It’s better to delay a deal than to spend years recovering from it: Business strategist

Business owner and strategist, Sne “The Marketer” Mkhize,  is encouraging young and aspiring entrepreneurs to grow their brands steadily, stressing the importance of identifying red flags before signing any contracts.

“Many young entrepreneurs feel so intimidated starting out in the business industry that they are even ashamed to ask for help. I always say it’s better to delay a deal than to spend years recovering from it,” says Mkhize.

Mkhize is weighing in on the saga involving Bob Cuts Hair Salon owner, Geraldine Kganka, who is pleading for assistance as her business faces the threat of repossession by a network company she claims to have partnered with under a business growth plan.

Kganka, who previously went viral on social media after allegations surfaced that she failed to pay her salon staff for months, says a brand and strategy consultancy firm, Network HBBO, has repossessed all the furniture from her salons and is now threatening to strip her of what little remains.

Apparently the move was sparked by her refusal to make a second payment the company required from her, under the guise of it assisting with growing her brand.

Kgankga says the seven year long legal battle with the Network HBBO has now drained her financially.

“They took me to court for a contract that they misled me into thinking that it was a media plan to help grow my business. Now they are threatening me, saying I should hand over my salons to them. They have even blocked my account, had sheriffs remove furniture from all my salons and also threatened to make sure that I get blacklisted, they want to take all my cars and also make sure my kids never go to school. I need help,” says embattled Kgankga.

Mkhize, who is also a business owner, says many people sign contracts without understanding them, cautioning Yires to not ignore red-flags.

“It’s way too often that people sign contracts without understanding them, especially in the creative marketing and start-up spaces. Sometimes, we get so excited about growth that we actually ignore the red flags,” says ‘The Marketer’.

While Mkhize admits that collaboration within the entrepreneurial space is key, she says it needs to be done with mutual respect and transparency.

“The first rule is that don’t be afraid to slow things down. If you are being rushed and pressured into signing, just know that there is something wrong there,” says Mkhize.

She advises emerging young entrepreneurs to seek legal opinion before getting into any deal.

“Always get everything in writing and you must always take the documents to a professional. I understand that as a business owner, you don’t always have the capital to do that but use whatever professional platform or network that you have like a legal advisor or someone who does have experience in business contracts. Don’t just quickly sign because you are excited to collaborate or receive something from the other party. Also remember to trust your gut too; it sometimes feels too good to be true and you should trust that feeling inside you,” says Mkhize.

She also emphasised the importance of checking clauses before signing contracts.

“You need to check the ownership clauses. You need to make sure you are not signing away your brand, or your Intellectual property (IP) or the business itself,” warns Mkhize.

She adds that it is equally critical to know when a contract might require entrepreneurs to give out money.

“Look at your payment terms: when are you expected to pay? and what are you paying for? You must never pay large amounts without deliverables clearly outlined for you,” says Mkhize.

Mkhize says it’s also essential to understand termination clauses.

“Check the termination clauses. Can you walk away? What happens if the other party doesn’t deliver?,” enlightens Mkhize.

Mkhize’s business owning reality-check lesson doesn’t come single-handely as she elaborates on steps to be taken by  business owning Yires who have already fallen victim to business sabotage.

The experienced brand strategist told YNews that it’s important to speak out when faced with injustice.

“Firstly they need to speak out. The more visible the injustices are, the harder it is for others to fall into the same trap,” advices Mkhize.

She suggests that approaching legal aid agents or pro-bono attorneys for assistance is also a good idea, not ruling out the power of taking your story to public platforms.

“You can even go to radio stations like Y to help amplify such stories. It really does help,” says Mkhize.

Mkhize says young business owners are also at liberty to apply for contract cancellation if they feel they are being misled or manipulated into signing.

“It is just worth going all the way through every single angle to get yourself out of a sticky situation. You need to protect yourself even if it means going to regulatory bodies or consumer protection services. It’s hard but it is not over, and you should never suffer in silence,” says Mkhize.