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CONSTRUCTION WORLD
FEBRUARY
2017
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,
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.
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.
Quinton Groenewald started GQ Construction at only 23.