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Showing posts from July, 2017

Watch this space as 3@1 moves across Africa

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3@1 Franchising has announced the signing of a multi-store agreement for Uganda. This follows the conclusion of a similar agreement in Zambia and the recent opening of the brand’s first store in the country.

3@1 Franchising, the one - stop retail solution for print, courier, photographic and business service needs, launched its international expansion programme in 2015 with the opening of a store in Windhoek, Namibia. Additional outlets are planned for this country in the year ahead. 2016 saw the signing of a master franchise agreement for Zambia with a first store launching in Lusaka in June 2017.

“Ours is an established brand with a strong foothold in South Africa, and we see African expansion as one of the next major opportunities for growth,” says founder and CEO Chris Dunn. “My vision has always been for 3@1 Franchising to expand beyond our borders and become a provider of essential printing, courier, photographic and business solutions in our neighbouring countries.”

Founded in …

Finding opportunities in retail franchising

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By HS Van der Linde, Business Development Manager – Retail Franchising, Absa Business Banking

Retail franchising is a fast-paced and vibrant sector offering an array of opportunities to ambitious and dedicated franchisees. However, the industry is not immune to the economic difficulties sweeping the globe. With typically wafer thin margins set in an economy not predicted to grow more than a couple of percentage points, franchise owners are required to be more agile.

The retail franchising industry that Absa supports can be broadly divided into food, hardware/building material/spare parts stores and the second-hand tradable goods sectors. Each sector comes with its own set of intricacies, challenges and prospects resulting in unique solutions being offered in a recessionary environment.

Food retailers, for example, have seen a decline in margins of between two and three percent in the past 18 months. This is due to consumers having notably less money to spend. Major retail brands are e…

#SAFranchise Friday featuring Wildman Hunting & Outdoor

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BACKGROUND
The Wildman Hunting & Outdoor franchise, the first of its kind in South Africa, was launched in November 2010. The first franchise was established in Graaff-Reinet, quickly followed by more franchises opening in various provinces and today there are no less than 14 outlets.

Concept founder, Frik du Plooy, has been a prominent figure in the firearm industry for over 31 years. From a small-town Firearm Dealer and Gunsmith business, under his direction and with the assistance of his team who collectively has some 300 years’ experience in the field, Wildman Hunting & Outdoor has grown into one of the largest privately-owned firearm retailing ventures.

The company's success can be attributed to Frik’s insight into the need to diversify their product range, thereby ensuring repeat business from existing clients and creating traction for potential new clients.

THE CONCEPT
While hunting is their primary focus, they also cater for customers interested in target-, wing- and …

Commercial property a viable nest egg for SMEs

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The do’s and don’ts when it comes to investing in commercial property

In light of National Savings Month, which aims to promote debate around the key aspects and benefits of saving, Jeremy Lang - regional general manager at Business Partners Limited (BUSINESS/PARTNERS) - says that traditional savings vehicles may not always be the best option for small and medium enterprises (SMEs), and that investing for growth may be more beneficial than sitting on a lump sum of cash. Lang says that in the current economic environment, investing in property may be a viable option for SME owners to consider as a long-term savings mechanism.

“In 2016, industrial property was the top performing sector in the South African property market, with a total return of 13.6%. Over the last 10 years, it has proven to be a relatively stable and resilient asset class in terms of generating positive returns over the medium to long-term,” says Lang. “As such, both commercial and industrial property are good invest…

Smart thinking at Meadowdale Mall Cash Converters franchise

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Now is the right time and Edenvale is the right place to open a new Cash Converters store in Meadowdale Mall, says co-owner Dave van den Berg. He foresees the venture making the most of both local and global trends.

“The biggest shift in consumer buying today is to second-hand goods,” he says. “This is driven mainly by consumers having less cash to spend, supported by the fact that buying second-hand helps reduce manufacturing pollution and save the environment.”

Husband-and-wife partnership Dave and Elna van den Berg are now based in Pretoria but chose Edenvale as the site for their new venture because they have come to know it well over the years.

“Dave worked in Edenvale, Germiston and the East Rand for many years so we appreciate that it’s one of South Africa’s oldest established areas,” says Elna van den Berg. “We see this new store as an investment in the future of the area as well as in our own family.” Dave van den Berg has high hopes for their new venture: “I want us to be r…

South Africans urged to mitigate personal risk ahead of repo rate announcements

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With the anticipated repo rate announcement happening later this week, and ongoing economic uncertainty experienced by South Africa in recent months, banks are unlikely to loosen the provision of credit any time this year. This means South African borrowers – both businesses and consumers – must continue to endure a harsh interest rate environment.

