same year 1978 when he started his
puzzle shop for young entrepreneurs met
in a small little town called
stellenbosch in the independent province
of Cape Town
hmm Cape Town Prairie and when they met
you know what they did they put together
a little bit of money one of them had a
bit of money to speak of his name was
Chris - he had started a business called
pepco a decade earlier so they put in a
little bit of money into the pot and
they created a business that was
essentially as puzzle shop they called
it shop right so in the same year my
grandfather started his puzzle shop so -
did whitey Bosson and his friends start
shop right shop right this year this
year will do one hundred and twenty four
billion or and and turnover my
grandfather died was nothing to speak of
my contention is that whilst there was a
deliberate system that sought to keep us
as a people disenfranchised the greatest
victory of that system is not that it
kept black people disenfranchised is
that it taught you and I that it's okay
to think and do small and this is a line
that's been fed so much to us that we
believe it we believe it it's permeate
even in our education systems we believe
it and so when we start businesses we
think small I can't tell you how many
entrepreneurs I see start a business
register go to the bank open get a bank
account go to stores get a tax clearance
and then start filling our database
registration forms just to get that one
tender because we're all thinking in a
linear fashion we're all thinking small
I just sell is going to be slightly
controversial if we really want to take
this country forward if we really want
to do away with this problem of 43 not
38 forty three percent unemployment of
young people under the age of 31 and of
that forty three percent unemployment of
those young people 67 of them are young
black of the component that's young and
black over 80% of those are young black
and female we don't change that problem
in any other way other than building a
country that's substantially better than
it is right now we only do that by
teaching the majority of people don't
think small it pained me when I was in
Dragon's Den watching people come to
pitch because it hit me over and over
and over again that specifically my
people were thinking in exactly
the same way so how should we be
thinking it's one thing to kind of spell
out the problem what's the solution
right my view and we talked about this
in our firm we run a fund there are four
different types of businesses the first
is a start-up wants to startup it's the
one guy it's him he does the job and
he's easy to spot too because he goes to
the client on the Monday meets him sells
to the client on the Tuesday goes to the
clients office and delivers the work on
the Wednesday goes to his office and
emails the client the invoice on the
Thursday phones the client asking for
his money and on the Friday he pays his
landlord
he's every single part of the value
chain that's not wrong except so many of
us have been taught that that's what
business is we don't know that there are
other phases of it if you're not a
startup you move a level up you become
what we call them off from a survival
entrepreneur they're easy to spot one
guy two or three people in the office
feels a bit important who drives usually
a merc why well because any
self-respecting entrepreneur knows that
the best car is a BMW no one drives a
merc this AMG for what for
if you notice surviving entrepreneur
what are you you then become what we
call a success entrepreneur now if you
ever read the Sunday Times or you read
the media in South Africa and you'll
hear them talk about these people call
10 to preneur of them are nothing more
than success entrepreneurs you know what
success entrepreneurs are people who
make money to show you that they make
money very simple I make it so I've got
to show you that I make it I wear the
right kind of suit I live in the right
kind of suburb I Drive the right kind of
car I send my kids for the right kind of
school the other word and my good friend
Ilan who I saw earlier calls them is
lifestyle entrepreneurs I make money to
live the right kind of lifestyle notice
we've not created anything here we've
not unemployed more people we've not
built the country we've not grown our
GDP we've not done anything to create a
better country all we've done is we've
taken a few people and given them a
better lot so that's happened what's
really required is for us to create
hyper growth entrepreneurs the thing
here is these people are very rare very
rare because one they take the long term
view two they don't believe in their own
PR three they understand the value of
networks is not the network but the
ability to unlock value in that network
and three and four but perhaps most
importantly is they understand the value
of education not a degree not a
certificate education two days ago I had
a guy walk into my office he's a growth
entrepreneur this guy he just doesn't
know it he's an engineer he's 34 years
old dog wall was his name and always was
very interesting cuz he came to my
office it he's looking for a bit of
funding he's got contracts that he's
been servicing has been trying to
finance the contracts themselves it's
just not working his this to me I needed
a bit of funding I said what do you need
debtor equity and we sit down we'll look
at his balance sheet and here's what I
found fascinating about on doors he's an
engineer by training but when I asked
