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Starting an Online Shop has never been easier in SA

Online shopping is one of the fastest growing markets in the world, including South Africa. Here’s exactly why and how you should set up an online shop to grow your business in 2017.

online shop

It all started 23 years ago with one Sting CD.

A man named Phil bought an album from NetMarket in Philadelphia on the 11th of August 1994, marking which seems like the first online purchase in human history.

The New York Times had the perfect headline, “Attention Shoppers: Internet Is Open”. Almost two decades later and ecommerce business is booming.

By the end of this year, consumers worldwide will spend about $1.9 trillion on online purchases, according to eMarketer.com.

Online Shopping is the Future.

The obstacles that stopped multiple online shopping sprees from following that one momentous album sale are problems of yesteryear today.

Almost half of the world’s Internet users will be making online purchases by 2018, says Statista.

More people have access to the internet; internet costs are dropping; reputable brands have online stores; payment are easier and more secure; and online shops can often provide better prices, instant customer reviews and free delivery to your doorstep.

As a result, Ecommerce is one of the fastest growing industries in the world according to Ready Cloud, a company that specialises in e-commerce software.

South Africa’s rapidly growing E-commerce Industry.

In South Africa the current number of online shoppers is not nearly as impressive as the rapid growth rates.

South Africa’s online spending is expected to increase by a whopping 43% by 2018, according to Ipsos’s 3rd annual study on global ecommerce figures (a study commissioned by PayPal). That amounts to a grand total of R53 billion.

“The growth rate in South Africa is still exceptionally high, coming off a very low base”, explains Arthur Goldstuck, the managing director of the World Wide Worx (a research company focused on South African business tech).

“This indicates that there is tremendous potential in this market for new business models and even underexposed product categories,” he reveals in his interview with Moneyweb.

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How to make the most of E-commerce Opportunities in SA.

South African entrepreneurs need to up their game in order to meet the level of ecommerce innovation in established Western markets, says Goldstuck.

Company Partner’s Branding expert, Daniel Coetzee (see portfolio), agrees.

“A lack of knowledge, hampers the level of ecommerce in SA,” Coetzee says.

Coetzee is part of a team of experts at Company Partners who assist Start-Ups with legal documentation and business growth.

“Most people have heard of the concept. They’ve heard of the possibility of turning their website into an online store, but they stay away due to lack of know-how.”

How to get started with your Online Shop.

Consequently Coetzee recently launched a turnkey ecommerce service at Company Partners to assist struggling SA entrepreneurs with entering the ecommerce market.

“We offer the foundation and education to empower you to start selling your goods online,” says Coetzee.

This cost-effective service includes a website and an online shop setup, 3 hours of support and a series of online video tutorials.

“The opportunities of selling online are limited to yourself.” With an online shop you can cater to clients outside your usual sphere of influence.

“The best part is, it’s a 24 /7 trading platform. Allowing you to generate more revenue in a day without having to keep those extended office hours.”

To learn more about this ecommerce service, simply just click HERE. A whole new generations of shoppers are waiting for you.

Ecommerce website

The Importance Of Your Domain Name

It does not matter in what type of business line you are in, being close to your customers is always essential. This is mostly a very important decision to make for online businesses, but even stand-alone businesses can benefit from it. Having the right domain name has proved to be one of the things that promotes the success of your business.

Domain Name

Once again location plays an important role in your business. It is no longer just for stand-alone businesses an important decision. Online businesses should also be very careful when they choose a domain name and a website host.

The first decision will be to choose which domain you will use. Once you have established this, you have almost completed the hardest part of the entire proses. It has recently been announced that South Africa will be receiving quite a lot of new internet domain names. For international companies in South Africa, it will still be best to make use of the most common domain name, ‘.com’. It is universally used for companies that do business all over the world.

The new domain name that companies in South Africa will be able to use include the following:
 .africa
 .joburg
 .capetown
 .durban

These are just examples of the geographic top level domain (geoTLD) names that will be made available to South Africans. People in other parts of the country and the world will still be able to see them on the internet, but when using these tags, the specific companies will be able to attract more potential clients in their immediate environment.

A general rule of thumb was to always use a short word as your domain name. This trend, however, started to fade away over the last few years. It has become more usual to see companies with longer domain names, or even phrases are now used. The key to choosing the right domain name for your company is to choose one that will be easy to remember, unique and that will describe your company best.

