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January 10, 2020

As a startup, it is hard to know how to prioritise your limited time and funds. Furthermore, while you know your core business inside-out, you are often tripped up by all the other things that come along with business ownership. Lumec is coming up to 4 years in business so we did some reflecting, and came up with 4 things we wish we had known when we started. We thought we would share them here, so those taking the plunge into small business ownership can make good decisions from the start.

1. Take time to develop your brand

One of the first things every startup needs is a name, which is integral to your brand. We came up with a name after a few days of bouncing ideas around with friends – ‘Resource Research and Strategy Consultants’. It was a mouthful, no one could remember it, there was a competing business in our space that had almost the same name, and the ‘resource’ was confusing us with human resources and environmental resources businesses. Bad, bad, bad.

Our advice: if you don’t come from a marketing background (like us) we strongly recommend budgeting for a professional to assist with brand development. Take time when choosing a company name and ask everyone you see what they think of your potential name. You are going to be saying your company name A LOT – you need to feel confident and proud of it. But developing a brand is much more than just a name and a logo. Our brand consultants took us through the essentials of who we are as a business, what makes us different and what drives us. It was a highly beneficial process. If you want to read more about our brand and journey check out our about section on our website.

Don’t forget to check that your name has an available URL for your website and to reserve the name on the CIPC (Companies and Intellectual Property Commission) website/portal. 

2. Outsource support services

Similar to branding, we wish we had outsourced support services sooner, particularly, website development and accounting. We spent a lot of time learning WordPress and doing creative accounting and payroll in Excel in year one. This is a tricky one for a startup because whatever money is in the business is needed to keep the founders housed and fed for as long as possible while work becomes consistent. Furthermore, blindly handing over all bookkeeping in the beginning is not recommended – learning the basics is critical. 

However, website development can be outsourced fairly cheaply and even one accounting consult can get you up to speed quickly on what accounting programme is recommended and what the basic legislated requirements are for a registered business (hint: they are significant and can have hefty fines attached). It is also worth meeting with an accountant even before registering the startup to figure out what type of entity to register and what this may mean for taxes down the line. Several accounting and web development firms specialise in small businesses, are understanding and have good rates. SARS also have some good resources that are free. As you grow, you should meet more regularly with the accountant and hand over more responsibilities to avoid stress meltdowns (of which we had many). 

Note on points 1 and 2 above: Although registering your business is a hard-to-resist psychological step to small business ownership, it may be worth holding off until you actually have revenue. Part of us rushing the naming exercise was so that we could register the business and part of the accounting headache we experienced was because of registering the business too early. We see many startups falling into this trap. Registering a business does not mean you have a business, paying customers means you have a business. You can develop your brand and website, advertise yourself and get paying customers often all without being registered, especially as a consultant. As soon as you have income you can register and open a bank account within days. 

3. Set up sound internal processes from the start

Only 2.5 years into Lumec did we start to collect meaningful data on how we were spending our time. We now use this data, amongst other things, to see exactly: 

  • When we have exceeded our billable hours on a project and why, 
  • If we are working enough billable hours to cover our monthly expenses, 
  • If we are doing enough business development and staff development, and 
  • If we are spending too much time on admin. 

We use Clockify to measure our time, but there are other equally useful tools such as Toggl. There are several other monitoring tools that we have put in place from client queries to social media – the point is to determine your key metrics early and start tracking them from the start.

Another useful process was implementing Monday morning meetings where we discuss, divide and prioritise our tasks for the week, as well as provide feedback from the week before. Some businesses use Trello or Asana to manage tasks, but as a small business of just three, we find old fashioned to-do-lists work just fine for us. 

4. Be smart about your recruitment

In our first couple of years we required ad hoc work to be done. We reached out to our own networks and to the local university for recommendations and we temporarily employed several people but no one had the particular skills we were after. This cost us time and money. Based on this experience, when we decided to recruit a full time staff member, we knew we needed to conduct a rigorous recruitment process.

