businesslink magazine april 2015 sample download

BUSINESSLINK MAGAZINE APRIL 2015


EVERY CHAMPION

WAS ONCE A

CONTENDER WHO

REFUSED TO GIVE

UP. ROCKY BALBOA

ALWAYS DO CAREFUL RESEARCH

BusinessLink magazine is designed to educate and provide general information as well as to stimulate readers’ thinking. While every care is taken to ensure that information in this magazine is correct, we advise readers to consult their professional advisors when making business decisions. The magazine is distributed on the understanding that the publisher is not rendering legal or financial advice and readers use the information herein at their own risk.

BUSINESSLINK MAGAZINE BusinessLink, the magazine for

growing companies, delivers real solutions for today’s innovative business builders. It gives advice, tools and resources to CEOs and owners of small-to-midsize companies as well as new entrepreneurs that help accelerate their growth.


ISSUE NO. 13, APRIL 2015

BusinessLink Magazine is published by Admiral Business Systems (Pvt) Ltd

Suite 308, 3rd Floor Merchant House, 43 Robson Manyika / 2nd Street,

Harare, Zimbabwe. Phone 0772 854 301

http://smebusinesslink.com

© Admiral Business Systems 2015. All rights reserved. Publisher: Phillip Chichoni, email [email protected] Marketing : Christine Mangwanya, email [email protected]; Design and graphics: Kuda Makura Distribution: PCL Marketing and Distribution

Get BusinessLink magazine delivered to your email inbox every month. Subscribe for only $10 for a year.

Please visit http://smebusinesslink.com/magazine


Contents Join us For a Networking Breakfast on 24 April ..................................................... 5

What happens to your business if you are absent for a month? .......................... 9

A Farmer, Her Daughter And Two Pebbles ............................................................ 11

Highlights From The March Breakfast Meeting .................................................... 14

5 Pointers to a Successful 2015 ............................................................................... 15

The Zimconomics of Vendors ................................................................................ 18

Zimra extends tax amnesty to June 30 .................................................................. 20

YOUR GIFT IS YOUR MOST VALUABLE ASSET ................................................. 23

Win one of three copies of Commercial Rabbit Production in Zimbabwe ............. 28

8 Rarely Mentioned But Extremely Powerful Reasons Why New Businesses Fail 30

Nigeria's Tony Elumelu funds 1,000 African entrepreneurs ................................. 33

This 15 Year Old Is On Track To Make Millions .................................................... 36

Thinking beyond small: How to grow your SME business .................................... 40

A Five Step Guide to Setting up Business Systems ................................................ 44

Success Will Never Come to Entrepreneurs Who Do These 10 Things ................. 48

Africa as One Campaign – Content Marketing Case Study (DHL Africa) ............. 52

Where Should You Focus Your Marketing Efforts? ............................................... 57

9 Ways Marketers Can Create Superior Online Content ....................................... 61

How to determine proper pay scales for staff ........................................................ 65

9 Habits to Jumpstart Your Change Journey .......................................................... 70


Join us For a Networking

Breakfast on 24 April Great learning and networking opportunity that will help you grow your contacts

and share business ideas. Our Guest speaker is Tonderai Mandaza, Consultant, Businessman, Speaker and

Founder of LeVision Consulting Africa. He is also the author of a the book Commercial Rabbit Farming in Zimbabwe, which has helped hundreds of people hit the road running in establishing profitable rabbit farming enterprises and creating a stable stream of income. Date: Friday 24 April 2015, Time: 0815 to 0945 Venue: The Terrace Restaurant, 3rd Floor Barbours Department Store, Harare Cost: $6 for BusinessLink Magazine subscribers, $10 for non-subscribers. To book, please call / WhatsApp Christine on 0772 854 301 before the 23rd .Or come to our office, No 308, 3rd Floor Merchant House,2nd Street / Robson Manyika Avenue, Harare


REFER A FRIEND AND EARN

COMMISSION

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services:

• New Company registration

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Call Phil now on 0777 774 007, or Christine on 0772 854 301 OR visit us at 3rd Floor Merchant House. 34 Robson Manyika/ 2nd Street,

Harare

PS: We now offer flexible payment terms for company and PBC registration, so no need to wait, contact us now.