Companies should consider registering domain names similar to their company’s domain name. Some competing companies might try to register a similar domain name to your company’s to cause confusion.

There are almost 950 000 domains registered with the domain ‘.co.za’.You can log on to www.domains.co.za to see if the domain name that you are think will be suitable for your company, is available. When you find that it is available you can contact Pty Company Registration to get the proses of setting up your domain, started.

Having the correct domain name will work wonders for the website for your business. So have the experts assist you to achieve the ultimate potential of your business’s website.

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What is a Trade Mark and how will it help your business?

Your brand is your hard-earned property. If you’d like to protect your asset, registering your logo and company name as a Trade Mark, might be a good idea. Here’s exactly why and how you should register Trade Marks for your business.

Register

If you want to understand Trade Marks, you need to understand Intellectual Property. You can’t physically touch Intellectual Property, but in eyes of the Law, it’s considered an asset like any other, for e.g. property.

However, because determining Intellectual Property is a bit trickier than determining ownership of physical assets, registering your Trade Mark might be a good idea to help stop anyone else from claiming, using or mimicking your brand.

Also, once you’re registered, you get a nifty ® symbol added to you Trade Mark which scares off potential offenders. You registered Intellectual Property also adds value to your business’s total worth – if you ever decide to sell your business.

 

The difference between Trade Marks, Patents and Copy Rights

In short, Trade Marks, Patents and Copy Rights are just different ways to protect different forms of Intellectual Property.

Patents are used to protect inventions. Inventions can be anything from new forms of medication to significant improvements to existing machinery – as long as the invention is non-obvious, useful (because mere ideas cannot be registered) and completely new or state-of-the-art.

Patent rights will legally deter others from making money or using your invention, without buying those rights from you, for a maximum of 20 years. After that it’s considered fair game for all.

Copy Rights are rights that are automatically given (here, there’s no need for registration) to the author or creator of original publication or production work. Works like photographs, films, literature and even computer programs all fall into this category.

The author or creator retains exclusive Copy Rights to use, distribute and sell the work or the Copy Rights, a glorious 50-years after death (straight after death these rights fall to whomever inherits the creator’s assets). That’s why historic photographs or illustrations and classical music are considered public domain.

Trade Marks are used to protect branding elements, which distinguish you from your competitor, like your logo and your slogan or even patterns (like Burberry’s definitive check pattern) or packaging (like Coca Cola’s classic glass bottle shape). Trade Marks can offer you a lifetime exclusivity provided you renew it every 10 years and you don’t sell it to someone else.

 

Intellectual Property Rights: Things to keep in mind

It’s limited to local trade: Intellectual Property Rights are limited to the country they are registered in; you have to register in every country you want to trade in / with. Copy Rights can often extend to some other countries.

It’s limited to your trade: Trade Marks are registered according to categories called Classes (the industry in which the business trades in). If you trade in multiple Classes, you’ll have to register your Trade Mark for all of them.

 

How to register your Trade Mark and protect your brand

STEP 1: Apply through professionals 

Company Partners’ Legal Department specialises in Trade Mark Registrations. We will fast track your Trade Mark Phase #1 Registration to an estimated 40 days, whereas registering directly with CIPC may take up to several months. Click HERE to order your Trade Mark registration with us.

STEP 2: We do the specialized preliminary search for you

We do a preliminary search for you, to determine whether or not there’s a registered Trade Mark that’s similar to your brand.

If there is, we’ll help you make the necessary adjustments – this process might take 6 to 8 weeks.

You can do an online search yourself by clicking HERE, but our experts will do it for you, if you’re signed up with us.

STEP 3: Your application gets processed

Once that’s done, your application will be submitted to the South Africa’s Trade Mark registrar for Phase #2 Registration. If everything goes well, you’ll be a proud new owner of a Trade Mark!

 

Contact Us today or click the button below:

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Being stuck behind a desk

Differences are what makes our world interesting. It also creates diversity in the products and services that are available to the public. This is what entrepreneurship is all about. Finding unique and different ways to approach the gap in the market. Sometimes you might find yourself in an unfulfilling working position. Being stuck behind a desk is one of the worst things that can happen if you are not an office person. Sometimes, the only thing you need to reinvent your career, is a change in scenery.

