SmartClean Detergents

Business Location: Township
Province Free State
Branch: Lejweleputswa
Business Start Date:
Busniess Type: Company

Business Dynamics and Challenges

Business Activities: Cleaning detergent manufacturer and supplier
Challenges/Needs: The business previously faced several challenges, which affected its growth and sustainability: • Lack of business skills such as financial management, business planning, administration, and marketing, which resulted in inefficient operations, poor decision-making, and limited ability to grow the business. • Limited knowledge of procurement and tender procedures, leading to missed opportunities to supply formal markets and secure contracts. • No formal business plan, causing unstructured operations and difficulty in accessing funding or investment. • Difficulty accessing funding, restricting purchase of equipment, expansion, and scaling production. • Need for accreditation and certification (e.g., SABS and QMS), which limited entry into formal retail and compliance-sensitive markets. • Inadequate operational equipment, resulting in low production efficiency and limited output. • Limited mentorship and business linkages, causing lack of guidance on growth strategies and market opportunities. The business is still struggling with: • High packaging and labelling costs, which increase production expenses and reduce profit margins. • Difficulty accessing formal retail and online markets, limiting sales growth and market reach. • Limited knowledge of digital marketplace requirements and fees, causing missed e-commerce opportunities and delayed online sales. • Cashflow and financial management problems, resulting in limited ability to purchase raw materials, meet production demands, and invest in growth. • Difficulty accessing funding for growth and equipment, slowing business expansion and competitiveness.

Intervention Insights and Results

Intervention Details: When the client first visited SEDFA offices, the Business Advisor conducted a needs assessment to understand the business operations, products, and challenges. Guidance was provided on key business skills, SEDFA support programmes were explained, and the client was referred to NYDA for training and funding.

The client has received the following support:
• Attended Basic Business Skills, QMS, and OHSE training to improve operational and quality management capabilities.
• Referred to NYDA in 2023 for the development of a business plan, implementation of a financial management system, and support to access a grant of R39,000, used to purchase one mixing tank, a small bottle capping machine, and raw materials.
• Supported with packaging solutions, marketing materials, and SABS product testing to improve product quality and readiness for formal markets.
• Assisted to access SEDFA Asset Assist Funding of R250,000, used to acquire a production plant, mixing tank, and semi-automatic bottle filling machine, expanding production capacity.

SEDFA will continue supporting the client by assisting with packaging and labelling, guidance on formal retail and online market access, providing digital marketplace coaching, and offering financial management and cashflow support. The client will also receive mentorship, business linkages, and help in accessing additional funding for growth and equipment upgrades.
Outcome Details: As a result of the support provided by SEDFA, the business has achieved measurable improvements across operations, market access, and financial management:
• The owner improved business and operational skills, enhancing efficiency, quality, and compliance, but cashflow management challenges still remains.
• A formal business plan and grant enabled strategic planning and equipment purchase, but financial management efficiency still requires further intervention.
• Support with packaging, marketing, and SABS testing improved quality, compliance, and brand visibility, but high costs of packaging and limited digital knowledge restrict growth.
• SEDFA Asset Assist Funding of R250,000 enabled production expansion and efficiency, but the business still needs funding and market access support.

Client Feedback

Client Comments: “I would like to thank SEDFA for their continuous support in ensuring that my business grows and can sustain itself. However, I still need further assistance to expand my business and access formal markets.”
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