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Start-up is a website focused on entrepreneurs , featuring the latest articles authored by real entrepreneurs and leading experts in their field it is a one stop shop for all budding and established entrepreneurs. South African business owners are facing increasing governmental red tape and inefficient bureaucracy leaving you with almost zero time to focus on your business.

You can get all the facts and info that you need to survive in today's cutthroat business environment right here at Start-up.co.za

Pravin Gordan’s Budget

February 18th, 2010 admin

Yesterday was Pravin Gordan’s first budget as Finance Minister , facing a task task given the recession and challenges the country is facing we thought we would see what other bloggers are saying about Pravin Gordan’s budget:

The budget of a nation resigned to failure | The Wild Frontier

Gordhan pointed out in his speech that South Africa needs to compete with other economies if it is to grow, but his budget seems to prepare us for failure. Gordhan is confident that government is putting in place an industrial policy …

Budget speech: Pravin Gordhan on corruption | The Wild Frontier

From Pravin Gordhan’s budget speech, 17 February 2010 Measures to combat fraud and corruption A major site of both wastage and inefficiency is in our. … I am Ray Hartley, the editor of The Times, South Africa, a daily newspaper which was launched in June 2007 under the Sunday Times umbrella. I’m also the editor of Times LIVE. …

Gordhan Budget Speech: Education Budget gets R17bn Hike | My Cape Town

Delivering his maiden Budget Speech in the National Assembly, Gordhan said while government spending needed to be kept in check, education remained the number one priority in the country’s fiscus. The R2.7 billion funding is expected to assist … These include findings that South Africa’s numeracy and literacy levels for school children were unacceptably low despite a high level of spending in education over the past 15 years. Challenges within the system include poor …

SA aims to raise youth employment with wage subsidy

Furthermore, our bargaining arrangements push up entry-level wages, pricing out inexperienced work seekers,” Finance Minister Pravin Gordhan commented in his 2010/11 Budget speech. To that end, the Department of Labour was undertaking …

R17bn Budget hike for education – SouthAfrica.info

Education continues to receive the lion’s share of South Africa’s Budget, with Finance Minister Pravin Gordhan announcing an allocation of R165-billion to the Basic Education and Higher Education departments for 2010/11 – an increase of more than R17. … Delivering his maiden Budget speech in Parliament, Cape Town on Wednesday, Gordhan said that while government spending needed to be kept in check, education remained the number one priority in the country’s fiscus. …

By all accounts an uneventful budget speech with speech with nothing earth shattering , but that is exactly what the markets needed. However the challenges facing the Government are great and unless they are able to address these challenges Pravin Gordan will face even more challenging budgets in future years.

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Business Plan For A Restaurant

February 18th, 2010 admin

Most budding restaurateurs get excited with the hustle and bustle of the kitchen and the prospect of owning and running their own restaurant . Before the action and excitement of the kitchen begins any Gordon Ramsay wannabe must contend with the drudgery of business and financial planning.

Many new restaurants fail within their first year of opening  because the owners  overlook another important, albeit less exciting, portion of the business, and that is the finance and business planing part. Many fail to realize that a restaurant is after all a business, which requires careful planning. Here are a few pointers that any budding Gordon Ramsay should consider when drafting a business plan for his/her new establishment:

A restaurant’s business and financial plan is usually composed of eleven sections that cover the projected operations of a particular food service being developed.

1. Company Description – the business plan begins with an overview of the entire profile of the restaurant being developed. This section describes what business entity that will operate the particular restaurant. Necessary information such as the company’s founders, assets, type is stated in this section. Supplementary information is also stated such as the company’s goals and visions, the company’s identity, and so on. This section would also describe what kind of restaurant is being developed, as well as its location, size, general target market and other information will provide the identity of the restaurant.

2. Industry Analysis – this section provides a general overview of the restaurant industry. Careful research is needed for this section in order to provide accurate figures regarding the past trends as well as projected performance of the industry. This section gives justification as to why developing the restaurant is a worthwhile endeavor.

