GETTING SELF-EMPLOYED
Have you ever thought of starting your own business? Many people today create their
own employment, since jobs in which you work for an employer, are scarce. Starting
your own business is not always easy, but with hard work, determination and dedication
and most important, good planning and knowledge of the business, the rewards in terms
of both income earned and job satisfaction can be great.
DO YOU HAVE WHAT IT TAKES?
Research shows that people who make a success of a small business, have a lot of ideas, a
strong sense of duty, are self-starters, can plan and organize, make decisions and solve
problems easily, can persevere despite setbacks, are self-disciplined, have a lot of energy
and can work hard, can tolerate frustration and stress, can take criticism and can network
with other people.
WHAT ARE THE ADVANTAGES AND DISADVANTAGES?
Advantages:
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It can be a source of income
Small businesses give you some more flexibility with regard to working hours, although
you must work very hard
Giving people the feeling of satisfaction that they created something out of nothing
Can be your own boss
Ability to work from the house
Chances for building up something that you can sell later or give you wealth if it succeedsall big businesses started small!
The money needed for a small business is not too much
Small firms often have exquisite products to offer
Remember the following:
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Since a small business is started from the beginning, it needs a lot of marketing
to become known.
Most people prefer to do business with an established business-your service
and product thus have to be excellent, to make name for yourself.
If start-up grants/loans cannot be paid back, it can have serious implications for
the owner-plan well and get advice.
It is sometimes difficult to get start-up money and interest is high.
Small businesses often deal only in a imited number of products and if the
demand goes down, the business can go bankrupt.
WHAT IS YOUR BUSINESS IDEA?
The first step in setting up your own business is to decide on what kind of business you
would like to have. You need to think of any service or product that you could sell in
your community. Ask yourself these questions:
 “What do people need and what do they find difficult to buy?”
 “What service do they require that are not being supplied by present business in
your area?”
 “What can I do better that existing businesses are doing?”
 “What raw materials do I have easy access to?”
You might find worthwhile ideas in newspapers and magazines or from franchisers
(people who have bought a right to sell a specific company’s goods or services in a
particular area), who have already tested viable ideas. Remember, you are your own
biggest source of ideas. An idea may result from your interest, experience, skills,
knowledge, raw materials available in your area and your exposure to other jobs and
businesses. Make a list of as many ideas as possible. Choose the one that suits your
abilities and resources, will make enough money for you to live on, and which will hold
fewer risks. Also make sure that you have proper knowledge of the business you want to
start. Make sure that whatever business you venture in, is what you enjoy most. To
obtain information and get ideas, you can obtain work in a similar business as the one
you want to start. After working a while in such a business, you will have an idea of what
is expected of you, what important factors to keep in mind and whether you really want
to start a business in that specific product/service. You need to ask yourself if you got
what it takes to start your particular business, for example, a shy and introverted person
do not necessarily want to work with people all the time, or a good artisan is not
necessarily a good salesperson.
Be well informed and obtain all the background information before you embark on
starting your own business.
YOUR BUSINESS PLAN
Your business plan is the singularly most important document you need to develop. You
will use it to apply for a loan, so spend sufficient time on it. Your business plan needs to
cover inter alia the following:
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Name and address of small business
Owner’s name of small business and contact details
Type of small business (closed corporation (cc) or Pty. Ltd)
Dated formed
Vision of small business
Products and/or services to be delivered (attach a marketing plan and feasibility
study)
Business site (is the location easily accessible by people)
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Resources required (attach financial start-up plan)
Raw materials and equipment (state how you will get these and how much it will
cost)
Profit plan (Attach a plan indicating how much goods you must make to make
sufficient profit.)
Activities with timeframes (You need to describe every activity you will do to get
the business up and running with deadlines)
REGISTRATION OF YOUR SMALL BUSINESS
Cipro can provide you with the necessary forms to register your small business and assist
you with legal matters.
The DTI Campus
77 Meintjies Street
Sunnyside
Pretoria
Private Bag X237
Pretoria
0001
Tel: 0861 84 33 84
www.thedti.gov.za
If you have employees working for you, you also need to register in terms of various
labour laws and adhere to the labour legislation. Please contact your nearest Labour
Centre in this regard-see the website www.labour.gov.za for contact details.
