Business link magazine may 2015

BUSINESSLINK MAGAZINE MAY 2015 Page 1

WINNING
ISN’T
EVERYTHING,
IT’S THE
ONLY THING
ALWAYS DO CAREFUL
RESEARCH
BusinessLink magazine is
designed to educate and provide
general information as well as to
stimulate readers’ thinking. While
every care is taken to ensure that
information in this magazine is
correct, we advise readers to consult
their professional advisors when
making business decisions. The
magazine is distributed on the
understanding that the publisher is
not rendering legal or financial
advice and readers use the
information herein at their own risk.
BUSINESSLINK
MAGAZINE
BusinessLink, the magazine for
growing companies, delivers real
solutions for today’s innovative
business builders. It gives advice,
tools and resources to CEOs and
owners of small-to-midsize
companies as well as new
entrepreneurs that help
accelerate their growth.

ISSUE NO. 14, MAY 2015
BusinessLink Magazine is published by
Admiral Business Systems (Pvt) Ltd
Suite 308, 3rd Floor Merchant House,
43 Robson Manyika / 2nd Street,
Harare, Zimbabwe.
Phone 0772 854 301
http://smebusinesslink.com
© Admiral Business Systems 2015.
All rights reserved.
Publisher: Phillip Chichoni, email chichonip@smebusinesslink.com
Marketing : Christine Mangwanya, email marketing@smebusinesslink.com;
Design and graphics: Kuda Makura
Distribution: PCL Marketing and Distribution
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ContentsJoin us For a Networking Breakfast on 29 May 2015.............................................. 5
A strategy for winning..........................................................................................9
Win more grumpy friends by being negative..........................................................11
Bore us or chorus..... .............................................................................................. 13
‘Banks to be cautious in advancing loans’...............................................................15
Governmentt firms owe US$2,2 billion................................................................. 16
Brilliance in the basics Wins the game of business in a tough economy......... 18
Is a PBC as good as a company? ............................................................................26
Follow These 5 Tips to Turn Your Hobby Into a Viable Business..........................28
4 Common Mistakes That Will Kill Your Startup ..................................................30
Are You An Entrepreneur Or a ‘Wantrepreneur?’ .................................................32
Do I really need tax clearance? .............................................................................. 35
Best free accounting software: 5 programs we recommend .................................. 37
The Secret to Successfully Closing the Sale ........................................................... 41
25 Signs You Need Help Marketing.......................................................................43
The State of ECommerce in Zimbabwe..................................................................46
What do you sink about this ad placement? ..........................................................49
The Top 10 Signs You Work In Marketing.............................................................50
How to use your website to increase sales ..............................................................51
12 Things Mentally Strong Entrepreneurs Don’t Do .............................................54
Be careful of your staff costs ..................................................................................58
How to ride the current storm ............................................................................... 61
How to use chopsticks............................................................................................64

Join us For a Networking
Breakfast on 29 May 2015
Great learning and networking opportunity that will help you grow your contacts
and share business ideas.
Our Guest speaker is Fitzgerald Mujuru, Sales Coach and Trainer, author and
motivational speaker.
Fitz will talk about 5 SECRETS TO WINNING IN A CROWDED MARKET, a topic
that shall help you, as an entrepreneur and businessperson, to effectively reach your
business goals and be profitable in theses highly competitive and fluid times.
Date: Friday 29 May 2015, Time: 0815 to 0945
Venue: The Terrace Restaurant, 3rd Floor Barbour’s Department Store, Harare
Cost: $6 for BusinessLink Magazine subscribers, $10 for non-subscribers.
To book, please call Christine on 0772 854 301, or 0777 774 007 by the 28th , or
come to our office, No 308, 3rd Floor Merchant House, 2nd Street / Robson Manyika
Avenue, Harare

REFER A FRIEND
AND EARN
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you refer a friend for the following
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• New Company registration
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• Private Business Corporation
• Tax clearance
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• Liquor licence
• Business plan writing
Call Phil now on 0777 774 007, or Christine on 0772 854 301
OR visit us at 3rd Floor Merchant House. 34 Robson Manyika/ 2nd Street,
Harare
PS: We now offer flexible payment terms for company and PBC
registration, so no need to wait, contact us now.

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2015 Simplified Guide to Taxes $6.00 $3.00
The Entrepreneur’s Guide to
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To order, call Christine on 0772 854 301 or come to our office at No
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PUBLISHER’S BRIEF
A strategy for winning
By Phillip Chichoni
There are important business lessons from
military strategy.
We are living in the most challenging times
for business and economics ever. Only the fit
and agile will win. If you are not committed to
winning, to conquering against all odds, you
will be brushed aside and passed over by
people and companies that are more
determined to win than you are. You need a strategy for
winning. Moreover, military history teaches some strategies
that when applied, led to victory and when not applied or
misapplied, led to defeat.
Why refer to military strategy when we are talking about
business?
The word strategy itself originates from the Greek word strategia,
meaning “art of troop leader; office of general, command, generalship”.
Market success, victory against great odds, requires leadership, ability,
and skills.
Great military leaders have been studied throughout history to
determine which qualities and abilities enabled them to win. (e.g. Sun
Tzu- The Art of War; Von Clausewitz- On War; Robert Greene, The 33
Strategies of War). The studies have identified principles of military
strategy that, when properly applied, lead to victory, when ignored, lead
to defeat.
The following principles apply to business as well, because in business
today, you are at war against competitors determined to win customers.
1. The Principle of the Objective.
Business leaders and marketers, must establish clear objectives
for every business action. Long term goals first, well
communicated to everyone expected to help achieve them.
Everyone in the team should know the objectives.

MOTIVATION
Win more grumpy
friends by being
negative
By Milton Kamwendo
Negativity is the shanty dormitory town that
many run to for refuge; where their excuses are
validated and approved. Negativity has friends,
relatives, comrades, cousins and neighbours.
However all the kinsmen and friends of
negativity are loud, always complaining,
cynical, glum and depressed.
If you are negative, you have conversation
advantage. In a queue, you will always have
someone to complain to and commiserate
with. If there is no one you will always have the
weather to curse. Negativity makes you a sharp
analyst. Suddenly you give eloquent analyses
of what is wrong, who caused it and why it is broken. You always seem
intelligent and clued up.
Negativity bequeaths you with prophetic powers. Suddenly you can
foretell the gloom ahead, the doom we are in and the mess that will never
go away. Many nod, shake their head and walk away. You feel vindicated
and satisfied. At least you have followers who also see what you see and
hopefully are experiencing what you are. Negativity makes you feel
needed, appreciated and listened to. In a conversation, you are never
odd, because everyone is complaining also. You fit in perfectly. That
helps your feelings, but takes you nowhere like a rocking chair.

The only problem with negativity is that it is like sunglasses. When I
was young, my father has some dark green sunglasses. I used to try them
sometimes and they were fascinating to look through. Putting on the
glasses, everything around me had a greenish tint. The color was so real.
I could swear that the whole world was greenish. That was true until I
removed the glasses. Negativity is like my father’s green glasses. Once
you are looking at everything through the green negativity glasses
everything is negative. Even in the midst of opportunity, you will see
negativity first.
Never forget that while you are putting on your green negativity
glasses, not everyone is putting on the glasses. Never let opportunity
pass you by while you linger in negativity. Do not allow other people’s
negativity to become yours. As you assemble your choir of negativity
singers, do not forget to look closely at who is in your audience. It just
may be that those who see what you do not see are too busy with life to
be entertained by your negativity. Never let those who are not going
anywhere discourage you from exploring the world. Never create your
world on the negative and dull templates of the prophecies of the lazy.
You cannot afford the luxury of a negative thought and disposition to
life.
Committed to your greatness.
Milton Kamwendo.
“People work better
when they know what the
goal is and why. It is
important that people
look forward to coming to
work in the morning and enjoy
working.” Elon Musk-billionaire
founder of Tesla

