In this series, we will look at the businesses in the various stages of the Supply Value Logistics Chain, instead of looking at specific businesses, we will take an abstract look at the value chain in this link of the supply chain. This can be used as a guideline or framework to choose a business idea.
This is part of a series on How to Start, Run, Grow & Fund a Business in South Africa. These pages has to be read in order:
- How to Start, Run, Grow & Fund a Business in South Africa (using what you currently have)
- Choosing the right Business Idea for You
- Writing the Business Plan
- Supply Value Logistics Chain – Research and Understand Your Industry
- Raw Materials Business
- Equipment Business (The tools used to process the raw materials)
- Test if Business Idea is right for you
Today we will look at the supply of equipment. Our Value Chain looks like this:
An equipment business supplies the tools used to process raw materials in the manufacturing process. It does not have to be something complex, the best example is selling shovels during a gold rush. The material is usually the “consumable” that is used up when making. The equipment makes. Also a very loose definition within our context, it does not have to explicitly manufacture a product. It can be general business equipment to carry out business activities.
Let’s look at some examples using our value chain examples:
- If you want to make vinyl (material) wall art, you need a vinyl cutter (equipment) to cut it into the shapes you need.
- If you want to print mugs using the sublimation process – you need a sublimation printer and a heat press (equipment), your materials will be the heat transfer paper and the ink
So this business supplies equipment, as you can see from above, it can be very broad, but it can also be simple like supplying basic tools.
Equipment Businesses covered by Khoi Capital
Build and Sell Biltong Making Machines
Hire out Popcorn, Candy floss and Slush Machines
Start a Scaffolding Hire Business – Equipment used to build with or clean windows
Build and Sell Point of Sale (POS) Systems – Equipment used in a retail shop to sell items and keep track of stock
Buy & Sell Water Storage Containers and Tanks – Equipment to store liquids
Make & Sell Car Ramps – Equipment used bt mechanics to work on cars
Buy & Sell LED Strip Lights – Equipment used to grow plants or animals, (Not sure how much warmth LED lights provide though)