Reflection

Reflection back on the past is considered by many to be the final process after completing a task, as a way of understanding and learning from that past experience.  This is indeed true now that we have the ability to have experienced different situations, the ways that they were dealt with, and the eventual outcome from the decisions that were made.  In order to gain the most from the reflection back, looking at only a few of the aspects would never achieve the full benefit of this.  One must be able to understand that from the very beginning of the experience all the way to the very end, all contributes to the overall lessons that can be learnt from the process.

Taking a step back from the chaos of the current situation we can split the experience from the Genesis Program into potentially three different major areas.  These areas are namely:

1) Teamwork
2) Product conception
3) Relevant market/Marketing

Looking at each one of these, one has the ability to analyse and obtain the lessons that can be learnt.

1).  Teamwork forms the main part of any type of group work. A team needs to be able to get on in a civilized manner even when there may be disagreements, one still needs to be able to work as an effective team member for the overall success of the task that is at hand.  Some might say that a completely diverse team is what is needed, whereas others might say that a team of similar people wold do better.  Everyone has their own choice to make as to the opinion that they choose.  We definitely found that a diverse team, although possibly pron to more arguments is better in the long run.  Diversity within a group allows for more ideas to be brought to the surface that would otherwise not be thought of with a similarly minded team.  The idea of one team member is questioned and researched during group meetings to evaluate as to whether or not it is worth looking at a deeper range.  The diversity overall strengthens the group in such a way that a group that started out at six members can still achieve the same amount of work as a group of four.  This was a real test of team work to see if everyone was willing to adapt to the changes and grow with them, or crumble at the first or second stressful situation.  No matter how hard the work is to achieve, with good teamwork it can be done.

2).  Deciding on what type of product is needed to solve a problem is an important step, as no product, then no business.  The question is what can be made that will solve a current problem in society.  This may be harder than one thinks as we have adapted ways of doing things so unless there is a direct problem that you can see, it will take a fair bit of work to find.  Once the problem has been found, it is a simple case of deciding on how the problem can be solved.  This is where the product can come in and fix the problem.  The solution can be anything from trying to solve a major problem, or creating a platform in order to help advance the abilities of another.  Either way, a form of problem is being solved and addressed.

3).  Having a great team and an awesome product is great, but it will not progress any further unless there is a market that is wanting the item.  This is where the market research and marketing abilities come into play.  The market has been created from the need that people have for a solution, and the solution has been created by the team in term of the product.  Last part of this is being able to convince people that the product that you have will be able to solve their problem.  This is determined by the ability of the marketing that is used to promote the product.  Trying to market something directly to someone needs to be quick and effective in order to capture their attention and not waste their time.  Certain products do not fit every demographic of people, and this is where the market research is brought in.  With the market research, we wanted to see if there was actually a demand for the product, and the various demographic areas that were out new target market.  As it turned out, there was indeed a market for the product when asking future customers.  This was good news!  Unfortunately, a lesson that we learnt was that this product was not one that people wanted to admittedly buy in the open, and even when given the opportunity, they really liked the idea but didn't feel that they were willing to spend money on it.  This was a major lesson that we learnt from the marketing and sales part.  People are more drawn to gadgets and products that can set them apart from their friends.  Allow them the ability to set a new trend among their own circles.

From all of this, although not a direct financial success with regards to the business, it was not a complete waste as we gained an extremely large amount of experience, possibly more than we would have in three years of work.  Yes at times many of us wanted to give up and walk away, but walking away would not have allowed for the great and vast  investment of experience and knowledge.  Would anyone regret doing the year, maybe, but in my opinion, it was a life changing experience and adventure.

Collapse with Belguim

A few months back we had a meeting with venture capitalists from Belgium that went really well for us. They enjoyed our presentation and liked the direction that our product was heading at the time, when there was still so much potential. One of them, named Manuella, even sent us a Facebook inbox while we were presenting to wish us good luck in the future!

A few days later Manuella sent us email saying she was keen to work with us and wanted to somehow take the product to Belgium and get it into the university that she works at. She even wanted to send us two interns, in the new year, to help us expand and improve our business. We were also keen for this opportunity and were waiting for the Belgian academic year to start so that we could discuss things further and hopefully materialise all the talk.

The Belgian school year started two weeks ago and Manuella had two interns that were keen and ready to join us in February. But since we last spoke with her a lot has changed with the business. We had since decided to dissolve the company  and therefore could not take the interns anymore. It was difficult to tell her this news but she understood. I just hope that the students can manage to find internships somewhere they will enjoy working at.

Post Board Meeting Experience

Its a new week and the general feeling after our final board meeting with our directors is to close the business and divide the remaining stock amongst the shareholders. I feel that the directors have been very helpful in giving us the needed business guidance we were all in need of. The insight from our directors gave ORA Hygiene an informed perspective on how things really work in the real world. 

For me, the biggest contribution from directors was from Mike Darby our Social Project director that put us in contact with Warren from Seven Stars Retail in Johannesburg which I personally had a meeting at their offices in Johannesburg. As much nothing tangible was gained from the meeting there were lots of intangible lessons learnt from the experience that I will use for many years to come.

I believe that the kind of mentorship that directors gave was critical in many respects and such models should be encouraged in informal situations where there are aspiring entrepreneurs in places like townships and rural areas. 