Bore us or chorus.....
By Sunil Bali,
Having been subjected to a steady stream of
soporific facts and fibs in the run up to the
recent UK General Election, I was reminded of
the words of the writer Christopher Hitchens
who said, "Everybody has a book in them and in
most cases that's where it should stay."
Rather than belittle people's literary
ambitions, Hitchens was simply berating the
quality of our
everyday
communication.
Most people seem
to be unfamiliar with
the advice of bestselling author Elmore
Leonard who said, "Try and skip the parts
that people leave out."
We write to communicate to the hearts of
others what is burning inside of us and editing
lets the fire be seen through the smoke.
Edit everything, but don't remove your soul
from what you say because then it will sound
like writing. And if it sounds like writing, then
it needs to be rewritten.
Hemingway put it best when he said, "There is nothing to great
writing. You just sit down at a computer and bleed."
Humour
A guy texts his neighbour:
"I'm sorry Keith. I've been riddled with guilt and I have to confess. I've
been helping myself to your wife when you were not around. I know it's
no excuse, but I don't get it at home. I can't live with the guilt any longer.
I hope you'll accept my sincerest apology. It won't happen again."
The neighbour, feeling angry and betrayed, grabs his gun, goes into
the bedroom, and without saying a word shoots his wife.
Moments later the neighbour receives a second text:
"Damn, I really should use spell check! That should be "wifi" ... Sorry!"
Have a great day.
Sunil : Keynote Speaker, Executive Coach and Author

Zimbabwe
Business
Updates

‘Banks to be cautious in
advancing loans’
By Ndamu Sandu
Banking sector deposits are expected to grow by less than 2% this year
attributed to waning disposable income and constrained economic growth, a
leading brokerage firm has said, urging banks to tap into the informal sector.
In a report titled Zimbabwe Banking Sector Analysis FY2014, MMC Capital
said deposits were projected to reach $5,2 billion from $5,1 billion recorded in
2014.
“We maintain our view that the following factors will continue to restrain
deposit growth: economic growth remains constrained by challenges
stemming from the large external debt burden and high unemployment
(estimated at over 80%) and waning disposable income will also continue to
have a negative impact on deposit growth,” MMC said.
Banking sector deposits have been on the increase buoyed by the return of
confidence since the introduction of the multi-currency regime in 2009.
MMC said deposits growth would likely be constrained this year as the
marginal propensity to save remains very low.
“Given that the informal sector is growing at the expense of the informal
sector, banks should develop products that are critical in tapping into the
unbanked society, especially those that are mobile based,” MMC said.
Estimates showed that over $3 billion was circulating in the informal sector.
“The recent numbers from the Reserve Bank of Zimbabwe show that mobile
transactions continue to grow. What this means is that banks should urgently
fine tune their business models in line with the technological developments in
a bid to remain relevant,” MMC said.
MMC said credit expansion would be hamstrung by the obtaining liquidity
challenges, adding that the “ever-increasing non-performing loans (NPLS) will
likely result in banks being more cautious in their lending approach this year
relative to the prior year”.
“We are of the view that, there will be less impairment charges this year
following the massive ‘book cleaning’ which happened last year when almost
every bank chose to increase their bad debts allowances. Some of the non-
performing loans dated as far as 2009. This will likely have a positive impact
on profitability this year, though marginal,” MMC said.
The Zimbabwe Asset Management Company (Zamco) has so far bought
NPLs worth $65 million.
This article originally appeared in Newsday.co.zw

Governmentt
firms owe US$2,2
billion
By Ndakaziva Majaka
Zimbabwe's
cash-strapped
parastatals and
town councils are
currently saddled
with unsecured
debts amounting
to $2,2 billion
owed to various
service providers,
Finance
ministry’s
permanent secretary Willard Manungo revealed recently.
He said that the obtaining depressed macro-economic environment in
the country had resulted in most State-owned companies and town
councils failing to pay for services rendered including flouting tax
obligations to the Zimbabwe Revenue Authority (Zimra).
“In terms of debt, parastatals and councils are lagging behind even in
dues to Zimra. Of this debt, $2,2 billion is unguaranteed while another
$2,3 billion is guaranteed, thus government can assume the guaranteed
debt,” Manungo told a Public Accounts parliamentary portfolio
committee.
Zimbabwe has over 78 parastatals that include the Cold Storage
Company (CSC), Industrial Development Corporation (IDC), Zimbabwe
Mining Development Corporation (ZMDC) and Grain Marketing Board
(GMB) among others.
These entities used to contribute 40 percent of the country’s gross
domestic product in the 1990’s but are currently weighing down
Treasury by constantly drawing money from government. Apart from the

parastatals in arrears, Manungo noted that State-owned mobile network
operator NetOne and Zesa Holdings (Zesa) were among those in a
position to service their debts.
Service providers owed varying amounts include Internet service
providers, water provision, and power supply utilities among others
while it also emerged that local authorities were also in arrears to various
ministries.
“The issue of the obligations of local authorities and even some
parastatals is indicated. I recall a stance Cabinet has taken to relate
obligations to either remuneration or relating them to what is spent on
service delivery, with a 30-70 ratio being agreed on for local authorities”.
“This was to ensure that the focus isn’t on remitting remuneration
costs at the expense of service delivery, that is the stance Cabinet has
taken to have parastatals more consistent with the reason they are in
existence,” he said.
Manungo also added that government creditors, also Zimra debtors
had revenue collections facilitated by government through the Finance
ministry to ensure the servicing of the liabilities.
However, Manungo noted that Treasury was currently making
payments to service providers on behalf of other ministries.
Last year Finance ministry paid about $187 million on behalf of other
ministries.
“It would be ideal for the money to be disbursed to the various
respective ministries so that they can pay their various dues,” Manungo
said.
The Treasury secretary also said there were many anomalies in the
current fiscal system that had been left by the erstwhile Finance minister
Tendai Biti and his team.
From the committee, it emerged that the ministry was producing
unreliable figures for the service of public debt, with the figure reflected
on the statement of public debt and consolidation revenue fund for
servicing of debt being pegged at $13,5 million and $49,2 million
respectively for the year to December 2013.
According to the Auditor General Mildred Chiri’s report, the ministry
of Finance does not have a public assets register with details of loans
investments that were made to parastatals, private sector and various
organisations in 2009.
In her report, Chiri also said the Finance ministry had made transfers
from the unallocated reserves amounting to $251 million from a budget
allocation of $96 million leading to an unauthorised excess transfer of
$155 million.
From the Daily News (dailynews.co.zw)

Cover
Article
Brilliance
in the basics
Wins the game of
business in a tough
economy

By Phillip Chichoni
On February 24 1964, upcoming boxer Muhammad Ali was facing the
biggest fight of his young life. His opponent for the heavyweight
championship was Sonny Liston, an intimidating man, a dominating fighter
with a criminal past and ties to the mob. Based on Ali’s uninspired
performance against his two previous opponents, and Liston’s destruction
of former heavyweight champion Floyd Patterson in two first-round
knockouts, Ali was a 7 to 1 underdog.
The outcome of the fight was one of the biggest upsets in boxing history.
At the opening bell, Liston rushed at Ali, seemingly angry and looking for a
quick knockout. However, Ali’s superior speed and mobility enabled him to
elude Liston, making the champion miss wildly and look awkward.
Finally, in the seventh round, after pummeling Liston continuously at
will, Ali won by a technical knockout and became the youngest heavyweight
champion at age 22.
Ali started training in boxing at the age of twelve. The win against Liston
to become the new heavyweight champion happened exactly ten years since
then. Ali had been training hard all these years, fighting numerous
matches, first as an amateur then professionally, steadily rising up the
ranks.
The training regime was grueling but he never gave up. His trainer,
Angelo Dundee, was one of the best in the world. Ali went on to win many
other matches against more formidable opponents and he came to be
recognized as one of the greatest athletes of the century.
A business becomes successful when it has a full complement of brilliant
people. You and your people must be become very good at what you do in
order for your business to become outstanding and win against ruthless and
eager competitors that you have no choice but to face in the market every
day.
The tough economic environment we are operating in requires fast, agile
and lean companies that can quickly maneuver as circumstances change.
Successful entrepreneurs do not rely on external circumstances for their
results. They create their own results. As Stephen Covey said as the first of
his “Seven Habits of Highly Effective People”, you need to be proactive if
you want to win. This means taking responsibility for your own life and
your business. You do not blame things that you cannot change but you
choose your response.
Your behavior, the things you practice a lot at, become your habits which
will shape the results you will get. All human beings consciously decide the
things they are going to do, the activities they are going to engage in.
Therefore, the question every entrepreneur needs to ask when making any
decision is, “Will this activity add another level to my brilliance?”
A sports person who misses training sessions or smokes gets heavily
punished, like what happened to Arsenal goalkeeper Szczesny recently who

