Tinashe Ruzane, incubation coach and Head of Business Learning at the Awethu Project, says these six steps should help you plan, prepare and manage your start-up.
1. Check your numbers
Calculate your charge, estimate the cost to deliver your product/service and your profit from every sale. Web resources like YouTube or Google could teach you how to calculate gross and net profit, or enrol for an
affordable course at the Awethu Project or the Raymond Ackerman Academy for Entrepreneurial Development.
2. Think sales
Where do you plan to operate and sell your product or service? The goal, rightn now, is to spend less and sell more. Are you going to sell door-to-door or will you rely on other businesses to sell for you? Do you need a sales team, or will you sell online? Sales are the lifeblood of your business, so think it through and weigh-up different options
3. Spread the word
Think about how you will market your business to attract customers (eg. print flyers and posters; advertise in the local newspaper). If your business aims to attract other businesses as clients, think business cards, attending seminars/ conferences and advertising in industry magazines. Look into marketing your business via Google, Groupon, Facebook, twitter and LinkedIn; and designing your own low-cost website,
using services like weebly.com.
4. Partner for success
Choose a partner that complements your skills. Some experts advise against partnering with family or friends because it can cloud judgement. However, there are a number of successful family businesses, like
Kunene Brothers Holdings, that proved these experts wrong. Suppliers can also be seen as partners – good
supplier relationships may help you create a defendable position in your market and improve your cash-flow by negotiating good payment terms.
5. Registration, licensing and certification
Register your business with the Companies and Intellectual Property Commission (CIPC), or outsource it to
a reputable service at a fee ranging from R500. FNB also offers free company registration when you apply
for your business banking account: https://www.fnb.co.za/businessbanking/cipc-registration.html .
After business registration, register for income tax with South African Revenue Service (SARS), visit: www. sars.gov.za. Business nature specific certifications like BEE and other industry-specific certification may also be needed. Confirm this with industry experts. Enquire at your local municipality about liquor licenses and food provision licenses, etc.
6. Get funding
This is often incorrectly perceived as the biggest constraint to starting a business. Vusi started his business with less than R5 in his bank account, so it’s possible to start a business on a shoe-string budget. You could also get:
– Business loans (from major banks).
– Grant funding (government or corporate enterprise development funds).
– Angel investors (wealthy people who invest via AngelHub and MzansiGold).
– Crowdfunding – a group who network and pool their money ton support small businesses, for eg. Rockethub, Kickstarter and Startme.
– Venture Capital – money invested into startup firms and small businesses that are suspected to have long-term growth potential. It is high risk for the investor, but it has the potential for above-average returns.
– Family and friends (never rule this one out).
– Personal funding (either personal debt or savings).
Must-have contacts for your business black book
– Awethu Project 011 024 1606 or www.awethuproject.co.za
– Raymond Ackerman Academy of Entrepreneurial Development www.ackermanacademy.co.za
– Companies and Intellectual Property Commission, visit: www. cipc.co.za
– AngelHub, email: info@angelhub. co.za/ http://angelhub.co.za/
– MzansiGold, www.mzansigold. com; email: info@mzansigold.com or call 083 602 0661
– Rockethub, www.rockethub.com
– Kickstarter, www.kickstarter.com
– Startme, http://startme.co.za/
Also see: Smart spending guideline
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