him specific questions about his
business the mechanics of how it works
and then the finances of that business
he knew it backwards he knew how much of
his overdraft he used on which month and
what the interest rate of their
overdraft was and what the interest
portion cost him in that overdraft he
knew how much his tax liability was
gyah what is that liability was most of
us don't know that who run our
businesses he knew what his capital
structure was as an engineer know what
his capital structure is yet this guy
just does six seven million rand a year
but he's a growth entrepreneur he's
genuinely interested in building a
better South Africa so I was on the show
unfortunately I since learned that I was
the bad guy on the show did you know
this because I was like but I'm the nice
guy
but what then I got a place people like
Bush yes you're so mean yes well you
know the worst thing a black person can
say to you I don't know you know what
means there are no words for you there's
just no words I can't explain it again
this is what I love about this country
the nuance of what we miss right I mean
I I you know I you know there are
certain things that where I come from
that when you say them they have such
depth meaning and substance a simple
thing like this
now I could say that in the boardroom
but yeah the other guys wouldn't get it
if I said to a black person even if they
had two PhDs and they were chairman of
the board we are going to the stratum
Chad you said to me you don't miss it so
laughs I would love this about this
country right another one is how we
greet you ever notice yeah you're not
black people can screeches I was saying
a word it's like you know this is this
is a - how's it how's the family has the
kids how's everyone how's things since
I've last seen you how are you all of it
with Chester and the other guy replies
the orders on reply just a wink you know
the wink is the wink is we're all good
it's all good the home long got approved
we live in large it's okay one wink but
here's what I really love about us I
don't know if you know this but where
I'm from we speak in numbers numbers but
for us numbers is a language so if you
want to say to someone that you are
uncomfortable you need to go to the
lavatory to relieve yourself what you
would say is ADA I'm gonna buy your size
six nine you four five rooms of what a
second of ma'am write it down I'll
explain it when we're done
very quickly I'm running showing town
but I just want to quickly show you two
things so I was on the show Dragon's Den
and this is how I came up with this
theory about the problem with small
business I'm going to show you two
examples of entrepreneurs who came into
the show and other thinking was wrong
the first con would introduce you to is
the president he called himself mr.
president but mr. president had a theory
his theory was that the eye has as much
intelligence and sensitivity as the anus
two things that should never ever be
compared but he compared them then
proceeded to tell us where that the show
was shot in August he said by December
that year which is about three maybe
four months by December that year his
business idea which was about
understanding the sensitivity of the
anus as an intelligent body part would
be worth 1 billion rand necessarily
wouldn't invest we thought the idea was
just stinking but have a quick look at
mr. president guys can you hit play
absolutely this is what looks like
and it's been patented as such as an
application what you see it around ya
what you see here is a package of
different items all these items are to
help an S or to monetize the opportunity
study the behavior of the human eye in
relationship with the human anus
nobody has ever conducted us the human
eye relationship absolutely the human
anus except I think honestly I think the
it's just let's just get to the point
here what I discover is the fact that
these two organs are equally intelligent
as far as sensitivity is concerned we
have a deal locally and in the u.s. all
right locally there's the stores there
the the brender we have a deal with they
have a 140 stores across our car they
should I say the name is micro stores
locally
mica so Marcus stores have agreed to
stock your product
absolutely they need about ten thousand
year to get a start it's a cash deal the
testee yes
deliver I get paid they're down talking
this is just not my game and I'm worried
that I'm gonna be flashing money down
the toilet yeah I respect I have to say
that I'm out
Thank You dick wizard in kuntum Taba but
unfortunately I won't be parting with my
money today oh ma you know there are so
many other challenges in South Africa at
this point in time and yours I do not
think it's a serious priority
thank you very much do I have to say no
I already said don't you love levels
response so when we were doing the show
we called lay with the Oracle because
someone would come and present something
stupid and they were just like you know
the philosophy of what you're doing
we're like lever no it's stupid it's
challenges now there's an interesting
idea here's how it actually worked
listen to this it's a dispenser you put
water in the dispenser you take your
toilet paper double-ply I hope and you
would put the toilet paper in your hand
and before you use it apply as it were
you would dispense water into it to make
it soft and wet because if you wipe with
something that's soft and wet it wipes
better than if it's hard and dry
fascinating except that there's a little
