Ebook:

Starting a

Small Business

in South Africa
Table of contents

Introduction

01: Write your business plan like a pro

02: Supercharge your start-up with a strong financial plan

03: Understainding business funding and finance

04: How to register a new business in south Af rica

05: 21 Free (and almost f ree) tools for entrepreneurs to start a

business

06: Avoid these common start-up errors for ultimate success

Introduction
Welcome to your complete start-up pack. how you plan your start-up, how well you
Once you’ve worked through these pages, understand your market, and most importantly,
you will have a business plan, a financial how well you have planned your finances.

plan and a solid understanding of the

South African funding landscape.

This sounds like a lot – and it is – but we’re here to
help you. Nothing worth having comes easy, but

with the right focus, dedication and information at

You’ll also know how to register your business,
your fingertips, your chances at success just
you’ll have a list of free and almost free tools that
increased exponentially.

will help you run your business and you will have

learnt some key start-up errors that many

entrepreneurs make – but which you can now How to use this start-up guide

avoid.

First, grab a pen and notebook – you’ll need to
take notes, jot down ideas and document what
Start with the right mindset
you’re thinking. Ultimately your business plan and

There are two key secrets to start-up success: You financial plan will live in a word document and an
need to plan properly, and you need to execute excel document, but we’ve got you covered there
that plan. Just having an idea isn’t enough. Real too, with two free downloads: your own business
success lies in how you put that idea into place – plan template and financial planning tool.
Work through the guide slowly. There’s no rush.
This is a lot of information to take in and it won’t
happen overnight. If your ultimate goal is to
launch a start-up that can change your life and
those around you though, this will give you the
foundation you need.
1: Write your business plan like a pro

As a start-up entrepreneur you know you need a business Start with an idea that will work

plan, but do you know why? Is it just to land funding or for

a bank loan? Or is it to understand exactly what you need Stress-test your thinking

to do to ensure your start-up’s success?

What does stress-testing my idea mean?
We believe it’s to ensure success. Your business plan
should be a step-by-step guide that makes sure you’ve A stress-test, according to Harvard Business Review, is a
thought of everything you need to do to build a great test of how a system, process or idea works in the real
business.
world, when it’s under pressure.

Here’s the reality: Many start-ups fail because The point of a stress-test is to help you see where your
entrepreneurs make crucial mistakes during their business business is weakest before it’s really in trouble.

planning process (or because they skip the planning

process altogether).
You’ll need to ask the tough questions about your business

plan to highlight any confusion or weaknesses in your
We want to make sure that doesn’t happen to you with strategy or how you’re rolling it out. It’s also the only way to
this Step-By-Step Business Plan Guide.
test if you have a product or service that your market is
willing to pay for.

Why should I stress-test my idea?

How do I stress-test my idea?

Many start-ups are based on assumptions. This isn’t Step 1: Keep these 5 key questions top-of-mind the entire
necessarily a bad thing. Successful start-up entrepreneurs time you are researching your market and creating your
spot problems and go with their gut while they develop business plan.

solutions.

Think about it this way: You’re trying to find all the reasons
Some of the world’s biggest and most successful why your idea and business won’t work so that you can
businesses have been built on gut-instinct – on knowing solve any potential problems before they pop up.

that there was a problem that needed to be solved –

including Airbnb and Apple.
1. Am I really clear about my idea? Can I explain it in
30 seconds so that someone else can understand
The difference between a successful start-up and one that it?

doesn’t make it, often lies in whether or not the initial

‘great idea’ was stress-tested. Because here’s another 2. Do I create value for customers? Is my idea better,
start-up truth: Most businesses will pivot at least once in faster, stronger or cheaper than what’s currently
their early days – some many more times than that – based available? And does it matter?

on market feedback.

3. Do I solve a real problem? Is there an

unaddressed need in the market that people will
“No business plan survives first contact pay to resolve?
with a customer” Did you know? 4 400 mousetrap patents have been
issued, but only 20 of those ideas have ever made money.
Steve Blank, Silicon Valley entrepreneur and founder of Are you just trying to build a better mousetrap when the
the lean start-up movement. old one works just fine?
4. Does my idea have a competitive advantage? Am • You can become market ready. Most ideas need
I doing something better than everyone else out to be tweaked and refined before they’re
there?

‘market-ready’. Fast failures show you where

tweaks are needed.

5. Can my idea make money? Does it cost less to

deliver my solution than I can charge for it? Have I • Great businesses are agile. If you’re used to failing
taken all of my costs into account? fast and often – but more importantly learning
from your mistakes and adjusting your model –
Step 2: Hit the streets. Real businesses are built on real you’ll be an agile business that can take on
people – that is, real customers who will pay you with real anything.
money.
So, before you spend months sitting in a room all by
Why would you build a business without speaking to as yourself and planning your business, let’s take a look at the
many of those people as possible to find out if you’re lean start-up method. This method champions the ‘fail fast
offering something that they want?

and fail often’ mantra. It’s designed to get you to start-up

success as quickly as possible.

What is the lean start-up method?

Why you need to fail fast and fail often

It’s simple: You build something, take it to your customers,

Too many start-up entrepreneurs are scared of failure. get feedback and make it better. This strategy works better
Failure is your friend. Here’s why:

than spending months perfecting your product only to

find customers don’t like it at all.

• You have quick answers. You need to always

provide all the information asked for in the tender “If you’re not embarrassed by the f irst version of your

application. Make sure all of your documents are product, you’ve launched too late.”

up to date and current.

Reid Hoff man, founder of LinkedIn
Reid Hoffman has built the biggest business networking It’s also important to include a review schedule. This
site in the world based on this principle. He wasn’t ensures you keep checking in, you adjust for any changes
perfecting his platform in isolation. He was doing it in and your plan stays relevant and up-to-date.

real-time, based on real user feedback.

Tip 2: Make changes as you go

Here’s how the lean start-up method Grow your plan as you grow your business. Start with the
works:
important parts: The purpose of the business, your

ultimate motivation for starting, who your target market is
Tip 1: Keep it simple, stupid (KISS)

(and why). Then develop the rest of the plan as you go

from step-to-step.

How you plan to run your business should be simple and

straight forward. Don’t overcomplicate your plan too early Top Tip: If you have your plan in the Cloud, your whole
by including everything, just start with the essentials.
team will have access to it, and it can grow seamlessly
Include:

along with your business.

• Your strategy.

So where should you start? That’s up to you. Some people

• How you’re going to achieve it step-by-step.

build their whole plan around a sales forecast, while others

start with customer research. You should start developing
• Important dates and milestones.

your plan where it makes sense to you.

• The data you pull along the way (what you need to Tip 3: Keep things loose

be measuring – in LinkedIn’s case this was users on You need to stay on top of your ever-changing plan. You
the platform).

also need to manage your assumptions as you start to get

real data. If something worked even better than you
• Who is accountable for each step.

expected, that’s great. Your plan tells you how the different
areas are connected so that you can adjust everything else.
• What you think your business will achieve.

 Did something take longer than expected? Go back to don’t want to spend hours writing your plan, only
your plan and look at how everything is interconnected to be told that you need to rework it into another
and establish the reasons why it took longer. Once you format.

have your answer, update your plan and keep moving

forward.

Yourstep-by-step business plan format

guide

Agility is key. Be prepared for wins and losses, for getting

some things right and others horribly wrong. And be

The one-page business plan versus a 10-section
happy when you f igure out that something doesn’t work
document

and why, because now you can f ix it or change course

down a more successful path.

You might have heard of the one-page business plan and

are asking yourself why you need a ten-section f ile. Here’s
FUNDING: Do you want to use your business
the difference between the two.

plan to land funding?

The one-pager: A one-page business plan is your ‘ working’

Keep the following 3 points in mind:
plan. It’s designed to keep you focused on the most
important areas of your business. It’s also meant to keep

• Format: If you need a business plan to apply for

funding, f irst check with the funder or bank to
make sure your business plan format is correct.
Your full business plan:

• Look online: Most organisations offer Business Your full business plan is important for three reasons.

Plan guidelines on their websites in the 1. If you want to approach a funder or lender

Application section.

2. To make sure you have properly planned and

• Follow their process: If you don’t f ind what researched your business and stress-tested
you’re looking for online, call them and ask. You
everything.
 3. To give you a working plan to return to when things 1. Executive Summary

get tough or you face unexpected challenges.

What does your research tell you to do?
This two-page summary is one of the most important
sections of your business plan. People (particularly
The mistake many business owners make is going through funders) will decide whether to keep reading or not based
the motions of building a business plan and then never on this section.

referring to it again.

.How to get this section right:

Your business plan should be the foundation of your
business – but, you should also be able to adjust it and 1. Describe your business, its products and which
correct assumptions as you start selling to customers. market it will operate in. Include what you’ll sell,
Think of your business plan as a living, breathing who your customers are and how your business
document. has a competitive advantage.

Getting started 2. Include your f inancial projections. These

include sales, profits, cash flow and return
A business plan format usually has 10 sections. They cover oninvestment. Make it clear how much money you
everything important that will help you to build a strong need to start and grow.
business.
3. Stress-test it. Read it from the perspective of an
The basic outline has three parts:
investor. Is it still impressive? Would you invest in
1. The business idea

it? Be critical!

2. The marketplace strategy

2. Company Description

3. The financial plan

Give an overview of your business and how it operates.

Include the name of your company, the type of legal entity Your goal is to understand who your target market is, how

it is (how to register your business is covered in Part 4), much are you going to charge, and what your distribution

who the owners are and if there are any signif icant assets.
strategy will be.

Also include your business mission statement, business How to get this section right:

goals and objectives, along with your business’s company

strengths and core abilities.

1. The Market

a. How big is the market?

