F1A 16 | Finding Capital

 

Finding capital is one of the biggest challenges that any new business owner encounters. When Jurie Van Rensburg left his 9-5 corporate job to become an entrepreneur, it’s certainly one of the challenges he faced. When you burn all bridges and decide to become an entrepreneur fulltime, you will not have the same team support that you had with your old job. There are a lot of things up-and-coming entrepreneurs struggle with. Learn how to mitigate those things as Vera McCoy, Esq. brings in Jurie to explain. Jurie is the CEO of JVR Consultants Ltd and he helps entrepreneurs raise capital. Join in and learn more about this plus some lessons and insights that every budding entrepreneur needs to hear.

Listen to the podcast here:

Jurie Van Rensburg-JVR Consultants-Helping You Find Capital For Your Business

I have the pleasure of having on my show Mr. Jurie van Rensburg. He’s the Chairman and CEO of JVR Consultants Limited, Founder and Chairman of IRC Capital Limited. He is a board member of various companies. He’s a Company Director, Growth Finance CFO, Finance Director, Executive Management, Finance and Strategic Growth Partner in Business Development with an international track record of value-add delivery.

He’s experienced in raising commercial and project finance. He’s a tenacious, proactive and strategic Finance Director and Business Advisor who blends strong business acumen with international experience to add value to any business venture. He motivates his staff to achieve their potential. He demonstrates superior communication and interpersonal skills and undertakes negotiations firmly yet fairly. He’s an accomplished strategic CFO Finance Director adept at building progressive teams to achieve set results.

Stop working and start enjoying what you're doing. Click To Tweet

He offers years of international experience across the UK, South Africa and various African countries with an international network of contacts. He successfully delivers operational pulse savings and improves commercial and financial processes. I like the fact that he has international networks of contacts. We need all the contacts, especially when it comes to finance. Welcome to my show, Jurie. How are you?

Thank you very much for that warm welcome. That long introduction makes me wonder where I get time to do anything.

Usually, a successful person always has a good team that supports him or her as well as being a very good delegator. That’s how that whole thing works. That’s how you get it all done. Could you give us the name of your company, please?

My main company is called JVR Consultants Limited.

What’s the primary focus of your company?

The primary focus of this consultancy is to help entrepreneurs get ready for a capital raise, help them raise the capital, but that normally gets wrapped up in an associated growth plan as well. Ninety-five percent of cases of companies that I work with need capital to enable them to grow and package all those things together for them.

F1A 16 | Finding Capital

Finding Capital: The most important thing you need to know before leaving your job is to make sure that that is the right move for you. Know that the pleasure of self-fulfillment comes with it.

 

That’s something that every entrepreneur and every business needs. They all need capital. It doesn’t matter what services they’re providing or what business they’re in. Whatever product they’re providing, everyone needs capital. What got you started on this journey of your own entrepreneurship?

My own entrepreneurship started probably while I was still in junior school. It was something in me that made me want to do something more than normal. I started selling honey when I was about eleven years old. That’s something that always stuck with me. Having worked for a variety of types and sizes of organizations, from educational to commercial, from startups to FTSE 100 companies, the one thing that I always missed was being able to get out there and make my own presence felt, being in full control of my ultimate destiny.

That is what ultimately led me to decide to completely step out of the corporate world. At the time that I made that decision, I was a senior manager in an FTSE 100 company in Central London. I realized although I’m making a difference, I’m not making it for me. I’m making it for a large organization. That was the time when I finally decided to step out, once and for all, of this corporate rat race because that’s what it felt like. I started doing something for me but, at the same time, driven by my passion to help other people.

What did you say was the kind of corporation you were working for?

It was called an FTSE, which is the London Stock Exchange.

Is that equivalent to something like a Fortune 500 company in the US?

Yes.

What was your position there? What did you do?

Have the right mindset to drive things forward. Click To Tweet

I was in the Finance division. It was an international telecom company. I was a Senior Finance Manager in the head office.

When you decided to make this move, what were the obstacles that you faced doing this transition from a nice cushy corporate job to stepping out doing this other entrepreneurship-type thing, which you had no experience in doing, except for your experience in the corporate world?

