“Lost and found”, as you all know, is commonly associated with misplaced items. But does it always have to? In one of his business ventures, spurred by his love for creativity, Morne Deetlefs once lost every dime of his investment. The business failed! Terribly! But even with this monumental disappointment, which left him with no other option but to ‘auction’ the rest of his life, he managed to find his mojo and went on to build Big Square, the fastest growing casual dining restaurant chain in Kenya. Morne, who is currently based in Accra, Ghana, was kind enough to spare an hour with the Inquisitor and shared his experiences in life and in business.

What sets Big Square apart from other fast foods and dining restaurants?

At its conception, the intention was to differentiate the brand and our products from what was already in the market at the time. We had a clear concept of how we intended to carve out our niche in the market. Casual dining was our focus as there were plenty of fast food and high-end restaurants. The average income Kenyan had no opportunity to enjoy a distinguished restaurant experience at an affordable price. This is what we offer and what sets us apart from other brands.

Initially, we started out with burgers which were square because, again, we wanted to differentiate the brand. However, Big Square is now better known for its ribs than its burgers. Ribs and Big Square are synonymous.

So, is that how the name “Big Square” came about?

Yes, it is.

Growth has been steady, and the brand is holding its own in the Kenyan market. What is behind this?

We have been light on the feet. We have been able to quickly effect changes that suit the brand for the market. This has been possible because we own the brand ourselves. It is not a franchise.

What is it about entrepreneurship that excites you?

The creativity! I enjoy the creativity that comes with entrepreneurship and because of this, I am entrepreneurial at heart. In a corporate environment, the avenues and opportunities to express your creativity is limited. I enjoy creating brands. I am good at it. This expression of creation however comes with plenty of risks and mistakes.

Talk to us about the most dreadful mistake you have made as an entrepreneur.

Brief pause…

I started a Latin American dine and dance restaurant in South Africa sometime back in my younger years.

I lost everything!

What I thought would be appealing in the market was a terrible misjudgment. The business did not work. I was so deep in debt that I approached the banks and told them that I would sign an I Owe You (IOU) for R200 a month, which I would pay for the rest of my life. I had nothing else to offer! At thirty years old, I had to move back into my parents’ house as I couldn’t afford rent.

What did you write down in your life journal as your lesson after this experience?

That it is never the end of the world, and never run away from your obligations. I have had other failures afterwards. With each failure or disappointment, I have gotten better at processing the disappointment. You learn to sit back and soul search –   what went wrong, how it went wrong and why it went wrong.

If you can’t process failure, you can’t be an entrepreneur. That is the bottom line!

You’ve had experience in the C-suite in several African countries: Kenya, South Africa, Nigeria, just to name a few. How do the three countries compare?

The general observation among corporate companies across the board is that people management skills are poor. Everybody is driven by growth and achieving targets. Many struggling businesses I have taken over are plagued by that one problem. Businesses are run by people and if you do not understand what makes them tick and how they can help you achieve your goals, then you have lost.

So, the problem is the organization culture…?

Precisely! As an entrepreneur one of the skills you must have or learn is how to get people excited about your ideas. You have to do this because you do not have money to pay them hefty salaries from day one. You must get people excited to work with you. Excitement is all you can sell as a benefit in the early stages, they are really buying into your vision. This skill came in handy while I was in corporate because it is something that corporate businesses don’t excel in.

Would you define your people management skills as one of your unique assets?

I would!

I get people excited about what they are doing. This is not easy especially for someone who engages in repetitive work. It is important to sell your dream to your employees and to make them understand how they fit in your vision. Employees will never fully feel, and view the business as you do. But you can get them excited about it.

I also prefer building local capacity to bringing in expatriates to run the business. I am a firm believer in growing local talent. The Kenyan hotel industry is very developed and so we were able to access a pool of exceptional talent to help us grow the business.

Having had experience both in the C-suite and as an entrepreneur, what is your advice on the best approach to governance?

I benefited a great deal from the knowledge of the established governance structures that existed in the organizations I worked at before. With this knowledge and experience, I think there is a time for setting up a board. Once a business gets to a certain size, as an entrepreneur, you need a board to assist in creating and adding value to the business because a board comes with different perspectives. A board shouldn’t be set up in the founding year or founding stages.

In a startup scenario for instance, a board can slow you down. If we had a board at Big Square at inception, we wouldn’t have been able to make agile changes as we did. I think there is a benefit of not having a board in the very beginning.

Among the means by which a board adds value is through diversity of skills. What skills do you consider fundamental, that an entrepreneur should seek to make use of either through board members or a support structure?

This is not something that entrepreneurs think about enough. In the beginning, strategy is more important than governance and entrepreneurs need to understand their business and the kind of people they surround themselves with. I had five guys who I would meet with regularly to discuss things over. They were my “board”.

I think it is dependent on the kind of business and industry you are in. Regardless, finance and legal expertise top my list.

How do you as an entrepreneur, ensure a structure that you can trust having understood your own weaknesses and areas that you lack proficiency?

You need to have people in your inner circle who compensate for the areas you are lacking. For instance, keeping track of your expenses and managing your accounts is the furthest from your priority list when you are starting out. This is because you are busy growing the business. Also, at this stage, you do not have the money to employ a high-power accountant. The best you could have is a part time bookkeeper. You do however, also need someone who can analyze the business from a financial perspective. Producing and analyzing figures are two different areas of expertise and most people do not get that. As an entrepreneur, you need someone who can analyze and interpret the reports that the accountant produces. These people need to be within your circle.

Adding on to this lack of distinction between producing and analyzing figures, what more do you think many entrepreneurs are getting wrong with their approach to business?

I think a lot of them believe that turnover is profit (chuckles).

What I have learnt through my years in corporate businesses is the importance of financial management and understanding cashflows. This is not something that most entrepreneurs are good at usually. Cashflow is one of the biggest issues startups face and managing it is tough. Projecting forward and living or operating within your means is a big challenge. A poor understanding of cashflow management is something I know for sure many start-ups suffer from. Cashflow management is the life of any business and entrepreneurs need to be brutally alive to this.

Morne’s view on setting up a board later past the founding stages of a business are based on the formalities of a board with regards to extensive decision making. A solid support structure in the form of a close network of friends and professionals can work as an alternative to establishing a formal board when an entrepreneur and the business are in their infancy.  Having risen from the ashes like the proverbial phoenix, Morne uses his experience to help struggling businesses find their footing again. He shares some powerful insights on people management. Businesses are run by people and getting the best out of your people means getting the best out of your business.

 Here is the Inquisitor’s take: With every experience, you either win or you learn. With each lesson, you get to recreate and understand yourself and your environment better. The smart entrepreneur is the one who understands his or her environment, the most critical part being the people he or she works with. This understanding is vital in giving the entrepreneur impetus to build strong teams and relationships and innovate incessantly to grow the value of the business.

The Inquisitor