How to get this section right:

b. How fast is it growing?

c. What percentage of it will you have?

1. Its an interview.Don’t focus on too much detail in

d. What are the major trends?

this section. You can go into more detail later.

2. The Industry
2. Unpack your industry. What industry are you

a. How hard will it be to start your business?

launching in, how big is it, and why is it popular.

Unpack the opportunity based on statistics and data.

3. The Opportunity

3. Stress-test your work. Does your pitch hold up a. Where is the gap in the market?

under scrutiny? b. Why is there a gap?

c. How will your business f ill the gap?

3. Market Breakdown

4 . Keep it lean

This section should be between 2 to 3 pages. It involves a Remember that as you learn more; your market,

high level of research and includes insights into the industry and opportunity may change. By keeping

industry your business operates in and the opportunity your business plan agile, you can re-adjust your

you have discovered. focus and remain prof itable.

 agile enough to change too.

4. Strategic Plan

Your strategic plan needs to cover a few bases in

one-to-two well-researched pages: How will you compete? 5. Business Model Description

How will you manage to appeal to your target market’s

motivations and requirements? What is your primary Your business model determines how much prof it you will

competitor doing? How will you compete with them? make. Keep this section to approximately a page, and

Where could unexpected competition come f rom? include your products and services, why your offering is

unique, your target market and how you’ll make your

money.

How to get this section right:

How to get this section right:

Ask yourself the following questions

In this section you need to breakdown your f inances. You

1. How will your business create something unique

need to include your main costs, how much you think

and valuable to become successful?

you’ll make minus costs, and how much money it will take

to get your business off the ground. You need to use your
2. What makes your business special?

f inancial plan, covered in Part 2, to get these f igures right.

3. How are you different f rom your competition?

Inside scoop: A good business model needs three

You need to stress-test your strategy by coming up with all fundamentals:

the possible scenarios that could close your business

• To f ind high-value customers

down. You goal is to develop a strategy that will keep your

company running, no matter what.

• Offer genuine value to those customers

Don’t be too committed to your strategy. If the market,

• Make a prof it

your customers or competition change, you need to be

Stress-test your business model to see if your business will 7. Marketing Strategy

be derailed by anything. The common culprits are having

unhappy customers, not being able to maintain your Marketing gets your business out there and attracts
position in the market and not being able to generate customers. In this section you’ll need to ask yourself the
funding for growth.

following:

• Why is your product/service so important to

customers?

6. Management and Organisational Team

Who exactly is your target market, down to freckles

Your team are important. They’re the foundation of your and nail polish colour?

start-up and investors in particular will want to know who

they are, their experience and their skills. This is the section
where you get to show them off (including yourself).

• How will you show off your product/service?

How much is your fabulous product/service going

Include names and faces, as well as qualifications and to cost?

experience. Break down who will be running what and

why they’ve been selected.
How will you get your products to your customers?
For example, will you use trucks and physical
How to get this section right:
• stores, or drones and online stores, or a
• Unpack the logistics. Who is responsible for what, combination of both?

what tasks are assigned to which department and

how much money you’ll need to keep these.

You need to come up with a promotion strategy

that will include public relations activities,
• Leadership and support staff all play a role. promotions, advertising and potential viral
Besides the head honchos, you also need to list marketing activities.

how many behind-the-scenes fairies you’ll need to

keep your business running smoothly.
How to get this section right: • Your team: Where will you f ind all your skilled

people and material for your products?

• Don’t overspend. You need to spend money to

make money, but your cash flow will determine

• In-house or outsourced: Are you going to

how extravagant you can be with your marketing

outsource any aspects of your business? How will

strategy.

you manage this?

• Go where your customers are. The marketing

• Cash flow: Breakdown your cash flow cycle, show
channels and strategies you choose should be

when you will receive money and when you will

about your customers, their interests and where

make payments.
they are (both online and offline).

8. Operational Strategy

9F. inan c ial Strateg y

Operations is all about the day-to-day running of your Don’t overload this section with detailed f inancials.

business. Where will your off ices be? What equipment are Rather have projections and supporting document in the

you using? What processes will your team follow? What appendix. Your detailed f inancials live in your Financial

will keep the business running, and how much money is Plan.

needed to do so?

This is the section investors will pay close attention to, so

How to get this section right: ensure everything is covered. Experienced investors,

lenders and partners can assess how long your business

• Describe your operating cycle: From invention

will survive based on this section.

to customer and back again. How will your

business deliver its service or create and sell its

products?

How to get this section right:

10. Appendix

Don’t skip any steps in this section. Supporting documents can slow a reader down, but

• Start-up costs: How much it will cost you to investors might still want to review them after they’ve read

launch your business and where you expect to get your business plan. That’s where your appendix comes in.

the money f rom?

How to get this section right:

• A 12-month prof it and loss projection: Break this

Include the following supporting documents:
down monthly, but also include a three-year prof it

and loss projection, which you should breakdown

• Advertising material

by quarter.

• The research you used to come to your conclusions

• Cash flow projections: You need to share your
in each section.

cash flow projections for the next 12 months and

the next three years.

• Blueprints and plans, as well as maps and photos of

locations.

• Projected balance sheets: Include at the launch

of your business and at the end of each year.

• A list of equipment your already have or still need

to buy.

• The all-important break-even calculation: This

indicates that you’ve worked out when your
• Letters of support f rom customers who have
business will start making money, also known as
already tested your product/service.
your break-even point.

• Your accountant’s hard work – detailed f inancial

calculations and projections.

Top Tip: The aim of your business plan is to tell an exciting

and realistic story of your business, so ensure your
numbers make sense and all your conclusions add up.

- Copy edit your plan – nothing sows the seeds of doubt as

fast as typos

- Get feedback from a trusted adviser or business mentor

- Test and revise your business plan frequently – the more

up-to-date it is, the more helpful it will be to keep your
business on track.
2: Supercharge your start-up with a strong

financial plan

Financial planning is one of the biggest factors that can if your costs are higher than projected, an issue many

make or break a start-up business. That’s why it’s essential start-ups run into.

to get your numbers right.

The good news is that if this does happen, you will have

We know this can be a daunting task for many the tools and information you need to decide if you must

entrepreneurs, particularly if you’re new to budgeting and increase sales or adjust your business model to reach your

forecasting.

targets.

We’ve built this beginner’s guide to give you a good However, without a roadmap to follow, it’s much harder to

understanding of each part of a comprehensive Financial hit your turnover goals and ensure you make a prof it.

Plan, so you can fast-track your path to prof itability.

A f inancial plan is essentially an ‘educated guess’ that:

What is a f inancial plan?

• Projects revenues and expenses for a certain period

of time

It’s a working document that functions as a working

budget. In other words, it helps you plan for the year

• Describes the operational activities and costs
ahead.

related to your business

Each month, you can then track if you’re behind or ahead

• Includes a prof it and loss statement, a balance
in projected turnover and prof its. You’ll also be able to see
sheet, and projected cash flow

Best of all, the process of creating – and then following – a become a working document you can revisit on a
financial plan stress-tests your numbers and your monthly basis.
assumptions, radically increasing your chances of
succeeding in your entrepreneurial venture.

2. Impress investors with your financial plan

The financial plan of an established business will include Financial plans are really important if you want to
financial statements, balance sheets, and other financial approach investors and banks:
information.
• Venture capitalists, angel investors, alternative

funders and banks, require you to be able to prove
A new business (without a trading history) should include that your business is on a growth path.

targets for the first one to three years, including projected

costs and sales, as well as any potential investments that • Investors need to see that their contribution will
the business may attract.

deliver a good return on investment.

Why financial planning is so important for • Banks and other lenders need to see that your
your business?

projected cash flows show the ability to repay

loans.

1. Financial plans increase your chances of success

There are two reasons that all business owners need a 6 Benefits of a financial plan

financial plan:

1. For start-ups, a financial plan can show if or when

• The act of planning helps you to determine your your business will start making a profit.

projected revenues and expenses, ensuring your

business is cash flow positive and makes a profit.

2. Once the business is operational, your financial

plan will guide your day-to-day spending
• Once you launch your business, your plan will decisions.
 3. The plan includes an Expense Budget that lists all Unfortunately, many business owners go through the

the costs that your business will face.

process of creating a business plan and a f inancial plan,

and then they put it on a shelf and never look at it again.

4. It also includes a Forecast to predict how much Great entrepreneurs will tell you that you need to do the

revenue your business will generate, and when opposite – once you create your f inancial plan, you need to

that revenue will come.

check it regularly.

5. Financial planning keeps you on top of your cash Your f inancial plan is the ideal tool for effectively and

flow – more specif ically, it helps you to keep cash prof itably managing your business.

flowing into your business. Cash flow challenges

occur when expenses outpace revenue forecasts. To master your f inancial plan like a boss, block out one

Poor cash flow is often the result of overspending day a month where you f ill in your actual numbers in the

or not sticking to your budget.

prof it and loss statement and compare them to your

projections. Now you know how your business is doing,

6. Maintaining an up-to-date f inancial plan is and if any changes are necessary.

essential to evaluate the overall f inancial health of

your business, and to detect cash flow problems Not only will this help you to revise future projections, but

early on so that you can address them quickly and you will immediately notice if your cash flow is under

effectively.
pressure, may be under pressure in the future, or if costs

are not balanced by your revenue.

Bring your f inancial plan to life

Cash in on your cash flow

The process of sitting down and using past f igures to

establish patterns, cut costs and understand cash-flows

One of the biggest reasons that businesses fail in their f irst

and margins is invaluable to you as a business owner.

three years is cash flow. Unfortunately, start-ups end up in

a situation where their expenses exceed their cash,

Update your plan as you go

resulting in a cash flow problem. It’s possible to have a
prof it on paper, but insuff icient cash in the bank to pay 5. Failing to budget for capital or exceptional

creditors.

expenditures.

