SIYAKHA DEVELOPMENT

AGENCY

BUSINESS PLAN
EXECUTIVE SUMMARY
The current business proposal is for Siyakha Development Agency, a skills
development training centre that is meant to assist locals and small businesses alike
to be self-sufficient. The business idea has come from the problem of a high crime rate
in the country, which can be associated with the lack of employment opportunities for
the youth and young adults alike; the idleness inevitably leads to increased crime,
especially in a country that is currently rated 3rd in terms of criminal activity. All the
same, by providing skills to the idle members of the community, there is a high
likelihood that the crime rates in the country my drop significantly. Our other target
groups for training are Small and Medium Enterprises that have just come into the
business fold. After having done a SWOT analysis of the proposed business, some
key points that were revealed is that the business is strong when it comes to personnel
who can deliver the program objectives effectively and efficiently. A major threat, like
any other training centre facility, is the unfavourable government policies and
economic situation that may increase the incidence of crime, which is the very problem
that the business is trying to solve. In terms of marketing, all methods and avenues of
communicating shall be utilized, i.e., social media, TV, radio, hard copy prints, bill
boards et al, so as to get the message out there of our intention to operate. Financially,
we have managed to received seed money to the tune of R250, 000. A budget for the
proposed start costs has been made accordingly for the upcoming 2 months. The full
amount will be utilized over the 2 months as we have faith that, as more donors see
the good work we are doing, we will be able to acquire more funds and be able to
serve more clients after the 2 months period. Ideally, as a not-for-profit business, our
achievement will come in the form of social capital and acceptance that we will receive
as more and more clients, both youths and SMEs join the Siyakha band wagon.
However, it should be noted that whilst the training services will be classified as free,
we will require a small fee to cater for our management and employee team so as to
appreciate their efforts in bringing this most welcome development.
Table of Contents
EXECUTIVE SUMMARY ................................................................................................................ 2
Business and Product Description ........................................................................................... 4
SWOT Analysis ............................................................................................................................... 7
MARKET ANALYSIS ...................................................................................................................... 9
Market Trends ............................................................................................................................. 9
Our Target Market ...................................................................................................................... 9
Marketing Strategy and Sales Strategy .................................................................................. 10
Management team........................................................................................................................ 13
Start-up Expenditure (Budget).................................................................................................. 14
Operations, Sustainability and Expansion Strategy ........................................................... 16
Conclusion ..................................................................................................................................... 17
REFERENCES ............................................................................................................................... 18
Business and Product Description
Background of Business Idea (Problem Statement)

Since 2010, unemployment rates have fluctuated between 24 and 29 percent, with
women's jobless rates being 5 percentage points higher than men. The overall
unemployment rate in 2019 was 29.1 percent. Young people are the most vulnerable
category in the South African labour market: in 2019, the unemployment rate for those
aged 15 to 25 years was 58.2%, indicating major inequities in labour market access
and shortcomings in the school-to-work transition (Statistics South Africa, 2019a). The
percentage of young people aged 15–24 who are not in employment, education, or
training (NEET) is high, at 29% for males and 34.2 percent for women (ILO, 2019).
Finding solutions to the shortage of employment and educational options for young
South Africans is a major concern with over 45 percent of the population under the
age of 25. (CIA, 2019).

South Africa's crime rate has risen considerably in recent decades, despite
expectations that it would decline after 1994. Because of these high rates, our
economy has suffered, and the tourism industry has suffered as a result. Because of
the high crime rate, citizens have found it difficult to roam around freely because they
are concerned about their safety. According to the most recent statistics, South Africa
has risen to third place in the world.

The Solution
My business idea will play a huge role in the community as it will help better the
situations that our youth is currently facing.
• How? My business will be offering skills development which will help the community
in starting their own businesses and thinking out of the box.
Siyakha Development comes with over 10 years of experience of advising on the
development of enterprise from community-based enterprises
Code of Ethics
Siyakha Development Agency will be governed by the following principles:
• Integrity and fairness – An entity that works with integrity and fairness goes far. We
value all opinions.
• Teamwork – Two is better that one, let’s work as a team and get impressive outcome.
• Growth – Our aim this entity is to always strive for growth by putting in your all.
• Respect- We are an open-minded organisation by that we create safe working
environment. (Van Aardt & Bezuidenhout, 2019:213-215
We provide support through a number of approaches
• Develop proposals with stakeholders that address particular and strategic
community needs in order to promote entrepreneurship as a tool for overcoming
barriers and contributing to long-term solutions in disadvantaged communities.
• Promote events focusing on the concepts and benefits of co-operatively operated
businesses to inform potential funders and beneficiaries of successful practice and
the creation of new ideas.
• Directly create and operate businesses to strengthen recipients' capabilities and
ensure their long-term viability.
• Working directly with a group to develop an enterprise, which will begin with defining
goals and objectives, decision-making and ownership, feasibility and full business
planning, as well as practical implementation, including detailed financial plans and
assessments.
• Business start –up centre, providing free or subsidised space to new or young
businesses in our business unit

