Raizcorp ARIZE: February 2010

A WORD OF WELCOME.....

If you are reading this then there is a good chance that you are engaged in the development of business enterprises, something close to our heart. With Enterprise Development being included as one of the elements on the BBBEE scorecard, many individuals and companies have sprung up to take advantage of this opportunity. Unfortunately, the vast majority have neither the technical ability, nor an honourable reason, for being in the Enterprise Development space.

Raizcorp has been in this space for ten years; it has been developing and growing entrepreneurs since long before the advent of BBBEE and will be creating millionaires long after the need for BBBEE has dissipated. We celebrate our Principals (corporate sponsors) who have contributed to the creation of wealth in this country and we celebrate those who have indeed created that wealth themselves, mostly from little or nothing.

Every interaction with a Raizcorp beneficiary is a point of impact - in their lives, in our lives and, indeed, a point of impact on the South African economy. I have been in the Enterprise Development industry for ten years and I remain inspired by the spirit of entrepreneurship that exists in so many individuals. Their stories bring me to tears and their successes make me so proud to be a part of their journeys. I am blessed to do the work I do. In a world filled with so much negativity and hatred, my team and I work and live in a world of love and inspiration. We hope to share some of this inspiration with you.

Thank you for your interest and support.

Regards

Allon Raiz CEO

SHORT BIO FOR ALLON RAIZ:

Allon Raiz is the founder and CEO of Raizcorp, the only privately held, unfunded, profitable business incubator on the African continent. He is an author, a radio show host, and has written and hosted a primetime reality TV show, all in the field of entrepreneurship.

Allon is the co-founder of Entrepreneurs’ Organisation South Africa and Rural Roots and sits on the advisory and judging boards of numerous local and international NGOs and Entrepreneurial Awards. He is an accomplished international speaker and is completing a Doctorate in Entrepreneurial Studies & Innovation.

Allon has also been appointed by the South African Cabinet to the board of the National Empowerment Fund (NEF) of South Africa. Allon's passion and focus on the development of entrepreneurs attracted the attention of the World Economic Forum which, on 11 March 2008, awarded Allon as a Young Global Leader.

Principal Point of View: Shaft Sinkers

by Johan Mostert (Divisional Human Resources Manager for Shaft Sinkers)

Shaft Sinkers is a specialised contracting company that provides mining and related solutions to clients in various industries. Shaft Sinkers was established in 1961 and has completed in excess of 165 000m of vertical shafts to date, 21 000m of incline and decline shafts, as well as 400 000m of other underground development with a proud safety record.

Our client base varies from traditional mining companies both locally and abroad to hydro power, large underground excavations for storage, tunneling and more.

Shaft Sinkers provides a range of services including planning, engineering designs, project management, shaft sinking and construction of mining infrastructure.

Shaft Sinkers got involved in large scale Enterprise Development during 2009 and spent in excess of R1.6 million on Enterprise Development during the year. We are of the view that a sustainable way to create a better life for all South Africans is through job creation.

As a company we opted to invest in the Raizcorp initiative as Allon and his team successfully address the fundamental reasons why so many new start-up businesses fail - lack of business acumen and a lack of sustained support.

Raizcorp provides training and business know-how to entrepreneurs in order to assist them in not only understanding the fundamentals of business, but also coaching and guiding them through all the critical steps and pitfalls involved in managing a successful, profitable business.

One of our Enterprise Development success stories is Zanele Matome. One day she decided to walk into our offices with not much more other than an idea and a passion to become involved in the mining industry. Zanele is currently in the process of putting together a black woman-owned shotcrete company (Basadi Development Agency). Shaft Sinkers, along with Raizcorp, are assisting her on her journey as her sponsor and her guide respectively.

Zanele was invited to be a guest speaker at the Shaft Sinkers Employment Equity year-end function at the end of 2009.

Shaft Sinkers is committed to this process and excited about the interventions that have been planned for 2010 and beyond.

PROFITABLE RETURNS

Developing sustainable and profitable entrepreneurs is vital for the success of the economy, and corporate South Africa can play a major role in this development.

Making a profit from money you've invested is a great way to increase your bottom line. Developing successful entrepreneurs who own and run their own sustainable businesses, however, means that your investment has impacted on someone else's bottom line....and in the process; your company reaps the rewards.

Enterprise Development is not only a way to score points on the government's Black Economic Empowerment (BEE) Scorecard - it is an opportunity to make an impact on the economy, your business and those who benefit from your investment.

Sustainable enterprise development

Implementing a reliable, valuable, sustainable enterprise development (ED) programme is essential for the success of any company, especially for those who are serious about complying with the BEE Scorecard. Most South African companies have an enterprise development programme, but many confuse enterprise development with skills development and corporate social investment (CSI). Neither of these investments is focused on developing sustainable small-, medium- and micro-enterprises (SMME's) to ensure the growth of the second economy.