All of these risks can be mitigated by a f inancial plan,

Great entrepreneurial hustlers are all about how much

particularly if you revisit the plan – and your numbers – on

money they have in the bank. Take a page f rom their book

a monthly basis.

to ensure your start-up succeeds.

“Make sure you always get paid. Don’t carry on doing

work if your clients don’t pay and chase your invoices. I’ll
Master common f inancial terms

climb in my car and drive f rom Joburg to Durban to fetch

•
my money. That’s my business we’re talking about.” Revenue, also called Sales, is the money that

comes into the business

– Tim Hogins, founder of GOG, a R150-million business

• Cost of Sale or Cost of Goods Sold (COGS) refers to

Poor cash flow happens for a number of different reasons: the expense of creating the goods or services that

you sell. A services business will have a Cost of Sale,

1. Inadequate credit control: Providing payment
but not a COGS

credit terms to customers with a poor credit score

• Gross Margin is your revenue or sales minus your

2. Increasing debtor days: Allowing delayed payment
Cost of Sale or COGS

terms to 45, 60 or 90-days

• Note: All of these f igures do not include VAT, which

3. Incurring bad debts: Customers who fail to pay you

will still need to be paid over to SARS if your

business is VAT registered (link to

4. Late invoicing and other poor accounting
SARS/Compliance article)
practices

What’s in a Financial Plan? How do I create a Sales Forecast?

1. Your Sales Forecasting: Revenue

To begin your sales forecast, create a spreadsheet that will
project your monthly sales over the course of three years.

What is a Sales Forecast?

• Sales forecasting is the process of estimating your If you haven’t launched your business yet and cannot draw
business’s future sales

from past sales, then ask these three questions:

• It’s difficult to make the best decisions for your 1. For start-ups, a financial plan can show if or when
business in the short- and long-term if you don’t your business will start making a profit.

know how you’ll be making money

2.
Once the business is operational, your financial
• You also need to understand how much you need 3. plan will guide your day-to-day spending
to spend in order to offer your product or service to decisions.
the market (including salaries, office rentals etc)

Create different lines of sales for each product line or

division in the business, and columns for each month of
• Sales forecasts are based on past sales data, the first year, and months or quarters for the second and
industry-wide comparisons and economic trends

third years.

• If you’re a new business that can’t draw from your

Include the following:
own past sales data, you will need to research your
market and customer buying trends carefully in • Unit sales

order to accurately forecast potential sales

• Pricing

• Your sales forecast should be consistent with the

sales number you use in your profit and loss • Multiple units x price = sales
statement

 • Unit costs

Once you have your Gross Margin, you will know what you
have left to cover general administration costs and what
• Units x unit costs = cost of sales you can invest in your brand’s growth through marketing,
branding, capital expenditure etc.

Anticipating projected sales is one of the reasons why

experts strongly recommend launching a business in an Mistakes to avoid when creating a sales
industry you know and understand. It’s difficult to forecast

anticipate how customers will react to your solution if

you aren’t already familiar with their specific needs and
• Don’t ignore your costs. It’s important to forecast
sales, but your ultimate goal is to determine your
challenges.

Gross Margin. This means your cost of sales is as

important as your sales or revenue figure. Examine
Calculating Your Gross Margins

each sale from the perspective of how many costs

were involved. Include the salesperson’s time and
Cost of sales is an important element in your sales forecast
salary, overheads, and the materials and
because it allows you to calculate your gross margin.

equipment used to secure the deal and deliver the

product or service.

The formula is as follows:

Gross Margin = Sales - Cost of Sales

• Don’t forecast based on your gut or

assumptions. While there is some guesswork
involved in forecasting (and none of us can see into
When you compare this number to different industry
the future), you want to be as accurate as possible.
standards, you can get a sense of whether your cost of
Draw on past sales (if you are an
sales is too high, and your Gross Margin therefore too low.

already-established business), survey your

Gross Margin is an important figure because it tells you
customers and prospects and investigate your
how much money you have left each month after you have
industry.
paid for the fixed and variable costs of your production or
services.
The ‘Lean Start-Up’ approach to business planning to operate without sacrif icing on quality, your

recommends that entrepreneurs with new business capacity to deliver a service or product, and your

ideas get into the market as quickly as possible. This ability to gain a maximum prof it for your business.

helps you to build forecasts based on real customer

feedback and early sales, rather than on guesswork

alone.
The difference between Fixed and Variable

costs

• Don’t ignore external factors. There are many

external factors that impact sales. Make sure you

Start by differentiating between your Fixed Costs and your

have thought of them and how these risks can be

Variable Costs. If you are a start-up, you will also want to

avoided. Don’t fall into the trap of being highly

separate your start-up expenses and your operating

optimistic about your sales and then f ind that the

expenses.

reality is far less than you thought it would be – and

• Start-up expenses . include CIPC registration fees,

yet your costs are too high based on extremely

starting inventory, rental deposits, down payments

positive projections. Being positive and optimistic

on a property or equipment, utility set up fees and

are great entrepreneurial traits, but you want to be

off ice set up costs.

realistic as well

• Operating expenses on the other hand are the

2. Your Expense Budget: Costs

costs of keeping your business running and are

generally monthly expenses. They include salaries,

What is an Expense Budget?

rent, telecoms expenses, utilities, any raw materials

• A E
n xpense Budget is the tool that helps you to
you might require, storage, distribution, marketing,

determine your Cost of Sale s

off ice supplies and maintenance.

• It lists Fixed Costs and Variable Costs and helps you • Operating costs are made up of Fixed Costs and

Variable Costs. Fixed Operating Costs are costs

to ensure that you are spending as little as possible
 that don’t vary based on the amount of product you There are three common types of spending in a
make or services you sell. These include rent and business:

salaries.

• Operating costs, such as salaries, rent, utilities,

marketing and telecoms. These are monthly
• Variable Operating Costs are costs that change expenses and tend to be Fixed Costs.

according to how much product you make or

services you sell. These include sales commissions, • Direct costs, also known as Cost of Sale or Cost of
raw materials and utility expenses like electricity. Goods Sold (COGS) in manufacturing. These are
You also have fixed and variable administration included in your Sales Forecast and include any
costs, for example, rent is fixed but stationery and expenses that are directly related to producing an
printing expenses might vary based on purchases item. These tend to be Variable Costs, as they are
in a month.

impacted by how many units you manufacture and

deliver or sell.

• Fixed Administration Costs should always be

covered first, as these will be incurred regardless of • Repaying debts and purchasing assets. These
whether or not you make a sale. You need to know affect your cash flow and your balance sheet, but
what revenue is required to cover these to ensure not your profits. Profits are what you have left after
you break even.
paying your bills (both fixed and variable).

How do I create an Expense Budget?

Here’s how you determine your Expense Budget:

An Expense Budget is also known as an Expense Forecast, What is an Expense Budget?

or Projected Expenses. When you combine your Expense

Budget with your Sales Forecasts, you have what you need To get started, first list all the expenses associated with
to project your business’s profit and loss.

running your office:

• These are operational or operating expenses, and

 include salaries, rent, telecoms, utilities bills and so Determining Your ‘Cost of Sales’ or ‘Cost of

on

Goods Sold’

1. Once you understand your Fixed and Variable

• They are bills you will incur whether or not you

costs, you need to determine your Cost of Sale, or

make a single sale

Cost of Goods Sale (COGS):

• They are f ixed and don’t fluctuate based on the

• First, list your f ixed costs (labour, rental of a

strength or weakness of your revenue in a given

manufacturing space, electricity for your

month.

production plant) that are directly related to

manufacturing your goods. These do not include

List each item separately, and then add them all up to get
off ice overheads etc, which you would incur even if

an operational cost.
you didn’t manufacture a single item.

Variable Costs:

• Next, list your variable costs (maintenance, raw

materials).

Next, list your variable costs, such as:

2. The key here is that these costs are directly

• Equipment purchases

affected by your sales. For example, if you produce

200 widgets, your costs will be different to 1 000

• Printing business cards

widgets.

• Marketing

3. Most variable costs are direct costs that belong in

your sales forecast and directly impact your Cost of

• Raw material purchases

Sale or COGS.

List each item separately, and then add them all up.

4. If you carry the cost regardless of whether you

make a sale, it should not be included here.

 5. To determine cost of sale, use this formula:

• It is also factors in forecasting, using assumptions

f rom your sales forecasts, expenses and balance

• COGS = Beginning Inventory + Purchases during sheet items

the period - Ending Inventory

Your COGS per unit must be lower than the • A Cash Flow Statement shows the amount of cash
revenue it generates, or you will be running at a your business brought in, how much you paid out

loss.

and what your cash balance was at the end of the

month

• Once you have your Cost of Sale, you can now

determine whether your product is priced • Cash is the life-blood of businesses, making this a
correctly, and if your Sale Forecast will cover your critical document for you.

costs and give the business a prof itable return.

Why is a Cash Flow Statement so important for

6. Once you have your Cost of Sale, you can now
my business?

determine whether your product is priced

correctly, and if your Sale Forecast will cover your

costs and give the business a prof itable return.

If you are launching a new business, it’s critical to compile

a Cash Flow Projection that shows your expected cash flow

7. The rule of thumb is to aim to make double that month-by-month for the f irst year of operations.

f igure to ensure you have some wriggle room, and

the business is able to generate a prof it.

