Province: KwaZulu-Natal
District/Branch Name: Downstream Aluminium Centre for Technology
Business Name: Fanele Welding & Scaling
Business type: Welding
Background
Mr Njwara runs his scaling business at his home in Nzalabantu No: 566, Mzingazi, Richards Bay Kwa-Zulu Natal. He uses the DACT premises and equipment to complete some of his jobs. His business started operating informally in the year of 2008. Mr Njwara used the skills that he had acquired from his previous employment; SA Scale CO where he worked as a Scale Technician. He started sifting clients of his own where he offered his services at a much cheaper and quicker rate.
Fanele Welding & Scaling manufactures welded products such as gates and burglar bars, but mostly focuses on manufacturing and calibrating scales. The market for scales was very fickle which led to inconsistent income. Mr Njwara realised there was a big gap between him and his clients. Potential clients were not aware of his business because he was trading informally, sometimes missing deadlines of his orders. He did not have the equipment to manufacture his products which led to him having to borrow or rent equipment.
Although the business was in operation Mr Njwara had no system in place for the financial management operations. He did not keep records of the sales he was making which ultimately led to him not seeing whether his business is growing or in trouble.
Mr Njwara did not qualify to apply for financial assistance or bigger projects due to non-compliance and thus he could not progress or further develop his business.
Mr Njwara was also not aware of the different methods of selling his product. He was not aware of the impact that importing and exporting would have on his business. Mr Njwara had limited skills to run his business properly/smoothly.
Intervention / Solution
Mr Njwara was referred to DACT by one of the clients we have. An assessment was done on his business to see if he qualifies to be on the DACT program. He was then taken through a selection process which led to him entering the DACT Incubation Program.
An assessment for development was done on his business; needs and challenges that limited the business growth were discovered. We scheduled workshops and trainings that benefited his business; Quality Training, Business Plan workshop, Marketing workshop, costing and pricing workshop, Tendering workshop, Exporting and Importing workshop, SARS workshop, BBBEE workshop Department of Labor workshop and banks information sessions
DACT assisted Mr Njwara in exhibiting in an SMME Fair organized by The uThungulu District Municipality, which was well attended on the 11th June 2014. The fair allowed 5 of our incubatees an opportunity to exhibit their products to potential clients and potential sponsors. One of the 5 Incubatees was Mr Njwara of Fanele Welding and scaling. Mr Njwara received an opportunity to work with an international company called Precia Molen that wanted to offer him an opportunity of importing aluminium scales which he can resell to his market. DACT then assisted him in getting the registration and accreditation system. He then got his importing number (21501265).
DACT assisted Mr Njwara in entering The Entrepreneur budding competition hosted by the Zululand Chamber of Commerce and Industry. The winner stood to win funding, sponsorships, mentorship and coaching programs that would develop a startup business. Although he did not win, he was on the top 20 that was selected to attend the Quality training at the Richards Bay Protea hotel on the 10th of March ending on the 12th of March 2015
DACT assisted Fanele Welding and Scaling’s business by registering his company, then we helped him open up a bank business account, provided him with marketing material which comprises of a company logo, business cards and business profiles. We facilitated the process of him registering with SARS and getting into the Umhlathuze municipal database.
Outcome/ Results
Please see below Fanele Welding and Scaling’s sales graph
Fanele Welding and Scaling has imported a scale indicator and 2 scales that he has installed for his clients. His business compliance has led him to securing big projects such as securing a tender at the Umhlathuze Water. On the 04th of March 2015 Umhlathuze Water awarded him with 2 jobs worth R18 850.00 to calibrate and repair chlorine scales in Ngwelezane and Empangeni.
The marketing material has given dignity to his business and is now able to personalize his company official documents like his calibration book, quotation and invoice templates
QUOTE/ SMME’s comment
I am very much excited and motivated by the assistance I have received from SEDA. I have grown into a good business man because of the mentorship and coaching, business advice, business exposure I have received from DACT through SEDA. Thank you very much for your assistance.