PRICES Hard

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2015 Simplified Guide to Taxes $6.00 $3.00 The Entrepreneur’s Guide to Starting a Business in Zimbabwe

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$6.00 $3.00

Business Planning Simplified $24.00 $12.00 Developing a Simple Financial Management System for your Business

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To order, call Christine on 0772 854 301 or come to our office at No

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Manufacturers of: Office Safes, Strong room Doors, Filing Cabinets & a wide range of Industrial Catering Equipment. You will find us at No.10, Isafil Industrial Complex, 667 Seke Road,

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915 Email: [email protected]


PUBLISHER’S BRIEF

What happens to your

business if you are absent

for a month? By Phillip Chichoni

There is this business strategy development

workshop that a friend of mine was invited to recently. It is said to be a game changer for entrepreneurs who want to take their business to the next level.

“So, when are you going for this high flying workshop, Steve?” I asked my friend.

“What? It’s a three week course overseas and I cannot leave my business for that long!” replied Steve.

Now, Steve is missing a life changing opportunity because he cannot leave his business unattended. Can you?

Speaking at the Small and Medium Enterprises Association of Zimbabwe (SMEAZ) monthly networking event last week, a colleague Gabriel Chipara said most owners of small enterprises are not real business owners. Instead they are simply self-employed.

The draw back with being self-employed is that you cannot afford to be absent from your business. When you are not there, there is no business because you are the business. Like Gabriel said at the event last work, systems can change your business from being a one man self-employed professional to a business that runs without the need for the owner’s constant presence.

With a properly documented system in place, a business owner can rely on his staff to deliver without he or she doing the physical work. This requires the owner to train and empower the employees and then leave them to carry out the work.

In the book The One Minute Manager, Ken Blanchard talks about this manager who only needs to tell his people what to do, first teaching them


how it should be done, then only asking them to come to him when they have a problem that they cannot solve.

Now I have heard many business owners talk about how some employees leave after being taught the production system, only to go and set up their own businesses. Yes that happens. Many SMEs today were started by people who were not happy at their jobs. Because they had the knowledge, they were able to start their own enterprises, in many cases competing directly with their former employers.

This is not a problem of disloyal employees. It is a problem of leadership. A good leader gets loyal followers. He persuades, inspires and motivates others to follow him.

Tom Peters said that the best leaders don’t create followers, they create leaders. You must motivate others to follow your vision, to support and achieve the goals and objectives that you have set, to buy into that mission of the organization as you see it. To achieve sustainable success as a leader, you must earn the trust, respect and confidence of your people. You must also fairly reward your people’s efforts and initiatives. That way you will find that employees will never leave; in fact they will be happy to see your business succeed because your success is their success.

A business system basically is a set of manuals that describe how things should be done in the enterprise. They cover the key areas of an enterprise, namely production, marketing and selling, finance and human resources management. Responsibilities are assigned to specific people, who become accountable for the attainment of set goals.

When the system is working well, everyone knows what to do and the results they are expected to produce; so the work flows like clockwork. A system allows management to monitor performance. You can therefore identify slackness and take corrective action. Non-performers will clearly stand out as a result of the monitoring and control functions of a business system.

If he had a good system in place and his people’s full buy in, Steve could afford to go to Europe for the three-week workshop, with the peace of mind of knowing that empowered and responsible people are taking care of his business. With the instant communication available via the internet, he can get updates and reports on how the business is performing on his laptop or smart phone.

Now, start working on making your business systems based so you can be able to take that occasional break, or go for that well deserved holiday without having to worry about things falling apart when you are not there. Our article on page 44 of this issue of BusinessLink magazine, entitled A Five Step Guide to Setting up a Business System, will give you practical guidelines. Feedback me on twitter :#chichonip


MOTIVATION A Farmer, Her

Daughter And Two

Pebbles Many years ago in a small Indian village, a farmer had the misfortune

of owing a large sum of money to a village moneylender. The moneylender, who was old and ugly, fancied the farmer’s beautiful daughter. So he proposed a bargain.

