Business Insights with Bertha Dlamini

A topic on business insights is very broad. I am a student in business and will remain a student in business for as long as I can. For this reason, I cannot claim that this piece will give you comprehensive business insights but I hope that the few things I will share will illuminate facets in your thinking that will aid your journey in business. 

If all South Africans thought of business as a Value Proposition; I believe we would build more businesses and fear the prospect of being entrepreneur less. 

Every business idea should embody a value proposition for the customers/clients it aims to serve. It should further aim to serve those clients better than the next person. Most importantly there should be a valid commercial case of it – in other words you should be able to make money out of it. Not just cover the cost; but to reinvest into the business and make a decent profit to justify its existence.

So what is a value proposition?

Simply put a value proposition is providing a solution fit for an identified need; and demonstrating return on investment for the cost of the solution. Customer needs evolve and change continuously and so should your value proposition if you are to remain relevant for your chosen market.

A few pointers

1. Know your customers and understand their needs. Determine how your specific solution meets these needs;

2. Analysis the existing market pricing of your service; understand what customers are willing to pay; determine how you will differentiate yourself from competitors;

3. Describe the opportunity in the market for your service; be specific and detail how you position your company and your service in the market;

4. Establish direct relationships with clients in your chosen market. Continuously grow your network; build relationships with the right people – the decision makers;

5. Ensure that your are correctly priced for the market and for your business;

6. Build easy repeatable processes in your business

a. Document process

b. Build easy to use templates

7. Get a reliable and affordable legal team

8. Have a strong relationship with your finance team

9. Understand labour law

10. Understand your product/ service – protect your IP

Other things to watch out for:

• Watch- out for single client dependence – don’t put all your eggs in one basket; diversify your client base

• Focus on quality of service/ solution/ product; invest in improving your quality

• Watch all lines: Top line, expense rate, bottom line. Be diligent with your targets; your expenses and your profit margins.

• Watch out for fatigue – your business needs your energy

• Avoid toxic relationships – work with integrity; uphold your values; and avoid relationships that sap your energy.

Finally as an entrepreneur commit yourself to long life learning so that you can evolve with market changes and ensure that your value proposition continuously and consistently meets existing and future customer needs. Read, Read and Read some more on your chosen industry. Mastering your craft through study is your best investment.

Bertha Dlamini

Managing Director, EON Consulting (Pty) Ltd