[August 2008] Have you had a brilliant idea? Is there a market available and do you have the ambition to start something and stick with it? Everyone wants to be there own boss and this is how you can do it.
Business idea
This is your foundation to starting your own business. You need to have an idea of what kind of business you will be running or what product you will be selling. A business idea will determine what resources you require, your suppliers, etc.
Market Research and Competitiveness
An idea is one thing, but is there a market for your new business? And if so, is there a lot of competition out there? Market research is imperative and it doesn’t have to be complicated. Do a SWOT (strengths, weaknesses, opportunities and threats) analysis of your business, speak to other business owners and do thorough financial calculations.
Forms of Business Entities
Once you have established the viability and competitiveness of your business, you need to decide what kind of business you will be running. Will it be a partnership or a closed corporation? And what do the different business entities entail? Visit www.paralegaladvice.org.za to find our more.
Legal Issues and Requirements
There are certain legal issues and requirements depending on the type of business you intend on establishing. Failure to comply with these requirements can cost you a fortune or lead to the loss of your business. Visit the Department of Trade and Industry for more information on these requirements.
Patents and Trademarks
There are certain aspects of your business that are indigenous to your business e.g. copyright and trademarks (corporate identity). If your idea is unique it is important to patent it which will avoid someone from copying your ideas, however this can be expensive, but often very worthwhile.
Developing a Business Plan
The business plan is a means to assist you to map your business and its success. It consist of five areas namely, your strategic focus (core business), marketing, operations, staffing and financial plan. These will help you to define key areas and those that require attention.
Registering a Business
To make it all official, you need to register your business. You need to choose a legal entity for your business such as a close corporation or sole proprietorship from which to operate. You need to understand the laws that govern what that legal entity can and cannot do. Find out more at www.saregistrations.co.za.
Taxation
All businesses are liable to pay tax. Profits, employee wages, value addition and imports are all taxed. You need to consult with the South African Revenue Services (SARS) and find a guide to small business taxation to give you an idea of what to expect and register for.
Employ the right People
The success of a businesses is so often based on the people. You need to employ staff that have the same passion and drive as you do, and although that’s often not easy, it’s worth pursuing. So take staff on board that you are comfortable to work with and manage and that you believe will deliver a great service and be an asset to your business.
Manage the Cash Flow
Managing your money is imperative. It’s probably easier to obtain the service of a bookkeeper to do the books of the business thoroughly. The cash flow is the life of a business and knowing whether your business is growing or stagnating is important.
Promote Your Business
Now that your business is up and running you need to spread the word! Marketing your business is key to your success, whether it’s to promote your brand or special promotions/events, advertising will drive the much needed traffic to you.
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Enjoy Yourself
Lastly and most importantly, enjoy yourself! The reason you started a business is to be your own boss, have financial freedom and be able to do things that are important to you.
Below are a few links to more information on starting and growing a business.
Now go on and start something new and exciting! Build your own future and be a part of a growing economy on your own terms. Swest.info wants you to build your business and keep it growing!