Furniture Manufacturer in South Africa Looking for Start-Up Finance

Opportunity Snapshot

  • Country: South Africa South Africa
  • Industry: Manufacturing
  • Stage: Start-up
  • Investment size: $160,000 / min. $160,000
  • ROI: 151% in 3 years
  • Type of investment: Debt, Equity

Investment Opportunity

This is an opportunity that no one will say no to. The main production line is for manufacturing of Bed Bases (the main part of a sleeping system). It is a new design, developed by me, the founder of the new company. This new product is in the “registration and to be patented soon” stage.

In my province the demand for sleeping systems doubles every month.
The latest figures are 6800 and 12000 per month in our area only, i.e. in radius of 100 km from my city. In the 8 other Provinces the demand is even higher. Statistics show a selling figure of 32000-60000.

Manufacturing cost per unit = R 88.95
Sell Price to manufacturers = R 145.00
Commercial margin = R 56.05

Expenses = R 11.77 per unit
Net Profit = R 44.28

R 44.28 x 3800 = R 168 264.00 p/month

This figure is calculated at only 50% of the actual demand in this market in my area.

Competitive Advantage

This factory will be the first of its kind in my province.

I was a marketing manager for 33 years of my life. I am in the Sleeping System industry as a marketing manager for 7 Months. I did a thorough marketing survey: I visited almost all the retail outlets in my province to get the right information to set up the actual figures. I also visited Sleep System factories in the Gauteng area to get more information about consumer demands around this type of business. The results confirm that in my province there is a huge demand for my patented system!

The competitors are low-profile and are not able to serve the market in my area. A clear advantage that I have is my new patented product, which they can’t copy. This new design is 4 times stronger than the traditional design used for manufacturing up to now. The aim is to supply my design to all bed manufacturers in all 9 Provinces in South Africa.

I need urgent finance to start this business as soon as possible.

Use of financing

1) Bakkie and trailer
2) Tools and equipment
3) Wood
4) 1st month's operating capital

Opportunity for the investor

We can meet up and I can show a complete business plan. I am prepared to sign a contract on the pay back terms and conditions and we can talk of a profit share for a certain time after money is paid back to the investor. We are looking for a silent investor.

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