Unfortunately, many start-ups focus on making prof its

and signing large deals, but forget that without cash flow,

3. Your Cash Flow Statement

the business can’t pay its bills. For every large corporate

customer that will ask for 60- or 90-days, you need

What is a Cash Flow Statement ?
customers who will pay upf ront or on 30-days. Your Cash

• A Cash Flow Statement shows the physical rands Flow Statement will help you plan this.
One of the harsher realities of business is that how much Your Cash Flow Statement is also the area of your business
profit you are projected to make each month is that lenders and investors will want to review before
meaningless if you don’t have cash flowing into your bank considering giving you a loan or funding, as it’s a good
account. Profits on paper do not pay salaries, overheads or indicator of the health of your business.
suppliers. If you want to build a successful business, cash in
hand is critical. 4. Your Income Statement / Profit & Loss Statement

• Your Cash-Flow Statement is a tool to realistically What is a Projected Income Statement?

determine which customers will pay upfront, and
which will be on 30-day terms, 60 days, 90 days and • A Projected Income Statement is based on your
so on.

Sales Forecast, Expense Budget, and Cash Flow

Statement

• It’s essential that you are as realistic as possible. You

don’t want to be surprised if you only collect on 70% • It’s an educated guess that is essential if you want
of invoices in your first 30 days, when you were to determine whether or not your business can
counting on 100%.

make money

• Track your invoices against your Cash Flow • This means that your Projected Income Statement
Statement as well to ensure every customer has is a way to plan your Profit and Loss Statement
been invoiced on time.
before the financial year begins

Top Tip: Business owners who run healthy businesses

• Because your Profit and Loss Statement (or P&L)
can only be finalised at the end of your business’s
know how much cash they have, where it is coming from,
financial year, an Income Projection is important to
and where it is going. If your aim is to be Africa’s next
determine whether the business will make a profit
trail-blazer, it’s a good idea to keep track of every cent in
or a loss, and if something needs to be addressed
your business.
early on in the financial year to ensure a profit is
achievable

How do I create a Sales Forecast?

The formulas are simple:

Gross margin = Sales - Cost of sales

To begin your sales forecast, create a spreadsheet that will

project your monthly sales over the course of three years.

Net prof it = Gross margin - Expenses, interest and taxes

If you haven’t launched your business yet and cannot draw

f rom past sales, then ask these three questions: 5. Your Balance Sheet: Assets and Liabilities

• Gross Margin is a business’s net sales revenue

What is a Projected Income Statement?

minus its cost of goods sold (COGS). The gross

• A Balance Sheet tracks your Assets and Liabilities
margin represents the amount of sales revenue
(not included in your Prof its and Loss Statement)

that your business holds after all the direct costs

associated with producing your goods or services

• Assets and Liabilities f igures are used to project the
have been paid. All businesses have costs and debt
net worth of your business at the end of your
obligations they need to service. The higher the
f inancial year

gross margin your business enjoys, the higher the

percentage of each rand of a sale you retain after

• Assets are anything of value like land, buildings
costs are covered.

and equipment – assets that provide future

economic benef its to the business

• Net Prof it illustrates how much of each rand of

revenue collected by your business translates into

• Liabilities are outstanding debts; they are your
prof it. In other words, the Net Prof it margin is the
business’s obligations

ratio of net prof its to revenues after your cost of

sales has already been subtracted. Net Prof it is

• In successful businesses, assets outweigh liabilities

what a business is left with after additional

expenses, taxes and interest have been deducted

• If liabilities outweigh assets, the business is
as well.
 probably in trouble, and the overall value of the • Assets: Accounts receivable (your sales), money in
business will be low

the bank (cash flow) and inventory (product on

hand to sell)

• A good way to gauge the health of your business –

and the value of your equity – is through your • Liabilities: Accounts payable (money you owe),
Balance Sheet.
credit card balances, loan repayments

How your Balance Sheet tracks Assets and • Equity: Owner’s equity, investor shares, retained

Liabilities

earnings and stock proceeds.

Your Balance Sheet essentially tracks your Assets,

How do I create a Balance Sheet?

Liabilities and Equity.

• Because a Balance Sheet is essentially an equation

that balances out, Assets go on one side of the

sheet, and Liabilities on the other.

If you have taken a bond on a property, for example, this

will appear under Assets and Liabilities. The interest on the

• The difference between these two numbers is your
loan is in your Prof it and Loss Statement, but the principle
equity in the business (ie. What you as the owner
repayments are on your Balance Sheet.

would walk away with if you sold all your business’s

assets and paid off all its debts).

It’s called a Balance Sheet because the equation needs to

balance out: Assets = Liabilities + Equity

6. Your Break-even Analysis

The total of your liabilities plus your total equity always What is a Break-even Analysis?
equals the total of your assets.

• For start-ups, your Break-even Analysis helps you to

determine when you can expect your business to
 start covering all its expenses and generating a • Fixed Costs: These are costs that must be paid
profit.

every month, whether or not any sales take place

(includes rent)

• To do this, you need to determine exactly how

much you need to sell in order to generate a • Unit Selling Price: What you sell each product or
specific level of profitability.
service for

• It’s an important step in understanding whether • Variable Costs: Semi-variable costs that go up or
you have a good business idea: Can you realistically down depending on the activity of your business
generate sufficient sales revenue to cover your (includes raw materials).

costs?

What Your Break-even Analysis Means For Your

Why is my Break-even Figure important?

Business
Because a Balance Sheet is essentially an equation that
Having a clear understanding of your Break-even Point balances out, Assets go on one side of the sheet, and
(BEP) allows you to set your prices appropriately so that Liabilities on the other.

you can forecast when (and if) your business will become • If selling 600 units does not seem possible, you
profitable.

have a number of options:

a. You could cut costs.

How do I determine my Break-even Figure?

b. You might ramp up your sales efforts.

The Break-even formula is the following:

c. You could target an additional market or perhaps

Break-even Point = Fixed Costs / (Unit Selling Price – add a new, more profitable unit line.
Variable Costs)

• If you do none of the above, you’re unfortunately

unlikely to reach BEP or make a profit, which will
impact the sustainability of your business.

• Finally, it’s important to understand that a

Break-even Analysis is not a predictor of demand –
understanding that you need to sell 600 units does
not mean that your target market wants to buy
600 units.

• If you go to market with the wrong product or at

the wrong price, you may never hit your BEP –
which is the reason for this important tool in the
first place.

 •
3: Understanding business funding and finance

There are two ways to launch a business: With funding,

Business funding in South Af rica

and without it.

In this guide we unpack the difference between
99% of businesses in South Af rica fall into the second government grants, loans, equity funding, venture capital,
category – they launch a business without any f inancial angel investment and personal debt f inance so that you
assistance.
can determine which funding or f inance options best suit

your needs.

They then fund each month’s operations through sales –

either of products or services. This is known as

1. Government grant funding

bootstrapping.

What are government grants?

Some start-ups can’t be launched without business

funding though, and most companies reach a point where Government grants for small businesses are popular with
they need some capital to help them grow or fulf il a large start-up business owners because unlike bank loans that
order.
need to be repaid with interest, grant funding does not

need to be repaid.

This is where business funders come in. From banks to

venture capitalist f irms and even the government, there This doesn’t mean it’s ‘f ree money’. The hurdles you need
are substantial sources of f inancial aid available for you to to go through to access partial or full f inancial support can
boost your business venture. You just need to know what be intense:

type of business funding suits your business best.

• To access grant money you’ll need to submit all the
right paperwork (100% correctly)

 • Your business will need to align with a specif ic Who are government grants best suited to?

project or initiative (this is listed on the agency or

department’s website)

Business funding in South Af rica that is backed by

• government generally supports black economic

Make sure you approach the best government empowerment, job creation and developing the economy.

agency for your business (they don’t work together

or refer applications to each other)

• Most government grants are exclusively for previously

Because grants do not need to be repaid, there are disadvantaged individuals. This group includes black-

strict guidelines for applications and the process is owned, youth-owned and female-owned businesses.

lengthy (so expect this to take a long time)

• How are government grants repaid?

Once you’re successful though, you will have the

funds you need to launch and grow your South You don’t need to pay grant money back (not even

Af rican start-up and change lives!

interest), but there may be certain conditions attached to

the funding. For example, you may be required to hire local

Top tip: Government grants are there to support small staff, as one of government’s goals is job creation.

business development and success. Your chances of

securing funding will increase if you can show how your Grants are designed to help you build your business, but

business will improve the lives of others. This can be also to pay it forward, so consider who else will benef it

through employment, solving a need or contributing to f rom your small business’s success.

economic growth.
What are the pros of government grants?

• It’s not a loan, so you don’t need to repay the

money.
 • Government wants to help you if you tick all the These business start-up funding institutions include:

boxes.

National Youth Development Agency (NYDA)

• This means that the barrier to entry is low if you’re The NYDA provides business funding for start-ups and
previously disadvantaged, young, or female and established businesses run by young entrepreneurs
have a solid business idea or plan.

between the ages of 18 and 35 years. Funding ranges from

between R1 000 to a maximum of R200 000. Before you
• The funding amount is substantial if you meet the can access funding, it’s mandatory to get involved in the
requirements.
NYDA mentorship and voucher programme for a
minimum of two years.

What are the cons of government grants? www.nyda.gov.za

• The funding criteria is specific and you may not Youth Pipeline Development Programme

qualify.

This programme is run by the IDC and is designed to help

aspiring applicants understand the funding process and
• You may be required to use the money under fine-tune their request for funding proposals. This
certain terms that benefit your local government.

increases their probability of being considered for IDC

business funding as the business (and entrepreneur)
• It’s a long process involving paperwork, interviews matures.

and more paperwork. This can take months or www.idc.co.za/youth-pipeline-development-programme/

even years if paperwork is not properly completed.

