Training Center Project: Job Creation Through Rural Empowerment

Opportunity Snapshot

Investment Opportunity

The project will promote development and employment within any country.

We are a manufacturer that wants to introduce a training and employment program. We will train people to produce detergents, herbal medicies and beauty products by using our mixing machine. We will also teach them basic business skills and help them market the products.

Business Plan Overview

1. Opportunity
2. Concept
3. Empowerment
4. Employment
5. General
6. Capital required
7. Formulations

1. Opportunity:
We manufacture mixing machines; we have designed a simple mixing machine, the only equipment that is needed to make our products is a welding machine and a grinder.

These mixing machines can be used for mixing herbal medicine or detergents. We can train people to manufacture household detergents or herbal medicines so they can earn an income for life. We will also show them how to run a business.

The machine can manufacture 200 liters/kg per blending +/- every ½ hour. At least 1500 to 2000 liters of products can be produced per day. We have done a research and found out that on average every municipality in South Africa could support 5 manufacturing setups. That would empower 12,500 people in manufacturing. Our target market is the youth in the 19 to 27 age group.

2. Concept:
This empowerment program is unlike other training programs where the students have to compete in the job market after completion of the program without having any experience and thus remain unemployable. With this program, after training the people can immediately start earning a living in the manufacture business. They will be able to sell these products because they are used and demanded in every house.
A Quality Management System is to be implemented to achieve the Vision and Mission and effectively implement Policies and Procedures.
We will gain and maintain accreditation as a Provider of Education Training from the relevant ETQA in terms of SAQA Regulation No R1127 of 1998.

In seeking accreditation the following issues will be considered:
a) Which is the applicable ETQA for us? What are the applicable Institutional requirements for our accreditation?
b) Which are the applicable learning Program requirements for our accreditation?
c) Which are the applicable NQF Bands and Levels of Primary Focus?
d) The relation of Bands and Levels to a Coherent, Progressive Pattern of registered Standards and Qualifications within learning pathways
e) The relation of the Standards and Qualifications to Articulation and Portability within learning pathways

The learners will be trained on the following:
1. Manufacturing different kinds of cleaning detergents, herbal medicines, lifestyle, beauty/cosmetic and haircare products.
2. Branding, marketing, direct marketing and sales
3. Bookkeeping & administration
4. Accounts management
5. Distribution schedules
6. Retailing & stock management

Stage one:
Products have already been formulated, and a facility identified for the training center.

Stage two:
Acquisition of offices equipment and training aids, and setting up a building for training.
Identification of key distributors to form partnerships to grow the business.

Stage three:
Getting learners on the program; retaining and growing the learners' network with a specific product range to deliver top-line turnover for them.

Stage four:
New products are developed and added to increase product portfolio and leverage sales – within current range and household categories.

Stage five:
Lifestyle, beauty and hair care products are added.
Distribution to existing direct marketers based on orders.

The company will not involve itself in multi level marketing concepts at all, however nothing will stop a learner from appointing his own distributors to increase his/her turnover. This will purely be an arrangement between individuals.

3. Empowerment:
The program participants will be empowered in the following ways:
• Self employment
• Creating employment
• Sustaining family members
• Reaching disadvantaged consumers
• Reaching rural areas with little infrastructure

South African Quote:
"Our country requires an economy that can meet the needs of all our economic citizens - our people and their enterprises - in a sustainable manner," the Department of Trade and Industry (DTI) says in its BEE strategy document.” This will only be possible if our economy builds on the full potential of all persons and communities across the length and breadth of this country.” Despite the many economic gains made in the country since 1994 – growth has been 4% or lowers in every quarter since 2004 – the racial divide between rich and poor remains. As the DTI points out, such inequalities can have a profound effect on political stability:
"Societies characterized by entrenched gender inequality or racially or ethnically defined wealth disparities are not likely to be socially and politically stable, particularly as economic growth can easily exacerbate these inequalities."
Black economic empowerment is thus an important policy instrument aimed at broadening the economic base of the country – and through this, at stimulating further economic growth and creating employment.
The strategy is broad-based, as shown in the name of the legislation: the Broad Based Black Economic Empowerment Act of 2003.
This reflects the government's approach, which is to "situate black economic empowerment within the context of a broader national empowerment strategy … focused on historically disadvantaged people, and particularly black people, women, youth, the disabled, and rural communities".
Black economic empowerment is driven by legislation and regulation. An integral part of the BEE Act of 2003 is a sector-wide generic scorecard, which measures companies' empowerment progress through:
• Direct empowerment through ownership and control of enterprises and assets.
• Indirect empowerment through:
o preferential procurement,
o enterprise development, and
o Corporate social investment (a residual and open-ended category).
The codes are binding on all state bodies and public companies, and the government is required to apply them when making economic decisions on.

4. Employment:
The business can employ people in the following areas:
• Manufacturing – up to 12500
• Distribution/shops – up to 2000
• Direct marketing – up to 30,000
• Additional stall owners – approximately equal to the number of taxi ranks

The business will be profitable not only to the business concept owners but to the people employed as direct marketers. Employment will be created at various levels and this will also impart different levels of skills training.
This business model is based on a tried and tested model and has been refined to maximize profits. And all of the products can be exported to the rest of Africa.
This is what it will COST you to make a liter of the following products with transport included:
• Air freshener - R 4-19
• Car shampoo - R 3-90
• Bath foam - R 4-57
• Oven cleaner - R 1-80
• Engine cleaner - R 5-56
• Thickened bleach - R 4-17
• Gen. purpose cleaner - R 4-59
• Dishwashing liquid - R 3-86
• Tyre and dash shine - R 6-90
• Black dip (drain cleaner) - R 8-80
• Toilet bowl cleaner - R 3-98
• Liquid hand soap - R 7-32
• Pine disinfectant - R 5-00
• Window cleaner - R 4-61
• Drain cleaner - R 5-78
• Pine gel - R 9-00
• Fab soft - R 1-90
• Handy - A - R 2-27
• Bleach - R 1-20
• Paint remover - R9-79

All these products can be sold at R 15-00 to R25-00 per 750ml or more, so you can see how high your profit margins are. Note all products on the shelf are sold in 750 ml containers.

6. Capital required
Total Operating Costs Projected

Accounting Fees R8000.00
Building R2500000.00
Factory Equipment R50000.00
Office Equipment & Computers R160000.00
Training Equipment & Furniture R150000.00
Vehicle R300000.00
Running Cost per annum R974400.00
Sub-Totals R4142400.00

7. Formulations:
Vested in the originator of the business plan as intellectual property.
There are 135 products in the range and a blueprint of the mixing machine.

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