It’s a story that has stuck on Bradley Porter like a tattoo. When you are in the business of renting office space, not being able to pay rent as the leaser can be quite ironic.
Born in the Free State province in South Africa, and growing up in the coastal city of Durban, Porter’s future in entrepreneurship was inevitable having had a father who had a tiling business.
“It’s almost an affliction you are born with and I can’t really help it. I had a burning desire to have control of my own fate and destiny. And whatever it takes, you have to fulfil that desire and passion,” says Porter.
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He grew up at the height of apartheid, attending the University of Durban-Westville which at the time was one of the political institutions in the country. When he didn’t succeed in university, he joined the army and from there decided to go live in Britain for nearly 10 years.
It was during this time as an employee that he realized he couldn’t work for someone else for the rest of his life. He packed his bags, returned to Durban, and with the little money he had saved he started two businesses. Along the way, one of his friends, who had purchased space in a building, suggested Porter hire 200 square meters for his ‘Experience This’ business on Florida Road in Durban, a hub of activity for tourists and locals.
“I said ‘I don’t need all that space. I don’t’ need 200 square meters’… but I said ‘if you are prepared to try start this business with me, I’ll take the 200 square meters and we will experiment with this business’ which became known as Flexible Workspaces,” remembers Porter.
In October 2005, Porter founded Flexible Workspaces after spending eight years in the serviced office industry of Britain. The company provides fully serviced offices in South Africa’s KwaZulu-Natal province and Johannesburg. It was founded as a solution to the ever-changing business environment and to offer alternative options to the business community.
The business caters for small businesses that are starting out. Finding the right office space can be daunting especially when your budget is limited and you working with a small team.
Porter and his friend set up offices. They started with just furniture, the phone system that was already supplied and around $10,500 to get the business going.
“We were so undercapitalized it was unbelievable and we didn’t have any spare cash. To start off your business these days, realistically for 1,000 square meters, you would need at least R4 million ($350,000). For 200 square meters, you would need around R1 million to R2 million ($87,000 to $175,000),” he says.
Two years later, Porter says they decided to open up their next offices in Umhlanga, around 17 kilometers from Durban, even though the first offices on Florida Road were not flourishing.
“The reason we opened in Umhlanga was because of the trend at the time. This was around 2007, the trend was very much up north, outside Durban. We needed to be able to provide a presence in Umhlanga, which is becoming the commercial hub for KwaZulu Natal or Durban anyway,” says Porter.
But this move ushered in his worst day.
“I think every entrepreneur will have one and for me personally it’s so real it’s like a tattoo on the back of my brain. I can relate to it now. I get goosebumps when I think about it because it’s just so real still,” says the 44-year-old.
He calls it Black Friday. It was September 7, 2007 and they had just expanded Flexible Workspaces and the rent was due. Porter was abroad on holiday but had to come back to South Africa to solve numerous problems, the main one being that they hadn’t paid R73,000 ($6,360) in rent for the 500-square-meter Umhlanga offices.
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Unfortunately for them, with a business renting out space to other small business, Flexible Workspaces didn’t have any bringing in money so that they could pay rent. Porter sat in one of the offices looking at the Gateway shopping Centre with one hand on his head and the other holding the telephone to his ear. He was calling the landlord, apologizing for the late rent and begging for some leniency.
“The business model worked in such a way that we take a risk, we’re a bit like a hotel but for businesses. So we’ll go into a space, we do a deal with the landlord, we take a risk on all the capital expenditure. We fit it out, we staff it, we supply the internet, tea and coffee. Everything gets supplied. These services all have to be supplied on day one. And on day one you usually don’t’ have any clients. Unless you’ve been clever about it and been more strategic,” he says.
“But usually, particularly for us, the day one meant no clients. So by the time we got to day 30, we might have had one or two clients but it wasn’t enough to cover our rent and the overheads we had.”
After spending 15 minutes, which felt like years, on the phone with the landlord, she agreed to give them an extension for a few days to come up with the rent money.
Fortunately, they made it happen. It wasn’t more than a week when the business signed a deal with a data storage company, who remain his clients today. But they had to hobble through paying rent for the following months.
“We went through a three-year recovery period and then in about 2011 we started looking at space in Sandton. And that went really well. We took a small portion of 600 square meters and we filled it very fast. And about a year later, we recovered sufficiently to double the space to 1,200 square meters in Sandton. And we are looking for more now,” he says.
“With the benefit of hindsight I should have started this business in Johannesburg. I think it would have been much more successful by now.”
Flexible Workspaces caters to those who want an office space instead of working from home. Porter says serviced offices reduce the costs and hassles of renting space and combines the best features of a low-cost office in a prime location.
“Our objective was to build a network of business centers, so we were never going to stop at Durban or Umhlanga,” he says.
Since then, the business has 15 employees and turns over around $1.3 million a year.
In October 2013, Flexible Workspaces opened its third serviced offices next to the swanky Montecasino precinct, outside Johannesburg. Porter says that he hopes to open more offices along the continent’s only fast train, the Gautrain, from Johannesburg’s city center all the way through to the country’s capital, Pretoria.
“We want to expand the business nationally and cross borders. I’d like to have a national footprint in five years, international I can’t tell you. We are growing this business organically, so we are using our own money, it’s all self-invested. The pace at which we can grow is limited to the amount of money we make.”