Charles Meyerowitz, co-founder and CEO of Lamna, a specialty asset backed financier, says that in light of these persisting challenges, South African consumers and SMEs should carefully assess the type of debt they take on. “South Africa’s uncertain economic climate continues to pose significant challenges for borrowers and as a result people should consider alternative funding sources that don’t require personal sureties,” says Meyerowitz. “Traditional lenders usually require that you sign sureties and therefore put yourself at risk when taking on debt.” 

With businesses needing access to cash in order to trade and grow, Meyerowitz sugge…

Local SME retailers - adapt before it's too late

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The retail sector is notoriously known for being one of the toughest to operate in, especially for a small business. As South Africans’ discretionary spend narrows and consumers feel the pinch financially, pressure will inevitably be pushed onto retailers, and those who fail to adapt to the evolving needs of the market will likely struggle to stay afloat in the new retail environment.

Kobus Engelbrecht, spokesperson for the 2017 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, says that for many small and medium sized retailers, this increased pressure on consumers has demanded a creative approach to their business and operations to ensure both survival and success. “While some businesses have successfully managed the changes and adapted well, others have seen the ultimate demise of their business, simply from not responding effectively to the market.”

He points to the imminent closing of one of South Africa’s largest and oldest retailers of 150 year…

Why SA needs more new franchises to create more jobs

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South Africa has over 35 000 franchise outlets that employ more than 300 000 people. Consequently, franchising holds the key for job creation, because the failure rate of franchise businesses is far less than a regular start-up.

Morne Cronje, Head of Franchising at FNB Business says, “In spite of the economic slowdown that is having a knock-on effect on small businesses, the franchise sector continues to grow gradually and Franchise brands are doing better because of their strong business models and supporting structures.”

Cronje shares four key insights on why we need more franchisors and franchisees:

Employment: Franchising is a healthy vehicle to drive sustainable jobs, this sector is often overlooked and we need to start investing in it by raising more awareness so that more people can be familiar on how to get into this sector.

Contributes to economic growth: Job creation can only be accelerated through sustained economic growth, and the stable nature of franchising businesses has…

5 Real estate agent myths investigated

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Years ago, selling property was considered a hobby or part-time job. Anyone was able to register and start selling. In 2008 the industry underwent rapid change, and being an agent is now a fully-fledged profession. Although from a general public perspective, the exact process is not quite clear and there is still a perception that being an estate agent is very much a ‘get rich quick’ scheme. It is common practice for clients to negotiate commission, which is why we look at the common miss-conceptions people have about estate agents.

1. Anyone may sell property for a living
False > A Real Estate Qualification is required by anyone who sells property as a profession and you must be in possession of a valid FFC issued by the EAAB (Estates Agency Affairs Board). The applicant needs to first complete a 12 month internship (no exemptions allowed) whilst being mentored by a professional and experienced estate agent where after they can then proceed to complete the FETC (the Further Educati…

New Middelburg Cash Converters franchise makes its mark

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Business-school graduate Eric Nkosi has spotted a gap in the market and launched the first Cash Converters store in Middelburg, Mpumalanga, on 7 July 2017.  “I’m a great believer in the benefits of franchising,” says Nkosi “This is my third business, all franchises. I particularly like the Cash Converters model which offers customers affordability in these more difficult economic times”.

“I value the fact that franchises are an investment which give you flexibility – I have already sold on one of my other franchises. I also thrive on all the support and training provided by good franchises to their franchisees as well as to our members of staff.”

Nkosi has created 11 jobs for his new employees at his Middelburg store. Once this is well established, he hopes to open a second Cash Converters outlet. “I know that there is still plenty of hard work and commitment ahead in building this franchise outlet but I am no stranger to that,” he says. “As well as having run my other businesses and…

#SAFranchiseFriday featuring Maxi's

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BACKGROUND
Maxi’s was founded to address the market need for a family restaurant franchise offering an extended, quality menu selection. In recent years an initiative was launched to reposition the Maxi’s brand as a unique, highly recognisable, fast-growing and decidedly competitive brand with a menu offering for everyone.

Maxi’s is a member of the Taste Holdings Group and forms part of the Taste Food Division along with Zebro’s, The Fish & Chip Co, Domino’s Pizza and Starbucks. Taste Holdings is a South African-based management group with a portfolio of mostly franchised, category specialist and formula-driven, quick-service restaurants and retail brands.

THE CONCEPT
The Maxi’s business model offers franchisees a choice between a sit-down restaurant with full table service and a comprehensive breakfast, lunch and dinner menu, or a smaller takeaway option with limited seating and a menu offering more conducive to the takeaway market.

The Maxi's menu incorporates a wide variety…

When is the right time for a founding CEO to step aside?

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Following the recent news announcement that Travis Kalanick, CEO of Uber, was asked to step down by shareholders in order to move the company forward, it brings to light the notion that there may come a time for a founding CEO of a successful start-up to evaluate whether they should handover the reigns to new leadership. Although this can be a hard pill to swallow, sometimes this option is worth exploring in order to successfully grow the business to its full potential.