was fined £20,000 for smoking in the dressing room. Why? They will be
reducing the brilliance that is needed in order to win.
Similarly, any serious businessperson must not slacken on improving
their skills and those of their staff; innovating, providing better products
and offering better service to their customers. It is a continuous process
that is necessary if you want
to win and stay on top.
Muhammad Ali did not
become ‘the greatest’ by
resting. He worked hard to
get the results he wanted.
Remember what Aristotle
said: “We are what we
repeatedly do. Excellence,
then, is not an act, but a habit.”
What are the basics of business?
In the game of tennis, each player strikes the ball over or around a net
into the opponent’s corner. The aim of the game is to play the ball in such a
way that the opponent is not able to play a good return. The opponent who
fails to return the ball loses a point while the one who succeeds gains a
point. The basics of tennis then is being better than your opponent at
hitting the ball as well as returning the ball. On TV, tennis looks like it is
really easy because the pros have spent a majority of their lives practicing
and playing really hard. It goes without saying that they have a natural
talent for the game as well.
Similarly, in soccer, each team’s objective is to move the ball into the
opponents’ net. The team that can dribble the ball successfully through the
opposing team and passes the ball into the net scores. There will be a lot of
marking and dribling as the players try to outdo each other moving the ball
to the other side’s nets. A good soccer teams has a combination of players
who can mark the ball, dribble, pass and defend their nets. Those are the
basics of soccer.
Business is basically an economic activity. Its primary objective is
economic in nature, which is to earn profits by supplying goods and
services that customers need. Since a business does not exist in a vacuum, it
must also take care of its employees, the society it operates in and its
environment. However, without profits, a business cannot survive.
Certain activities have to be carried out for the business objectives to be
met. Goods and services have to be developed, customers have to be created
and provided with value for their money by supplying better, quality goods
and services at reasonable prices.
A successful business is one which can perform the functions of
producing quality goods and services, marketing and selling them to
customers and getting paid. The basic functions that take place in a
business can therefore be classified simply as follows:
“We are what we
repeatedly do.
Excellence, then, is not
an act, but a habit.”-
Aristotle

Researchers have found that it is possible to build any given skill or
capacity in the same systematic way you do a muscle: regularly push past
your comfort zone, and then rest. We've seen people dramatically
improve skills ranging from focus, to empathy, to creativity, to
summoning positive emotions, to deeply relaxing.
Anders Ericsson, the world's leading researcher into high
performance, made an eye opening discovery. For more than two
decades Ericsson has been making the case that it's not inherited talent
which determines how good we become at something, but rather how
hard we're willing to work - something he calls "deliberate practice."
Numerous researchers now agree on 10,000 hours of such practice as
the minimum necessary to achieve expertise in any complex domain.
Most high skill professionals, like lawyers, doctors, accountants,
architects, engineers or airline pilots, become fully qualified to practice
after four to five years of training or internship. This is roughly the
equivalent of 10,000 hours when one practices six to seven hours daily.
There is something wonderfully empowering about this. It suggests we
have remarkable power to influence our own outcomes. But that's also
daunting. One of Ericsson's central findings is that practice is not only
the most important ingredient in achieving excellence, but also the most
difficult and the least intrinsically enjoyable.
If you want to be really good at something, it's going to involve
frustration, struggle, setbacks and failures. It will require relentlessly
pushing past your comfort zone. That's true as long as you want to
continue to improve, or even maintain a high level of excellence. The
reward is that being really good at something you've earned through
your own hard work can be immensely satisfying.
Here, then, are six keys to achieving excellence:
1. Practice, practice, practice. You can only achieve excellence by
continuous practice. Winners in any field take this ritually. Practice
intensely, without interruption for short periods of no longer than 90
minutes and then take a break. Ninety minutes appears to be the
maximum amount of time that we can bring the highest level of focus
to any given activity. You may even have to start with 45 or 60
minutes. The evidence is equally strong that great performers practice
no more than 4 ½ hours a day.
2. Do the hardest work first. We all move instinctively toward
pleasure and away from pain. Most great performers, Ericsson and
others have found, delay gratification and take on the difficult work of
practice in the mornings, before they do anything else. That's when
most of us have the most energy and the fewest distractions.

3. Be continuously improving. Find ways to perform your business
activities better, faster, simpler. Top athletes are always seeking to
improve their best; do the same in your function. Learning never
stops. There is always something we can do to become better. We may
have great skills and knowledge today, but no matter how great they
may be, our skills need to be continuously developed. Brilliant people
are always learning, reading, exposing themselves to new knowledge,
new people, new contexts and developing their skills.
4. Work harder than anyone else. I don’t know of anyone who has
achieved excellent results who hasn’t worked hard for them. A big
component of excellence is hard work. Sheer, unadulterated hard
work. We can streamline processes, choose effective strategies and
steps, but ultimately the hard work will still have to come in.
Fortunately, if you are doing what you love, work wouldn’t even be
work at all.
5. Make use of every moment. Every moment counts. Excellent
people know that time is highly valuable. There’s this quote by Donald
Trump which I read in one of his books, and I absolutely love it. He
said that time is more precious than money, because you can earn
back money, but you can’t get back time. That is absolutely true.
6. Take action to achieve your results. Living a life of excellence
means being a proponent of action. Many people often say “The sky is
the limit”. My personal philosophy is the sky isn’t the limit; we are
the limit. Whatever we do or don’t do will determine how much we
can grow or achieve. If we want to grow and achieve great results, we
need to take the equivalent actions to reach the results we want.
Strive to be NUMBER ONE in whatever you do.
… Wait, you didn’t think that there would just be 6 habits in achieving
brilliance, did you?
There’s one final habit to become a highly excellent person – that is, to
strive for number one in what you do. No one’s going to achieve
excellence if they aim for average, or mediocrity. Excellence comes from
aiming for the top – being number one. You will only achieve great
results when you set high standards for yourself.
For example, I aim for BusinessLink magazine to be the top business
building magazine and blog, both in terms of the quality of content and
traffic. Whenever I write my articles, I make sure I’m giving the best
value that can ever be offered in that topic. Because of this, readers
recognize the value of my articles and have spread the word to their

friends and family. This has helped the blog to grow quickly and
establish itself as a trusted and coming-of-age blog in business building
advice for small and medium sized business owners and executives.
What do brilliant people do?
• Brilliant people solve problems. When you come up with a solution to
something that others couldn’t figure out, you are seen as brilliant.
Brilliant people solve problems. They don’t just complain about the
problems around them. They are solution-oriented..
• Brilliant people are helpful. Do you add value to people’s lives? When
people spend time with you do they feel encouraged? If you want to be
brilliant, start helping people. Don’t just criticize and loft your
opinion whenever you get the chance. Enhance the lives of others.
Invest in people.
• Brilliant people do the work. They put in the time. They show up
consistently and fight laziness. It’s not that they aren’t naturally lazy.
They most likely are. But they fight it. They don’t give into what is
easy. They work hard, show up every day, and make a difference.
• Brilliant people are generous. They aren’t self absorbed. They live for
a cause greater than themselves. They are making a difference beyond
their own bank accounts. They have a vision beyond themselves. They
give and they give and they give. They recognize that life is more
about what you give away than what you consume.
• Brilliant people take risks. You could just stay put on the sidelines.
You could just think about doing something great. But if you want to
be brilliant, you need to take the leap. Do what others only dream of.
Step out and take risks. Brilliant people fail often because they don’t
attempt what is safe. What sets them apart from the pack is that they
keep going.
• Brilliant people shine a light beyond themselves. They reflect the
greatness and creativity of God.
• Brilliant people don’t fit in a box. Truth is, brilliance is subjective.
What’s brilliant to me may not be brilliant to you. What speaks to me
may not speak to you. That’s the beauty of art, the beauty of God’s
creation. There is a place for your art, your creativity, and your unique
perspective. While it may not be “brilliant” to everyone, it is brilliant
to some.
In conclusion, we can all be brilliant in the basics and win in the
business of business, if we put in the work.

BUSINESSLINK MAGAZINE
Starting
MAY 2015
Starting
up
Page 25
Starting

Is a PBC as good as a
company?
By the BusinessLink Staff
The Private Business Corporation was born out of the need for a
simplified legal framework for small business enterprises to avoid legal
complexities associated with the Companies Act. It is the equivalent of
the South African Closed Corporation.
The enabling legislation is the Private Business Corporations Act
(Chapter 24:11) which came into effect on the 5th of May 1997 through
Statutory Instrument 105/1997.
The characteristics of a private business corporation (PBC) are:
• Has a minimum of one member and maximum of 20 and can exist
with no members at all for a season under certain conditions.
(Section 22 clauses 1 and 20). Unlike a Private Limited company
which requires at least two directors this can operate with only one
member.
• Only natural persons can be members. In other words a trust or a
private limited company cannot be a member. Under this section a
minor can also be a member. (Section 23) This is great because
then you can create a PBC with yourself and any minor child being
members if you wish. Or you can have the minor be the only
member and you become the guardian and so control the asset
without having it under your name.
• Can convert to a private company using the same name as before.
• It enables a small business to become a body corporate with
limited liability and perpetual succession.
• Is simple to use – no requirement to appoint directors or draw
Memoranda and Articles of Association. These are replaced by an
“incorporation statement”.

