JOIN OUR MAILING LIST

Springbok Franchise
 

Springbok Group’s Profile and Business Plans for sustainable successful Black Empowerment in the Transportation Industry

 

 

What make Springbok Group (Pty) Ltd Franchises or tandem Franchises such a successful concept is that the Franchisee can start his business and still be employed and or running his current business by partnering with us.

 

Fleet Management and Mentorship.

 

37 Years of experience and trial and error paved the way for Springbok to be of invaluable assistance to the small Transport operator as follows;

 

The smaller transporters have the disadvantage of obtaining favourable feasible contracts directly from the Industries Corporate Clients, because with due respect to our Corporate Clients and Industries they want service that is and that means they are reluctant to give the smaller contractor a direct contract for fear of sub-standard service delivery and the extra burden of much more administrative work for them dealing with a lot of small transportation companies versus one or two big Transport Companies.

We managed to overcome this burden and shortcoming by simply sharing our joint infrastructures collectively

with as many role players as possible and therefore as a consortium of more than 50 Associates and Franchisees working with the same Infrastructure and network we accomplished a very high standard and effective service delivery.

 

Our Clients receive the same standard of professionalism as from any of our big competitors. We provide a national networking forum and leads with the sharing of our extensive knowledge and information in the construction and transportation Industries.

We see ourselves the playing a leading role in construction, transport service Networking, Mentorship and skills transfer Company nationwide playing a crucial role in eradicating poverty.

We uplift service quality standards and satisfy the needs of our customers by providing personalized top quality service and expertise.

 

We are currently developing the following new BEE projects;

 

To empower Black Drivers through mentorship, skills transfer, and assisting them in all the relevant necessities to manage their transport business professionally, with the help of our expertise and that of our Auditors to become successful Owner Drivers,

 

To ensure the maximum success ratio we insist that our Driver Associates and small operators let our Auditors and bookkeepers manage their whole financial portfolio thus ensuring that there can be no misuse of their business funds and maintains strict financial policies.

 

After we presented our business concepts to Asset Finance and various other BEE institutions they gave us the go ahead on their terms and conditions.

Our Company is currently 80% Black owned with mixed Management.

 

Fleet Management.

 

Years of experience paved the way for Springbok to be of invaluable assistance to the small Transport operator as follows;

The smaller transporters have the disadvantage of obtaining favourable feasible contracts directly from the Industries Clients, because with due respect to our Clients they want service and that means they are reluctant to give the smaller contractor a direct contract for fear of sub-standard service delivery and the extra burden of much more administrative work for them dealing with a lot of small transportation companies versus one or two big Transport Companies.

 

We managed to overcome this burden and shortcoming by simply sharing our joint infrastructures collectively with as many role players as possible and therefore as a consortium of more than 50 Associates working with the same Infrastructure and network we accomplished a very high standard of service delivery.

 

Our Clients receive the same standard of professionalism as from any of our big competitors.

We provide a national networking forum and leads with the sharing of our extensive knowledge and information in the construction and transportation Industries.

We see ourselves the playing a leading role in transport service, Networking, Mentorship and skills transfer Company nationwide playing a crucial role in eradicating poverty and boost national economical growth.

We uplift service quality standards and satisfy the needs of our customers by providing personalized one-stop top quality services and expertise.

 

We are currently proceeding with the following BEE projects;

  

Empowering Black Owner Drivers, youth development, and developmental start-up entrepreneurs, through mentorship, skills transfer the necessary infrastructure and assisting them in all the relevant necessities to manage their transport business professionally, with the help of our expertise and that of our Auditors to become successful Transport Contractors.

 

2. To ensure the maximum success ratio we insist that our Driver Associates and small operators let our Auditors and bookkeepers who has many years of transportation financial management experience manage their whole financial portfolio thus ensuring that there can be no misuse of their business funds and maintain strict financial

Policies and proven financial strategies.

3. After we presented our business concepts to Standard Bank Asset Finance and various other

institutions they gave us the go ahead on their terms and conditions.

4. Our Company is currently 100% Black owned with mixed Management.

 

14

* Business Assessment and advisory

* Assist with access to Finance

* Contract vetting

* Costing based on results of optimisation and supply chain integration

* Technical advice on optimum vehicle configuration

* Operational services and MIS

* Administration services which include debtor and creditor control

* Facilitates and ensures sustainability for new entrants into the economy through close supervision and guidance.

* The supply chain experts also assist in the non-core management, mentorship and business training of new entrants into a very competitive market.