This is according to Anton Roelofse, regional general manager at Business Partners Limited (BUSINESS/PARTNERS), who says that, as a successful business grows, so does the role of the CEO, and sometimes the entrepreneurial traits of a small business owner are not conducive to successfully creating and running a large to global business.

“Entrepreneurs are characteristically creative, solutions-driven and detail-oriented,” says Roelofse. “However, once a business grows, managerial skills and financial skills become mo…

Franchise award winners succeed against the odds

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The Franchise Association of South Africa’s Franchise Awards for Excellence in Franchising, sponsored by Sanlam and held this past week-end as part of their annual Franchise Business Festival, honoured those franchise brands that have bucked the negative trends to show resilience and growth in these trying times.

Commenting on the finalists and winners in the categories, Franchisor of the Year, Franchisee of the Year, Newcomer Franchisor of the Year, Franchisor: Leading Developer of Emerging Entrepreneur, Job Creator of the Year, Brand Builder of the year and Field Service Consultant of the Year -  Tony Da Fonseca, FASA’s Chairman for 2017/8 and MD of the OBC Group, believes that the industry’s saving grace is the fact that, by its very nature, franchising is entrepreneurial, flexible and forward-thinking.  “Despite the on-going recession that is impacting heavily on small businesses, the franchise sector continues to be resilient and offers its franchisees a better chance of survivi…

5 Reasons why franchising suits millennials

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Millennials are often seen as more restless and picky than previous generations but plenty of youngsters in my own generation gave our parents grey hairs. Looking back now, I can imagine the anxiety I must have caused when I moved back in with my parents so I could use the contents of my flat to stock the pilot Cash Converters store back in 1994!

Franchising suited me just as much when I was young and keen to jumpstart my own business as it does now when I have much broader business experience and interests. That’s why I believe that franchising could help answer South Africa’s youth employment crisis in two ways – it can enable young people to run their own small businesses and create jobs at the same time.

At Cash Converters, almost a third of franchisees and the majority of store managers are aged under 35. The business is expanding strongly and we expect to attract a surge in interest from the older age group of millennials who have good business experience and acumen.

Generally, mi…

What entrepreneurs wish they'd known when they were starting out

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2016 Entrepreneur of the Year® winners discuss advice they would share with their younger selves

Entrepreneurs in the small and medium enterprise (SME) sector have long regarded business mentorship as one of the fundamental factors required for developing this space in the South African economy. This need has also been a key highlight in a number of well recognized industry surveys and research – appealing for both the private and public sector to take action and provide more support for budding young entrepreneurs.

This is according to Gugu Mjadu, spokesperson for the 2017 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, who points to the recently released results of the first quarter 2017 Business Partners Limited SME Index, which reported an 82% level of importance placed on business mentorship in the development of a business. This is the highest level ever recorded since the survey’s inception in 2012.

Mjadu says that in the absence of concrete gu…

Support for Knysna from Engel & Völkers

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The team from Engel & Völkers Durbanville proved that teamwork and community support in a time of crisis truly does pay off. E&V Durbanville collected items for the victims of the Knysna fires this past week, and opened their shop as a drop-off point.

“We focused on making this a success, with emails being sent to each and every person on our database, spreading the word do our social media platforms, as well as phone calls and SMS’s to make our community aware of our drive” says Antoinette Swanepoel, Licence Partner of Engel & Völkers Durbanville. 

They collected much needed items such as non-perishable foods, clothing, blankets as well as pet food. They furthermore also received plenty of cash donations and wish to thank the Durbanville community for their participation and involvement. “We are truly humbled by the amount of support we received to assist us in helping those in need.,” Antoinette added.

DHL will be taking all the items to Knysna, with the first batch alr…

Q&A with Roger Mortlok, CEO of Engel & Völkers Southern Suburbs

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Can you tell us a bit about your licence area?  
The Southern Suburbs is an incredibly diverse area, consisting of large family homes with sprawling gardens bordering on areas with trendy apartments mixed with commercial buildings, restaurants, art galleries and some of the most prestigious private schools in the country. Wine farms, historical homes, presidential homes and areas of natural beauty.

What areas do you currently cover?
Our office has a prominent corner location in Claremont, which has been earmarked as the new business district in the Southern Suburbs. This year we are focusing and building market share in the surrounding areas, particularly Claremont Upper, Rondebosch, Lynfrae, Upper Wynberg, bupper Kenilworth, Plumstead and Lower Constantia.

What does your current team look like and what are your plans for expanding?  
We have a team of 6 exceptional sales advisors at the moment, with myself heading the office as the Chief Operating Officer and Delia Walters as the Offic…