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SMME's Supported by GEP

OLA SUPERSTORES

BACKGROUND

Ola Superstores is a registered close corporation and it is 100% owned by Thamsanqa Ellenburg Manzi, he holds a Bachelor of Commerce in Business Management from North West University (NWU). After he completed his degree Thamsanqa ventured into numerous businesses where he gained a 12 years’ experience in business management. He sits in various boards as a director and as a Non-Executive Director .The business started to operate its two stores in January 2010 that is grocery store and cosmetics store. Mr. Manzi is assisted by his wife Portia Manzi who manages the cosmetic store on a full-time basis. The stores are located adjacent to each other at Bophelong Shopping Centre in Bophelong, Vanderbijlpark. The client has big dreams about His business especially his staff members.

In December 2012 the grocery store added two sections i.e. the butchery and hot foods. The owner invested money from the business proceeds to set up the two sections. The shift of funds had created a financial void for the business hence Ola Superstores approached GEP for financial assistance to purchase butchery equipment, catering equipment, stock for the entire business as well as cameras to improve security. This was verified by Post Investment all the required equipment’s were indeed bought.

CHALLENGES THAT FACED THE COMPANY

Lack of enough stock
Load shedding crippling the business operation especially since the business does not have a generator. The generator is estimated between R250 000.00 and R450 000
The client plans to use the money won from the competition to order more stock and refurbish some parts of the shop.
TEA money was used to settle GEP’s loan

SOLUTION

Grace Period facilitation
Facilitation of Service Provider Repayments

RESULTS

GEP facilitated Pick n Pay shop conversion

MULISA WANGA GENERAL DEALER

BACKGROUND

Mulisa Wanga General Dealer is a grocery and a fast food outlet that has been operating informally for more than five years, before registering formally as a Private Company. It is 100% black female-owned and managed. The company sells grocery, fast food, frozen chicken pieces and airtime. It is renting premises in Chiawelo, Soweto where it pays monthly rental. The business is one of Micro financed companies that are part of Makro-GEP Pilot Project. There are two Shop Assistants, both of them do not have qualifications but they have a working experience in general dealer’s outlets and the owner has been running businesses for more than 20yrs.

CHALLENGES THAT FACED THE COMPANY

There is no financial system.
The owner was still using old cash register which is not fully function
The owner needed to be trained on pricing and costing (owners request)
The current Point Of sale was not fully functional
The service provider who assisted the client with bookkeeping had a challenge with the books that the client uses, it wasn’t easy to follow and find information.

SOLUTION

Gep assisted Mulisa Wanga with bookkeeping and a point of sale financial system

RESULTS

The business had increased its monthly turnover per month and enabling Mulisa Wanga to pay off the loan.

AERIEL PROJECTS (PTY) LTD

BACKGROUND

Aeriel Projects (Pty) Ltd is a business that is wholly owned by Busisiwe Violet Xaba. Busisiwe has a Public Relations Diploma from Regent Academy in London, United Kingdom. She began her formal employment in 1995 in the banking industry. She was involved in several junior positions for local banks working as Saving and enquiries officer for First National Bank, Credit Consultant for Nedbank and Telesales Consultant at Standard Bank. Busisiwe went abroad to London in 2002 and joined Abbey National Bank Plc as a Customer Manager. She went on to hold various positions with Nationwide Building Society, National Westminster Bank as Customer Service Manager. She returned back home to South Africa in 2008 and worked for Tshikovha Environmental and Communication Consulting and an Account Support Officer.

CHALLENGES THAT FACED THE COMPANY

In January 2014 the business was awarded 3 medium term contracts by Eskom, one for bulk maintenance and two are supply and delivery contracts. The maintenance contract is valued at R60 million and is divided amongst four areas in the Eastern Cape namely, Port Elizabeth, East London, Queenstown and Umthata. The supply contracts awarded were for welding consumable and general consumables.

