Monday 18 May 2015

Finance’s simple rule: ‘No risk, no profit’

Christian Ngan is the CEO, Madlyn Cazalis, a bio-cosmetics company that produces natural body oils, lotions and soaps for ethnic skins. Starting with only $3,000 in 2012, the company is now worth million dollars. Recognised by Forbes Africa as one of 30 Most Promising Young Entrepreneurs in Africa 2014, he speaks with DOYIN ADEOYE in this interview, on what it takes to run a successful business in Africa.
What exactly does Madlyn Cazalis stand for as a brand?
Madlyn Cazalis is an all-natural African cosmetic company. We fight against bleaching products and through our brands, we provide quality African-owned products. I noticed that we don’t have enough major African international brands; we depend a lot on foreign products, forgetting that Africa has a lot of resources that we could work with. So Madlyn Cazalis is an African identity; the Zebra logo represents our African pride.
So what spurred you into being an entrepreneur?
I left Cameroon in 2002 to study in France. I was working in the Private Equity and Investment Banking Industry. I achieved my main goals: attending great universities and having professional experience, but I needed more. I needed to express my creativity, be my own boss and build something new, especially for Africa. So in 2012, I resigned and started my own company.

With a background in finance, why start a business in an entirely different field when you got back to Africa?
I was working in Corporate Finance, so I was used to working on different sectors; from telecommunication to luxury, from energy to technology, from pharmaceuticals to cosmetics. So I simply started Madlyn Cazalis as a businessman.
The cosmetic sector is booming and dark-skin women now spend six times more for cosmetic products than white-skin women, so I just decided to go for it. And now, we are already the leader in the organic cosmetic field in Cameroon, working towards becoming a continental leader and prevent women from using dangerous whitening products all over Africa.
That was a risk. Didn’t you have any fears that it might not work out?
When you’ve worked a few years, 24/7 in mergers and acquisitions with a lot of stress and reactivity, you automatically become more confident. Expectations are high and you learn a lot about risk, adventurousness, entrepreneurship and big operations. I think it’s probably one of the best schools on earth. There is a simple rule in Finance: no risk, no profit. So to be successful, you need to get out of your comfort zone. I just needed to stop daydreaming and be the guide of my own destiny.
So what other risks did you have to take while starting off?
I took the risk of not being understood by friends, family and girlfriend. I took the risk of being criticised. I took the risk of starting a company in front of cosmetic giants with a lot of financial power. But I don’t regret any of it.
Was it easy convincing people to patronise your products, considering the fact that in the cosmetic/beauty industry, many people would prefer to patronise already known foreign brands flooding the African market every day?
It was not easy but even these foreign brands started from the bottom. But when you have a good product and you know what people really want, you can convince a lot of people to use it. People love Madlyn Cazalis products and we’ve sold countless oils, creams, masks and lotions. It took time, but when people realised we had very good products, they adopted it.
How do you play against these major foreign beauty companies?
We are in the same sector, so we are automatically competitors. The main difference is that we are a niche product and we provide more services such as professional dermatological advices and free delivery. We also do a lot of education. We not only manufacture products, we create a brand; we create an experience.
Madlyn Cazalis now offers more than 20 products. How has the company grown in three years?
Madlyn Cazalis now has 20 products, sold in more than 50 retail outlets. The company is expected to have more than 200 Madlyn Cazalis Ambassadors by the end of 2015. We did all this in less than three years. We now plan to expand in other African countries, even if we are still a very young and artisanal company. It took a lot of hard work and patience to get here. It’s why I created the concept of PATH (Patience, Adventurousness, Task and Humility) to inspire all African entrepreneurs. The company started in 2012, but we are just at the beginning of a fantastic story.
You also own Goldsky Partners Advisory. What was the inspiration behind this endeavour?
Goldsky Partners was created to advise, mentor and coach other young aspiring entrepreneurs that want to launch their own venture. I want a lot of young Africans to pursue their dreams and I want us to be the new generation of young African leaders.
You are the Managing Director of rising pharmaceutical company, Societe d’Expansion Pharmaceutique des Acacias. What products do you make?
SEP is a small pharmaceutical company producing small solutions for pharmacies. So I work as a consultant and Director; I advise the company on its strategy and financial control.
How do you combine it all without any hitch?
Madlyn Cazalis represents 95 per cent of my activities, I have a lot of other responsibilities because I’m the kind of guy that really think that human beings don’t release their full potential.
I’m on the board of Brand Africa; I’m an honorary Member of the Cameroonian Consumers league; I’m working with ALN Ventures for our development; I’m working with ECAM (Small and Medium Sized Company major syndicate) as well as numerous entrepreneurship associations and movements in Cameroon.
We have one life to live. We have to focus on a particular activity, but you also have to open your mind and take advantage from new opportunities. I work on numerous other new projects backstage. I’m 31 and life is short.