• Registration procedure is straightforward – participating members
complete incorporation statement in the prescribed form – lodge
it with Registrar of Companies who then issues a certificate of
incorporation.
• No need to state objects in the incorporation statement.
• Regulation is not statutorily rigid.
• Administration is not expensive as very few formalities or legal
requirements have to be met.
• No requirement to appoint directors or to hold formal meetings.
Meetings are not compulsory and can be held on an ad hoc basis
• Not allowed to issue shares – members hold an interest in the
corporation which is recorded in percentage terms in the
incorporation statement.
• In the event of the winding-up of the corporation, a member will be
entitled to a share in the assets of the corporation in proportion to
his percentage.
• Once a member’s interest in the corporation changes (i.e. either
increases or diminishes) the member is required to immediately
surrender to the corporation for cancellation any certificate
previously issued to him in lieu of a new one showing his correct
percentage interest in the corporation.
• Not required to publish or submit accounts to the Registrar of
Companies but must make out financial statements and to keep
accounting records for tax purposes.
• Can only use the abbreviations PBC at the end of its name but not
(Private)/(Pvt) Limited/Ltd or Ltd.
• Accepts pre-incorporation contracts.( Act 24:11 Section 19. ) In
other words you can enter a contract as a trustee of a yet to be
formed PBC and once a company is formed then it can ratify and
take over the contract
• PBCs may become shareholders in other companies
• All members may take part in the management of the PBC
Please email your feedback your questions to
chichonip@smebusinesslink.com. Twitter #chichonip

Follow These 5 Tips to
Turn Your Hobby Into
a Viable Business
by Farbood Nivi, YFS Magazine
The entrepreneurial prerogative is to make a living off of your passion.
But with so many ambitious businesspeople breaking out of corporate
America to monetize their hobbies, saving your dream career for leisure
time might feel like a safer alternative.
Turning a seemingly recreational activity into a solid business takes
planning and effort, but that doesn’t mean it’s impossible. Successful
entrepreneurs do it all the time, and when they invest in other startups,
they look for the same vigor they have for their own businesses.
One of my angel investors and co-founder of LinkedIn, Reid Hoffman,
once told me that an entrepreneur is someone who jumps off a cliff and
says, “I’ll make the plane on the way down.” Starting out is fraught with
uncertainty, but if you want to live out your passion every day, you have
to take the plunge.
To get started on your path to entrepreneurial success, follow these
five guidelines:
Jump into the planning process.
Even if you’re working a full-time job, don’t put off planning your big
business idea. Make a checklist of things you need to launch, and set
specific deadlines. But remember things always change. Be ready and
willing to separate yourself from an initial idea and change course if
necessary. Most importantly, do some soul searching to make sure you’re
still enjoying the hobby after day 10 of planning.
Test your idea on paper (and in the real world).
If there’s market interest for your business idea, you’ll need hard
numbers to prove it. That’s where market testing comes in. Test your
approach using the Lean Startup methodology.
You should only invest time, money, and resources into a business if
the data shows that success awaits. After market testing, you should be
able to answer the following questions: How big is the market in terms of
dollars and people each year? What does the competitive landscape look

like? What selling points do key players bring to the table? Will the
market grow in the coming years?
Although you might identify a gap in the market, don’t quit your job to
start a cookie company before selling some test batches. To truly validate
your idea, you have to get your product in the hands of real users and see
how they react.
Reach out to successful entrepreneurs.
Although contacting established entrepreneurs in your industry might
feel intimidating, they’re invaluable resources. But they’re also busy
people, so be concise and efficient when communicating with them.
Try tweeting a relevant question to them or sending a short, direct
email. They’ll appreciate your brevity and be more likely to respond. I
was lucky because my brother had already started a few companies when
I ventured off on my own. He helped me refine my initial investor
presentation and taught me how to think through the business
economics correctly.
You don’t need a sibling in the game to learn these valuable lessons,
though. Entrepreneurs want to help others succeed; you just can’t be
afraid to make the first move.
Build your dream team.
Even if your business model is flawless, you’ll need a well-rounded
team to support it. But to rally potential co-founders, interns, and
employees around your idea, you have to prove the product is useful and
potential rewards far outweigh the risk of being involved. Take the time
to nurture relationships. Keen entrepreneurs can convince people to
follow their lead, regardless of whether the business exists yet.
Seek validation from trusted sources.
When smart people want to get involved in your business, it’s a telltale
sign your idea is worth exploring. If your savvy business-minded friends
and associates are supportive, but not eager to jump on board, they
might not be giving you their honest opinion.
Make sure they fully understand the model you’re describing, and run
market tests to determine whether their critique is legitimate. If you can
use a person’s criticism to improve upon your idea, you’ll likely gain a
supporter.
The business landscape is constantly changing. Entrepreneurs have to
navigate it armed with market research, time-tested advice, and a
supportive team to survive. You day job might pay the bills, but when
you can live out your passion, you won’t trade it for comfort any day.
Farbood Nivi is the CEO of Learnist, which allows individuals to read
content, review how-to guides, and watch educational videos on
virtually any subject. Connect with @LearnistTweets on Twitter.

4 Common Mistakes
That Will Kill Your
Startup
BY LUISA ZHOU
1. Forgetting to validate your idea.
As Paul Graham, founder of business incubator Y Combinator, likes to
point out, so many founders fail because they build things that no one
wants. Why? Because they forget to con㸠_rm beforehand if anyone
actually cares about what they’re creating. The best way to prevent this
from happening to you is to make sure people are willing to pay for
your product by validating it using tried-and-true methods.
Don’t get intimidated by the idea of validation as in many cases, it’s as
simple as getting 5 people to say, “Yes, I would like to buy that when
it’s available—here’s my credit card.”
2. Neglecting to establish a strong brand from day one. In a
crowded marketplace, having a strong brand is non-negotiable as it
tells customers who you are, what you offer, and why they should buy
from you instead of your competitor. It’s your business’s personality,
and if you are a solopreneur, it’s often the same thing as your
personality. Remember, there’s literally no one else like you in the
entire world. Communicating with your unique voice and style will
instantly guarantee your business brand is one-of-a-kind.
Convinced, but unclear on what exactly you need to do to de㸠_ne
your brand? Rest easy —brand clarity is only 5 questions away. Ask
yourself: What is your business purpose? What is your message? What
is your brand voice? Who is your customer? What do you want to be
known for?
3. Waiting too long to launch. One of the most common pieces of
advice shared by experienced entrepreneurs is to launch before you’re
ready. As The Muse Founder Kathryn Minshew advises: “Your 㸠_rst

product will likely be just a little bit ugly, and that’s okay – it’s part of
getting to market quickly and testing your idea in front of live
customers.”
To minimize your time to launch, rethink your minimum viable
product (MVP). What is the minimum set of features your product
must have to solve your customer’s problem?
Work backwards from there and forget the niceties that won’t make a
difference. You can always add those on later.
4. Failing to market like it’s your job (which it is).
A misconception that new entrepreneurs often have is that “if you
build it, they will
come.” And as many failed companies have learned too late, that is as
far from the truth
as could be. You can have the best business idea in the world, but does
it really matter if
no one knows about it?
Once you’ve validated your idea, de㸠_ned your brand, and created
your product, hit the pavement! Find your ideal customers and tell them
about your business. There are many ways to do this including social
media, paid advertisements, and good old-fashioned word of mouth.
Figure out what works and keep on doing it. Your bottom line depends
on it.
This article has been edited and condensed. Luisa Zhou is a business
coach for new coaches and consultants. If you’re ready to turn your
business idea into a reality, visit luisazhou.com for coaching
opportunities and tips for jumpstarting your business.
Connect with @luisazhou on Twitter.

