On his journey from the corporate world into retail and then logistics, Mark Makhubalo is an entrepreneur who gives it his all. After buying one truck in 2016, he is now the CEO of MLM Logistics, owning over 100 vehicles that transport mining commodities and FMCG. To inspire and encourage other business owners, Mark shares how his business grew so fast, his ups and downs, and his advice on what it takes to make it in the logistics and transportation industry.
I did my master’s in accounting, finished my articles, and worked for an investment house and then a banking institution. In that last corporate job, I realised I wasn’t going to go anywhere there.
So, I decided to buy a bottle store. I don’t even drink, but people who do drink spend a lot of money on alcohol, so I thought, I could just open the door and people will come. The aim was to expand that and have many more bottle stores. Unfortunately, as time went by, I realised the margins were quite low, and you have to have enough money to secure the lease. So, I ran the bottle store for about two or three years while I was working full-time. I was making money with it, but not what I should have been. And that’s when I diversified into transportation.
I put a bit of money together and committed to a second-hand truck. The guys selling the truck were comfortable giving me terms for the remaining 40%. So, that’s how I bought my first one in 2016 – and we’ve got over 100 trucks now.
I took advantage of every opportunity that came by. When I ran the one truck, the idea was to focus on it and learn about the industry. But I had to do it full-time. I’m not one of those people who do things in half measures. When I go for it, I go for it. I cashed in my provident fund, and that’s how I started running.
Subcontracting. I was on WhatsApp groups and someone would say, “I want to move a load from here to Durban and I’m willing to pay this much.” I’ve always undercut, so I always come in for a bit less. If my truck was going to Durban, I would drive to Durban with the truck. In that way, I could understand the dynamics of the road.
There were some places I’d never heard of that I needed to take my truck to. It was my only truck! So, I’d follow the truck. I still have that driver today, the one who started with me. He would drive and I’d follow behind, and I’d learn the rules of the road. Things like what weighbridges want, where you fill up, that kind of stuff. And that’s how I learnt about the industry and came to understand its challenges.
I’d go to Durban, but I wouldn’t have a trip coming back. When I got there, I’d have discussions with other people. One of the trucks would be heading out, for example, to mine B. I would ask, “Can I follow you?” Then we’d get there and the mine owner had more stock and actually needed more trucks. So, there we go, I had another load. And that’s how I did it. I was very operational in my business.
From there, within a year, I bought another two second-hand trucks. On the streets, I’d find entrepreneurs who had trucks but lacked funding. But I had the spirit; I was motivated. I’d ask them, “Can I guarantee you this amount of money per month using your asset?” And if they agreed, I secured the asset. My pressure was to make sure I gave them their money every month.
Very. In a corporate environment, you have structure. You need to be very transparent and honest, and there are contracts in place. But when you go on your own, it’s a different story altogether.
Somebody will give you a truck, and you’ve committed to giving them R100 000 a month for it. They agree. And then, all of a sudden, out of nowhere, they might come and take their truck back, saying something else came up. That happens a lot. That’s why I’m very passionate about regulating and legitimising the industry.
For 90% of them, it’s cash flow. The problem is working capital. Clients will pay 30 days after receiving the invoice, so you must carry your business for 60 days before you get the first payment. And, if anything happens during that time, you’re done. The margins are quite low when you start because the guy giving you the contracts also knows that you’re not so big, so he takes advantage of that. It’s a tough industry. It’s only when you scale up to a certain point that things start to change.
When COVID-19 hit, every mine and most FMCG clients stopped issuing contracts because they weren’t sure of tomorrow. They’d give you something on an ad hoc basis for a month or two. It’s still the same today; people are scared to commit to a three-, four- or five-year contract now.
The problem with logistics is that every time that wheel turns, you’re spending money. You’re either making or spending money; it just depends which side of the coin you’re on when that wheel is spinning.
The biggest lesson for me was to manage myself. You learn to understand that everything happens in time. Everyone has their season. Don’t chase too much; don’t bite off more than you can chew. You want to scale up, you want to grow, you want to be an industry leader. But you quickly realise that if you rush for that, there are a lot of things you don’t know yet. So, I’ve learnt to sit down and ask myself, “What am I doing here? Does this make sense? Do I have the energy to do this? Do I have the knowledge to do this, or am I just hustling my way through?”
The other thing is talent. Talent is very difficult to find. You want to find somebody who can take the business and make it their own. That person must believe in the same vision that I have for the business.
And, of course, how to manage cash flow. It’s nice to study it. You can study how to balance an account with debits and credits, but with your own money? It feels different.
I connect with my people a lot. My staff has been with me for a long time, and I think it’s because I connect with them. I want to know how many kids they have and what their family dynamic is. I take a lot more time engaging with my people than I do talking about work.
I have an open-door policy, so everyone just pops in to talk about the rugby, the cricket, a UFC fight over the weekend. And if we’re not doing well this month, we communicate. What we make as a business is very transparent, so my team takes pride and ownership in the business. My wins are their wins. So I think that’s how I make a bit of an impact in their lives.
“What we make as a business is very transparent, so my team takes pride and ownership in the business. My wins are their wins.”
Read more: Why trust and communication are so important for business owners
The only challenge is that I can’t multiply myself! We have about 255 people who work full-time, and we have 60 to 70 part-time drivers. There are different cultures, different people here. I love it. I wouldn’t have done anything else, I think. I’m in the right place.
You work more for people. I think as a boss or a leader, people follow you, not necessarily the company you are working for. It’s really about who you are. Who’s this guy that I talk to every day? And what’s his vision? It’s not always about money. There’s so much more to life.
Take your time, be patient. You can’t quit. If you want to do something, go in full, don’t go half. And at least if you make it, you’ve made it. If you don’t make it, you can tick it off and say, “I’ve tried this, it didn’t work, and now I can go try something else.” It’ll come right. It always comes right.
