BUILDING A BUSINESS EMPIRE

Create a business that gives you a constant cash flow – Sudhir
By Angela Kateemu

Sudhir during the 360° Network Ask the Entrepreneur Forum

Sudhir Ruparelia is a businessman and entrepreneur in Uganda. He is the Chairman and majority shareholder in the companies of the Ruparelia Group. His investments are mainly in the areas of banking, insurance, education, broadcasting, real estate, floriculture, hotels and resorts. He owns a quarter of the buildings strategically located in Kampala’s central business district. He owns Crane Chambers on Kampala Road, City House on Luwum/William streets; Raja Chambers, Baumann House, the building housing the Police headquarters and Development House — all located on Parliamentary Avenue. He also owns Platinum House on Market Street. He has built a few, but most of his buildings have been acquired from people who default on loans from his money lending services. His business empire includes hotels: Speke Resort Munyonyo, Kabira Country Club, Speke Hotel on Nile Avenue and Tourist Hotel on Dastur Street. He owns Crane Bank, Crane Forex Bureau, Meera Investments and Gold Trust Insurance Company. He is also into agri-businesses like flower growing (Rosebud) and the education sector, running schools like Kabira International School and Kampala Parents School. While speaking to eager young entrepreneurs and enthusiasts at the 360° Network Ask the Entrepreneur forum last month, the business shared a few secrets to investment success.

How do you formulate business winning ideas?
Sudhir: I do business which suits my lifestyle. I don’t do business because someone is successful in it. I own hotels because I’m outgoing and love meeting people. I am into education because I didn’t have much so I want to make good schools in Uganda to educate people.

Family Background
Sudhir: My father’s grandfather came to Mombasa in 1897 from India. They were traders. They were dealing with workers on the railway site. In 1903, they reached Uganda. My father was born in Uganda in 1932 and I was I was born in 1956 in Kabatooro Kasese to a middle class father, not rich, not poor!  I could afford two pairs of School clothes a year.

Capital to start business
Sudhir: In 1972, when I was 16, I followed my parents to UK.  When I landed in UK, I had to support myself in London while my parents lived up north. The first thing I wanted was to have my own house, so I took on two jobs and an evening class. No job was too small or too big for me -I worked as a baker/butcher in a supermarket and drove a taxi during the weekend. In 1985, I decided to come back to Uganda -Africa was in my blood!  I came back from the UK with capital worth $25 000.

Building the empire
Sudhir: It took me two years to find out what I really wanted to do. The first thing I had to do was pay rent. Then I needed something to do. In 1986, I opened the first shop on Kampala Road. I started with salt –it was the most selling commodity at the time and by the end of the year made $5000 profit. Then I started dealing in beers –my capital was limited so I was buying from people who used to import it. I then partnered with someone, built a trust and made good friends. We started importing beer ourselves. We basically created a cash flow –this is important because it is the stepping stone to many other things.  You need is to create a business that gives you a constant cash flow.
In 1989, the beer business came to a standstill.  The small stock shop evolved into wholesale. Then I started foreign exchange with in six months, all banks started foreign exchange. The government legalized the foreign exchange dealings but levied heavy charges for transitions. That’s when we looked at Plan B. Banking. We needed business capital which we had -we were lending money to business people. In 1995 Crane Bank opened with six expert staff and twenty auxiliary staff. We made profits from banking and spread out to real estate, hotels, and other investments. My passion was Munyonyo but it needed a lot of money. I started investing everything in it: I remember my 7-year old son asking me: ‘Dad, is Munyonyo going to bankrupt us?’  What Munyonyo has become is beyond my expectations!

Where does the future lie in business investment?
Sudhir: Every field.  The economy is enormous –there is opportunity every where in the areas of IT, trading, agriculture, industry, commercial firms, food –every field is open.  Uganda is a virgin country.

What is your definition of work value?
Sudhir: Time is not quantifiable; what dictates my day is when problems come.

Dreaming Big

Robert Ahimbisibwe during the 360 Network Ask the entrepreneur forum

Look at what someone has done, aspire to do it better 




By Angela Kateemu

10 years ago, Robert Ahimbisibwe started Select Garments. Last year, it was named as one among the Top 100 well managed medium sized companies in Uganda. Just this month, Ahimbisibwe launched another shop at Lugogo based Forest Mall, the launch that doubled as celebration of 10 years in business. He started in Kikuubo and made his way to upmarket malls like Garden City, Forest mall. He is one of the leading clothes dealers in town boasting of loaded corporate clientele. During the 360° Network organized Ask the Entrepreneur Forum earlier this month, ‘Select’ as he is fondly called, talked to aspiring entrepreneurs about his secret to success.

You went to school, why are you in Kikuubo?
Robert: I am in Kikuubo to make money.