In my opinion all real entrepreneurs are driven by their passion and
love for business, wantrepreneurs are driven by the idea of being an
entrepreneur.
2. Take massive action
When it comes down to it, taking action is what really counts.
Entrepreneurs take the leap of faith even when their website, prototype
or product is not complete.
Don’t worry if you think you’re not ready, you’ll learn more by just
doing than what you will ever read in a book. That textbook can’t prepare
you for every scenario nor is it catered to your exact goals and vision of
what you want.
Real entrepreneurs do what they say they’re going to do; wantrepreneurs
talk about it but never really get started.
Don’t let yourself become paralysed by information, take massive
action.
3. Sacrifice
Wantrepreneurs have this idealistic vision of what it is like to be an
entrepreneur. They might see it as the quickest way to get rich or the
ability to set their own hours and be their own boss and not have to
answer to anyone.
But not answering to anyone means you will need to be extremely
disciplined and harder on yourself than any boss you’ve ever had in the
past. Setting your own hours only means you’ll be pouring in more in the
beginning, because you’ll be overflowing with ideas, tasks and projects
that need to get done.
On the other hand, successful entrepreneurs use profit as a measuring
scale of their own success, know the long hours they need to work to
make it happen and understand that the only time you see the word
shortcut before success is in the dictionary.
It’s ridiculous the roller coaster of emotions you have to go through in
order to start, grow and eventually exit your own business.
You’ll have moments of total despair and frustration where you
wonder if you were crazy to even attempt this, but you’ll also have insane
highs where you feel like you’re on top of the world.
Alex Pirouz is a Sydney-based entrepreneur and founder of
Linkfluencer, a leading online community for LinkedIn
training. He loves playing basketball, traveling and covering
the latest stories on entrepreneurship.

Running a
Business
-
MAY 2015
Running a
Business
Page 34
Running a
Business

Do I really need tax
clearance?
By the BusinessLink team
In terms of Section 80 of the Income Tax
Act (Chapter: 23:06), a 10% withholding tax
is deductible from all amounts payable to all
persons who enter into contracts with the
State or a statutory body, a quasi-
government institution and taxpayers who
are registered with the Zimbabwe Revenue
Authority (ZIMRA).
Unless a payee furnishes the paying officer with a tax clearance
certificate, any person who enters into a contract (whether for goods or
services) of US$250 and more involving a single transaction or multiple
transactions should comply with this legal requirement.
The amount withheld should be remitted to the Commissioner
General of ZIMRA on or before the 10th day of the month following that
in which the payment was made. The payment should be accompanied
with a schedule showing all names of the persons from whom the 10%
was deducted and attached to the prescribed form (Rev 5 form) and
submitted to ZIMRA.
Any paying officer, who has withheld any amount, should furnish the
payee concerned with a certificate, in a form approved by the
Commissioner General of ZIMRA and should clearly show the amount
withheld. The Commissioner General of ZIMRA is supposed to retain
any amount remitted to him until the income tax payable by the payee,
for that year of assessment has been assessed.
The amount is normally allowed as a credit against the income tax
payable by the payee. Where the amount exceeds the income tax so
payable by the payee, the Commissioner General of ZIMRA will refund
the excess to the payee or may be set off against other tax liabilities.
Any person who fails to deduct the 10% withholding tax is liable for
the payment of the amount due and a 100% penalty is chargeable on the
amount due.
Exceptions to the Requirement to Withhold the 10%
The exceptions include the following:

• Amount paid in terms of an employment contract.
• Sales affected in any shop in the ordinary course of the business of
the shop. This caters for sales by retailers or wholesalers to
consumers.
• An agreement for the settlement of a delictual claim against the
State or a statutory corporation.
• Payments for the supply of farm produce and livestock by farmers.
What is normally required before a Tax Clearance
Certificate is Issued?
The following are the main requirements to be met before a tax
clearance is issued:
• The client should submit the returns in terms of section 37 of the
Income Tax Act [Chapter 23:06]
• Where applicable, payment of the appropriate presumptive tax in
terms of the Twenty-Sixth Schedule to the Income Tax Act
• In the case of new or proposed company or private business
corporation, the client should appoint a public officer in terms of
Section 61 of the Income Tax Act.
• Furnishing any return required to be furnished under any of the
Acts administered by ZIMRA or making arrangements satisfactory
to the Commissioner General of ZIMRA for the furnishing of such
returns.
• Payment of the appropriate tax in terms of any of the Acts
administered by the Zimbabwe Revenue Authority.
Does a trader require a tax clearance in order to conduct any
business?
It is not a precondition for anyone to first present a tax clearance
before entering into business agreements, transactions or arrangements.
A trader is free to trade with any person with or without a tax clearance
certificate.
However, as already stated above, any payer who enters into a contract
of US$250 and more involving a single transaction or multiple
transactions should withhold the 10% withholding amount if no such tax
clearance is presented.
In practice, due to the onerous administrative work involved in
withholding tax, many big companies will not bother to do business with
a supplier who does not have a tax clearance.
For more information on taxes, see the 2015 Simplified Guide to
Taxes, available from BusinessLink offices.

FINANCE
Best free accounting
software: 5
programs we
recommend
Free accounting apps to help you keep on top of your
finances
These are tough times for
businesses. Now, more than
ever, it's vital to keep a very
close watch on your
company finances.
And that's where good
accounting software can
help, automating many of
your business processes and
producing detailed reports

on precisely how you're doing.
Deciding you need an accounting package is the easy part, of course -
picking the best one for you is a different matter.
One of the first issues to consider is the amount of support you'll need.
If you're a total beginner then it may be wise to choose a commercial
package where there's plenty of help available.
If you're a little more experienced, though - or you just want to play
around and learn the basics - then there's a wide range of free accounting
packages around, and we've highlighted eight of the best.
1. TurboCASH 5
Download at http://www.turbocash.net
TurboCash is an open source small business accounting package,
which the developers say has more than 80,000 users worldwide.
It has all the usual standard functions - stock control, invoicing,
debtors, creditors, general ledger, VAT accounting, balance sheet and
income statements, and plenty of reports - and also supports multiple
users, and even multiple companies.
As with any similar package, if you're new to accounting in general
then there's a great deal to learn. TurboCASH does make things easier
with example books, though, and a detailed online manual helps you to
get started.
The program is also highly configurable, and it's also a relief to use a
free accounting tool which isn't always demanding that you "upgrade".
-----------------------------------------------------------------------------------
2. TAS Basics
Download at http://www.tassoftware.co.uk/
TAS Software (a division of Sage) sells several accounting packages,
but gives Basics away for free. This means it has plenty of limitations -
you can't record sales orders or create invoices, for instance - and there's
no real support, but if you can live with that then Basics proves to be a
very straightforward package. It can maintain customer and supplier
records; you're able to maintain multiple bank accounts, recording the
money in and out; simple reporting means it's easy to record who owes
you money (and who you own money to), and you get useful help with
your VAT return.
-----------------------------------------------------------------------------------
3. GnuCash
Download at www.gnucash.org
First released back in 1998, the open source GnuCash has been
constantly developed ever since, and it's now a very flexible accounting
system.
A straightforward register makes it quick and easy to enter
transactions, but there's also plenty of power here: customer and

supplier tracking, invoicing and bill payment, scheduled transaction
support, and a host of reporting tools.
Advanced features include budget management and stock portfolios,
while each of your accounts can be in different currencies. Double entry
accounting and a reconciliation tool help you uncover any errors, and
with versions available for Windows, Linux and Mac (and even an
Android app) you can run the program just about anywhere.
-----------------------------------------------------------------------------------
4. NCH Express Invoice
Download at http://www.nch.com.au/
Express Invoice is free only for businesses with less than five
employees, and annoyingly you're asked to confirm that every time the
program launches. That aside, though, Express Invoice is a very easy-to-
use invoicing package.
After installation, you can create a quote or invoice immediately; just
entering a customer's name, product details and so on creates those
records for you, and you can print, email or fax the results from within
Express Invoice.
It's straightforward to schedule recurring invoices, you can track
payments as they come in, and reports keep you up to date with
outstanding invoices, item sales and more. If you only need invoicing
then check out Express Invoice first.
5. xTuple PostBooks
Download at http://sourceforge.net/postbooks/
PostBooks is another open source tool with all the usual accounting
features: general ledger, accounts payable and receivable, invoicing,
bank reconciliation and more, all accessible via a well-presented
interface. But that's just the start.
Whatever free software you decide to use, remember, it can only do so
much. As your business grows, you will need to purchase a professional
package to get professional results.
Courage doesn’t always
roar. Sometimes courage is
the quiet voice at the end of
the day saying, “I will try
again tomorrow.”
- Mary Anne Radmacher

Marketing &
Selling
MAY 2015
Marketing &
Selling
Page 40
Marketing &

The Secret to
Successfully Closing
the Sale
By Fitzgerald Mujuru
Most sales people do everything else brilliantly except closing the sale.
This is where the order is
taken, the money is made
and transactions effected.
However it is not an easy
step for most as they
haven’t been taught how
to effectively close the
sale. It however is not the
end of the sales process. It
may be the beginning of a
long lasting customer
relationship.
Closing tends to be the most stressful action in the sales process for so
many people –salespeople and prospects. Your responsibility as a sales
professional is to work the earlier stages of the sales cycle so that closing
becomes a natural conclusion if both parties benefit – this includes,
closing continually throughout the process. Keep in mind, closing is
really the beginning of your business relationship – both parties should
be excited about working together.
The closing tool is designed to give you and your team a quick and
comprehensive checklist of your “need to know” points before
attempting a standard close (trial closes don’t require the knowledge of
all “need to know” points –trial closes serve as more of a qualifying
function and help the process move to the standard close). The correct
answers to these questions assist in developing the close into the natural
conclusion we all seek in the process. Work through them for each
prospect in your pipeline and be sure you’re on the right track to closure.

