National Expansion Plan in a nutshell
Our main goal is to become a national business consulting company which offer a wide range of business services mentioned above. We will provide our clients with for example; legal cover, business insurance, provident or pension fund for their employees, monthly accounting services, HR recruitment, payroll, business advisory services, marketing services, business skills trainings, company registrations and technology such as software development, point sale installation and support. This will be achieved by bringing together different companies with diverse expertise to form a group of companies called IBEC Group.
Branches will form an integral part of the group as they will serve as service outlets for all our services from diverse companies who are part of the group in addition to their normal service offering; accounting services. The Group Subsidiary Companies will train branch personnel on all their offerings so that they can sell on their behalf and branches will keep a certain percentage of sales. The Group will draw synergy from this collaboration since its member companies will be able to expand its product range to something that they would otherwise not be accredited to offer and thus increase their sales and profitability.
On the other hand the subsidiary companies will benefit in a sense that they will expand their distribution channels at no additional cost except for the commissions they will have to offer the branches for using them as their service outlets on sales which they wouldn’t have made if it was not for the collaboration with IBEC Accounting Branches or being part of the Group.
The Group will start off with 25 branches which are strategically located in different parts of South Africa. 13 of these 25 branches will be co-owed with Branch Managers whereby they will be allowed to purchase up to 40% share in the branch they will be managing and the rest of the shares will be directly owned by IBEC Accounting which is an independent entity held by IBEC Business Solutions a Subsidiary of IBEC Group. Only 12 of the 25 IBEC Accounting Branches will be 100% owned by the company without partnership option.
However, the company offers profit sharing incentives to Branch Managers in line with the terms and conditions of their employment contract. The main difference between partnership and profit sharing scheme branches is that in partnership branches, branch managers contribute to the branch startup capital proportionate to their shareholding whereas in profit sharing scheme branches, there is no contribution made by the branch manager.
Initially, the Group will have 4 layers of management including; Branch Manager (at a Branch Level), General Manager (at a Divisional Level), Managing Director (at a Subsidiary Company Level) and Chief Executive Officer (at a Group Level). However, as a company grows more layers will be introduced as and when requires i.e. Provincial Manager (at a Provincial Level) Regional Manager (at a Regional Level) and National Middle Managers (at a National Level).
The National Executive Committee (EXCO) will consist of 5 top executives including; CEO, COO, CFO, CMO & CHO who will be accountable to the Board of Directors. EXCO will be formed in October followed by nomination of at least 12 board members.