Our processes included a job advert on employment sites leading to a google form which was used to shortlist candidates. We then asked for CVs from the shortlist which were used to further refine the list. We did personality tests, interviews and writing tests for the top 10 candidates and our final choice we interviewed a second time. This process took at least 2 months but it is one of the best ways we have spent our time in our four years. We wish we had used a more rigorous process for hiring even temporary staff right from year 1.

This blog is the first of a series of posts we will be sharing to assist the startup business. Look out for future posts on funding, business planning and others here and follow us on Facebook and LinkedIn (@lumecsa) to get other related updates and information.


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November 11, 2019

In part 1 of this blog, we briefly introduced the fourth industrial revolution within the context of the preceding revolutions, unpacked exactly what the 4IR is and touched on some of the challenges faced by South Africa with regard to the changes that the 4IR will bring. In part 2, we focus specifically on jobs and skills in light of the technological changes we are experiencing. The information in this blog is largely sourced from the Accenture Consulting report titled ‘Creating South Africa’s Future Workforce’. 

A common concern raised when one talks about the 4IR is “the machines are going to take our jobs”. And yes, this is true for a number of professions. Accenture Consulting notes that 35% of South African jobs are at risk of total automation as machines can perform 75% of the required activities. As technology progresses through advancements in areas such as artificial intelligence and machine learning, jobs that comprise of more machine-like activities (routine work, transactions and manual work) are at greater risk than those with greater human-like activities (analytical, leadership, social intelligence and creativity). Essentially, the more repetitive and predictable tasks that a job requires, the more the tasks can be replicated by machines. As such, occupations at highest risk of automation are “production, office administration, farming, food preparation, construction, mining, transportation, installation and maintenance”. Jobs that are harder to automate include tasks such as “influencing people, teaching people, programming, real-time discussions, advising people, negotiating and cooperating with co-workers”. 

Essentially, we need to reduce the potential threat of jobs being replaced by machines and leverage opportunities that are presented to create new jobs via machine-human collaboration. In order to achieve this, we need to learn new skills to better collaborate with technology in order to enhance their productivity and ingenuity. As Accenture puts it, “we need to learn to run with the machine”. This statement, as futuristic as it sounds, is based on research that shows that artificial intelligence does, in fact, have the potential to boost labour productivity by 40% by 2035. Essentially, we need to focus on a shift towards more human-centred skills and increase the pace at which we embrace digital technologies. However, the same research indicates that South Africa, at our current pace of learning, will transition towards the required skills at a slower pace than the rest of the developing world. Ultimately, we need to double the pace at which we acquire skills or face the imminent threat of losing 5.7 million jobs to automation.

“By embedding AI and making it a factor of production, this research indicates that South Africa could potentially double the size of its economy five years earlier”

So, what can government, industry, organised labour and educational institutions do to ensure that we start to rapidly increase the pace of learning and avoid the massive job losses that are predicated? The role of government is primarily around the creation of a conducive policy and regulatory environment while also providing access to infrastructure, connectivity, skills and incentives. Industry, on the other hand, needs to invest in technology to enhance efficiencies and drive re-skilling initiatives, while industry associations need to continue to drive research and discussions around digital advancements. Educational institutions need to pioneer new systems to allow for learning across the various stakeholders (between industry, government, NGOs, research institutions, etc) while organised labour needs to accept the potential that digital technologies provide and assist prepare the next generation.

So, next time someone says “the machines are going to take our jobs”, we suggest responding by saying “not if we learn to run with the machine”.


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October 3, 2019

These days, you cannot avoid hearing the term ‘fourth industrial revolution (4IR)’. In almost every project we do, we are told to make sure we incorporate the 4th industrial revolution and its impact. We’ve been doing a lot of team training on the 4IR and have become quite familiar with what it is all about, the potential opportunities that are presented, and the major threats, especially in relation to jobs. In this 2-part blog, we briefly unpack what exactly the 4IR is, highlight some examples of how the 4IR has already been embraced globally, and some risks that we face in South Africa. 

