CFO Mag: What were the biggest challenges you faced as a CFO, and how did you overcome them?
RM: This is a very great question and is broader than a “CFO” question, this is also a life question. I will breakdown a few key challenges. Firstly, there managing the technical, operations and strategic demands. As a start in the finance corporate environment, you generally are technically good as accounting, International Financial Reporting Systems (IFRS), Tax, but what it really is about at the strategic CFO level is how can you use these technical skills and apply them amongst other skills to build the financial future of that organization. The shifts are from focusing on the past (accounting) to focusing on the future growth, efficiency, cashflows, and impact. 

What really helped me in my journey, and still to this day, in this transition is seeking mentorship from current or prior experts. I still see myself as a student of the game and you must always have the mindset to be taught, to learn, to listen and to grow!  In terms of transitioning from Manager to Executive, this is a major difference I learnt and when I am in leadership position currently, I can generally tell who a manager is and who is cut out to be an executive. Here is the key difference in my opinion: executives handle the execution of a company's “long-term vision” by collaborating with the board and shareholders, while Managers largely deal with the “day-to-day” operations. When I started sitting more with the Group CEO, sitting in board meetings, reading the corporate plans to better understand the “vision, mission, value” statements and all those kinds of things, this is when one realized it’s not just about debits and credits.

CFO Mag: Can you share a defining moment from your time as CFO that shaped your perspective?
RM: Internally I was ready when I completed my first and second successful audits as the main lead with Huge, at this stage I now wanted to be involved with the future strategic emphasis of the business. I knew I could handle all technical and operational matters at this stage of my career. To me the external defining moment was when the Group CEO said to me: “Ronald, you and I have to talk more”! This is when I knew that I had now grown sufficiently for him to take me on board to the next level. While I had a successful career as a CFO, I realized that my true passion lied in real
estate entrepreneurship. The transition from a corporate environment to an entrepreneur was not without its challenges. I had to adjust to being the face of the brand and network more to build my business and expand my portfolios. However, my experience played a crucial role in building my real estate venture. My technical skills, leadership qualities, and soft interpersonal skills have translated seamlessly into building
and managing my own business.

CFO: When did the entrepreneurial spark ignite within you, and what factors led you to shift to Real Estate?
RM: This was already sparked at Huge when I was now the FD. The key factors that led to this were the fact that, I knew that I was not the final decision maker strategically, that was the Group CEO and Board, regardless of my beliefs, vision, and inputs. Secondly, I wanted to drive my own destiny, because the Group CEOs nor the Boards where not necessarily aligned with mine. Thirdly, I knew I could do it and it was time to take that leap of faith! Why real estate? Coming from the listed environment and having been mentored by wealthy coaches, I realized they all had one thing in common, that was they had their financial freedom under their own control and they all own “ASSETS”! This included my “Boss” the Group CEO! So, this was another career and life transition for me at this stage, from income salary earner to assets. 

So many individuals rely only on a paycheck to survive until retirement. That was me also up to this point, I had a house, car, and few minor investments here and there, but I realized that this was not the “financial freedom” foundation, relying on a great job and a salary. So, I learned from my mentors and prior boss that there are four ASSETS one can invest in to establish financial freedom, these are:

 Invest in the stock markets (eg JSE stock exchange) – which is where I came from and understand how it works.
 Invest in Business (for example you could be the founder of Facebook)
 Invest in yourself as a Brand (for instance you could be an artist, athlete) and
 Invest in Real Estate (which was my path of choice) 

Do not get me wrong, all these are great. As a matter of fact, I do all! Just the focus is Real Estate, they all have pros and cons and people will debate these two lengths and Lengths. But here a 10-point non-exhaustive list of key differentials I find in Real estate:
a. The Asset is real and physical – you can touch it and put an address on it.
b. Overtime real estate grows in value, this is tried and tested for years, and it is going nowhere.
c. Accommodation is a primary need, so demand is guaranteed forever.
d. It has two types of returns, cash flows such as rent, and capital growth and value grow over time.
e. You can leverage it as an asset. For example, you can get funding on real estate from a bank but cannot from a listed share.
f. You have access to equity as the investment grows over time, this allows you to grow your asset base/portfolio over time.
g. Tax benefits, there are various tax incentives for property investors that are not available on the stock markets for instance.
h. You have more influence and control in real estate than you do as a shareholder of say MTN shares where you are mainly just passive.
i. Real estate has underlying value on the property, whereas for instance the stock market is driven largely by perception.
j. You generally have three exits/Pivots in property, other asset classes are limited to two exits

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CFO Mag: How did your experience as a CFO translate into building your Real Estate venture?
RM: Coming from the Listed environment, First and foremost, I learnt that “Assets” create and grow wealth not even a “high” CFO salary. So, I started investing in the stock markets as a start, then investing in myself and then into real estate for the reasons mentioned in the previous point above as a primary focus for wealth creation. As a CFO, finance guy at my foundation, I also double down on this role in my new Venture at Four Green Houses (Pty) Ltd, as the co-founder and FD for the company and all our Joint Investor Partners and Consortium members. I still look after the Financial Strategy and Financial Operations for our Joint Venture Property Investors. This still entails for instance strategically seeking long-term funding, dealing with large funding corporations, commercial banks, evaluating the feasibility studies of projects, new developments, existing developments with tenants, conversions office-residential, deal presentations to potential property investment partners, and networking to enhance leveraging capacity. Operationally, I am overseeing the day-to-day finance function, continued improvement on operational efficiencies, logistics, legal, due diligence, property management.

