Things don’t always go according to plan. I guess we all learned that lesson when we got smacked in the face by this Covid pandemic. Countless lives have been impacted negatively, but that’s not what this post is about. Sure, it plays a role, which forms part of this story.
Like I usually prefer doing, let’s backtrack a bit to create some context before we get into the real meat of this post. THE FIRE!
Early in 2019, I lost my job. Legally, I can’t disclose any details, so let’s just say we couldn’t agree with the change in culture. I’m sure that’s just fine, haha. At the end of it all, I was forced to start my Own Business, which now competes in the same Market.
When that whole rigmarole started, one of our main Customers said they want to help me and will assist with getting my feet off the ground and into the journey of Business Ownership.
With all my years of experience in the Composites Industry, from a Manager’s side, I felt I had the knowledge, relationships and experience to do it, which I did.
The first 6 – 8 months were devastatingly strenuous. Although the said Company did help by providing me with Credit Terms, the biggest stumbling block was Stock. There simply wasn’t enough! In my Industry, margins are small so volumes are critical.
They did, however, introduce me to their Direct Supplier that came to South Africa for a few days. After introductions, some Company visits and a few meetings later, he wanted to help me as well, by putting up Stock and sharing in the profits. This was a completely informal arrangement, but definitely my saving grace.
I started Importing Directly, which not only made me more competitive but also gave me the volumes I required. I had a limit of R 1.5 million to play around with, which was enough to get me off the ground.
A few Containers of Stock, plenty of stress and loads of grey hairs later, we were building a solid foundation and stamped our authority in the market.
Just as things seemed to be drawing towards what could be a successful business, Covid came around took the wind out from under our sails.
Needless to say, for such a young Business, it was a devastating blow. Lockdowns forced our Industry to stop. There were only one of my customers that managed to get up and running again early on since they Manufactured Products for the Medical Industry, which was an Essential Service.
Further into Covid, as Businesses were able to resume, with limitations, most of the Industry was only operating at around 30% capacity. Sales were slow and we just went into Survival Mode.
It took a while for us to get back onto our feet again, which we eventually managed to do. I tapped into some Markets I didn’t usually target, which helped during the difficult weeks, and we eventually got the Business to a stage where we could see some Profits.
“YAY!” or so we thought, at least.
2 solid months of sales later, barely getting a taste of freedom, then the unthinkable happened.
Our Supplier’s Factory burnt down! LITERALLY! This was last year towards the end of August. We received a Force Majeure letter, which left us in an extremely difficult position.
We managed to buy and sell from Other Producers; however, they were my Competition in the Market. Needless to say, prices were inflated, therefore Sales Plummeted, Margins were smaller and we were digging into any Savings we had. Ugh…
People in Business like saying, “You need to pivot.” I pivoted as much as I could, but there wasn’t much pivoting to do.
Months later, their European Partners sent Stock through, which landed on our shores in December when the Industrial Sector shut down.
Fast-forwarding to the present, we have some Stock at hand. The prices aren’t quite where it needs to be and we don’t have all the line items available, which is how we managed to build towards a sustainable income. We are, however, in a better position and starting to feel more confident about the future.
There’s a slight uptick in Sales, we’re positive and a focus on being in action is at the forefront of what we’re doing. There’s simply no giving up. We’ve got this!
The Manufacturing Facility is aiming to be in Full Production by the end of March, which means we’ll have a complete arsenal at our disposal again. Currently, the Competitors are riding the wave, implementing increases at will. Short-term thinking, in my mind. As soon as I’ve got all those line items on hand, it’s going to be game on! Fair prices, great service and kicking back like a mule is on the cards.
Tik Tok, Tik Tok, Tik Tok…
Next Reality Check-In:
The 'Accident'
Oreo, The Staffie
