Leap of faith proves one smart move
Mari van Rooyen’s passion for clients, solid work ethic put her funeral insurance venture on the path to success
SHE established her business within 20 hours of resigning at her previous job. Since then, Mari van Rooyen has prided herself on providing funeral insurance for lower income groups through eight branches of smartMI across the country – but her heart still lies in PE.
Can you give me some background on yourself and how the business was started?
I was born in Beaufort West and raised in Port Elizabeth, where I went to school and later obtained a qualification in public relations management.
My first experience in business was doing catering for a year after school.
After completing my studies, a holiday job turned into a 17-year adventure with many frustrations.
During this time I gained first-hand knowledge and expertise about the challenges of the funeral insurance industry. I also discovered my passion for clients and started to dream about servicing clients the #SMARTWay.
On 27 November 2012 I was finally pushed hard enough to walk away from 17 years of commitment without regret.
The next day I started my own business, smartMI, with a team of 18 who shared my passion. We opened our headquarters in Cape Town, with shops in Port Elizabeth, Beaufort West and Kroonstad.
Five years later, our team consists of 70 staff members and we have eight shops, including two in PE and one in Uitenhage.
What is your core service?
We are a financial services company with a core focus on micro insurance products for the lower income market. We hope to expand our product range in the near future.
Where was the idea born?
I’ve been involved in the funeral insurance industry for the past 22 years.
What makes your business unique?
It is important to us that our clients fully understand our products, before they enter into a contractual commitment. We do not push any hard sales and focus on having conversations with our clients so that they only buy when they are ready.
What are some of the biggest inhibitors your business faced?
Access to financing along with bureaucratic red tape.
The approval of business loans are still based on your personal balance sheet, as opposed to your business idea and expertise. We had several challenges that we faced in the first two years of business due to certain aggressive competitors with questionable tactics.
Do you have any tips for new business owners?
Find your passion first. Once you understand what it is that you want to do and why people would want to buy your service, base all your ideas and decisions on that original inspiration.
What is the best advice anyone ever gave you about success?
Before starting smartMI I walked away from an abusive situation in a previous business in the same industry. At the time a friend of mine (also a competitor) told me that I was privileged to have hit rock-bottom, as all successful people hit rock-bottom before achieving major success. This made me realise that I had lived my worst fear, [and] I could continue to live my best life.
What are some of the best practices that have made your business successful?
Our understanding of our clients, their needs and their circumstances. Our team members come from the communities in which they work and have a real passion and understanding for their clients.
What kind of advertising do you do?
smartMI is active on Facebook as we love engaging with our clients. SMS campaigns are also used to engage with clients and new leads, but our main advertising is via our marketing campaigns at each shop every month. Since small businesses never have large marketing budgets, it is vital to be creative in your approach.
Do you have any plans for expanding the business, and how would you go about this?
Yes, until now we have grown organically, but we have serious plans for expanding the business with a direct benefit to our staff. We have been working really hard on sourcing finance for this venture, and hope to be successful in the near future.
How did you acquire funding for the business?
I could not get a business loan funding from the bank, but was fortunate to have access to an overdraft facility, credit card, small access bond, two understanding family members and one understanding employee.
Once you had funding, what was the first step in actually launching the business?
ý I secured the support of a reputable underwriter and a team of people willing to start a new and adventurous journey with me.
ý Opening a bank account and completing the registration forms to start a company.
ý Registering a website, e-mail address and Facebook page. Then designing a company logo. Finding a premises and buying computer hardware.
This all happened in the first 20 hours from making the decision to start my own business.
How important has mentorship been to you in your journey as entrepreneur?
I think many more small businesses would thrive if they had proper mentorship. I have a few mentors that played a vital role in my business life over the years. My first boss, Michael Maas, taught me about perfection and getting the job done right, every time.
My late friend John Solomon, who was a true dinosaur in the funeral insurance industry, taught me how to read the law, interpret it and to ensure that you respect the spirit of the law as opposed to looking for loopholes. My friend Jim Brayson, who was the CEO of two different Insurance companies in his career, inspired me to believe in myself, my skillset and my ability to lead. I will always be grateful for that.