ast week, we looked at the impor-tance of defining the right structure

for your business. This week, we will look at structuring your management team.

“As a young entrepreneur, your task is really to be a visionary and motivator to your team,” Wilson states. “Starting and running a business will mean that you have limited resources at the early stages and how those resources are used will deter-mine the survivability of the business. As a CEO, what you want is simplicity, ac-countability and performance. It is best to start out with a small, cost-efficient team. As the visionary and motivator, it is up to you to keep the team members focused on the bigger picture while still achieving the short term goals of the or-ganization. Keep the team motivated and ensure that each team member works to always achieve his respective goal within the company.”

Wilson also advises creating a flexible cor-porate structure, especially in the early stages of your business. “Having a flex-ible corporate structure will enable you to make changes to the personnel in the best interest of the company when times get hard or when opportunities present themselves,” he explains.

Importantly, Wilson notes, “a complex corporate structure can cost the compa-ny a lot of money and can, unfortunately, cause the company to close down. There-fore, I stress the importance of having a well-structured company.”

Click on the thumbnail below to view our recommended read:

yourmoney ezine

Corporate StruCture for young entrepreneurS part ii

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CEO’s Think Tank is a weekly discus-sion between Your Money reporters and our CEO, Tyrone Wilson. It will focus on pertinent business issues that are discussed on a regular basis among cor-porate executives, entrepreneurs, small business owners, political leaders and other key leaders in our society.

ceo’sthink tankbyTracey-Ann Wisdom

Tyrone WilsonCEO of eZines Limited

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pportunity, growth and fam-ily. These are the three val-

ues that drive the vision of husband-and-wife team Herbert and Michelle Chong, Founders and Directors of Honey Bun Limited, one of Jamaica’s leading manufacturers of baked snacks. The company has indeed grown from its small beginnings as a bakery in New Kingston to a full-scale production facil-ity, churning out tonnes of delectable goodies for islandwide distribution and even export. Based on its current posi-tion in the market and the prospects for even more growth, the Chongs are get-ting ready to launch Honey Bun’s IPO on the Jamaica Stock Exchange Junior Market at the end of this month, aim-ing to raise between $50-$60 million in capital. This family business is ready to up the ante in the local manufacturing industry.

Most companies turn to loans for ex-pansion capital, but the Chongs thought listing on the stock market was a better alternative, given that the primary ben-efit is a 10-year tax holiday. “That allows us even more added capital eventually, because those profits can now go back into our cash flow,” said Krystal Chong, Director of Marketing and Business Development.

Honey Bun will be selling between 20%-23% of its shares (between 8000 and 9200) in the offer. The capital raised will primarily be invested in new equipment and product development as the com-pany seeks to expand its local market share and increase its export earnings from one percent.

Honey Bun is renowned for its line of individually-packaged backed snacks, including buns, donuts, cinnamon rolls, cupcakes, cheese breads and raisin breads, which are generally aimed at the younger market. It also produces Buccaneer Jamaica, a premium line of rum and fruit cakes aimed at the adult market. Some products, mostly buns, are exported to markets in the UK, the USA, Barbados and Canada. The Buc-caneer line has also found a favourable market in California, Chong pointed out.

The directors are expecting a success-ful IPO based on what Chong noted was prolonged interest from potential investors, even prior to the announce-ment of the upcoming IPO last Decem-

ber. “People don’t even need to see our financials – and they will when it comes out in the prospectus, but I think based on the fact that people can see the growth that the company has put out, especially in such hard times in the last few years, makes it pretty obvious that we’re running a tight ship,” she noted.

“The decision for the directors is that they wanted the company to be run in a corporate governance kind of framework so that it assists with better [operations] and so it’s easier for the second generation,” Chong explained. “It offers better guidance in terms of the board structure and it was an easy transition because we already have a board and we already follow most of the requirements for the Junior Stock exchange.”

INCrEASINg DEMAND SPArKS THE

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Honey Bun ipo

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The company has indeed grown from its small beginnings as a bakery in New Kingston to a full-scale produc-tion facility, churning out tonnes of delectable goodies for islandwide distribution and even export.

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(L-R) Daniel Chong, (Second Generation Chief Operation Officer) Krystal Chong (Second Generation, Chief Market-ing Officer), Michelle Chong (CEO, Owner and Founder),

Herbert Chong (Chairman, Owner and Founder).

yourmoney ezine

insights

he current uproar surrounding the treatment of some Jamaican citizens by Barbadian immigra-

tion officials has once again resulted in many people questioning the purpose of the Caribbean Community (CArI-COM) and pouring cold water on the viability of the CArICOM Single Market and Economy (CSME). Many pundits have argued that true integration is a futile pursuit and should be abandoned, freeing member states to pursue their individual agendas.

