10 Steps to Starting a Small Business
Starting a business can be daunting. First you need to be sure your small business ideas are viable. Once you are convinced of your business idea you would need to decide on the type of business structure.
The type of business structure can influence the personal liability of business owners. Sole Proprietorships are an example of personal liability companies whereas a registered business will have limited liability to the value of the shareholders' investment in the entity.
These basic steps will help you with a foundation to your new business. Not all steps might be relevant, this is broad outline.
1) Do market research
It's great to have an idea you are inspired by however, do you know who else trades in your industry or who have already launched the same idea or product?
2) Write a business plan
A Business plan is a blueprint of the idea and how to execute it. These plans also assist in obtaining finance from a financial institution.
3) Budget and Forecast
Forecasting for the future is vital. Most new businesses fail within 2 years and many others don't make it past 5 years. Have you planned the success of your business?
4) Pricing strategy and Cost of goods sold
Pricing is one of the 4P's you really need to look at. Have your competitors priced lower? How will you be explaining your price for your products and services?
5) Choose a business structure
A structure for your business should be chosen. A registered business has continuity as shares can be sold to other people, whereas a sole proprietor's business is themself and therefore limited by life expectancy.
6) Ensure your Small business accounting is managed
Having your accounting system nailed down will mean you are on top of things and can make informed decisions based on accurate data. Remember you need to play an active part in your business.
7) Registering a business and other admin tasks
There is admin to do. Registering with SA Revenue Service, Companies Intellectual Property Commission, Department of Labour to mention a few. Make sure you keep records of all the communications and paperwork relating to your business. You are required to maintain records for 7 years should SA Revenue Service need to inspect.
8) Create a business website
Your website is your shopfront, who is your client, what do they like?
9) Upskill to keep your business relevant
Keep your team upskilled so they can be assets to your business and be part of the growth.
10) Relationship management
Managing relationships in business is essential. This builds a trusted network for you to access throughout your journey. Trusted relationships are vital.
Other tasks that would need to be attended to once forming your business are:
- Opening a business bank account
- Apply for licenses and permits
- Apply for your Tax Ids
- Apply for Employer Identification number EIN - also know as a PAYE number
- Small Business Loan - If you want to grow your business you might need to consider your options, running a business with no money available for cashflow is usually the number one reason businesses fail.
- Angel Investors might also be a source of capital to grow your business.
Do you need a Quote for our Tax and Accounting Services?
Contact our team via any of the following channels to get a proposal for your accounting and tax services:
Subscribe to our newsletters.
Disclaimer:
The views or opinions expressed on this site are solely those of the original authors and other contributors.
The material and information contained on this website is for general information purposes only.
This information is for general purposes only. Don't use this information for making business, legal and tax decisions without consulting a professional.
We do not make any express or implied representation, as to the completeness or accuracy of the information published.
Tax law changes regularly, and any tax information on this site might be outdated.
We are not responsible for any other websites that you may access through links on our website.
ZPA accepts no liability for any loss or damage arising from the use of any material on this site.
