How Ma Lettie Mathe Reduces Costs and Boosts Efficiency
Streamlining the supply chain for a small business is often touted as a surefire way entrepreneurs can increase efficiency. It leads to a host of benefits for their business, including reduced costs, improved inventory management, and enhanced customer satisfaction. Allow me to introduce a successful businesswoman from Limpopo who acquired her knowledge through hands-on experience, rather than from a textbook. Meet Ma Lettie Mathe, a strong and resilient businesswoman born and raised in the peaceful village of Mavele, nestled close to Tzaneen. She received her education there and eventually married before relocating to Johannesburg in 1989, following her husband’s wishes.
Back in 1993, she took a leap of faith and opened her shop in Kliptown, Soweto. Fueled by her passion for vegetables, she began her journey as a vegetable seller and never once looked back. Even to this day, she continues to offer various spinach options, steadfast in her commitment to the vegetable sales path.
Shortening the supply chain
In all retail endeavours, it’s crucial to understand your supply chain and identify potential increases in efficiency. Ma Lettie reduces the number of links in her supply chain by buying directly from the farmers in Rustenburg or Thabazimbi. “I buy my stock for much cheaper there”, she affirms. “It is difficult to manage costs. Everything has become very expensive – especially in the first few months of 2023.”
Ma Lettie consolidated her stock selection for the last few years to concentrate on various types of spinach from Soweto. This consolidation ensures that she can showcase an impressive amount of stock as an advertisement to passers-by while managing the working capital requirements of her business. “I want to sell all other types of vegetables too. However, my cash flow doesn’t allow it.”
She recently joined Xhantela after seeing its impact on her colleagues’ businesses. “I’m not adding additional stock to my business with the added capital I have now. With the money from Xhantela, I finally have extra monthly money in the business, which I am saving.” To diversify successfully, Ma Letty would require an extra R12 000 to R15 000 – without the impact of loan repayments. To accomplish this, she is saving the additional profits (after her expansion achieved with her Xhantela loan). “I’m already a quarter of the way there with my savings.”
"Business can change your life"
When asked why she started her business, she shared a tragic personal story synonymous with life in the township. In the end, starting her business allowed her to get a place for her and her three daughters to stay in Grasmere.
“Everything I do, I do for my children,” she said with a sparkle in her eye as we explored the subject of her beloved children. “They all were able to go to school, but finding jobs has been difficult for them. Though one works in the security industry, the other two are unemployed. My youngest is helping me in my shop and learning how to run a business.”
A true entrepreneur, Ma Lettie is adamant: “Business can change your life and take you forward”.
She also profoundly appreciates Xhantela’s impact on her business in a few months. “Xhantela helps you grow your business. It helps you to build a better future and a better life.”
Ma Lettie is truly inspiring as she teaches the next generation about saving money, running a business, and being responsible with their finances. We admire and salute her for her valuable contributions.
Photos by Shornespear photography.