thing called wet wipes I don't know if
you've heard of them you've heard of
them you buy them at disc em you know
Ivan saltzman's business you open it up
in the wet wipe it comes out the way it
is so what's the tund it's real problem
here's got two real problems the one is
his thinking is wrong he's trying to fix
a problem that doesn't exist a lot of us
do that you've fixed a problem that
doesn't exist why well because you go to
an education system that tells you to
identify issues that are there apply
problems that already exists or
solutions that already exist and hope to
make it better than everybody else
most of us in truth are a dummy
community we copy the neighbour that's
why we drive the same brand of car we're
the same brand of suits live in the same
suburbs send our kids to the same
schools because as human beings we find
I don't know if you know this but
psychologically we find value in the
tribe that I belong to a group of people
now the second gentlelady is very
interesting I won't waste much time
watch this
I made this investment so badly because
it's going to be the key to starting up
my business and to making a success of
it and pursuing my entrepreneurial
dreams 360 mobile beauty is a mobile
beauty salon that offers mobile
Beauty hand services to our clients all
in the comfort of their own homes 360
Beauty just does away and moves away
from traditional salons as we know them
we do away with brick and mortar and by
by leveraging innovation and technology
and mobilizing our technicians we offer
a quality unique service that's
different from the norm in a time where
time itself has become very expensive
and people are on the go and don't have
time to sit in traffic waste petrol get
to a salon even for the gentleman and
still have to wait for your stylists
then be rushed through it because your
stylist is trying to move a lot of
people to the chase for them to make
turnover I've adopted innovation through
my cell phone mobile app and I've
mobilized my technicians to deliver our
service in the comfort of our clients
homes at their office attend events
wherever they choose where they in terms
of revenue generation have allocated and
I've broken it down to two segments
services and product because a lot of
salons are making money from product
sales
I've apportioned it to say 60% is in is
is raised from from sales 40% is raised
from product I've a located a minimum
spent for us to be able to go and render
the service to a client of 800 brands
this is based on the research that I've
done with salons and the prices they're
charging for services and they like 800
renders based on what it's based on what
a woman with Spain for a here for her
nails for a pedicure for treat so this
is average spend so this is every space
so for someone to be able to book with
us and for us to go to them they need to
be spending 800 rands either both
service and product or product alone or
service my challenge is I'm not
convinced of the numbers you know I'm
not I'm not convinced that there's a big
enough market that is going to be
spending 800 rent each time no I
completely differ
but how big is that market doesn't the
point I'm making is growing companies
and South Africa at the moment is kinky
they sell here average of two thousand
five hundred bucks yeah we can split it
two ways because I can support with a
complete development of the app from
office and really just remodel this
thing we can rework it together but I
really like I think I like head thinking
and we could really work this thing
together nicely
I think a five-way split on the 350
would be would be a great to the vote of
confidence and you as a person are the
two of you interested before we even
consider it
are the two of you interested in
diluting any further so for me I
understand the risks of what she's
getting good to say it for season I mean
who salutes and gladly sir I'm sorry I
mean very quickly what did she do right
one she knew her market did the research
this is the basic stuff too she came in
with uber amounts of integrity she'd
actually prepared she walked in but
three and this is for me what got to me
about this young lady is she was
thinking in an exponential way she
wasn't thinking incrementally she
actually thought about the problem as it
exists and how do you create a solution
to the problem that is not only
sustainable but scalable building an
uber but for hairstylists now what many
people don't know who watched the show
his ruin'd granted money to do the show
this was our own money so if I commit
two million I ran to a single business
I'm committed that's it I'm in so we put
in about eight hundred thousand ran into
this young lady at various stages in her
business she's only just turned cashflow
positive but at each time when we've put
in money there's been so much dilution
in the business that I now own probably
less than 0.1% here's the thing about
Charmaine which makes her amazing she
had the courage to see it through so we
gave her the first batch of funding with
the first batch of funding she went to
market and tested the business and it
failed it didn't work
of the five of us three felt she should
stop
she didn't take our advice she kept
going she left her flat sold her home
moved back into her parents house sold
her big a button sold her car moved back
into a parents cos took the proceeds
from the car and then funded herself for
a further three months when we saw that
she was committed put in a bit more
