Posted by: MaZalet Management Consulting on 03/16/2024

The Beauty Of Self-Reliance Alongside Expert Guidance

The Beauty Of Self-Reliance Alongside Expert Guidance

 Mr. Zulu, the owner of RRTY Tyre Service Centre in Molweni, has a bold dream of establishing a chain of service centres across KZN. He's dedicated, often the first to arrive and the last to leave, determined to defy the odds of business failure. However, Mr. Zulu holds a belief that seeking advice from experienced professionals, networking, or finding mentors is a sign of weakness.

 One day, while reading the Durban Chamber newsletter, Mr. Zulu stumbles upon an intriguing circular business opportunity presented by the Durban Automotive Cluster (DAC) for exclusive trading rights in the automotive market with an investment of R2 million. Despite lacking the necessary funds, Mr. Zulu feels a mix of excitement and uncertainty about the potential for growth and the associated risks.

 As if the challenge of securing financing isn't daunting enough, Mr. Zulu discovers that a major competitor, ABC Tyre Service Centre, will be opening nearby, threatening his business's viability. While this adds to his sleepless nights, he sees the opportunity for substantial growth if he can secure the necessary funds for the circular business opportunity.

 After a long discussion with DAC and the bank, he receives guidance documents. Mr. Zulu initially attempts to secure a loan from the bank without seeking professional assistance. Despite multiple rejections due to inadequate business plans and unclear projections, he remains convinced of his own business acumen.

 Finally, realizing the need for expert guidance, Mr. Zulu hires Mr. Dlamini, a business advisor, to help him prepare a comprehensive business plan and financial projections. Together, they work towards securing the required funding, including exploring options for the own contribution portion like family and friends, crowdfunding, and ultimately, a private investor referred by Mr. Dlamini.

 With Mr. Dlamini's guidance, they refine the business plan and financial projections, while Mr. Zulu works to raise his own contribution, secure a lease, and rectify his credit record. The present challenges include difficulties in raising the required own contribution, but they continue to explore various financing options.

 A stroke of luck arrives when Mr. Dlamini introduces Mr. Khumalo, a private investor who is willing to put up the required own contribution in exchange for equity. However, Mr. Zulu declines the offer, preferring to raise the funds against a bond on his house. Finally, his loan is approved with the condition of DAC providing technical mentorship.

 Excitement builds as Mr. Zulu secures exclusive rights to the opportunity, only to face another hurdle when equipment costs increase unexpectedly. Although the bank is willing to top up the loan, Mr. Zulu opts to extend his bond, which is also approved without hesitation.

 With the financing secured, Mr. Zulu now embarks on setting up the circular business. At the same time he learns that the ABC Tyre service shop has gone bankrupt and therefore it is confirmed that be running two instead of one profitable business.

 The journey has equipped him with new skills and a solidified vision. He acknowledges that without professional help he would not be where he is today. He has turned into an advocate for mentorship programs, and is prepared to point fellow entrepreneurs in the right direction. Walking this journey and experiencing the power of mentorship and perseverance has given him freedom.

 For mentorship guidance in business finance, reach out to Mr Dlamini at MaZalet Group for assistance.

Contact them at 0796398606 [Cell/WhatsApp] or mazaletprojectsconsulting@gmail.com.