So, you want to start a business? Do you have all your ideas figured and product perfected?
But, what kind of business do you want to, who will you sell it to? How will you get your money? What will your business structure be?
These are some of the questions when birthing that new idea never pop up, right?
Here are 8 things you must do before launching your business | administrative tasks:
1. Business Registration
Now you need to know your business product for this one, we have five (5) types of business structures in South Africa.
· Sole Proprietorship – Owned by one person and runs it on his/her own. It is the simplest form of no-to-little legal implications. The business is you; you are the business. You as the owner assume all the business risks.
· Partnerships – a partnership is two (2) or more co-owners running the business together. Everyone is liable for debts in this type of entity.
· Proprietary Limited Company (Private Company) – this entity is separate from the owner, it has its own legal responsibility, tax responsibilities and you cannot offer shares to the public.
· Non – Profit Company – this is an entity set up for public benefit or purposes relating to a certain social, communal cause – all the profits are set up to promote the companies cause.
These are the popular four (4), please visit CIPC for a wider range of entities. After deciding on the type of entity, you need to head over to the CIPC website to register as a customer and load your customer account. Once you’ve done that you can reserve your name and register which costs about R180.00. Alternately hire a practitioner or company like TEG Business Solutions to do all that for you.
2. Open a Business Account
This might be stressful, especially if you starting the business from low to no funding.
It is important to get your books sorted as soon as you start operation, it essential that owners know how to manage their affairs now as they grow into those corporate giants. They are affordable business banking options from as little as R139 – R500 depending on your business estimated annual turnover, shop around to weigh up the best bank for your business.
3. Track Your Expenses
Now that you have a bank account you need to track your expenses, everything from data purchases, coffee meetings with clients, repairs of things, all of that is important for your tax submissions if your choice of entity has legal binding like your Private company, Non-Profit Company. You need to constantly track all these, it is vital. They are great software to help you with these like QuickBooks, Wave (which is difficult to use for South African users if you need a lot of this to be automated) or Hire a Virtual Assistant to do all your bookkeeping.
4. Create an Email for Your Business
You need to make sure your personal emails are separated from your business. This will help your server your business correspondence from the scam chancers as well. It doesn’t have to have a domain attached to it at first, especially starting with low to no funds it is okay to use pre-existing servers like Gmail, Outlook and later get a domain name. Just make sure it is professional.
5. Create Your Marketing Plan
You need to have an idea of how you will get your product to people, how you will sell it, no matter the business type. You need it. This will be easier if you have already created your customer avatar at the idea conception stage. Your Marketing plan can include starting a blog or YouTube channel, will you be making use of the more traditional methods, are you going to use social media, YouTube ads or Facebook Ads. Briefly map out how you are going to take your business, products and sell to people.
6. Create a Website
You need a place to house your content, or even sell your products. Social Media is great but it is not your website. Start with free websites if you need to or a landing page integrated to your social media at first. If you have the funds to hire a web design, you can book a consultancy TNP Communications to help you create your amazing website.
7. Trademarking, Patent and Protecting your business
This is very depended on the type of business and if your business has a product that is very unique and patent worthy. Trademarking and Patent can cost a bit. From hiring a lawyer or professional practitioner to registering with CIPC or in the international registry. So, make sure it is worth it.
8. Your Business Office Essential – for Administration
You need some business space or place of operations, if you are starting in your home you still need these administrative essentials. Make sure to check with your ward/area policies if your business is permitted to operate in that area, this is very important for a business that use loud machinery and things similar to that. You could potentially get into legal problems if you are not mindful of such things. You will need at least these:
· Table & Chair
· Computer
· Internet connection (router, data)
· Software (target at your type of business)
· Telephone/Cell phone connection (VoIP Pbx)
· Printer
· Notice Board
· Stationery
If you are still uncertain of the type of business, don’t stress much about it. If your business is structured and made in such a way that growth can be obtained (which should be all business) you can start as a sole trader or partnership and move to a private or public entity. just make sure all your administrative tasks are done before launch day.
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