Business
Start-Ups
Starting a business is no easy
endeavour….
If you :
•Create a solid plan
•Stay organised
•Evaluate your business
proposal realistically
Your chances of success
are considerably
improved…
6 characteristics of a successful
start-up….
1.
2.
3.
4.
5.
6.
Planning
Is it a viable idea?
Quality product or service
Resources
Correct legal structure
Do you have the traits of
an entrepreneur?
Planning
•Craft a solid business plan
•You need this document
to proceed
•It will be your blue print
for :
•Determining the
viability of your idea
•Your operating plan
•Your financial plan
Determining the viability of your idea
You have a great idea for a
new business venture…….
Now ask yourself two
questions:
1. Is there a gap in the
market?
2. Am I the right person to fill
that gap?
Marketing and Customers
Are you clear about what
level of sales to expect
from the venture?
Do you have research to
support your sales target?
Have you discussed sales
levels with potential
customers?
The Competition
Who or what is your
competition? How much of
the market do they own
already?
What is your competitive
advantage – is it your
pricing, niche product or
service?
Business Plan
•Document your research
findings and ideas in a
business plan
•It will :
•Summarise your ideas
•Enable you to present
your ideas to others
•Assist you in managing
your business once you
start trading
Business Plan
Broad layout of business plan:
•Strategy and goals, mission
statement
•Resources
•SWOT analysis
•Finances and Funding
•Marketing
•Legal and compliance
Vision, Goals and Motivation
Do you have a clear idea
of what you personally
want to achieve in business?
Do you have clear goals and
objectives to help you
achieve your vision?
Do you have the motivation
to achieve your vision?
Business Model
•Identify how you will
supply the business
product or service
•Identify the critical
success factors to enable
your venture to turn
opportunity into profit
•What is your business
model?
SWOT analysis
Document the
•Strengths
•Weaknesses,
•Opportunities,
•Threats
of your venture.
Resources
Be realistic about what
you can and can’t do
List the resources you will
need for the business
Carry out checks on
availability of resources
and finance
Funding
•Do you have enough working
capital?
•While sweat equity will make
your business more successful,
you will most likely need real
capital to get it started
•Ideally for the first eighteen
months you will need to be able
to cover both your living and
business expenses
Start Up Costs
•Prepare a start up costs
spreadsheet detailing
your initial cash
requirements and ongoing costs
•How long will it take for
you to generate a positive
cash flow?
Team and Skills
•Are you the right kind of
person to run your own
business?
•Do you have the right
team of people?
•Do you have the necessary
skills on your team – such
as financial, marketing,
technical and management
skills?
Alliances and collaboration
•Form alliances
•Set up relationships
with suppliers,
distributors and
professional advisers
Legal structure
•Choosing your trading vehicle is
an important matter
•Sole proprietor, partnership,
company or trust ?
•Each type of entity has different
legal and tax considerations and
certain advantages and
disadvantages
Taxation
Depending on which
entity you trade via,
different tax frameworks
will be applicable
Regulations
Do you know about and
understand the statutory
regulations affecting your
business idea?
Determine whether any
licences or permits are
required for your business and
how to obtain them
Financial Management
•A successful
entrepreneur needs to be
good with money
• (S)he needs to be
realistic about cash flow
and keep a clear head
when making decisions
affecting the business
Business and financial
controls
•Successful businesses use
accurate bookkeeping and
accounting systems,
including payroll and
regular management
accounts
•Tracking and managing
sales and income are
essential
Traits of an entrepreneur
•Not everyone wants to be an
entrepreneur and run their
own business
•Should you have decided to
take the leap, you will require
some specific characteristics
and skills to ensure success
Management effectiveness
Ask yourself the following questions:
•To what extent will your experience
in solving problems and making
decisions help in running your
business?
•Do you consider yourself a creative
thinker?
•Can you identify and develop
business opportunities?
•Do you ask for and value advice from
people with useful experience?
SME Incentives
•A variety of incentives
are made available to
SMME’s by the
Department of Trade and
Industry
•Investigate these
incentives , document
them in your business
plan
Summary:
Before setting out on your new
venture:
•Clarify your focus
•Document your research and
findings in a short, sharp concise
business plan
•Keep an “ideas” notebook
•Ensure you have the right
passion, skills and resources
•Know where you want to be and
how you are going to get there
•Obtain assistance from
professional advisers
•Consistently move forward
Presented by:
Name of presenter:
Position in firm:
Firm name:
Disclaimer- Whilst every care has been taken in
the compilation of this seminar, presentation
and handouts, no responsibility of any nature
whatsoever shall be accepted for any
inaccuracies, errors or omissions, nor for the
accuracy of any information contained in the
seminar handouts.