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Welcome to Bizland News - Edition 10
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August
2002 |
Editor's
Note
Boy
does time fly! Not only are we already in August (where DID the year go?)
but on Saturday night I attend my sister-in-law's 21st bash - it seems like
only yesterday when I first met her as a shy twelve year old with dungarees
and pigtails! Now she is half way through a law degree and on her way to becoming
a top executive while pressuring ME to have the family for her to fuss over...
the closest she will get any time soon is the puppies, who are enough work
on their own - just reached the tear-everything-within-a-five-mile-radius-to-bits
stage - and so the fun begins!
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am sure most of you were interested to watch the first episode of the
much publicised Sanlam Money Game - the latest in a string of "reality"
shows. The three contestants had three days to make three deals and
as much money as possible, with R30 000 as start-up capital - winner
takes all. The contestants managed to get quite a bit of sponsorship
and publicity in the short time that they had, but not many people would
be able to say no if they knew that they would be on national TV. For
example, all the radio stations approached were quick to help, except
for one occasion when a contestant tried to contact a presenter via
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phone
and was given the quick brush off - tells you something about the persuasive
power of cameras! In real life entrepreneurs struggle to get finance and support,
and at least have to have a comprehensive business plan before approaching
any finance institution! The Sanlam Money Game is a great opportunity for
those wanting to win some money to make their entrepreneurial dreams come
true, but can it be called "reality tv"? Email
me your comments or post
them on the forum.
This
month we take a closer look at "Wi-Fi", the latest in wireless technology
- something that is already big overseas, but is bound to take off on our
shores in the near future. We also bring you the story of the man behind the
highly successful Mr Video franchise, showing how ambition and passion can
work hand-in-hand! Don't forget to email
us if you know of someone with a story to tell! As always, feel free to
send this newsletter on and encourage your friends and associates to subscribe
- removal instructions at the bottom.
Feature Article: Move over cellular
technology, here comes Wi-Fi!
by Piers van der Merwe, Managing Director, Saratoga
Software (Pty) Ltd.
Imagine
you are one of the chief executives of a major cellular service provider in
Europe. You've recently spent billions on one of the bizarre auctions to sell
licenses for the upcoming 3G (third generation) technology. In fact, you've
bet the company on this new technology. Over a year down the line, you haven't
seen any revenue from your investment and there is nothing on the horizon.
To add insult to injury, there is this new technology yapping at your heals
like a terrier. And guess what, the technology uses unlicensed bandwidth,
which means it's free.
This
new technology is called Wireless Fidelity, or "Wi-Fi", an increasingly
popular networking standard that's used to create wireless local area networks
(LANs) in homes and offices at speeds of up to 11 megabits per second, far
faster than the peak 144-kilobit-per-second rate so-called 3G mobile-phone
networks.
For
now, Wi-Fi primarily provides broadband Internet access to specially outfitted
computers and laptops within a few hundred feet of a so-called Wi-Fi base
station, or transmitter. These create what in the Wi-Fi vernacular are known
as "hot spots" in homes, airport lounges, or libraries. Businesses
are also adding Wi-Fi networks to allow for easy Net access from conference
rooms and temporary work stations -- and also to avoid the hefty costs in
both time and money of wiring an office.
Most
high-end laptops now come ready for Wi-Fi, equipped with a special plug-in
circuit card. Hotels and coffee shops are offering customers Wi-Fi access
as a convenience. Starbucks has equipped 530 stores and plans eventually to
enable more than 70% of its 3,200 company-owned North American outlets.
Wi-Fi
is a no-risk financial decision especially for small businesses or companies
in hard-to-wire locations, because of its low cost. Microsoft's Windows XP
and Windows CE operating systems for PCs and handhelds, respectively, already
come configured for Wi-Fi.
Is
it better than the upcoming 3G technology? The applications are slightly different
and there are advantages to both technologies. The primary advantages of 3G
are that you use it with your cell-phone which is normally always with you
and it is always on. However, the advantages of Wi-Fi are speed and integration
with your laptop or PC. A laptop or PC is still the most intuitive device
for accessing the Internet, downloading and sending email
But
what does this mean to you? Consider the following scenario. Its 10 am and
you have the weekly management meeting where you have to present the month's
results. You pick up your laptop and position yourself in the boardroom. During
the presentation, your CEO asks you a detailed question on one expense item.
Because you are still connected to the network through your Wi-Fi connection,
you drill down in the accounts and provide the answers immediately. After
this meeting you need to rush to the airport to catch your flight to the Durban
office. While catching your breath over a cup of coffee in the business class
lounge, you quickly log on and collect your email. You manage to answer your
critical messages before the flight boards. Arriving in Durban, you check
into the Royal Hotel and have time to take a quick shower before taking a
client out for dinner. On your return to your hotel room, you once again log
on via the hotel's Wi-Fi service and do your banking. You collect more emails.