I was fortunate to have had previous entrepreneurial experience under the guidance of great entrepreneurs. I knew what I was getting myself involved in. Sometimes I wished I didn’t, but for me, it was a relatively easy move purely in the sense that I was so focused on what I wanted to do and achieve. I jokingly said, “I want to stop working and start enjoying what I’m doing.” My only means of getting that was to work for myself. On the one end, that’s easier said than done. The biggest obstacle that I’ve faced at that stage was the cushion of ongoing financials. Whether you work hard or just float along, at the end of the month, you get your paycheck and you can spend it all because next month, you get another one. To move away from that was a difficult one, but that also was a big motivator for me.

What is it that you would tell an up-and-coming entrepreneur in terms of what they need to do to open themselves up to not only surviving the whole entrepreneurial journey but starting to thrive in there?

Whether you’re working for a large corporate or a small firm, if you’re not working for yourself and you want to make that move, first and foremost, make sure that in your own mind that is the right move for you. Expect that there are going to be ups and downs. Know that it’s not going to be the same as working for somebody else but also know that there’s the pleasure, the self-fulfillment that goes with it.

The most important thing and a single factor that I would want to iron out is to make sure that you’ve got the right mindset to drive things forward. Especially in the beginning, you won’t have the cushion of a large team of other people around you that will support you. You’ve got to be able and willing to do a lot more things yourself than what you might have been used to. The main thing remains, have the right mindset for it.

That mindset piece will continue to motivate you in driving forward when you get discouraged. What would you say to a new business person getting started in terms of doing or needing financing or capital like you provide?

F1A 16 | Finding Capital

Finding Capital: What do you need, as a minimum, for you to survive? It’s no use that you’ve got a fantastic business plan, and you can’t even survive for yourself.

 

First thing, when you start a new business, the most important thing for any business is you’ve got to be able to fund whatever you do. There’s one absolute first thing alongside your business plan and I’m not talking about a business plan or a 40- or 50-page document. It’s something that you write down for yourself, your own plan of how you will make money. First and foremost, on the back of that, start producing some financial plan around that. The first thing is go and list what your fixed monthly expenses are. That would be things like rent and telephone. Things that you have to pay whether you make money or not. Go and make sure you list everything, the insurances and extra costs that you have to do to go on without having any income.

The next step is to decide. At this stage, you haven’t worked out any salary for yourself yet. Go and sit down separately and work out what do you need for yourself as a take-home pay for you to survive. It is no use that you’ve got a fantastic business plan and everything else, and you can’t survive yourself. I’m not talking anyway near a nice big, fat salary. I’m talking about what is the minimum you need to survive. Add all those numbers up. Start thinking about, “What else do I need?” Maybe you need some equipment, additional staff or contractors to help you with certain things or some stock. Add all those things in.

On the back of that, you start planning what can happen with this business in the future. What’s going to happen between years 2 and 3? I know it’s difficult, especially in the early stages, to plan what it might look like. Don’t get carried away with your figures. It looks great if you think, “I’m going to increase my business and I’m going to make £10 million in year three.” It’s possible but think exactly how you will get there. Be realistic.

Once you’ve got those numbers together, that is probably the most important thing. You got to make sure that your projected income is more than your projected outgoings. It might sound very obvious but you’d be surprised how many startups I’ve worked with that show that they keep on making a loss and they haven’t thought about it, and then they asked why they fail after 6 or 9 months.

Make sure that your projected income is more than your projected outgoings. Click To Tweet

That’s what the statistics say. Many businesses don’t make it past the 1st or 2nd year. That’s in large part due to their financial situation. What you’ve offered is a very strategic way for someone who’s just starting a business to look at the whole picture, not just look at one piece of it. Sometimes entrepreneurs get so caught up. What you said is a great idea. You’ve got your business plan, but then what? What you’re saying is, “Sit down. Figure out what you need to take in to cover all of the expenses that have to go out. Think about also how you’re going to survive during that time period.”

There’s one little piece that I want to add on there. All of this sounds a little bit doom and gloom. It’s very likely that you will get to the point where you’re going to start doubting yourself. Once you put those numbers together, it might feel like, “It doesn’t look as good as what I initially thought. I’m not going to struggle to make money.” When you get to that situation, don’t give up and run away. Look at your numbers and start thinking, “What more can I do to grow this business faster so I can make it work?” Be realistic but focus on the positive side, not on the doom and gloom.