Training; and Training Centre

All of the work we do at the organization revolves around training and skill
development. To achieve long-term results, we believe in growing the skills and
expertise of the people we work with. We provide training for governmental, private,
and non-profit organizations, as well as people, to help them modify their behavior.

SDA shall be recognized as a training center with only one (1) accreditation agency,
the South African Services Sector Education and Training Authority (SETA). We will
conduct training courses to residents in the near community and will collaborate with
a number of different training providers to ensure that the people we work with have
access to ongoing learning opportunities. These include bakers, butchers, and those
with other beneficial expertise, such as social networking, as well as a number of
institutions engaged in catering training, business enterprise training, consultants and
advisors from various stakeholders, and other enterprise support advisors and
individual trainers; bakers, butchers, and other enterprise support advisors and
individual trainers; bakers, butchers, and those with other beneficial expertise, such
as social networking

For every successful business there’s an entrepreneur with good characteristics

behind it. I have the ability to lead a business and make it a success and not afraid to
take risks. I am a strong believer in setting goals and achieving them. I am a very
business driven person with passion. Most importantly I am a very confident person
who is not afraid of new challenges and always willing to take the risks. With my
leadership skills that I possess I believe I can make a business successful. I am
innovative and creative always coming up with new ideas and bringing them to life. In
everything that I do I am very persistent as it is not always that you will win on every
first attempt. So, you just have to keep on pushing until you make it. As we all know
that you cannot have all the qualities that make a good entrepreneur, some
departments you will lack, and it is okay. I find myself not being able to work well in
team simply because at times we do not share the same vision and how we want the
business to turn out. I also don’t work well under pressure as I believe in planning and
getting things done within a certain time frame, which in business is not good because
some days you are required to work under pressure on some things. With all that being
said I am very open-minded and always willing to explore.

Because of the high unemployment rate there is a huge gap in the economy therefore
there is a need.
• As the owner of the organization it is something that I am passionate about, giving
back to the community by developing their skills and always looking for opportunities.
• This idea will be likeable because it will be bringing change to the economy and
actually building better leaders.
• It is Sustainable and can grow, with the country facing high crime rate it will take
some time to actually reach our goal.
• This idea is a problem solver in the economy. (Study ‘n’ Learn, 2021)
This will be a non-profit organisation, because we are a skills development agency.
So mostly we will be operating the business from sponsorships.
Our training will be:
• Run by experienced, professional trainers with current industry experience
• Flexible. We offer accredited, non- accredited, bespoke, in-house training & our
own training facilities (including work experience)
• Innovative and up to date, meeting gaps in mainstream provision including new
products where needed
• Adapt to customer needs; bespoke
SWOT Analysis

Normally, we could successfully manage a development center without the burden of

going through the required protocol for starting a new business, but due to the nature
of the vocational school & training center that we wish to open, we do not have any
other choice but to go through it through the proper channels.

We engaged an HR and business consultant with a focus on start-ups to assist us in

doing a SWOT analysis for our company, and she did an excellent job. The following
is an example of the outcome of the SWOT analysis we conducted on behalf of
Siyakha Development Agency, PLC.

Strength:

Siyakha Development Agency will be centrally placed in an area with ideal climatic
and demographic characteristics for the type of business we intend to establish.
Another advantage we have is the strength of our team, which includes our employees
and management. We have a staff of talented and devoted professionals who are
recognized specialists in the field of skills development.

Weakness:
Siyakha Development Agency is a young company with limited financial resources to
buy the latest equipment required to train locals, recruit and retain the greatest talent
in the field, and maintain the level of publicity we desire. More so, given that the
company aims to train unemployed people who are at danger of engaging in criminal
activity, it may be difficult to attract this demographic, especially given the high rate of
crime in South Africa on a daily basis.

