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- Not one of the usual suspects
Fulton Ramaphakela proudly proclaims he is not considered one of the usual suspects, those corporate barons whose names are frequently mentioned in connection with the country’s top business deals; at least not yet.
But, the 34-year old is ambitious: “If you look at the likes of Cyril Rhamaposa, Tokyo Sexwale and Saki Macozoma they are all in their fifties, I have at least 15 years to go. But, I am giving myself ten to get to that level.”
“What a lot of people forget is that none of those guys started out getting billion rand deals, they took their time and worked hard; just like all the big companies in the country. Sure, Apartheid provided white business owners with the right opportunities but they still had to build their businesses. So, no one should expect to build up such a business in a few years,” he says.
He adds that companies like PPC have been in the cement business since 1892, so people who go into the cement business now should know that building a business that can compete will take time.
“A lot of entrepreneurs make the mistake of assuming they can build a solid business overnight; it takes time and hard work,” he says.
Indeed, it hasn’t all been plain sailing for the founder of Moloko, when he started in 1997 he only had R2500 from his last pay cheque to his name. “I always thought that I would start my own business but there is always that fear that it won’t succeed.” He told Tycoon, before admitting that he did have a back up plan.
“When I left my job at an International IT Company I had a job lined up at another ICT firm. But, because I had a lot of leave due to me I had a month off. So I thought I would give myself thirty days to try and start a business and then, if it didn’t work I always had the new job to go to.”
After the thirty days things were going relatively well and he asked his new employers if he could postpone the appointment until the next month but half way through he gave them a call and said that he wanted to give this business of his own a go.
The business started out selling computer hardware, which is where Ramaphakela’s roots lie, “My father was an electrical technician and had his own business and I loved anything electronic.”
It was a hard slog, especially because funds were low and none of the banks would lend him any. Eventually he managed to convince someone at Pinnacle Micro to take a chance on him and let him sell their products to clients. Soon he was bringing in sales over more than R50 000 per month and Pinnacle Micro was happy.
As it turns out he didn’t need the back up plan, the group is now a multimillion rand company involved in six areas including security – it owns Vimba Security, which has the largest armed response presence in high risk areas – to asset management, IT, building and is now venturing into the mining arena.
Ramaphakela is involved in all of it, something clearly evidenced by the clothes draped over a chair in his office. An expensive tie lies on top of a Vimba security jacket; when asked about it, Ramaphakela laughs recalling a series of investor meetings that he attended. On day one he was wearing a bulletproof vest and talking all about the merits of his security firm and the very next day, to the same investors about asset management in a three piece suit.
Asked the secret to his success so far, he was among other things, crowned the South African winner of the emerging entrepreneurs’ category in the 2006 Ernst & Young world entrepreneur programme, and last year named the Mens’ Health Best Man in Business in 2007; he says much of it is about having fun.
“Until I won the award, I was just having fun but, since then I have learnt a great deal from the judges and previous winners that I am now having fun and running a business.”
Indeed Ramaphakela told Tycoon, that anyone can be an entrepreneur; you just have to nurture the impulse. But, he adds, while entrepreneurship is good it needs to be tempered with sound business practices.
“Entrepreneurship is about innovation and starting new things, but you need to strike a balance between that and creating the right processes and structures. If you teach a child good manners when he is young then those disciplines stay with him as he grows older and businesses are the same.”
He adds, “If you walk down the road and see piles of refuse in the streets, there are two reactions you can have, the first is to say what a mess, wrinkle up your nose and walk away, or you can say, there is money to be made cleaning it up – that is the difference between an entrepreneur and everyone else.”
But, importantly, he believes, one should always try to leave doors open. If you leave a job, try and do so on good terms because then, if need be you always have a backup plan.
Asked what he would advise young people just starting out, he says, the best thing one can do is to speak to as many people already doing it as possible. “Just ask questions, don’t be shy and you will be amazed at the tips you can get,” he says, adding, “You never fail in business; you just learn what not to do again”.
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