Award winner sees benefits in business

2012 Sanlam / Business Partners Entrepreneur of the Year, William Duk of Plantation Shutters.

William Duk, of Plantation Shutters and overall 2012 Sanlam / Business Partners Entrepreneur of the Year, says that winning the award was a powerful affirmation and acknowledgement of all the hard work that everyone in the business had put it over the six-year period since reviving Plantation Shutters.

"There was an extra degree of pride or confidence that suddenly everybody had, based on the credibility that something like this award brings. This was and has been the most significant aspect of the award."

His entrepreneurial success began with a classic stroke of luck. He was in the process of purchasing an industrial building just outside of Cape Town when he stumbled upon a small bankrupt company operating within the premises and, on the spur of the moment, made the decision to take over the business.

Within five years of purchasing Plantation Shutters, a business that designs, manufactures and installs adjustable window and door shutters, he had doubled the workforce and increased its turnover tenfold. The various positive spin offs from winning the competition has ensued a further 30% growth for the business in 2013.

"The credibility of the award has had a positive impact in offering peace of mind to clients choosing to work with Plantation Shutters. When clients are parting with a 50% deposit for a premium product, the award further endorses their purchasing decision, which is definitely a good thing."

He says that the publicity that the award generated for his business has also provided much more than any marketing budget could have ever achieved.

More opportunities

Apart from Plantation Shutters becoming a thriving business, another business opportunity presented itself a few months after the winning the competition, which enabled him to maximise the mentorship programme that formed part of his prize. The mentorship opportunity enables entrepreneurs to seek valuable advice from a business leader in a similar industry in order to further develop and drive their business.

He had been approached a couple of years earlier to assist in valuing a business that supplies valves to the mining and related industries across Africa. While a buyer was found, this deal fell through towards the end of 2012 and presented him with the opportunity to purchase the business himself.

One of the hurdles to this opportunity was that the business was turning over well in excess of R100 million and the sellers wanted R35 million. "I didn't have a cent spare cash, as I was still busy paying the original founding partner in Plantation Shutters, who I bought out two years ago. I also didn't particularly want an equity partner, as that would have been a very expensive path."

This predicament resulted in him contacting Business Partners to claim his mentorship package, in order to obtain guidance on how best to raise capital. "While the amount needed was outside of Business Partners non-equity based lending criteria, I was put in contact with FNB, which is very aggressive in the debt based leveraged financing space. Only 10 days later, I put in an offer for R35 million that was accepted subject to due diligence, which was primarily around being able to raise the money."

He says that there is no doubt that winning the award in 2012, combined with the favourable turnaround of Plantation Shutters, is what provided the credibility required to raise the cash.

His entrepreneurial journey began in 2007 when he purchased Plantation Shutters, a then R3-million business, for R1. Today, he owns a group of companies with turnover approaching R200 million, with only organic growth and debt based financing along the way.

According to Christo Botes, spokesperson for the Sanlam / Business Partners Entrepreneur of the Year, this success story after winning the competition is the root of what the competition seeks to achieve each year. "By facilitating the competition and showcasing the winners, we hope to build the momentum of celebrating entrepreneurship and create role models out of the winners in an effort to encourage local entrepreneurship."

To enter the 2014 Sanlam / Business Partners Entrepreneur of the Year, go to www.eoy.co.za.