Eskom required the services as and when they are needed and as per required quantities at a time and does not strictly adheres to the stipulated quantities, pricing schedule and lead times. Aeriel Projects had already completed some work when approaching GEP. The purchase orders are requested as and when the need arises and therefore it is impossible for the business to anticipate and therefore provide a financial plan for them.

SOLUTION

The client was loaned with a revolving loan facility by GEP based on the frequency and amount of the orders.

RESULTS

The business has grown and opened a boutique in Newtown. Post Investment is also in a process of assisting the business with Gap/Needs  Analyses.

DIAGNOSTIC VIEWS

BACKGROUND

Diagnostic Views is a radiology practice based at Shop No 006, Management House, 38 Melle Street, Braamfontein, Johannes- burg. The company co-owned by Mr. Jackson Lebogo and Mr. Lehlohonolo Majoro who are both qualified Radiographers. Mr. Majoro is a 50% shareholder while Mr. Lebogo is both director and shareholder of the company, holding equivalent shares as Mr. Majoro. The company was registered in 2013 but only started operating on the 2nd of February 2014. The owners of the company have contributed R689 141 to date. The capital was used to purchase an office based X-ray machine and other office equipment. Currently the practice has one digital X-ray machine and requires more X-ray machines to service the new clientele.

CHALLENGES THAT FACED THE COMPANY

Diagnostic Views needed funds to increase the assets capacity of its radiology practice in order to meet the increasing demand of mobile X-ray clinics. The business started with one X-ray machine that was based in the radiology practice in Braamfontein, however, in June 2014 Lonmin Platinum procured the service of Diagnostic Views to conduct lung X-ray for 1500 mine workers who’s medical aid had expired. The company had to take out the X-ray machine from radiology practice and put it into a converted mobile X-ray trailer which they bought for R140 000. While the company was still busy with Lonmin Platinum project, the department of Military Veterans procured Diagnostic Views radiology services for health and Wellness for the month of August and September 2014. This resulted in the company resources being stretched beyond the company’s means. The Lonmin project was temporary suspended in order to deal with the second project.

SOLUTION

GEP provided financial support to Diagnostic Views with an amount of R1 406 298. The funding was used to procure X-ray machinery that would enable the business to cater for more clients.

RESULTS

Due to GEP’s intervention, Diagnostic Views was able to secure three contracts from Correctional Services, Group Five and Medupi Power Station (3 year contract). Diagnostic Views will continue to receive Post Investment Assistance from GEP.

WYSE WEST MANUFACTURING

BACKGROUND

Wyse West Manufacturing Cooperative was established in 2012 by the Randfontein Local Municipality (RLM) as a business involved in the manufacturing of bricks. The business currently operates from rented premises with a lease agreement of R8400 per month. This company targets local community members, government departments, building contractors, construction companies, cooperatives that have been awarded contracts as well as other businesses operating within their vicinity. The company has employed six members who fulfil various tasks in the company. Wyse West is registered in the RLM’s database as one of their development projects, which subsequently markets the business to various stakeholders. In addition, RLM has provided the entity with a start-up capital to purchase stone, sand and cement. WG Wyn, Drift Dand and RTC Cement sponsored the business with R430 000.

CHALLENGES THAT FACED THE COMPANY

GEP did an assessment on the company’s operations and found gaps with regard to the marketing strategy, human resource policies and procedures, quality management system, financial management system and training (basic business skills, customer care, sales and marketing, costing and pricing, practical tendering, basic financial concepts, project management).

SOLUTION

GEP provided business development support based on the assessment findings report. Whilst the company currently uses manual financial records, it will be assisted with an electronic financial management system. GEP further provided exposure through exhibitions at the Rand Easter Show and the Thebe Exhibition.

RESULTS

The business turnover increased from R70 000 in 2013 to the current R210 000. The company had employed additional six people bringing the total number to twelve.