Desk

 

Luckily there are multiple ways you can achieve this. There are quite a few businesses out there that will offer you freedom from the desk and you will be able to pursue your entrepreneurial instinct while at it.

Mentioned below, you will find a few business ideas that you do not hear about every day, but they are a sure thing to try if one of them jumps out at out.

Tourism

This is a business opportunity that will be ideal for parts of South Africa that has a rich history and a lot of tourist attractions. This is a brilliant opportunity for entrepreneurs to get their creative juices flowing.

You can do anything that you put your head to. Whether it is to take tourists on a tour bus and show them their surroundings, or taking them for a walk to some of the remarkable sights in the area. You can even open a shop that sells souvenirs to the tourists.

An important thing to remember is that you will need to identify the peak times of the year and ensure that you plan head for the busy and, just as important, the quieter times. Also, be sure that whatever you choose to do is in demand. When you do this, you can be sure that your tourism business will be a success.

Be an organizer

If you have organizational skills, but do not like working from behind a desk, this is the perfect opportunity for you. You can be an event organizer. You will be out and about, talking to different people and having something new and different to do each day.

You can even specialize in the future if your business is taking off. You can organize events such as large functions, weddings and parties. This all will put you on the road to success, while still making optimal use of your skill set.

Be a tutor 

If you like to teach people and did reasonably well in school, this might just be the answer. If you did not like the idea of being a full time teacher and being restricted to your classroom behind your desk, being a tutor is the best option for you. You do not necessarily need to work with children; you can also be an adult tutor. Whichever fits your personality best, will put you on the road to success.

These are just some of the alternative jobs you can pursue that will not ask of you to sit behind a desk all day. You will get to interact with a lot of other people. There are other options like running a kitchen, taking care of animals and even becoming a car specialist.

Find what you love to do and do it as often as you possibly can. In this way you will not feel trapped in your career and you will actually enjoy it. Write down what you like to do and find ways to turn that into a career.

For assistance with starting a company please, Click Here for more information.

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Holding Companies Explained

Business magnates use it. Small family businesses use it and you can use it too. The structural advantages of Holding Structures (most commonly known as Holding Companies) can help you manage multiple services, products and even businesses under one Holding Company. Here’s the break down on Holding Companies.

Holding Companies

A Holding Company is the mother ship. It holds various businesses within one corporate entity. That means, it’s the perfect way to structure various services or products within one corporate group without having to keep them all within one company.

Thousands of South Africans use a holding structure to setup their business. This structure can limit financial risk and assist you with branching out to new industries. Click here to read more.

Why choose a Holding Company?

A Holding Company is perfect for entrepreneurs looking to branch out to new business prospects; prospects that don’t quite fit into their existing companies.

It’s also great for business owners who want to compartmentalize different departments, services or products.

Actually, anyone looking to limit the financial risk of having various trades within one company can opt for a holding company to keep risk factors limited to specific divisions.

A Holding Company also makes it less risky to team up with business partners in new ventures; you won’t have to expose your existing company to the risk of failure your new business poses.

How does a Holding Company work?

In essence a Holding Company is a parent company, which owns various businesses (or at least 30% of their issued shares). A Holding Companies doesn’t trade in services or products itself, it merely has ownership in various companies that do, holding them together in one corporate entity.

Interestingly, Investment Holding Companies use this holding structure to attain shares of various promising or profitable businesses within one Investment Company. However, it’s perfect for the everyday entrepreneur too.

What is an example of a Holding Company?

Let say, David has a booming home painting company in Randburg called NuHome Painting. His nephew, George, has worked at renovations businesses before, building custom cupboards, in the same area.

David would like to branch out business to home renovations in Pretoria, starting a venture with his skilled nephew. However, he doesn’t want to put his current company at risk, if the family venture goes sour.

So David registers a Holding Company called NuHome Holdings to facilitate this expansion.

Holding Companies

NuHome Holdings acts as a parent company to both his established painting business and his newly registered Renovation Company (which he shares with his nephew). David’s Home Holdings owns 100% of the shares of his established business and 50% of his shared business.

This way these two businesses operate completely independent to one another within one larger entity owned by David, plus David and George have the opportunity to generate a new company name, NuHome Renovations, tailored to their new service, rather than automatically using David’s existing business to trade.