Why clothes?
Robert: When you take a look at the people around you; you won’t know the kind of house they sleep in or how they move. The only thing you’ll see are clothes. 90% of our bodies are covered in clothes. Money is in the business of clothes.

Why didn’t you do something in the line of what you studied?
Robert: Business success is not about what you studied! It is about passion. You have to be passionate about what you do. Skills are very important but I’d rather hire someone with attitude. You can train skills for example you can train someone computer, how to run a machine but you cannot train  them the right attitude if they don’t have any to begin with! You can’t impart positive attitude. 

What is your secret to success?
Robert: Dreaming big. Have the drive and you will achieve what you want. The first time I came to Kampala, I got a ride from a distant relative. What I saw first was the taxi park –there were so many cars! I had never seen so many cars in the same place! I remember thinking to myself, if there are so many cars in the world like this, I want to own one! If you have that kind of drive, the feeling that you can make it!


How did you raise capital?
Robert: After I left school, I tried to look for jobs and made over 100 job applications in one year: my sister was working in a government institution so I could afford photocopy. I took applications to almost every office in town. But I did not get the job! My brother was working at Entebbe Airport as a Client Agent so I started hanging there. He was not too happy about it, he told me “I educated you to get a good job, I want you to get a government job to pull up our family. But I saw what was being done by some people there and I learnt quickly. People started hiring me to do their jobs on a sub contract basis. Eventually my brother started paying me. Within the first year I was at Entebbe, I was able to buy my own car from the savings I made. I always dream big. 2-3 years down the road, things were not good. There was no money that’s when I realized I wanted to start my own business

What’s the secret to developing career wise?
Robert: Every job you do, create a relationship; you never know what will help you. People I associated with at the airport cleared clothes. Through my association with them, I knew everything there was to know about clothes. I did not have money so I sold my Toyota Kikumi. In 2001 I started Select Garments at Mutaasa Kafeero.

What advice would you give to a young entrepreneur?
Robert: Skills are important but they are the least you should emphasize. When you decide on what you want to do, choose something you love. Do it with enthusiasm and right attitude. Everything you do, do it to your best. Don’t do so much when you are not doing it right!

What is the difference between Chinese, Indians and Ugandan traders? What makes them successful?
Robert: Saving culture. Ugandans do not know how to separate business money from personal money. The  Asian business man cannot touch money for business to do something personal.
More so, they have a family system: they train earlier than we do. When someone is born, they start grooming him to take over family business. When an Indian father employs his son, the son starts with the low jobs and builds up. Here when a father hires the son, they make him the managing director even when he has not proved the right candidate for the job.

Business success

Sylvia Owori speaking at the 360 Network Ask the Entrepreneur Forum

Choose a field you love, put your mind to it  -Owori

 -By Angela Kateemu

She has come up against all odds to overcome the mentality that women are not cut out for business. Listening to her speaking about career alongside business moguls; Sudhir Ruparelia, Patrick Bitature and Robert Ahimbisibwe at the 360 Network ‘Ask the Entrepreneur’ Forum that took place Thursday evening at Rooftop, I couldn’t help but admire her charisma. She is stylish, successful, believes a great deal in her work and herself.  Sylvia Owori has done more than people believed she could. Her break into fashion happened when she took on the challenge of revitalizing the 'Miss Uganda Beauty Pageant', which following her input became one of the most significant events on the Ugandan social calendar. She  revealed her innovative talent by designing outfits for the contestants of the M-Net Face of Africa. A pioneer and role model in the East African fashion industry, Owori started Uganda’s first Fashion House –Sylvie’s Boutique which has a number of shops in up market shopping centres; Uganda’s first modeling agency – Zipa Models and in 2005 she launched Uganda’s first glossy women’s magazine, African Woman, which is circulated on a monthly basis in five different countries.  Listening to her talk about her career, Owori is that woman that every working girl should use as constant reminder that it is possible to make it in the male dominated business world. Here are excerpts from her talk at the 360 Network ‘Ask the Entrepreneur Forum’.

Is business just for men?
I don’t believe that. Just look over here; I am a female panelist seated with very successful people: Sudhir, Bitature, Robert Ahimbisibwe and I’m not intimidated! It is not easy for a woman in business because if you are married, your husband doesn’t want you dress well and you go for a business meeting you will look attractive. But men you need to support your wives, your mothers, your sisters.

Does the fashion business make money?
I started out in 1998 when I came back to Uganda. Everybody wrote me off before I could even start. They claimed I was bringing clothes to sell to prostitutes. So no one took me seriously. But no one is naked: in fact, second to food, everybody needs an outfit to put on. It all depends on how much you want to spend on what you wear. Right now I can clothe the whole country. So yes, this business makes money!