SUPPORT SERVICES
There are various organizations that can provide you with training on how to start your
own business as well as business support such as mentorship and start-up funds, like the
Small Enterprise Development Agencies (SEDAs) functioning under the Department of
Trade and Industry, the National Youth Development Agency, Ntsika Enterprises and
Khula Enterprise.
A copy of the Directory of Service Providers can be obtained from the Department of
Trade and Industry.
You can also contact the nearest Provincial Office of the Department of Labour to
provide you with information. The Career Counsellors of the Department of Labour offer
a career guidance programme to help you decide whether a small business is for you.
They can also refer you to organizations which can assist you with support services. The
contact details of the Labour Centres are on the website www.labour.gov.za.
Small Enterprise Development Agency (SEDA)
The Small Enterprise Development Agency (SEDA) also has list of SEDA branches that
could give assistance in the form of registration of your business, training, start-up funds
and general advice. The names and telephone numbers of SEDA branches are listed
below:
SEDA
SEDA Head Office
Call centre
E-mail:
Website
Tel 012 441 1000
0860 103 703
info@seda.org.za
htpp://www.seda.org.za
Mpumalanga
Eastern Cape
Northern Cape
KwaZulu Natal
Free State
North West
Western Cape
Limpopo
Tshwane
Tel 013 755 6046
Tel 040 635 0555
Tel 053 839 5700
Tel 031 277 9500
Tel 051 411 3820
Tel 014 592 3696
Tel 021 596 1300
Tel 015 297 4422
Tel 012 441 1177
Or
PROVINCE
LOCATION
EASTERN
CAPE
Provincial Office:
Bisho
East London
Queenstown
Port Elizabeth
Mthatha
Uitenhage
Provincial Office :
Bloemfontein
Welkom
Bloemfontein
FREE STATE
SEDA
TELEPHONE
040 635 0555
Amathole
Chris Hani
Nelson Mandela Metro
OR Tambo
Lejweleputswa
Mangaung
043 643 0565
045 838 6035
041 502 2400
047 531 5075
041 992 6513
051 411 3820
051 444 4267
057 3964777
051 447 3281
GAUTENG
KWAZULU
NATAL
LIMPOPO
Kroonstad
Sasolburg
Bethlehem
Trompsburg
Pretoria
Provincial Office :
Durban
New Castle
Port Shepstone
Pietermaritzburg
Kokstad
Durban
Ladysmith
Richards Bay
Provincial Office :
Polokwane
Polokwane
Waterberg
Sekhukhune
Tzaneen
Thohoyandou
MPUMALANGA Provincial Office :
Nelspruit
Bushbuckridge
Nelspruit
Secunda
Witbank
Malelane
NORTHERN
Provincial Office :
CAPE
Kimberley
Kimberley
Kuruman
Springbok
De Aar
Upington
NORTH WEST
Provincial Office :
Mafikeng
Rustenburg
Vryburg
Mafikeng
Brits
Klerksdorp
Fezile Dabi
Metsimaholo
Thabo Mafutsanyane
Ghariep
Tshwane
056 213 1809/06
016 974 2460
058 303 7162
051 713 0376/63
012 441 1100
031 277 9500
Amajuba
uGu
uMgungundlovu
Sisonke
eThekwini
uThukela
uThungulu
034 312 9096
039 684 0271
033 345 0574
039 727 1428
031 308 9900
036 631 3325
035 797 3711
015 297 4422
Capricorn
Modimolle
Sekhukhune
Mopani
Vhembe
015 290 8720
014 717 1568
015 307 1735
015 9621679/4284
013 755 6046/7
Buschbuckridge
Ehlanzeni
Gert Sibande
Nkangala
Nkomazi
013 799 1961
013 754 4380
017 634 4339
013 655 6970
013 790 1183
053 839 5711
Frances Baard
Kgalagadi
Namakwa
Pixley ka Seme
Siyanda
053 807 8060
053 714 3160
027 718 1850
053 632 7590/60
054 332 2822
014 592 3696
Bojanala West
Bophirima
Dr. Modiri Molema
Bojanala East
Southern District
014 592 3696/3769
053 927 0591/2
018 381 3915/6/7
012 252 0580/1
018 462 1376/0704
WESTERN
CAPE
Provincial Office :
Cape Town
Bellville
George
Stellenbosch
021 596 1300
Cape Town
Eden
Cape Winelands
021 949 2227
044 874 4770
021 883 9270
National Youth Development Agency
The National Youth Development Agency provides training in setting up a small
business, advice with developing business plans, general advice on small businesses and
start-up funds mainly to youth 16-35 years of age and women.
