Welcome to Start-up

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

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.

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.

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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