The next day, at your client's offices you require data from your company's
server. Logging onto your client's network you gain access to your server
via Microsoft's Terminal server technology. Once home, you enjoy a movie on
the TV with your family while surfing the Internet on your laptop - all using
Wi-Fi - you get the picture.
The
concept is that with Wi-Fi, there will be virtually no place that you won't
be able to gain access to the Internet and thus network with virtually anyone
in the world - without having to to battle with a miniature screen and complicated
and expensive wiring. This is practical and inexpensive technology that builds
upon our existing work habits.
Piers
can be contacted at piersv@saratoga.co.za.
Saratoga is the holding company of Bizland.
*Time to get a website? Email
us for more information and competitive rates!
Back to Contents
Back to Contents
Book of the Month
New
Pioneers: Men and Women Who are Transforming the Workplace 
 |
In
The New Pioneers, Thomas Petzinger travels the wide world of business,
from banking and baking to weaving and web design, to uncover the
entrepreneurs on the sharpest edges of change in business today. His
startling conclusions reveal not only a changing of the guard, but
a revolution in values that emphasises creativity and collaboration.
With compelling storytelling and keen insight, Petzinger draws from
30 case studies, and despite images of economic instability, he finds
an opportunity-rich economy growing in the small firm. |
Back to Contents
Success Story
This is YOUR space. We want to know who you are, what annoys, inspires
or impresses you in small business, funny stories, advice, or how you got
on the road to success. Please share with us and we might publish your stories
or comments in the next issue. Send your contributions to success@bizland.co.za - we look forward
to hearing from you.
This week's Success Story: Peter Scott, Mr Video
We
have all seen those bright red and yellow lights flashing invitingly from
some shop corner, calling us to snuggle down for the evening with a pizza
and a movie. Wherever you look there seems to be another Mr Video outlet popping
up, adding convenience to an already well-recognised concept.
Founder
and Executive Chairman Peter Scott was a teenager when he began a lifelong
love affair with movies, his first job being as an usher at a local cinema,
working weekends for no pay just to see the movies! He nurtured this passion
as a student, taking up a job at a video store, often working long hours for
no extra pay just to be surrounded by the videos that he loved.
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was at age nineteen, having helped his boss in two subsequent stores,
that opportunity knocked, when the owner decided to sell the store.
With only R500 to his name, Peter offered to buy 600 movies at R10 each,
persuading the owner to give him six months to pay off the debt. He
used this stock to open his first video store, but with no capital behind
him he found himself doing the designing: "I had to build the video
shelves myself, which ended up somewhat skew! I even painted them blue
with an old can of paint that I found in my father's garage!" His
first night open was a great success, but ended on a sour note when
the shop was broken into during the night and all the takings were stolen
out of the till. As if that wasn't enough, Peter was called up for national
service three days later, and was forced to leave the store in the hands
of his then girlfriend (now his wife), Anneleen. After five months in
the army, Peter was transferred back to |
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Cape Town and managed to organise a sleep-out pass, working in his store at
night. A year later he borrowed R5000 from his father to expand, and soon
had two more stores, and in the next three years he bought out his only remaining
competition - the beginning of things to come!
Peter
was only 23 when he tired of his business, selling all his stores and retiring
with his wife to live a life of leisure in Knysna. This was not to be, however,
as Peter soon saw a severe lack of decent video shops in the surrounds,
and so the dream to open another bigger, better video store started edging
its way into his conscience. He followed through on this dream in March
1994, opening his first Mr Video outlet in Claremont, Cape Town, soon following
with two more stores. Within the next four years Mr Video generated an annual
turnover of more than R50 million (currently over R150 million!), having
gone the franchise route in 1996.
Peter
attributes his success to a number of factors, the most important being
that every cent made is put back into the business to continually grow and
improve on it. He also travels regularly overseas to keep up to date with
international trends, and now offers not only video rentals, but also DVD's
and Sony Playstation Games. He also stresses the importance of maintaining
good relationships with franchisees, calling the group "one big happy
family."
Peter
enjoys his spare time with his wife and two children, and is also an avid
collector of celebrity autographs, and has a number of well-known signatures
displayed in his head office. He has plans to expand on his already 130
strong franchise group, and is positive about the way forward.
Back to Contents
Next month…
Next month we will be talking about Public Relations for Small Businesses,
so send us your comments or questions about this topic to comments@bizland.co.za or post them on
our Discussion
Board.
Until
next time...
Sally & Piers
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