From a pair of clippers and a chair at 'The Stop' in Eldorado Park to 80 stores in Southern Africa, creating over 800 jobs and an extensive hair care range, this is the story of Sheldon Tatchell, founder of Legends Barber.
Tatchell, the keynote speaker at Edge Growth's second Investor Day held in Johannesburg on 19 March, shared his inspiring journey of building his business, driven by a desire to escape poverty since he was 14. He shared with the audience how he became Africa's leading grooming franchise.
With an audience comprised mostly of small South African business owners, this keynote speech was both practical and deeply inspirational, based on real-world experience. Edge Growth's now annual Investment Day brings together small businesses and owners from across its ecosystem and investment portfolio, providing them with valuable insights from industry experts on key strategies to grow a business. The event also provides a unique opportunity for business owners to network directly with the funders themselves.
Another presentation by Philani Mzila, Head of Investments at Edge Growth, shared insights on how businesses can access funding, as well as outlining the different types of funding available to South African SMEs.
Based on his experience investing in 10 African countries and assessing over 1000 deals annually with his team, Mzila outlines the current funding landscape, explains how to effectively raise funds on time, reduce friction in the process and choose the right path depending on the stage of the business.
Importantly, Mazila's audience at the investment day included business owners who had already secured some level of funding, giving them the opportunity to understand the next steps to accessing additional resources to drive further growth.
“Not all capital is created equal and choosing the wrong type can waste time, strain relationships and slow growth,” says Mazila.
Next was Vuyo Tofile, founder and CEO of Tupost, a technology-enabled company that helps brands and businesses deliver goods and services to urban, semi-urban and rural communities. Tofile also serves as Co-Deputy Chair of the E-Commerce Forum of South Africa and has facilitated several market access workshops for SMEs. In its presentation addressing market access, Tofile focused on the concept of the 'invisible premium' – the idea that value and trust often matter more than cost. He emphasized that businesses can achieve real success when they build trust with their customers.
He also highlighted that the problem in Africa is not of product but of trust and distribution. Brands need to optimize their distribution strategies, especially in the B2C sector, to ensure that they reach customers effectively. Citing examples such as Bathu Sneakers and Yoko, Tofile showed how these brands achieved the 'invisible premium' by building trust, fostering emotional connections and optimizing distribution to effectively reach customers.
“Trust in a township depends on a person, not a pixel or an app,” he says. Relationships and credibility drive business and are often what separates successful businesses from the rest.
Dr. Lynette Magasa, CEO of Boniswa Towerco, Lomo Senomadi, CEO of BICS, Velani Mboweni, Co-Founder and CEO of Lula Loop and Zinhle Mncube, Facilitator of Edge Growth.
Investee Day concluded with a panel discussion, facilitated by Zinhle Ncube, Investment Principal at Edge Growth, where business owners shared their entrepreneurial journeys and the challenges they faced along the way.
The panel included Welani Mboweni, Co-Founder and CEO of Lula Loop – a tech-enabled mobility platform; Lomo Senomadi, CEO of Bashumi Instruments & Control Services (BICS), a provider of laboratory equipment, consumables, specialty chemicals, repair and technical services; and Dr. Lynette Magasa, CEO of telecommunications and technology services company, Boniswa Towerco – part of the Boniswa Group. Each business owner shared the inspiration behind starting their venture, challenges experienced and lessons learned. The discussion also explored the moment when each entrepreneur realized they were onto something with real potential.
Mboweni shared that for them, the moment came when their customer base began to expand beyond friends and family, with new customers actively seeking their services. He says another defining moment came when his drivers shared feedback, highlighting the meaningful impact this employment has had on their lives and families.
Reflecting on her challenges, Senomadi shared a defining moment when a subcontractor let her down just a day before a big delivery. Frustrated with no prospects for a customer, she took action herself – moving into the factory with a small team to fulfill orders, despite the unplanned costs. The result was a successful, on-time delivery and a valuable lesson learned – never take an order unless you are confident you can deliver.
When asked how to navigate the different skill sets required of founders and CEOs, Magasa advised entrepreneurs to hire individuals who are more skilled than them in key areas. He also highlighted the importance of having a trusted advisory board for guidance, especially when facing difficult decisions.
Janice Johnston, CEO of Edge Growth Ventures, closed the day's proceedings, saying, “You all continue to move forward on this journey day after day, and I think that spirit of commitment, resilience and curiosity carries throughout the day.” She describes Investment Day as her favorite event of the year. “There are many reasons for this, but primarily because of the entrepreneurs we support – their enthusiasm, passion, problem-solving and all the different aspects they bring to our economy. These efforts underpin socio-economic development for many.”
For more information, visit www.edgegrowth.com.