Help for aspiring entrepreneurs

Economists agree that SMME’s (Small, Medium and Micro Enterprises) are vital to achieving and sustaining vibrant economic growth and especially to job creation in our economy. Yet starting and managing a new business is a daunting task. Poor education in business sciences and entrepreneurship, and lack of skills make it extremely difficult to get a new business off the ground and keep it going. South Africa is said to have one of the lowest rates of entrepreneurial activity in the world, and more than 80% of small businesses fail within the first two years.

Do you have a business idea and are unsure how to make it work? Tackle it in three steps:

Step 1: Develop a business plan.

Discuss your idea with us and we’ll help you develop the concept. We’ll show you what you need for a business plan, advise you on the research you need to do, and help you compile a feasibility study and business plan for your idea.

Step 2: Establish the business

When you have determined that the business idea can work, it is time to get ready for business.

Probably the most important decision you have to make is selecting your business partners. Nothing ruins a good business like a bad partner. Talk to us; we may just know of someone looking for an opportunity like yours.

You may need to secure finance for your business. Most lenders will expect you to contribute some capital of your own, so that you share in the risk. Take your business plan to a venture capital business, or to your bank.

Once you know that you will have enough money to start your business:

You will need to acquire, install and test the infra-structure you need for your business:

·        Premises, machinery, equipment, vehicles, furniture, computers, software

·        Raw materials for manufacturing, goods for resale, packaging, spares and consumables

·        Services connections, electricity, water, telephone and internet

You will need to allocate roles and responsibilities, and recruit and train staff to be able to do their duties.

There is also some paperwork to take care of. You need to register your business with SARS, the Department of Labour, and the Compensation Commissioner.

Finally, you need to prepare for doing business.

Develop business processes for procurement, contracting, logistics, manufacturing, sales, payroll, finance, and management.

Consider your policies for health and safety, environment, human resources development, communication and marketing.

Appoint your service providers; accountant, auditor, lawyer, banker.

Step 3: Manage the business

Once you have opened for business the hard work lies ahead. You must ensure that everyone in your business supports the vision and strategy, you need to monitor your business processes, measure your performance against plan, and intervene to improve processes and performance when results do not measure up to your business plan.

The LDC’s Investor Centre holds a range of articles, books and guides dealing with business issues. Visit it if you want to know about translating your idea into a real business, what is required for a business plan, what makes for a successful entrepreneur, how to tackle some of the pressing problems in business: developing vision and strategy, communicating effectively with your stakeholders, developing staff, understanding the competitive environment, and what the government expects of you as a corporate citizen.

For information please contact André Coetzee on 082-4947112 or at andre@IAvenue.co.za.