One of the tests of true entrepreneurship is the ability to change direction fast when circumstances change or when projections don’t materialise. Calvin Els, a life-long entrepreneur from George in the Western Cape, was recently put through a gruelling version of exactly that test and passed with flying colours.
After running several businesses in Johannesburg, Calvin had settled in George, where he partnered with his sister and acquired a small storage and warehousing business, CAW Storage. They quickly grew the operation into full capacity, positioning it for strong prospects. All the signs suggested that his next venture would be a run-away success.
Calvin knew that there would be no shortage of clients if he were to simply add more storage space to their collection of 36 units and five warehouses. There were times when he had to turn away five or six clients a day because they were full. “If a unit became available, I could have it filled by that same evening,” says Calvin. The problem was that building costs in George, a booming coastal town, was so expensive that it would risk pricing any new brick-and-mortar storage units out of the market.
Instead, Calvin pursued an expansion plan that he was sure would be an immediate success. Ever since taking over the storage business in 2018, holiday makers would consistently ask him to store their boats and caravans. Unfortunately, he had to turn them away as the entrances to his existing storage units were not designed to accommodate larger vehicles.
Calvin was confident that if he built shaded carports instead, boat and caravan owners would rent them all out in no time. It was not only Calvin who thought so, Business Partners Limited, which had previously financed the building of a warehouse for Calvin, also saw strong potential in the idea. The company agreed to finance the construction of 94 shaded carports, each designed with enough height and width to fit a boat or caravan, on a plot of land that Calvin bought in the industrial area close to CAW Storage.
However it was only after the carports had been completed and the business launched that Calvin discovered a critical insight; most owners preferred a fully enclosed garage storage space for their boats and caravans. With only a handful of bays rented out, Calvin realised that if he did not find a way to change the business fast, it would fail. The pressing question was: how do you turn a profit from 94 parking bays in an industrial area?
Calvin’s entrepreneurial instincts kicked in. He noticed that no-one was offering valet parking service at the George airport, apart from a local dog kennel that also kept the cars for their clients who booked their dogs in when they went on holiday.
Despite the fact that the site was located several kilometres away from the airport, Calvin’s pivot proved successful.
Today, scores of vehicles compete for space beneath the carports at the parking lot, which Calvin rebranded as 4 You Parking. Locals hand over their vehicles to 4 You Parking as they board their planes and receive it, washed and polished upon their return. Almost half of his clients are repeat, long-term customers who visit George during their annual holiday. The new business model proved so successful that it reached break-even within just three months.
Today, Calvin is keeping an eye out for land to expand the business closer to the airport, which is undergoing an upgrade to handle two million travellers per year. While traditional banks may now be more willing to consider financing his expansion given the success of his business, Calvin remains committed to working with Business Partners Limited. They backed his vision when others did not. “Business Partners Limited invests in the entrepreneur. They are willing explore every option with you,” he says.
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