money and a bit more money and below is
not really supporting her and now she's
profitable and cashflow positive so the
main idea here is that it's possible if
you've got to stop thinking in the small
business way she's not trying to start a
small business to create an uber for
hairstylists is not thinking small her
market isn't Joburg it's Joe Burke in
Paris and New York and Moscow in London
that's her market and she can if she
wants to each and every single person in
this room has a Facebook account yet the
creator of Facebook doesn't know any of
you exist because the power of what the
Americans do is they teach their
children to think and build for the
global community we teach them to think
and build for the people around the
corner so if you think about it didn't I
said this to the minister small business
entrepreneurs are not we don't ask for a
lot we need six things six things just
six just six things
give me these six things I'm happy first
thing amis an infrastructure that works
roads without potholes government
departments that work so when I need a
text parents I can get it quickly when I
want to register my business that
happens quickly second thing you must
give me access to markets
I need that third strong administration
ability fourth the right people and here
is the real challenge we face with
helping entrepreneurs build businesses
today it's the people smart people who
are very well qualified and able don't
start businesses they get high-paying
executive jobs and companies and they
stay there and most of them think about
it they come up with the idea but they
never leave and so because of that in
truth you don't get a ratchet up of
talent coming into the entrepreneurship
ecosystem and finally they need capital
the money doesn't have to be cheap but
it does have to be patient which is why
we can't be asking our banks to do it so
I want to close very quickly with this
if you think about it there are three
different ways people build businesses
so what do we need we need four things
the first thing we need is people that
build with a philosophy I come from a
town should have called what Ville in my
Township called what Ville right across
us was a small it was another Township
called Acton Ville and the only thing
separating what Ville from Acton Ville
was a railways
that used to run across it's actually an
interesting story what Ville was a
massive Township and the apartheid
government understood that the bigger
the Township got the less their ability
to control the people who lived in it so
what they did was they split the
Township in half took families and moved
them to another Township now called
Davidson in the East Rand and Anne apart
from which they moved them they moved in
a new community of people Asians Indians
specifically and it was called Acton
ville in the Township that I come from
the same shops that I went to eyes to
buy fish and chips for my mama she sent
me there or cigarettes for my uncle
those same shops are still there because
whilst in my Township we were building
small little spacer shops to sell loose
straw the Indian people across the
railway were thinking differently and
they were thinking about how do we
create legacy businesses
so none us who started with a small dry
cleaner then moved out into a sports
business then moved into a food business
on all three of those businesses because
their thinking is at a different level
now I'm arguing that we need neither the
sustain or legacy thinking what we need
in South Africa today is we need a
philosophy of thinking we need people
that are going to build businesses on
the premise of a philosophy what do I
mean by a philosophy something that is
just not relevant to the time so when
Steve Jobs started Apple What did he say
he said I want to build a business that
will enable humanity and computers to
have an intuitive relationship that's
why an apple is easier and more friendly
to use than an Android device it's not
by mistake it is
it is
upgrade yourselves Congrats upgrade
yourselves
yeah levels to these things let vents
must listen to aka
so what do we need to do we need to
start building businesses with
philosophies not just another me to
business or just another sustained
business but a true business with a
philosophy and a business with the
philosophy is a business that has an
idea so strong that the idea transcends
time transcends culture transcends
people the idea holes you know what the
philosophy for Google is do no harm
whatever they do however much value they
add in community whatever information
they amass all they saying is we exist
for the simple purpose of doing no harm
Virgen says make money have fun
tell me that that's not an idea that
transcends time and culture and so the
whole idea is we need to start thinking
about building philosophy businesses
that's how we get the country out of the
mess second thing is we need a strong
system of mentorship this is a real
problem because those of us that make it
never go back to help those that haven't
if I may and my fellow South Africans of
different demographics please excuse me
for a moment let me say this to my
people us as a people must be the only
people that measure our success not by
how many other successes we create but
by how many failures we see around us we
make money we move out we buy fancy cars
then every Saturday we go back to the
places from which we come we find our
friends who couldn't make it out we
stand with them at that she sang Yama
