From a pair of clippers and a chair on a ‘stoep’ in Eldorado Park, to 80 stores across Southern Africa, the creation of over 800 jobs and an extensive hair care range, this is the story of Legends Barber founder Sheldon Tatchell.
Tatchell, the keynote speaker at Edge Growth’s second Investee Day held on 19 March in Johannesburg, shared the inspiring journey of building his business from the age of 14, driven by a desire to escape poverty. He shared with the audience how he became Africa’s leading grooming franchise.
With an audience consisting mostly of small South African business owners, this keynote was both insightful and deeply inspiring, grounded in real-world experience. Edge Growth’s now-annual Investee Day brings together small businesses and owners from its ecosystem and investment portfolio, offering them valuable insights from industry experts on key strategies for scaling a business. The event also provides a unique opportunity for business owners to network directly with funders themselves.
Another presentation which was delivered by Philani Mzila, Investment Principal at Edge Growth, shared insights on how businesses can navigate access to funding, as well as outlined the different kinds of funding available for South African SMEs.
Drawing on his experience investing across 10 African countries and assessing over 1 000 deals annually with his team, Mzila outlined the current funding landscape, explained how to time fundraising effectively, reduce friction in the process and choose the right path depending on a business’s stage.
Importantly, Mzila’s audience at the Investee Day consisted of business owners who had already secured some level of funding, giving them the opportunity to understand the next steps for accessing additional resources to drive further growth.
“Not all capital is the same, and choosing the wrong type can waste time, strain relationships and slow growth,” Mzila says.
Next up was Vuyo Tofile, Founder and CEO of Tuupost, 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 chairperson of the E-commerce Forum of South Africa and has facilitated many market access workshops for SMEs. In his presentation which addressed market access, Tofile focused on the concept of the ‘invisible premium’ – the idea that value and trust often matter more than cost. He stressed that businesses could create real success when they build trust with their customers.
He also highlighted that Africa doesn’t have a product problem but a trust and distribution problem. Brands need to optimise their distribution strategies, especially in the B2C space, to ensure they reach customers effectively. Citing examples such as Bathu Sneakers and Yoco, Tofile showed how these brands had ‘invisible premium’ by building trust, fostering emotional connections and optimising distribution to reach customers effectively.
“Trust in the township is a person, not a pixel or an app,” he says. Relationships and credibility drive business and is often what separates successful businesses from the rest.
The 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’ve faced along the way.
The panel consisted of Velani Mboweni, Co-founder and CEO of Lula Loop – A tech enabled mobility platform; Lomo Senoamadi, CEO of Bashumi Instruments and Control Services (BICS), a provider of laboratory equipment, consumables, specialised chemicals, repairs and technical services; and Dr Lynette Magasa, CEO of telecoms and technology services company, Boniswa TowerCo – part of the Boniswa Group. Each business owner shared the inspiration behind starting their ventures, challenges experienced and lessons learnt. The discussion also explored the moment each entrepreneur realised they were onto something with real potential.
Mboweni shared that for him, this moment came when his customer base started to extend beyond friends and family, with new clients actively seeking out his services. He says another defining moment came when his drivers shared feedback, highlighting the meaningful impact that this employment was having on their lives and families.
Reflecting on her challenges, Senoamadi shared a defining moment when a subcontractor let her down just a day before a major delivery. With disappointing the client not being a possibility, she stepped in herself – heading into the factory alongside a small team to bottle the order, despite the unplanned costs. The result was a successful, on-time delivery and a valuable lesson learnt – to never take on an order unless you are certain 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 themselves in key areas. She also highlighted the value of having a trusted advisory board to turn to for guidance, particularly when facing difficult decisions.
“You all keep going on this journey, day after day, and I think that spirit of commitment, resilience, and curiosity has been a thread running throughout the day,” says Janice Johnston, CEO of Edge Growth Ventures, as she closed the day’s proceedings. She describes the Investee Day as her favourite event of the year. “There are many reasons for this, but mainly because of the entrepreneurs we support – their excitement, passion, problem-solving and all the different facets they bring to our economy. These efforts underpin socio-economic development for so many.”