Schmidt Auto Brokers
About the Company
Schmidt Auto Brokers focused on addressing a unique problem in South Africa's automobile market: assisting individuals with low or poor credit scores in acquiring vehicles. Collaborating with Rent-To-Own dealerships, the business catered to both individuals and businesses needing reliable transportation but struggling with traditional financing barriers. The company's operations were characterized by a highly competitive industry, requiring constant marketing and innovative strategies to maintain visibility and attract clients.
The company initially operated on a tight budget, reinvesting its modest earnings into growth efforts. Over time, the founder employed marketing specialists to improve brand awareness and streamline client acquisition. Despite its closure in 2023, Schmidt Auto Brokers demonstrated potential for success and filled a meaningful gap in the market.
Idea Behind Company
The concept for Schmidt Auto Brokers originated from conversations Mbali Schmidt had with family and friends struggling to secure car financing despite being financially capable. The issue often stemmed from their credit scores, which did not meet the stringent requirements of banks. Recognizing this as a widespread problem, Schmidt saw an opportunity to create a business that connected such individuals with Rent-To-Own dealerships, providing an alternative route to car ownership.
Schmidt's prior experience as a prototype automobile test driver and her understanding of the impact of the COVID-19 pandemic on credit scores fueled her motivation. She believed her business could not only assist individuals in acquiring vehicles but also help them overcome the challenges posed by a struggling economy and pandemic-related setbacks.
Creating the Company
To start Schmidt Auto Brokers, Schmidt relied on personal savings and financial support from a friend, demonstrating resourcefulness and determination. She took a hands-on approach by designing the business's logo, crafting its website content, and engaging directly with dealerships. Her efforts were well-received, with 98% of the contacted dealerships agreeing to collaborate.
The launch process was straightforward and community-driven. Schmidt leveraged her personal network, using emails, social media, and WhatsApp to spread the word about her business. Her proactive approach yielded immediate results, securing clients within the first month of operation. The early success validated her business idea and reinforced her commitment to providing exceptional customer service and support.
Launching the Business
Marketing played a central role in the growth of Schmidt Auto Brokers. Initially reliant on word-of-mouth, social media, and Canva for creating promotional content, Schmidt later hired a professional marketer to enhance outreach. She focused heavily on customer service, ensuring each client received personalized attention and support. This hands-on strategy helped secure a high application success rate and maintain customer satisfaction.
Despite the competitive nature of the industry, Schmidt remained optimistic and reinvested profits into marketing and business development. Her efforts were guided by the belief that helping clients overcome their credit-related challenges would lead to long-term success. Over time, she planned to build a specialized team to support the company's growth and efficiency.
Earnings
At its peak, Schmidt Auto Brokers generated $1,000 in monthly revenue. However, Schmidt reinvested all earnings into marketing and operational improvements to strengthen the business. While the company showed early promise, its financial sustainability and long-term growth were constrained by limited resources and the need for continuous investment.
Schmidt envisioned a future where the business could fund a foundation supporting the welfare and professional development of young men and boys in South Africa and beyond. Although the company ultimately ceased operations in 2023, its short-lived journey highlighted the importance of addressing niche market needs with determination and creativity.
