Move from high potential supplier to purchase order
Are you a budding entrepreneur? Have you been knocking on doors but failing to get a foot over the threshold? What’s holding you back? According to Kyle Ballard, Head of Accelerators at BMA, one of the greatest challenges for SMEs is getting their product in front of decision-makers. And, even when they do, they’re often unable to demonstrate their potential for success to interested parties.
“We’ve created a framework to help SMEs identify and overcome these procurement pitfalls and unlock highly sought-after commercial opportunities,” explains Ballard. “When pitching to big business, it’s important that small businesses have clarity on their unique value proposition, are committed to adding value within their supply chain, and understand their customers’ needs,” he adds.
To help them do just that, the framework encourages SMEs to focus on their 6 Cs:
1. Commitment: Demonstrate your commitment to add value and your ability to be proactive in meeting your customer’s requirements.
2. Capability: Explain that you have the processes, equipment and skills needed to produce the goods or services your customer requires.
3. Competitiveness: Reassure your customer that you can offer them the best price and quality while meeting their logistics requirements and need for innovation or new product development.
4. Compliance: Prove your integrity, credibility and reliability by showing your customer how you adhere to the necessary legislative, social and ethical compliance, and mitigate risk in your industry.
5. Capacity: Establish your ability to supply sufficient volumes by highlighting the number of units you currently produce and explain how you are structured for growth.
6. Cash: Show that you either have sufficient cash reserves for raw materials and working capital, or you can leverage flexible financing to strengthen your competitive advantage.
“By demonstrating their 6 Cs, small business owners are far more likely to be perceived as high potential, high commitment suppliers by leading retailers and receive a coveted purchase order over those who haven’t been able to do so,” explains Kyle.
To help them bridge the often difficult gap from high potential to purchase order, Kyle suggests SMEs join a Business Accelerator programme designed to open up market access and support growing their business to scale.
“The KwaZulu-Natal Clothing and Textile Cluster and eThekwini Furniture Cluster Business Accelerators aim to empower entrepreneurs and successfully connect small businesses with big customers,” says Kyle. Providing support through expert industry mentorship, business case development and more, these Accelerators have a proven track record, having unlocked over R150 million in new commercial opportunities and over 870 jobs so far.
Funded by the eThekwini Municipality, the Accelerator brings key stakeholders together to facilitate meaningful transformation and localisation within the industrial manufacturing sector. Leading retailers are catalysing change within their supply chain, sourcing locally and investing in local furniture, clothing and textile sectors to grow local capabilities and employment.
In the clothing and textile sector, Mr Price Sport, Mr Price Apparel, Miladys, Pepkor Speciality and Woolworths are looking for garment manufacturing specialists, as well as unique sustainability offerings incorporating innovative packaging, logistics, and raw materials into their value propositions to customers.
In the furniture sector, Homewood, Mr Price Home and @home are eager to find suppliers capable of designing and manufacturing products for their end consumers, especially where sustainable and cost-effective packaging, raw materials and innovative logistics offerings can be incorporated.
So, what are you waiting for? Don’t wait another year to fulfil your dreams as a small business owner in South Africa; take advantage of this opportunity to get your business in front of these big names, today.
This is the last call for SMEs to apply for the 2023 Accelerators – applications close Tuesday, 28 February 2023!
CLICK HERE to submit your press release to MyPR.co.za for free.
Submit your Press Release for free to MyPR here: MyPR Free Press Release Submission.