He said he would forgo the farmer’s debt if he could marry his daughter. Both the farmer and his daughter were horrified by the proposal. So the cunning money-lender suggested that they let providence decide the matter.

He told them that he would put a black pebble and a white pebble into an empty money bag. Then the girl would have to pick one pebble from the bag.

1. If she picked the black pebble, she would become his wife and her father’s debt would be forgiven.

2. If she picked the white pebble she need not marry him and her father’s debt would still be forgiven.

3. But if she refused to pick a pebble, her father would be thrown into jail.

They were standing on a pebble strewn path in the farmer’s field. As they talked, the moneylender bent over to pick up two pebbles. As he picked them up, the sharp-eyed girl noticed that he had picked up two black pebbles and put them into the bag. He then asked the girl to pick a pebble from the bag.

Now, imagine that you were standing in the field. What would you have done if you were the girl? If you had to advise her, what would you have told her?


Careful analysis would produce three possibilities:

1. The girl should refuse to take a pebble. 2. The girl should show that there were two black pebbles in the bag

and expose the money-lender as a cheat. 3. The girl should pick a black pebble and sacrifice herself in order to

save her father from his debt and imprisonment.

What would you recommend to the girl to do?

Well, here is what she did… The girl put her hand into the moneybag and drew out a pebble.

Without looking at it, she fumbled and let it fall onto the pebble-strewn path where it immediately became lost among all the other pebbles.

“Oh, how clumsy of me,” she said. “But never mind, if you look into the bag for the one that is left, you will be able to tell which pebble I picked.”

Since the remaining pebble is black, it must be assumed that she had picked the white one.

And since the money-lender dared not admit his dishonesty, the girl changed what seemed an impossible situation into an extremely advantageous one!

Moral of the Story Most complex problems do have a solution. It is only that we don’t

attempt to think.


When the mind is alert, sharp and calm while facing any problem, there definitely would crop a good solution to it whereas if the mind is too agitated, depressed and fidgety, the brain loses its ability of positive “thinking” and everything seems blank and bleak with no solution that the mind forces a person to take drastic and negative measures like commit suicide or a crime as an immediate solution.

If we can understand the problem, the answer will come out of it because the answer is not separate from the problem!

Also, the important thing about a problem is not its solution, but the strength we gain in finding the solution!

Next time you face a problem, consciously make an attempt to think more clearly, cleverly and calmly…and you will surely find the best solution for it.

http://smilepls.com


Highlights From The

March Breakfast

Meeting

In the lucky draw, Miss Bacoliwe Mthupha won the book Fountains of Inspiration by Rabison Shumba.

Don’t miss the next breakfast networking meeting on Friday 24 April 2015


5 Pointers to a

Successful 2015

By Rabison Shumba

It is already four months into 2015. What have you achieved so far? How you manage every day that goes by determines what you will get

out of this year. Do not cry foul when at the end of the year you seem to have regressed even to levels you never imagined.

Below are 5 pointers that can position your 2015 to be the best year ever.

1. Transform work into wealth – do not just be a hard worker but be thinking about how much of your work is really bringing a change to your financial position. Many work to pass time but you have to see your work in terms of what contribution it is making to your sustenance.

2. Transform knowledge into wisdom – with every piece of information you get start moulding it into a life principle to live by. Knowledge gathering is good but how much of that knowledge


is useful for daily living? Derive wisdom from every mistake from years gone by.

3. Transform every plan into project – it’s no use having a list of 1 million things you want to do without an ounce of willingness to act on even one of them to make it real and tangible. Yes, write plans down but that alone will not change your situation. It is deliberate action that will see plans becoming living reality.

4. Transform every pain point into seeds of possibility – find one problem that people face around you, provide a solution that brings about convenience and in that is the opportunity to turn around circumstances of your own life and lives of many others. One way to fulfil your financial goals is by providing solutions that people cannot live without.

5. Transform every moment into a memorable one – every day that goes must be building great memories for you and those around you. Be thinking deeply about what you want to be remembered for (your legacy and the heritage). When you know why you are among the living in 2015, you will not lose time unnecessarily. You will begin to leave an indelible mark in your chosen area of endeavor in this generation.