MAHLAKISE CAFE

BACKGROUND

Mahlakise Café Cc is a 100% black owned company based in Alexander, North of Johannesburg. The entity is owned and managed by Mbopha Mashigo. Mr. Mashigo is a member of the Alexander Greater Chamber of Commerce. The entity is a mini retail store that sells fast foods, groceries and beverages to the local community and the surrounding areas. It started selling fish and chips but has since grown into a mini retail store and restaurant. This business operated from the family-owned property and does not pay rent but pays water and lights to the municipality. The business is located at a busy intersection close to schools and churches. This factor gives it an edge over its competitors. Future plans for the business include opening another retail store which will include a butchery. Mahlakise Café employs six staff members and has its own transport for sourcing stock and delivery. Mr Mashigo has invested R20 000 in the business that was used to purchase two register machines, catering equipment and upgrades to the shop. The business has no marketing material except signage sponsored by Coca Cola. The other advantage to this retail store is the FNB ATM found inside the store.

CHALLENGES THAT FACED THE COMPANY

This company was operating without a business plan. They had a desire to grow the business but lack of funding was a challenge. Similar to other small business businesses, they were using a manual system to keep their records. The area they were operating from was not re-zoned for that type of business.

SOLUTION

GEP assisted by developing a business plan which resulted in sourcing funding. As a result, more outlets have since been opened around Alexander. GEP intervened by provid- ing Township Business Revitalisation programme at the costs of R40 000, 00. The money was used to purchase tables, chairs, a fryer and ice-cream machine on behalf of the business. Tools for marketing such as signage were provided the restaurant was be able to increase its market share. Through GEP’s advice, the business now has a financial management service system installed.

RESULTS

• The business plan was submitted to GEP for funding to open more outlets in the area.

• The funding was approved which enabled the client to open two more branches.

• The company also benefited through our TBR programme for purchasing of equipment. • The business has now employed 12 permanent employees.

• Annual turnover has surged from R200 000 in 2010-2011 to R280 000 in 2014-2015

TSOTETSI FARMING

BACKGROUND

Tsotetsi Farming is a vegetable farming business situated at Plot 45, Dreamland Agricultural Holdings, De Deur. The business was founded by Mrs Tsotetsi, which she now manages with her husband at the farm where they also reside. Mrs Tsotetsi had been operating the business on a smaller scale due to the lack of irrigation equipment and insufficient water.

CHALLENGES THAT FACED THE COMPANY

Funds were required in order to assist her in expanding the business to take full advantage of the scale benefits.

SOLUTION

A loan of R256 183 was approved in April 2014 to pay for small equipment such as borehole drilling, irrigation equipment, fencing, operational costs and some contingencies. A six month grace period was granted, after which monthly amounts of R8720 over a period of 36 months would be payable. The loan amount was meant to cover two planting cycles of various vegetables, including; cabbage, carrots, beetroot, squash, watermelons, beans, spinach etc.

RESULTS

An amount of R130 318 was disbursed and the client has since indicated that she doesn’t need the funds for the second cycle anymore. These vegetables would be sold to a fresh produce market in Vereeninging, local funeral services, as well as local hawkers and individual buyers.

