The first step to starting a business is finding a business idea. Every business starts with an idea. But how do you find the right idea for your business?
- Who will you be selling to?
- One of the key attributes of being an entrepreneur is to be patient with yourself , to start a successful business takes time
- If you have identified the sector you want to be in, build your idea one step at a time.
- Don’t be okay with the status quo “Go in full force and disrupt the market”
- Nurture and protect your ideas. (In essence you will need to be selfish at times)
- Advisably start a Business that you will be enjoying what you will be doing
- Avoid bouncing your idea’s with people that values an employment status.
We all have heard the saying that Marketing research is paramount when one has an idea or rather when wanting to start a Business but should you wait until your research is finalised to start the business? My answer is No and my advice is “Just start”
The real challenge to start a business is with you as an individual, the buck starts with you and no one else, you need to decide if this is really what you want to do and if your answer is Yes, then go for it, as if you will be asking the following question “am I ready “you will be short changing yourself and your answer will be “Maybe”.
Here are further pointers when you want to start a Business: First and foremost understand the following:
What is a Business? – Business is the process that takes resources and turns them into products or services that you will sell to a market for a profit. You need to understand from the beginning that there is a huge difference between starting a business to make money and to make a profit – Money & Profit is two different animals and on that note – before you even start the business you must understand that “Profit is the most important word in business”
The second phase is for you to understand that there are three kinds of business:
First is – if want to start a business making things or produce things, taking materials to produce a suit – this is a manufacturing business.
Secondly – if you will be venturing into a business that does not require you to produce and make anything tangible product/s – you will be venturing into a service business
Thirdly – if you will be venturing into a business that buys and sells goods, it will be easy to place you into a retail sector
As someone that wants to venture into entrepreneurship, you now have an opportunity to place yourself in either First, Second or the Third class.
If you are one of those conservative Entrepreneurs, then we might as well talk about asking yourself the following questions before starting a Business:
Do I have the Market for the service’s or products I want to sell?
Do I have the necessary skills to start the business or have access to extra labour skilled resources?
Do I have the resources to start this business if or where can I get them?
As a Business Advisor, I encounter the funniest and very difficult and funny business names, names that most people will never be able to read, pronounce or even pronounce.
An important part of staring your business is deciding on a name. Many business owners decide to work under a business name resonates their children’s names, some their Initials and some unique African symbolic names. Coming up with a business name should be treated with high respect because this will be the first encounter that your clients will have with you and the business
Some suggestions for naming a business are:
- It must be interesting
- It must be unique
- It must be simple
- It must be easy to remember
- It must clearly communicate what you do and what it is you do.
Lastly most people hits a stumbling block when they want to get the business compliance in order, below is a few compliance suggestions:
Compliance
Compliance means bringing your business practice into line with the laws and regulations that help to govern business in South Africa.
Registration
The first step towards compliance is registering your business. You need to decide what the most useful structure your business will be – a sole trader, a partnership, basic company, co-operative (or other).
Sole trader
This is the easiest structure to set up and requires the least amount of compliance to business laws and regulations. You don’t have to registering as a tax payer.
Partnership
Partnerships are also relatively easy to set up and do not have to be registered. It is useful to draw up a formal partnership agreement between partners so that no misunderstandings occur.
Basic Company
Registration through the CIPC. You must submit annual financial statements to the CIPC. Tax registration required – depending on your turnover (turnover tax).
On another note – PS “People do business with people they like”
This article is brought to you by Czwe B Industries in association with Marvin
Free to touch base with me at:
Writer: Will Sizwe Bennett
E-mail: info@czwebindustries.co.za Facebook: CzwebInd Twitter: William Czwe Bennett – Gruvab