2. Reasons To Start a
Business
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.
3. Reasons Not 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?
4. getting Started
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?
7. Business Options?
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
8. Some Questions to
also Ask
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?
9. Choosing a Business
Structure
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)
15. Key Elements of a
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
17. 10 top tips for running
a small 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.
19. Growing a Small
Business
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.