Summary

A smart alternative to traditional metal poles, these plastic poles are corrosion-free, eco-friendly, and engineered for long-lasting performance. Ideal for both outdoor and indoor applications, they combine reliability with cost-effectiveness for any project.

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Fully describe the business's activities?

Marketing and sales of plastic poles to the real estate and retail sectors, amongst others.
Client liaison with existing business clients, which include direct clients as well as resellers, such as printers. (telephonic and email).
Identifying new business (e.g. new estate agents), and untapped markets (e.g. fencing).
Marketing and selling activities via different mediums, such as mailshots, cold calling and client visits.
Order taking(phone and email) and invoicing.
Liaison with courier companies and populating the electronic booking system for courier delivery.
Order tracking and confirming client requirements via phone or email.
Providing turnkey services and solutions for specific client needs.
Specification and stock planning with manufacturers.
Logistics management and management of stock production and delivery.

How does the business operate on a daily basis?

Market and sell product to target market via website, Instagram, mailshots, phone calls, and client visits.
Manage telephonic and email enquiries and communication.
Manage independent reseller orders and requirements.
Process orders, data capture, and produce invoicing.
Send/deliver stock to clients country-wide either via courier, or self-delivery.
Visit clients to market, demonstrate, and upsell products.
Identify and contact new potential clients by calling or visiting.
Liaise with manufacturers who produce the product, for specifications, quality control and stock quantity requirements.
Collect stock (weekly or monthly).

What Advertising/Marketing is carried out?

Social media presence includes Instagram, the Website is constantly being updated, and mailshots are regularly sent offering specials and updating clients on new services.
Physical product presence, at show days, outdoor locations, and client activations bring in enquiries.
Direct marketing through physical product demonstrations and agency partnerships.
South Africa’s strong street pole and outdoor advertising culture results in product demand from diverse sectors.
Advertising spend is low as the product is already established in the market and has a wide footprint.

What competition exists?

Suppliers in Gauteng
Polyfence, who cater to the fencing market.
Plastic droppers, who extrude fencing and real estate poles.
Pronto Graphics, a printer who offers their clients printing and signage.
There are suppliers in other provinces, who make steel products.

How could the profitability of the business be improved?

Consider a franchise model, replicating parts or all of the business, locally or nationwide.
This could mean replicating sales and distribution hubs, and/or manufacturing facilities.
Create distribution points across SA.
Avoid formal business premises leasing - the business requires very little space.
Ensure that manufacturers hold stock, without cost.
Use courier services that offer competitive rates.
Have a delivery and production schedule that minimises costs and frequency.

Give a breakdown of staff/ functions/ length of service?

Part time worker counts and packs stock, usually twice a month. (Very basic skills needed).
No contractual obligations exist with staff.
Owner runs the business on a daily basis, requiring roughly 6 hours of time per day, depending on business demand and production cycle.

How involved is the Owner in running the business?

The owner currently runs the business. This can be delegated, as the nature of the daily tasks are not complex.

When does the current lease end?

No Lease.
Business is run from home, and from Manufacturing facility.

What are the trading hours?

Normal office hours-Monday to Friday, 8am to 5pm.
Exceptions are made to facilitate delivery or collection of stock after hours or on weekends, if clients require this-but it happens seldom.

What are the main assets of the business?

1. 2 Moulds: Proper Dropper Pole Mould and The Pole Pin Mould.
2. Stock: 6000 Poles @ cost (includes raw material, manufacture).
3. 1 ton of raw plastic for pole production, and 500kg of raw plastic for pole pin production.
4. 1 Current Database
5. Packaging material (plastic bags for droppers, tape)

Strengths?

Cash upfront business,
Offers products competitors do not offer.
Existing client base and repeat business.
Low marketing costs as product sells itself.
Ongoing business/revenue growth through its innovative nature (new designs, turnkey offerings and broad applications)
The business can be run from anywhere- not geographically bound.
Distribution of stock is mostly done through courier-clients pays upfront.
Highly competitive money generator, due to its quality, eco appeal and pricing.
Type of engineering grade plastic used, makes the poles strong, and of a high quality- resulting in product integrity and repeat business.
High market demand due to signage culture in SA.
High income generator for resellers such as printers and independent sale consultants.
Constant stock availability due to smooth production and raw plastic supply by experienced manufacturer,
Pole design is sophisticated due to it being injection moulded. (no need for fabrication-saving time/costs)
A buyer can choose to outsource production or take over the production process- depending on their capabilities.
A potential buyer hits the ground running'; as there is an established client base, with repeat business on a weekly/monthly basis, providing income from the get-go.

Weaknesses?

Competitors producing cheaper poles.
Steel products are used in certain provinces.
The fencing market has not been developed to its full potential, which could bring in massive orders.
The higher upfront cost of recycled plastic poles compared to traditional steel droppers might discourage price-sensitive clients.

Opportunities?

South Africa and global markets are moving toward eco-friendly solutions, creating a prime opportunity for recycled plastic poles that meet green building standards and sustainability goals.
With the chance to position itself as a leader in circular economy practices, the business can tap into the constant need by estate agencies for durable signage, as well as retailers who use A-frames and droppers for promotions.
The business can grow partnerships with large property groups and retail chains. It can establish a footprint in the SADC region.
Reach into the further international markets would provide an extremely viable cost point with the exchange rate.

Threats?

Competition from cheaper steel droppers and rival plastic suppliers, combined with price-sensitive clients, poses a challenge.
Load shedding, supply chain risks, and rising energy costs could be potential factors.
Economic downturns, and property market fluctuations need to be considered, requiring diversification and resilience strategies for long-term success.