Technology and issues close to our heart

Ever gone to a restaurant with a group of friends or a few couples and now the bill comes. Let's calculate quickly or just make a quick division to split the bill. The reality is if we are going to split a bill then surely we should do it correctly. It is quite an irritation as it is quite difficult to make a calculation right there. Also what if I wanted that extra special expensive cigar and no one else did.or more wine. I think that all restaurants should have a special app for split bills. I recently heard the idea and thought how practical, that's something I would use. Like all apps I am not a fan as most don't make any money but this is one that if fitted to all restaurants ( and restaurants would buy it) then it may work.
At the same workshop I also heard another idea that is very personal to me. Magnificent hard working sportsmen and women who sweat blood and tears to make it on the world stage but receive no sponsorship from companies or government. Damn it irritates me because I know how hard these guys work. There should be an organization that connects sponsors with minor sports not just the big money sports. Perhaps starting with crowd funding and later with connecting money to actual sporting codes who don't have any financial support. I think this is something I need to do as my young son is a top karate fighter and if we travel overseas to compete it will cost me a fortune. This must be done on a web platform. Another good example of technology that could makea big difference
I suppose the lesson here is innovation is sometimes best handled when very personal and tackles issues that are very close to our hearts.

People give money to People not businesses or causes

i recently started The Fundraising Academy. The objective was clear. Train people to raise money for their businesses or projects. As a profession in South Africa it is quite clear that there are thousands of people trying to do positive social projects ( or non profits)....in fact 100,000 of them and they all need to raise money, and there are thousands of entrepreneurs who need money for their business start-ups. The issue of capital raising is an interesting one but i dont think it has changed much over time. Most money is given by people to other people rather than the value of the new idea. What this means and what i teach at the academy is someone will first invest in you and not your cause or business. They first need to "like you" or trust you or beleive in You! This is a difficult proposition for most young entrepreneurs as they promote their brilliant ideas. They need to be promoting who they are and they need to start by building genuine relationships with possible people who can fund their brilliance in ideas. When i listen to a pitch most people sell ideas and causes. They dont understand that a potential investor needs to understand who they are first. In an age of technology, building genuine relationships has become much harder for young people. I mean a young couple can be dating online, thousands of miles away from each other, talk on the phone daily ( sorry i mean on facebook or Skype), for years and never actually meet face to face. What skills are these young people learning? What happens when they eventually do meet and move in together? A disaster. The same applies to raising capital for your business. You need to meet people. Build genuine relationships with them. Let them get to know you and then they might just bet on you. Let me emphasise genuine again and again, as most people who seek money from other people are often not genuine. If someone doesnt give you money its not personal. But that relationship needs to be. When i hear young people pitch new innovations they fail to build this connection between people. The idea is rarely strong enough. The other option to raise capital is to go to a bank ( good luck), go to the government ( better luck). This form of raising capital has and will always work. However let me throw in a quick caveat. Crowdsource funding may just change the game altogether. Where millions of ordinary Joe's fund other ordinary Joe's, anywhere, anytime. If you cant make this work however you will still need to revert to the old ways....people give to people not to great ideas.

My Raymond Ackerman entrepreneurship students are on a roll again! Check out the top 12!

Every year I lecture on innovation and love all the new ideas that come out of the course material. I really want the students to be as succesfull as Sizwe from Iyeza Express who has become quite a phenomenon. like always I get the students to use my newspaper technique and they look for innovative cutting edge ideas. I have chosen my top 12 ideas for this grouping: 1. Water protection devices for cloth bandages. In my research I saw that the product has been developed in the USA but nobody is importing it into the country. A great opportunity. 2. Breakfast traffic service. As long as the city of cape town allows this a great brand during peak hour traffic would be wonderfull. 3.  A 2 -day storage box for shack fires. When there is a shack fire people need to store their goods for at least 2 days until they build another shack. 4. Mourning camps. Its easier to mourn in a group or online than as an individual and with high levels of violence we need this. 5. Mobile Beach lockers. My fave idea for now. 6. Gun-powder detector. I love this idea. If someone has any gunpowder on them it means take a wide berth from that person. 7. Lie detector system on phones. My second fave idea. 8.  Manufacture of local celeb latex masks. Julius malema must be our first one. 9. Car Key breathalyzer. Again it does look like it could be imported but every car manufacturer should be placing these on every key for a new car bought. 10. Automatic car indicator. Most accidents happen because of a lack of indication. This can only work on a GPS system. Quite controversial. 11. Heart rate monitor while driving 12. Production of a range of swings for low income areas Hopefully one of these will become a huge success with a great new brand.

What will trend in Innovation in 2014?

There are a few trends that should dominate my 2014.

The first is the innovation trend to extrapolate a small thing into many things. What I call innovation diversification. So when someone identifies an insect like the locust as a new food in the market the true entrepreneur will make 100 varieties of this same product. Chocolate ones should be good.

The second trend in South Africa will revolve around innovation in our national elections. How innovative will we be campaigning and who will deliver the most innovative campaigns that will catch the eye of the public. Julius malema’s red beret is a case in point. Well done Julius…good job!