Gavin Friedman, Account Manager for Raizcorp's ARIZE division, had the following to say when asked about Raizcorp and Enterprise Development, "Raizcorp's core skill is the ability to build profitable businesses and transferring what we have learnt through our unique incubator (Prosperator) model into our CED (Comprehensive Enterprise Development) programme. This has given us the edge in creating sustainable, successful and holistic entrepreneurs and entrepreneurial businesses."

Raizcorp's ability to identify would be entrepreneurs proves to be not only accurate, but creates a strong platform for the ED beneficiaries, as, in a world where there is high failure rates amongst entrepreneurs, the Raizcorp process has dramatically reduced these failure rates, and in fact, has almost inverted the ratio.

"Whether a Principal invests their ED spend with Raizcorp, either as a grudge purchase or with a genuine interest to build an empower SMME's", says Friedman, "there is one thing that you can be certain of: the Raizcorp method is definitely the way to go!"

INTERVIEW: Lwazi Hlope – BrushImages Photography

Lwazi Hlope from BrushImages Photography is a Raizcorp CED beneficiary who is nearing the end of his first year on the programme. We caught up with Lwazi to find out what the experience has been like for him and to find out more about the journey which led to his ending up at Raizcorp.

What led you to pursue a career in photography?

I grew up in the East Rand. I was an only child and I had an easy childhood. I went to Athlone Boys High in 1995. I dreamt of becoming a professional soccer player and was made captain of my school’s soccer team. During my high school years, I also discovered art. I matriculated in 1999 and went on to study Interior Design. During my 2^nd year of study I discovered photography and decided to give up interior design in favour of this new passion. It was during this time that I heard about a photography scholarship being offered on YFM. I entered the competition for the scholarship and was astounded when I actually won. While I was busy with the photography course, YMag did an article on me and showcased some of my work. Two years later the same magazine called and offered me the position of chief photographer. Of course, I said yes. I was with them for 2 years.

Why did you decide to leave the magazine?

The work started to become very repetitive. Also, it is a young brand aimed at the youth and I felt as though I was starting to outgrow the brand. I ventured out on my own and, after struggling for a year, was lucky enough to discover Raizcorp.

Why did you decide to go your own way as opposed to perhaps moving to another magazine?

It was all about chasing a dream. I wanted to be creative in ways that, I felt, would be restricted if I was in permanent employment. I wanted more freedom to create.

What were some of the difficulties which you faced as a new SMME?

Not having enough knowledge and realising that the support which I thought I would have, through contacts which I had, was actually not there. It was very difficult when I realised that I was truly on my own. It was a very humbling experience. Also, business basics were somewhat foreign to me. Not knowing how to approach sales, etc. made it very difficult.

How did you hear about Raizcorp?

A friend of my wife’s told her about it. My wife and I discussed it and, after all the frustration that I was experiencing, I decided that I had nothing to lose by giving the programme a go.

What has your first year on the programme been like so far?

I came here thinking that Raizcorp was going to be a quick fix. However, that was just wishful thinking on my part. Raizcorp ended up providing me with the guidance needed in order to address my problems and also giving me the knowledge and understanding to fix these problems myself.

I learnt to let go of what does not work and I learnt how to apply new information. I love the support which you get. It’s ongoing and I no longer feel alone. I learn something new every time I am at Raizcorp; not just in class, but also from the other entrepreneurs whom I have met at Raizcorp.

A highlight for me during this first year was definitely winning a Raizcorp Award for Outstanding Growth in Personal and Business Development. This was confirmation to me that I am heading in the right direction. I recently employed someone for the first time and I have finally started paying myself for the first time, and that was a great feeling.

Are there any final thoughts you would like to share with us?

I have realised that I am blessed. I decided to study photography, and the bursary happened. From there, the opportunity to work for the magazine came up. I then decided to go it alone and, after a brief struggle, I discovered Raizcorp. I would definitely like to thank everyone who helped me to get to where I am. I find it amazing that there are so many people out there who really just want to see me succeed. It is humbling and it makes me realise that the world is essentially a good place!

INTERVIEW: Moabi Tladi - Black Print Design

Tell us a little bit about your background.

I grew up in Tembisa, surrounded by an entrepreneurial family. My parents and extended family are all entrepreneurs. I attended Athlone Boys High and later matriculated from General Jan Smuts High. I then went on to study Graphic Design at the Vaal Technikon (as it was then known).

Have you always been interested in Graphic Design, and what made you decide to venture out on your own?

