How Chouttu’s Guadalcanal Products improved its bottom line with help from BLP Business Advisors
Chottu’s Guadalcanal Products is a family business. Simon Chottu came on board in 2016 to manage the media side of the business, supplying technical expertise beyond his father’s skill. He has slowly moved into managing all the business side of things alongside his brother, who takes care of the plantation. It’s been a busy few years for Simon, fitting this new responsibility in alongside other commitments.
Chottu’s Guadalcanal Products source, store and supply raw resources such as fresh and dry copra, coconut shells and husks, cocoa products and noni fruits, and manufacture value added products such as copra oil and meal, coconut soap, fermented noni juice and noni soap. The oil and soap are for local consumers in Honiara along with noni juice which is a natural health remedy fabled to relieve stress. Farmers purchase the copra meal as feed for pigs and chickens.
Simon Chottu’s fresh eyes on the business have highlighted many areas which could be improved to increase the bottom line.
The most significant initiative was the need for a large dry storage shed where the raw product could be kept, guarding against the high rainfall which can quickly ruin stored goods.
This is especially true with the supply chain problems brought about by the pandemic and the recent unrest in the capital, which resulted in products having to wait for transportation.
We have lost a lot of end product because we haven’t had the proper storage, says Simon.
Chottu has six permanent staff, and that number swells with casual labour to as many as 35 when a big purchase is made, particularly of noni.
We need help from farmers to scale, wash and prepare the noni fruit and to prepare the cocoa beans. Business Link Pacific kept popping up on my Facebook feed, so I eventually gave in and said OK, I’ll try that out.”
He filled in the online form, worked through the application process using BLP’s advisor for validation, and received a grant to build his shed, which is now almost complete.
Simon was so impressed by the BLP advisor that he plans to use him for future help with bookkeeping work and as a sounding board for general business advice.
Simon is already noticing an improvement in his business with the addition of the new storage shed.
The economy is starting to open again, so it’s good timing the shed will be fully operational for that, and we are very grateful to BLP for their help with this project.
The next step in Simon Chottu’s grand plan for the business is to add a loading dock to improve efficiency and safety, and to convert a corner of the storage shed into a packaging house where oil or soap can be packaged in a more hygienic – and less dusty – space than the factory.
ENDS
The Finance Facility enables access to capital for stabilisation, recovery and growth of viable but financially distressed businesses in the Pacific Islands due to the impact of COVID-19 on the regional economy.
The Facility opened applications to Business Adaptation Grants across eight Pacific Island countries in January and June 2021. Adaptation Grants have benefitted over 200 businesses to date, and Business Link Pacific is currently processing a similar number of grants to be disbursed before the end of the year.
To further support recovery and growth, Business Link Pacific is negotiating key partnerships with Financial Institutions to offer concessionary lending to small businesses in the region and will soon make information available on accessing those products. The Finance Facility also offers curated information about financial products for businesses on its free online tool, the Finance Finder; visit today to find out what is available to your business right now.