The next trend will be how low income consumers adapt to very difficult economic conditions. I see a huge market for cheaper varieties and brands of soup, and bread ( note Mama Mimi’s) as well as beans ( the baked ones in tomato sauce being my favorite).

Another trend will be how foreigners bring in the mundane older concepts from their countries into South Africa and it becomes a big hit here. Like the Fondue from Switzerland ( remember the 70”s) or Schnapps from Austria. As we have some nay foreigners in South Africa all they need to do is to bring what they see as old and normal to us and we will love it. I think the Japanese have so much to offer here and I encourage a Chindogu store please.

Trending also will be the World Design Capital in Cape Town. New ideas, new innovations and I hope lead to some really exciting and edgy installations in my city.

I heard and interview with the new head of Primedia who said in relation to movie theaters quoted someone else who said, “ Theaters have been around for 1000 years and they will be around for another thousand years”. Really! Don’t think ill be investing in Primedia shares thank you if that’s the level of innovation and change form the new CEO.

Have a great, Innovative 2014!

THE MOST EXCITING DAY OF THE YEAR IS WHEN MY STUDENTS PITCH THEIR FINAL IDEAS

Every year i teach a course at the Raymond Ackerman Academy for entrepreneurs at the University of Cape Town. My course is strictly innovation but i follow the same process as always. Ideation technique through Seeing the leaves workshops and the newspapers, Testing ideas and finally pitch. The pitch session is happening on the 19th Nov and i would like to share with you some of the ideas that have been tested and will be presented as they epitomise innovation the way I see it.

There is Aidan who with some help has designed a web site that will enable thousands of small businesses to have a one day sale once a month.

There is Lundchen who has designed a barrier for accident and murder victims in the public domain to be used by police and emergency services so children and others don't need to see this traumatic incident.

There is Nurishaam who has designed and made a personalised car alarm so you never get confused again whose alarm is that?

There is Donovon who has designed and built a smelly water pistol device to be used as a deterrent against criminals. It smells like vomit....literally.

There is Mel who has started recycling make-up and created het own range from it.

There is Shihaam who has taken an Israeli concept using motorbikes to get to motor accident victims to stabilise them and thus save lives.

And the list goes on...

It will be a tense and wonderfull morning of pitches but it will be the highlight of my year.
 

The Bakery Business and Mama Mimi's

So the biggest and most exciting thing in my life right now is Mama Mimi's. Mama Mimi's is a bakery business with a twist and it really works.
Most Bakeries (especially as developmental projects) fail for the following reasons....
1. They use equipment that is too expensive
2. The equipment needs electricity that is too expensive
3. There are too many bakers leading to low profit margins
4. With the bakers ownership is always an issue and leads to conflict
5. They use containers that are uncomfortable or community centres that are not good venues for bakeries
6. The product is not consistent as they need to mix all ingredients themselves
7. They are not a properly functioning business, and are not managed and run as businesses with proper records etc

Enter Mama Mimi's. Now I am the most sceptical person the planet when it comes to bakeries but this model rocks and I came on board asap. So why does Mama Mimi's work:

1. The equipment is a single wood fired oven
2. The oven is very affordable even for poor women in communities
3. The single women baker makes a great profit that she can control and she doesn't need to share it
4. Mama mimi's can set up 1000's of bakers all over the country even in rural areas
5. The bakeries are at women's homes
6. The product is very consistent as they use a premix sold to them by Mama mimi's ( this is their core business)
7. The businesses function well and are easily managed based on premix sales.

So watch this space as Mama Mimi's is going to literally take over the baking world....and its not going to be bread alone as there is already pizza and cupcakes on the menu.

How can you get involved?

You can fund a oven for R5500 ( $550) to give a woman a great start in a great business. If you need the $550 back the women entrepreneur will make enough money within the first 5 months to do so.

The story of the boiled frog

There once was a frog and he was really comfortable in his cool pond. But then the pond started to warm up just a little, and although he was aware of the water temperature rising he decided to stay. As the water became a little hotter and hotter he realised that it was too late to move and he was boiled.
This is a very famous fable for entrepreneurs and businesses, especially small businesses who often only have one large client. When that client pulls out the entrepreneur is boiled and goes under. Liquidated!
The way to avoid being a boiled frog are:
1. Generate a funnel of potential new business. This funnel should be documented onto paper and new leads followed up all the time. Some of the new leads will become real and sometimes it just doesn't work out. However without the funnel new business will never be created.
2. Strategise about new ways of doing things all the time. A good strategy will translate into new business and new leads, and often a strategy needs to be revised every 6 months.
3. My general rule is that for every 10 new leads 1 will be a success. So to have 10 new clients will mean I need to approach 100. This seems like a lot but the formula does seem to work.
4. If over time new leads don't translate into business then move on. My general rule is a maximum time limit of 6 months.
5. Keep focused on what your business does and don't stray too far from that focus. Many small businesses take on work that is too difficult because it is not part of the core business.
6. You should have many smaller clients as well as a large client. If one small client is lost then its not a train smash.

So the lesson here is important. When you are in a good place, and the water is cool and good you need to work very hard to keep it that way. The only way to do that is to generate a funnel of new business and keep working at it so you don't become a boiled frog one day.