Q I started a company in 2016 offering road building in residential areas for local municipalities. I realised that there is too much risk involved and I do not have the capital to purchase machinery. The overheads are also too high. I feel more comfortable supplying municipalities with commodities. I have been in sales and have good people skills and sales experience. However, I’m struggling to get a foot in the door. Manufacturers are reluctant to give me a credit advance. As a result, I had to let go of many opportunities. How do I overcome this obstacle? — Martin
I can only speak from my own experience selling to municipalities. I did it once, successfully. This is how I did it:
1. I convinced the municipality to roll out public WiFi in low-income communities.
2. The municipality awarded me a contract.
3. With that contract in hand I shopped around to find a company that I could subcontract. That company had to take a risk that the municipality would pay me, and I would in turn pay him. I had to take the risk that the sub-contractor wouldn’t deliver the goods.
4. I found a sub-contractor.
5. We deployed the WiFi.
6. The municipality paid its bills.
7. There was never a hint of corruption.
In retrospect I realise I was the beneficiary of a succession of benevolent