When one door closes, another is opened. That rings true for Zamfuzo Trading which experienced slow business flow from government and decided to shift operational focus to brick making in 2010. The business was started a year earlier as a civil construction company providing construction consumables and expecting to rake in government business in the town of Bizana in the Eastern Cape. After a few months of slow business from government, the business founder, Mr NZ Ngcabelo decided to change focus and started brick making targeting general consumers. The business picked up speed in terms of income generation, but Mr Ngcabelo felt it was still not performance at its optimal.
Seda was approached to assist with business assessment and the following was diagnosed:
- Zamfuzo was not generating enough revenue and profits to be sustainable
- Marketing efforts were poor leading to a small number of customers
Based on the assessment, new marketing material comprising of signage and product promotional material was developed and deployed around Bizana and adjacent towns. These interventions led to a huge improvement in customer turnover with business income improving significantly.
Mr Ngcabelo was also offered general assistance with general business advisory, focusing advice on how to manage a manufacturing business effectively. The combination of all these interventions had a serious positive impact on the business. In 2010, Zamfuzo was making less than R250 000 per annual in revenues from its brick making operations. This figure has now been increased ten -fold with income of over R2 million at the moment.
Mr Ngcabelo has also seen his workforce numbers increasing more than 70% during the same period from 4 people in 2010 to 14 this year.
“The signage and promotional material have helped the image of my business a lot. I am still hoping for more assistance from Seda,” says Mr Ngcabelo.