Berhane Abreha is a “passionate entrepreneur” who is the founder and managing director of Sun Optics PLC. Although Sun Optics is Berhane’s first and most recognized business, he has also ventured into the furniture business by establishing Majestic Furniture.
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Berhane’s journey into business began when he went to India for education. He remembers his time in India fondly, saying it was a “pleasant stay”. He adds that apart from the academic side of things, India has taught him a lot. He found the disciplined and cultured nature of Indian society deeply inspiring. A particularly impactful lesson came from his host family, who involved every member in budgeting decisions. The family would gather to plan their 15-day budget, with even the youngest children contributing to financial discussions. This approach left a lasting impression on Berhane, inspiring him to adopt a similar practice in his own household. Today, he openly communicates with his five children, involving them in family decisions and treating them as equals.
Partnership with EssilorLuxottica
Berhane views his father as a mentor who taught him the difference between running a business and building a company. “Anyone can run a business, but building a company is a different thing,” he explains. His father’s mentorship has given him the determination to build a company that lasts for generations.
Anyone can run a business, but building a company is a different thing
Berhane Abraha
It is with the plan of building such a company that Sun Optics’ 51% stake was acquired by the French eyewear giant, EssilorLuxottica.He shares that the eyewear giant approached him with the proposal, initiating an acquisition process that took two years to finalize.The meticulous record-keeping culture, which was started by Berhane’s father, made Sun Optics a trustworthy partner to approach. Furthermore, Sun Optics had already established itself as a premium brand in the Ethiopian eyewear market. “They didn’t buy our assets, they bought our brand,” Berhane says.
The Franchise Model
The acquisition has propelled Sun Optics to adopt a franchise model. “In a franchise model,” Berhane says “you’re selling a good reputation”. A good reputation, along with a viable product and rigorous standards allows you to create a franchise in different models. The franchise model Sun Optics adopted is called a turnkey model, where the franchisor provides a ready-to-operate business package to the franchisee. The main reason behind this is to create more business opportunities for Ethiopians, Berhane says. In this model, Sun Optics would pre-arrange everything needed to start and run the business, while the franchisee then collects sales revenue and pays royalties to Sun Optics.
Berhane believes that the franchise model should be implemented more widely in Ethiopia. Franchises are a great way to expand a business, he says. He also believes that founders can make their brands everlasting if they adopt a franchise model. Berhane is hopeful that with the upcoming capital market, more franchises will pop up in Ethiopia.
How to Establish a Franchise
When asked about what companies should focus on when establishing a brand, Berhane emphasized a series of essential steps. For existing businesses, he highlighted that building a strong and consistent brand identity is the foundational step. The next step is developing rigorous company standards to guarantee product consistency across all offerings.
He also pointed out the necessity of closely studying market potential to set realistic expectations for how products will be received. A thorough understanding of the market ensures informed decision-making. Furthermore, financial stability is crucial for a company's success, as is ensuring a steady supply of products to meet demand consistently. One of the main risks of having a franchise is that a fault in one of the branches affects the reputation of the entire brand. Ensuring the above factors are strongly met prevents that from happening.
Building Lasting Companies
In Ethiopia, companies that endure across generations are rare, and Berhane attributes this to several critical factors. Foremost among these is poor financial management. Many businesses struggle due to unstructured and often improvisational financial practices, which not only hinder their growth but also limit their ability to form sustainable partnerships essential for long-term success.
Another key issue is the lack of proper planning. Berhane explains that effective planning should be informed by both past successes and failures, coupled with a realistic assessment of growth potential. This approach ensures steady progress while minimizing the risks of failure. Without these fundamental practices, businesses struggle to achieve the stability and adaptability required to thrive across generations.
Simplicity and Brand building
Since its inception, Sun Optics has been uncompromising with its marketing strategy. Perhaps the best demonstration of this was 20 years ago when the company paid ETB 35,000 for a billboard at the city center. The billboard had only an illustration of an owl with the company’s name. That strategy made Sun Optics an easily recognizable brand. Berhane’s passion for advertisement, which began in India, was behind Sun Optics’ marketing strategy. Their promotion strategy included reaching out to eye doctors to get feedback on their lenses. Frame-wise, Berhane observes that the Ethiopian consumer doesn’t like extravagant frames. That has made it easier to meet customer demands, he adds.
Majestic Furniture
Berhane’s passion for interior design, as well as the boom in Ethiopia’s real estate sector, was what led to the creation of majestic furniture. The strict adherence to precision, which was a culture in sun optics, was also applied in Majestic Furniture. But this was a challenge for the company. “The market is price-conscious more than quality-conscious:” he says. Regardless, Majestic Furniture has been providing its services for the past eight years.
Berhane’s business expertise has also landed a partnership with Chinese companies. Although the partnership was initially supposed to be in the assemblage of trucks, it later changed to cooperation in the furniture business. However, unlike Sun Optics, Berhane doesn’t plan to turn Majestic Furniture into a franchise. This is mainly because Berhane isn’t confident in building a consistent supply of products, due to the economic circumstances in Ethiopia.
Challenges In Business
Berhane says that he has never encountered a challenge he hadn’t anticipated. This is thanks to his meticulous planning. He does admit to being frustrated by bureaucracy. But he says that it's better to work with what he has than struggling with what he can’t change. “You don’t have to waste your time on things you can’t change,” he adds. He believes that a good entrepreneur adapts and finds new ways instead of struggling hopelessly with unchangeable things.
Personal Life
“My business ends at 5 PM,” Berhane says, speaking of his work-life balance. Just as he dedicates himself fully to his business during the day, he ensures uninterrupted quality time with his family after hours. He credits his ability to achieve this balance to having a well-structured company and an empowered team, which not only lightens his workload but also allows him to focus on what matters most outside of work.
Berhane says that he aims to be a role model to the younger generation. “I want to show that anyone can work hard and change their lives,” he told us.
I want to show that anyone can work hard and change their lives
Berhane Abraha
As we concluded our interview, we asked Berhane to recommend three books. But he gave us some advice instead. “Whatever books you read, you should apply it to your unique context,” he said. He explains that many people read inspirational books. However, when it comes to application, they often fail to adapt the advice they get from the books to their local contexts. So, whatever books, podcasts, or any other media you consume, Berhane advises you to contextualize it.
