Coen Welsh | Nov 14, 2017 | 0
A small business loan opened the door to go from meat vendor to formal butchery
“When it comes to business, nothing is ever easy but the key is to stay positive and always keep pushing towards your dream” said the owner of a growing butchery in Keetmanshoop, Faustina Matamu when she picked out the most important elements for an SME owner when taking the big plunge to go from a micro enterprise to an SME.
Faustina has been operating her Keetmans meat supply business on an informal basis when local demand in her small market prompted her to consider going bigger. This lead to the establishment of Mudi’s Butchery.
“We have been in business for 10 months and have managed to become a well-known enterprise within our town and community for being the cleanest and most affordable. While we are still re-paying the loan, we are also saving at the same time, so we can open another business soon” she said.
She was able to enter the formal business world after submitting a funding applicatioin to the SME division of FNB.
“It was a great learning curve as it taught us the value of preparation and patience as we were guided through the entire process of applying for the loan. This helped us to add to the business plan we already had and made it more precise and more detailed which in turn enables us to run the business smoothly” she elaborated about the her humble, and often obstructed, beginning.
The money needed to fit out a proper butchery was too much for Faustina’s budget. At first she entertained the idea to finance the start-up costs through a personal loan but this was viewed as risky. She realised she had to obtain properly structured funding to start a butchery that is sufficiently equipped to operate at a certain output to enable her to achieve her sales targets.
An SME loan was seen as the best option as the best option as the amount required to furnish the business was quite high and a personal loan would not have been enough to secure all the equipment needed to establish a business that could be successful within the current competitive market.
Today, Mudi’s Butchery is up and running with a sound and credible reputation for quality products and a clean shop. She acknowledges the key role the right advertising played to make her community aware of her butchery.
Her recommendation for prospective business owners is proper advertising and being unique in terms of the quality and service, and to add something to the market that is lacking.
She recommends: “Not doing proper market research results in new businesses copying existing ones and this causes them to struggle in making an impact, because people will rather stick with what they know than go for something that’s new and not yet established. It’s very important to be a bit different and to provide something better than what is currently in the market. It is vital to be open and to communicate with other business owners to gain some knowledge from their experience.”
Always try to improve on what you plan to offer by thinking outside the box and never be afraid to go to your local bank or financial institution to ask for advice. Advice from others can make your business plan stronger and can help you be successful” she concluded.