6 minute read
Business leader's pearls of wisdom
Ajay Lalu is the Managing Director of Black Lite Consulting, a company that specialises in BBBEE consulting. Incub8 Magazine spoke to him about his journey as a business leader and some of the lessons that have helped him build his Group.
Please give us your background including your lessons and experiences. I grew up in one of the more impoverished areas of the Cape Flats in the Western Cape. I spent my teenage years at Rylands High School where I was one of the youngest chairpersons of the Student Representative Council (SRC). One of my mentors was former struggle hero Dullah Omar who was the first Minister of Justice in President Nelson Mandela’s cabinet. Com D encouraged us to study and further our studies which prompted me to enrol at the University of Western Cape where I did a Bcom and Bcompt Honours and eventually qualified as a Chartered Accountant (CA).
You are in the B-BBEE space, what are your views regarding business incubation, and how important is it for upcoming entrepreneurs to seek this for their start-ups? A lot of companies have attempted to enter and make a mark in the business incubation space with varying degrees of success. These companies have faced several challenges because firstly finding a good entrepreneur is hard and secondly I believe these companies adopt a very cookie cutter approach to development of black owned companies. They design the same programme while varying entrepreneurs find themselves in different stages in their growth strategy and personal development phase. I believe it is futile to adopt a standardized approach because we need to understand that different entrepreneurs face different challenges and need different interventions.
Moving into Black Lite Consulting, tell us about the history, how it came about and what it seeks to achieve? Black Lite Consulting was formed 7 years ago while SA was grappling with a recession, my mentors, family and friends actually thought I was crazy to start a business in the middle of the 2010 World Cup. We started out in my dining room where the team included my personal assistant, one employee and myself. Today we are 8 employees strong and I believe this is one of those success stories I will include in my memoir when I am older one day. The company has a large corporate clientele which include the likes of CocaCola Beverages SA and AB InBev, so we work with blue chip companies. We have built a good reputation in the B-BBEE space as a result of the knowledge we possess which has actually resulted in us having very loyal clients. Please unpack your target market and how did you define this target market? Our target market is clearly defined as large corporates. As a small workforce, servicing a large number of clients outside of our target market would render us inefficient thus the decision to have a small team servicing a small number of blue chip clientele. Our clients receive great personalized service with bespoke and strategic solutions.
Please take us through the growth of Black Lite Group? Was the company funded if so by whom? We are self-funded. I was involved in the Deutshe Bank BEE deal and I used the proceeds of the deal on my exit as capital to start Black Lite Group. I was inspired by former State President Thabo Mbeki’s comments when he said we needed to create productive assets and desist from being passive shareholders in other entities. The need to create jobs for young Black people was a major driving force for us.
What programs or services do you guys offer to corporates and SMMEs? At Black Lite Consulting we specifically develop bespoke BEE strategies for businesses by efficiently and effectively moving them from their current score to
Ajay Lalu
higher contributor status which is achieved through understanding their industry and challenges and then developing a solution to address both B-BBEE and their challenges in a sustainable manner. I have been told by our clients that we interpret the Codes better than most BEE consultants out there. We were intimately involved with the development of the first Codes and the Revised Codes. We have in-depth knowledge of the BEE Act and regulations around the Act which is our competitive advantage. Where do you see Black Lite in 5 to 10 years? I would like to see more growth within the team. I believe we will grow remarkably as a group especially as a result of the renewable business energy we have added to the group about 5 years ago. We are currently at an advanced stage of establishing a R3 billion Thin Film Solar manufacturing project facility in the East London IDZ in the Eastern Cape. What is your Turnover? We have witnessed a significant growth and our turnover is in the region of R10 million in our consulting business. We are in the process of establishing an ESD Fund Management business which will add
What are your top 5 tips for small business owners?
1. Persevere! Persevere! Persevere! 2. Love what you do. 3. Focus on one thing.
Doing everything doesn’t help. 4. Do it exceptionally well. 5. Ask for help when you need it.
significantly to our turnover. Your top 5 tips for BEE Managers or Transformation Managers who are looking to improve their BEE status. 1. Have a thick skin 2. Be respectful 3. Persevere 4. Believe 5. Be strategic in your approach
What would you say are your top 3 lessons you have learnt in running your own business? 1. Life is difficult 2. Surround yourself with good people 3. Don’t be shy to ask for help
In terms of transformation in South Africa, what are your views? What opportunities come with the new B-BBEE codes? There has been a mixed bag of successes and failures in terms of B-BBEE. I think the challenge is how companies approach transformation; we need to see a shift in patterns of behaviour amongst large corporates. There are external factors outside of your control like Eskom cutting off electricity when you have no generator. I also think there are significant opportunities if you are a young black person this is the perfect time to be growing your entrepreneurial skills and starting your own business.
ON A LIGHTER NOTE
What do you do for fun? I am a photographer. I think in my next life that will be my new profession. I also love travelling and cooking. My kids (as all kids do) think I can be a contender on master chef. I also play golf (badly)!
What book would you recommend? I enjoy reading autobiographies of people like Steve Jobs and Richard Branson, Knowing that they went through the same thing I am going through in business inspires me.
Favourite movie and actor? I grew up watching Star Wars and till this day it is still my favourite. I also grew up watching Bruce Lee so you can say he is my favourite Actor.
First month salary? R473.00 when I did my articles, which I still think is exploitation but necessary none the less.
Do you play sports if so which one? I run, actually went for a run this morning. I’m doing the Two Oceans half marathon which will be my second one this year.
Favourite food? Anything Italian. Italian food is a firm favourite.
First car and current car? VW City Golf which I think my kids will inherit one day when they are older. Later drove a Volvo S40 and currently driving a Mercedes Benz E300 Hybrid because it’s an environmental friendly vehicle.
Samsung or Apple Phone or other and why? My first phone was a Nokia “brick” and later changed to the Apple iPhone, I’ve been an Apple fan ever since.
Visit www.blacklite.co.za or phone +27 11 447 7651 for more information.