25 Signs You Need
Help Marketing
By Eric Samson
Marketers find the right audience for
your business and convert passive
shoppers into active buyers. The most
successful companies in the world get
ahead of the competition and thrive
thanks to quality marketing.
Even if your business is already
growing, it can always grow faster.
Marketing can help. If you run a
company without a marketing team, or
have one filled only with junior associates, here are 25 reasons you may
want to recruit experienced marketers or hire an agency.
1. You would rather look at company financials than Google Analytics.
Data is powerful, but if you do not know how to harness the power of
your website analytics you are severely missing out.
2. You get overwhelmed thinking about
advertising, content and social media. Your
business loses out on a lot of opportunity by
not engaging in any marketing activities. Of
course, you should not make the even graver
mistake of hiring an intern to manage all of
these things.
3. Your idea of marketing is a $50 ad in a
local newspaper or a $15,000 TV spot.
Targeting, you say. What targeting?
4. You either don’t know what real-time
bidding (RTB) or programmatic buying are, or

have never heard of them. Surely, advertising isn’t that complicated….
5. Your business gets a lot of website traffic but a relatively low
number of sales – less than 1 percent. It is time to polish up your
conversion funnel to capture more visitor value.
6. Your site hasn’t had a makeover
since 2012. In fact, you probably haven’t
touched it since it was first created.
7. People have a hard time trying to
find your company on Google. You
shouldn’t settle for third or fourth
position for your own brand name.
8. You love referral programs such as
Uber’s “Give $20. Get $20” but the
thought doesn’t even cross your mind
about applying that to your business. It
is a lot easier than you think!
9. Email newsletters make you cringe.
You are also inclined to hit spam when you get more than one email from
a company or its representatives.
10. You rarely survey your customers and simply make assumptions
about who they are, what they do, how much they make, where they live,
and why they love your brand.
11. You like the idea of having lots of fans and followers on social
media, but have no idea how you would even engage them. Funny cat
pictures do not count.
12. You are unfamiliar with the terms bounce rate, call-to-action, click
through, and impressions. You also think that sort of gibberish wouldn’t
even apply to your business.
13. Your sales team has a hard time explaining what you do, how your
product or service differentiates itself from competitors and applicable
use cases for your offerings. Marketing helps provide collateral and copy
so others understand your company a lot better.
14. You love a good billboard ad and you hate clicking anything on the
web. Wait, seriously?
15. You think you are smarter than your customers. In a day and age
where customers have real voice and will not be silenced, you better be
prepared to put your ego aside and actively learn from potential buyers.

16. You imagine getting your company into The New York Times is
impossible to do. It is hard, but by targeting the right writer with the
perfect story angle, you can headline the front page of the business
section.
17. You are not familiar with inbound marketing or outbound
marketing. It is all just advertising, right? Wrong.
18. You enjoy the idea of an endless flow of new customers but
regularly forget about engaging your already existing and loyal clients.
19. You create all of your images in Microsoft Paint or PowerPoint.
You believe tools such as Canva and Photoshop have too much going on.
20. You wonder why YouTube is so popular. That is because brands
that spend money on quality video get tremendous ROI.
21. Anything related to marketing is done with a set-it and forget-it
philosophy. If it works, why tweak it? Or, if it doesn’t work, give it more
time. Unfortunately, you only throw away money this way.
22. You haven’t heard of Seth Godin, Brian Clark or Dharmesh Shah.
You wonder if they are supposed to be reality show stars or something.
23. You believe companies like Charmin, GoPro and American
Express would have grown anyways, without needing to invest so heavily
in marketing. You’d be wrong.
24. You never thought to tie in the ongoing marketing initiatives you
have into a larger, structured campaign. Marketing impact multiplies
when tactics are complimentary and cohesive.
25. You hate the idea of a company blog, though you spend a majority
of your time reading articles created and published by like-minded
brands.
How you promote your business matters and having a qualified
marketing team can help you grow your bottom line tenfold. The sooner
you invest in marketing, the faster you will be able to leapfrog over the
competition. Doesn’t that sound like something you might need?
This article originally appeared at Entrepreneur.com.
Eric Samson is the founder of Group8A. Group8A is a boutique
consulting firm focused on developing and executing integrated
marketing and digital solutions for companies of all sizes.

The State
ECommerce
Zimbabwe
by Tinashe Nyaruwanga
New technologies change bus
takes a bit longer than people expect for the full effects and changes to
kick in. These changes often come about in waves. Mobile money was
first introduced in Zimbabwe in 2010 but was perfected circa 2012. It
took some time before mobile money gained mainstream adoption and
began to be used and accepted by retail shops and merchants.
Similar to the wave of Mobile Money, Ecommerce is about to disrupt
how people buy and consume products and services in Zimbabwe. In t
wave businesses are starting to experiment and leverage the power to sell
and deliver products in a different way. Why go through the hassle of
waiting in shopping queues when with a few clicks you can get the
product delivered to your doorstep without
Zimbabwe has not had distinctive Ecommerce success like other
African countries such as Nigeria and South Africa but only promising
Ecommerce failures.
MAY 2015
The State of
Commerce in
abwe
ruwanga
New technologies change business and life radically, but usually it
some time before mobile money gained mainstream adoption and
how people buy and consume products and services in Zimbabwe. In t
product delivered to your doorstep without breaking a sweat.
Page 46
iness and life radically, but usually it
some time before mobile money gained mainstream adoption and
how people buy and consume products and services in Zimbabwe. In this
breaking a sweat.

But The Times A’ Changing
Timing is everything. Telecel were the first to launch the
money in Zimbabwe but did not experience success like Ecocash who
launched their service much later. The fact is there were simply too early
for the market among other reasons.
Similarly Tengesa.com and other unsuccessful ecommerce sites
experienced failure mainly because there were simply too far ahead of
the curve. But like Bob Dylan sang, the ‘times are a
of retail giants and as well as small start
hand at ecommerce and sooner or later we are g
story.
Some of the notable ecommerce sites include: Econet’s Ecoshopper,
Food World Ecommerce’s site, 10ngah (pronounced ten
derivative which means to buy) and more.
Zimbabwe’s Ecommerce Payment Platforms
A big reason why we are having so much Ecommerce activity now in
Zimbabwe is the availability of payment platforms and ways of making
payments online.
The lack of an easy and secure payment platform was a major
stumbling block for Ecommerce in Zimbabwe. Fortunately,
now a plethora of payment platforms and methods to choose from.
Ecocash debit card, Telecash and ZimSwitch options are just some of the
options available.
Educating the market on using the technology and its benefits should
be the priority as a lot people are still rooted in the idea of using cash to
make payments. But as Steve Jobs famously said, “A lot of times, people
do not know what they want until you show it to them,” we can be
MAY 2015
But The Times A’ Changing
Timing is everything. Telecel were the first to launch the
for the market among other reasons.
failure mainly because there were simply too far ahead of
the curve. But like Bob Dylan sang, the ‘times are a-changing’, a number
of retail giants and as well as small start-ups are aggressively trying their
hand at ecommerce and sooner or later we are going to have a success
Food World Ecommerce’s site, 10ngah (pronounced ten –
derivative which means to buy) and more.
Zimbabwe’s Ecommerce Payment Platforms
on why we are having so much Ecommerce activity now in
stumbling block for Ecommerce in Zimbabwe. Fortunately,
lot people are still rooted in the idea of using cash to
Page 47
Timing is everything. Telecel were the first to launch the mobile
failure mainly because there were simply too far ahead of
changing’, a number
ups are aggressively trying their
oing to have a success
ngah, a shona
on why we are having so much Ecommerce activity now in
stumbling block for Ecommerce in Zimbabwe. Fortunately, there are
lot people are still rooted in the idea of using cash to

