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DR

ING BIG
MAKING IT HAPPEN
A combination of hard work, dedication and innovation has enabled two Cape-based entrepreneurs to grow a business and sell it for more than 40 times the original value of their investment - R126 million to be exact.
BV I'IONIQUE VERDUYN
PI{OTOS BY BEVAN DAVIS

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THREE STEPS TO HIGH-IMPACT GROWTH

WHEN ROB SUSSMAN AND
LANCE

FANAROFF FOUNDED INTEGRS IT IN MARCH 2OOl in the wake of the dotcom crash, they each invesied R15O 0O0 to get it off the ground. Although they were fired up by thelr passion for

technology and enabling

it to work better for

customers, neither of the two high-impact entrepreneurs had any idea they would grow IntegrS

into the largest privately-owned ICT company

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ENTREPRENEURMAG.CO.ZA JUNE2O]3

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in Africa. Exactly 12 years later they sold it for Rl26 million to the country's largest publically traded technology company, the Business Connexion Group (BCG), ln a cash deal. Both remained on board as joint CEOs. Sussman says many high-growth businesses have two people at the heim. "We've had a very successfui partnership because we brlng different things to the company, while sharing the same core values of integrity, honesty and hard work. lt can be extremely difficult to achieve as much as we have in such a short time, and I believe we did it because of the strength of the partnership. Business is tough, and to have someone with whom you can share the burden and the wins makes all the difference. When you're working late and travelling all over the country, it's great to have a friend by your side." The partners have created hundreds of jobs along the way and generated millions of rands in Tevenue. Their story is inspiring because it reveals exactly how powerful entrepreneurship is
as a force for sustained economic development.

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risk is so great because it's about creating a new

market.

Sussman says that in a rapidly changing world, it's not the biggest companies that will succeed, but the fastest. "Constant innovation
and change are required in line with what is happening outside of the business," he says. "You

can never take your eye off what your competitors are doing and where the market is moving." He says IntegrS has always had in place a twoyear roadmap for the business, and that the company tries to obsolete its own model before the market does because lagging behind is fatal. "Our people spend about 1O% of their time looking at new ideas and new projects. When they bring these to us, we evaluate them and if the proposition makes sense, we implement. We don't wait for days, weeks or months. We look at it and we make a decision. Never allow bureaucracy to stif Ie a great idea."

into the African continent, and to eventually

internationa ise.
I

"We don't come from wealthy families," says

an electrical engineer by profession. "No one gave us money to start the business, and we could not borrow it either. We scraped togeiher a total of R300 00O and we shared a room whlle we were working on it in the early days. Lance is married to my sister, which means that our families are close. Whenever we travelled to Johannesburg for business, we would stay with family members and borrow their cars to get around. We kept our initial expenses very,
Sussman,

of the Business Connexion Group, we are listed as a multi-billion rand enterprise," says Sussman. The deal with Business Connexion, a Ieading black-owned ICT services
single organisation with 7 OOO highly skilled employees who witt be delivering services from the mid-market corporate to enterprise space across Africa. Sussman and Fanaroff have held onto the
various other businesses in the IntegrS group
including fax, telecoms, property and asset fiand will change the name of the group now that the lT business is owned by
nance companies

"Now, as part

al
f /f .-

Find a killer differentiator

lt's not the services IntegrS provides that differentiate the company, but the way it

provides them.

provider, creates

"We are the owners, lnnovators and operators of the only'Nerve Centre' on African soil," Sussman says. He describes the Nerve Centre as
the nucleus of Integr8's lT management offering. Based in Johannesburg, it's a hub built on some of the world's best technology. lt gives the company's engineers access to clients' ICT systems and enables them to conduct running repairs,

very low and ran the business extremely lean. We built it strictly from the ground up, and that initial investment was the only personal money we ever had to put into it."

