Start-up Retail Store in South Africa Looking for Investor

Opportunity Snapshot

  • Country: South Africa South Africa
  • Industry: Retail Trade
  • Stage: Start-up
  • Investment size: $190,000 / min. $86,500
  • ROI: 3% in 3 years
  • Type of investment: Equity

Investment Opportunity

A start-up retail store in Somerset East, South Africa that will provide interesting merchandise options at bargain prices to low income people.

This project is about building a discount store in Somerset East, South Africa. We are looking for a partnership to invest in this project. The amount of the investment required is about USD 190,000.

We intend to implement an aggressive marketing strategy, well supported by the business functions. The above prognosis influenced our decision to enter into this industry. We understand that our target markets need more than just something to absorb. Price also plays an important part in the purchase decision.

We realize the need to focus our marketing message and our product offerings. We need to develop our message, communicate it and make good on it. This shall be undertaken in order to establish ourselves on the market and long-term relationships. Our marketing strategy will be based mainly on making our products available to the right target customer. We will ensure that our products take into consideration customers budgets, and that these people appreciate the quality of our products, are aware our products exist and where to buy them.

The key element in service utilization decisions made at the companies client level is trust in the reputation and reliability of the business. In putting the business together we have attempted to offer enough products at affordable prices to allow us to always be in demand by our customers and clients. The project can be finalized in 6 months after the funding is acquired.

Competitive Advantage

There is very little competition from local companies selling products similar to our main products. However, considering the pace of change and current growth rate of the economy luring companies into the market, this may be short-lived. Hence there will be need to not only firmly establish ourselves in the market, but also strongly differentiate ourselves from these other businesses.

The few competitors in the region have a monopoly of controlling the regional market due to the advantage of being first-comers. We seek fair and responsible profit, enough to keep the business financially healthy for the short and long term.

Rationale for the deal

We intend to build image and awareness through consistency and distinctiveness in our order fulfillment. Our strategy is to grow the business by nurturing clients and establishing good one to one relationships with our customers. All criteria from customer satisfaction, order fulfillment, price competitiveness to staff attitudes are to be looked at thoroughly in the initial stages so as to identify areas of improvement. To attain low lead times we need to ensure that all functions are communicating properly and formally, using valid and accurate data to derive achievable plans and schedules for all stages of procurement, selling and delivery. We will develop new channels of distribution as the business grows. Its plan to become a nationally known brand may be pushed forward by entering into contracts with the numerous decision/order-makers throughout the country, such that it gives us exclusive access to the relatively remote areas in the country.

Use of financing

Start-up funding necessary for the fulfillment of the project is approximately USD 190,000. The amount will be used for the purchase of the store including merchandise and equipment.

Opportunity for the investor

Investment collateralized with a land plot of 1 hectares and joint ownership of shares in the TC on the money invested. We recognizes that our investor contribute fundamentally to the business long-term prosperity, acknowledging our obligation to remunerate them competitively and generous profit sharing. We will encourage them to put forward any suggestions they might have regarding the improvement of any of the businesses functions - an open door philosophy. Such a culture will enhance innovativeness and creativity, in turn leading to job satisfaction and enrichment. To keep them abreast of any developments and promoting a sense of belonging and oneness in the business.

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