RAND WEST BRAKE & CLUTCH

BACKGROUND

The Rand West Brake and Clutch started operating in 2010 and was registered in 2011 as a Close Corporation. The business is owned by Mr. Thabo Linus Sihlangu. Through the help of his family, Mr. Sihlangu bought a Jewellery franchise. He bought and distributed jewelry from 1997 to 1998. In 1999, he inherited the family business, a taxi and transport business operating within the local routes between Randfontein, Joburg and North West. The business then expand- ed to include gross boarder transit between Westonaria and Musina in Mozambique, but due to the escalating running costs and the complexity of the passenger transport industry, Mr. Sihlangu subsequently exited the business to take advantage of the networks and opportunities established within the vehicle repairs and spares fitting industry. The services offered by the business are brakes and clutch supply, repairs, fitting & maintenance. It also does reconditioning of old brakes & clutches to resell them. Major clients currently include Wesbank Auto and the West Rand District Municipality (WRDM). The company operates within the Central Business District (CBD) in Randfon- tein Town and has the capacity for 18 light-duty vehicles. The monthly rental is R7200 (R4200 for workshops and R3000 for the office space. It also caters to residential clients from the surrounding areas and to lesser extent local taxi drivers. GEP provided business development support and the company received marketing material in 2011. In addition, GEP assisted 2013) through GEP assistance. The business buys parts from reputable suppliers that sell quality products at discounted rates. The following are some of the suppliers that is Safeline, Sachs, KBC and Luk Clutches. The auto repair and maintenance industry is highly competitive with a variety of players. Rand West’s core competitive advantage lies in its ability to deliver superior services and good customer services. In addition Rand West has been recognised as an accredited fitment and service center by major insurance and fleet management organisations. The company is registered with Innovation Group, Motorite Insurance Administrators, Wesbank Auto and Standard Bank Fleet. The company has invested approximately above a million Rand in machinery, equipment, vehicles, office furniture, property development, security, parts and workshops etc. The amount also includes money spent on outsourcing some equipment they do not currently have. Rand West employs over 10 employees. Through the assistance of GEP the company was able to access the services of a specialist to conduct property valuation in 2014 in order to acquire a property for expansion purposes. The expansion will increase the vehicle handling capacity as well as efficiency to deliver quality services to the clients.

CHALLENGES THAT FACED THE COMPANY

The company lacked Human Resources policies to ensure compliance with Labour Relations Act. The business did not have sufficient equipment, financial support, property valuation and Business development training.

SOLUTION

GEP conducted a thorough assessment of the business operations and the owner was advised to implement interventions provided by GEP. Those interventions were in the form of marketing tools and electronic financial management systems. The market- ing project consists of signage and other printed marketing material. The owner and team members were also advised to attend GEP training to further develop their basic business skills. The property valuation report was able to assist the company to acquire funding from GEP financial support to the value of R1 379 412. Renovations are currently underway at the new property to finalise the workshops in terms of erecting the structure and roofing.

RESULT

The business turnover has increased from R300 000.00 in 2013 to R1 800 000.00 in 2014. By acquiring the property the company was able to save R4200.00 in monthly rental, which will now go towards the payment of GEP loan. The property also provided a sense of security since the company now owns it. Additional machinery will also supplement the capacity to deliver good quality services and products. The company now employs about 10 people.

FAST CATCH SECURITY AND TRAINING SERVICES

BACKGROUND

Fast Catch Security is a 100% black owned company operating from a Roodepoort based office since February 2014. The entity is owned and managed by Thabo Alfred Mphothe, who after completing matric obtained various security certificates including firearm and dog handling. Mr Mphothe has also received PSIRSA certificates for grade A and B. He then decided to start his own business in security which provides services in security guarding; both armed and unarmed, special event security, armed response and movable assets protection.

CHALLENGES THAT FACED THE COMPANY

As a startup, the company could afford purchase of security tools and uniforms. It was operating without Private Security Regulatory Authority (PSIRA) accreditation, which is a legal requirement for any security company that wishes to operate. There was no marketing tools.

SOLUTION

GEP provided business development support and the company was able to register with PSIRA, and obtained short security contracts including a four month contract with SKS Business Solution for a night shift guard from July 1st 2014 to November 30th 2014. Fast Catch Security also secured a one month contract with a car rental company for a day and night shift guard. In addition, GEP disbursed an amount of R9000, 00 a community fund to purchase security tools such as handcuffs, batons and uniforms. Other marketing material such as pull up banners, business cards, signage boards and branded beret and reflector jackets were also purchased.

RESULTS

Due to GEP intervention, the company has employed two permanent staff and marketing has improved. Compliance mechanisms with PSIRA regulations have been introduced. And all security guards are using proper protective clothing.