Springbok Group support options

 

 

15

Definition of Industry Sector: Road and rail transport or transportation is the movement of goods and people from one place to another.

Our main focus is:

The holistic infrastructure, Mentorship and skills transfer to the previous disadvantaged segment of our community, insuring a 99% success ratio

Truck and Trailer

General Road Freight Transport

Liquid / Dry Bulk Transport (General and Hazardous Goods)

Agricultural related Transport

Food and Beverage Transport

Construction, Mining and Commodity Transport

Waste removal

Forestry

Marketing              initiative                 strategies.

 

Our website is most properly the most important marketing tool we have and receive daily transport related visits up to a thousand. PUT IN MORE PICS AND DESCRIPTION OF HOW THE WEBSITE WORK WITH A BREAKDOWN OF THE DIFFERENT ENQUIRES.

 

We train all our Franchisees to boost their income with adding transport related services on an adhoc basis if they do not stay in their current job, or business then we do the complete management of his business at reasonable fees.

 

Buying and selling of;

Trucks

Trailers

Earthmoving Equipment

New and used Spares for Trucks, Trailers, and earth moving equipment

Logistics’ utilizing of direct feasible contracts

Mentorship and skills transfer in the Transportation industry to the previous disadvantaged segment of our community

As we know Transportation is the biggest industry and is a perfect vehicle to get as much as possible Black role-players into, to boast and develop Black Entrepreneurial Skills.

First of all we at Springbok Group are the first to advocate the dangers and risks involved in going into the Transport Industry without proper knowledge, infrastructure or Mentorship.

Through years of knowledge and trial and error we can confidently ensure a newcomer or small Transporter to join our program, the success ratio for any business started up, without guidance and mentorship is a mere 6% we will all agree for an investor to invest in such a high risk venture is close to insane.

Luckily we at Springbok Group has covered all the hazards and if followed a newcomer or existing small Transporter’s success rate will be at a higher than expect

able level.

As you can see in the graphic fuel costs is the highest expense to ensure drivers not to steal or let someone be able to steal diesel, tarpaulins, tyres, and ext. We strongly suggest that all our Drivers become partners in our endeavours.

With this initiative we teach Drivers to become part and parcel of the venture, therefore the better they take care of the truck, the better their income become and when the truck has been paid for, they receive a bonus of 5% of the value of said truck combination

Fundamentals of Contract assessment

Term: Is the term aligned to the Finance Period? The suitability of the prime mover and trailer must be taken into account regarding km and age relative to the life cycle considered when assessing funding periods and contract terms.

Track Record: Is it a brand new contract or is there a relationship? If so, the sub-contractor would have gone through the ‘learning curve’ and the risk is lessened.

We recommend direct contracts: eg.

Xstrata Coal Transportation and excavating of their products

SPAR with direct contractor delivering finished goods.

UNITRANS with contract with service provider where Unitrans/Barloworld has an Illovo Sugar direct contract (This is the only sub-contract that we recommend.

Product: The product been transported has a bearing on the depreciation of an asset and therefore revenue.

Rates of the Contract: There is a concerted drive in the industry to ensure that volumes or tons per kilometre as well

as fixed costs are set out in the agreement to ensure viability to the transporter and contract giver.

 

17 MENTOR AND SUPPORT SERVICES

•Management Support Company menu:

•Mentorship

•Skills transfer

•Financial Assessment and advisory

•Obtaining economically viable contracts

•Costing based on results of optimisation and supply chain integration

•Optimum vehicle configuration

•Operational services

•Administration - regulatory

 

Springbok Group’s Bankers

18 This relates specifically to: Quantity/Volume/Tonnage to be delivered; Number of Loads to be delivered; Routes, in terms of kilometres, to be utilised. Payment Terms: Supplier payment terms can have an effect on transporters Cash Flow. Payment terms can ranges from 14 to 30 and at times 60 days. Obligatory Performance Clauses: Clauses that form the basis of the client specific performance on the contract: Quarterly Meetings to discuss with the Transporter any compliance or remedies of operational/safety/legislative requirements to ensure continuity and quality control and reduce shortfalls/losses that may accrue. Risk [Monetary] Clauses: Clauses that may affect the Transporters Cash Flow due to penalty clauses for non-compliance/non-performance/non-delivery. Termination: Clauses that allow grounds for the termination of an agreement. Added to this is the Breach and/or Arbitration Clauses. Miscellaneous Clauses: Clauses that can have a bearing on the clients performance: Additional Loads, Routes, Quantities [Does the client have spare capacity] Breakdown of Vehicles: Use of a third party by Contractor where costs are borne by the Transporter. Fluctuation of Loads, Quantities attributed to Market Conditions: Supply & Demand by the Contractors clientele [Non-Guaranteed Clause].

