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Author: lindo

We look forward to connecting with you.

Join Pavlo Phitidis and a number of multinational companies for a breakfast insight and networking session, to tackle the challenges and opportunities facing big business in our uncertain, constantly changing business environment

Date: 24 July
Time: 07h30 for 08h00 to 10h30, including breakfast
Venue: The Capital Melrose
Speaker: Pavlo Phitidis, business growth author, speaker, and founder of Aurik

Topic: Forces of change require new approaches to business growth

There is little doubt that the framework against which global business, and the multinationals that operate in it, have relied upon to win work and deliver profits is fracturing. The fundamental principles that established the framework are being corroded by geopolitics, climate change, technology, economic and social change.

The old way of doing things as well as the old guard need to change to remain relevant and in fact, lead the change to get ahead of competitors. Failing to do so places you either on the back-foot or a gradual death. Think of what Telsa has done to the automative market and then further, how the Chinese EV industry is already usurping that in the West. Think of Temu as the front attack on Amazon that itself ate traditional retail.

Leaders find themselves caught between rocks and very hard places. Acting with uncertain or insufficient information opens the door to mistakes, cost and reputational harm. Yet, acting after certainty has been attained is likely to find you on the back-foot eroding any previously held advantages.

Adaptive leaders need two things to find the balance. A winning vision and a dynamic business model that places them in the front row of a changing customer needs and wants earn a front row seat into the signals of change. The first responders are the likely to be the most relevant to win the market. Lead or be led in response to competitors that lead.

Pavlo will share a framework to get ahead of the market, based on 4 elements:

  1. Mindset
  2. Objective
  3. Strategy
  4. Tactics

REGISTER HERE:

Nedbank Top Empowerment Conference 2024


Aurik Enterprise Development is joining #NedbankTopEmpowerment as a Showcase Counter sponsor!

Aurik Enterprise Development is a majority black-owned Level 2 B-BBEE Business Development Support (BDS) agency in Africa that works with entrepreneurs and corporates to grow businesses, both big and small. Our tailored solutions deliver from strategy right through to implementation and reporting.

Our proven expertise includes:

  • Effective localisation & local economic development;
  • Building SMEs who strengthen supply chains,
  • Market access for SMEs, to reduce dependency
  • Fund management for best impact

“On a scale of 1 to 10 I would give Aurik 10. That’s the level of satisfaction we had with the Aurik Coordinators and Facilitators “

Godfrey Makhubane – Northam Booysendal


Get in touch


How to secure funding for your startup

Finding funding for a start up or early stage business is extremely challenging. You need to crystal clear on what the funds will be use for, how, when and how your funder or investor will earn their return. Tune in to this podcast of The Money Show as Pavlo Phitidis digs deeper into what you need to consider before you apply for start up funding.

Why do you need funding?

You should be seeking funding to solve a problem. You need to understand clearly who your customer is and what problem you’re going to solve for them. And through this deep understanding of the problem, and the value you can bring by solving it, you can excite a funder to listen further.

The questions that will flow once you’ve gained their enthusiasm will be around the following:

Timing – Timing is crucial when it comes to starting a business. Legislation and affordability can play a role in determining the best time to launch a business, and funding is necessary to take advantage of the right opportunities at the right time.

Legislation – New laws and regulations can open up new opportunities for businesses. Funding is necessary to stay ahead of these changes and take advantage of them.

Affordability – The cost of goods and services can fluctuate, and funding is necessary to take advantage of lower costs when they are available.

Also be clear on what you will use the funding for. It can be used for a variety of purposes, such as purchasing equipment, inventory, and real estate, or for hiring staff.

  • New/Used – Funding can be used to purchase new or used equipment, inventory, and real estate, depending on the needs of the business.
  • Secured/Unsecured – Funding can be secured or unsecured depending on the lender and the needs of the business.
  • Offices – Funding can be used to rent or purchase office space, depending on the needs of the business.
  • Applied when – Funding can be used at different stages of a business, such as during the launch phase or for expansion.
  • Milestones – Funding can be used to reach specific milestones, such as the launch of a new product or service.
  • Burn but earn your stripes – funding can be used to sustain the business through the early stages, but it’s important to have a plan to eventually earn a profit and pay back the funding.
  • Applied if – Funding can be used for a variety of contingencies, such as unexpected expenses or changes in the market.
  • Rent – Funding can be used to cover rent or mortgage payments for the business.
  • Alternatives – Funding can be used as a backup plan in case other sources of funding fall through.
  • Collaborate – Funding can be used to collaborate with other businesses or organizations to achieve common goals.

In this podcast of The Money Show Pavlo Phitidis digs deeper into what you need to consider before you apply for start up funding.

https://omny.fm/shows/small-business-focus/small-business-focus-start-up-funding

What are the different kinds of funding?

Equity funding involves selling a portion of the business in exchange for funding. This can be beneficial for businesses that have a high growth potential.

Debt funding involves borrowing money that must be paid back with interest. This can be beneficial for businesses with a steady cash flow.

A mix of different types of funding, such as debt and equity, can be beneficial for a new business. This can help to balance the risk and reward of the venture.

As a start-up you cannot turn to a bank, nor should you because you don’t want to raise debt that you need to start paying back the next month.

You want to secure funding that allows you to spend, to invest in the business before you have to start paying it back.

What are the sources of funding
Private Individuals – Private individuals, such as friends and family, can be a source of funding for a new business. They will be very interested in you – your skills, experience knowledge, values and will usually be familiar to you.

Suppliers – Suppliers may be willing to provide funding in exchange for a long-term contract.

Customers – Customers may be willing to provide funding in exchange for a stake in the business or early access to products or services.

Employees – Employees may be willing to provide funding in exchange for a stake in the business or a share of the profits.

Government – Government agencies may provide funding for businesses in certain industries or for businesses that meet certain criteria.

Corporates – Corporations may provide funding in the form of grants or investments. In south Africa it tends to be available to 51% or more black owned business as part of their BBBEE requirements, and the dispensation of these funds is highly structured.

Self and Smarts – Funding can be generated by using personal savings, credit cards, and other personal resources.

Banks – Banks may provide funding in the form of loans or lines of credit.

Venture Capital – Venture capital firms may provide funding for businesses with a high growth potential. VC is not huge in South Africa, certainly not in start-ups. Venture Capital tends to favour established successful businesses with new ideas or developments.

So, how can you succeed in securing funding from one or more of these funders?

  • Know how – Having knowledge about the industry, the market, and the problem being solved is crucial to the success of a new business.
  • Skills – Having the necessary skills to operate and manage a business is important for success.
  • Relationships – Building relationships with suppliers, customers, and industry leaders can be vital to the success of a new business or the expansion of a growing business.
  • Experience – Having experience in the industry and in running a business can be a major advantage as funders will see that you know what it takes.
  • Skin in the game – Investing your own money and resources into a new business can show investors and lenders that you are committed to the success of the venture.

Think like a funder and ask “What will I get in return?”

The return on investment for a new business can vary greatly depending on the success of the venture. Investing in a new business always carries a certain level of risk. It’s important to carefully consider the potential returns and risks before making a decision to invest. Help to paint that picture for the potential funder.