KWAZO ENGINEERING (PTY) LTD: SUCCESS STORY

BACKGROUND

Kwazo Engineering (Pty) Ltd is a 100% black owned project management , fabrication and consulting company that specialises in executing mechanical , civil, structural and electrical projects.

The firm was founded in 2003 as a closed corporation and thereafter in 2005 upgraded to a private company. The company employs several qualified and dedicated engineers in various fields of specialists who are suitably experienced in their respective fields. Kwazo Engineering (Pty) Ltd also employs one administration staff and two site personnel on a fulltime basis. The business is operating from rented premises in Alberton and there is a lease agreement in place.

Kwazo Engineering (Pty) Ltd has successfully completed projects and established good relations with organisations such as Eskom, Pikitup, PRASA, Transnet Freight Rail, Aid Safe Waste, Rand Water, Biwater Transwerk, Johannesburg Roads Agency and Johannesburg Water. Due to capital constraints, Kwazo Engineering (Pty) Ltd applied for funding at GEP in the amount of R5 000 000.00 in order to sustain the business. The finance was approved and disbursed.

CHALLENGES

Kwazo Engineering (Pty) Ltd currently has both the technical and human resources capacities that are pre-requisites to expanding the business operations. The main anticipated challenges to expanding the business operations through taking advantage of the diverse business opportunities pertains to securing sustainable and optimally structured funding arrangements. Unfortunately the bulk of the privately owned financial institutions in the country are unwilling to structure optimal financing arrangements for SMEs which will enable them to expand their business operations and simultaneously create additional employment opportunities.

The work that is done and supplied by Kwazo Engineering(Pty)Ltd is of a special nature thus it takes time and testing thus funds need to be available for cashflow and other new projects

CURRENT PERFORMANCE

Thanks to the funding from the GEP, Kwazo Engineering (Pty) Ltd has thus far been able to successfully execute all of our business contracts and have also been able to timely service the diverse orders from clients. Consequently Kwazo Engineering(Pty)Ltd have been able to consolidate its existing business relationships with all of its clients and simultaneously we have also managed to secure new business relationships with clients in the mining and petroleum industries. Kwazo Engineering (Pty) Ltd has retained the jobs of all of its employees and is t to add a minimum of (8) eight new permanent jobs in the coming months as the move to increase internal human resources capacity to cater for the growing contracts book. The business is also looking to expanding its mechanical engineering operations in Gauteng and other provinces in South Africa.

Thanks to the funding from the GEP, Kwazo Engineering (Pty) Ltd has thus far been able to successfully execute all of our business contract(s) and have also been able to timely service the diverse order(s) from their client(s). Consequently Kwazo Engineering has been able to consolidate its existing business relationships with all of its clients and simultaneously have also managed to secure new business relationships with clients in the mining and petroleum industries. Kwazo Engineering (Pty) Ltd has retained the jobs of all of its employees and we are set to add a minimum of (8) eight new permanent jobs in the coming months as the business move to increase its internal human resources capacity to cater for the growing contract(s) book.

GEP AND RELATED ASSISTANCE

Kwazo Engineering (Pty)Ltd has continuously received Post Investment Assistance from GEP to assess the process And the stage of our Investment.Business Development Support or mentoring will be recommended.

LULATEC

COMPANY BACKGROUND

Lulatec is a 100% black owned and has employed Previously Disadvantaged individuals in all areas of the business. We currently have trained and nurtured 70% of our Human Capital requirements from people who are geographically closer to our operation.

Whereas they acknowledge the desire to take advantage of opportunities available to black owned business ventures in Southern Africa Development Community (SADC), we believe that our biggest selling point is active, hands-on participation in the manufacturing industry, as opposed to passive investment.

Lulatec is a Structural Steel Products Fabrication Company situated in Johannesburg, South Africa. They are one of the select numbers of Steel Manufacturing Companies which provides high technology solutions in the Fabrication environment. We also offer Powerlines Construction Companies with bird diverters/guards solutions and Acrylic Pole Covers for streetlights poles.

