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Start, run and grow your business with Bongi Nxumalo
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Presented by : Bonginkosi Nxumalo
You are your own boss and do not have to answer to any “dictator”.
Increased flexibility in working hours and work tasks. You can choose when and how to do things.
You benefit from all your good work. All profits are for your pocket, not someone else.
The sky is the limit. If successful your earnings could make your current salary look insignificant
You get to do something you enjoy.
You get the chance to employ others and improve their lives.
Reasons To Start a Business
Nine out of ten new businesses do not last five
years.
The first year of business can result in no or very
little income as you build up your customer base.
No secure salary at the end of each month.
Finding finance to setup your business is
extremely challenging.
Your business becomes your life.
If things go wrong you may lose everything.
If you start off on your own you have to do
everything, sales, accounts, buying, production,
admin etc. Chances are that some of this will be a
pain in the neck – are you ready for that?
Do you have all the skills that are required? Are
you able to sell, do your accounting books each
month, meet government requirements on red
tape, make your product?
Reasons Not To Start a Business
Is business ownership right for you?
Do you have a choice?
Will People buy what you want to sell?
Does the idea suit your personality and interests?
Self‐assessment questions:
Are you a self‐starter?
Can you work long hours?
How will the business affect your family?
getting Started
An “entrepreneur” is a person who starts his or her own business
Willing to take calculated risks (not a gambler).
Prepared to move out of any comfort zones.
Able to problem solve using logic, intuition and experience.
In most cases will need to be a “people” person.
Have plenty of self discipline – there is no boss to make you work.
Have a general understanding as to how the business world works.
Be able to self motivate – there will be many tough times
A startup:
Follow your own dream
Buying an existing business:
You will have current customers and a known track record of performance
Franchising:
Brand recognition reduces marketing costs
Business Options?
Will it be financially viable?
Do you have startup money to invest?
What will your monthly expenses be?
Is there a current need in the marketplace?
Who are you competing with?
Some Questions to also Ask
Different legal structures protect you in different ways and offer varying tax advantages:
Sole Proprietorships
General Partnerships and Joint Ventures
Private Company(pty)
Close Corporation(cc)
Choosing a Business Structure
A “sole proprietorship” is the establishment of a business by an individual; there is no legal entity that owns ands operates the business
The owner is personally responsible for all debts ands contracts
Profits are disclosed on the owner’s personal income tax return and he or she can deduct business losses
Sole Proprietorship
A “general partnership” is an agreement by two or more persons or entities to establish and operate a business
A written agreement should be prepared between the partners
Each partner discloses business profits in his or her personal tax return and deducts proportionate losses
A “joint venture” is a general partnership set up to make a profit on a one‐time basis
General Partnerships
This business entity is treated by law as a separate legal entity
The owners of a private company are shareholders
Owners of an interest in the corporation are called shareholders or stockholders
The Act restricts the number of shareholders in a private company to a maximum number of 50
Private Company((pty)ltd)
A close corporation (CC) is similar to a private company as it is a legal entity with its own legal personality
The owners of a close corporation are called members
The minimum number of members is 1 and the maximum number of members allowed is 10
Close Corporation(cc)
A “business plan” is a roadmap that describes where you’re going and how you’re going to get there
A guide to achieving your goals
A tool to spark investor interest
A document that helps employees understand the company mission
Business Plan
Description of your products and services
Market and industry analysis that demonstrates the need for your business
List of competitors, including their strengths and weaknesses
Marketing strategy (sales approach)
Management team and operations plan
Financial analysis: the investment needed
Key Elements of a Business Plan
Introducing the Beachhead strategy
The term comes from a military strategy, Meaning as you invade an enemy’s territory you need to focus on your strength and concentrate on winning a small border area( the Beachhead), which becomes your strong hold from which you advance to the rest of the territory.
Running A Business
Don’t put your eggs in one basket: Do not focus your whole attention to one main client
Know your enemy! : Get to know your competitors. Find out who they are and what they’re doing. There is an old saying: “keep your friends close and your enemies even closer!”.
Donʹt be afraid to sack clients or associates: If you have a client that pays late, always cuts you down on price, takes to much of your time and never appreciates what you do for them, then it’s probably worth telling them that your working relationship isn’t working for you
Immerse yourself in your market sector: To be successful in your chosen market sector you need gain as much knowledge about it as possible
Watch your cash flow: Always invoice quickly once a job is finished, don’t wait till the end of the month.
10 top tips for running a small business
Get your personality across in your marketing
materials: Personality builds emotional engagement
with your clients
Do what you do best!: Find your niche market and
become the best at it. If you try and be the best at
everything you’ll dilute your offering and your clients
will suffer because of it.
Collaborate: Collaborate with other businesses that
offer something that compliments your products or
services. This will make you much more desirable to
your clients.
Learn to say sorry!: We are all human and humans
make mistakes. So when you do make a mistake and it
effects your client, apologize and rectify what you did
wrong, by putting it right, with no fuss and as quickly
as possible. Go that extra mile to make it right. If you do
you are likely to have a client forever.
Enjoy what you do: Most of us will work for 8+
hours a day, 5+ days a week. That is a huge chunk of
your life. So why not enjoy it!? A good and happy
working environment is likely to be more productive
and proactive
Get Organized: To be successful in business you need to be organized. Organization will help you complete tasks and stay on top of things to be done.Follow up with larger group?
Keep Records : All successful businesses keep detailed records. By keeping detailed records, youʹll know where the business stands financially and what potential
challenges you could be facing.
Analyze Your Competition: Competition breeds the best results. To be successful, you canʹt be afraid to study and learn from your competitors
Understand the Risks and Rewards: The key to being successful is taking calculated risks to help your business grow. A good question to ask is ʺWhatʹs the downside?ʺ If you can answer this question, then you know what the worst‐case scenario is.
Be Creative: Always be looking for ways to improve your business and to make it stand out from the competition. Recognize that you donʹt know everything and be open to new ideas and new approaches to your business.
Growing a Small Business
Stay Focused: The old saying that ʺRome was not built in a dayʺ applies here. Just because you open a business doesnʹt mean that youʹre going to immediately start making money
Provide Great Service: There are many successful businesses that forget that providing great customer service is important
Promote Your Business: If you do not talk about your business nobody will
Be Consistent: Consistency is key component to making money in business. You have to consistently keep doing the things necessary to be successful day in and day out.
ConclusionStarting and running a successful business can be rewarding and challenging. Success requires focus, discipline and perseverance. However, success will not come over night ‐ it requires a long‐term focus and that you remain consistent in challenging environments.
Conclusion
Email: [email protected]: www.mkhatshwabd.co.zaTel: 012 771 2941Cell: 083 872 9767 or 071 607 7815
Add: 16 Gardens Square467 Hanny StreetPretoria Gardens0082