Client Advice

Client Advice

Start-ups are often thinly resourced, with gaps in management. Be aware not to expand and grow a start-up business too quickly if the production volume or quality is still low due to technical manufacturing problems Ideally, take the leap of faith and employ the...

Entrepreneurs should be aware of the technology-transfer challenges from one country to the next, when setting up a manufacturing plant, including purchasing equipment. There is no seamless transfer even when one buys the same machinery, e.g. the environmental conditions are different and the staff...

In most start-ups, there are delays in starting operations, leading to cost over-runs. Ensure investors/shareholders can put in extra equity or acquire grant funding to cover these costs – stand-by equity or debt facilities. Also, factor in time overruns in the commissioning schedule by...

Be aware of the fluctuations of the rand exchange rate in capex purchases (e.g. buying imported equipment for production). Cost over-runs due to currency weaknesses may negatively impact the sustainability of a business. The IDC budget often includes a contingency for exchange rate fluctuations. ...

Grant funding can be used to develop prototypes. Prototypes can be developed at University facilities which often have small pilot scale equipment that mimic the characteristics of large equipment. Alternatively, negotiate with established manufacturers to utilize some of their facilities for prototype production. Prototypes...

Flexible repayment loan terms thus enabling entrepreneurs to service the debt. As a Development Finance Institution, the IDC can structure loans with moratorium periods until the business builds up sufficient cash-flow to service the debt. Grant funding or quasi equity/subordinated loans are good alternative...

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