3. Products and Services – this section describes what the restaurant will offer. Here, the general theme of the menu will be described. This section will also provide the prospective general production scheme, stating how the food will be prepared and how other necessary measures in the production would be carried out. The manner upon which the service will be delivered will be described here as well.

4. Market Analysis – this section describes the targeted market. This will provide the profiles of the projected customers, as well as the location where they will be coming from. This section will also include a description of the observed trends in the market, such as the population growth, and other factors that might affect the restaurant’s operations.

5. The Competition – this section describes the potential competitors’ profiles. Other restaurants within the area will be described. The particular restaurants that have the same target market will then be discussed furthermore. The planned competitive strategy will then be described, stating how the planned restaurant will be different from the existing ones.

6. Marketing Plans and Sales Strategies – this section the plan of action to make the restaurant thrive. A description of how the market will be penetrated will be provided here. This section will also state the channels that will be tapped for advertising and generating awareness of the restaurant. The budget allotted for the marketing strategy will also be stated.

7. Operations – this part will give the details of the operating scheme. This section will describe the restaurant’s facilities and equipment. The hours of operation as well as the projected holidays will be stated as well. The employee training and other aspects of human resource management will be described. The systems and controls, food production, and other services will be expounded.

8. Management and Organization – this section will give the profiles of the managing arm of the restaurant as well as its ownership. The primary employees and key managers will be described here as well as its board of directors.  The compensation and incentive scheme will be explained. The management style and structure will be further expounded.

9. Long Term Development and Exit Plans – this section will provide the goals, strategies, and milestones of the restaurant. This will also predict possibilities of expansion. Risks will be evaluated.

10. Financial Data and Projections – this section will provide the current information about the company’s assets at the beginning of the restaurant’s development. It will also forecast projected figures in sales, expenses, profits and so on.

11. Appendices – this will give the actual data being described in the body of the business plan. The actual menu, financial statements, declaration of assets and other important information will be included here.

Having a restaurant doesn’t only entail work in the kitchen or out on the frontline , a large component of the work will focus on boring details like business plans , financial budgets etc.  A restaurant is primarily a business, and the business aspect of its operations should also be emphasized if you are to succeed with your new venture.

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Business Planning News Stories

January 15th, 2010 admin

Here is a round-up of some of this weeks most popular news stories , blog posts and online news content featuring business planning. You can’t get enough information when it comes to writing your business plan , so I hope you enjoy these links and find them useful.

The first link is features an article by Tim Berry one of the leading gurus on the subject of business planning ,

Baby, Bathwater, and Business Planning

Real business planning doesn’t lock you in over the long term. Quite the contrary, it sets directions and priorities, and concrete steps, and gives you something you can track and manage. It gives you more flexibility, not less. …

How to Avoid Being Unsuccessful Entrepreneur: Business Planning …

Unplanned entrepreneur: they have no plan to execute or the next goal to achieve, they do not have disaster management for disaster situation like recession. Are you one of them? The first step to start a business is making a business …

A Business Plan for your Startup

A business plan, in its simplest form, defines where you want your startup to be within a certain period of time and how you plan on getting there. A business plan is as important for launching your startup as blueprints are for …

Business Planning | Solopreneurs: Strategy Change is the Solution …

Solopreneurs: Strategy Change is the Solution!: There have been lots of new business lessons that the puppy has taught me over the last week, but none as big as tenacity. What the puppy wants the puppy will.

Free Introduction to Business Planning | Roundpeg | Small Business …

Would you set out on a long trip, without a map? Of course not. The same is true for your business. You need a Business Map, and that map is your.

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Who Is Your Target Market?

January 15th, 2010 admin

Solid sales is the objective of any SME whether it is a start-up or an existing operation. Many factors play a role in driving sales, but the crucial ones are product , price , place and promotion. These  factors help define your target market and focus all of your marketing and sales activities.

Your efforts are wasted if you are unable to define your target market.  It is crucial to driving sales and  once you know who your market is the other marketing activities fall into place. Your target market or niche market consists of customers who are happy to buy products that that you market because your value proposition satisfies their needs at a reasonable price.