security updates and remote audits to ensure

optimal operations. "Designing the Nerve Centre was key, as it has allowed the business to scale. When your business is privately owned and has no financiat backing, you have to be very careful with every bit of money you make and use it as smartly as possible. As we got more clients, we needed more people. The key question was how to build our customeT base without having to employ more people as this would raise our costs. The solution was to put our best people in a purpose built technical hub where each one of them is able to look after multiple clients over the Internet. Instead of placing employees on-site at the ciients' premises, which is far more expensive, we leveraged technology. We needed a network to manage clients so we used the lnternet. This had never been done before in South Africa, and it's what allowed us to scale rapidly. Sussman says he and Fanaroff knew that companles like theirs would be unable to grow

Business Connexion.

I Always focus on innovation

I I I
Sussman points

The business has been characterlsed by exceptional growth since day one. "We re-gear and restructure the company every few years to accommodate the next growth spurt and as a result we are able to continue growing," says Sussman. "With the experience we have gained over the past decade, we can scale the business a lot faster today. lt's critical to place the right people in the right positions - the most difficult part has always been the people - technology
is easy."

out that the business

has

had a strong focus on innovation from day

one. lt's a claim many business owners make, but what does it actually mean? lnnovation has been

defined as the process of translating an idea or invention into a product or service that creates value oT for which customers will pay. The idea has to be replicable at an economical cost and must satisfy a specific need. In business, innova-

Looking ahead, the company aims to penetrate the public sectol to continue to grow

tion is usually the result of ideas being applied by the company to satisfy the identified needs and expectations of its customers. lt's no secret that innovation is synonymous with risk-taking: The

"We like to see ourselves like Faeehook or Google they are deeply serious businesses, but they have an energy and a carlture that makes people r$ant to be employed by them."

without a platform in place. They had spent a Iot of tlme evaluating the systems and tools that other companies were using, documenting
where they were falling short, and then building

their solution on top of that. Today, this digital

JUNE

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2013 ENTREPRENEURMAG,CO.ZA

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"tllith the experience we hase gained cver the past decade, urre can scale the husiness a lct faster today. It's critical tc place the right people in the right positions the most diffiflrlt part has always been the people

technology is easy.o'
entrepreneurial business corporatises immediately, but as additional clients come on board and enable you to do so as a result of growth. You can't corporatise too qulckly as you risk hindering the

hub manages and regulates the ICT environment of many of the country's leadinq corporations.

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Corporatise the business 7 \rne concepl of corporatisation is a dirty

one in many entrepreneurial circles, but

spirit of a start-up."
Corporatising, says Sussman, is quite simple. It's about acting professionally and havlng the
systems and controls in place that make business
sen se.

Fanaroff insists

that corporatising IntegrS

was

what prepared the company for growth and ultimately for its acquisition by the Business
Connexion Group.

Essentially,it's the process oI structuring an organisation to reflect the structure of a publically owned corporation and giving it the features

"That's why, when the Business Connexion Group came to see us, they saw a professional, well managed business that was structured and
orga
n
i

sed."

ot a large commercial business. ls it possible Lo corporatise and still maintain entrepreneurial f lair and f lexibility? Sussman says it is. "We grew the business from the ground up, and we have
always focused on maintaininq an entrepreneur-

He's keen

to point out,

however,

that Integr8

has a young, fun culture. "We like to see ourselves

like Facebook or Google

they are deeply serious

businesses, but ihey have an energy and a culture that makes people want to be employed by them.

ial and innovative culture, but we also knew that it was essential to put in place controls, process and good goveTnance to enable the business to 'grow up' properly. We don't advise that an

think that's one of the reasons why we have CVs pouring into the business. As an organisation, we have a great reputation and people want to be a part of what we do."
I

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From CEO of Google Af rica

Quick, easy and rnexpenstve

to disruptive entrepreneur, he's set his siohts on some of the world's hinnost nlavors

from two entrepreneurs who sold their business to SA's largest listed tech company for R126 million

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