Start own business be true with yourself about the commitment to which you are prepared to commit yourself the entrepreneur, to the business. The business industry is not for the faint hearted and can be incredibly demanding in terms of time, cash flow and hands on commitment. To start own business a good franchisee is someone with a healthy balance of entrepreneurial spirit but is still able to conduct business within the scope of the franchise. It is also recommendable that the franchisees has some knowledge of the business in the industry, an appreciation for hard work, with discipline and consistency. The industry is a little more than a job it can become a life style therefore you will need to be passionate about start your own business and insuring you are always hands on. Some of the biggest challenges in the industry at the moment are some of the following. Rising costs of utilities, rentals, staff salaries rising fuel and electrical costs are defiantly influencing the way we are able to competitively price our selling products to the consumers. In addition to facing the challenge of raising significant capital to start a business many franchisees struggle to secure good retail space at an affordable rental. It is necessary to have a business plan to enable the entrepreneur to have a guideline and direction in which to model his business ideas on , it is also needed because most financial institutions require a business plan to be able to understand your type of business and business ideas in order for them to grant a business capital loan . Sample business plan can be drawn up by professional business consultants . Starting my own business in the beginning can be very challenging but at the same time very rewarding .Small business start up is the way to go, so start own business .
Understand the basics of a country’s economy and how it works. Develop the basic skills in running your own business (entrepreneurship), managing your finance and planning properly so that you can operate effectively and successfully within the business environment .
How to start your own business related disciplines needed
Accounting-The recording and analysing of financial information and making decisions related on the basis of this information.
Bookkeeping –The recording of monetary data in order to produce useful financial information .
Auditing –The verification (checking )of financial statements and information
Internal Control –Establishing systems in an organised systems in order to safeguard resources or possessions
Economics – The use of resources to satisfy needs and wants in society
Entrepreneurship –Taking initiative and calculated risks in conceptualising starting and running a business.
Management Accounting – The provision and use of information relaying to the future which enables managers to make appropriate business decisions e g the utilisation of cash resources by budgeting , or deciding on production of finished articles as in case of factories and manufacturing companies .
How to start your own business is started by entrepreneurs which defined in the Collins dictionary as the entrepreneur is (The owner of a business who, by risk and initiative, attempts to make profit). He or She is a person who sees an opportunity , makes a plan , starts the business , manages it and receives the profit as a reward . They often risk investing their own money in a business venture that may or may not succeed rather than placing it in a safe investment e g a fixed deposit . By starting a business , the entrepreneur will attempt to make more profit than the interest he would have received from a fixed deposit . The challenge of How to start your own business does not only include money , but self –satisfaction of a job well done .
FOREIGNERS STARTING A BUSINESS
Applying for a work permit
Apply to the South African embassy or from your own countries consulate for a temporary work permit or a permit for self employment in South Africa . An application, along with a business plan , has to be submitted at least eight weeks before the expiry date of the last permit endorsed in your passport .
The following will help with your application
Proven track record, audit trail and police record
Amount of money to be invested in South Africa
Viability and sustainability of the proposed business
The number of South Africans to be employed – at least two jobs for south African citizens must be created
The business plan must include the following
Marketing and sales activity
Product research and development
Manufacturing and delivery operations
Organisation and personnel
The following documents and fees must be submitted with the application
Audited financial statements
Proof of sufficient funds for business and personal expenses , including a written confirmation by a banking institution reflecting foreign capital available or foreign exchange transactions of capital transferred to South Africa
Short and long term objectives including expected income and number of South Africans to be employed
Curriculum vitae with certified copies of qualifications
Testimonial or service certificates from previous employers indicating the applicants competence and skills
Repatriation guarantee, amount equal to the cost of a return air ticket to the applicants home country
Police clearance certificate
Marriage or divorce certificate, full birth certificates of children
Business Formats That Foreigners May Form
Branch of a foreign company
SOME OF THE BUSINESS REGISTRATION’S REQUIRED
Each new employer is required to register for UIF on the prescribed UIF 1 form obtained from the local Department of Labour. Each new Employee needs a Employee card which the employer also has to get from the department of labour –form UF 85. This must be kept until the employee is no longer employed.