just so we can show the little that
we've amassed and until we create a
mindset where we go back to build those
who need to be built we will not create
a better South Africa
the third and I feel really strongly
about this I don't know I heard a sign
you spoke about it I wasn't there when
she did the intro but we really need to
begin to reward a culture of delayed
gratification delayed gratification
delayed gratification doesn't mean no
gratification it just means if you can
wait wait because your time and
opportunity will come there was a clip I
thought about showing here but I didn't
a young man who came to Dragon's Den
raised two million ran from me as it was
and I funded him his name was Johann and
Johann came with his dad I gave him two
million I gave him two million on the
premise of what he committed to me on
the show now the contract for the show
says that we have only one proviso his
dragons that we can do a due diligence
after the show and when I did the due
diligence I asked him very specific
questions about how he conducted himself
and his business and he gave me very
specific answers and the only thing I
was asking him was I was trying to
understand the man's life style has two
million rands a lot of money when I give
it to you where is it going to go then
after that was done in our office we did
an audit and when we started doing the
audit and checking the information
you've given us we actually understood
that his problem is he's a brilliant
business person he's just very bad at
managing his personal lifestyle and so
because he mixes his business life with
his personal life his business is not
investment worthy this is a culture of
conspicuous consumption where because
you have it you need to show you have it
you ever thought about what we do we buy
things we don't need to impress people
we don't like or won't even remember
that we bought those things it is the
most fascinating mental thinking
fascinating and finally this is the
challenge to those of you here who are
budding entrepreneurs put up behind if
you've written a business plan throw it
away
in fact I'll make it even brief on the
recommendation burn it and I want you to
watch every single part of it burning
you know why because a business plan is
a lie you know the history of business
they were created in 1930s by the
Americans you know why they created them
because in 1929 this small little thing
called the crash happened in Wall Street
and when the crash happened the
Americans wait wait
they went wait why did the crash happen
it crashed because we lent money to big
businesses without assessing those
businesses plans yeah we need a way to
assess their plans and so they came up
with can you believe it the very same
system we used today of writing business
plans SWOT analysis strengths weaknesses
their inner the strengthen the we and
then the opportunities and the threats
then you put it on a slide whoa investor
but strength and then I've got
weaknesses and then so the Americans
created that system but they created it
for big businesses as an entrepreneur
let me tell you I write a business plan
in Jan and March it's not it's useless
because the market has changed new
competitors have come new people are
doing new things the product I wanted to
launch is no longer relevant my only
speed my only speed as an entrepreneur
is the speed of light and so the only
resource you have as an entrepreneur to
compete with big businesses is you can
move faster than they can that's it
because you cannot box them you don't
have more money and you don't employ
people who are just as smart as the
people they employ but what you can do
is you can move much much faster you can
get to the customer quicker you can
service them faster and you can stay
much closer to that customer stick to
that and so what I'm saying here is we
need to think about starting businesses
just start throw away the business plan
start start badly make a mistake fail
make a big huh Morris come back do it
again but just start now that I've told
you everything I've told you I thought
about what's going to be my dusty rich
moment
yeah yeah
now I was gonna take off my pants but
hey this whole room would go dark man
there'd be no space it just wouldn't
work wouldn't work because you know
dusty I'm Zulu I mean say I'm working
with different equipment here chief
the reason I'm wearing pants is called
asset management risk management complex
different you and I cuz when you took
yours off I was like where where's the
speed where's this raise it as my system
like palace can you see it where it's
not there man now so in december this
year i had the amazing privilege there's
a global organization called meetings
net
it's the largest gathering of meetings
planners and corporate companies around
the world about 12,000 of them and every
year they issue a book it's called a
golden book and it's the book of the top
speakers in the world that year they
only put in 12 it's never an ordinal
fashion so number one is not number one
number twelve not number twelve
they just say these the top speakers in
the world this year twelve of them in
the 68 year history of this being done
know south african has ever been on the
list
no african has ever been on the list no
person of color has ever been on the
list this year in December I was really
humbled I broke all three of those
records amazing
and I I just I don't know where all of
you are from a faith perspective but I
