The Branson Centre is propelling small businesses into the big time...

Entrepreneur: Sibongile Thafeni

Kotulo Milling
"A bakery supplier that’s giving power to the people..."
 
Meet the maker:
When it comes to being an inspiring entrepreneur, bakery industry maverick Sibongile Thafeni rises to the occasion. She’s single-handedly taking on the big monopolies in her industry, fighting the corner of the small business person and creating a better service.

She’s already won a competition aiming to support and grow new businesses in Africa, giving her R35,000 of business support and R75,000 of seed capital. Now it’s time to put that dough to good use, growing her business and maximising its potential.
 
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Sibongile Thafeni
The golden opportunity:
Small independent bakers in South Africa are getting a raw deal from big established milling companies, that hold a monopoly over the sector.

Sibongile is changing all that. She knows there’s strength in numbers. So she’s formed a network of small bakers. She then supplies and distributes their key ingredient (currently flour, though later she’ll widen her range). The network doesn’t guarantee cheaper prices, but it does give small bakers more buying influence and better service.

Ultimately, it gives smaller operators more power to make decisions in their interest rather than being at the mercy of the big millers.

The next stage for Kotulo Milling is to generate income through two sources - the network membership and the distribution of flour at a mark-up to the members. Members can agree to purchase a minimum quantity of flour to maintain their membership in the network and continue to reap the rewards.

Sibongile can set up storage facilities in the areas where she will be operating. Her suppliers will deliver to these facilities and from there she will distribute to her customers. Initially, she’ll use her own truck and other subcontractors for distribution but, within a year, she anticipates leasing trucks for the company and employing drivers and additional distribution staff.

She knows that delivering amazing customer service is key to winning and retaining business, so a call centre will also be established to look after her customers, the members of the network and the suppliers.
Entrepreneurial spirit flows in Sibongile’s blood

How it’s helping the community:
Sibongile is giving ‘power to the people’. Her network is empowering small bakers to increase their buying power and get a better service.

Moreover, Sibongile’s business is creating jobs and boosting her local economy. In the next year, with the right mentoring and financial support she could employ a minimum of 10 people.

The future looks bright:
Sibongile’s vision is to evolve her business into a large company that employs many people. She’s passionate about creating an environment where staff can continuously challenge themselves and take the company to new heights.

Her customers stand to benefit too. She plans to grow the company to a point where her customers purchase more than a hundred tonnes of flour per month. She will then have the option of choosing to establish her own milling plant or continuing to negotiate with suppliers, but from a position of real strength and influence.

How can you help:
Sibongile would appreciate advice on a number of topics:
  • Establishing trust with suppliers and customers and as an established company, despite currently lacking a fixed office and landline
  • Meeting demand, as she has already begun taking orders before discussions with potential suppliers have been finalised
  • Ensuring cost-effective distribution
  • Ensuring effective recruitment and leadership
  • Ensuring effective operation and management systems for her business’s complex logistics
  • Have some tips? Then emai them to: advice.southafrica@thebransoncentre.org

Got what it takes to become a Branson Centre Entrepreneur?

Then what are you waiting for? We would love to hear from you please outline your business plan to us using the link below.
Application form for the Entrepreneur Development Program

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