Province: KwaZulu-Natal
District/Branch Name: Downstream Aluminium Centre for Technology
Business Name: Bay Twins Trading (Pty) Ltd
Business Type: Fabrication
Background
Busiswe Shange and Sifiso Sihle Mkhwanazi of Bay Twins Trading (Pty) Ltd run an aluminium fabrication business. They are renting an office at the ZCBF community park and are tenants at DACT where they complete their projects. The two partners started operating their business informally in 2013 in Mzingazi Reserve. The combination of the two partners was the key that has been opening up a lot of doors for Bay Twins Trading (Pty) Ltd. Miss Shange is more focused on the administration and interactions with clients and potential clients of their business, whilst Mr Mkhwanazi is more technically orientated - actively involved in completing projects and ensuring adequate resources to complete all projects.
Bay Twins Trading fabricates products such as aluminium windows, aluminium doors, aluminium garage doors, aluminium gates and also maintenance. The target market for the business has been highly focused on households as the business was still informal and was therefore not in a position to trade with reputable companies. This resulted in the business suffering financial losses due to their clientele refusing to pay or disappearing at times when they were supposed to pay.
Although the business was in operation before entering the DACT programme, the owners had challenges with their financial management. This resulted in them being unable to monitor their sales and therefore could not see if there was any growth in the business. This also affected their ability to apply for financial assistance. The business was also non-compliant in terms of registrations that are needed and this resulted in them being unable to trade professionally.
The two partners were operating their business under a shelter built at their home in Mzingazi. This resulted in them being unable to obtain clients because of limited visibility of the business and therefore they had to rely on household orders. Their marketing was done though referrals and word of mouth and the business has limited tools to get more orders.
Intervention / Solution
Miss Shange and Mr Mkhwanazi were referred to DACT by one of the incubatees (Masihlangane Welders). Assessment and site visit were done on their business to see if they qualify to enter the DACT program.
Due to the challenges that the business had, the Centre scheduled workshops and trainings which included Marketing workshop, costing and pricing workshop, SARS workshop, BBBEE workshop, Department of Labor workshop and banks information sessions.
Bay Twins was given the incubation services which include:
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Financial pack for maintain records and operating formally
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Marketing material to assist with marketing their business
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They were then given an opportunity to use their newly developed marketing skills and marketing material at a Road Show that was held at the Mtubatuba Community Town Hall on the 27th of August 2015.
DACT has assisted Bay Twins Trading with the application to enter the SAB competition. Successful candidates receive mentorship, access to skills training workshops and other business support, as well as grant finance up to R250,000, which will be disbursed upon the completion of certain milestones. The increased focus on Business Development Services is a shift for the Tholoana Programme, which previously only provided grant funding and now provides guidance on making sure that the grant is spent wisely.
Outcome/ Results
With the business being able to keep their financial records, it has become possible to see progress regarding their operations and this is displayed in the sales graph below:
Bay Twins Trading is now renting an office at the ZCBF community park where the business is visible to both household potential clients and reputable companies.
Bay Twins Trading is now compliant with CIPC, SARS and has a BBBEE certificate. This has led to them being qualifying candidates for the SAB Tholoana Enterprise Programme competition where they will be provided with valuable business development support and access to grant finance; and will require full commitment and participation to ensure maximum value. The support programme has commenced and concludes on 31st March 2017, and the grant disbursements will commence once a rigorous due-diligence process is complete, which will take approximately 4-6 months.
The marketing material has given identity to Bay Twins Trading and they are now able to personalize their company official documents like the quotation and invoice templates, the company letter head and emails they send to their clients
QUOTE/ SMME’s comment
We are so excited and so proud of the assistance that we get from DACT. They took our business from zero to hero, so we as Bay Twins Directors like to thank DACT a lot and we encourage them to keep doing the good work that they do.
