Meet the former egg seller who made millions by shining shoes
October 27, 2014 -- Updated 1045 GMT (1845 HKT)
STORY HIGHLIGHTS
- Lere Mgayiya spent five years working for South Africa Airways
- He worked with livestock on his family's business
- Winning the Sandlam Money Game on TV led to a quick cash injection
- Now, his shoeshining business has 45 staff and turnover of more than 2.5 million rand
Every week, African Start-Up
follows entrepreneurs in various countries across the continent to see
how they are working to make their business dreams become reality.
(CNN) -- Suede slip-ons, elegant high-heels or
lace-up brogues -- whatever shoes you wear in an important business
meeting you want to look your shiny best. Some people apply polish with a
brush and others choose a cloth, while those coming from afar often
leave the task to the capable hands of craftsmen who can make
travel-worn footwear look like brand new.
If someone has shined your shoes in a South African airport, it's probably thanks to Lere Mgayiya.
"We're the biggest
shoe-shine company in Africa," he explains without sounding arrogant.
"In Johannesburg we shine about 350 pairs of shoes a day, and about 120
pairs in Cape Town and another 120 in Durban." In total, Lere's Shoe
Shine business has 45 employees across the three major airports, and the
boss is now eyeing partnerships in America and UK, as well as expansion
across Africa.
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On this particularly day,
Mgayiya, 40, is wearing Clarks -- black slip-ons. With annual revenue
nearing 2.5 million rand ($227,000), his demeanor resembles his feet --
comfortable.
But things weren't always
on such a sure footing for Mgayiya. The resourceful South African had
to go through a string of failures to get to where he is today -- a
spectacular entrepreneurial journey of risk, belief and reward.
Airborne beginnings
Long before becoming
South Africa's shoe shining king, Mgayiya started his professional
career distributing boarding cards for South African Airways. But after
five years with the airline and a promotion to supervisor, Mgayiya was
made redundant. "I wasn't ready to leave," he recalls. "If the truth be
told, I was afraid -- it gave me a push."
Mgayiya stopped handling
paper and joined the family livestock transportation business. "I
enjoyed being out and about," he says, while explaining his role
negotiating with farmers. "I enjoyed setting my own goals and achieving
them."
But life in a family
business wasn't all plain-sailing. When Mgayiya suggested taking a loan
and securing exclusive contracts, his uncle asked him to move on. After a
year, he was jobless again.
Failed attempts
His mother's brother
took away his job, but Mgayiya kept in contact with his farmer clients
and soon embarked on his next project: selling the farmers' eggs to the
kitchen of the South African parliament. Making just $6 profit per egg
box, this however was not a lucrative operation. "I fell behind with
payments to farmers," he remembers. "I didn't have money to start my
car. You need big pockets to run a supply business."
When his chips were
down, Mgayiya stayed optimistic and entered the Sandlam Money Game -- a
TV competition for entrepreneurs. Marketing execs at Red Bull liked his
advertising idea, and Mgayiya won the game. "I got 35,000 Rand ($3,100)
in two days," he says. "It was great."
A hungry man can't think, and I was starving.
Lere Mgayiya, Lere's Shoe Shine
Lere Mgayiya, Lere's Shoe Shine
He took that money and
invested it all in a tree-planting company which he then started working
for. But six months later things went sour, and Mgayiya was penniless
again and back at square one.
Mgayiya had already
experienced hard times, but the year to come was to test his resolve. "I
needed a steady income, so I decided on a shoe-shining business at Cape
Town airport. A hungry man can't think, and I was starving."
He got in touch with his
contacts from his airline days and applied for the business space in
November 2002. The authorities took until September 2003 to give him the
go ahead. "In that year I sold my car...I worked as a receptionist for
three months. I begged and borrowed just to make ends meet."
Business beginnings
Before he could start
shining shoes, Mgayiya pawned his fridge to buy business equipment. But
on his first day Mgayiya and his sole employee arrived to bad news. "The
supplier I had paid to provide pedestals failed to deliver," Mgayiya
remembers. "I polished shoes in my lap."
When starting a business in South Africa, you need self-belief.
Lere Mgayiya, Lere's Shoe Shine
Lere Mgayiya, Lere's Shoe Shine
In the beginning, both
staff members worked flat out 5am to 9pm every day of the week except
Sunday. "I left the house before my family woke up, and only got home
after my young daughter had gone to sleep," he recalls. "It was tough."
But customer numbers
soon got a boost after a client suggested that the business name should
highlight the personal, chatty aspect of the business. "Airport
Shoeshine" became "Lere's Shoe Shine," and people liked it -- after just
four months. the team had grown to five and business was booming.
Big plans
Success in Cape Town
didn't cool Mgayiya's ambition, and after a year he got a chance to
pitch to the person in charge of all South African airports. She liked
his idea, and expansion started soon after. At its height, the company
had 60 employees in five airports across the country. Today, Mgayiya has
scaled back to the three major ones: Cape Town, Durban and
Johannesburg.
"I have my own house and
send my daughter to private school," he beams. "And I could afford to
get married -- a proper marriage." He no longer works from 5am to 9pm
either. "I just do the one shift from 12," he says, laughing. "The
family loved that one."
"When starting a
business in South Africa, you need self-belief," is his top advice for
young entrepreneurs. "All the conditions will never all be favorable at
the same time. If you don't start, you won't go anywhere -- you have to
start."
While he's under way
now, Mgayiya shows no signs of stopping. He has his eyes on Angola,
Kenya and Nigeria for expansion, as well as partnerships in U.K. and
America. His shine for business may have emerged from a number of
failures, but this entrepreneur shows how smudges and setbacks shouldn't
get in the way of success.
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