Johannesburg - Early cash generation is vital for small businesses in the start-up phase of their business.
Conrad Steyn, MD of investment firm Barnstone, talks to My Business about the experience of growing his company into a R115m a year turnover business servicing the likes of Sasol, ABSA, Anglo American, Cell C, Eskom, Liberty Life and the World Bank.
Tell us how your business came into existence.
We were four guys that started Barnstone, who all had the urge to get away from the corporate world. We had no product when we started the company. We created a vision and based on market needs, created products around our vision.
Apart from human resources and a proper back office, we still honour the entrepreneurial spirit in the way the company is structured and managed.
Have you been involved in any other business?
Yes. We all started in big corporate consulting firms, mainly in the chemical and manufacturing industries. We drew on those experiences to make a success of Barnstone. I've started businesses in the past - some were successfully sold and others failed - but that taught me valuable lessons and brought me to where I am today.
What has been your biggest headache getting your brand off the ground?
There was absolutely no brand when we started. We came from big organisations which automatically had credibility but when we started Barnstone, you only had yourself to sell; there was no well-known name to open doors.
Apart from getting clients, coaxing new employees to come to a small, unknown agency was also a challenge.
What makes you get out of bed in the morning?
Starting something from nothing and making a success - even a small one - is very rewarding and a great motivator each time.
Do you have any advice for budding entrepreneurs?
Do it as soon as possible - the younger, the better.
Do you have any personal motto or creed you live by?
Positive thinking - don't let risk scare you.
Any advice for entrepreneurs looking to work in your industry?
Look at how you can generate fast cash flow. Don't make big investments in products that will only generate cash flow in years to come. Generate cash from day one.
Where do you pick up tips and tricks on how to be a successful entrepreneur?
It's a combination of reading up as much as possible and implementing strategies in a clever manner. Make it your own and learn from personal experience. Also make friends in your industry - work for the bigger picture and collaborate with industry partners.
Any business person you particularly admire and why?
Not one but two spring to mind: Richard Branson [CEO of British firm Virgin] - he's radical, non-conformist, creative and sporty; and Jim Collins [US business consultant] - he has practical ideas and is action-orientated.
Give some idea of your business now in terms of size (employees) and where you look to take it.
We were able to employ 88 employees in four years and now have three offices, including one in Melbourne, Australia.
Any business achievements you are particularly proud of?
I made the first large sale for Barnstone to a large organisation based on reputation and past experience, rather than the available infrastructure and resources.
- Fin24.com