My Worst Day: Bradley Porter

People often say “life is short” as a justification to do or buy something immediately rather than waiting. But the truth is, life is not short. Life is long. The average life expectancy for an American male is 76.2 years, and 81 years for a female. A thirty-year-old discussing a short life may actually be looking at another 50 long years.
This is good news! And, financially speaking, a long outlook on life is important, because the decisions we make early on have a significant impact on the remainder of our lives. Specifically, these decisions can make or break our retirement plans.
Here are seven important financial decisions 30-year-olds make that could come back to haunt them in their 50s:
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<h4>The company you work for</h4>
There are many things to consider when choosing a job, but the retirement benefits offered are vital to wealth-building in the long term. A 30-year-old who doesn’t carefully research his or her benefits and chooses to work for a company with no company match or retirement contribution could  be way behind someone who works for a company with robust benefits. For example, a 30-year-old making $75,000 a year who saves 10% of his or her income in a 401(k) and earns an 8% average return would have a balance of just under $600,000 at age 55.  Compare that to a 30-year-old who saves 10% at a company that matches 5% and adds a profit sharing contribution that averages 5% a year. He or she would have almost $1.2 million in their retirement account – double our first example’s amount – at age 55.
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<h4>Your starting salary</h4>
Even a slightly higher starting salary can jump start your earning potential. A study by George Mason University and Temple University showed that employees who negotiated their starting salaries averaged a $5,000 increase compared to those who didn’t negotiate. Due to the effects of compounding, the researchers estimate that an employee who starts his or her career with a salary of $55,000 instead of $50,000 (with 5% increases each year) would earn over $600,000 more in income over a 40-year career.
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<h4>Your choice of a partner</h4>
Who you marry is one of the most important financial decisions you can make. I’m not advocating you marry for money – quite the contrary. Marrying for love and staying together is a smart financial move. Whether the 50% divorce rate is an accurate statistic or not, we can all agree that when it happens to you, it is devastating both emotionally and financially. The divorce itself can be expensive and dividing financial assets unravels your financial planning. Just ask Robin Williams, who is returning to television after two expensive divorces!
Your choice of a mate isn’t only about love and commitment; it’s also about financial compatibility. If you and your partner are compatible money-wise and commit to setting up a financial plan to save, invest and build your future, you can enjoy life and create financial security at the same time.
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<h4>When you have children</h4>
Americans are delaying having children. In fact, according to National Health Statistics Report, more than one in three college-educated women will have children after the age of 30. In the past few decades, the average age of American first-time mothers has increased by four years, and first-time fathers are aging at the same rate. Since the recession in 2008, the only age group that has continued to have more babies than in years past is the “over 40” group.
In Sheryl Sandberg’s book, Lean In, she encourages women not to pass up promotions because of plans to have children. If you have plenty of support at home, this can be a great idea. Another way to look at it is, if you plan on having children, don’t wait because you are focusing on your career or waiting for financial security. There are advantages to having children earlier.
One reason has to do with timing of kids’ expenses. Consider a couple that has children when they are 25 years old. Before they hit their 50s, their kids are past the very expensive college years. These parents, still young themselves, have 15 years to focus on their own retirement savings if they plan to retire at 65. Couples that have children when they are 35 years old may not see the light at the end of the “empty nest” tunnel until they are 60 – much closer to retirement age.
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<h4>How you invest</h4>
Investing in high-cost managed accounts can take a heavy toll on investment returns over time. According to Forbes contributor Rick Ferri, founder of Portfolio Solutions, those fees can add up to 40% of your return each year. Rick shares an example of how, with annual mutual fund management fees of 1.1% and an additional advisor fee of 1% (on the first $1 million of your assets), an investor trying to squeak out a return of 5.3% (the expected return) of a portfolio of 60% global stocks/40% U.S. bonds could actually pay 40% of that return in fees. Make sure you weigh the long-term impact of fees when investing; consider choosing low-cost mutual funds or index funds for retirement savings.
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<h4>Whether you rent or buy a house</h4>
There are instances when it is better to rent than to buy a house. If you need mobility, don’t plan on staying in your area for long or aren’t interested in potentially being a long-distance landlord, you may be better off renting. However, in the long term, owning your home can be a coup for pre-retirees. Without even taking home equity into account, a homeowner with a fixed-rate mortgage won’t have to worry about a rent increase. Having a fixed housing cost is increasingly important as you get older, since rents can increase with inflation and you are attempting to estimate future expenses. As a homeowner, the mortgage will eventually be paid off and your housing budget will only have to cover taxes and repairs, so there may be more money to enjoy during your retirement.
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<h4>How you pay attention to your dollars</h4>
If I could take back what I spent in the past twenty years on coffee, clothes I bought on sale but rarely wore and my “guilty pleasure” books, I’d be a wealthy woman. Tracking expenses to see where your money is going which you can do with your bank, Quicken, or in the LearnVest Money Center (*disclosure – I work for LearnVest Planning Services) and identifying blind spots can help you save more and spend less. First of all, when you are tracking expenses, you have a heightened awareness of your money and subsequently are more reluctant to part with your dollars.
I hear clients exclaim all the time, “I had no idea I spend $600 a month on restaurants (or $800 a month on shopping). I am shocked!” When tracking, you can more easily identify areas for cost savings and put those savings toward your financial goals.
Mickey Mantle said, “If I knew I was going to live this long, I’d have taken better care of myself.” I suggest that if 30-year-olds knew just how young they’d feel in their 50s and how much life is left to live, they’d take much better care of their finances.
Life is long. Make decisions accordingly.

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My Worst Day: Bradley Porter

7 financial decisions made in your 30s that may haunt you in your 50s