 

19 The need to develop and sustain small business is a national challenge

facing all stakeholders interested in promoting sound economic growth in

South Africa.

 

According to the Department of Trade and Industry (the DTI), one in 18

South Africans can be considered to be an entrepreneur. Small enterprises

contribute about 35% of the country’s gross domestic product. Most small

enterprises are micro-businesses that employ over half the number of

people who work in the private sector.

However, of the small businesses that is started in this country, up to

70% fail in their first two years. While SMMEs' contribution to the economy

increased from 4.5% in 2004 to 5.1% in 2005, 60% of SMMEs are unsatisfied

with their access to expertise and finance. There is a clear need for broader

knowledge sharing, mentorship and assistance such as that provided by

corporate and commercial incubators. As a result, the focus must be shifted

on reducing the SMME failure rate and increasing effective business

transformation. Developing management literacy for entrepreneurs within

the business sector (SMMEs in particular) is a key focus area requiring

attention to render business sustainability and growth.

In addition, the business needs in South Africa require a different

approach – from fund management and business skills transfer to

strategic imperatives for business growth and transformation.

Tandem Franchising The high investment needed to set up new outlets and the level of expertise required to manage them successfully combine to inhibit some companies’ ability to expand through franchising. For very much the same reasons, it also precludes otherwise suitable individuals from becoming franchisees. Tandem Franchising addresses all these problems and more in a commercially sound and sustainable manner. What does the term mean? Essentially, tandem Franchising is a standard business format franchise model but with an added focus on mentoring, support and long-term cooperation. The model is ideally suited to BEE initiatives because it enables members of previously disadvantaged population groups to enter the mainstream economy at an accelerated pace yet at significantly reduced risk. How does it work? The BEE franchisee purchases a minority stake in the franchise, often as little as 10% to begin with. He manages the business from day one but initially, certain limitations apply. In addition to initial and ongoing training, the BEE franchisee receives extensive ongoing mentoring. This is provided either by an experienced member of the franchisor’s management team or by a person who has been appointed for this purpose. Initially, the new BEE franchisee that still lacks broad business management experience operates the business in tandem with an experienced manager; this has given rise to the term “tandem franchising”. The basic concept can be implemented in various permutations as Figure 1 illustrates.

 

21 A properly structured tandem franchising programme facilitates skills transfer and transfer of ownership concurrently. The only exception is option C above because under this scenario, the original franchisee retains a minority share for an indefinite period. Typical financial arrangements The franchisor puts up most of the capital. The BEE franchisee makes a modest but meaningful financial contribution. In exchange, he/she receives shares in the business. In addition to a (usually modest) salary, the BEE franchisee is entitled to share in the profit the business generates but these profits are earmarked for the acquisition of additional shares. The mentor can either be an employee of the franchisor or an external consultant on retainer. For best effect, the arrangement should be linked to the deferred payment of an attractive incentive bonus which becomes payable only if and when the BEE franchisee is ready to take full control of the business. This gives the mentor a strong incentive to work him/herself out of a job as quickly as possible. Transfer of ownership the tandem franchise model makes it possible for a dedicated and hard-working BEE franchisee to acquire outright ownership of the franchised business over a period of 3-5 years. At this point, the mentor withdraws and the arrangement converts to a standard franchise agreement. Everyone wins this type of arrangement has the potential to integrate BEE entrepreneurs into the economic mainstream and help them to create real wealth for themselves. However, the BEE franchisee isn’t the only one who benefits. All other participants in such a scheme benefit as well.

 

22 Some of the advantages Tandem Franchising offers

Franchisor

Prospective BEE-franchisee

Financial institutions, government

 

Equity participation and profit sharing during the period until the BEE franchisee takes full ownership.

Fulfilment of BEE requirements, thereby raising BEE profile of the franchise.

Successful franchisees translate into a successful network

 

 

Realistic opportunity to acquire own business because traditional hurdles to access to finance are removed.

Skills transfer through on-going mentoring.

Additional support provided by the franchisor through the mentor enhances success chances.

 

 

Reduced risk due to additional franchisor support.

Assured advancement of objectives of the Black Economic Empowerment Charter because loans and/or loan guarantees are granted only to previously disadvantaged individuals.

 

 

23

What holds tandem franchising back?