CArICOM is seen as a largely esoteric organization that operates over the heads of the average Caribbean citizen, so it can be argued that people do not feel any sort of connection to its goals and values. The CSME is seen as more a dream than a reality as its key stipula-tions are being trod on at regional points of entry and in corporate boardrooms. Theoretically, the mission of the CSME is to create prosperity within Member States “by removing trade barriers and allowing the free movement of goods, services, capital and people.” reality, however, is not as Utopian.

This latest rip in the delicate fabric of re-gional unity exposes the deep-seated na-tionalism and downright xenophobia of many people within the States. Jamaicans and guyanese face constant humiliation in Barbados, and Jamaica blames goods from Trinidad and Tobago for contrib-uting to the demise of its manufactur-ing industry. Undoubtedly, there are rational reasons behind these concerns, but, as proponents of the CSME argue, none of these countries can survive on their own in the global economy. Entre-

preneurs and professionals can benefit greatly from the open market as they are able to set up businesses or seek employment opportunities in any of the 15 Member States. However, based on what transpires after each breach of contract, as it were, the CSME is very fragile. For example, last year, after Hur-ricane Tomas pummelled St. Vincent and the grenadines, Trinidadian Prime Min-ister, Kamla Persad-Bissessar was taken to task for her remarks that “there must be some way in which Trinidad and To-bago would also benefit” if it were to offer aid to the stricken country.

Many people, particularly Jamaicans, proposed boycotts of Trinidadian prod-ucts in order to hit them in the pockets,

causing outcries from manufacturers in that country. This shows the extent to which private companies are vulnerable to real or perceived hostility from Mem-ber States.

As a result, the governments and rep-resentatives of the private sector from each country need to come together and work out, once and for all, a way forward with the CSME. Policies must be activated that benefit all Members and prevent discrimination against each State’s goods and/or people. The gov-ernments must ensure that the laws and guidelines agreed upon are properly documented and made available to the layman in clear terms, and then hold their officials and citizens accountable for any breaches that occur.

If our countries are to thrive globally, we must demystify the term ‘regional integration’ and make it clear that it is indeed everybody’s business.

T

Theoretically, the mission of the CSME is to create prosperity within Member States “by removing trade barriers and allowing the free move-ment of goods, services, capital and people.” Reality, however, is not as Utopian.

byTracey-Ann Wisdom

regionaL integration is Good for Business

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Small Business Banking

arc Whyte could have eas-ily fit in as one of the col-lege students milling about

in the Technology Innovation Centre at UTech with his cornrows, glasses and casual attire. He has the look of a “techie”, with a quite, soft-spoken de-meanour, so it’s only right that he owns a company that specializes in comput-ers, internet and audio-visual technol-ogy, Visual-Tech Solutions Limited.

The 29-year-old Managing Director has a history in the industry, start-ing out at a company that specialized in electronic security before eventu-ally going on his own. “On the side, I used to help somebody that does AV (audio-visuals), so that’s basically how I learned the technology and learned products and got familiar with it. I start-ed buying my own equipment and just doing a little small, in-home, informal type of business, then stepped up from there. That was about five years ago. The business was registered in March 2008,” Whyte said. He runs the com-pany with his wife and business partner, Jay-Ann McKen-Whyte, who manages the accounting and administrative du-ties.

Visual-Tech Solutions specializes in the sale, rental, installation and repair of audio-visual equipment such as lap-tops, projectors, screens, PA systems and microphones for conferences, churches, weddings, seminars and other events. The company also offers

webcasting, streaming video live on the internet. “As a company, we try to dif-ferentiate ourselves from our competi-tion by finding solutions. In finding solu-tions, you have to listen to customers’ needs, so we realised that in providing a projector, providing video recording, screens and audio equipment, the next best thing would be to see if we can stream it on the internet live, and that need was expressed by a couple of customers, so we set out to offer the product about six months ago,” Whyte stated.

Visual-Tech offers live streaming to its website or a client’s own site. The con-tent can be secure (requiring a user-name and password) or open. “We can accommodate up to 400 simulta-neous viewers. With proper notice, we

can cater to three times that amount,” Whyte explained.

Business has been coming in steadi-ly from a diverse clientele including the UWI, UTech, Digicel, LIME, red Stripe, Institute of Chartered Ac-countants, Microsoft, grace Kennedy, Urban Development Commission and Meadowbrook United Church. However, webcasting is a competitive field and Visual-Tech is relatively new to the game. Several companies have their own live streaming facilities and there are also free software options for potential customers to choose from, such as Skype and Ustream. However, these software don’t provide secure streaming and might have glitches due to bandwidth constraints.

Visual-Tech is relying on its reputation for providing good quality products and services at the most affordable prices to build its clientele and increase its assets. There are also plans to start advertising as well as possibly adding digital signage and video recording and editing to the roster of services provided.

Audio-VisuAl communicAtionmarc whyte provides hi-tech solutions

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start ups

M

“As a company, we try to differ-entiate ourselves from our com-petition by finding solutions.”

byTracey-Ann Wisdom

Marc WhyteManaging Director,

Visual-Tech Solutions Limited.

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