Opportunities:

Siyakha Development Agency is a young company with limited financial resources to

buy the latest equipment required to train locals, recruit and retain the greatest talent
in the field, and maintain the level of publicity we desire. More so, given that the
company aims to train unemployed people who are at danger of engaging in criminal
activity, it may be difficult to attract this demographic, especially given the high rate of
crime in South Africa on a daily basis.

Threat:

Unfavourable government policies, seasonal fluctuations, demographic/social factors,

a downturn in the economy that will likely affect people coming through the doors to
attend training sessions, and, of course, the emergence of new competitors within the
same location where our skills development center is located are some of the threats
that will likely confront Siyakha Development Agency.
MARKET ANALYSIS
Market Trends
The truth is that any vocational school or training center with a good track record and
a large number of favourable testimonials from former students will always prosper.

Another frequent tendency in the industry is that most players participate in other
connected services in order to survive the global economic catastrophe and secure a
stable flow of cash to efficiently run the firm (Allais, 2012). Others even go so far as to
set up agency services to provide clients with competent and certified pilots, and some
even give specific training for executive pupils.

It is a well-known tendency that when unemployment decreases, demand for these

types of courses decreases, as additional education and training become less
necessary for obtaining work. However, according to Woolard et al, (2008), South
Africa's national unemployment rate has been rising in recent years, creating an
opportunity for the business.

It is also a well-known fact that state governments fund post-secondary education,

with contributions primarily consisting of grants given to universities to be used for
specific research. Enrollment at technical and trade schools will increase as
government support for universities improves, as government money often increases
affordability for students who need college loans. Universities' government funding is
likely to diminish, which could create an opportunity for the industry.

Our Target Market

We completed detailed feasibility studies and market surveys before deciding on a
location for our vocational school and training center, and we were able to identify
people who would greatly benefit from our services.

Individuals, school leavers, newly formed Small to Medium Enterprises, aspiring

entrepreneurs, and religious groups who require trade and technical skill sets are all
part of the demographic and psychographic composition of those who want our
services.

• Our competitive advantage

Despite the fact that skills development centers must overcome obstacles before
becoming established, this does not rule out the possibility of actual rivalry in the
market. The truth is that no matter what line of business one is in, as long as it is
named business, one will almost certainly encounter some type of competition, and
vocational schools and training centers are no exception. Furthermore, as previously
said, even if the firm is not for profit, competitors will come to take advantage of any
potential social capital that the business may have.

Our competitive advantage is our ability to quickly embrace new technologies, as well
as our access to a highly skilled workforce. Our location is also one of our primary
assets, as we are situated in an area with the proper demographics for the type of
business we operate.

Another advantage we have is the strength of our staff and management. We have a
staff of talented and motivated professionals that are recognized specialists in the
vocational school and training center industry.

Finally, all of our employees will be well cared for, and their benefits package will be
among the finest in our field. It will enable them to be more than willing to work with us
to build the business and assist us in achieving all of our business goals and
objectives.

Marketing Strategy and Sales Strategy

Siyakha Development Agency, PLC's marketing approach will be primarily driven by
exceptional customer service and high-quality training delivery. We will work hard to
develop a loyal consumer base.

We wish to increase sales by using the output of our jobs and referrals from happy
students. We understand how satisfied students promote corporate growth,
particularly in industries such as vocational schools and training centers, as well as
related services.

Siyakha Development Agency, PLC is strategically positioned, and we intend to

leverage the potential that exist, which is why we invested more in locating the
company where it will be visible and accessible to our target market.
Our marketing team will be recruited based on their vast experience in the industry
and they will be trained on a regular basis so as to be well equipped to meet their
targets.

Publicity and Advertising Strategy

Siyakha Development Agency, PLC is set to create a standard for the vocational
school & training center business not only in Johannesburg, but throughout South
Africa which is why we will go all the way to adopt and apply best practices to promote
our business.

Our vision is for Siyakha Development Agency, PLC to become Johannesburg's

premier vocational school and training center, which is why we've devised tactics to
help us take advantage of the available market and expand into a major force in our
industry.

There are no hard and fast rules for marketing a vocational school and training facility.
The platforms we want to use to market and advertise Siyakha Development Agency,
PLC are as follows:

To attract clients, Siyakha Development Agency, PLC plans to use the following
marketing and sales methods.

