Pivoting At The Right Time Is Key To Growth
How 28-year-old Adam Fine launched his startup with R85 000, and today is poised for massive growth, with the business tripling in size over 18 months.
- Player: Adam Fine
- Company: Fives Futbol
- Established: 2011
- Visit: Fivesfutbol.co.za
Nothing about Adam Fine is by-the-book. The 28-year-old entrepreneur describes himself as a slightly big child. He's the CEO of one of the most exciting start-ups in South Africa, having leveraged the global phenomenon of five-a-side football to start a business that has grown almost as fast as the game itself.
Not bad for a venture that was launched with the princely sum of R85 000 — Fine's life savings at the time. He started it in 2011, with a strong focus on corporate social investment and making a positive social impact.
It was by forming strategic partnerships that Adam really managed to grow Fives Futbol. He's opened pitches in prime locations that serve both the school and corporate markets, while still being accessible for social impact interventions in local communities.
Adam's Growth Challenge
In the last 18 months, Fives Futbol has trebled in size, and achieved some amazing milestones — it now employs 50 full-time staff, and 80 part-timers. It's one of the factors that drives Adam, as many of his employees support up to eight family members. It's now also represented in four provinces and 15 locations around the country. By September, there will be 18.
Quick growth means you have to be able to pivot quickly when things do not go according to plan, and mostly they don't, Adam says.
"If things are not working you should be able to "pivot', to shift your focus. And do it fast. It's not a sign that things have gone wrong by any means, on the contrary, it means you have the insight to recognise that there is a problem with the assumptions on which you have built your business model.
"The decision to pivot is a big one, and not something to be taken lightly. It requires you to take a hard look at your reallocation of resources, and to do it with an open mind."
Finding a Solution
In Adam's case, construction delays, councils taking their time to approve, or having to put money into rolling out sites as opposed to marketing, means the promotion of a new site will slow down, for example, because the business does not yet have a large marketing budget.
"When we run behind on the construction of a new site, R40 000 can suddenly become R100 000 — but here's the thing: If a deal comes along that will probably harm your business in the short-term but enable significant long-term growth, sometimes you have to juggle what you have so you can make it work."
Lessons In Choosing Investors Carefully
Fine says he's lucky to have a solid group of investors that he has cultivated over six years. "Their input is invaluable. They'll say, "slow down' or "have you thought of this?', "have you factored in that?' The ability to develop a good relationship with our investors has had a significant impact on the success of the company. Over and above money, they provide wisdom, guidance and connections."
His relationship with his investors is key. While many entrepreneurs make it just about the money, Adam understood something else — he has a pretty cool brand with a great cause behind it. So, while investors are asked for money all the time, he was able to offer something more than just a business idea — alignment.
He generated enthusiasm for the "why,' behind the business. Like most of us, it makes investors happy to know that they are helping to make a positive difference.
And while it's easy to bandy about the word "partnership', Adam has worked hard to make that a reality. He set out to find like-minded people who are passionate about the business and the cause, which is why they are able to serve as great resources for advice and insight.
"The best way to ensure that you and your investors have a valuable and lengthy partnership is to make sure that everyone is aligned on the vision."
This includes Adam's team. The internal culture of an organisation is vital to its strength and growth. "Without our team we don't have a business for investors to support — our people are critical to our success. They're the executors of the vision at the end of the day."
The Value Of Strategic Partnerships
Much of the growth of Fives Futbol has been fuelled by finding the right sponsorship partners in key industries. To overcome the challenge of a limited marketing budget, Adam has secured sponsorships with big brands like Adidas, Total Sports, Debonairs, and Klipdrift, allowing Fives Futbol to use their access to communities as a marketing platform to derive income as well as scale. And it works both ways.
"Because we have a national footprint and a team of people, we run activations for our partners, which also provides us with an ancillary revenue stream," he says.
"Knowing how to join forces with other businesses has been a key factor in making the business successful."
"Our strategic partners have enabled the business to leverage their brand to give us more exposure. When it works well, a strategic partnership can be just what you need to speed up the growth of your business."