The business is owned by Jabu and Molebatsi Ndleve and is situated in Edenvale, East of Johannesburg.

OVERALL PROJECT SCOPE:

Lulatec (Pty) Ltd required a loan of R1.9 million for expansion, meaning buying additional machinery in order to improve their processes in terms of quality products to the customers and efficiency in the production.

GEP’S ROLE:

GEP assisted the client through approving a loan amount to the value of R1.9 million and since then, the business turnover has improved and are sourcing new clients and even bigger contracts. With the competitive edge that GEP has through Aftercare, further interventions (non – financial) interventions were identified where the client was assisted with the design, development and implementation of a full turnkey ERP system.

OUTCOMES/BENEFITS ACHIEVED:

The ERP system enabled the client to efficiently operate the plant in terms of synchrony and using the Bill of Material (BOM) to correctly identify exactly what items go into the finished product, also this will assist in the ability to know the reorder point of the stock. The payroll module embedded in it also assists in electronically quantifying the labour hours and match them to the salaries/wages. This has in turn enabled the company to effectively manage their financial record with regards to expenditure as it will be a full turnkey ERP system.

ROCKVILLE SUPER SPAZAR (PTY) LTD

BACKGROUND

Rockville Super Spaza (Pty) Ltd is a 100% black female-owned mini grocery retail outlet based in Rockville, Soweto.

The business was started by Zandile Ganzini, a member of South African Spaza and Tuck shop Association (SASTA). It operated informal until GEP facilitated the process of formalising the business. The business was then formally registered in 2013.

COMMUNITY FUND

GEP assisted the business with Community Fund to the value of R9 000.00. The funds were used to purchase stock which improved the business turnover from an average monthly turnover of R2 300.00 to R4 200.00.

MICRO FINANCE

GEP further assisted the business with a Micro Finance to the value of R13 000.00 to purchase the equipment.

CHALLENGES

The challenges faced by the business are lack of financial management skills and stock management system however GEP has assigned a mentor to assist the business in order to grow progressively.

GEP AND RELATED ASSISTANCE

The business is continuously receiving Post Investment Assistance from GEP to assess the process Of the business.

AGANANG TRAINING CENTRE AND MULTI-PURPOSE COOPERATIVE

BACKGROUND

Regina Sello, the chairperson of the Co-operative studied for a Catering and Sewing course in Randfontein. She also attended a Leadership course with the Institute for Democracy in South Africa. In 2006 she further attended a Clothing manufacturing and Flower arrangement course with the Department of Labour. Regina has been an entrepreneur since 1990 running her own sewing business but decided to form a Co-operative in 2009.The other members of the Co-operative also take part in the daily operations of the business. Some of them do not have much experience in the clothing manufacturing industry but have shown interest to learn on the job.

Aganang Training Centre and Multi-Purpose Primary Co-operative is a business that manufactures school uniforms, curtains, personal protective clothing and does silk screen printing and embroidery. The Co-op started operations in 2009 and it is based in Mohlakeng township. The Co-operative has five (5) members. The business’s customers are the general public around the West Rand, schools, mining companies and the local government. The members have invested funds into the business to buy basic equipment. The equipment comprises straight machines, over-locker machines and cutting machines. The business is operating from rented premises in Mohlakeng. It does not develop any new products but manufactures and improves on what is already available in the market. The business has competition around the area in other Co-ops that are in the same industry. Temps are sourced when there are contracts to execute. The business has successfully completed contracts to supply school uniforms for the Gauteng Department of Social Development.

CHALLENGES

The Co-operative faced two major challenges namely; lack of marketing material and lack of a financial management system.

SOLUTION

After a thorough assessment of the business operations, various gaps were identified and a number of interventions were suggested based on priority. A marketing material project was implemented which consisted of signage, business cards, fliers, brochures and other printed marketing material. By implementing the financial management project, the Co-operative is now able to generate their own monthly management accounts.

