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Just over a decade ago I had an intriguing conversation with Sipho (not his real name), a former Technikon colleague, friend and entrepreneur. You see, after Technikon Sipho joined one of the parastatls and I opted for university to complete my degree. But we had always kept contact.
Sipho had phoned and said he was coming down to Durban (he now lives in Gauteng) and he really wanted to see me. “Ernie I have a million rands that I need to invest. I am thinking of buying a chicken franchise. Would you advise me how to go about it?” The words just rolled in his mouth; no emotions at all – a good signal that such language was just a norm for him.
I actually had to take a good look at this young man once more before I could answer him. A million rands in the bank account? Was this all real? So many thoughts gushed into my brain. Is this the same person who only three years earlier had been completely bankrupt? Yes it was. Both his house and car had been repossessed! But why?
You see, Sipho literary filed for voluntary personal bankruptcy. He willingly got himself in that “love to hate” database called the Credit Bureau. I remember seeing his house on the “Sale In Execution” section of the newspaper after his previous employer of 5 years decided to put his house for sale. He just could not transfer his bond to another bank or find a buyer for it. The R60 000, or so, excess was too much for him.
“I m a trained Electrician. Ernie,” he had told me – trying hard to hide the eminent freely flowing tears from his wet eyes, “That is what I chose to do when I left school and that is what I want to do. I love working with hands… If that means doing so for the rest of my life, then let it be”. He regarded his managerial position as nothing more than a glorified clerk. The man had eventually connected with his passion once more! How much money would you pay for that?
However, Sipho like many FFT Ezine readers had unconsciously fallen into the “middle-class-mentality trap” (or the instant gratification syndrome as I sometimes prefer to call it): People must know when I have arrived! He had bought a luxurious house in one of Durban’s posh suburbs, financed it at 100% bond (installments plus insurance alone amounted to 30% of his gross).
He had also bought a sport VW Jetta – repayments including insurances, tracker etc also approached another 30%. If we consider that another 30% went to Receiver of Revenue (income tax); add food and beverages, medical aid, insurances (most of them unnecessary), petrol, etc - he was virtually bankrupt anyway. Does that sound familiar? I know it hurts, but the reality is that it is true with most of the FFT Ezine readers!
Most people cannot amass enough strength and will power to climb off the bus to mediocre paradise. They cannot get a view beyond the job (just-over-broke) situation. I am in no ways advocating that we must all leave our jobs and start our own businesses. Not in a million years.
Infect I know people who did the opposite and even lived better lives. A case at point is Sizwe Nxasane – presently CEO of FNB! Let me go back to Sipho’s story before I get carried away.
Now something else had also happened: The interest rate ineptly spiraled upwards. History really repeats itself.
Have we not just experienced the same phenomena? But it all did not matter for Sipho anymore. “I am already struggling –and worse, I am doing something I do not enjoy. So what’s the point?” He quizzed. So he resigned and set off on his own. His capital was only the 5- year meager pension payout. But I know it definitely had not been an easy road!
A few times I also had to help. I would never forget the day when I had to travel all the way from Durban to Newcastle to rescue him from his employees. A really life and death encounter! It was either his life or their salaries – but he could not even afford petrol to get home - his family had not seen him in almost three weeks.
Sipho decided to leave a really secure job; put his newly-wed-unemployed wife and a six month old daughter under severe risk. He certainly had not won lotto and above all he could not access any overdraft or loan. Infect he could not buy anything on credit because of credit bureau listing yet…
…. Yet here was me with a higher qualification (or as I have always been made to believe). I own a relatively bigger house and two exotic cars (in reality it all belonged to the bank). My cheque book balance was less than a thousand rands. My two credit cards had a combined total debit balance of –R9 500. Something somewhere had gone amiss!
… Yet here was Sipho freely chatting about “a million rands in the bank” which he intends to invest in something else - over and above everything else he now owned: a thriving business, trucks, cars, house, etc – all paid for in cash?
This experience gave me a real crash course in business. My short stint in an MBA program could not do it. All the theory from business books and advices from accountants… everything else out the window, It can never be better than this. Sipho defied all the logic. This is called Learning from other peoples’ experiences. What value could I put on that course?
This is what purposeful individuals are made of. They are not more intelligent than us. They are seldom inheritors of great wealth. They drink the same water as us and breathe the same oxygen that we breathe. They are not necessarily always lucky to have advantageous starting positions; however they are determined to succeed regardless of the circumstances.
You see Sipho had something else that money cannot buy. It is almost as valuable as capital in a business- at times it is more valuable than Capital itself. It is called determination! Yes…I mean it. With half determination and all the capital in the world, great business ideas have failed. However, with almost no capital and, lots of determination, great ideas flourish – and miracles become reality!
Remember those three virtues. No money can buy them. They are: Connecting with your passion; Learning from other Peoples’ experiences; and Determination to succeed despite the all challenges. May you have the will to learn, the serenity to understand and the guts to take that first step.
God bless!
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