Page 1 - NHBRC

CITY PRESS, 6 NOVEMBER 2016

A
project
in partnership
with the

NHBRC

opportunity index SAVVY Back row from left: Mapula Maupye of Hlahlane Developers, Asnath Phokungwana of Snotsile Projects, Nancy Letsoalo of Maphiri Business Enterprises, Asina

Tladi of Kasmats General Trading cc, Mmanape Mothapo of Cosmic Gold Trading 173 cc and Faith Masefoko Machaba of Machaba Tau Construction. Middle row from

left: Boetseng Makhele of Betsy Building Construction, Modiegi Ntsoane of Kgakwana Construction and Enterprise, Dikeledi Dlamini of Didintle Supply and Projects

and Maboko Mokwena of Lungi and Basie Constructors. Front row from left: Matseleng Lekganyane of Lesedi Real Homes Properties, Thabang Matlala of Mmallale

Business Enterprise, Shirley Maraba of Kemong Trading Enterprise and Elizabeth Machethe of Maitemolatelo Business Enterprise PHOTO: LEON SADIKI

Success is cash

managed wisely

Knowing when to borrow money, how and when to save it, and what to spend
it on are just some of the topics covered in the financial management
lectures currently being held for entrepreneurs who are attending the

National Home Builders’ Registration Council’s Empowerment Programme
at the Gordon Institute of Business Science. Some of the delegates from
Limpopo tell Sue Grant-Marshall how they manage money

‘For a successful entrepreneur, money can should rather invest in a construction plant and property.” Her business concentrates on electrical and building
mean extreme wealth. But with extreme One delegate told Kgokolo: “If I had known about better contracts, and she says: “You take a risk in order to grow, but
wealth comes extreme responsibility. And it needs to be a carefully calculated risk.”
the responsibility for me is to invest in places to invest my money and make it grow, I would be much
creating new businesses, create jobs, further down the track in my business right now.” She also hired an accountant “to assist me with negotiating
employ people and put money aside to with creditors”.
tackle issues where we can make a difference,” said Richard Kgokolo explains the advantages of investing money. “If you
Branson, founder of the Virgin Group. save, it illustrates to potential clients that you have financial She invested in machinery and property when she had the
discipline and can look after money responsibly.” money to do so.
He succinctly summarises what many women who own
construction businesses feel about managing money. You can also use it as collateral if you need a loan. She’s upfront about why she went into construction: “I did
“Additionally, if one of your suppliers needs capital for this to make money and to grow, and I am also passionate
“Every business exists to make money, but it needs money materials, you might lend him some. You’ll have created a about the industry.”
to start it off and this goes to the heart of financial planning,” good contact for the future.”
says Thomas Kgokolo, a part-time lecturer at the Gordon Dikeledi Dlamini is the founder of Didintle Supply and
Institute of Business Science on the National Home Builders’ Kgokolo advises delegates on investment strategies and Projects in Phalaborwa, which specialises in building and
Registration Council (NHBRC) course. investment management, and feels strongly that these topics mining construction.
should be included in general business courses.
He has been talking on the topic for many years, and has a She bravely says that she was once in debt and got out of it
company that focuses on strategic wealth creation for Machaba says that her family helped her financially when by consolidating it into one account.
businesses. she started her civil and general building services, “until my
cash flow was good enough for the bank to start financing my “I was given two years in which to pay it off and I achieved
A lot of teaching revolves around “where to get money. We projects”. that,” she says with satisfaction.
need to explain where to invest money to make it work hard
for you,” explains Kgokolo. Doing financial studies at school and always being passionate Her business got off the ground when Palabora Copper,
about proper financial planning has been a big boost for which was originally owned and managed by Rio Tinto,
He’s aware that construction projects, especially government Maboko Mokwena, CEO of Lungi and Basie Constructors in financed her.
contracts, are seasonal, and that big sums can be made, but Polokwane.
then there can be months with no work and therefore no “They were looking for excellent ideas to fund and,
income. She makes a point of steering clear of debt “by raising fortunately, I was one of the successful candidates.”
enough working capital so that I don’t have to borrow unless it
“So, for every profit you make, save money to fund future is absolutely necessary. And then I pay it back as quickly as Dlamini has now been in business for seven years and her
projects. You’ll need working capital to get materials and to possible to save on interest charges.” company focuses on building low-cost housing, manufacturing
hire machinery. reinforced concrete, mining and steel works.
She was once blacklisted for “some minor debts and it made
“If you have saved money from previous contracts, you me aware of how a bad record can slow the growth of your Dlamini studied business management before going on the
won’t have to waste time when you land a new one by business. I have had to make sure this does not happen again.” NHBRC programme, so learning about financing is not new
running around to find capital for it,” he advises. to her.
Mokwena learnt early on to keep some of the money she
He says that a couple of delegates on the NHBRC courses made “in different investment funds. I have both short-term “I cannot emphasise enough how important it [sound
have been close to tears as they explain how they have wasted and long-term investments, so I can access some of the money financial planning] is to the success of your business.”
their money. should I need to do so.”
Mapula Maupye of Hlahlane Developers in Polokwane does
“Some buy expensive cars or go on costly holidays. Cars are Kgokolo points out that sometimes it’s not a good idea to maintenance, renovations and construction of RDP houses and
not an asset and they don’t look good in your financials.” pay creditors immediately. “Collect first from your debtors and schools.
then pay your creditors. This will ensure good cash flow.”
Faith Machaba, CEO of Machaba Tau Construction in She ventured into construction “to benefit, as a woman, in
Polokwane, says that “rushing off to buy cars is one of the Elizabeth Machethe of Maitemolatelo Business Enterprise in this previously male-dominated industry”.
biggest mistakes that we make. We learn the hard way that we Polokwane believes that getting into debt to finance growth is
sometimes a good idea. “I particularly wanted to contribute to the development of
our country.”

In so doing, she is following in the footsteps of that
extraordinary entrepreneur, Sir Richard Branson.

HOW TO GET REGISTERED

1. Download the form from the NHBRC website Consumers Protection Measures Act for any person to The NHBRC will issue a registration certificate to a
(nhbrc.org.za). knowingly withhold information or to provide false or homebuilder where it has received:
2. Complete it and include your payment for the registration misleading information in their application. Every director,
(see the fee structure on the NHBRC website). trustee, managing member or officer of the applicant, who . Written acceptance of any conditions;
3. Return both to the NHBRC. knowingly permits such a contravention, can be fined up to . Any sureties, indemnities or guarantees requested,
4. Contact your nearest customer care centre. R25 000 and/or be given a one-year prison sentence on signed and completed; and
Before a homebuilder is registered, the NHBRC may require, each charge. . Payment of the registration fee.
as a precondition for registration, the satisfactory Assurance of confidentiality Period of validity
rectification of previous construction-related problems, such
as the rescinding of a court judgment. The NHBRC and any persons contracted by it will treat The registration of a homebuilder remains valid for one
any financial information as confidential. year and is not transferable. Only the registered
The NHBRC may require additional information from the Guarantees homebuilder may use the certificate and registration
homebuilder or any other person and may conduct an number. No other company, person or other entity may use
investigation that is considered necessary to assess your Where the NHBRC receives an application from a it to enrol homes or for any other purpose.
application. homebuilder with associates, the NHBRC will require Renewal of registration
Warning guarantees from the associates.
Every homebuilder will apply annually for the renewal of
It is an offence in terms of section 21(1) of the Housing This requirement is covered by section 10(5) of the act. his or her registration with the NHBRC. This must be done
Issuing of registration certificate before the current renewal date of the registration.