Furthermore, the Co-operative benefitted from GEP’s grant funding, Co-operative Assistance Programme, which was used to acquire more equipment. A business plan was also developed which was used to apply for a Co-operative Incentive Scheme which is dti’s grant funding programme to assist in acquiring more equipment. The business has access to a number of GEP offered training programmes such as basic business management skills, customer care, sales and marketing, costing and pricing and practical tendering.

RESULTS

After the successful completion of the marketing material project and Cooperative Assistance Programme Co-ops turnover doubled in the financial year ended March 2014. The Co-operative has also created two more job opportunities and provides training to local community members.

IMPACT

The Co-operative is now able to manage their finances properly, have more manufacturing capacity through the acquired equipment, markets the business more effectively and its turnover doubled in the 2013-14 financial year.

CONTACT INFORMATION:

Ms. Regina Sello

Cell: 0837304372

YNF ENGINEERING

BACKGROUND

YNF engineering is a level 1 BEE accredited supplier in the armature winding fraternity. As a solely 100% black female enterprise in its industry, YNF has come a long way from its humble beginnings in a one room 200m² workshops facility comprising of only four employees. Under the watchful eye of visionary entrepreneur Mr. Fritz Orren and with the support of his wife Mrs Natasha Orren, YNF has grown from strength to strength, and is today a multi-million rand entity. The company was first established in 1995 as a 50/50 partnership by the Orren couple and is based in Roodepoort, Johannesburg. The company initially started out with a focus on the manufacture and reconditioning of raw materials in the form of slip rings, commutators, flexes, rotor bars, pole shoes, field coils and brush boxes, this still remains to the company’s pride and joy.

OVERALL PROJECT SCOPE:

In October 2013 Aftercare was tasked with a responsibility/exercise to assess the current operations of the BWO businesses from the list that was supplied by Transnet. These businesses are current suppliers of Transnet and are registered in their supplier database. The aim of this exercise was to develop the “AS-IS” end to end business processes for each supplier, once that completed the gap analysis would then be extracted and possible ways of improving the existing processes be recommended “TO-BE”, With the overall intention of improving the current operations in order enable these small businesses to compete with their peers within various industries.

GEP’s ROLE:

The client was assisted with the acquisition and implementation of a Syspro System, this is a ERP system.

OUTCOMES/BENEFITS ACHIEVED:

It is expected that The ERP system will enable the client to efficiently operate the plant in terms of synchrony and using the Bill of Material (BOM) to correctly identify exactly what items go into the finished product, also this will assist in the ability to know the reorder point of the stock. The payroll module embedded in it will also assist in electronically quantifying the labour hours and match them to the salaries/wages. This will in turn enable the company to effectively manage their financial record in terms of expenditure as it will be a full turnkey ERP system.

MOLOKO BRANDS CC

BACKGROUND

Moloko Brands CC is a furniture rental company specializes in renting furniture for special events. The events they cater for include conferences, conventions, meetings, product launches, political rallies, fashion shows and music launches. Their product range comes in heavily contemporary styles and it is perfect for both indoors and outdoors events. They offer all sorts of chairs, ottomans, tables, sofas, cocktail tables for rent, couches, barstools, cocktail tables and chairs, plinths and a whole range of accessories such as cushions, heaters, carpets and much more!!! Their LED (Light Up) furniture is proving to be an enormous success and highly sought after. They also give help with the exact design of an area for the given event. This way they perfectly count out on what furniture they offer for the exact event. They have realized a passion for providing stylish furniture for events and the pursuit of the ultimate space where people would want to “lounge around”.

CHALLENGES

Moloko Brands CC had approached GEP in 2013 to assist with funding in order to be able to purchase an existing Lounge Around (Pty) Ltd’s assets. The loan amount of R1 150 000 was approved. Lounge Around was founded in 2005 by the founders and owners of Liquid Chefs in Rosebank. They sold this business in order to concentrate only on Liquid Chefs.