You started your company with $3,000. How has it grown over the years in terms of capital and manpower?
Yes, I started my company with only $3,000 of my personal savings; I had no banks or private equity funds, no subventions and no love money. I was alone with no networks in that field. I used different strategies to learn more about the industry. Learning is important. Since the beginning, all the benefits are invested and in three years, our sales grew by 400 per cent and we are five major decision makers, with more than 150 stakeholders.
It has evolved into a million dollar company...
Madlyn Cazalis takes care of its customers, we really analysed what women wanted, what women needed and what are the services they are ready for. We are willing to become a billion dollar company taking consumer experience to another level.

What are the challenges facing your business?
My biggest challenge was starting with absolutely nothing. I started with $3.000, it’s nothing comparing to billion dollars companies such as Loreal, Unilever or Procter & Gamble. So you have to be cost effective, do the right choices and stay humble.
What advice do you have for entrepreneurs who have great ideas, yet have no funding? Do you think money makes a project?
I say it all the time, money doesn’t make the project, project makes the money. Some people do great things with no money and others fail with huge amounts. Young people nowadays want it all without working, without blood, sweat and tears. To succeed you need to suffer first, that’s a reality. If it’s too easy at the beginning, it will be more difficult for you to handle future failures.

What advice do you have for Africans in the Diaspora who are interested in moving back to Africa to do business?
Before launching your business, ask yourself: What can I do for these people? Which problem can I solve? When you are used to solving problems, you can build a successful business. But I still think that a lot of young Africans need to be patient and adapt to local realities.

Why do you think African entrepreneurs don’t succeed in their business endeavours?
I think there are lots of talented African entrepreneurs. In African French-speaking countries, the young ones are not assisted enough; they are not adequately encouraged to be creative and launch their own ventures.
A lot of young people think they will get rich in looking for government positions. We need to create entrepreneurship culture in Africa.
You were recognised by Forbes Africa as one of 30 Most Promising Young Entrepreneurs in Africa 2014. How does that feel, getting such recognition at such an early stage of your business journey?
I’m honoured to have my work recognised. It encourages us to pursue our dream. Forbes recognised Madlyn Cazalis’ work. Having the chance to inspire a lot of other young Africans is so powerful.

Many successful businessmen out there never finished school, and unfortunately, many young entrepreneurs now have the notion that they need to leave school to succeed. What do you think of education and entrepreneurship?
I had the chance to go to school and I have two different Master’s degrees; I received a lot of tools in finance and business administration. But, I think education is more important when it concerns relationship with people, but not doing a business.
Would you say entrepreneurialism is inborn or could be learned? I think entrepreneurship has to be lived not to be learned. All we can learn are tools that can help us run the business: finance, sales, marketing, communication etc. Everybody doesn’t have skills or temper to be an entrepreneur, but everybody can develop it to be the best entrepreneur.

What thrills you most about being an Entrepreneur?
It’s an incredible adventure. Every day is different and you can develop your imagination and your creativity. You also meet too many different people. It’s not easy, but entrepreneurship gives you a lot of adrenaline.
What would your business advice for young entrepreneurs be?
Young entrepreneurs need to start small and think big.

What do you think are the most important personal skills someone must have to be successful in business?
You need communication skills, sense of organisation and networking skills.

What inspires you?
Every successful person inspires me.

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