Everyone seems to agree that the concept sounds good on paper and those who have applied it so far will confirm that it works in practice as well. This begs the question why tandem franchising has so far failed to take its rightful place in the mix of expansion tools that are available. In my view, there is only one problem with tandem franchising, namely that it is not properly understood. I further believe that this applies to prospective franchisors and prospective franchisees in equal measure.

Prospective franchisors

Many large (and some smaller) companies could benefit greatly from expanding through franchising and even converting existing branches into franchises because by bringing owner-managers on board, they would rejuvenate their brands. By adding tandem franchising into the mix, they would address their BEE obligations at the same time.

Unfortunately, corporate managers fail to see the awesome power of franchising. They fear that if they entrust the management of outlets to independent entrepreneurs, they will lose control. Not only is this unfounded, it is quite absurd.

If these corporate managers want to grow the business, they can rest assured that owner-operators who have their own money at stake will do a better job than the average branch manager.

A properly drafted franchise agreement, supplemented by a comprehensive operations manual, will ensure that operational standards are upheld and the brand is adequately protected.

This begs the question, “What else do they need to control?” As there is no meaningful answer to this, I can only assume that their reluctance revolves around ego. Given our country’s pressing needs, this should surely take a back seat

 

 

24

Mentor - The mentor has a unique opportunity to create a legacy through capacity building and exit the arrangement with a handsome bonus. Subject to every-thing else being in place, this offers exciting opportunities to recent retirees.

Franchisor - The franchisor benefits on several fronts.

The implementation of meaningful BEE schemes in existing relatively small businesses is notoriously difficult. Tandem franchising facilitates this greatly.

Opportunities for staff to advance their careers are usually limited, making it difficult to motivate good people and retain them indefinitely. The tandem franchise model enables the franchisor to offer qualifying individuals an opportunity to become entrepreneurs. This can do much to rejuvenate the organisation and send its expansion into orbit.

Appointing long-serving managers who either approach retirement age or are recently retired as mentors is an ideal way to utilise their services to best effect.

One could say, of course, that a franchisor is obliged to support its franchisees anyway but this would not be accurate. Given South Africa’s legacy, BEE franchisees, through no fault of their own, require more assistance than a franchisor can afford to provide in exchange for receiving standard franchise fees. A tandem franchise allows the franchisor to participate in the business’s profits during the all-important early period after start-up. This justifies the granting of additional support.

Financial institutions –

Financial institutions, especially FNB Franchising, support tandem franchising. They draw comfort from the fact that in addition to the value of the brand and the regular support services franchisors provide, direct risk-taking by the franchisor comes into play.

The permanent involvement of an experienced mentor reassures them further. In suitable circumstances, this makes it possible for bankers to waive some of the usual banking criteria which may otherwise limit a prospective franchisee’s chances of qualifying for bank finance.

Government and quasi-government organisations - Just like bankers, Government administrators draw comfort from the fact that the franchisor takes a financial risk and is directly involved in the management of the business.

This justifies the granting of loans, loan guarantees and/or training subsidies because it is reasonable to expect that the investment will generate rich dividends in the form of entrepreneurship promotion and the creation of job opportunities.

 

 

25

Prospective BEE franchisees

There is no shortage of prospective BEE franchisees but tandem franchises are not available for the asking. In my experience, they are available “by invitation only” and I cannot see that this will change any time soon. Expecting the situation to change is simply not realistic, for the following reasons:

Initially, the franchisor would have to make a stake in a new or existing business available to an absolute stranger who is unable to make a meaningful financial contribution.

For the next three to five years, the franchisor would have to invest considerable resources to develop this stranger into a successful entrepreneur, with no guarantee of success.

In my view, tandem franchising opportunities will always be reserved to individuals who have proven their mettle, most likely as long-serving employees. I see nothing wrong with that and advise individuals who want to benefit from tandem franchising to start the ball rolling by seeking employment in the company of their choice. A few years down the line, after they have proven themselves, they may qualify for a franchise. I need to caution, though, that this is not automatic, skilled negotiation is required.

 

 

26

Company’s ACTION AND VISION.

Fleet Management.

It is a known fact that the more successful Transport Companies, are very well run on tight schedules and procedures.

It is also a fact that these companies use state of the art equipment to control their fleets and therefore misuse of their vehicles are little to none.

For these reasons Corporate Clients rather make use of these big Transporters because they offer a better service overall and they do not have the extra burden of a lot of clerical work, as they would have if they used 50 different Contractors.