I was interested in advertising in general from a very young age. I decided to venture out on my own as I did not enjoy the restrictions imposed on me as a result of being employed by someone else, especially time restrictions. When you have your own business, the hours may be longer, but at least they're yours. Creativity does not keep office hours. Even though the hours may be long, and the work tough, there is a satisfaction in knowing that "what you put in, you will get out".

What are a few of the difficulties which you faced as an SMME?

It is very difficult to "crack it" in the business world, especially in the world of visual design and graphics. It is easier to get business in other parts of Africa than in South Africa, but that needs greater resources. The South African market is very tough as we have a greater choice. This makes for a very competitive market and the “Dotcom” boom has delivered solutions straight to the client. The balance between First World and Third World economies, within South Africa, is very difficult to achieve.

What made you decide to join Raizcorp?

I walked into the Business Place in Marshall Street looking for office space and was told that Raizcorp could maybe help (even though they weren’t sure what Raizcorp did). I then proceeded to find out more about what exactly Raizcorp was all about and was hooked by the fact that it did not provide financial assistance. I have always believed that if you applied yourself, then you would be profitable, so it appealed to me to learn how to apply myself. Going through the Raizcorp programme also saves time as I could learn everything I needed to, just as if I was attending a business school, only in a more practical way that focused on my own business.

Now that you have completed your 1st year, what has the experience been like for you? What were some of the highs and lows?

Well, Raizcorp has been very good to me and I have learned and grown so much. A high was definitely attending the "Who Am I?" course as this was a real eye opener and I would recommend that any new Raizcorpian attend this course first. The realisation that “it all begins with me” had a huge impact on my growth as it opened my eyes with regards to how I deal with things. The "Am I An Entrepreneur?" course was a key success factor in my business as I was able to grasp I you go about making business decisions. I was then able to see the links between myself on a personal level and my business.

The lows revolved mostly around time management as I was not really prepared for how much time it would actually take to work on the programme (especially the Maps). I think it was also difficult as the entrepreneurs (in general) don't fully understand the relationship between the Sponsor, the Entrepreneur and Raizcorp.

What are you looking forward to as you go into your 2nd year?

My second year is definitely “All systems go!” I believe, now that I have learned the basics of business, I can apply them in my second year and experiment with them so that I can find ways to grow.

Give us a brief explanation on exactly what it is that you do.

BlackPrint Design is a visual merchandising company that assists its clients in creating corporate identity. It provides services such as graphic design, logo creation and printed merchandise.

Final thoughts or comments?

I have learned that everything you need is there; you just need to keep your eyes open and your ear to the ground. Read the messages on the walls. Talk to people; you’ll be surprised at what you can learn. And don’t take the experience for granted!

Remember that it is a two-way street between entrepreneurs and sponsors: they need each other for sustainability and growth in the country.

And, lastly, entrepreneurs need to start thinking more broadly: see your business big and you will see the big impact it can make on the world!

Raizcorp Marshall Street Introduces P4

The Raizcorp Marshall Street Prosperator has launched a new product called P4 (Pre-Partner Prosperator Programme). The launch of this new product is a direct response to potential Partner or CED candidates not immediately qualifying for these respective programmes. P4 aims to address this gap by equipping these candidates with the necessary skills and know how to increase their company’s turnover and sustainability. Through this P4 becomes a stepping-stone for the candidate to move into the Partner (Ramp) or CED (Arize) programmes.

About P4

P4 combines the following Raizcorp components:

1. Raizcorp Business Think Process

2. Raizcorp Group Guiding (Magenta sessions)

3. Shelf Appeal

These components have been structured to create a 5-month, 2-hour per week programme. The programme is designed to allow participants to enter at any month in the 5-month cycle.

Entry Criteria

Without exception, all P4 candidates have to meet the following minimum criteria:

· Intend to be the owner, or already own a small business and be active in it

· Have a cell phone

· Have access to a computer and have an email address

· Be responsible for their own transport

· Be 18 years or older; and

· Pass the Raizcorp entrepreneurial assessment

Benefits

· Expert outcomes based facilitation through the Business Think Process

· Comprehensive knowledge and understanding of general business principles, and your own business

· Access to Raizcorp’s core programme offerings on graduation from P4

· Interactive group guiding sessions and an opportunity to meet like-minded people with whom to network

Candidate Commitment

Assessment fee (Once-off) R350 (incl. VAT)

Monthly commitment fee R600 (excl. VAT)

Output

The outcome of P4 is a Business Think Document that can be used to raise capital for your business, as well as provide a firm foundation on which to build and grow your business to profitability!

P4 launches in March 2010 and we invite anyone who is interested in attending to contact Riaad Isaacs on 011 838 8260.