• Introduce our vocational skills development center to a large number of homes

in the community, as well as other key stakeholders in and around the city, by
mailing introductory letters and a brochure.
• Print fliers and business cards and place them in important locations such as
offices, libraries, public facilities, and railway stations, among other places.
• Make use of your friends and relatives to spread the word about our company.
• Post flyers about the training facility and the services we provide on bulletin
boards in schools, libraries, and local coffee shops.
• Place a small or classified advertisement about our vocational school & training
center and the services we provide in the newspaper or a local magazine.
• Use referral networks to your advantage.
• Advertise our vocational school and training center in entertainment
magazines, newspapers, television, and radio stations.
 • To sell our services, we attend relevant expos, seminars, and business fairs,
among other events.
• Use a direct marketing strategy.
• Encourage students/clients who are loyal and satisfied to employ word-of-
mouth marketing.
• To market our services, we should join local chambers of business and industry,
as well as other relevant organizations.
• Leverage on the internet and social media platforms like; Instagram, Facebook,
twitter, et al to promote our brand
• Install our billboards on strategic locations all around the city

Week Week Week Week Week Week Week Week

Marketing Tasks (2022) - 8 weeks 1 2 3 4 5 6 7 8
Discussion Marketing Plan
Adoption Marketing Plan
Preparing plan training activities for
2022
Adoption plan training activities for 2022
Production brochure 2022
Direct marketing training programme
2022
Advertisement
Distribution brochure 2022
Advertisement each time before start
training programme
Prepare Training Needs Assessment
Carry -out Training Needs Assessment
Organisation Workshop on Training
Needs
Preparing plan training activities for
2022
Adoption plan training activities for 2022
Production brochure 2022
Direct marketing training programme
2022
Distribution brochure 2022
Management team
We want to create a company with a dedicated workforce that will go above and
beyond to ensure that our students are satisfied and get good value for their money
when they enrol in our training and skills development facility. We recognize that
achieving all of our goals will require a firm with the right staff and structure, which is
why we will be putting structures and standard operating processes in place to enable
us deliver quality trainings and run the business on autopilot. It should be highlighted
that for the first few months of operations, there will only be three full-time employees
who will need to take on numerous duties in order to save money on remuneration
while ensuring that all business activities are thoroughly attended to.

Founder/Director

Some of the duties of the Founder/Director of the centre will include but are not limited
to:

• By recruiting, selecting, orienting, training, coaching, counselling, and

disciplining managers; conveying values, strategies, and objectives; assigning
accountabilities; and planning, monitoring, and appraising job results,
management becomes more effective.
• Creates, communicates, and implements the organization's vision, mission,
and overall direction - in other words, leads the development and execution of
the overarching strategy.

Accountant/Marketing and Sales Executive

The duties of the Accountant/Marketing Executive will be centred around the following:

• Identifies, prioritizes, and contacts new students, business possibilities, and

other opportunities.
• Identifies development prospects and follows up on leads and contacts for
development.
• Keeps track of all customer contacts and information.
• Attends strategic meetings on behalf of the organization.
• Financial reports, budgets, and financial statements are prepared for the
organization. Financial analysis, development budgets, and accounting reports
are sent to management.
 • Financial forecasting and risk analysis are my responsibilities.

Receptionist/ Client Service Executive

• Students and guests are greeted in person or over the phone, and questions
are answered or directed.
• Ensures that all client interactions (email, walk-in center, SMS, or phone) give
the client with a tailored, high-quality customer service experience.
• Uses every chance to pique clients' interest in the company's products and
services by interacting with clients over the phone.
• Stays up to date on any new information about the training centres’ products,
promotional efforts, and so on in order to provide students with accurate and
helpful information when they have questions.
• Organizes and distributes mail inside the company.
• Assumes any further responsibilities delegated by the director.

Start-up Expenditure (Budget)

We were able to raise enough funds to effectively launch and manage a standard skills
training facility in Johannesburg for the first two months. Although expenses may vary
slightly, the table below covers the essentials we'll need to start our vocation school
and trade center in South Africa.
 START-UP COSTS
Siyakha Development Agency* June 17, 2022

COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST (RANDS)
Advertising/Marketing 2 R600.00 R2000 R3, 200.00
Employee Salaries (3) *
2 R3, 500.00 R21, 000.00
(Founder; Accountant; Receptionist)
Employee Payroll Taxes and Benefits 2 R500.00 R2, 000.00 R4, 000.00
Rent/Lease Payments/Utilities 2 R1, 500.00 R3, 000.00
Furniture (15)
2 R27, 000.00 R27, 000.00
Includes Colby Computer Desks & Chairs
Training Material (Printing) 2 R2, 000 R4, 000.00
Consultants (2)
2 R56, 000.00 R112, 000
Consultancy Rate @ 28k per consultant per month*
Cash on Hand (Working Capital) 2 R5, 000.00 R10, 000
Computer Equipment (10)
2 R45, 000.00 R45, 000.00
This includes 10 desktops
Internet Services (WiFi) 2 R1, 100.00 R2, 000.00 R4, 200.00
Business Licenses/Permits/Fees & Accreditation* 2 R1, 000.00
Bank Balance 2 R16, 600.00 R16, 600.00

