Rags to Riches: Lere's shoe shine experience

Written by Brendah Nyakudya
Tuesday, 04 October 2011 14:56

When Lere Mgayiya’s ambitions of being a pilot were destroyed, after an unfair dismissal, the future looked bleak, with no hope of securing permanent employment. But, as with most things in life, what started out as a misfortune turned out to be the start of the rest of his life as it was then he found his “inner entrepreneur” and started Lere’s Shoe Shine Experience. Since then he has won the Sanlam Money Game a programme that pits budding entrepreneurs against each other to see who can make the biggest profit in three days with R30 000 and in 2004 he was also national runner-up in the SAB Kick-start Competition in 2004, a youth focused programme aimed to stimulate sustainable enterprise development... And that’s just been the beginning.

Where did you grow up, and what have been your biggest influences?


I was born and raised in Cape Town. I actually grew up in a family of entrepreneurs, so one would assume that is how the bug bit. My father’s family owns a fleet of taxis, and my mother’s family runs a livestock distribution operation. But funny enough, when it came to choosing a career path, starting my own business wasn’t my first option. I had other aspirations.

What was the biggest obstacle you encountered when it came to employment?


Unfortunately my colour was the biggest hindrance. While I had a great attitude, I’m black, and I feel had I been white it would have been easier to find gainful employment. But I didn’t let that get me down. I managed to still gain training and practical experience, which proved very useful in my entrepreneurial ventures.

So how did your own business come about?


I wanted to be a pilot, but I was unfairly dismissed despite loyalty and dedication I had given to the job. This made me realise I would struggle to find employment again, so I pursued being my own boss. As they say, the rest is history.

Why the shoe shine business?


It wasn’t my first choice. Not at all. I tried a number of ventures that failed and cost me a lot of money. I was at a very low point in my life when by chance I noticed a shoe shiner plying his trade at Green Market Square – that piqued my interest. I went home, did the sums and realised there was good potential for this venture to work and grow and that the airport would be the best place to have my shoe stands as it would guarantee foot- traffic every day.

How did you make shoe shining such a successful venture?


It has been a long road. The first thing we did was to conduct research in order to get more facts and a better understanding of our customers and their needs. From there we took the time and effort to build a sizeable customer base. Once the customer base was solidified we built a solid team. We created and built up a user-friendly selection structure and a succinct training model that we could use to recruit and educate the staff we would deploy to the various stations. Our first base was in Cape Town, and we used all the cash flow that came in from there to expand to Johannesburg, Durban, East London, Port Elizabeth and George.

How is the business doing now?


The business is going well, thankfully. The nature of it means we get a constant flow of customers, and it has translated into strong cash flow. Our work ethic has fortunately given us dedicated staff members. There are very good growth prospects.

To what do you attribute your success to?


Most importantly you have to have a good learning ethic. Being eager to learn will stand you in good stead as people will give you good advice and tips that will prove golden. Finding mentors who can walk this road with you and instruct you without fear or favour (good listeners, in other words) is key. Creativity allows you to see the opportunities where everyone else sees the challenges, and determination will see you through the tough times when no money is coming in and you feel like giving up.

What can government and the private sector do to help self-starters?


The first thing they should invest in is a mentorship programme. Having such an institution in place will equip young entrepreneurs with the much-needed skills and character traits that will turn them into successful business people. School entrepreneur projects are also sorely needed. These should aim to identify young talent and nurture it to fruition.

When it comes to unemployment, how much blame can be placed at the feet of government and the private sector? Can it not sometimes be attributed to individuals lacking a go-getting attitude?


You know, the unemployment problem has a number of components, which makes it a very complex issue. Factors that come into play include apartheid education and the current economic structure, which is very unequal; government economic structures and policies that make it hard for start-ups to succeed; private sector efficiency structures; and advances in technology. All these components combined are to blame for unemployment – there is no one isolated factor.

People out there are motivated. No-one wants to be unemployed without any hope for the future, but they have been rendered powerless. In some instances, people just haven’t come to terms with the fact that they have no choice but to be self-reliant and are still looking to someone else for a solution.

Any tips/lessons you have learnt that you would want to share with budding entrepreneurs?


I think people need to realise that growth is both an advantage and a risk if it’s not properly managed. It’s important to have people around that can assist self-starters to deal with this.

In retrospect, is there anything you would have done differently?


Yes [laughs]... I would have taken time to think more, and I would have been a bit more cautious in my dealings.

What are you working on at the moment?


A social venture that provides showers for those who work and live in and around taxi ranks. These showers will be for taxi operators, hawkers and commuters alike. It’s an opportunity to give back and provide a much-needed service to the community.