Isivande Women’s Fund

South African government grant funders

Available only to women, the intention of this fund is to

empower female-owned business ventures. In addition to
The South African government’s grant funding funding, education and training is also offered.

options favour business ventures that aim to make www.gov.za/services/business-incentives/isivande-womens

a difference to the local economy. -fund
Black Industrialists Scheme (BIS)
access to R1.4-billion, which it is mandated to invest in
The BIS offers business funding on a cost-sharing basis. In South African small businesses over the next few years.

other words, this grant awards funding to a maximum of www.sefa.org.za

R50 million, depending on how much of the business is

black-owned or managed. It supports businesses that will improve your chances
make a greater impact on society, job creation and • Research each grant fund thoroughly before
empowerment.
approaching them.

www.thedti.gov.za/financial_assistance/BIS.jsp

• Find out: What they stand for, what they are trying

to achieve, and who they have awarded grants to in
Tourism Transformation Fund
the past. This should all be on their websites.

Supports companies that provide services directly to

tourists and are 51% black-owned. The grant funding • This is a long process with a huge amount of
portion is capped at R5 million.
paperwork, so you don’t want to waste your time
www.tourism.gov.za/CurrentProjects/Tourism_Transformati on funds that don’t invest in businesses like yours.

on_Fund/Pages/Tourism-Transformation-Fund.aspx

• If there is an export council in your industry,
Technology Innovation Agency (TIA)
approach them as well – they will be able to assist
The TIA has a number of grants available to fund start-ups you in the entire process.
based on research conducted in partnership with a higher www.thedti.gov.za/trade_investment/export_organi
education institution or science council. The funding sations_contacts.jsp

amounts average R200 000, but up to R1 million can be

awarded.

www.tia.org.za
2. Loan financing

Small Enterprise Finance Agency (SEFA)

What are loans?
SEFA is affiliated to the IDC and government and has
A loan is a line of credit offered in exchange for interest
interest payments on top of the loan repayments. The approaching the right funders with a goal of securing
lender does not take any form of ownership (known as funding in 18 to 24 months, instead of a few weeks. Those
equity) in the business, although some surety is generally are the businesses that attract attention. If you can show
required in order for the loan to be approved.

you’re a planner who is willing to go the distance, you’re

already ahead in the game.

Banks versus alternative funders

Personal loans

Banks are risk averse. This means that:

• They invest in businesses, but they need to make Many start-ups are too new to have a strong track record.
sure it’s a safe investment

Others have nothing to offer as surety for the loan. As a

result, many start-up founders apply for a personal loan
• Their ‘return’ or what they make from the based on equity and personal surety instead of a business
investment is in the form of interest repayments

loan.

• A strong track record and usually some form of Should you choose to fund your business using money
surety are required to access a business loan.
from a personal loan, the lender will only consider your
personal finances, and a credit score over 700 is required
More recently, alternative funders have joined the lending to qualify.

space. Some of these funders are niche players who focus

on specific industries that they are very familiar with. Who are loans best suited to?

Others have repayment methods that do not require

surety – something many start-ups and smaller businesses If you have great credit, you’re one step closer to being
do not have to offer in exchange for a loan.

approved for a business loan. Lenders usually look at your

credit history and your personal finances before supplying
Top Tip: According to Zizipho Nyanga, CEO of the you with business funding to launch your start-up. They
Masisizane Fund, when you start your business, you should want to make sure you’re good with money.

bootstrap it if you can. Begin the process of identifying and

A small business loan is also a good way to ensure you money in the daily operations of your business.

have a cash cushion if bootstrapping isn’t an option.

What are the cons of loans?

Top Tip: Apply for credit before your business needs it. This
• Not everyone qualif ies and you may only realise
shows the lender that your f inances are in order, but also
this after wasting a lot of time submitting various
that you’re looking ahead. You’ll be more likely to receive
documentation.

f inance. You also won’t be scrambling for cash if

something goes wrong – you’ll already have it. Forecasting
• If you’re not fully informed on what options best
is an excellent tool that can be used to predict future
suit your business funding needs, the loan may not
cash-flow issues. PART TWO of this guide covers
benef it your business in the long run or could be
forecasting.

too expensive for your requirements.

How are loans repaid?

• First-time borrowers may face high interest rates

and failing to repay according to your agreed-on
If you’re borrowing f rom a bank, you will probably set up a
terms could lead to business closure and personal
payment plan outlining the term over which you will pay
loss, especially if you’ve signed personal surety for
back the loan, usually in instalments. Generally, a business
the loan.

loan must be repaid with interest.

What are the pros of loans?

Get assistance:

• You have a range of funding options available to

Khula Enterprise Finance helps small businesses
you depending on your f inancial needs.

access bank loans. It does not lend money itself,

but provides mentorship and guidance to
• It’s a relatively quick funding process compared to a
entrepreneurs, particularly in how to access
grant application.

f inance. www.khula.org.za

• The bank has no say in how you use the money in

 3. Equity funding
investors make money in two ways:

What is equity funding? • They earn dividends when the business makes
money. Your equity finance agreement will outline
Unlike a business loan, the investor takes an ownership the percentage of profits your investors will earn
percentage of the business in exchange for funding. There and when they will earn it.

are no monthly repayments or interest repayments.

• They make money on the sale of their shares. All

Equity funders include:
investors will eventually ‘exit’ the business. When
• Venture capitalists (VCs)

they sell to another investor or holding company,

the goal is to make more from their shares than
• Private equity firms (PE firms)

they initially paid for them.

• Holding companies that own a number of What are the pros of equity funding?
businesses.

• The money received isn’t paid back to your

Who is equity funding best suited to?

investors with interest. And you only begin paying

dividends when your business makes a profit.

It’s easier for established businesses to secure private

equity (PE) funding for expansion than it is for start-ups • If your business isn’t a success, you won’t suffer
who are launching a business. This is because private financially in your personal capacity.

equity funders are interested in growing their investments,

which means they want to see a track record before • You can use the investment funds to finance
investing in a company.

growth because you don’t need to worry about

monthly loan repayments.

How is equity funding repaid?

• Private equity investors aren’t necessarily looking

Equity funding is not repaid like a bank loan. Instead,

for ten times their money back (like Venture

 Capitalists do) and they are comfortable with

slower growth than VC firms. Top Tip:

What are the pros of equity funding? Equity investment is a partnership. Whether you
approach a Private Equity Firm or Venture
• Equity investors are part-owners in your business. Capitalists, it’s important to make sure everyone
They have a strong interest in how well the business has the same values and goals for the business.
does and that their money fuels growth.

You will be working together for at least five to

seven years, possibly longer, so make sure you get
• This means they will sit on your board and will most along.
likely be involved in key decisions going forward.

• If your equity funder is hands-on, you could face South African equity funders

conflict and a possibly even lose control over

management decisions.

Business Partners

Business Partners funds entrepreneurs through finance,

• Landing equity financing takes a lot of hard work.
shareholder’s loans, equity, royalties, term loans or a

combination of all of these.
• This includes providing investors with detailed www.businesspartners.co.za/en-za

business plans and forecasts that prove a secure 4. Venture capital funding

and profitable future for their investment; due

diligence and many, many hours of meetings.

What is venture capital?

A Venture capitalist is an equity investor and their main
• While all of this is happening, you aren’t focusing
focus is making money from their investment in your
on your business, which could suffer as a result. business. This means that they are likely to invest
exclusively in businesses that can provide good returns on
their investment.
What is venture capital?

advice in addition to funding.

Businesses that are specifically built for growth are most • VC funding boosts your business’s credibility,
suited to venture capital. A VC will typically want to exit or inviting other investors and their networks to take
sell their shares within five to seven years. At that stage, an interest in you and even invest in your business.

they will ideally sell their shares for 10 times what they paid
for them.
What are the cons of venture capital?
A venture capitalist is therefore looking for three things:

• In many ways venture capital can be very expensive

• Can the business be scaled at a low cost; without funding. If your business is still in start-up phase
increasing overheads as you add customers?
with a low valuation, you may end up giving a high

percentage of ownership away in exchange for
• Do you have a specific growth plan that includes funding.

how you will increase their investment ten-fold?

• Venture capitalists may want to be actively involved

• Do you have the team, product, market experience in running your business, based on their experience
and customers to accelerate your growth?
and their desire to see your business succeed.

Make sure you can answer these three key questions for • The better your company is managed, the higher
funders: Will they make money on the deal? Do you and the return the VC is likely to get. This could interfere
your team have the experience in your market to drive with how you want things to run.

growth? Have you considered where the business is at risk

and planned for this to protect your funder’s investment?

• VCs are interested in growth. Many businesses are

better off with slow, steady and organic growth.

What are the pros of venture capital?

• The more money you need, the larger the portion

• Venture capitalists are usually experts in their fields you may have to give up to the VC.
and can offer valuable insights, mentorship and
 • If your venture isn’t successful, investors may
recover their funds by liquidating your company.

List of prominent venture capitalists

AngelHub Ventures

This VC is a seed and early-stage investor that focuses on

business funding for lean, disruptive start-up businesses.

www.angelhubventures.com

4: How to register a new business in South

Africa
Many start-up entrepreneurs launch and begin trading there are benefits to formally registering your business.

without registering their businesses. While this is perfectly

legal, there will come a time that you’ll need a more
What are the benefits of registering my
formalised company if you want to land some big clients
start-up?

and build on your start-up success.

Registered businesses have access to things that informal

The sooner you register your business in South Africa, the companies do not, including:

sooner you’ll be taken seriously – and the sooner you’ll be

able to focus on growth.

Business banking accounts

Separating your personal and business accounts keeps

Where can I register my business?

your personal finances safe.

In South Africa, all businesses are registered with the More importantly, you need a business banking account

because:

Companies and Intellectual Property Commission (CIPC) at

www.cipc.co.za/index.php/register-your-business/

• It helps you keep a record of payments and profits.