ESTIMATED START-UP BUDGET R250, 000.00

*Siyakha Development Agency – This business is a not-for-profit organization. As such, there will be no financial gain from the money
obtained from donors. However, the impact of the skills develop program should lead to the reduction of crime rate in the country as
more locals will be more productive and less engaged in highly illegal activities.
*Employees – The business will have 3 formal employees who will hold multiple roles during the first 2 months of operations.
*Consultants – There will be one business trainings consultant and one social training consultant. The 2 will work in unison and
prepare training sessions for unemployed locals to boost their business and societal skills so as to fit into the community well after
receiving the training
Operations, Sustainability and Expansion Strategy
The amount of people who feel they need to change the trajectory of their life coming
through the door, the capacity and competence of their personnel, their investment
plan, and the business structure all play a role in a company's future success. If a
business lacks all of these elements, it won't be long before it closes its doors.

One of our main objectives in establishing Siyakha Development Agency, PLC was to
create a company that could run on its own cash flow without the need for outside
funding once the company was up and operating.

OPERATING PLAN
Furthermore, it is necessary to describe how Siyakha Development Agency is now
developing and maintaining a loyal customer base, as well as how we will continue to
do so in the future. This will involve management responsibilities (as previously stated)
as well as the ability to track results.

Because Siyakha Development Agency is a service-oriented company, key parts of

the plan, such as how to bring services to market and how we will support clients, must
be covered. The logistics, technology, and basic blocking and tackling of our business
are described below.

• Service Order Fulfillment: Given that we are primarily offering a service to

individuals and Small to Medium Businesses (SMBs) who are new to the business
world, it is prudent to be familiar with the day-to-day operations of the company.
To begin, we will be looking for individuals within the community who are
unemployed and have seen the devastating effects of idleness in the face of rising
costs of living, with no light at the end of the tunnel, as the main motivation for
providing skills trainings to the local community in an attempt to reduce cases of
crime throughout the city and the country as a whole. We may then move on to
providing life skills and business skills so that they can become productive
members of the country by engaging them and persuading them to alter their
attitude on life and take control of their destinies. Life skills will primarily focus on
obtaining a driver's license, using a computer, and communicating effectively in a
variety of settings, whereas business skills will primarily focus on entrepreneurship
and everything that falls under that umbrella, including but not limited to: business
registration, bookkeeping, marketing, and so on.
• Payment: Because the company is a not-for-profit, these trainings are provided
free of charge. However, all participants chosen to participate in the trainings will
be required to pay an R50 one-time fee that will cover their trainings and any other
material that will be given to them in order to maintain rental of facilities and be
able to offer remuneration for personnel. A fee of R100 will be charged to Small
and Medium Enterprises.
• Technology: Technology is a driving force in today's economic world and personal
life, and it should not be overlooked. The majority of the trainings will be conducted
via online platforms within the facilities, such as Microsoft Teams and Zoom, as
recommended by the consultants who will be providing these trainings. This isn't
to mean that face-to-face instruction will be unavailable.
• Key Customers: Unemployed individuals (both juveniles and young adults), as
well as newly sprung Small to Medium Enterprises, are the agency's main
consumers (with less than 6 months in business). As the company expands, there's
a good chance we'll expand our customer base to include large organizations as
we expand our service offerings.

Conclusion
Having discussed the major components of the proposed business, it would be wise
to highlight some of the major points. The company concept was inspired by the
country's high crime rate, which can be linked to a lack of employment options for kids
and young people alike; inactivity inevitably leads to increasing crime, especially in a
country that ranks third in terms of criminal activity. Nonetheless, by offering skills to
the idle members of the community, crime rates in the country are likely to decrease
dramatically. Small and Medium Enterprises (SME) that have recently entered the
business world are another target category for training. After conducting a SWOT
analysis of the proposed firm, it was discovered that the company is strong in terms of
individuals who can successfully and efficiently deliver program objectives. A big
challenge, like with any other training center, is unfavourable government policies and
the current economic condition, which may increase the incidence of crime, which is
precisely the problem that the company is attempting to remedy.
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