Starting Capital
I come from a very humble background: my dad passed on when I was little and our mum had to toil to raise seven of us. So I didn’t have family money but I had a rich boyfriend. I knew what I wanted to do; he gave me the capital to start out. It is one thing to have the capital but if you don’t have the skill, you gonna waste it.

About success
I was bold and persevered – I kept pushing!  When I started out, I didn’t know much about the culture of the corporate world. I remember the first meetings, I used to go in a meeting with a vest and torn jeans – I didn’t know better.   I remember some time after I started out, Sudhir told me something that has become a great inspiration. He said, “I see a little bit of myself in you!” Every time I feel a little bit discouraged I tell myself Sudhir believes in you!

Losses and challenges
Anyone successful in business knows there are so many losses and challenges. I have faced financial challenges and have had to resort to loans sometimes. I learnt at an early stage that banks give you money if you have money. You have to keep track of your business expenses and bank your money so that the bank can trust you, should you ask for a loan.

Prevail over competition
Knowing your competitors is key. Once you do that, you market continuously. Every industry is different; mine is luxurious and trend based; so you have to constantly create a brand!

Message to the young women who want to do business
Anyone can do business. You just have to believe in yourself. You have to choose a field or industry that you love. Don’t just go out there and start business because you’ll fail. You have to be passionate about what you do and put your mind to it.

Successful Investment

Patrick Bitature adressing people at the 360° Ask the Entrepreneur  Forum        

Any Business You do Should Make You 1% Profit per day –Bitature

By Angela Kateemu

Patrick Bitature started his business empire with a single company, Simba Telecom, then a retail chain dealership, in MTN air-time. ‘I was vending airtime,’ he says. From there he expanded into broadcasting, , followed by Electronics. He also has interests in insurance, banking, hotels and resorts. Today, his businesses have subsidiaries in Uganda, Kenya, Tanzania and Nigeria. He owns the following businesses either wholly or partly: Simba Telecom Uganda, Simba Telecom Kenya, Simba Telecom Tanzanaia, Simba Telecom Nigeria, Simba Electronics Limited, National Insurance Corporation, Global Trust Bank Uganda, Electromaxx Limited Uganda, the operators of Tororo Power station, a 20MW thermal power plant that uses renewable bio-diesel to generate Electricity. New Vision Group Uganda, Protea Hotel Kololo Uganda estimated at Shs 15bn, Simba Tours and Travels Uganda, Simba Distributors Ltd, Simba Properties Ltd Uganda, Simba Electronics, Simba Forex Bureau Limited, Blitz Video, Ice Cream Ltd and Dembe FM. While talking to business enthusiasts at the 360° Network Ask the Entrepreneur forum the other week, the business mogul talked about investment and how to start a business and develop into an empire. “I always like to share the little that I know with anybody who is serious about something they are doing. I went to business school, I read books but most importantly I learn from people -people like Sudhir who have built business empires.” There is a lot you can learn from his talk if you are looking at starting and running a successful business.

Raising Capital to start a business
Bitature: There are several ways of getting capital: you can inherit it, marry into it (but the mother-in-law will always spot you!), you can gamble - I wouldn’t count on that! Other people steal (I wouldn’t advise this though!) So there are only two ways to get this capital. One you have to earn it. Get a job work for it. Even if they pay you little! Secondly, you can borrow –get a loan from a bank. When you earn you have to save, what you save can help you borrow. The bank will look at how you run your account before they can give you the loan. If you are not sure and have no focus on what you want to invest in, then don’t borrow!

Why Ugandan businesses fail
Bitature: The spirit of entrepreneurship is there in Uganda but so many businesses die with in the first five years. It is a shame! It is like when you rear so many chicken but many of them die before they are productive! The reasons why businesses fail include the following:

Debts
Bitature: We don’t have a culture to honour commitments especially to loans!  You get money from the bank and you don’t want to pay it back because of school fees or your wife is sick or something happened. When you don’t clear your loan, the bank will come and repossess your property.

Lack practical skills
Bitature: We lack the practical skills because we over emphasize academic education. When you come out of the university, you know nothing about business. There are so many people in Kikubo, they are not educated, walk around in shorts but they are astute businessmen and have made lots of money.

Secrets to successful business
Bitature: All rich businessmen have discipline. You have to persevere. Every one of us has made losses at one time or another but we cut our losses and move on. You have to tenacious and hardworking. Lay a good structure: It is better to be a small fish in a big pond. Do not rush into partnerships.
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How do you manage to be successful and humble at the same time?
Bitature: Humility – when you are ambitious, you have to have somebody that pushes you to be number one. For me, the credit goes to my mother. My mother passed on, now I have my wife took. She always reminds me to keep my feet on the ground.   It helps when you have someone to bring you back down: people forget and they think they are too powerful.

Advice to young entrepreneurs
Bitature: Any business you do should make you 25%. Make sure you make 1% percent a day!