Do I need to register my business before I start

trading?

• It keeps you and your business separate, so you

can focus on what it will take to build the business,

No,

you don’t need to register before you start trading, but and not just on your personal bank balance.

 • It provides a track record that’s important when Here are the four different types of businesses that can be
applying for a loan or for funding, because it shows registered:

investors how well the business is doing. PART

THREE of this guide covers what funders in South

Africa are looking for, and who you can contact for 1. Sole proprietorship

funding. This is for entrepreneurs building businesses alone without

any partners or co-founders. Many businesses start out as
a sole hustle and eventually grow into a larger, more
Applying for loans

complex business type.

Running a business requires money – cash you don’t

always have on hand. If you need a loan, you’ll have to 2. Partnership

prove that you’re a registered business. Unless you want to

borrow money from unsafe (or even unscrupulous) A partnership is when there are two or more founding
lenders, get your papers in order before you need a loan. partners running the business together. Having partners
has its advantages if you don’t have all the skills necessary
for running a business. For example, a charismatic
What type of business should I register?

salesperson might partner with a chartered accountant to

ensure there is a strong sales-focused partner and
Before you can register your start-up, you first need to someone who handles the finances.

know what type of business you want to open.

The type of business you have will depend on two key 3. Proprietary Limited company (Pty Ltd)

things:

- How many founders are in your business?

A private company is a separate legal entity from you, the
- How many people do you want to have control over your business owner. This means you can start a private
business?

company by yourself, and if things don’t work out, you

won’t run the risk of having your assets seized by a sheriff

of the court.

- Financial year-end

- Registered address (where your head off ice is based)

4. Public Company

- Number of directors

- Company name

A public company trades its shares on a stock exchange. - Whether the company name serves as the registration
How the share is trading will measure the value of the number

whole business. Anyone can become an equity owner in - The reserved name and reservation number

your business by buying stocks.

- A list of four names to be checked by the Commission.

How do I register a business?

Memorandum of Incorporation

Once you’ve determined which type of business you will be This document needs to contain the following:

registering, you can begin the process.

To register your company, you’ll need the following - Details of founders

documents:

- Number of directors or alternate directors in the business

- How much share capital exists

- Notice of Incorporation

- Memorandum of Incorporation
Supporting documents

- Plus a few supporting documents.

You’ll also need the usual admin papers when registering

Notice of Incorporation

your business, along with the CoR 14.1, CoR 15.1A for a

normal private company or CoR 15.1B for a customised

This document needs to contain the following:

private company. These can be downloaded f rom the CIPC

website at
www.cipc.co.za/za/
- Type of company

- Incorporation date

Other documents you’ll need are:

How do I make sure I get the company name I

want?
- Certified copies of your ID and all indicated initial
directors and incorporators.
• Selecting a name. During the business registration
- If you’re absorbing a business into your business, you’ll process, you can either select the name for your
need a power of attorney as a representative to incorporate business during the process or you can register
the new business and sign all the documents.
without a name, and the CIPC will generate a name
- If you’ve already reserved a business name before for you to use as a placeholder.

submitting your incorporation documents, you’ll need to

submit a valid name reservation document.
• Choose a few options. You can’t use a name that

another business has already registered, so submit a
Fees and timelines

few names at the same time.

Depending on the type of business, registration can cost • Costs. You can apply for up to four names during the
you anything between R125 and R475. You can register application process, but each name will cost your
your business within 24 hours if you aren’t reserving a around R50.

name first.

Business name versus trading name

Register online

You may have heard the term ‘trading as’, which means
You can use the CIPC website to register your company the business is using their ‘trade name’ instead of their
online. Once you’ve registered as a CIPC customer, you legal business name.

now have access to their transactional portal. Register your

business through the Companies – New Companies tab.

What’s the difference?

B e prepared. This is normally a good idea if you’ve

chosen the name of your company, but aren’t yet
A trading name is often more customer friendly. It doesn’t ready to launch.

need to have Pty Ltd after it, or other legal endings. For
example, McDonald’s is a trade name. The global fast-food There’s a time limit. You can register your name as
giant’s real legal business name is McDonald’s Corporation, a ‘defensive name’ and keep it safe until you’re
which doesn’t have quite the same ring to it.
ready to launch. This only lasts for two years. If you
But, if you’re planning to operate under a different name still aren’t ready to launch, you’ll need to re-register
from your legal business name, you’ll need to register your your defensive name.
trade name as well.

If you can’t come up with a name yourself, there are How do I make sure I get the company name I
business name generators to help you find a great name want?
for your business, here are three examples:

• Get a tax reference number. As soon as you launch

• Shopify
your business, you need to register your company
with SARS to get an income tax reference number. If
• Namelix
your business is too small you won’t pay tax, but you
must still be registered.

• Oberlo
• You have about 3 months to get sorted. You need
Using defensive names
to do this within 60 business days of starting your

business, whether you’re registering your company

Protect your name. You can also register a with CIPC or not.

‘defensive name’ to stop it from being used by

another business.

• Register with SARS. You can register to be a

taxpayer with SARS by completing an IT77 form at
at your nearest SARS branch. Keep in mind that if you have Unemployment Insurance Fund (UIF): This fund is for all

employees or are importing/exporting goods you could employees. How it works is, you’ll put money aside f rom

also be liable for other taxes, duties, levies and your employees’ salaries so if they ever f ind themselves

contributions such as: unemployed, they can receive short-term relief f rom the

fund.imported goods.

Value Added Tax (VAT): This is an indirect tax on the

For more information access SARS’s tax guide for small

consumption of goods and services. Vendors charge VAT

businesses here.

on the supply of goods and services and on imported

goods.

Wh en can I o p en a Business B kA
an ccount ?

Pay As You Earn (PAYE): This is an employee tax that is

deducted f rom their salary or wages and is treated as Once you’ve registered your business and you’ve been

advance payments of income tax.

running your start-up for a few months, you can apply for a

business bank account.

Customs: If you are importing products they will need to

What type of account you need and which documents to

pass through customs, you may also have to pay duties or

take when applying will depend on what type of business

taxes on the products.

you’re running?

Conf irm which documents you need to open a business

Excise duties and levies : You’ll need to pay excise duties

bank account by calling ahead to check. Most banks are

and levies on high-volume daily consumable products, as

looking for the following:

well as some non-essential or luxury items.

Skills Development Levy (SDL) : This is a levy that - Proof of CIPC registration: This can be a certif icate or a

employers must pay to encourage learning and group of documents depending on what type of business

development in South Af rica. The funds are used to you’re running.

develop and improve the skills of their employees.

- Identity documents: Current ID documents for you and

anyone else who needs access to the account.

When must I register a trademark?

- Proof of address: You’ll need a valid proof of address • How you do it: You can register your trademark with the
that’s less than three months old. You can use utility bills.

CIPC, who have the records of every trademark ever

registered in South Africa.

- Personal bank statements: The bank will also want three

months’ worth of personal bank statements to see how • When to do it: You should do this as soon as your
your business is doing and if money is coming in and business is registered, to prevent others from registering
going out.
your business name, logo or slogan as their trademarks.

• What happens next: Once registered the CIPC will then

What do I need to know about trademarks? give you a certificate of registration. This certificate gives
you ownership over the registered trademark and
• What it is: A trademark is a brand name, a slogan exclusive rights to use it.

or even a logo. You use a trademark to make your

business recognisable and stand out from your
competition.

How long does a trademark registration last?

• You’re protected for life. You can protect your
• What it means: When you register a trademark, trademark forever as long as you renew the
no one else can use it, or even use something that is registration every ten years and pay the renewal fee.
too similar, and if they do, you can take legal action

against them.

• You need to stay up-to-date. Trademarks that are

not re-registered will eventually fall away and
• Why you need it: If you don’t have a registered become available for someone else.

trademark and someone copies you or uses

something similar, the law might not go in your

favour.

Should I register my trademark overseas? What do I need to know about domain names
You may benefit from registering your trademark for websites?
overseas if you want to:

• Your name. A domain name is the name of your

website. These are also up-for-grabs, as you can’t
1. Stand out internationally. If you’re operating online your have two companies with the same web address.

products are likely to reach a global audience. You’ll want

this audience to recognise your branding, but you’ll also • Easy to remember. Keep in mind that you’ll also
want to be the only business operating under that want the catchiest and simplest version of your
branding.

business name to be the domain name, which

means you’ll need to register that name early on to
2. Protect yourself against counterfeiters. If you don’t avoid someone else taking it.

register your trademark overseas you could be vulnerable

to counterfeit-operators who will profit off your name and • Get started. You can register your domain name
reputation.

with multiple institutions, each one will have

different options available to you, and may even
3. Make sure your trademark isn’t compromised. Your offer services that run sections of your website for
trademark can be compromised through your you. You can find them all by Googling how to
manufacturing supply chain. For example, if you’re register a domain in South Africa?

manufacturing your product overseas, your manufacturer

or even their subcontractors could use your name and Should I register defensive domain names?
branding to profit from their relationship with you.

• Look to the future. A defensive name is essentially

On the other hand, if you’re manufacturing your product calling dibs on future names by registering them as
locally and only planning to sell it locally (for now), a local ‘defensive names’. If you know that you’re going to
trademark should do the trick until you start looking for need other website addresses or you’re going to
international growth opportunities.
expand your business in the future, you might want

 to register defensive domain names as well.

• Protect your IP. Another reason to register

defensive domain names is to protect your
intellectual property from copycats.

• Protect your profits. Other companies can use

similar website addresses to try and profit off your
business, brand and trademark. Not only will you
lose profits, but they can also cause reputational
damage with your customers.

