22 Aug 2013

Business, they say, is supposed to be hard because if it wasn’t, everyone would do it. The business world is a world where struggle is part of the game, where challenges litter the road to success.

Renowned Canadian entrepreneur, Sarah Prevette, in her advice on starting up a business says: “Business startups are tumultuous evolutions. Things are not always going to go according to plan; there are times when you are going to fail; you’re going to have chaos and you’re going to have uncertainty.

Amidst crisis you need to find a way to rise above to find clarity, adapt, and prevail. Resourcefulness is the single greatest trait you have at your disposal.”

These are probably the words that Mosojane welding specialist, Michael Magandae had in mind when he started his business called Caedro Steel Engineering, back in 2002.

After completing his senior secondary education, Magandae enrolled for a six months course in metal and fabrication at Integrated Field Services (IFS). On completion he got a financial assistance of P60 000 under government’s Financial Assistance Policy (FAP).

“I started the project with only basic equipment such as welding machines, generators, drills and compressors,” said the 35-year-old welder in an interview.

Like any other project, he said his business faced teething problems like finance and lack of operating space. And, when he started the project more than a decade ago he was renting in the village which gobbled all the profits.

“I paid P800 each month in rentals, but considering that I was not making that much in profit, the rent was too much for me. So I decided to find a place of my own to operate from,” he said.

With his own plot, which unfortunately had an incomplete one-roomed structure, Magandae said he then started developing the plot step-by-step from the proceeds of the business up to the current two-roomed structure that he now has.

“I have also equipped the structure with utilities such as water and power,” he said with an apparent air of pride in his voice.

Magandae says from then on his business has been surviving on small engagements such as fitting burglar bars, making grave stands and general maintenance.

His most lucrative tenders are from government where he is often required to fit burglar bars in schools. “Unlike individuals who often engage me to attend to one or two windows, government gives a whole block of classrooms or houses to work on and this rewards better,” he said.

Even though this is not a lucrative market to be proud of, Magandae said his main advantage is that he is the only welder in the area, meaning he has no competition.

Pondering into the future, the welder has bright prospects for his business. He is confident that it can do better if he diverses more into production than just general maintenance.

His plan then is to buy more advanced equipment to improve his annual turnover. He said he needs advanced machines such as roof sheet/tile making machine, wire and barbed wire making machine, among others.

“Most items such as corrugated iron sheets, fence and tiles are manufactured in South Africa, so with this equipment I can be one of the few in the country and be able to supply hardware shops.

He however, said this is still a long term consideration because he still needs to give it a thorough thought as he does not want a situation where he applies for a loan and fails to service it, which might collapse his project.

His other main wish is to have permanent staff in about five years, unlike the current situation where he only engages temporary assistants only when he has a tender to attend to.

Like Prevette stressed, all businesses have challenges, and Magandae faces quite a few. “My main challenge is transport.

I often get tenders outside the village and have to transport my equipment, which forces me to hire private vehicles. This then takes most of the profit,” he said.

In this day and era when there have been complaints of youth projects failing across the country as a result of neglect by the beneficiaries, Magandae’s project is a flower among thorns, and he says his main secret is no secret at all.

“Determination and desire to succeed in life have kept me going.

 I first tried the chicken industry but didn’t do well in that area, so I then shifted to welding and fabrication and since then it has helped me put bread on the table,” he said.

His advice to the youth is that they should not be lazy when going into business and that they should carefully analyse the market and their business ideas before deciding to go for them.

“Business is tough and needs patience. One should not just rush because funds are available,” he warned, saying that most youth make the mistake of rushing into business just because funds are available through various government programmes, and such projects end up failing. ENDS