2020 has been difficult for many entrepreneurs. What would you say to them in terms of maybe bouncing back, moving forward or pivoting, whatever it is that they need to do to keep themselves afloat and then begin to move beyond being afloat?

With 2020, across the world, the one thing that it has taught us is that probably business the way we used to do it will never be the same again. Let’s take the positive side of that. A lot of people have realized that there is a much larger market out there than what they were used to. There are different ways that we didn’t think of doing business that is real. In many cases, it has forced people to take or start doing what they previously might have thought of.

The key things for me, firstly, think geographically bigger. In your forecast and ability, think bigger. Your market, your capability of your business is as big as you think it can be. There are a few obvious exceptions. If you sell tomatoes on a street market using that business model, you’re going to struggle to expand internationally. I didn’t say it’s impossible. I said it might be a little bit difficult using that model. There are lots of ways to grow that but think slightly differently. Don’t just think about what is happening on your backdoor.

Coming back to positive thoughts and mindset, the reality is that a lot of businesses lost a lot and are down at the bottom. What might feel for a lot of people is there’s no way out of this. There’s one thing that I have learned and if they put their mind to it, they will realize how simple the answer is. Every morning that I wake up, I know the sun is going to shine again, no matter what has happened. Whether there was COVID or world war, tomorrow the sun is going to shine again. The message there is to use the strength of your own mind and start thinking of, “What can I do to get myself out of this?” It’s wrong to just say, “I have been eaten hard by this.” In fact, you have. What are you going to do about it to get out of it?

The show is directed at entrepreneurship and bankruptcy. There’s some great advice because our objective is to look at the possibility of bankruptcy or if you’ve come out of bankruptcy as a new beginning, a new start to whatever your entrepreneurial journey may be. That might very well be something that you might have to consider doing, getting rid of all of the bad debt that you’ve accumulated and saying, “I still want to be an entrepreneur. What can I do?”

Use that mindset and say, “How am I going to move forward? How am I going to get beyond this?” That’s great. I love the mindset piece. People sometimes tend to downplay it like, “You’re saying this fantasy type of thing.” It will help you through a lot of your struggles as an entrepreneur. That’s good. When you found yourself in a position of difficulty or struggles, you use that positive mindset. Was there ever a time that you thought, “I’m going to give up on this and go back to my 9:00 to 5:00 job?” That was much cushier than being an entrepreneur, I’m sure.

There was a time where I felt I was going to give up. Never mind, go and find another cushy job. I was literally at the point where I was going to give up on everything. Physically and mentally, everything imploded for me. It was a combination of strong support from my family but also getting myself in my own mind, turned around and getting into the right mindset that got me out of that deepest down, darkest levels that I’ve ever been. Interestingly enough, at that time, I didn’t consider going back to a normal 9:00 to 5:00 job. Although several times that thought comes up.

When you’re an entrepreneur, not always, but you’re likely to have high highs and low lows, especially in cashflow. Normally when you get to that bottom, you feel like, “Maybe I should go and get a job work. I know I can get my pay at the end of the month.” When that happens, I think, “I’m going to get X amount at the end of the month and end of every month. I add that up in a year, but if I do and I do it right, I can probably earn that in a week. The following week, I can do more. If I’m smart enough, I could maybe in a year’s time earn more than what I would normally have earned in ten years working for somebody.” I’ll add the stress, for me at least, that goes with a normal job of not being able to control my own destiny and decide myself when I want to do things. That quickly moves me away from the thought of go and work for a boss.

F1A 16 | Finding Capital

Finding Capital: When you’re struggling to make money, don’t run away. Look at your numbers and ask what more can you do to grow your business.

 

What would be one of the projects that you’ve helped develop or provided funding for? What would be one of the projects that gave you gratification and then you looked at that and said, “This is why I do what I do?”

There are probably several of those. There’s one that I’m busy with and that excites me. When I get up in the morning, I can’t wait to get moving. Interestingly enough, it’s not something that I know I’m not going to make a lot of money out of it. That is not my drive. If I cover my costs on this one, that will be great. Although I know in the back of my mind, somewhere down the line, I will make decent money out of it. It’s a concept I’d be working with African countries. By extension of that, it will become developing countries, not only Africa, where we build community enterprises.

