Obsessive entrepreneur

Johannesburg - Entrepreneur Benon Czornij of web development firm (or human-computer interaction consultancy) HelloComputer is an interesting business case for many would-be IT entrepreneurs.

Czornij went through the giddy highs of the tech bubble in the late 90s, came back down to earth and then over the last three years built HelloComputer up to the second-biggest web development company in the Cape, with an annual turnover of about R10m employing 25 staff.

Over that time he has been responsible for the development of some of the top websites in the country, including Polka, Metro, 5FM and Wilderness Safaris.

Fin24.com sat down with Czornij to find out what he thought makes an entrepreneur tick:

In your opinion, what makes a good entrepreneur and are there any companies you particularly admire?

Obsession is a characteristic of an outstanding entrepreneur. Companies like Apple and Pixar are companies which are driven by an obsession to detail. Pixar (which makes animated movies such as Cars) will throw all their attention into developing a clip to work out how to reproduce the texture of human hair in their movies to make the end product as believable as possible.

In the same way, for an IT engineer working at a company like Apple is an honour. The guys that run these businesses are sticklers for detail that other people might miss or not care about.

You've been through the ups and downs of the tech industry and every year we see fresh-faced young entrepreneurs trying to strike out into the tech scene and failing. What do you think is the reason for this?

Let's be honest - it's very unlikely that an 18 to 20-year-old is going to get a firm to hand over a R1m contract. In the IT industry there is a saying that 'nobody ever got fired for buying IBM' because it is a tried and trusted brand - a new entrepreneur doesn't have this.

Young entrepreneurs need to learn how 'corporates' think and how they assess risk. It often helps for would-be entrepreneurs to go and work in a corporate environment for a while and build up some relationships - I did it after the tech bubble burst.

When we were ready to launch HelloComputer, one of the most important assets my partner and I had was a network of contacts and initial relationships we could use to market ourselves.

Startup entrepreneurs also need to be realistic and start with small projects and build up a portfolio for themselves to prove that they deserve to be trusted.

You mentioned the power of brands like IBM, Pixar and Apple - do you think there is a lesson here for small business owners?

Absolutely.

Take an Apple product such as the iPod as an example. There are many other products that do the job probably as well as the Apple product, but people continue to buy Apple because it is a respected, well packaged brand.

When you buy an Apple product it comes in neat packaging that makes you feel like you've bought quality.

It's the same with a car brand - take the Volkswagen Touareg and the Porsche Cayenne. Both of them are excellent brands and basically the cars are mechanically pretty similar. But when you walk into Porsche you are treated to something different as a consumer experience.

Yes, but surely you can't expect an SME to try and replicate what a big money brand like Porsche is doing?

Why not?

I have a client who represents a multinational product line in South Africa. He works from a small house but his clients interact through his website. His website surpasses some of the other international distributors, which gives clients an impression of quality that reassures them.

Small businesses need to remember that by presenting a quality experience, through a website or shop front or however they are interacting with clients, they leave a good impression.

The web is your game and something you understand - but any other ideas in terms of marketing that could get an SME going?

The web has many facets for marketing, including things like websites, Google and online public relations.

We often hold cocktail parties or client functions where we can demo our material in a social environment and get people talking. When you start talking to people, you find a lot of potential business.

I know we're also looking at a pretty grim economic picture at the moment, but I read a statistic the other day that showed that companies which increased their advertising spending during an economic slowdown or recession actually saw a 70% increase in sales as the cycle turned.

SMEs need to consistently reinforce their brands.

Pricing remains an issue that many SMEs struggle with - any advice?

You have to discount a little to get into the market, but you also need to make sure you are not working hard and never actually making any money.

There are also problems with the perception of being too cheap. There comes a point where the client believes in the value you add and price is not the deciding factor for their buying decision.

Any other advice for Fin24.com entrepreneurs?

Build relationships - if you get excited about a client's project they will see you are serious about working with them. And for those entrepreneurs who are battling at the moment - if you believe you have a good idea, then push through it.

- Fin24.com