ProfitShare Partners is enabling small businesses to compete at the level they need to take on big players in the market. Facing serious competition for market share is not easy, especially in these difficult economic times however, Blackstar Developments demonstrates that, with the right support and drive, it is possible.
Established in 2017, Blackstar Developments is a construction and development company that specialises in comprehensive end-to-end construction services. Through a highly experienced and professional workforce, the company has successfully completed a diverse and technical array of contracts to date.
In the latter part of 2017, Blackstar Developments was appointed to refurbish a 3,000m² distribution centre in Germiston in less than six months. The initial capital that the company had was not sufficient to get the project off the ground but, as is the case with small businesses, they needed to make a plan.
“Nobody would fund us – we went to the banks and tried asking a few people in their private capacity but we were faced with the response that building is risky. We had a letter of appointment from a large reputable corporate, but nobody wanted to take on the risk,” says Sandile Majozi, Managing Director of Blackstar Developments.
Although the company officially started over a year ago, the combined industry experience that the director and his employees have accumulated in their careers is in excess of thirty years.
Blackstar was introduced to ProfitShare Partners to discuss their funding requirements and, after one meeting, many of their challenges were solved with very little effort and within a week after application.
“The funding that we received from ProfitShare Partners gave us the power to bargain with our suppliers for the best price because, you know… money talks. Suppliers are more eager to do business with us because they know that they will get paid. Being able to pay upfront can save thousands of rands that may not seem to be that much at first but, as time goes by, it all adds up,” added Majozi.
ProfitShare Partners was able to assist by offering invoice discounting on the short-term contract that the SME had with their client. Although Blackstar experienced a small loss in the refurbishment project, their performance on the contract was impressive and served as the stepping stone for the contracts that followed.
“Our customers are very important to us. We’ve built a solid reputation with our client. In fact, they contact us to quote on jobs because they enjoy working with us and because we offer them value. The risk of delivering late on a project because of cash flow issues is a thing of the past,” continued Majozi. “Our turnover has seen immense growth of a 1,000%. The funding has allowed us to deliver on time and, more impressively, ahead of schedule. This has definitely added to our credibility with our client.”
Since starting out, Blackstar Developments has created 14 jobs and contracts work to 12 sub-contractors on average. The company has also empowered some of their employees to become independent entrepreneurs, who have managed to increase their earnings tenfold as a result of the opportunity.
“We’ve referred quite a few people to ProfitShare Partners because I believe that it’s definitely worthwhile. Yes, you have to part with some of the profit on the order but at the end of the day, you build your name and credibility with your client, which is more important than worrying about how much money you’re making,” said Majozi.
Blackstar Developments is on a mission to level up their operations and compete with the bigger players in the industry. The SME has already progressed to a level that has built credibility with their corporate clients because they focus on meeting the customer needs, delivering beyond expectations and value-adds. Their business journey has progressed well since it launched in 2017, and ProfitShare Partners is excited to have played a role in it.