Wednesday, August 8, 2012

Entrepreneur watch: Those who can, teach

Being a successful entrepreneur in your twenties is not a common reality in Africa. Imran Khan, however, is an exception. Khan is the founder and owner of Attitution, a South African tutoring company that offers extra lessons to school-going youths – and university students in their first three years of studying – in and around the Johannesburg and Cape Town areas. With ample competition in the region, Attitution has managed to stand out by transporting tutors to those who need extra lessons, rather than the other way around.
Imran Khan
After just over three years of running Attitution, Khan has made the finalist list for the 2012 Sanlam/Business Partners Entrepreneur of the Year award in the emerging business category. How we made it in Africa asks Khan about his sprint – as a young entrepreneur – to the top.


 
How did the idea for your business Attitution come about?
Attitution came to me after I worked as a private tutor and was blasphemously exploited. I was underpaid, drove a huge distance away from my home and felt defeated. I felt as if my life at that moment, and the money I was making, plateaued. A few weeks before my birthday in September that year I realised that the cake I wanted to get, was too expensive. This was the “lightbulb” moment Oprah talks about. I thought “enough is enough, I am better than this” and I sat at my desk, trying to think of a way to make more money, whilst doing what I love. Attitution popped into my mind and the rest, as they say, is history.

How did you finance your business?
My partner and I poured in all the savings we had scrounged together from tutoring and promotional work for four months, which amounted to around R3,000 (US$367) each. It was all we had and we thought we’d be damned if we didn’t spend it correctly. We initially struggled to find our first client, and now we struggle to find staff to meet the demand for extra lessons.

What sacrifices have you had to make as an entrepreneur?
I have sacrificed a lot of my youth. From having to pay my way through university full-time, work-full time and then come home to more homework; to fighting off invites to student nights and parties and social gatherings because I had to work at home. With those sacrifices I have come to appreciate things my fellow 20-somethings only learn in their 30s. I have experienced problems, failures and setbacks that most people my age know nothing about – and that works for me right now, and I have a hunch it might just work out for me a little later on too.

What is the most significant thing you have done to grow your business?
After benefiting from referrals given by our existing clients to their networks for a year and a half, I decided to offer bonuses to clients for new referrals. This got our clients excited about talking about us, but was only half the trick. The other parallel to this equation was ensuring excellent service. I figured that people would never refer anything that wasn’t good, even if you offered them a new car to say thanks. So by pushing the limits of my staff, my administration and my demeanour with my clients, and my staff; I made sure that the business holistically reinforced the referral system so that we could constantly get new business. This allowed us to double our turnover between 2011 and 2012 and we haven’t second-guessed that theory since.

How important have good employees been to your success? How many employees do you have?
Employees are an extension of the brand. That means that everything you need people to understand about your brand, needs to be first and foremost presented by your employees. Our employees are encouraged to build and nurture relationships with their clients, especially since our industry dictates that we seldom meet our clientele personally. We have 50-plus working tutors at the time of writing this, one driving instructor, two admin staff and one training supervisor, above mine and my business partner’s work involvement in the company. I love having a bulk of young staff – all our tutors are varsity students – who enthuse their clients with a passion for the subjects they teach. Young people are generally full of hope for the future, full of life and are dedicated to having a vision for their lives. I wanted this to infect our clients who are equally warring with apathy and dwindling motivation.

Who is your competition and what is your competitive advantage?
Our competition counts as the rest of the tutoring companies in South Africa. We understand that while the market-share is limited because the market is saturated, we can grow our portion by offering several differentiators that set us apart. We offer assessments before we start lessons, which gives the parent an accurate gauge of the help needed and a good plan of action to get to a desired goal. Attitution also allows its staff to manage their own relationships, eliminating excessive admin work and a bureaucratic system of governance – giving more to our staff also. Another benchmark we have set is a training system that allows us to maximise the tutor’s understanding of the subject, by equipping them with various teaching techniques and lesson planning skills to effectively and professionally do their jobs. They say “those that can’t do, teach”. We say that they don’t teach for us.

What has been your most effective marketing tactic?
My most effective marketing strategy identifies itself as an understanding of the things that make the business work well – its most effective assets, its hooks – and then utilising the best practices to maximise their presence in our business. We hardly advertise but we are always talking about [how] every person is a walking commercial and we understood this. I understood that it was necessary to let those commercials do their thing … why fix what isn’t broken?

Where would you like to see your business in 10 years? 20 years?
In 10 years I would like to see us in every province of South Africa and having started an international offering. I always say, “Why not?” So, “why not” to allowing other countries to benefit from a system that has worked so well in South Africa? If it serves the world well then that’s good business.
In 20 years I would like us to be listed. I would like people to believe and invest in the power of being young – having a stake in this force called youth that can achieve anything.

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