National Youth Development Agency (NYDA)
NYDA Head Office
E-mail
Website
Tel 011 651 7000
info@nyda.gov.za
htpp://www.youthportal.org.za
Eastern Cape
East London Youth Advisory Centre Tel 043 704 4600
Port Elizabeth Youth Advisory Centre
Tel 041 503 9100
Free State
Bloemfontein Youth Advisory Centre
Tel 051 411 9450
Gauteng
Johannesburg Youth Advisory Centre
Tshwane Youth Advisory Centre
Tel 011 834 7660
Tel 012 603 0559
KwaZulu Natal
Durban Youth Advisory Centre
Tel 031 327 9900
Limpopo
Polokwane Youth Advisory Centre Tel 015 294 0800
Mpumalanga
Nelspruit Youth Advisory Centre
Secunda Youth Advisory Centre
Witbank Youth Advisory Centre
Tel 013 756 0100
Tel 017 631 9500
Tel 013 656 6534
North West
Rustenburg Youth Advisory Centre Tel 014 591 9600
Northern Cape
Kimberley Youth Advisory Centre
Tel 053 807 1020
Western Cape
Cape Town Youth Advisory Centre Tel 021 415 040
YOUR BUSINESS PLAN
A business plan can be a great help if you need to borrow money from an organisation to
set up your business. A business plan means drawing up a detailed list of every aspect of
your proposed business venture. Your business plan must provide answers for questions
such as:
 What do you intend to do (the business idea)?
 How exactly do you intend to go about your various planned activities? (Write
down steps to reach your ultimate goal).
 When do you intend implementing each step of your programme?
 Why do you believe your idea can work?
 How committed are you to make it work?
 Who are going to be your customers/clients?
 Where are you intending to operate from (location)?
Your business plan will inform the organization you expect to give you a loan, about
what they are in for. It will also help you to be absolutely clear in your mind about your
logical course of action, what potential dangers might exist, and to be sure that your
business is well thought through and researched before you begin.
If there is a Small Enterprise Development Agency in your area, you can ask them for
assistance in drawing up your business plan. If your envisaged business involves
manufacturing, you should also indicate environmental and social impact on your
business plan (project proposal).
Your business plan should also contain details on the following:
THE IDEA
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What are you going to sell and to whom are you going to sell it? Why will people
support or buy from you – are you cheaper, better, closer to their homes, are you
open longer? Look for as many ideas as possible.
FEASIBILITY
To determine if your business is feasible (workable), ask yourself the following
questions:
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Can you start and run a business on the ideas you have?
Can you make the product or provide the service at a quality level acceptable to
your customers?
Can you find an easy way to sell your products or render your service?
How will you make your products you want to sell?
VIABILITY
Ask yourself this important question: “Will your business make a profit?” For you to be
able to provide an answer to this question you must have some idea of the:
Volume: How many products are you likely to sell or how many times will you render
your services each month?
Margin: This margin is the difference between the cost price and the selling price
(the profit you will make).
Expenses: Expenses are things like rent, wages (if there are people working for you),
transport, advertising, interest on loans, lease payments, etc.
MONEY NEEDED
Firstly you must determine how much money will come in each month, how much you
have to pay out and the shortage or surplus that is carried forward to the next month.
Keep in mind that money tends to go out of the business (to pay suppliers etc.) before it
comes in (from your customers).
You will always need cash (called capital) to start your business. This money may come
from:
 your own savings
 your family or friends (remember that if they give you money, they will probably
want a share of your profits)
 your suppliers who may lend you money (remember that you will have to pay
them back later)
 a bank or an organization supplying money to persons, who want to start their
own small business (a bank will want security, in other words some guarantee,
that you can pay them back).
RISKS
You also need to give an answer to the following questions: “What could go wrong in the
business?” “What can I do to ensure that it does not result in my business failing?”
