Nrth West on business rescue
Madilla upholstery company benefit from Business Rescue
Potchefstroom based upholstery and manufacturing firm, Madilla Projects has seen the company grow, diversify and become more efficient after it benefitted through Department of Economic Development, Environment, Conservation and Tourism’s Business Turnaround and Recovery Programme.
The company received bed-making machine, tools and equipment of manufacturing furniture such as couches, sofas and ottomans.
Madilla Projects started operating in a slow stride by its Director, Mr Richard Buti, with only one small upholstery machine, has now upgraded its business as they can now produce, repairing more beds and couches. They have now diversify into other areas of manufacturing and this will boost their business as they will be able to create jobs to the local communities.
According to Buti, he had no direction for extra income, until he went to Free State Province and saw someone owning a big upholstering firm and doing well financially. He then started to develop an interest to improve his knowledge in the upholstery and the manufacturing business. He decided to resign from his previous employment to venture into business after seeing that there is more demand for the service in his locality.
“I started by investing R250 000 in the business and that was mainly used to pay rent four (4) months in advance and purchasing of materials. I did not have sufficient information on functional areas of business management like accounting, operations, human resource to mention few as I could have used the savings for the daily operations of the business which include aspects such as transportation, electricity, material and maintenance of equipment. After the first year of operation, the business started to go down due to lack of solid ground in financial management”, said Buti.
He pointed out his appreciation to the initiatives done by department in focusing on rebooting collapsed businesses through its Business Turnaround and Recovery Programme. The business was progressing then Covid-19 came into the picture and introduction of the lockdown negatively impacted in their business operation as they end up closing for (9) months.
“I appreciate the efforts of the Department of Economic Development, Environment, Conservation and Tourism (DEDECT) as the business is doing well and orders are coming at an adequate rate. We have not rested since we received the new bed-making machine and have hired three (3) more employees to meet the demands of our clients. The trio are mainly responsible for operating a sewing machine, cutting material and frame making”.
“I am now transferring skills by inducting my son on the entire operation as he has shown interest particularly in manufacturing. I will be soon passing the baton to him because he is still young and has brought with new trends of marketing the business and effective financial management systems”, said Buti.
He said clientele is increasing because their business is positioned in the busy main road, where-in taxis and cars are passing frequently and their display is visible from a distance. He added that they are now receiving orders from all Potchefstroom townships such as Ikageng, Mohadin and Promosa.
According to Mr Zacharia Dipudi, Deputy Director Enterprise Development in the Department of Economic Development, Environment, Conservation and Tourism, Madilla Projects is one the small enterprises that have been identified to receive assistance through Business Turnaround and Recovery Programme in partnership with Productivity SA. The programme aims to support enterprises facing economic distress, specifically financial and operational difficulties, to prevent job losses or minimise retrenchment of workers.
Dipudi explained that the programme is part of the Memorandum of Understanding signed by the Department and Productivity SA to support all businesses facing operational challenges through various mechanisms, with the aim of assisting them to operate at an optimal level.
The programme will further offer assistance in all sectors that need productivity and competitiveness enhancement assistance; however key priority sectors will include mining, tourism, ICT, manufacturing, village and township economy, public sector and agriculture (Agro-processing and Agro business).
Source: Government of South Africa