How to start a business

AFRI PAVING is a producer of high quality concrete based paving in South Africa. The uniqueness of AFRI PAVING lies in its high quality and strength attributes. In addition, the production processes have been adapted to the South African needs of empowerment and simplistic labour intensive production methods. Furthermore the process requires light duty capital equipment which is:-

Easily transportable
Can be upgraded to double production in less than 45 days
Does not need any special requirements or skills

The process is less demanding on capital requirements and utility requirements, using normal electricity and water supply in quantities that if need be, could be obtained using a generator and borehole. This allows for production to take place in places where proper infrastructure is not available. Production space depends on the production capacity and does not need any specific requirements. Almost any factory or workshop can be easily adapted for medium level production of 10 - 15 000 Square meters of paving. There should also be a certain amount of outdoor storage space to store and cure the stock which would depend on the production capacity and stock turnaround.

AFRI PAVING has developed a system of production which utilises relatively unskilled labour. In addition training on our systems can be provided in any existing franchise or head office production facility. AFRI PAVING is committed to local development and employment creation by empowering potential business grow their own business using a successful and proven manufacturing system.

Offer

The company offers a business system for producing high quality concrete paving products. The size of the business capacity is limited to the business capabilities of the new business and the market needs. AFRI PAVING offers different levels of franchise packages based on production capacity. The entry level production capacity is 1500 sq/m which can be increased at any stage depending on demand, financial and other resources.

Our Product

Our product has 5 different shapes and 6 different colours (see photos for different shapes). In our program we could cater for around 20 different shapes. In November 2007. SABS tests showed that our products are some of the best quality paving products in RSA. The most important characteristics:

Compressive strength 45 to 55 MPa (the standard quality of paving is just 35 MPa)
Abrasion 0,04-0,06 (200-320 times better than standard)
100% colour stability, UV resistance
Hand-made and labour intensive

The high quality of our paving means that it can be used anywhere:

Roads
Petrol stations
Swimming pools
Parking areas
Private houses
Walkways

Our Target Market

Afr Paving" sells the highest quality product in its price segment, closing the gap between cheaper industrial paving (Infraset, Bosun, Vibro) and very expensive paving (Wonder rock, Smart Stone, Stone Age). In addition our paving is totally different from the competition - incorporating outstanding quality, esthetic appeal, and innovative technology and production processes. Broadly our target market comprises of Housing developments, Commercial developments and Government Public works and direct sales to the general public.

Future Plans and Directions of Growth

We have identified 4 major growth directions:

Opening of new manufacturing factories in bigger towns in RSA (Cape Town, Durban, Port Elizabeth) and surrounding countries such as Botswana, Mozambique and Namibia.
Opening of a larger number of smaller businesses all around RSA
Selling of this concept to other countries on the wider African continent
"Afri Paving" plans to export to the UK in 2012. We have forged a strategic partnership in London, and we expect purchases of about 10.000 square meters per month from the UK.

The System

We have developed and own a unique system for manufacturing high quality concrete paving. The success of this concept is related to the simplicity of the machinery and process of production, using unique additives and shapes which differentiates our products from our competitors. This coupled with the use of relatively unskilled labour ensures that our systems and methods are easily re-locatable any where in the country where demand is prevalent. The new business is required to strictly adhere to the system of production and operation which will be explained in detail in the operations manual. This document will highlight the uniform standards, specifications and procedures for operations; quality and uniformity of products and services offered. All systems and processes undergo constant review, which means that they may be periodically changed, to further improve our quality and processes.

The System is identified by our registered service mark "Afri Paving" and any other trade names, service marks and trademarks that we may designate otherwise in writing for use with the System (the "Proprietary Marks"). You are required to conduct the Business according to our Confidential Operating Manual, a copy of which we will provide to you for the term of the Agreement. You may offer only those services and products that we specify or approve.

Cost

Set Up Costs - The cost for setting up different levels of production.
Training Costs- Costs of initial training will depend on the volume of production, and the location of the business. Accommodation and subsistence costs for those requiring training will be carried by Afri Paving. All associated traveling costs must be paid by the new business.
Marketing Costs - are also described in this report.
Consulting fee - Is a fixed monthly amount which will depend on the production capacity.

Risk

South Africa is one of the largest producers and consumers of concrete block paving in the world, so you can expect to compete in your market with all other local and nationally owned paving manufacturers and distributors. Paving companies compete on the basis of factors such as price, service, quality and product differentiation These businesses are often affected by other factors such as changes in consumer taste, economic conditions, population and ability.

Unrealistic expectations of immediate return on investment and or insufficient working capital reserves may present difficulties and put the business at risk in the early stages of operations.

As with any business or venture, there is an element of risk, please be guided by your accountants and legal advisors.