Five New Year’s Resolutions for SMEs

2014 brings with it new challenges and opportunities for business owners, all of which need to be incorporated into a business’s plans going forward. This is according to Gerrie van Biljon, executive director of Business Partners Limited, who says business owners should make use of the first few weeks of the New Year to reflect on what worked well in 2013 and what needs to be improved or changed for the year ahead.

He says proactive planning, with clear timelines, will positively benefit the long-term development of a business. “Business owners who avoid planning ahead may increase their exposure to risks during the upcoming year.

“Implementing changes early in the year will ensure that the business is prepared for the period ahead and will assist in evaluating whether it is effectively prepared for upcoming opportunities or possible challenges within the landscape that it operates in.”

Van Biljon shares five New Year’s resolutions that small and medium enterprise (SME) owners should consider when planning for 2014:

1. Managing cash flow as effectively as possible
Cash flow is the life blood of any business and effectively managing this aspect of the business will allow more flexibility when there is a need to address emerging dilemmas, such as late payment, or when critical decisions need to be made, such as having the capital available to purchase additional stock in order to satisfy client demand. Regularly updating a budget and a statement of cash flow will enable business owners to keep an eye on where money is spent, and allow them to cut back where applicable.

2. Create and maintain valuable partnerships
A new year provides businesses with the opportunity to establish new and beneficial partnerships, as well as cement any present valued partnerships. Building relationships with the right individuals and businesses is key to the success of any business, due to the long lasting and powerful effect a favourable relationship can bring about. In order to make a successful partnership thrive, establish a win-win solution that is fair to both parties.

3. Attending networking events
Building a successful business takes a lot of time and drive, so it’s advisable for business owners to surround themselves with individuals who share a similar ambition. As an entrepreneur, networking is crucial as it provides the opportunity to build those much needed business contacts and relationships.

4. Continuously seek mentorship
Seeking regular advice and guidance from a mentor can prove invaluable for business growth, as well as personal development. It is simply impossible to know everything about running a business as everyone has their individual strengths, and a fresh pair of eyes can identify possible gaps in business practices and assist with strategies which the business has not yet considered. Not only will a mentor enable a business to focus on its objectives more effectively, but it can also boost morale. When selecting an appropriately experienced business mentor, seek a mentor who has experience in the skills you may lack and ensure the terms of the mentorship – time, costs and outcomes – are as clear as possible in order to ensure that the match works effectively.

5. Establish a successful online presence
Having a successful online presence and strategy is becoming increasingly important for SMEs due to the growing number of consumers making use of online tools to find suppliers and solutions for their needs. The increasing number of online users and growing popularity of online mediums such as a company’s website, Twitter, Facebook and LinkedIn have created many opportunities for SMEs to directly interact with both their current and potential customers. These tools have also dramatically changed the way brands interact with their target audience. It is therefore key that SMEs utilise these platforms effectively in order to maximise the exposure and awareness for their business. Having a constant stream of engaging content will ensure that the business maintains a favourable online presence.

Van Biljon says the New Year creates an opportunity for businesses to better themselves and their offerings. “Like many New Year’s resolutions, the list may seem daunting. However all business owners require is a shift in mindset and most likely a change in habit. Allocating time for each goal and a realistic date of conclusion will assist you in achieving your New Year’s resolutions,” concludes van Biljon.

Source: How We Made It in Africa

Kenyan Jewellery Brand takes African Design International

Elisabetta Capolino and Marina Bottelli of CREA Africa

A team of Italian fashion and jewellery designers based in Kenya started CREA Africa, a company that produces jewellery and accessories in Africa for sale in international markets.

CREA manufactures jewellery and accessories from recycled and locally sourced materials including brass, bone, glass, bone, horn and crocheted materials which are handcrafted by Kenyan artisans.

“The idea was to create a company that would manufacture high quality handicraft using modern designs, handmade in Africa. We targeted the international market because we wanted to work with high fashion designers and we wanted to push them to showcase more products made in Africa,” says Marina Bottelli, managing director of CREA.

The Nairobi-based business sells its own brand of products via online and physical stockists in Europe. Global brands and leading international fashion designers also contract CREA to manufacture products for them which sell for up to US$3,000 a piece in high-end stores.

“However, there are still many questions about the quality of things produced in Africa. This continent is full of great people able to produce great things but there is still no guarantee of quality. This is what CREA is pushing; [the idea that] you can produce high quality products in Africa.”

Elisabetta Capolino, one of the co-founders of CREA, said the firm partners with artisans who run independent workshops with the view of improving their skills to ensure high quality production in Kenya. CREA’s other co-founders are Cristina Cisilino and Annalisa Bernardi.

A trained architect, Capolino moved to Africa in the 1990s after her husband, a United Nations employee, was posted to Ethiopia. She runs her own independent brand, Le Collane di Betta, which she founded in 1998 during their first posting to Kenya.

Facing hurdles

Ensuring continuous demand from leading fashion designers and brands in the international markets is one of the challenges CREA faces.

“What we are looking for is to have a constant relationship with designers who really want to support Africa. We get a lot of designers who approach us to produce for them for one collection or one season and then they go while the aim is to have long-term relationships. The artisans that we are training and promoting live off this,” says Bottelli. “Getting designers and the international market to understand that in Africa you can get very high quality products is also still a challenge.”

While ‘Made in Africa’ can be a good selling tag, in the international market it can also be a hurdle.

“Running a company from here is sometimes very fascinating to customers [in international markets], but sometimes it is also, ‘you are in Africa, that is too far away, what are you doing there?’” says Bottelli.

Nonetheless, CREA is hoping to build its own brand and plans to showcase its products in more online and physical retail stores in Europe.

“It is very challenging, but we want to be recognised as a leader of high-quality production in Africa,” says Bottelli.

Capolino advises other entrepreneurs to invest in mentoring and improving their employee’s skills and to build good relations with all stakeholders. They should also place emphasis on offering high quality products.

“I am very strict when I start working with an artisan. I give them my idea of collaboration which is not charity [type of] collaboration… It is business.”

Bottelli noted that foreign investors coming into Africa should do proper research, understand their market and its needs and operate ethically.

“You have to respect the country that is hosting you in that moment. There are many giants entering Africa without having that kind of sensitivity. You might be successful but then if you look inside yourself you will feel that you haven’t done the right thing. You have to respect the people, the rules and laws and look at the needs of the country.”

Capolino explained that Africa’s growing population and affordable labour market make it a good location for manufacturing fashion products. She added that the purchasing power among the African middle class is also growing, creating a market for high end fashion products.

“Asia is gone, north of Europe is gone and now in Europe there is an economic slump and [so is the case] in the US,” says Capolino. “But in Africa, economies are growing. People [here] now have money to buy high-end brands. This is an amazing opportunity.”

Source: How We Made It in Africa