Before understanding the 4IR, it’s important to provide some context to the preceding industrial revolutions. The First Industrial Revolution occurred in the late-1700s until the mid-1800s and saw a shift from an agrarian to an industrial economy, mainly thanks to the invention of steam power. This introduced industrial mechanisation and steam-engines, which stimulated manufacturing (particularly textiles and steel) and transport via railways and steam-powered ships. At the end of the 19th century, electricity brought about the beginning of the Second Industrial Revolution which saw the introduction of the assembly line and mass production. In the mid-90s, just less than a century after mass production started, the Third Industrial Revolution began, fueled by electronics, computers and automated manufacturing processes. This is often referred to as the ‘digital revolution’. So what then, is the Fourth Industrial Revolution?

The 4IR can be described as a merging of the digital, physical, and biological worlds through the emergence of “extraordinary technological advancements”. Essentially, it includes disruptions caused by advancements in robotics, artificial intelligence (AI), virtual reality (VR), automation, machine learning, 3D printing, big data, and the internet of things (IoT). These technological advancements have and will continue to change the world around us, especially when used in conjunction with each other. Globally, industry has already started to transform processes and adapt to opportunities presented by these advancements. The most evident examples exist within transportation (e.g. automated vehicles), logistics (e.g. warehouses operated by robots), manufacturing (e.g. additive manufacturing/3D printing), and the services sector (e.g. augmented reality to view properties and holiday destinations via estate and travel agents respectively).

Within South Africa, the 4IR presents significantly more challenges than opportunities, particularly in relation to the provision of enabling infrastructure (i.e. broadband and communications technology) and education and skills development. Should we not be able to provide enabling infrastructure and develop a sufficiently skilled workforce, we face the risk of technology-driven employment losses. A recent report by Accenture Consulting titled “Creating South Africa’s Future Workforce” highlights that although digital technologies bring about efficiencies, for countries that are less prepared, such disruptions may cause greater job losses than gains. The report indicates that 35% of all jobs in South Africa (equal to almost 5.7 million jobs) are currently at risk of total automation. This can, however, be reduced to 20% of all jobs (or 3.4 million jobs) should we double the rate at which we currently provide skills to the workforce.

Part 2 of this blog provides an overview of the key findings of the Accenture research, focussing specifically on the professions most at risk, new skills required to unlock the potential advantages presented by the digital economy, and the actions required by government and industry to ensure that the workforce is sufficiently prepared.


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August 28, 2019

In Part One of this tuna inspired blog, we framed the problem of canned tuna:

  • Not a single can of tuna on Spar’s shelves contained tuna sourced in South Africa, and 
  • Most of this tuna is SASSI red listed

We also discussed the current methods of catching tuna, namely, hand or pole fishing, netting, fish farming and artificial fish farming. In Part Two we consider whether entering this market is plausible in South Africa.

Tuna is one of the most profitable types of aquaculture. This is especially true of bluefin tuna, which supplies the sushi industry. Therefore, Tuna is one of the most popular and globally traded seafood products. Globally, tuna quotas have been met, in fact, the relevant bodies are currently considering how to lower quotas. This means that supply is likely going to remain flat, while demand continues to increase, especially for bluefin tuna. Which means that there is going to be a significant gap in the market opening up where tuna prices are likely to increase and demand for artificially bred tuna will rise. 

If South Africa were to step into this gap, we would need to invest heavily in aquaculture technologies currently being utilised in Japan and the USA. Already, South Africa is home to several freshwater and saltwater fish farms, including aquaponics plants, and is home to some of the leading fisheries scientists in the world. Furthermore, the funding of aquaculture has been prioritised with relevant Development Funding Institutions (DFIs). The first local Aquaculture Finance and Investment Seminar was successfully held in March 2019. 

It seems, therefore, that the capacity and funding stores may exist in South Africa but given the niche status of artificial tuna farming, this may not be the most effective use of this capacity, despite the potential returns. We have the additional challenge in South Africa of rough sea waters – harbours would need to be utilised or built for successful farming. Furthermore, the quick win would be in farming tuna for the sushi market where margins are high, not the canned tuna market. Upon writing, the most expensive shredded canned tuna on Spar’s shelf was R18.49 and the cheapest was R15.99. This is the band within which farmed tuna would need to stay if it were to be purchased by the mainstream consumer. 