Small business owners you shouldn’t fear competition from larger  corporates as they market  products and services across a considering a wider market  spectrum. As a SME you are able to identify and target profitable niche markets that fall under the radar of the larger corporate firms.

Understanding  your target market and their needs requires in depth market knowledge , which you are able to obtain from market research as well as  from being a player in the market.  Knowing your target market can be a key competitive factor and enables you to market products more effectively than competitors who are operating blindly.

Utilising this knowledge enables you to segment your target market more effectively. Market segmentation needs to be conducted in a manner that is consistent with your overall marketing objectives and marketing plan. You can segment your market according to age , gender , firm size , region  LSM groupings etc.

Once you have identified your target market and segmented the market you will be able to develop a value proposition that you can successfully present to your target market and generate sales. You should also develop knowledge of competitors and how their products and services meets the kneeds of your target market. It is important to not knock your competitors value proposition as this likely backfire on you. Instead focus on you value proposition and how it satisfies the needs of your target market.

The advent of the internet has made it easier to target niche markets that weren’t previously available to marketers. Using search engines and pay per click advertising marketers are able to target specific search phrases and buying keywords. Online marketing is lucrative channel to exploit , but requires extensive knowledge so you should consider using the services of a reputable online marketer.

Once you have identified your target market and know who you customers are , you are able to develop  marketing channels like direct marketing , online marketing or retail outlets to service those markets and generate profitable sales for your business.

This is an ongoing process and requires constant attention , the demographics of your target market are constantly changing and you need  to adapt your marketing efforts to change with the market. This requires constant effort and you obtain market information by attanding relevant trade shows , marketing conference and seminars , reading industry related journal and most importantly by talking to your customers.

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Finding Business Finance

January 13th, 2010 admin

One of the most crucial and difficult steps once you have decided to embark on a new venture and drafted a business plan is the issue of securing finance. Get this wrong from the onset and you will probably fail in your new business venture. Securing the right finance for you and your business is vital to your long term success.

What finance options are available to prospective South African entrepreneurs and business owners?

The easiest and cheapest source of finance is to use your own capital , this can be savings , investments , retirement savings. Few individuals are fortunate enough to be able  to finance a new venture entirely on their own and in most instances in is probably not the best course to follow in any event. Most finance providers will require that you invest some of your own capital usually between 10 and 30% in the new venture.

Many prospective business owners also approach friends and family members to assist in financing a business venture. This is a risky approach as often all parties concerned don’t fully understand the risk factors involved and in the event of the business failing these relationships will be ruined as well.

Most business owners seeking finance typically use finance provided by financial institutions like banks and development finance institutions like the IDC or Business Partners. For a detailed listing of institutions please consult our resources page. Financial institutions would require that you present a business plan detailing whe proposed business and also require financial deatails from you and your partners. The application will be subject to the financial institutions standard credit vetting procedures and dependant on the financial viability of the business they will approve/decline the financing. In addition the financial institution could make the loan dependant on meeting additional requirements , like taking out life insurance etc.

It is highly likely that the financial institutions will require that you provide a significant cash investment of your own typically in the range of 10 to 30% of the toatal amount. In instances where you are running your business through a structure that provide limited liability like a close corporation or a private company they will also require that you stand personal surety for the loan amount.

Repayments are structured like any loan amount usually over a period of five years and it is important that you factor these repayments in your financial projections that are incorporated into your business plan.

Another source of new business funding is venture capital finance , venture capital firms usually take a equity stake in a new venture and when the business reaches a more mature phase they usually exit the business by selling their stake either  back to the founders or via an IPO on the market , if the intention is to list the business. This is more relevant for significantly larger businesses that require investments into the tens of millions of Rands.

The funding source will play an important role in the overall cash flow of the business as well as determining the business format. Financial institutions and venture capital firms will be comfortable investing in a business that is audited annually , they will also require more stringent accounting procedures and policies. Consult an expert on business finance as your initial funding choice will be with you and your business for a long time.

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Why You Need A Business Plan?

