Secha Capital 4Q2018 Update: Reading a Map vs Driving the Car — Growth & Lessons

“Just because you can read a map, does not mean that you can drive a car.”

It’s an analogy that entrepreneurs often use to explain a different perspective to investors or board members. From the outside, the map — strategy, the long-term, big picture — is paramount, whereas driving — operations, the details in the day to day — often gets overlooked.

At Secha Capital, we may not drive the car, but we are beside our operating companies, in the front seat. When we invest, we design the map together, the where to play and how to win. We define the key initiatives over the next 100 Days and then nine months. The map becomes a crucial guide, but it is not sufficient. What’s most needed to drive this car is an Execution Manual. supporting our operating companies, one lesson at a time.

We often say that the operational model at Secha creates a “Secha Flywheel”. We execute better, faster with every investment, every success, every failure. These lessons help build the Execution Manual (a few examples):

Any MBA worth his/her salt understands a cash conversion cycle, but it’s even more helpful for an SME to access invoice discounting or to focus on faster pay-back period sales channels. Or take profit margins, a strategy consultant encourages SKU optimisation based on the cost bar. The Execution Manual adds to that the keys to trade spend negotiation and buyer relationships. Lastly, sales: The importance of a good sales rep or team cannot be overstated, but we’ve found that over-investing in the hiring and on-boarding process is vital. An SME cannot afford, financially or reputationally, to have a revolving door of sales reps.

Thus, it is in the details of day-to-day execution where we are gaining the most insight to help our current and future operating companies. And unlike most manuals, this one will get “read”, as we are in the car with them, in each stage of the journey.

Please read below to get an update on the manifestation of said lessons. We are closing investment number four, each operating company has experienced growth, with additional good news to report, Secha has welcomed and a few more interns and we have a partnership with The Jobs Fund to announce.

If this is your first newsletter from Secha Capital, please see here and here to read past newsletters. And if you would like to help the team, we are very keen on finding SMEs in the mass market (aka traditional trade) in which to invest. Here’s an intro we often share with entrepreneurs.

Again, feedback is welcome. Have a great week!
Rushil & Brendan

P.S. We are always on the look-out for great interns! See the alumni page and summary of the opportunity!