There is evidence that sustainable products are being purchased at a higher growth rate than unsustainable products, especially amongst millennials, but this evidence is from high-income countries. The willingness of low to middle-income consumers to pay a premium for sustainably sourced products is yet to be proven. Interestingly, in South Africa, Woolworths shoppers are paying a premium for sustainable, locally sourced shredded canned tuna – upon writing, this premium was R5.50.

So, to answer the questions we started with,

  • Why are we unable to compete with Thailand on this product? It seems that we may not want to from a sustainability perspective. Furthermore, quotas are being reduced, which means that there likely isn’t much opportunity for new market entrants.
  • Would the market be willing to purchase locally sourced canned tuna at a mark-up? Possibly. They already do from Woolworths. However, this would likely be the smaller, higher income bracket. 
  • Is this an industry that has the opportunity to grow our local economy, without any negative impact on our ocean ecology? The percentage of pole and hand fishing licenses that are currently being utilised in South Africa would need to be determined – if they are being underutilised, then there is scope for growth, however, this is capped. There is little scope for growth for large scale commercial fishing and farming due to quotas and high barriers to entry. There is room for growth in the implementation of artificial tuna fish farming, however, this would likely require significant investment and the willingness of major global players to share their intellectual property. Furthermore, this fish farming technique does create waste, so the impact on ocean ecology would still need to be considered.

We would welcome any experts or data that could confirm or refute our conclusions, which are based on high-level, secondary research only. 

At the end of the day, if locally sourced, sustainable canned tuna isn’t feasible, we could always consider growing tuna in a lab or tuna that isn’t tuna at all

Additional reading on the status of South African aquaculture here.



June 28, 2016
  1. Not incorporating strategic plans as deliverables across the organisation;
  2. Not including relevant stakeholders in the development of the strategy;
  3. Too much of a focus on infrastructure over soft issues;
  4. Not getting buy-in from related government departments; and
  5. Not being flexible enough in planning scenarios.

…are the five most frequent strategy errors made by ports across the globe, according to Port Economics associates, Peter de Langen and Jonas Mendes.

South Africa’s port strategy is the responsibility of state owned entity, Transnet, and its port division, the National Ports Authority (NPA). The National Development Strategy is conducted every five years and results in the Port Development Plan (PDP), which is completed annually and has a planning horizon of 30 years. From my experience working with the NPA on their strategy in 2012/13, the common mistakes identified by de Langen and Mendes resonate with me to varying degrees.

The two most important mistakes made by Transnet and the NPA is using the strategy purely as an infrastructure development tool and excluding vital stakeholders from the process. The NPA is in the business of building port infrastructure, therefore, while all outcomes of the strategy were not infrastructure related, only those that were infrastructure related were able to be reflected in the Port Development Plan. The Port Development Plan is a set of maps and an investment plan. All other suggestions around policy and the environment fall away, not through prioritisation, but by the nature of the planning outcome, which is an engineering outcome. I believe that there are effective tools and measures in place in Transnet’s head office to incorporate environmental outcomes into deliverables but the two processes never meet in the strategic phase, which brings me to the next failure – that of not including vital stakeholders in the process.

No external stakeholders were included in the strategic development of the PDP, until the plan was completed and a roadshow was conducted. There is little accountability with regard to how the comments received from roadshows are included in the plans. Perhaps worse, was the lack of internal engagement on the strategy. Final plans were presented to the executive committee of NPA and then Transnet without buy-in being created as the executive was not included in the development of those plans. This leads to lack of implementation and duplication of efforts. The same can be said for Transnet’s plans being made in isolation of the NPA. The entity is not good at consultation, internally or externally.

Despite these mistakes, South Africa can be proud that it does not always fall into the trap of inflexible planning. The demand forecasting techniques developed by Transnet do include an enormous amount of flexibility and do account for external factors. Transnet’s project factory also verifies demand on a project by project basis. Furthermore, Transnet and its port division, NPA, have been able to attract and retain excellent staff who are committed and experienced. With the correct engagement processes, better internal synergies and tools for creating non-engineering deliverables, the National Development Strategy could be substantially improved.

Read the full article from Port Economics here.