Business Start-Ups

Starting a business is no easy endeavour…. If you : Create a solid plan Stay organised Evaluate your business proposal realistically Your chances of success are considerably improved…

6 characteristics of a successful start-up…. 1.Planning 2.Is it a viable idea? 3.Quality product or service 4.Resources 5.Correct legal structure 6.Do you have the traits of an entrepreneur?

Craft a solid business plan You need this document to proceed It will be your blue print for : Determining the viability of your idea Your operating plan Your financial plan Planning

Determining the viability of your idea You have a great idea for a new business venture……. Now ask yourself two questions: 1. Is there a gap in the market? 2. Am I the right person to fill that gap?

Marketing and Customers Are you clear about what level of sales to expect from the venture? Do you have research to support your sales target? Have you discussed sales levels with potential customers?

The Competition Who or what is your competition? How much of the market do they own already? What is your competitive advantage – is it your pricing, niche product or service?

Business Plan Document your research findings and ideas in a business plan It will : Summarise your ideas Enable you to present your ideas to others Assist you in managing your business once you start trading

Business Plan Broad layout of business plan: Strategy and goals, mission statement Resources SWOT analysis Finances and Funding Marketing Legal and compliance

Vision, Goals and Motivation Do you have a clear idea of what you personally want to achieve in business? Do you have clear goals and objectives to help you achieve your vision? Do you have the motivation to achieve your vision?

Business Model Identify how you will supply the business product or service Identify the critical success factors to enable your venture to turn opportunity into profit What is your business model?

SWOT analysis Document the Strengths Weaknesses, Opportunities, Threats of your venture.

Resources Be realistic about what you can and can’t do List the resources you will need for the business Carry out checks on availability of resources and finance

Funding Do you have enough working capital? While sweat equity will make your business more successful, you will most likely need real capital to get it started Ideally for the first eighteen months you will need to be able to cover both your living and business expenses

Start Up Costs Prepare a start up costs spreadsheet detailing your initial cash requirements and on- going costs How long will it take for you to generate a positive cash flow?

Team and Skills Are you the right kind of person to run your own business? Do you have the right team of people? Do you have the necessary skills on your team – such as financial, marketing, technical and management skills?

Alliances and collaboration Form alliances Set up relationships with suppliers, distributors and professional advisers

Legal structure Choosing your trading vehicle is an important matter Sole proprietor, partnership, company or trust ? Each type of entity has different legal and tax considerations and certain advantages and disadvantages

Taxation Depending on which entity you trade via, different tax frameworks will be applicable

Regulations Do you know about and understand the statutory regulations affecting your business idea? Determine whether any licences or permits are required for your business and how to obtain them

Financial Management A successful entrepreneur needs to be good with money (S)he needs to be realistic about cash flow and keep a clear head when making decisions affecting the business

Business and financial controls Successful businesses use accurate bookkeeping and accounting systems, including payroll and regular management accounts Tracking and managing sales and income are essential

Traits of an entrepreneur Not everyone wants to be an entrepreneur and run their own business Should you have decided to take the leap, you will require some specific characteristics and skills to ensure success

Management effectiveness Ask yourself the following questions: To what extent will your experience in solving problems and making decisions help in running your business? Do you consider yourself a creative thinker? Can you identify and develop business opportunities? Do you ask for and value advice from people with useful experience?

SME Incentives A variety of incentives are made available to SMME’s by the Department of Trade and Industry Investigate these incentives, document them in your business plan

Summary : Before setting out on your new venture: Clarify your focus Document your research and findings in a short, sharp concise business plan Keep an “ideas” notebook Ensure you have the right passion, skills and resources Know where you want to be and how you are going to get there Obtain assistance from professional advisers Consistently move forward

Presented by : Name of presenter: Position in firm: Firm name: Disclaimer- Whilst every care has been taken in the compilation of this seminar, presentation and handouts, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions, nor for the accuracy of any information contained in the seminar handouts.