Lere Mgayiya spent five years working for
South Africa Airways
He worked with livestock on his family's
business
Winning the Sandlam Money Game on TV led
to a quick cash injection
Now, his shoeshining business has 45 staff and
turnover of more than 2.5 million rand
Every week, African Start-Up follows
entrepreneurs in various countries across the
continent to see how they are working to make
their business dreams become reality.
(CNN) -- Suede slip-ons, elegant high-heels or
lace-up brogues -- whatever shoes you wear in
an important business meeting you want to look
your shiny best. Some people apply polish with a
brush and others choose a cloth, while those
coming from afar often leave the task to the
capable hands of craftsmen who can make travel-
worn footwear look like brand new.
If someone has shined your shoes in a South
African airport, it's probably thanks to Lere
Mgayiya.
"We're the biggest shoe-shine company in Africa,"
he explains without sounding arrogant. "In
Johannesburg we shine about 350 pairs of shoes
a day, and about 120 pairs in Cape Town and
another 120 in Durban." In total, Lere's Shoe
Shine business has 45 employees across the three
major airports, and the boss is now eyeing
partnerships in America and UK, as well as
expansion across Africa.
Shoe making saves street kids
'Inspired learning' transforms education
Breaking down barriers for women in tech
On this particularly day, Mgayiya, 40, is wearing
Clarks -- black slip-ons. With annual revenue
nearing 2.5 million rand ($227,000), his demeanor
resembles his feet -- comfortable.
But things weren't always on such a sure footing
for Mgayiya. The resourceful South African had to
go through a string of failures to get to where he
is today -- a spectacular entrepreneurial journey
of risk, belief and reward.
Airborne beginnings
Long before becoming South Africa's shoe shining
king, Mgayiya started his professional career
distributing boarding cards for South African
Airways. But after five years with the airline and a
promotion to supervisor, Mgayiya was made
redundant. "I wasn't ready to leave," he recalls.
"If the truth be told, I was afraid -- it gave me a
push."
Mgayiya stopped handling paper and joined the
family livestock transportation business. "I
enjoyed being out and about," he says, while
explaining his role negotiating with farmers. "I
enjoyed setting my own goals and achieving
them."
But life in a family business wasn't all plain-
sailing. When Mgayiya suggested taking a loan
and securing exclusive contracts, his uncle asked
him to move on. After a year, he was jobless
again.
Failed attempts
His mother's brother took away his job, but
Mgayiya kept in contact with his farmer clients
and soon embarked on his next project: selling
the farmers' eggs to the kitchen of the South
African parliament. Making just $6 profit per egg
box, this however was not a lucrative operation.
"I fell behind with payments to farmers," he
remembers. "I didn't have money to start my car.
You need big pockets to run a supply business."
When his chips were down, Mgayiya stayed
optimistic and entered the Sandlam Money Game
-- a TV competition for entrepreneurs. Marketing
execs at Red Bull liked his advertising idea, and
Mgayiya won the game. "I got 35,000 Rand ($
3,100) in two days," he says. "It was great."
A hungry man can't think, and I was starving.
Lere Mgayiya, Lere's Shoe Shine
He took that money and invested it all in a tree-
planting company which he then started working
for. But six months later things went sour, and
Mgayiya was penniless again and back at square
one.
Mgayiya had already experienced hard times, but
the year to come was to test his resolve. "I
needed a steady income, so I decided on a shoe-
shining business at Cape Town airport. A hungry
man can't think, and I was starving."
He got in touch with his contacts from his airline
days and applied for the business space in
November 2002. The authorities took until
September 2003 to give him the go ahead. "In
that year I sold my car...I worked as a
receptionist for three months. I begged and
borrowed just to make ends meet."
Business beginnings
Before he could start shining shoes, Mgayiya
pawned his fridge to buy business equipment. But
on his first day Mgayiya and his sole employee
arrived to bad news. "The supplier I had paid to
provide pedestals failed to deliver," Mgayiya
remembers. "I polished shoes in my lap."
When starting a business in South Africa, you
need self-belief.
Lere Mgayiya, Lere's Shoe Shine
In the beginning, both staff members worked flat
out 5am to 9pm every day of the week except
Sunday. "I left the house before my family woke
up, and only got home after my young daughter
had gone to sleep," he recalls. "It was tough."
But customer numbers soon got a boost after a
client suggested that the business name should
highlight the personal, chatty aspect of the
business. "Airport Shoeshine" became "Lere's
Shoe Shine," and people liked it -- after just four
months. the team had grown to five and business
was booming.
Big plans
Success in Cape Town didn't cool Mgayiya's
ambition, and after a year he got a chance to
pitch to the person in charge of all South African
airports. She liked his idea, and expansion started
soon after. At its height, the company had 60
employees in five airports across the country.
Today, Mgayiya has scaled back to the three
major ones: Cape Town, Durban and
Johannesburg.
"I have my own house and send my daughter to
private school," he beams. "And I could afford to
get married -- a proper marriage." He no longer
works from 5am to 9pm either. "I just do the one
shift from 12," he says, laughing. "The family
loved that one."
"When starting a business in South Africa, you
need self-belief," is his top advice for young
entrepreneurs. "All the conditions will never all be
favorable at the same time. If you don't start, you
won't go anywhere -- you have to start."
While he's under way now, Mgayiya shows no
signs of stopping. He has his eyes on Angola,
Kenya and Nigeria for expansion, as well as
partnerships in U.K. and America. His shine for
business may have emerged from a number of
failures, but this entrepreneur shows how
smudges and setbacks shouldn't get in the way
of success.
No comments:
Post a Comment