As you can see, you are a transformer. You have a role to play in making your 2015 the best year ever. You can not delegate or place the outcomes of your life in the hands of others. So, step up, step out and be the success you desire to be associated with. Meet you at the top at the end of 2015.


Zimbabwe Business Updates


The Zimconomics of

Vendors The argument against street vendors vary from unhealthy practices to

pedestrian congestion to noise and visual pollution in the city; the list is endless.

These queries have led to intolerable treatment of these men and women by the City Council and shop owners.

Despite efforts to protect them by unions such as the National Vendors Union the council men find one reason or another just to disrupt their business.

Many can relate to these people considering the economic hardships in the country and unemployment flying over the roof; they have resorted to vending to make earns meet.

Image is a Collage from various News Sites in Zimbabwe Vendors are now a reality in city centres, with or without Council approvals.


Let us take a minute to appreciate the influence vendors have; this monopolistic competition has contributed to price regulations to a greater extent.

In truth many retail outlets, supermarkets, wholesalers and the like are selling products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes; it’s all the same product.

This has created competition for their outlets, as street vendors are now able to sell for example Creamora and Ricoffee on the street, at an even cheaper price than a supermarket.

As scores of them line up on pavements and sidewalks they sell different wares from food, to household goods, to clothing, with prices set to lure customers, making their products very affordable.

Shop owners nearby are now forced to set their prices almost similar to the vendors in order not to lose business.

Vendors create competition for the retailers and force price reductions and offer promotions; without such competition retailers would be charging unreasonable prices.

They also allow bargaining in which the best salesman wins business; something that customers appreciate. Carrying bags are for free unlike in retail shops like Spar or OK where they are sold for 10c or more; with some offering fancy carrying bags.

Simple things like these, is what has guaranteed their survival throughout the years, and causing the unemployed to enter vending.

It is very easy to set up and has helped to create a livelihood for thousands in Zimbabwe at a time the public and private sectors have failed to provide employment.

A friend of mine was in Italy for his honeymoon during the festive season. It was to his amusement to notice street vendors in Rome, with the same set up as here at home on sidewalks and different wares sold on card boxes.

China has also a reputable number of its people as vendors some who have exported this to other countries creating what are known as China cities or town.

Yet these two economies are worth trillions; China as the richest sitting at number one on world records with a GDP of $17.632 trillion and Italy worth $2.066 trillion in 2014.

In 2013 the Harare City Council was among Zimbabwean local authorities under fire for exorbitant salaries being paid to directors, earning half a million a month; the same money needed for operationalizing bylaws and make Harare better.


Such corrupt conducts are the ones that prevent full establishment of areas where vendors can sell. Council could benefit from vendor fees and thus stimulate further activity in the country and economic growth.

There is an argument by City Councils that there are designated areas for vending. This no longer applies as these were based on the old transport system of buses and not the current unpredictable commuter taxi stations.

Furthermore, no one can predict the behaviour of consumers as they move around town shopping, hence the best locations for vendors is actually in the areas of high consumer traffic concentration; that is not going down well with City Councils.

Business mogul Philip Chiyangwa started out as a vendor and now is worth millions; he is a land developer, transporter, and so forth.

A perfect example of great entrepreneurship skills some of these people possess. A different view of vendors could actually benefit Zimbabwe.

Zimra extends tax

amnesty to June 30 From FinX The Zimbabwe Revenue Authority (ZIMRA) has extended the Tax

Amnesty window to the June 30, after the initial window expired last

month, Director of finance, corporate planning and modernization,

Robert Mangwiro has said.

Speaking at the second Zimbabwe Accounting Conference, Mangwiro

said the payment period remains unchanged as companies are expected

to pay their dues before the end of the year.

“The minister of Finance and Economic Development has agreed to

extend the tax amnesty to the 30th of June, after the initial window

expired last month. We urge all the companies that owe ZIMRA to come

forward and take advantage of the amnesty,” he said.

Mangwiro said there has been a remarkable improvement in the

number of applicants that have applied for the amnesty, from the 1471

that were recorded at the end of February. He expressed hope that the

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