When starting your own business you don’t always need to be the expert, but you need to know how to run a business.

When Bulelwa Tengwa decided to open her first hair salon she knew very little about how to style hair but what she did know was that there was a gap in the market for a formal hair salon for black professional women.

“I realised there were no professional salons for women in Khayelitsha. There were only informal salons which were not offering a good service. They did not have water and were using bad products which damaged people’s hair,” says Tengwa who quit her job with an airline in 2008 and used her pension payout to start BG’s Hair Salon in Khayelitsha Mall.

Although she had worked at her cousin’s hair salon many years earlier while studying, Tengwa had little experience as a hair stylist. She recognised that her expertise lay in running the business, not styling hair.

“I hired experienced people, but I also went on a two-week hair styling course and regular workshops with the hair product suppliers,” says Tengwa who realised that while she wanted to focus on the management of the businesses, she also had to understand the trade and to be able to step in when needed.

Tengwa’s first challenge was to change the mindset around using a formal salon. Women had to get used to paying higher prices for a better product. “It is a safer way to have your hair done. There is safe parking and people know the products won’t damage their hair. The staff is well trained and go on regular styling courses,” says Tengwa whose salons have a relaxed environment with music, magazines and coffee.

It took six months before Tengwa was able to make her first, relatively small, profit. She had to take money out of her household budget to keep her business afloat. Fortunately her husband, who owns his own butchery, was also able to support her during this time.

In March this year Tengwa took a very big step and opened up her second salon in the new Site C shopping centre in Khayelitsha. She also signed up for the Small Business Academy (SBA) run by the University of Stellenbosch Business School.

Tengwa was part of the first intake of 19 Khayelitsha-based business owners into the programme which is sponsored by the Distell Foundation and Absa.

“I signed up for the course because although I know a little bit about business I did not know enough to become successful.” Tengwa says that the academy completely changed her perspective on being a small business owner. “The course took out the fear of growing my business. It gave me confidence to think bigger. I realise now I can do anything,” says Tengwa whose goal is to start a chain of salons right across the Western Cape.

Through her experience on the course and working with her mentor Edith Kennedy, Tengwa has learnt seven valuable lessons which she has already incorporated into her business:

Branding

Tengwa has started focusing on creating a brand for her salons. “My second salon was done in different colours and I was using different products. Edith taught me to create a BG’s Hair Salon brand by using one product supplier and having the same colours and branding in both stores.”

Know your product

“It was important for Bulelwa to identify those products that were the most in demand and where she could make most of her money. She had to identify whether it was dreadlocks or braiding and then target her advertising accordingly,” says Kennedy. Tengwa has now focused her business on specific products and offers specials and promotions around them.

Know your market

Tengwa has learnt to identify her target market and how to market to them. “I was advertising in school newsletters to teenage girls. I then realised my market was professional women like teachers and nurses who had the money and wanted to look good”. Tengwa started advertising in the local newspaper and sends out SMS’s to regular clients as well as using social media such as FaceBook and Twitter to reach her market.

Create awareness

Tengwa opened her second salon in a new shopping centre as it was more convenient for some of her customers and she also realised she could tap into a new market. But business was slow initially and Tengwa was worried there was not enough of a demand, but Kennedy told her she had to build awareness. “People did not realise that the salon was there and that they could get their hair done whilst doing their shopping,” says Tengwa. With the help of Kennedy, she held a formal launch party over two days with music, dancing and food. “I invested a lot of money but within one month my turnover increased by 35%.” Tengwa also learnt how to use social media like Facebook and SMS’s to get the word out.

Have a plan

“To be successful you need a proper plan and strategy otherwise it is a waste of time” says Tengwa. Creating a business plan is integral to the Small Business Academy course which helps participants to put together a proper business plan including marketing, finances and growth strategies.

Manage your money

Tengwa used to just draw money out of the business as she needed it, but has learnt the importance of keeping business and personal money separate. “This is also something I have now taught my husband in his business,” she says. She now she draws a set salary and manages her household finances separately based on her salary. This gives her a far better idea of whether or not her businesses are making money.

Networking

Through the academy Tengwa has met other business owners in the area, creating a network of support. “We support each other and give each other advice,” she says. There are also opportunities to support each other’s businesses, for example many of them came to the launch of the new salon and helped to spread the word. One business owner has rented space in her salons to sell his health products whilst Tengwa sourced her stylists’ aprons from another course participant.