Suits & Sneakers 3 Vusi Thembekwayo The Big Lie of Small Business YouTube

Summary

The 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

00:00

🎤 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.

05:00

🚀 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.

10:02

🤔 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.

15:04

💡 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.

20:04

🛠️ 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.

25:05

🌟 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.

30:06

🛑 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.

35:06

📚 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.

40:08

🔮 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.

Keywords

💡Small Business

Small Business refers to enterprises that are independently owned and operated, not dominated by a single owner, and have a small number of employees. In the video's context, the speaker challenges the notion of small business by advocating for a shift in mindset towards creating businesses with the potential for growth and disruption. The speaker uses personal anecdotes and examples of businesses like 'Mr. Price' to illustrate the contrast between small businesses and those with expansive growth.

💡Disruption

Disruption, in the context of the video, refers to the act of significantly altering an existing market or industry by introducing a new product or service that creates a new market dynamic. The speaker emphasizes the importance of disruption for creating businesses that can fundamentally change the status quo and drive innovation, rather than settling for incremental improvements.

💡Entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business, which typically starts as a small business but is aimed to grow and scale. The speaker discusses different levels of entrepreneurship, from survival entrepreneurs to hyper-growth entrepreneurs, and stresses the importance of nurturing an entrepreneurial spirit to drive economic growth and job creation.

💡Hyper-Growth Entrepreneurs

Hyper-Growth Entrepreneurs are individuals who create businesses with the potential for rapid expansion and significant market impact. The speaker highlights the rarity and importance of such entrepreneurs, who take a long-term view, leverage networks for value creation, and prioritize education as key drivers of business success and national development.

💡Innovation

Innovation is the introduction of new methods or ideas that significantly improve existing processes, products, or services. The speaker uses the example of a mobile beauty salon business to illustrate how innovation can lead to new business models that are scalable and meet modern consumer demands, thus creating opportunities for growth and employment.

💡Philosophy in Business

Philosophy in Business refers to the guiding principles or beliefs that drive a company's mission, operations, and long-term goals. The speaker argues for the creation of businesses with strong philosophies that transcend time and culture, using examples like Apple and Google, which have philosophies that shape their approach to products and services.

💡Mentorship

Mentorship is a relationship in which a more experienced or knowledgeable person guides another person, helping them to develop their skills and knowledge. The speaker identifies a strong system of mentorship as crucial for nurturing budding entrepreneurs and creating a culture of shared success and community support.

💡Delayed Gratification

Delayed Gratification is the ability to resist the temptation for an immediate reward and wait for a later reward. The speaker discusses the importance of cultivating a culture of delayed gratification, where individuals are willing to work towards long-term goals rather than seeking immediate rewards, as a key to building sustainable and successful businesses.

💡Status Quo Bias

Status Quo Bias is the preference for maintaining the current state of affairs and resisting change. The speaker mentions this bias as one of the barriers to innovation and progress, as people often cling to existing beliefs and practices, even in the face of evidence that suggests a need for change.

💡Confirmation Bias

Confirmation Bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses. The speaker explains how this bias can prevent individuals from adopting new ideas or changing their behavior, even when presented with new knowledge or opportunities.

💡Faith

Faith, in the context of the video, is the ability to believe in and work towards a vision or goal that may not be immediately visible or achievable. The speaker concludes with a call for faith as a collective effort to build a better country, emphasizing the importance of believing in the potential for positive change and the unseen possibilities.

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