- Country: Zimbabwe
- Industry: Construction, Engineering, Architecture
- Stage: Start-up
- Investment size: $500,000 / min. $200,000
- ROI: 50% in 3 years
- Type of investment: Debt, Equity
The company will be specialized in the construction of skyscrapers, bridges, stadiums, roads, dams,office complexes, shopping malls, schools, campuses et al.
The company will offer routine and periodic road maintenance,bridge construction,dams,offices,schools,houses et al to both the government, private sector and individuals. We know that our selling points will be our excellent and timely delivery of construction projects using global best practices.
After a slide in the economy the government has embarked on a massive rebuilding exercise in roads and housing and we expect to benefit from the open for business mantra adopted by the new dispensation after years or underdevelopment and isolation.
We have decided to adopt some of the winning formula that construction giants utilize to win major construction contracts.We know that it will take different marketing and sales strategies to win small clients and bigger clients thus our personnel will be recruited based on their vast experience in the construction industry and their ability to fit into our business model.
The Company will adopt the following marketing and sales strategies;
-Introduce our business by sending introductory letters alongside our brochure to all the corporate organizations and government offices in Zimbabwe.
-Promptness in bidding for contracts
-Advertise our business in real estate / properties magazines and websites
-List our business on yellow pages
-Promote our business on satellite TV stations and radio stations.
-Attend expos, seminars, and business fairs et al
-Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/ property to them
-Leverage on the internet (social media platforms and our official websites) to promote our business
A significant cash infusion is needed for the first year to establish the company ($500,000) to purchase construction machinery and as working capital.In the 2nd year, the company becomes self-supporting.
It might be challenging competing as a newbie in the construction industry but competitive advantage will not be limited to the crop of highly experienced professionals to be recruited.This will bring experience, expertise and network (connections) to make the company one of the leading construction brands in Zimbabwe.We will undertake continual training programs for best market practice and technology to leverage ourselves in the market.Our marketing team will continue to get the needed support and encouragement that they need to be able to deliver on set goals and targets for the organization, and we will continue to improve our processes and structure to meet up with the changing trend in the construction industry.We will also establish business relationship with key players in the industry (networking and membership of relevant construction bodies
Rationale for the deal
Government embarked on an Emergency Road Rehabilitation Programme last year to recover the deteriorating road network.The massive public works have been a boon for local companies that have been roped in as contractors and suppliers for the project.Since central Government intervened to rehabilitate road networks falling under the purview of local authorities, the Finance and Economic Development Ministry – through the Zimbabwe National Roads Administration – has released the bulk of the funding.For instance, the City of Harare has contracted five local companies.Bitumen World has been tasked to reclaim, spray, chip and overlay a total of 18,1km of road at a cost of $3,9 million.Fossil Construction has been tasked to rehabilitate 8,4km at a cost of $1,5 million; while Tencraft Construction was apportioned 13,1km, which will cost $2,1 million to rehabilitate.Tarcon Construction will attend to 4,8km worth $864 000; while Truck and Construction will spruce up 3,9km for $1,1 millionZinara roll over amounted to $2,8 million, Ministry of Finance injected a total of $450 000, Zinara budget for 2018, which council received, amounted to $12,9 million and council requested a further $4 million and $1,8 million for the rehabilitation of VVIP roads and hot spots, respectively," said the City of Harare report.The council has requested an extra $3 million to complete ongoing projects. (The Herald Newspaper).
Use of financing
The funding will be used for initial purchase of road maintenance equipment,tipper trucks and working capital.It is important to state that most of the heavy duty construction equipment that we will work with will be leased. This necessary because some of these equipment are really expensive and it won’t be economical for us to acquire them from the start.
Opportunity for the investor
The company will offer 60% of shares to investors with a 50% return of investment after 3 years.The investment model can be of a silent partner or hands on depending on the investors preference.The investment amount can be spread over a 6 month period as the company establishes.
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