Construction World February 2017

PROPERTY ENTREPRENEURSHIP Many entrepreneurs are known for dropping out of a university at which their hopeful parents had enrolled them, but what is often underplayed in the recounting of their stories is that they take learning very seriously, and undergo intense learning courses of their own making during their journey to entrepreneurial success.

subcontractors included. The head office is based in Potchefstroom is staffed by Quintin and three colleagues, one of whom is his wife, a qualified chartered accountant. Groenewald says that scarcity of finance has always been the most challenging obstacle in growing his business. His constant search for working capital brought him into contact with Business Partners (BUSINESS/PARTNERS) who agreed to finance his latest develop- ment of 23 houses. He says banks are currently too risk-averse to finance new property developments. While it is possible to go the cheaper route of self-financing the growth of his business, Quintin says the availability of BUSINESS/PARTNERS' finance speeds up the completion of his projects and the growth of his business. For example, the 23-house development would have taken three times as long to complete were it not for the loan. At the age of 33, there is still no end in sight for the growth of Groenewald’s business, nor for his life-long learning. He plans to expand his business further by employing a quantity surveyor and in the foreseeable future, GQ Construction will most likely be busy with student accommodation projects. 

Take Quintin Groenewald who, at the age of 21, decided to become a property entrepreneur. Visiting the library of the North West University, where he was a student, he read as much as he could about the industry before telling his father he wanted to take a break from studying law. His father, a successful property developer, agreed to Quintin taking a break from his studies on condition that he pay his own way and repay him the university fees. Groenewald did both, and more. Upon dropping out of law school, he started two small businesses – one which sold nutritional supplements and a typing service business, which employed several people and netted him R15 000 per month. In one year, he made enough money to repay his father and buy three properties in Honeydew – two of which he still owns. Determined to become a property entrepreneur, Groenewald suddenly found himself at the opposite end of the income spectrum after a year of the high life when he joined his father's business in Krugersdorp. Starting at ‘rock bottom’, he explains he was mixing cement, working on site and ‘earning the respect of the construction workers’. It was a hard year which gave him an invaluable perspective of the property industry from the ground up. Having earned his stripes, he worked in the family business as a project manager on the construction of a 32-apartment block. He also registered as a real estate agent and sold several of the units he built, learning the marketing side of the property industry at the same time. Thereafter, his father turned down a contract for the development of another block of flats, and Groenewald decided to do it himself. Birth of GQ Construction He registered his own company, GQ Construction, tendered for the job, and found himself at the age of 23 with a R20-million construction project. It was successfully completed, but his journey on the steep learning curve in the property industry continued. The developer for whom he built the apartment block declared bankruptcy just

before Groenewald was to receive his last payment for the project – no less than R6- million. Because the last payment consists mainly of the surplus that the builder makes on such a project, Quintin did not lose much money, but he didn't make any either. Many would turn their back on an industry that dealt them a blow like that, but Groenewald, now 33, takes a philosophical view of the experience. Firstly, it taught him about the financial and legal risks involved in property projects. Secondly, he believes a 23-year-old with R6-million would probably have done something irresponsible. As it turned out, he had to start building his business again from scratch, and at a less frenetic pace. He soon won another building contract, the first of many, and he was able to use the properties he bought after his gap year to raise the finance he needed to get going again. Today, GQ Construction employs approximately 500 workers at various construction sites at any one time,

Quinton Groenewald started GQ Construction at only 23.

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CONSTRUCTION WORLD FEBRUARY 2017