The manufacturing of lightweight, cement products, like pots, water features, walls (castles) and also kids play centres is what the company is all about. Therefore 80% of what we do falls in the landscaping industry. But there are many other products that we are busy bringing into the market, and we believe that these new products, which will be in other industries (other than landscaping), will have a huge effect on our business and protect us from market segment fluctuations.
Once the new product lines show their substance in the market, they can form part of this new venture into Panama, but this Business plan will only cover a basic plan of exporting to the USA.
In short the plan is to build fibre cement pots here and export them to the USA. The funding that will be generated by this is then used to establish and set up a core team to start build pots from Panama. Once this is going, other projects will be launched in Panama to generate more work opportunities for other South Africans.
Although we are not going to make rules upfront or write anything in stone until we have the investors and a market study has been done in the USA, but all parties in this venture will have to set this basic plan as a goal.
People with a high level of commitment must be sourced for both the financial and the doing of the work. This will be easily determined in the training and the setup of the new facility in Panama. No free rides or freeloaders will be tolerated. We should have a one strike policy.
The Gross profit on these cement products is +/- 75% in the South African market. For obvious reason, I am not going to place the detail of materials and costing here. This detail will only be shared with Inclusive Investors. But, the fact is that on a pot that Theuns sells in his business for R500 (most nurseries in Pretoria this will cost around R650) the manufacturing cost is R125.00. This will include labour, local transport and even packing material.
One of my biggest concerns was whether the materials would be readily available in places like the USA, or even Panama, and the answer is that you will find this is not only available but it is also cheaper in most overseas countries.
- The form the whole business will take will largely depend on the outcome of the facts and the investors.
- The initial negotiation will take place with Dave and Theuns. All the training and product knowledge will be contracted via Capeart (Pty)Ltd.
- The investor’s funds will be kept in the trust account of a mutually known Attorney in South Africa, that will also be tasked with the opening of a Trust, tasked to benefiting the immigrating investors. In this trust, trustees will be named out of the investors to control the business dealings
- The Trust shouldl be then the sole shareholder in the marketing company in the USA and the manufacturing company in Panama.
- Non disclosures and restraint of trade will have to be signed by all investors or parties concerned.
- We have unique products - Copyrights are in place. We have the ability to manufacture unique products in the US.