do want to say that it's not me it's his
God has given me the most incredible
ability and talent now that I've told
you what I've told you let me tell you
why after over a decade of speaking in
now 49 countries around the world you
are likely to walk out of this room and
do absolutely nothing about what I've
told you she'd hit me about six years
ago that I was working with people all
over the world and speaking and yet
every time I would speak my business
model depended on them not acting so
they'd bring me back again so I assured
my I told my team my research team I
said find out for me why do human beings
and look for new knowledge only to take
the new knowledge and do exactly the
same old things that were doing with it
before it sounds stupid and here's what
we found each and every single person in
this room is held prison by two biases -
the first is the confirmation bias all
of us live in the world where we look
for information to confirm the beliefs
we deeply hold you know the country's
doing better just y'all look Jacob
Zuma's five in Kelantan law again
no he only fired him once yeah but the
kid he's done it some Harvard professors
did a bit of interesting research and
this wouldn't be a professional talk of
it and use Harvard you see did you
notice how my accident agent I said some
Harvard professors Harvard what have
that it's Harvard
you must lift it at the end Harvard the
DS silent yeah but some Harvard
professors did some interesting research
in the 1980s they took two groups of MBA
students in fact they took a single
group of an MBA class was 40 of them in
splitted into two 20 each they then took
pieces of research and gave them to
these groups the pieces of research
proved a single thing so could you
imagine where took some papers and
research and gave it to this side of the
room that proved that the sky is blue
then I came to this side of the room and
gave you pieces of research that proved
that the sky is pink and at the end of
the day you believe the skies blue you
believe the skies pink but we're talking
about the same sky the following day
they came back now these are smart
people top 1% of the intellectual
capital of the world MBA students at a
Harvard Business School and they took
the research they'd given to this group
and gave it to the other and the
research they'd given to this group and
gave it to the former they took the
research that proved the sky's pink and
gave it to the group that believed the
sky was blue and took the research that
proved the sky was blue and gave it to
the alternative group but here's what
they did in what was 80 pages of hard
heavy statistical data they left three
small traces in bullet points of
evidence that proved what they believed
the day before and without fail both
groups at the end of the day found those
three pieces of evidence and defaulted
to the belief they held the day before
even in the light of overwhelming
evidence to the contrary because as
human beings we are hard-wired to look
for information that confirms the deeply
held beliefs we have the country's going
down so you drive past the you drive
past a traffic light and there's a
person begging you see I told you that
country's going down if you look for the
evidence you'll find it the second thing
is this the status quo bias most of us
like things the way they are you know
human beings are fascinating creatures
we are the only creature that is adapt
to change and yet hates making the
change each time it needs to because I
don't know what you when mondello's
president I'm like yes my band
Stane whose table now who was Tom and
the trouble came oh he's smart Tom Oh
stay and then tell was going with like
ah guys and then Halima came we were
like who's the snow oh we don't have to
worry he's going okay that's cool
and then Jacob came yeah
but the status quo bias simply says you
and I will look for every piece of
evidence to support the status quo as we
know it the reason I will tell you what
I have told you and I've noted some of
you taking notes I'm very happy to share
a full copy of this presentation with
Mark and Mark you can send it to
everybody here I prepared it just for
you you can have it and do it that what
you like
but the reason we are likely to do
nothing about what we've learned here is
simple because we like the status quo
and we will look for evidence to confirm
what it is we believe this beautiful
country of ours is at an interesting
time it is a time unlike any other it is
a time when we all of us sis of Africans
need to pull together to build a country
worth living in because regardless of
your race I can assure you we all want
the same things we do it's the politics
that divide us you know we want you want
a country where you can jog it 11
o'clock at night and you don't have to
look over your shoulders well if you
could harms driving out of you and you
went to a public hospital you would get
a grade public hospital service well if
you sent your child's with a public
school around the corner they would
receive a global standard of education
we all want the same things but in truth
we are divided because we forget that
what this country needs from all of us
is a little bit of faith what is faith
faith is the ability to see the
invisible believe in the impossible and
trust in the unknown and so I wish you
your companies and your families in this
beautiful country of ours just a little
bit of faith thank you very much
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