Compensation for occupational injuries and diseases
This was previously known as workmen’s compensation. It insurers the lives of your employees in case they are injured or die while carrying out their duties , it must be paid to the compensation commissioner. Registration is done on form W A s 1 (E) , obtained from the department of labour
Metropolitan Council/R S C Levies
Bargaining / Industrial Councils
Certain industries and trades have industrial and trade federations. It is best to find out
If you need to register for any of these . Contact your sector educational training authority for advice (SETA) or from a business similar to your industry.
Licences to start a business required
Some businesses require a trading licence. For example if you plan to run a food business , a heath certificate needs to be granted . you may contact your local municipality for further information . Institutes that grant licences include
South African Music Rights Organisation (samro) if you want to play music in your business
South African Restaurant Trades
South African Institute of Estate Agents
Road Transport Board
Local health authorities and town planning departments
Fire Department Chief to inspect premises
Paye (pay as you earn)
You must register for PAYE on form IRP 101 with your local receiver of revenue as soon as you take persons into your employment. Pre numbered books of IT3 and IRP 5 certificates for disclosure of annual remuneration also need to be obtained from the receiver of revenue. Tables to help calculate daily , weekly , monthly and annual taxes are available from the South African Revenue Service office .
Skilled Development Levies
If you register for PAYE, you must also register for the payment of skills development levies with the South African Revenue Service form SDL 101. The SARS then register you with the correct SETA , who can qualify your company to receive grants based on contributions made and the cost of training provided to your employees . There are 27 SETAs in total, each controlling a different chamber activity
If you enquire contact the Department of Labour and ask for the skills development levy they will be able to give you the correct information and contact number of your relevant SETA
Value added Tax (vat)
As soon as turnover before vat reaches or is more than R300 000, it is compulsory to register for VAT on form VAT 101. Voluntary registration occurs over 20 000, per year and 300 000, It may be beneficial to register for vat in cases where you have large volumes of vatable expenditure for which a vat input can be claimed .
If you operate a business or a sole trader, partner in a partnership , member of a cc or a director of a company you must register for the payment of income tax , which is known as a provisional tax payer and will be assigned with a reference number . As companies and CC ;s are legal entities they also pay tax in their own registered name .
It is always good to attend short courses on business management , basic bookkeeping and other necessary skills . These courses are advertised via radio, newspaper’s and magazines for small business entrepreneurs which often have good and reliable information on starting your type of business. Visit your local chamber of Commerce or Chamber of Business which can help you with literature and research materials. The South African Bureau of Standards (S A B S) offers training to small, medium and micro enterprises via the missing link programme in the following industries, Industrial chemicals, welding, textiles and clothing, paints and sealants , civil engineering and marine products.
It is a good idea to try to establish the size and how much of the market is available and the plan of action for your sales and marketing which relates directly to your type of business sales.
How many competitors are their in your area
How long have they been established
What keeps customers supporting them
Can you take away a share of their business
How will you do this
How much is rte rental in this area
Why should a customer buy from you and not your competitor
Can you offer a better quality service
What are your competitors lacking
How many potential customers live in the area in which you wish to establish your business.
How many empty shops are their in a two km radius
A large number could indicate that business is leaving the area
Is their a lot of foot traffic or passing trade
Is their adequate parking
Ask other business people and competitors how the business is like in the area
Distribute a questionnaire in the area near where you would like to establish your business. First tell the customer a little about your potential business product or service, ask them the following
Why would they buy your product or service
How much would they pay for it
How often or when would they buy it
How would customers prefer to buy and pay for the product, credit card, cash or on account
Which store currently offers the same product or services that you would like to sell where do they buy from
Do specials and cheap prices motivate customers to buy
Do quality and back up services also count
From these answers and summaries it can help to establish if your service or product is needed in the area . It is a good idea if you are going to invest a lot of money to do formal market research
Market research can be found by visiting Exhibitions and Trade Shows
An update list of current exhibitions and trade shows can be obtained from the local Chamber of Commerce or from the Exhibition Association of South Africa .
The following are good business related exhibitions
Industrial trade show
International Franchise Exhibition
Media and Marketing Exhibition. There are a number of other individual exhibitions for agriculture , Trade and Industry , Tourism , Motor , Catering etc . A number of exhibitions are also held internationally if you wish to attend these and are a registered exporter for these types of goods being exhibited, you may be able to receive information and financial assistance from the Department of Trade and Industry to cover part of the air ticket and accommodation as well as other related expenses .