January 11th, 2010 admin

You can probably get by without a business plan , but I wouldn’t advise that you try. Having a solid well thought out business plan provides the entrepreneur with several clear advantages in the competitive business environment. Listed below are some of the benefits of having a business plan:

  • Business planning forces you to set goals , without goal setting you are doomed to fail. The business planning process ensures that the goals are achievable and realistic.


  • Business planning requires that you take into account the business landscape that you operate in  , who your competitors , suppliers etc are. A thorough investigation of the regulatory framework will also enable you to get a better understanding of the business landscape.


  • Requires you to focus on your strengths and weaknesses and how these interact and influence the business landscape and your long term goals.


  • Requires you to focus on alternative scenarios and develop action plans to meet changing scenarios – the business landscape is dynamic and change is the only constant. Successful businesses are those that can adapt to the dynamic environment. Business planning forces the entrepreneur to think about possible changes and how to manage these changes whether they constitute a threat or a possible opportunity.


  • A Business Plan enables others in the business to understand the vision and goals of the owners and management – It ensures that all players are on the same page.


  • A Business Plan is required if you need to raise finance , whether it is from financial institutions like banks or venture capital finance. Even if you intend raising capital from family and friends a well thought out Business Plan makes the process easier and will also provide comfort to your investors.


  • A Business Plan can be a measurement and evaluation tool , setting clear cut objectives and budgets enables you to measure and control business activities and makes it easier to rectify and divergences.


  • It requires that you apply your mind and think logically and analytically about the business , this results in better decisions and forces you to think of issues that you might overlook.


  • Helps you comply with certain statutory requirements like employment equity , if it applies to your business or is likely to apply to your business at some point in the future, you should incorporate it into your Business Plan.


  • A well drafted Business Plan provides you with a better understanding of the viability the proposed business , if after conducting all the research and planning processes you begin to realise that it is not such a great business, you can pull the plug then and there saving yourself a great deal of money.


  • A Business Plan is a dynamic tool and needs to be continually reworked as conditions change thereby forcing you to continually evaluate your business and the environment. A Business Plan should never be forgotten and filed once you have all the funding and your business is underway. The planning process is something that all successful entrepreneurs continuously do.

Many owners of SMEs mistakenly believe that their business are too small to need a Business Plan , the question they need to ask is whether their business is too small to fail. Business Planning significantly reduces the risk of failuire and all succesfull entrpreneurs are succesfull planners.

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Seven Reasons To Have A Business Website

January 9th, 2010 admin

Even the smallest business needs a website in today’s competitive business environment , with more South African’s getting access to the internet through broadband connections a website is seen as a must have rather than just a nice to have. Listed below are some of the top reasons for having a business website:

  • You can sell your products online- The ability to sell your products online, typically using an online shopping cart or eBay listing, will greatly increase your sales. Your products will be seen in more then one place, giving you greater exposure and reach. Plus, the overhead of displaying your products in an online shopping cart is the costs in a conventional bricks and mortar store.
  • It enables you to provide  information that you would not normally be able too- You do not want to clutter your physical store with posters that talk about the history of your business, your mission, policies, etc. If your physical store looks cluttered, then it will hurt your business. A website can be organized in a neat manner with any and all the above information you want displayed. Plus, providing information about your business will make the customer feel more informed, which in turn will make them more likely to do business with you. All the information that you provide on your website is indexed by search engines like Google and will bring more visitors to your business website.
  • A website is globally accessible, and is one of the only advertising media that is available to anyone in the world, 24 hours a day? You may gain clientele that you would not normally be able to market too with a bricks and mortar only operation.
  • Websites are affordable , initially it will cost you some money to design  and setup your website, but once your website is up, it will remain up as long as you keep paying for hosting and your annual domain registration fees. The cost of registering a domain is about R70 per year and you can host a small website for R50 per month , compare that to current advertising costs and a business website becomes more compelling.
  • Clients will be able to view your store and contact you 24 hours a day. You business probably has set hours in during which you trade. Once you close your doors for the day, no other customer can come in and make a purchase. With a website your products are available for purchase 24 hours a day.
  • Minimize customer problems and questions- Again, this goes back to the information situation. If a client has a problem or question about your products or services, instead of tying up your phone line and time, they can go online and read the information that you have provided, or at least direct them to a website that can provide more information
  • Your competitors probably have websites and you can’t afford to miss out.
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Business Formats for South African SMEs