Typical risks may include the following:
 starting with more credit (money on loan) than you can pay back
 discovering that the service you provide, costs more than people can pay for
 running out of cash
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customers you give credit to, do not pay you back
Risk management is one of the most important factors to consider to make your small
business sustainable. You need to manage the possible risks, by putting plans in place in
advance, to either come up with an alternative solution to problems or prevent risks from
occurring. List the risks and find solutions for them before you venture into your small
business.
SWOT ANALYSIS
A business plan should also include an analysis of the following aspects with regard to
your business.
 Strengths-what strengths do your business have, that can give you an edge on
other businesses
 Weaknesses-what weaknesses do your proposed business have that can be a risk
 Opportunities-what opportunities are there that you can make use of to benefit
your business
 Threats-the aspects that can ruin your small business
A SWOT analysis is critical for the success of your small business. By identifying
opportunities, you can for example identify new markets you can venture into, that other
businesses in the same field have not identified before, giving you the edge. Considering
your strengths, can help you to really think of the uniqueness of your product and/or
service, so that once again you have the edge over other competing businesses.
YOUR FINANCIAL PLAN
Your financial plan must give a clear picture of how much money you would need to be
started, what your expense will be, how much you will have to make before you make a
profit, available security, and the financial contribution that you can make. You will also
have to ask yourself if your business is going to be worth the risk and trouble if there is
no definite reasons to believe that there will be an improvement in the profit after the first
year. Keep in mind that you will also need to pay back the money you borrowed initially
to start your business. If money is borrowed from the bank or a money lending
organization, you should supply them with the following:
 a profit and loss statement
 a balance sheet
 cash flow projections
There are various organizations besides banks that can offer you financial assistance
through their different programmes such as
 Business Partners Limited, tel. 011) 480 8700
 National Youth Development Agency, tel. 011) 651 7000
Further information on money lending organizations can be obtained from
Khula Financial Enterprise
Tel. 011) 838 7638
Once all these issues are sorted out, you are ready to go on with the next important steps!
THE PREMISES, FURNITURE AND EQUIPMENT
First you will have to find suitable premises. It is worth finding out whether you can run
your business from your home. If you have a skill that is in demand and is suitable for
doing at home, consider how much it is likely to cost to set up whether you will be able to
start your own home industry for example doing needlework, taking care of babies and
small children during the day, starting your own garden and providing the community
with fresh fruits and vegetables etc. There are a number of advantages involved in this:
 You can choose the hours you work
 You need no money for commuting
 You can be involved in something you are good at that you enjoy.
 You need not pay rent for your office
Remember that the nature of your undertaking will determine your choice of premises.
For example, a small factory will be best situated in an industrial area, and a professional
service will be best situated in an office building. Consider aspects such as parking,
loading and off-loading if applicable, and so forth. When you lease a business premise,
study the contract carefully before you sign it.
Most of the time you will have to provide your own furniture and equipment depending
on your business needs.
In some areas, you have to liaise with your local authorities in order to have access to
suitable premises (land).
TRADE LICENCE
The next important step is to obtain a relevant trade license from your local municipality.
A trade license is coupled with specific premises and the authorities will first satisfy
themselves that the premises comply with health and other regulations. It should be kept
in mind that a trade license is not needed, if your business is a Closed Corporation (CC).
If this is the case, you only have to register it with the Registrar of Companies, tel. no.
(012) 310 9791.
PERSONNEL AND STOCK
Most small businesses are one-man enterprises, but if you need assistance, it is very
important that the people you employ are involved in the aims and goals of your business.
Remember that you will have to pay them a weekly or monthly salary.
If the nature of your business is for example trading of consumer goods, you must
arrange for stock deliveries. Trading stock can be purchased from manufacturers,
wholesalers, factories etc. It is vital to maintain a good stock-control system from the
start.
PUBLICITY
Publicity is very important in order for you to be successful. It is only when people know
about you that they can make use of your business. Publicity should therefore start
before opening day. You can use various media such as press advertising, pamphlets,
hand-outs in shopping centres, eye-catching notices and posters and so forth.
GOOD LUCK
WITH YOUR BUSINESS VENTURE AND
REMEMBER THE MOST IMPORTANT THING IS
TO GET PROPER TRAINING AND SKILLS
ADVICE BEFORE YOU START YOUR OWN
BUSINESS.