Possible Future of the Company

Time is drawing to a close, but this does mean it is the end.  The decision of what happens to ORA after this year is now the question on the groups mind.  Will it continue to operate, Close down, or be taken over by a single existing member.  A lot of thought needs to be given to this question.  When one looks at the reasons to stay in a business, is it because they want to further develop the company, keep the current company but further develop themselves, or grow together with the company and reach for new heights, or alternatively, is it time to part ways and start a new adventure looking forward with the experience that we have gained.  At the current point in time, the decision that is currently on the table is that only one member of the group remains in the company on a full time basis, and the rest with draw.  These are hard decisions that need to be made, so no one wants to stay with a business that eventually might close due to poor market support, or withdraw, and lose out on great product success. This choice is one that take a lot of care and thought, but ultimately comes down to what the individual feels is the best decision for themself.

One Product Focus?

During a recent board meeting with some directors, it was mentioned that we only focused on one product during the Genesis year.  A few times, the addition of a product was mentioned to try broaden the range.  Reflecting back on this, what was the right thing to do? Focus on one product, or try run two products at the same time? We decided to focus on a single product, so that all of our attention was given to the one product.  At the time, we felt as a group that this was the best plan of action. Stream like our goals and work to achieve them.  Looking back now, it may have been beneficial to start the second product and use it to try draw attention the the original product.  These types of decisions become part of what make a business successful.  It is always easier to look back and say that this and that is what should have been done, and not so easy in the moment.  It becomes the experience of all these decisions that change the way that are approach other decisions in the future, as we would have gained a better understanding of the outcome from past events.  This sort of thought process comes naturally to some, but most need to develop the ability through gained experience.

Supply and Demand

Supply and demand of a product is what determines the price of a product.  This applies to almost every form of item, from fuel to that of vegetables.  Having an abundant supply of an item wont sell it, but it is the demand for that item that will sell it. But how is demand created?  If it was an easy task, then every product ever made would still be sold today.  In order for demand to be created, the people that become part of the respective target market need to want the product, regardless of if they need it in their life or simply want it.  In order to create the demand that is necessary to move forward, a problem needs to be conveyed to the potential customer that will make them want the solution to that problem.  That is when you present the product as the solution to them.  You have shown them the problem, made them look for a solution, and provided the solution to them.  This is a fairly simply concept, but the trick comes in convincing the potential customer that the solution that you are offering, is the very solution that they want.  This is the tricky part, the sales pitch.  It takes a large amount of practice to perfect the perfect sales pitch that will win every time.  Many look at rejections as a negative, but in a way, every no gets you some step closer to a yes.  It is the perseverance of the salesman to continually try and sell as much as he can.  Perhaps this is the way that a salesman gets his adrenaline rush!

International Marketing Aspects

With the recent hindrances that we have faced regarding the local retail market in Cape Town, we decided to look abroad to the neighboring countries and even those overseas.  In a way, we are not expanding the company, but yet we are attempting to expand the range of the product.  for us to even attempt to do this, factors need to be researched and understood, in order for this to even be possible.  Regardless of if the company is expanding or the reach of the product, the same main factors need to be considered, namely if there is the relevant market for the products, and what are the restrictive barriers that may be present towards the product.  These barriers may be anything from miscommunication between two languages to the local laws and legislation, to even the cultural acceptance of the product.  Culture plays a massive role in the expansion to another country, so it can definitely make the expansion a success or a failure.

Regarding ORA and the product that we stock, we believe that out biggest cloud would be as to whether or not the market for the product is currently available in the different regions or not.  Perhaps one of the best methods of assessing this for any company would be to secure a local team from the very region, and allow them to do the market research regarding the product.  By doing this, they are able to explain to the locals about the product in a more effective way than that of a foreigner. It allows for the avoidance of miscommunication about the product, the stigma of talking to a foreigner about such a 'uncomfortable' product, and ultimately achieve a more realistic idea of if the product will thrive in the region or not.

Retail World

Determining what type of product is thought to be difficult, yes, granted it is the main part of the equation, but we came to realise that compared to the process of trying to convince the market to purchase the item was just as challenging.  This is targeting the individual people in the particular market spectrum.  Now try and get this product to be of interest to major retailers.  This in itself is a really challenging task.  We received some great advise regarding this aspect, however the concept that stuck in our minds was that no one cares who we are. No one is interested in us regardless of the product, unless they can make money off of it or off of us.  Its not as easy as simply asking the retailer to purchase the stock from you.  They don't carewho you are at all, they will only consider the item if they are able to sell it, therefore ontop of creating a product that solve a problem, you also need to create the awareness of the product, and the need for it so that the demand will meet the supply potential.

Provided that you now actually get the product into the market, at every point along the way, there is someone with their hand out wanting their share.  Be it the distribution centers wanting a percentage or the store itself wanting a fee for the retail space over and above the profit that they themselves make on selling the item.  There is then SARS that want their share as well.  Taking our very product for example.  If we want to sell the product to a retailer at a value of R20, by the time that we make a profit, instead of the 200% profit, we only walk away with 50%.

A simpler example is as follows:

Sell item to retailer for R20
Vat - 14%
Distribution Center Rates (approx) - 15%-20%
Store Rebate (approx) - 15%
Merchandisers (approx) - 10%-20%

Once all of this has been paid,  the profits that remain are very slim compared to the original expectations.  Any product that made, needs to me produces as cheap as possible in order to try and achieve any form of measurable profit.  Real life retail is a tough, tough world to try and be part of.