encouraged that once people get an idea of how easy it is to buy online
using a MasterCard the floodgates will open.
Value
Ecommerce is different from selling offline. Part of what makes it
different is there are infinite competitors. Your competitors are not
necessarily those that operate in the same area. They can bee from
anywhere in the world. You are always looking over your shoulder
checking who is coming for your lunch and where the cheese is going to
be.
Online there are different rules. It’s a cutthroat business. You may
decide to cater for the Zimbabwean market but you cannot force people
to buy the products they want on your site and not Amazon. There has to
be a compelling reason why they should buy from your site, and not from
the nearest grocery store or your online competitor.
A chicken and egg conundrum
For ecommerce to scale there is need for costs such as delivery charges
to be low. Economics 101 will tell you that for this to happen you need
numbers to achieve economies of scale. This has an effect of reducing the
cost of transporting products to customers. Unfortunately, at the
moment the cost of delivery sometimes is more than the cost of the
product being bought. This is a conundrum which needs to be solved
before Ecommerce takes off in Zimbabwe.
Promotion
Another key ingredient in unlocking the Ecommerce gates in
Zimbabwe is attracting and converting leads. Businesses that have
started in Ecommerce in Zimbabwe need to approach Ecommerce
differently and change the way that they sell. With Ecommerce you need
to create content that engages and educates and more importantly
content your customers love and are interested in. It is the content that
draws the customers to your website. Sadly, a lot of these ecommerce
sites rarely engage in content marketing and educating their audience
and therefore it is a little surprise that they fail.
Wrapping it up
The internet has disrupted the normal way of life, life as we knew it.
The retail sector in Zimbabwe is ripe for disruption. This is the
opportunity that exists for every business in Zimbabwe today. Are you
prepared to take advantage of the opportunities that Ecommerce will
bring? Are you ready for the future?
Tinashe Nyaruwanga is a Content Marketing
and Social Media Aficionado. He is also a
blogger at www.tinashenyaruwanga.com. He
specializes in optimizing online brands for
individuals and corporates.

What do you sink
about this ad
placement?
Sure we all loved the movie the Titanic, not so sure if we are sold on
making it a reality.
From unbounce.com

The Top 10 Signs
You Work In
Marketing
10. You lecture the neighborhood kids selling lemonade on ways to
improve their look-to-buy ratio.
9. You get all excited when it’s Saturday so you can wear casual clothes
to work.
8. You refer to the tomatoes grown in your garden as “deliverables.”
7. You find you really need PowerPoint to explain what you do for a
living.
6. You normally eat out of vending machines and at the most
expensive restaurant in town within the same week.
5. You wear gray to work instead of navy blue to make a bold fashion
statement.
4. You know the people at the airport and hotel better than your next
door neighbors.
3. You ask your friends to “think out of the box” when making Friday
night plans.
2. You think Einstein would have been more effective had he put his
ideas into a matrix.
1. You think a “half-day” means leaving work at 5 o’clock.

How a website works for your marketing
• It is your online shopfront, where people can see your goods and
services.
• It is your online brochure, where you can put full descriptions of
your offerings, including detailed specifications, how the products
work, their uses, and prices if applicable.
• It is a landing page for customers who discover your products from
Internet search engines, classified advertisements, directories,
online listings.
• You can use it to educate customers about your products and
business, through articles or blogs.
• You can show product demonstrations via video and PowerPoint
presentations hosted on YouTube etc.
How to get the best from your website
• Like a brick and mortar shopfront, it must be clean and neat. You
need a good designer for that.
• It must be easily navigable, with clear categories and a search
facility.
• Make sure it is hosted on a reliable and fast server, for speed of
access and minimum downtime.
• Update information and layout regularly.
• Have a facility for collecting customer comments or questions.
• Make sure it is optimized for search engines.
• Analyze the statistics of visitors regularly.
• Depending on your product or service offering, you can put up
online paying facilities, like Visa/ MasterCard / PayPal / EcoCash /
Zimswitch.
• Use inbound marketing to attract high quality customers.
How to attract visitors to your website
• Direct people to your website by placing the address clearly on
your business cards, flyers, advertisements and other printed
materials.

• Make sure your products are clearly described so search engines
can pick them up.
• When you post-informational articles or promotions on
Facebook, Twitter or Linked, always add your website address
where it can be clearly seen.
• Include the web address on your emails to customers or
prospects.
• Host contests, giveaways and promotions in conjunction with
your social media pages.
• Regularly post relevant and useful information so people can
keep coming back. (E.g. Zimbo Kitchen).
• Add video content. Consumers love video — and so should you.
Our brains process visual information 60,000 times faster than
text, Our brains process visual information 60,000 times faster
than text, so ditch the long-winded product descriptions and opt
for dynamic video content visitors can engage with on your
website. Videos on your landing page can increase conversion
rates by 86%, and 44% of customers purchase more products on
sites that provide informational videos — and these numbers
are only rising. Customers also tend to stay longer on sites with
videos, and even better — they are more likely to return.
Engaging product videos, customer testimonials and even tours
of your workspace can help increase conversions.
• Post customer reviews. According to Forrester Research,
consumers trust brand recommendations from friends 70% of
the time, and ads only 10% of the time. Consumer reviews act as
this kind of friendly recommendation on your product page.
Make sure to include them on your site — and expect to see an
uplift in sales online.
Adjustments like these can yield huge results for your bottom line
business goals. Do not be afraid to test out new methods and techniques
to make your content more engaging and your site more cost-effective
overall. The most important thing to keep in mind? Your customer.
Making your website as accessible as possible is key to increasing sales
and improving revenue.
Please email your feedback to chichonip@smebusinesslink.com

LEADERSHIP
12 Things Mentally
Strong
Entrepreneurs
Don’t Do
By Erica Nicole
Photo: Erica Nicole, Founder and
CEO of YFS Magazine; Source: Jhnea
Turner, Photographer
Successful entrepreneurs possess
key characteristics — one of them is
mental strength. Mental mastery
takes time and commitment – it is
more than reciting affirmations and
wishing that one day you will have
what it takes.
Mentally strong entrepreneurs
make a decision to avoid pitfalls that
can keep them from reaching their
full entrepreneurial potential.
Here is a look at twelve things
mentally strong entrepreneurs
definitely do not do:
Figure 1

1. Waste time feeling sorry for themselves.
Okay. So, you failed. Now what? Feeling sorry for yourself should
not be on your priority list. The hard truth is this: entrepreneurs fail,
more so than non-entrepreneurs. This is par for the course because
they realize failure is an event and not a person. They are willing to
take more risks and reap uncommon rewards. As the late Zig Ziglar
once said, “Expect the best. Plan for the worst. Capitalize on what
comes.”
2. Blame others for their mistakes.
A refusal to take personal responsibility for one’s actions is a sign of
someone with a highly underdeveloped mental capacity. When we
make mistakes, we must own them … and capitalize on them.
Remember: “The master has failed more times than the beginner has
even tried.” ― Stephen McCrani (And entrepreneurship requires
mastery.)
3. Fear and avoid change.
Pivot here. Course correct there. The entrepreneurial journey is full
of twists and turns, rework, reimagining and iteration. Mentally
strong entrepreneurs learn to embrace change; realizing it is a friend
and not a foe. Change is important. Without it, you lose your
competitive edge and will find it hard to remain relevant.
4. Focus on things they cannot control.
There are many things we cannot control in business, but we can
control how we respond to them. Many entrepreneurs like to be in
control (guilty!), but mentally strong entrepreneurs know when and
where to wield this power. When faced with the uncontrollable we can
adapt, influence or choose. (The Other Side of Complexity) This is
true power.
5. Try to please everyone.
You cannot be all things to all people. In fact, stop trying. You can,
however, be many things to the right people – and this is what we aim
for. People-pleasing and people-chasing is a co-dependent behavior
that can steer you away from your vision, core values and
competencies. Mentally strong entrepreneurs aim to please
themselves (i.e., be proud of the work they do) and those they serve.
6. Resent and envy the success of others.
Mentally strong entrepreneurs realize everyone has unique gifts and
talents. This does not eclipse their ability to recognize their own. They
choose to empower instead of compete on trivial factors that do not
affect key business metrics. They hustle harder than they hate.