CFO Mag: What unique challenges and opportunities have you encountered as an entrepreneur compared to corporate life?
RM: The first challenge is to back yourself and believe you can do it, going against the norm, against the “safety net” of your salary. I can then say adjusting to not having a salary was a challenge, but I was prepared for it, by saving and having milestone goals at each stage of the entrepreneurial journey. For example, if we get this deal and raise so much equity, we will be able to secure X amount and that will address office rentals and salaries. For six months for example whilst not hampering the growth and projections of the actual investment project obtained. Another challenge is to adjust to being the face and be out there networking and being the brand. You are now “the Guy”, like my former Group CEO was he face and was the guy. I am still enjoying this challenge to this day.

CFO Mag: Was there anything you didn’t anticipate about the transition, and how did you adapt?
RM: Oh yes, I did not anticipate that I will broke at some point in the transition. Luckily, I had some investments I could cash out from my initial savings and investments whilst I was employed full time. I also have the benefit of a great business partner, Cornelius Koopman – with me on
this Four Green houses Journey, a former producer on the home channel show “All about Property”. He has been a steady diet of support, faith, brotherhood etc.. you name it. This has been important in the low times of my transition. We also did not anticipate changing our initial strategies when the business initially commenced. We had to pivot for example from sourcing deals, to investing in one-by-one buy to lets properties, then to multi-lets eventually now to going bigger and investing in apartment blocks flats that 30 plus units at a time. We learnt a few lessons along the way with each step. Today, we are still learning as we keep going.

CFO: How do you see your personal values and experiences reflected in your entrepreneurial approach?                                                         RM: The biggest value in my view is that working jointly with others to achieve a common goal, such as joint ventures and consortiums is the foundation of our entrepreneurial approach, hence our slogan “your partners in property wealth”. We go further as a group, than as individuals. We do what we do best that is doing all the work which entails at its core networking to source investment properties projects, negotiate with sellers, source the funding required, raise the equity, oversee the transfer processes, take over role of landlord and asset manage the property portfolio. The investors, joint venture partners just invest their cash and watch us do all the work. We share in the growth of these assets and cash flows of these projects, assets, and ventures “together” we are in the deals with our investors.

CFO Mag: Has your leadership style evolved since transitioning to entrepreneurship? How so?
RM: I like this question because it also shows how life adapts to various situations. I have become more of a the three below:
a. Creator where you must be willing to pivot adapt smoothly and quickly.
b. Initiator where you must get started and make quick decisions, not too much time to deliberate.
c. Problem solver when you are hitting issues, walls, spend more time solving the problem and moving on. You realize that there needs to be an outcome and you drive it from start to finish. The “buck” stops with you!

CFO Mag: What are some key lessons learned from both corporate and entrepreneurial environments?
RM: I learnt a corporate lesson, where you must work in someone else’s vision and be of value to them. Have savings and Plan B in case you must leave, for example the COVID-19 where a lot of businesses closed down. Have an investment plan regardless of how much you love it, you need back-up. I also learnt entrepreneurial lessons where marketing is senior, you need to be out there, network for strategic advantage. Do not give up and have support structure mentors, good partner, read and study about it.

CFO Mag: Do you find a satisfying balance between your personal and professional life now?
RM: Most definitely, you are the driver and controller, and the destiny is primarily in your hands. If things go well, you happy, celebrate and go for the next goal. If things go not so well, you learn from them and pivot or change or adapt get back up and get stronger. You grow much faster in life in general as an entrepreneur more than just an employee. In terms of my future aspirations, I have this long-term goal of building a billion-dollar business, and my advice to aspiring entrepreneurs is to build cash reserves, have a support team, and network as much as possible. Looking back, I wish I started his entrepreneurial journey earlier and I encourage others to take the leap of faith and trust the process.

CFO Mag: What are your long-term goals and aspirations for your Real Estate business?
RM: To grow a billion-dollar business and take fellow 1st Generation wealth creators with us at the top! As well as to eventually list on the stock exchange or Sell to a REIT to exit as an alternative.

CFO Mag: What advice would you give to aspiring entrepreneurs, particularly those with corporate backgrounds?
RM: Here are a few pieces of advice I am willing to part with:
i. Build cash reserves, my rule of thumb is to be able to survive at least 999 days without a salary. Whilst employed, get mentorship/training in the field you want to focus on
ii. See if you can start with some foundational work whilst employed such as marketing on weekends and after hours.
iii. Get business Partners and or associates to go on the journey with.
iv. Network a lot in the field and related matters such as seminars, conferences, webinars, and expos.
v. Build a support team such as a life partner who supports vision, join groups that are in industry or related field.

CFO Mag: Looking back, what would you tell your younger self about pursuing this path?
RM: I should have started earlier! It is obviously easier to say that in hindsight. But I like the way my life has transitioned to this stage; God had his reasons for this specific pathway!