GET STARTED

Now that you know everything there is to know

about how to register a business you can get
started. Launch your business, if it’s a success, if it
starts to grow, or even before you launch, register
your business and legitimise your start-up.

5: 21 Free (and almost f ree) tools for entrepreneurs

to start a business
Disclaimer: The web tools referred to in this section do not Communication & productivity tools for
belong to Old Mutual or are connected to Old Mutual in entrepreneurs

any manner. Using any of the tools mentioned are at any

reader’s own risk. 1 . Google’s G-Suite

Starting a business is all about f inding the delicate balance

Use G-Suite if you need email hosting for your business.

between keeping costs down while still getting your product

or solution to market.

How this f ree tool supports entrepreneurs:

Luckily, the Internet is a treasure trove of f ree, online and

low-cost tools and resources that are available for your The basic plan includes :

business. These tools save you time and help you to run your
• Gmail: G-Suite offers you an enhanced, ad-f ree
start-up smoothly and as you grow you can migrate to more
version of Gmail, offering your employees email
extensive packages that do come with a price-tag (but by
addresses with your business domain name.

then you’ll be able to afford the additional investment).

• Communication & productivity tools

• Google Calendar: Small businesses rely on Google

• Online marketing & sales tools

Calendar for scheduling calls with clients, setting due

• Website building tools for start-ups

dates and reminders for projects.

• Project management tools

• Online research tools

• Google Drive: This storage facility allows you to store,

• Online business training tools

access or share your f iles in one secure place.

• Business insights & inspiration tools

 • Google Docs and Google Sheets: These are text handling quotes and invoices.
documents and spreadsheets that you can create in
your browser. This tool enables employees to work
on a single document simultaneously.

How this tool helps your start-up:

All the Google products work seamlessly within the Google

“As a business owner, you need to focus on things that
ecosystem and with Microsoft Office and other third-party
really give you a competitive edge. You can’t afford to
programmes.

waste time worrying about your books. That’s where

affordable online accounting solutions come in,” says Nikki

also multiple editions available for as your

There are
Summers, Director, Sage One in East and West Africa.

business grows and you need more support.

“You can connect your staff with real-time and intuitive

Financial management & accounting software information. Up-to-the minute reporting means you’ll
for start-ups

always know exactly how your business is performing,

helping you to make informed decisions.

2. Sage Business Cloud Accounting

“By automating business processes, you can keep costs

Solid bookkeeping and keeping track of your finances can low, become better at managing cash flow and streamline
make or break your start-up. Luckily today’s start-ups don’t compliance,” she says.

need to rely on Excel spreadsheets.

Although this software isn’t free, Sage does offer a free trial
Affordable cloud accounting technology is available and and the prices are quite reasonable. They can be viewed
vital to help grow your business.

and compared here.

Sage Business Cloud Accounting is a cloud-based

accounting solution that can help your business by

Online marketing & sales tools for MailChimp also offers detailed analytics that help you:

entrepreneurs

a) See how many subscribers have opened your emails

3. MailChimp

b) Which links they clicked on

To grow your business and reach more people it’s a good

idea to set up a mailing list, create newsletters and send c) How many unsubscribed after receiving your email

automated emails to your customers.

d) These are all excellent data points that will help you
MailChimp is a one-stop shop for all your mass-email build better campaigns going forward.

needs. You can use this great tool to effectively market to

your audience from their inbox.

4. Hootsuite

How this tool enables entrepreneurs: Social media is a great (and free) tool that can help you
• MailChimp offers an easy-to-use and customisable build your brand. Keeping up with multiple daily posts is
programme, with many options to make your email difficult and time consuming though, which is where
campaigns unique to your business.

Hootsuite comes in.

• If you have less than 2000 email subscribers, you How this tool enables entrepreneurs:

can use MailChimp’s basic plan for free.

• Hootsuite is an application you can use to manage

your social media network channels.

• Once your subscriber base grows you can upgrade

to one of their other packages. View prices here.

•You can use it to post updates, read responses,

schedule messages and view statistics.

Hootsuite isn’t just for small start-ups. Many

 international brands like Coca-Cola and Sony Music Tools offered by HubSpot:

use Hootsuite to save them time when managing

• Free HubSpot: Everything you need to organise,
their social media marketing.

track, and build better relationships with leads and

customers.

Hootsuite offers a 30-day free trial. You can find prices

here.
• Marketing Hub: Marketing software that assists
businesses to grow traffic, convert more visitors into

5. HubSpot

leads, and run complete campaigns.

In today’s connected world, people want to be able to talk • Sales Hub: Sales software that is designed as a

to businesses, and get a quick response.

time-saving tool, helping business owners access

insights that support closing deals faster.

However, it’s almost impossible to stay on top of your

customer engagement, analytics and lead-development • Service Hub: Customer service software that assists

by yourself.
business owners to connect with customers.

Instead of wasting time trying to stay ahead of all of these Although not free, this software isn’t prohibitively

vital areas, you can use HubSpot to do it for you. expensive for start-ups and it can significantly help
your business growth if you utilise it. Find the prices

How this tool enables entrepreneurs:

here.

HubSpot offers analytics to help you improve your 6. Zoho CRM

marketing strategy. It’s an easy-to-use platform and

requires you to have only basic marketing experience When customers are happy, they tend to buy more and
under your belt.
stay loyal. A great tool to help you keep your customers
happy is a Customer Relationship Management (CRM)
platform.

Zoho CRM provides the personalised approach that will 7. Qlutch.com

keep your customers happy.

This easy-to-use application turns everyone into a great

How this tool enables entrepreneurs:

marketer. Qlutch.com helps you to organise your strategy,

campaign, goals and metrics so that you can achieve the
• Zoho CRM’s core function is management of
repeat results you need f rom every marketing campaign
contacts, leads and deals, but it can also help you
you invest time and resources into.

with automating workflows and providing reports

on deals in your sales pipeline.

How this tool enables entrepreneurs:

• This tool can automate your daily business • Qlutch.com offers almost 400 step-by-step plans

activities, track sales and engage customers on for your marketing activity to help you achieve
different platforms, so you can focus on growing repeatable success and saves you the time of
your business.

coming up with something new.

• You can integrate the platform with your other • The benef its of using Qlutch.com include detailed
tools like Microsoft Off ice, MailChimp, Google Apps how-to guides, designed specif ically to be used by
and cloud-based connectors.

business owners – not marketing gurus.

• This tool works well for a start-up, small business, • The following guides are on offer:

single entrepreneur or a large enterprise, which

o Create a launch strategy

means you won’t have to change to a new tool as

o Design a brand strategy

your business grows.

o Plan a marketing campaign

o Expand distribution channels

When starting out, Zoho CRM is f ree for up to three users

o Write a marketing plan

in your business. Once you’ve grown bigger, tiered rates

o Calculate marketing ROI.

apply; you can see the prices here.

This marketing platform is free if you’re working online, • Custom domain: Your website address will have
but if you want to download any of the plans and your business name in it.

resources, you’ll need to pay a fee every month. Access • Integrated with Google Maps: Google My Business
prices here.

links your phone number and Google Maps location

with your website, so your customers will know
where to find you.

Website building tools for start-ups

9. Wix
8. Google My Business

The beauty of Wix is that it offers you templates, so you

Today’s customers search for businesses online so having a don’t have to come up with an idea from scratch.

website is a must. However, a poorly designed, broken, The templates are interchangeable and have customisable
slow or uninformative website will chase potential clients options, so you can design exactly what you’re looking for
away just as fast as having no website at all.
in terms of your online presence.

How this tool empowers your start-up:

How this tool empowers your start-up:

Google My Business helps you to create a simple, • Hundreds of templates that help you to choose

streamlined website that looks great, in under ten -

from a large selection of designer made option s

minutes. This tool is free, easy to use and you can edit your

website from your computer or phone. Here are some of • User-friendly designs allow you to drag and drop
the benefits of using Google My Business:

pieces into your design. You can change, customise

or add anything to your website

• Mobile responsive: It’s important to have a website

that also works on mobile as many potential clients • You can create a professional online presence with
will be searching for a business like yours on their a custom domain name
phones.
 • This website tool also offers mobile responsive site • To improve your traffic on search engines like
options to ensure your website looks great on every Google, you can use a technique called SEO.
device.

WordPress is very SEO friendly, and you can even

add a plugin to improve your SEO ranking.

10. WordPress WordPress isn’t just for start-ups. Many top international
brands use WordPress including: Time Magazine,
WordPress started out as the go-to spot for bloggers, but Facebook, The New Yorker, Sony, Disney and The New York
has since grown into a powerful website builder and Times.
content management system.

The tool is easy-to-use and flexible enough to make your 11. Google Analytics

website unique and different.

Google Analytics is a free tool you can use to track the

How this tool empowers your start-up:

traffic to your website. It can tell you how many people

came to your website, where they came from, how long
• WordPress is free software. It’s free to download, they stayed and which pages they visited.

install, use and modify.

It can show you.

• This tool is easy to customise with thousands of

themes and plugins.

• Where your visitors click the most

• A lot of people using WordPress aren’t web • How many new visitors you have

designers or programmers; many users have no

website design experience at all and they can still • Which countries they’re coming from

create great websites using WordPress.

• When you start using SEO techniques, you can

 track how much traffic is coming to your pages and How this tool empowers entrepreneurs:

if your SEO is performing properly.

• Real-time updates ensure that your team are

How this tool empowers your start-up:

always on the ball

• You can pull powerful customisable reports that • You can easily add new tasks and assign them to
can tell you even more about the performance of your team members.

your website

• You can track any marketing campaign that is 13. Zoho Projects

driving traffic to your site

Zoho Projects is a project management software that

helps you manage your projects in a social way. It offers a
• Google Analytics shows you how effective your
project feed that gives you a quick overview of the latest
social media campaign is in driving traffic to your
activities from your team.

website.