CURRENT PERFORMANCE

Mrs Didi Waleng Friedman is grateful to GEP for believing in her and for funding her business. She attributes her success to the support of GEP and that of her Mentor-Husband-Partner. Today she is a proud owner of this successful business. Moloko Brands was chosen to furnish the Lounge for the Heads of State at the Presidential Inauguration in May 2014.

GEP AND RELATED ASSISTANCE

Moloko Brands CC has continuously received Post Investment assistance from GEP to assess the process and the stage of GEP’s Investment.

ANNA AND HERBERT TRADING ENTERPRISE CC

BACKGROUND

Anna and Herbert Trading Enterprise cc is a family business established by Mr Herbert and Mrs. Annah Nkosi in 2006. The business started its operations in January 2009. Herbert matriculated in 1995 in Kwa-Thema and then worked for Atlas Copco as a Machine Operator from 1996 to 2009. During his employ at Atlas Copco, he obtained the following certificates and a diploma: machine setting and programming from Hi-Tech, fire fighting, and auto cad from Intec College, diploma in computer programming, system analysis and design also from Intec College. Ms. Nkosi oversees the administration of the business. Anna and Herbert Trading Enterprise cc operates from the owner’s home in Kwa-Thema.

It offers painting services to the local community, schools, corporate businesses, old age homes and the local municipal premises. It also manufactures building and paving bricks and sells them at competitive prices. It has a one-year renewable painting and building maintenance agreement with a local company. Anna and Herbert Trading Enterprise cc purchases its paint from a local suppliers in Springs and Benoni.

It employs 14 people. They have protective clothing such as dust masks, safety goggles, fall arrest/safety belts and boots. The owners investment in the business was used to acquire the following assets: compressors, spray pots, roll pipes, spray guns, step ladders, scar folding, a computer and a printer, paint sprayer, high pressure cleaner, delivery vehicle with a trailer, fork-lifter, brick making machinery, pan mixture, and LS spray painting machine. The business records transactions on a spread-sheet but have outsourced the services of an accounting officer. GEP developed marketing tools for the business. The pamphlets are distributed in the post boxes of the local community. It has also registered in the databases of Ekurhuleni Civil Works and Further Education and Training College for marketing purposes.

The business has a Construction Industry Development Board grade 1 certificate and a Level 3 BBBEE certificate with the assistance of GEP. The owners have developed their own business plan. The business intends to expand into paving, congregated iron sheeting and IBR sheeting. The Ekurhuleni Metropolitan Municipality has approved the use of the vacant land next to the owners’ home, though the lease agreement is not yet been finalised. DTI has approved a grant from which brick manufacturing machinery was purchased.

THE CHALLENGES THAT THE COMPANY WAS FACING WERE:

• The company did not have Marketing Material.

• The company did not have BBBEE score card verification

• The company had insufficient equipment

SOLUTION

The company was first contacted and assessed in January 2011. The Business Relationship Manager exposed them to the benefits of being in association with the GEP and the role that it could play in assisting the company.

GEP was able to assist Anna and Herbert Trading Enterprise in the following way:

• Compiling findings in the form of an ACO (Assessing Company Operations)

• Developing marketing material

• Implementation of BBBEE score card verification

• Implementation of Township Business Renewal Programme

RESULTS

GEP-Ekurhuleni’s assistance has brought about the following benefits for Annah and Herbert Trading Enterprise cc:

Exposure: The marketing material produced by GEP enabled Anna and Herbert Trading Enterprise to get exposure and created more awareness of the company, which resulted in the business acquiring a painting and building maintenance contract with a local company. The business expanded into brick manufacturing and has secured a land through Ekurhuleni Metropolitan Municipality.

Impact on the number of employees: Annah and Herbert Trading Enterprise cc have shown significant improvement and growth; the company started its operations with a few casuals and currently has employed sizeable number of permanent staff.

Additional Assets: The business has since tripled their asset holding.

Turnover improvements: has increased by over 40%.