7. Walk around looking for handouts.
The world owes you nothing. Business is not always fair. Mentally
strong entrepreneurs understand this and do not wait for others to
hand them their happiness. They create value and understand the
power of reciprocity. The only entitlement mentally strong
entrepreneurs feel is from their ability to put in the work and reap the
full reward of their efforts. Mentally strong entrepreneurs work for it
harder than they wish for it.
8. Stop when there is no sign of immediate results.
It is an adage you will likely hear your entire entrepreneurial life:
Entrepreneurship is a marathon, not a sprint. At times, quick results
will come and then, suddenly they will not. This does not stop
mentally strong entrepreneurs from adjusting their plans and staying
the course.
9. Wait for perfect conditions.
There is no perfect time to start a business, take another risk or
make challenging business decisions. Mentally strong entrepreneurs
are like farmers. They know that farmers who wait for perfect weather
never plant. If they watch every cloud, they never harvest.
10.Fear personal development.
Mentally strong entrepreneurs take stock of their strengths and
eliminate weaknesses. They do not have all the answers, but seek the
tools, resources, and people that can supply them with what they need.
Successful entrepreneurs are always learning and growing — striving
to be a better version of their highest self.
11. Think like everyone else.
Mentally strong entrepreneurs develop the courage to think
differently. They have the audacity to imagine more.
12.Make excuses.
Someone once told me, “Excuses are crutches for the uncommitted.”
This is the unapologetic truth. Mentally strong entrepreneurs make a
consistent effort to rid their lives of excuses. They go after what they
want and they do not spend time telling you why they have not. As
Florence Nightingale, a philosopher and social reformer once said: “I
attribute my success to this – I never gave or took any excuse.”
"What's the use of running if you
are not on the right road."
― German proverb

Managing
People
.
MAY 2015
Managing
People
Page 57
Managing
People

Be careful of your
staff costs
By Memory Nguwi
We recently published our National Salary
Survey Report for the first half of 2015. Fifty-one
participants drawn from across 14 sectors of the
economy participated in this survey. In total,
participants provided data for 5822 employees.
These employees represented to full organisation
spectrum that is non-managerial employees, to
managerial employees and Executives. The
survey was based on data that we collected
between February and April 2015.
The movement in basic salaries is not consistent. Some organisations
have not increased basic salaries at all. In other cases, we observed that
basic salaries were actually coming down. As a result, salary increases
ranged -0.14% to 9%. There were a number of cases last year where
companies renegotiated contracts with their employees in a bid to
manage the wage bill.
The sectors of the economy that are pay higher salaries are generally
the more productive sectors. For example, mining and telecoms.
While organisations are struggling to meet salary obligations as
demanded by employees, very few organisations have implemented
sustainable remuneration systems. Many organisations are still on the
traditional remuneration system, which has the basic salary and many
other additional remuneration items. Only three of our 51 survey
participants are on the total cost to company model.
We however observed that some employers are reducing the number
of benefits that they provide to their staff, especially managerial staff.
For example, some companies have stopped providing the school fees
benefit. Other companies are moving are also moving away from
providing fully maintained company cars to providing vehicle
allowances; where the employees assumes ownership of the vehicle and
uses the allowance to maintain it.

Whilst it is generally acceptable to increase salaries as the
performance of the business increases, as many companies are realizing
now, this is being very shortsighted. There are many companies that
pegged salaries too high thinking the “level of business” would always be
the same – overtime that assumption proved false. Best practice is to
maintain a lean basic salary and benefits structure and add an incentive
component that is linked to performance. This incentive component can
fall away should the performance of the incumbent deteriorate.
Very few organisations have variable pay systems that can allow them
some form of flexibility about their total wage bill. Only eight of the 52
participants said they provided some form of performance related bonus,
21 of the participants said the bonus was guaranteed – regardless of
individual or company performance.
Generally lower level salary adjustments have been driven by NEC
negotiations although some of the organisations indicated that they
could not afford increases given at NEC level. This has resulted in some
seeking exemptions. A number of NECs are still actually deadlocked.
Despite all the evidence showing that the economy is in distress, some
of the Trade Unions and the generality of the workers are ignoring this
by calling for PDL linked wages. A case study of how not to adjust
salaries is evident in the civil service. Across all sectors, we still find
Unions that are still demanding huge increases far above the current
inflation and productivity levels.
We have also noted increased levels of retrenchments across all
industries as organisations battle to contain staff costs in the face of
declining capacity utilization and productivity levels. The current salary
trends reflect the low levels of productivity and generally a struggling
economy. The economy is not yet at a stage where it can absorb huge
salary increases that are not backed by productivity gains. Unions and
Employers must forge partnerships that will help preserve jobs rather
than being shortsighted. A high wage economy is a barrier to new
investment and competitiveness.
Indications so far from some of the survey participants and those not
part of this survey show that they will be budgeting salary increases of
between 0% and 7%. The organisations targeting a higher percentage
increase are assuming that their productivity will pick up in 2015.
To receive the full Private Sector Salary Survey Report April 2015,
contact me on the details below.
Memory Nguwi is the Managing Consultant of Industrial Psychology
Consultants (Pvt) Ltd a management and human resources consulting
firm. Phone 481946-48/481950/2900276/2900966 or cell number 077
2356 361 or email: mnguwi@ipcconsultants.com

.

Personal
development
How to ride the
current storm
By Nyaradzo Mavindidze
The word on the street and in every conversation is about how tough
things are in Zimbabwe and no one seems to have a clue what is going to
happen next. There is uncertainty, fear and despondency. The
TRENDING word is IMPOSSIBLE
As I write this article I’m thinking about the Philip Chiyangwa’s speech
at a business event where he admonished Zimbabweans for sitting and
watching the wind……” you waited for elections then you waited for
congress and you are still waiting…..” The question therefore becomes
what does one need to survive, grow and excel in this economy. How do
you turn the IMPOSSIBLE structures and policies in to
POSSIBILITIES?
PERSEVERANCE-
Do not be fooled, Entrepreneurship and Business are not instant
gratification; there is no such thing as overnight success even in stable
economies. The type of perseverance entrepreneurs and business people
needs is similar to the perseverance that is demanded from athletes.
Marathon runners, for example, must train for months on end, often
withstanding injuries and running in less-than-favourable weather
conditions. Not only do marathoners have to deal with grueling training
schedules, but they also have to make sacrifices such as abstaining from
late nights out with friends the day before long runs and cutting out

unhealthy foods. While entrepreneurs and business people are not
dealing with physical injuries, they certainly need to be prepared to deal
with “harsh conditions” for several months to several years.
It is easy to tell stories of perseverance and even easier to read them.
However, to actually persevere, when you face bankruptcy or your
company fails — that is hard. So how does one do it?
There is no five-point program, or simple set of principles, that can
provide the conviction necessary to truly persevere. That type of resolve
requires a mission. A simple, but unwavering belief in what you are
doing. It can be derived from faith in God, or a deeply held belief in the
triumph of science and reason. What the belief system is is not as
important as the depth of the belief. However, the more one believes in a
mission, the more resilient an individual or company will be when it is
tested.
Unfortunately, we have a big problem with patience and perseverance
because we live in a world where we expect instant results. If we are
hungry, we want fast food! If we are feeling down, we want instant
gratification. Again, our desire for instant kicks is exemplified by the fact
that pornography is one of the biggest online businesses. Again, there is
an ongoing spiraling rise in drug abuse, soft and hard. In exactly the
same way, television is teaching us that anyone can be an overnight
success – whether it’s American Idol, Britain’s Got Talent or the X-
Factor, we’ve a whole new breed of people who think that you don’t have
to work, persevere at and stick with something to become a success.
One of the great examples of perseverance Muhammad Ali, who hated
running on the road, said, “I run on a Wednesday, so I can dance on a
Saturday!” However, if you’re like all the other normal people whose
lives will never amount to anything great, if you’re easily bored or
quickly disillusioned, then almost anything that you turn your hand to
will become IMPOSSIBLE. In addition, once anything becomes
IMPOSSIBLE, you give up and go under.
To succeed you have to be single-minded and ruthless. You have to be
ruthless with yourself, with working on and maintaining your focus and
state of mind. You have to be ruthless in terms of sticking to your
objective. Highly successful business people are those who have failed
many times but who have tried repeatedly and again. Only one in ten
thousand people will, having failed three or four times, try again.
However, of course, even in the course of our everyday ordinary lives,
we fall on our face repeatedly. We may be trying to commit to a level of
personal mental discipline that will give us the kinds of clarity of mind
that will enable us create the success that we want. However, always
lurking in the shadows is the current reality of the ‘Zimbabwean
Situation’ and we somehow believe that our best efforts are going to end

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