How this tool empowers entrepreneurs:

Project management tools for entrepreneurs
• Zoho Projects offers a project calendar so that you
12. Trello

and your team members can easily see their tasks,

milestones, meetings and deadlines for the next
Trello is a free project management tool that helps you see month.

at a glance which projects are being worked on, how far

along projects are and who has been working on them.
• Keep track of how many hours you’re putting into
Trello lets you organise and prioritise your projects in a way each task, making it easier to bill your client.

that’s fun, flexible and rewarding. All data is stored

together and can be accessed from anywhere, at any time, • You can easily integrate Google Apps and
helping your teams to collaborate on projects.

Microsoft it project files.

 • Project tasks, task lists and subtasks help you and SurveyMonkey also offers reporting options to help
your team keep organised and ensure everyone you pull meaning out of all the data you’ve
delivers on their projects. collected.

Zoho Projects offers a 10-day free trial before you’ll need to Although the basic options are free, here are the prices for
start paying the subscription fees. Compare prices here.

the upgraded options.

Online research tools for start-ups

Online business training tools for

entrepreneurs

14. SurveyMonkey

15. MoneyVersity

SurveyMonkey is a web tool that helps you launch surveys

on the web.

W e’ve listed some software that will help your business,

but your personal finances may also need attention.

These can help you to conduct in-depth research about a

specific market, employee or customer feedback as well as MoneyVersity is a personal finance tool offered by Old
launch quick polls to help you make better, Mutual. It’s designed to help you make the most of your
customer-centric decisions.

money.

How this tool empowers your start-up:

How this tool empowers entrepreneurs:

• SurveyMonkey offers quality survey templates, so if

• MoneyVersity offers interesting and practical
you’re looking for a great survey covering a general
videos, calculators, infographics, articles and
topic, you can use their templates to save you time.

gamesto help you master your personal finances.

• The first level of SurveyMonkey is free, but if you

• This tool offers a variety of courses and topics to

need more options then opt for the paid editions.

 help you understand your finances better.
Coursera to upskill their employees, which is
You can use all these tools in your business, and something you can also look into as your business
they can help you work towards your dreams.
grows.

16. Coursera

17. Udemy

Coursera offers over 124 courses across 17 categories and is Udemy is another online course education site. It offers
the largest open online course education site in the world.
over 65 000 online video courses, with new additions every
It offers the option of taking a course for free, but you have month. Udemy also offers ongoing learning specifically for
to pay for the certificate at the end of the course.

businesses that you can offer your team.

How this tool empowers entrepreneurs: How this tool empowers entrepreneurs:

• The content is taught by industry experts and

• Although you may think only a newbie real-world practitioners, so there’s nothing
entrepreneur would need to take online courses, theoretical about the knowledge you and your team
the biggest secret to entrepreneurial success is will be learning.

ongoing learning.

• The courses cover a variety of topics including

• Each course is an interactive textbook with programming, development, business and design.
pre-recorded videos, quizzes and projects.

All of these can help improve your business and

your teams’ skills.

• You can connect with thousands of learners online

and discuss the course material and debate ideas.

Although not all the courses are free, Udemy frequently

has discount

sales, converting courses that could cost over
• There are also over 1 700 companies using R1 000, to R100.

Business insights & inspiration tools for 19. Brian Johnson

start-ups

You can learn to optimise every aspect of your life with the

18. Evan Carmichael

help of Brian Johnson’s website.

Evan Carmichael offers personal success and business tips He offers three f ree ‘PhilosophersNotes’ as eBooks to get

for entrepreneurs on his website. His site is f ree and offers you started and if you want to learn more you can sign up

eBooks to help you improve your skills and for the full experience.

self-development. You can also use these resources to

upskill your team.

How this tool empowers entrepreneurs:

• In the full experience you have access to Brian

How this tool empowers entrepreneurs:

Johnson’s coaching masterclasses to help optimise

yourself and your team, as well as thousands of

• Evan Carmichael’s website is a one-stop-shop for
summarised philosophies to help you reach your
all your self-development needs.

dreams.

• He has videos, resources, online quizzes, books and

• The paid for module also offers new videos, mp3s
more to help you achieve success.

and worksheets on a daily basis, with monthly

optimal living masterclasses.

• He not only shares his own thoughts and

resources, but has collected helpful tools f rom other

Although not everything is f ree, the cost of joining is low.

famous and successful entrepreneurs, which you
Find the prices at the bottom of this page here.
can use to keep striving towards success.

20. Blinkist

Blinkist offers you key action points f rom the world’s best

nonf iction books in text and audio.

In the show, Matt Brown interviews entrepreneurs and
The team at Blinkist summarises non-f iction books, which business leaders, asking them about their keys to success,
enables you to understand key insights in 15 minutes or their lessons learnt f rom failures and everything in
less.

between.

How this tool empowers entrepreneurs:

How this tool empowers entrepreneurs:

• You still gain the benef its of the book, without • You can watch or listen to these interviews with

having to spend days reading it.

prominent entrepreneurs and learn lessons that can

help you launch your start-up, put systems and

• The app is f ree to download and use, and gives you processes in place and eventually grow.

access to the daily selection.

• Even if these entrepreneurs aren’t in the same

To access the site’s full service and its features, you’ll need industry as you, you’ll still learn a lot f rom each
to pay for Blinkist Premium. This will allow you access to interview, as you listen to experienced
over 3 000+ book summaries in over 27 different entrepreneurs overcoming the same challenges you
categories, f rom politics to entrepreneurship and small face, and perhaps some you haven’t even
business.

considered yet.

A 7-day f ree trial is available to try out Blinkist Premium.

• Re-watch interviews as your business grows and

pick up insights that didn’t apply to you before.

These can be implemented in your business now to

21. The Matt Brown Show

help you get one step closer to success.

The Matt Brown Show is a f ree South Af rican podcast for

entrepreneurs.

6: Avoid these common start-up errors for

ultimate success
There are many reasons why businesses fail, and many • What many start-up owners do in this situation is

reasons why they succeed. But there are some situations discount their prices, believing they need to be the

that pretty much all start-ups will face at some point. cheapest option in order to beat their competitors.

Successfully navigate these three things, and your chances

of start-up success will radically improve.

• This quickly becomes a race to the bottom, with

everyone discounting to make sales. In these

Start-up Error 1: Not standing out f rom competitors

situations, it soon becomes too expensive to offer

the product or service and the company closes.

Most start-ups are launched in industries already f illed

with competitors. This is often because a lack of start-up
funds means entrepreneurs need to look for quick wins in
busy markets, but that’s not the only reason you’ll be The lesson: A good long-term strategy is important
facing competition. Even product and tech-based to make sure you really understand your customers
businesses that are doing something really new and and what they want and need. Loyalty is built when
cutting-edge will soon be copied.

you can provide them with something of value,

instead of just a cheaper option. This is key to
So, how does this impact start-up failure rates?
building a successful business.

• If you’re launching in what’s known as saturated or

over-traded markets, you’re competing against
YOUR ACTION PLAN:

The list is endless – and scary. And unless you’ve done an

MBA, it’s unlikely you tick all the boxes by yourself. This is

- Identify who you think your key customers are

completely normal, but it’s also where successful

- Hit the streets and start speaking to them: What

entrepreneurs stand out, because they recognise their

do they think of your concept? What would they

gaps and f ind ways to upskill themselves.

pay for it?

“I didn’t have a background in f inance, and so I

- Research your competitors through Google and by
left everything up to my bookkeeper. I didn’t even
speaking to their customers

know we weren’t paying PAYE. My business was in

danger because I had a big gap in my skills and a

- Get your solution into the market as quickly as
bookkeeper who took advantage of that.”
possible so that you can start testing it in real life.

The faster you know what needs to be tweaked - Kerryne Krause-Neufeldt, founder of I-Slices

based on market and customer feedback, the Manufacturing

higher your chances of success.

Luckily, Kerryne didn’t lose her business, but it was touch

Start-up Error 2: Not strengthening your business skills

and go. She persevered, brought her company back f rom

and know-how

the brink, and immediately did an Accounting for

Dummies course, followed by f inancial management

Consider all the skills early-stage entrepreneurs need:

workshops.

business strategy, f inancial management, negotiating with

suppliers, setting up distribution networks, marketing and

“It was time consuming, but worth it. It was the only way

sales, product and service delivery and operations, off ice

for me to be truly in control of my own business,” she says.

management and, as the company grows, staff

management.

60
 Next Steps

The lesson: Burn out is real. The good news is that

you’re not alone. There are networking groups, Now that you’ve studied the key areas you will need to
coaches and mentors that can help you cope with cover to build and launch your start-up, download your
the stress and loneliness of growing a venture. free tools here:

Support and balance are important in building a

successful business.
Link to business plan tool

Link to financial management tool

If you found this guide useful, download our Ultimate

ACTION PLAN:

YOUR Guide to Run Your Small Business like a Big Business and
- Join a networking group or business association.
Your Guide to Growing a Stronger Business.

- Your local chamber of commerce should be able to You can also access a comprehensive range of ‘how to’
point you towards a networking group in your area.
business articles designed to support you along every step
- There are many business groups on Facebook and of your start-up and growth journey on Old Mutual’s
LinkedIn.

website, www.oldmutual.co.za

- From a mentorship perspective, who is in your

circle who has more business experience than you?
Ask them if they’ll become your mentor.

- Most people are not only flattered to be asked, but

want to pay it forward as well – they remember how
tough their start-up years were.

Get in touch with us today to find out more about our

solutions and how to get the right tools for your business.

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