Cement is used in almost all construction projects; our civilization has been built using cement. This is a guide on how to start a cement business in South Africa.
It’s important to note that there is a difference between concrete and cement. Cement is the powder and concrete mixture of cement, sand and gravel stone. For this article, we will focus entirely on how to start a cement business.
Overview
Cement manufacturing is not something that is done by a lot of companies. The barriers to entry are not that high yet most entrepreneurs aren’t pursuing this opportunity. Mostly because the barriers to entry are perceived to be high and there is very little information surrounding this field.
This is one of the most lucrative businesses, cement will always be in demand, humans will always use cement. There is also very little competition in this field, this means that you will have an opportunity to get a significant market segment.
Get experience
You can create cement by yourself but you need to have some experience in order to create the best product. Cement is mainly created from limestone, which is often found on a riverbed. Limestone is very soft and breaks easily. You have to cook the limestone in an outdoor oven at 900 degrees for up to 5 hours. Leave it for another 4 – 5 hours to cool down then take it out and break it. It will break into a fine powder which is cement.
This is something that you will do when baking your own cement, however, try to volunteer on any cement manufacturing company as a start. This will give you an indication of everything you need, including the protective gear.
Get operating premises
Your operating premises must not be far from your source of limestone. You can choose to mine the limestone yourself or buy it from other suppliers. Of which you will have to factor in the cost of transportation. Your operating premises should also be within close proximity to hardware stores and construction sites.
Buy equipment
Cement equipment can be very expensive, you will have to spend a lot of money in this department. You will have to buy a cement crusher, there are various types of cement crushers, including cone crusher, hammer crusher and impact crusher. Other types of equipment you will need are the cement mill, cement kiln, clinker cooler and dryers.
Although it’s completely possible to make cement using the methods we explained under “Get experience”, you will need machinery to run a professional operation. This machinery can be very expensive and prohibitive.
Register your business
You will also have to register your business with the CIPC and other relevant departments, registering a business only costs R175 in South Africa. There are many benefits to registering a business, ranging from tax benefits to getting government tenders.
Hire the right employees
You will need a few people to help you with your operations. This is not a business you can run entirely on your own. It’s very important to hire people who have experience when hiring for critical positions. This will save you a lot of time and increase your productivity.
Branding and packaging
You don’t have to invest much into branding, a simple logo will suffice and a durable paper bag will work just fine for packaging.
Getting funding
This is a very expensive operation; you might want to share the risk with other investors. Getting funding for this type of business should not be difficult but you will be expected to come up with a significant portion of the share.
Build the factory by yourself and only apply funding to buy equipment, this will significantly increase your chances of getting funded. There are multiple government institutions that will fund you, these are institutions like the NYDA.
Marketing your business
Traditional marketing will not produce the best results, having a Facebook page won’t really bring you enough clients. You need to focus on getting hardware stores to buy your cement and buy it in bulk. People still need to choose your cement when they get to the hardware store; you can use billboards to advertise your cement, the billboards should be strategically placed in a way that the customer will see them before getting to the hardware.
Conclusion
This was a guide on how to start a cement business in South Africa. Do you have any thoughts or questions? Comment below.
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