To address these problems Springbok laid the foundations and through years of experience paved the way for Springbok’s Members and joint venture Partners to be of invaluable benefit to the industry as a whole.

Our Members accumulated by many individuals can adapt very fast to any changes in the market whereas the bigger Companies does not have this luxury for instance;

Our Members operate with between 1 and 5 truck units and can easily be reallocated by the market should a contract close for whatever reason.

The bigger competition tends to spend millions in setting up the different infrastructures for each contract they venture into and therefore they are not flexible at all.

Smaller Transporters working together service a vast Clientele and normally start of smaller with the advantage of a smaller risk of being retrenched, if the client’s needs changed.

 

27

Our Members using the same infrastructures collectively with the great advantage that they pay pro-rata for those established resources; the cost per vehicle is a mere R 1, 700 per month.

Therefore though we are so-called small operators we can now cultivate the market share with excellent service delivery same or better as our big competitors.

This enable our Members to budged and if employed still to keep their employment or studies till such time that it is economically viable for them to resign and work in their business full time, thus giving their business amble time to evolve into a sound financial entity.

Should a potential Transporter wish to start up his or hers own transportation business without the assistance as discussed above they face the following difficulties in the market.

The smaller transporters have the disadvantage of obtaining favourable feasible contracts

directly from the Industries Clients, because with due respect to our Clients they want

service and that means they are reluctant to give the smaller contractor a direct contract for

fear of sub-standard service delivery and the extra burden of much more administrative

work for them dealing with a lot of small transportation companies versus one or two big

Transport Companies.

 

28 2. We managed to overcome this burden and shortcoming by simply sharing our joint infrastructures collectively with as many role players as possible and therefore as a consortium of more than 50 Associates working with the same Infrastructure and network we accomplished a very high standard of service delivery. 3. Our Clients receive the same standard of professionalism as from any of our big competitors. We provide a national networking forum and leads with the sharing of our extensive knowledge and information in the construction and transportation Industries. We see ourselves the playing a leading role in construction, transport service Networking, Mentorship and skills transfer Company nationwide playing a crucial role in eradicating poverty. We uplift service quality standards and satisfy the needs of our customers by providing personalized top quality service and expertise. We are currently in an advance stage of the following new projects; To empower Black Drivers through mentorship, skills transfer, and assisting them in all the relevant necessities to manage their transport business professionally, with the help of our expertise and that of our Auditors to become successful Owner Drivers, To ensure the maximum success ratio we insist that our Driver Associates and small Operators let our Auditors and bookkeepers manage their whole financial portfolio thus ensuring that there can be no misuse of their business funds and maintains strict financial policies. After we presented our business concepts to Standard Bank Asset Finance and various other institutions they gave us the go ahead on their terms and conditions. Our Company is currently 100% Black owned with mixed Management.

 

and   Finance and various other BEE institutions they gave us the go ahead on their terms and conditions.

Fleet Management and Mentorship.

 

37 Years of experience and trial and error paved the way for Springbok to be of invaluable assistance to the small Transport operator as follows;

 

The smaller transporters have the disadvantage of obtaining favourable feasible contracts

directly from the Industries Corporate Clients, because with due respect to our Corporate Clients and Industries they want service that is and that means they are reluctant to give the smaller contractor a direct contract for fear of sub-standard service delivery and the extra burden of much more administrative work for them dealing with a lot of small transportation companies versus one or two big Transport Companies.

 

We managed to overcome this burden and shortcoming by simply sharing our joint infrastructures collectively with as many role players as possible and therefore as a consortium of more than 50 Associates and Franchisees working with the same Infrastructure and network we accomplished a very high standard and effective service delivery.

 

Our Clients receive the same standard of professionalism as from any of our big competitors. We provide a national networking forum and leads with the sharing of our extensive knowledge and information in the construction and transportation Industries.

We see ourselves the playing a leading role in construction, transport service Networking, Mentorship and skills transfer Company nationwide playing a crucial role in eradicating poverty.

We uplift service quality standards and satisfy the needs of our customers by providing personalized top quality service and expertise.

We are currently in an advance stage of the following new projects;

 

To empower Black Drivers through mentorship, skills transfer, and assisting them in all the relevant necessities to manage their transport business professionally, with the help of our expertise and that of our Auditors to become successful Owner Drivers,

 

To ensure the maximum success ratio we insist that our Driver Associates and small operators let our Auditors and bookkeepers manage their whole financial portfolio thus ensuring that there can be no misuse of their business funds and maintains strict financial policies.