JO’M Cosmetics graduated from the kitchen floor to supermarket shelves – in the United States and Europe

Starting your own business can be a tricky affair and is not recommendable for the faint-hearted. Worries relating to start-up capital, customers, profit margins and operating costs have deterred scores of aspirant entrepreneurs from putting their business plans into practice. Johannah and Solomon Moriti are an exception; they ploughed on, and with success. After taking South Africa by a storm, their skin- and hair care products are about to hit European and American shores.

Five years ago, the Moritis from Cape Town – both employed full-time at the time – decided things were not supposed to be the way they were. It was time for a change, and to grab the future firmly by the horns. It was time to start their very own business.

“The driving force was my hair. I used to apply chemical products to relax and straighten my hair and to make it more manageable. The problem was that these products made it terribly dry and brittle,” recalls Johannah, originally from the Embalenhle Township in Mpumalanga.“It is a problem (that) black women who use chemicals to relax their hair, face.“I started to relax my hair in my early teens, so you can imagine how damaged my hair was a few years ago.

“The state of my hair made me think. I wanted to go back to, what we call, natural or unrelaxed hair. I also wanted to keep it soft and manageable,” she adds.And so the idea for a gentle hair softener – made of natural ingredients instead of chemicals – was born.Because of the nature of her work, Johannah (a qualified analytical chemist and, back in the day, a laboratory assistant at GR Pharmaceuticals) knew what she was up for when she decided to develop the product she had in mind.

For five years prior to her resignation in 2005, her work revolved around quality control, quality assurance, product development, developing validation methods for manufacturing, product analysis, and packing methods. In addition, she was co-
responsible for the manufacturing process of the company’s products which, like her own, are made solely of natural ingredients.

Despite Johannah’s knowledge and expertise, it took three years of research and trial-and-error experiments before the final product was in a jar and ready to be used and distributed.“The final list of ingredients comprises various natural oils including extra-virgin olive oil and jojoba, as well as shea butter and various plant extracts,” she explains. “Apart from being a 100% natural product, free from parabens and perfume, it has not been tested on animals.”

The development and initial production phase of the hair softener took place in the couple’s kitchen. “The kitchen sometimes looked like a downright nightmare,” jokes Johannah’s husband, Solomon, a mechanical engineer by trade and an MBA graduate.“We used professional chemical instruments and glass equipment as well as our kitchen appliances, which included the electric mixer, pots, pans and other utensils.“In the beginning, we were not able to make large batches, and so we only made 10 litres at a time,” he points out.

During this initial stage, the Moritis used Solomon’s salary to pay for the oils, butters, plant extracts and other ingredients.“Every month, we sat down and drew up a budget and reserved part of our income for the raw materials we needed. This meant we had to forego certain luxuries,” Johannah recalls. “Instead of spending on luxuries and non-essentials, we’d put money toward the ingredients we needed.”

Being convinced of your own product is one thing, but to convince others is another – particularly in a world that is dominated by big cosmetics brands such as Revlon, L’Oréal and Sunsilk.“First, we tried the product on me, and then we tried it on friends, family members and colleagues,” Johannah says. “People seemed to be impressed and happy.”

To expand their customer database and grow the business, which the couple had christened JO’M (pronunciation: Joe-ém), they went from salon to salon, promoting their product.“Some salons came on board straight away, but others took a while,” Johannah says. “This is because the market, to a large extent, is dominated by relaxers.”

Eventually, Solomon decided to quit his job to give his full attention to the company. Agreeing it was a big career change, JO’M’s managing director says he has never regretted his decision to leave the marine company for which he worked, for a career in cosmetics.“I always wanted to run my own business. Besides, I believed in Johannah’s dream because I looked at it from a commercial point of view: The cosmetics industry is a multibillion-rand sector, which is growing continuously. I thought it would be a great opportunity if we could have a small slice of this particular sector,” he explains.

“From a husband’s point of view, it also seemed like a win-win situation,” Solomon adds with a chuckle. “Johannah always complained about her hair, about the breakage and how bad it looked. Somehow her business idea was a solution for these frustrations I had to deal with on a daily basis.
“Today, she no longer complains about her hair, and it took away some of the stress I had to deal with.”

Funding

In order to grow the business further, going beyond the salons and into retail stores, the couple began approaching banks and financial institutions for funding.“It was a huge challenge as, unfortunately, no one wanted to give us a loan, nor did they accept our business plan,” says Johannah.

“First of all, we did not have collateral, and both our business plans and product were seen as too risky. It was as if everyone, including the government agencies one can approach for funding, was thinking: You are from the townships, so what would you know about cosmetics? If your product is indeed so great as you claim it to be, why didn’t the big cosmetics houses come up with it?”

Despite these difficulties, the Moritis were determined to make it work. “We did not lose hope, as we sincerely believed in our product, in ourselves, and in a positive outcome. That is why we pushed and remained persistent,” Johannah notes.“Every time a bank or institution rejected us, we became more aggressive and motivated to make it work and to prove them wrong,” Solomon adds.“In the end, our friends and families came to our rescue by lending us money. Some family members even took out loans for us.

“We also managed to strike deals with our suppliers of the raw materials. After communicating our vision to them, they seemed to believe our concept and that, one day, we would have access to the cosmetics market,” he says.“Obviously, they did not help us just for our sake. They knew that if we made it, they would benefit as well.”

Entry into market

As a business, JO’M took a huge leap when, in 2008, the couple struck their first corporate contract. “This was with Clicks. It, among other things, meant we had to move out of the kitchen and into a proper production facility. We found one in Montague Gardens,” Johannah relates.She started out with two staff members in the factory and about a dozen casuals as well as a variable production.Recently, the company relocated to a retail business district in Parklands. “We have now employed four full-time employees and a variable number of casual employees who serve in various roles from packing to promotional work. We are now able to produce 10 000 units a week,” says Johannah.

Apart from hair softeners, JO’M started manufacturing shampoos, a spray for dreadlocks and braids, hair moisturisers, and a variety of skin care products. “These products are sold at Clicks, Pick n Pay, Spar, Discom, Jet, Boxer, Jumbo and Shoprite stores across Africa,” Johannah says, noting that JO’M is not planning to take a break.“We were nominated as one of the seven finalists in the 2010 HiT Barcelona Global Entrepreneurship Competition,”Solomon says.“We were the only African company that year, and we represented South Africa.”

HiT Barcelona, also known as the World Innovation Summit, is an annual international gathering that brings together chief executives, presidents, general directors, directors of innovation, businesspeople, entrepreneurs and investors from around the world. The event aims to get an idea of what is happening with regard to innovation, technology, new products and innovative business ideas.

The nomination resulted in another major leap forward for JO’M: “It gave us exposure to the global market, and led to two international contracts – one for a cellulite cream and one for a natural, non-chemical hair remover,” Johannah points out. “Both products were meant for the Spanish and South African markets.”

Business continues to flourish, she says with a smile. “We are currently in the process of getting our products registered with the European Union and Food & Drug Association of the United States of America. This will give us access to trade and export into and throughout these regions.“Certification and registration of products should be complete by October 2011. Thus, trading can commence January 2012.”

In the meantime, JO’M was approached by cosmetics house, L’Oréal, with an offer most business owners could not refuse. The Moritis, however, decided differently: “They wanted to buy our company, but we said no,” Solomon says. “JO’M is too young and there are too many opportunities to grow further. Therefore, we decided it would to be unwise to sell. It is nevertheless a great compliment.”

Miriam Mannak