Paraclete Projects
| Business Location: | Rural area - Villages |
| Province | Limpopo |
| Branch: | Sekhukhune |
| Business Start Date: | |
| Busniess Type: | Company |
Business Dynamics and Challenges
Business Activities:
• Concrete slab construction
• Mining supplies (protective clothing, refreshments, chemicals)
Challenges/Needs:
Before receiving intervention, Paraclete encountered several significant challenges that hindered its growth and profitability:
• High Hiring Costs: The need to hire scaffolding resulted in reduced profits, as these expenses were substantial.
• Limited Supplier Availability: A scarcity of suppliers for scaffolding led to frequent delays in project delivery.
• Diversion of Funds: Resources were often diverted to cover hiring costs, leading to financial losses.
• Loss of Business Opportunities: Some suppliers could not afford to wait for scaffolding orders, resulting in lost contracts.
• Inconsistent Availability of Scaffolding: The limited number of suppliers often resulted in unavailability of necessary equipment, further impeding project timelines.
Intervention Insights and Results
Intervention Details:
Paraclete received a significant intervention through the acquisition of scaffolding valued at R250,000 through SEDFA asset assist program. This investment has substantially transformed the operational capabilities of the business. Furthermore, training and mentorships provided contributed to alignment of operations for efficiency.
Outcome Details:
Changes in Revenue
• Turnover Increase: The company experienced a remarkable increase in turnover from R989,245 to R2,600,000, representing an increase of R1,610,755 or 162%.
• Increased Operational Costs: Operational costs rose by R576,228 to R2,525,988, an increase of 29.5%, primarily due to the hiring of additional personnel.
• Personnel Growth: The workforce increased by 2 employees, enhancing operational capacity.
• Net Profit Increase: Net profit increased by 114%, reaching R74,012.
• Operational Efficiency: Streamlined ordering and delivery processes resulted in faster turnaround times for projects.
• Increased Sales: The addition of services and reduction in costs led to higher sales volumes.
• Improved Competitiveness: The ability to manage projects more effectively has strengthened Paraclete's position in the market.
• Turnover Increase: The company experienced a remarkable increase in turnover from R989,245 to R2,600,000, representing an increase of R1,610,755 or 162%.
• Increased Operational Costs: Operational costs rose by R576,228 to R2,525,988, an increase of 29.5%, primarily due to the hiring of additional personnel.
• Personnel Growth: The workforce increased by 2 employees, enhancing operational capacity.
• Net Profit Increase: Net profit increased by 114%, reaching R74,012.
• Operational Efficiency: Streamlined ordering and delivery processes resulted in faster turnaround times for projects.
• Increased Sales: The addition of services and reduction in costs led to higher sales volumes.
• Improved Competitiveness: The ability to manage projects more effectively has strengthened Paraclete's position in the market.
Client Feedback
Client Comments:
The support received has been invaluable for Paraclete, proving crucial for its growth. Without this financial aid, the company couldn't have acquired essential equipment or resources, helping it overcome challenges and paving the way for future success
