It’s a New Year and you’ve finally decided to take the plunge and start your own business, but before you hand in your resignation, here are few pointers to get you off on the right foot!
Do Your Homework! – It’s what got you through school and it will get you through the initial hurdles of business ownership ☺. Seriously though, this is the single most important activity you should undertake, before plunging headlong into business ownership. The more information you have about the type of business venture you plan to undertake the better.
Part time or Full time? – This might appear to be a strange choice to be making, but very often, testing your new business concept on a smaller scale could highlight flaws in your thinking, which will often be chaper to fix as a small part time business.
Buying or Starting New? – Often the choice comes down to affordability, existing well established businesses do sell at significantly higher prices than new start up businesses. Regardless of which you choose, hire a professional to go over the numbers with you, just to make sure everything is in order.
Business Type? – Believe it or not there are more than one type of business entity that might be suitable for your particular choise of business! While a private company ((Pty) Ltd), might be the most popular, your particular business might benefit being registered as one of the other entities that are available (Trust, Sole Proprietor, Inc. or Ltd). It’s best to talk to a professional as they will guide you in this choice.
Income Tax – While it’s true that your business only becomes liable for Income Tax when you start making a profit, it is always important to ensure you have structured your business in such a manner from the outset, that it minimises this liability when it becomes due.
Business Finance – Definitely one of the hottest topics encountered by all entrepreneurs! Do you self fund, do you get bank finance, are there other sources of funding? The list of possibilities here are endless as each entrepreneurs circumstances are different. What you need to keep in mind however, when approaching funders, is be very clear how much money you need, what it is intended for and how you intend paying it back?
While the above points are clearly not all you need to think about, it will get you off to a good start.
At Phezulu we do more than just coach our clients on small business ownership with, we are your one stop SME shop, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration, Payroll and Mentoring.
For more information please visit our website www.phezulu.net or give me a call on 010 003 8558