December 9th, 2007 admin

There are basically 4 business formats that you as an entrepreneur can use to trade under , each has its advantages and disadvantages , choosing the right business structure will largely depend on your own particular circumstances and the scale of the business that you intend operating. Here is a brief summary of each of the business formats available to South African entrepreneurs:

Sole Proprietor – you trade in your personal capacity and the business does not have a separate legal identity of its own. Assets and liabilities are not separated and any debts of the business are effectively your debts as well.

Partnership – if there are 2 or more owners you can operate as a partnership. Legally it is the same as trading a a sole proprietor the only major difference is that in most cases with a partnership there is a formal partnership agreement. In all other aspects it is the same as a sole proprietorship and there is no division between the assets and liabilities of the owners and those of the partnership , which is major disadvantage of both business formats.

Close Corporation (CC)

This is probably the most popular format for SMEs , the owners of a CC are referred to as the members and only natural persons can be members of a CC. A CC has a separate legal identity and the assets of the CC and those of its members are separate. Members of the CC enjoy limited liability , one of the major advantages of this format. Another favorable consideration is the relatively low cost and the fact that a CC is not subject to an annual audit. Close corporations are registered and managed in terms of the Close Corporations Act.

Private Company (Pty) Ltd

A private company or (Pty) Ltd is owned by its shareholders , who can be natural persons , companies and even close corporations. Like a CC the (Pty) Ltd has a separate legal identity and the shareholders enjoy the benefits of limited liability. The registration costs are higher than those of a CC and the annual accounting fees are also substantially higher because a (Pty) Ltd has to be audited by a registered auditor. It is generally easier for a (Pty) Ltd to obtain finance because of this and certain government tenders often require that the business be audited. Private companies are registered and managed in terms of the Companies Act.

Selecting the right business format for your business will depend on your personal circumstances and the growth and fund needs of your business. To get the best advice in this regard you should consult with a qualified legal person , accountant or business consultant.

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Starting Your Own Business

October 29th, 2007 admin

In recent times, retrenchments and downsizing by large corporations businesses has been on the increase. Coupled with Government demands for Employment Equity and BEE it becomes clear that working for a large a large corporation is not as secure as it once was. If you are a satisfactory employee, then you should not have anything to worry about, right? Wrong. In the last couple of years, many hard working employees have been laid off for one reason or another.

Whatever the case may be, good economic times, a good job performance, and being employed by a large corporation or business does not ensure that you have a secure job. The only sure what to never get retrenched is to be the boss and to be the boss, you have to start your own business.

Now before you get excited and quit your job, you must know that the majority of new start-up businesses fail within the first year of business. This is not meant to scare you, but rather prepare you so that you will not make the same mistakes that the others have made in the past. The number one reason why businesses fail is simply because they do not take the time and effort it takes to properly start and plan a business. They run out of patience and jump ahead of themselves. To start a healthy business, you will have to learn from these other’s mistakes, and do it correctly.

You may have some fears when it comes to starting a business and with good reason as starting a business is a major life change. With a normal 9 to 5 job, you are able to leave at 5 o’clock and not think about work again until you arrive in the morning. This is not the case when you are self-employed and more often than not you will only leave once the job is done. You will soon find that your are much harder on yourself than any boss can ever be.

Now, there are many ways you can learn the process of setting up your own business. This website being one as well as the many business startup books available at your local business store . These books, provided that they are not “get rich quick” schemes, will provide you the detailed information that you need to start a business properly. Alternatively, you may want to talk with a person experienced in this field, whether it be another successful business owner, or even discuss it with your bank. You would be surprised at the type of knowledge they would have and the willingness they will have in helping you as well.

It is also important to remember that businesses are not successful overnight. In fact, it may take many years for you to build up your business until it is profitable. You will want to make sure that you have enough income to not only support the business until it is successful, but also have enough to support yourself and your family. This may mean that you will have to keep your day job for awhile.

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