The whole concept is to bring a whole community together, create an enterprise that is self-sustainable, economic upliftment for the whole community, not 1 or 2 individuals. You helped a whole community build an enterprise in their own backyard that is firstly going to help everybody economically but also skillset. The emphasis beyond all of that is that it must be something that they can maintain and upskill themselves in.

We will get initial funding. A little bit of funding is required. We will bring in expertise to upskill and guide them and even expertise to help them manage on an ongoing basis, but we’re not a charity. We give them the ability to help themselves on an ongoing basis. I work with a principal who was a good mentor of mine. He said that many times the principle of doing good and making money is in that order. I believe the make money part will come at the end.

The concept behind this project is, “Give a man a fish and he’ll eat for one day but teach a man how to fish and he can live for a lifetime.”

I use that very often, but I’ve got an addition to that. I end up saying, “Teach that man to teach his whole community, and the whole community will always uplift themselves and will never be hungry again.”

Finishing our show, I always ask my guests to give me three things to educate, motivate and inspire my audience. There’s been a couple of great little nuggets that you’ve already given us in terms of motivation. I love the mindset piece. When you’re down and looking at, “This is not going to work,” get yourself in a better mindset, think and focus on the positive and encourage yourself to move forward. Give us one thing that’ll educate my audience.

From the educational point of view, always focus on what your numbers tell you. What I mean by that is ensure you’ve got proper statistics and financial progress about your business. Use that and let that tell you which direction you’re going. Don’t wait until you get your year-end financial accounts or when your accountant tells you that you’re out of money or your bank manager rings you up and says, “You don’t have money.” Use your available information. I’m not talking about the financial mess of spreadsheets, just 3 or 4 things in your business that will tell you at a quick launch whether you’re moving in the right direction or not.

What about in terms of motivation?

Motivation, whatever business you do, whatever type of business or market you operate in, whoever you do business with, always try and achieve a win-win situation.

Finally, inspiration?

Always be prepared to learn. Always learn from others. I believe in the saying that if you are the brightest person in the room, you are in the wrong group. I’ve been quoted by this many times. I always say that, “I believe the day that I stopped learning will probably be about 2 to 3 weeks after I’m dead because it will take me that long to realize I can stop learning.”

After this year, business the way that you used to do it will never be the same again. Click To Tweet

I know you have an event coming up pretty soon. Can you tell our readers about that?

I’ve got several events. With the big one, I’ve got it all better. I can’t talk about that one here, although it’s burning me, but that’s in early 2022. I will be launching a new program. I focus on entrepreneurs that have got approximately $1 million in revenue and want to raise $5 million or more in growth funding. The program is of such a nature that it will take you through all the steps of understanding your business all the way through to raising capital, helping and getting you ready to raise that capital for you with several guarantees both into that whole process. That will go live.

What platform would that be? Is it on your actual website?

It’s on my website. They will see it through my LinkedIn profile as well.

People can reach you by doing what exactly?

The easiest way to reach me is either directly by email, which is JVR@JVRConsultants.co.uk or through LinkedIn.

People need to know who you are because you’re the man who will help them get money for whatever project there is. Thank you so much for being on my show. The show is directed at helping those entrepreneurs get the capital, the inspiration and the motivation they need. Your whole presentation has been all about that. I so appreciate that. I’m hoping that my readers will appreciate it as much as I have.

It’s been an absolute pleasure speaking with you.

Thank you.

Important Links:

 

About Jurie Van Rensburg
F1A 16 | Finding Capital

Chairman & CEO- JVR Consultants Ltd
Founder & Chairman- IRC Capital Ltd
Embark Million Dollar Authority Partnership JV – Capital raise
Consultant Director – Funding Index Ltd
Company Director / Growth Finance, CFO / FD, Executive Management, Finance & Strategic Growth Partner in Business Development, with an international track record of value add delivery.
Experienced in raising commercial & project finance on an international level.
A tenacious, proactive and strategic Finance Director and Business Advisor who blends a strong business acumen with international experience to add value to any business venture. Motivates staff to achieve their potential, demonstrates superior communication and interpersonal skills and undertakes negotiations firmly yet fairly.
Ø An accomplished Strategic CFO / Finance Director adept at building progressive teams to achieve set results
Ø Offers over 25 years of international experience across the UK, South Africa and various African countries with an international network of contacts
Ø Successfully delivers operational cost savings and improves commercial and financial processes