This allows NuHome Renovations a better chance at winning Contracts and Tenders relating to renovation jobs. The same goes for NuHome Painting regarding painting work.

Additionally, David can venture into brand new industries at any time, like selling beverages for instance, simply by registering a new company owned by his Holdings Company.

 What are the disadvantages?

The paperwork and start-up costs and will be slightly higher. You will have to register every business you’d like to run as a Subsidiary Company to your Holding Company.

Also, if the Subsidiary Companies to your Holding Company have various owners, it can be difficult to close a Holding Company, as there are multiple owners to consult. 

However, if this business structure might help you better manage various parts of your business or numerous Companies, the long-term benefits are worth considering.

If you’d like to register a Holding Company, CLICK HERE to look at our great Holding Package.

Alternatively, if you have any queries you can contact us on our TOLL FREE phone number (landlines): 0800 007 269 or email us via support@companypartners.co.za

How to Pitch to an Investor

One of the most nerve wrecking parts of being in the business environment, is to pitch to an investor. You know, while you are standing in front of them, they are analyzing and judging every part of your presentation.

Pitch

You may be the most outgoing person around or the one with the best presenting skills, but when the stakes are this high, chances are that you will be on your nerves. Investors are looking for a business or business ideas with the most potential chance at success. So do not worry about your presenting skills, rather focus most of your time to ensure that you present your business or idea in the best light possible. There are certain methods to follow to better your chances of getting that much needed funding for your business. These methods will be mentioned below.

The big picture 
A successful pitch to investors does not always revolve just around a well-drawn up business plan. It is about how well you know your business and the products or services you are going to provide. The overall idea of your business should be well thought through. It is also important that the business you are seeking funding for, is relevant to the current market conditions.

Confidence is key 
Be sure that you are confident and well prepared when you step up to do the presentation to the potential investors. Before the pitch, you should think of possible questions that the investors may have. This will help you to answer the questions better when you are confronted with them. It is also important to remember not to rehearse everything you want to say. You can have a few key words to help you remember all the points you need to touch on. You want to come across as knowledgeable and well informed.

The business plan 
The business plan can play a vital role in the presentation to the investors. Be sure that it is skillfully drawn up, so that it is still business relevant, yet easy to read and understand. You will need to show the potential investors that you have analyzed the market and that your business will be addressing the gap in the market. You should really think this part through.

Do not drag on for too long
Your pitch should not carry on for ages. You should be careful not to have a presentation that is too long or even too shorter. You should stick to the most important points of your business idea and ensure that you give the investors enough reason to invest in your business. Be sure not to lose the interest of your potential investors. If you find that they are losing interest, get their attention back by mentioning all the reasons why your business is the right investment for them and draw your pitch to a close. This will keep them from totally losing interest in your pitch and eliminating you as a potential investment.

Get it in writing 
Finally, you need to have all the data and figures in writing to give to the potential investors. This will carry the message that you have done research and have put effort in planning the pitch. They will most likely conclude that you will have done the same with the entire business idea. Include data like the estimate in growth that you expect, financial projections and an estimate amount of profit you are looking to make.

A final word of advice is to present your entire pitch in such a way that they can experience your entrepreneurial drive and ambition. Let them know, without telling them, that you have what it takes and is willing to put in the work that it takes. It all lies within your attitude and the presentation of yourself.

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Operating a franchise in South Africa

When most people think about a franchise , they tend to think in the line of a fast food restaurant or about a real estate broker. When thinking about it, almost any business can be a franchise. This opens completely new possibilities for SMME’s.

Franchise

 

A franchise offers a lot more security than a normal standalone small business. When buying a one, you have immediate brand recognition and a trademark to do your business under. It also comes with the advantage that you are still your own boss.

According to a recent survey, there was found that the success rate of a franchise is notably higher than the rates of standalone small businesses. The main reason for this is because the customers know about the products and services it offers and trust that they will receive the same service at all the different franchises.

Just like with any business venture, it is very important to still do research. You will not only have to do market research, but also research about which one you are looking to buy. With the market research, you should establish if there is a need in your surroundings for the specific product or service. Even though the product or service might be well known, there might not be a desperate need in your location for that product or service at the moment. Then when you do research on the franchise, you should establish if it will be the best choice you can make. 

Just like any other business form, it has its advantages and disadvantages. There are far more advantages than disadvantages when it comes to a franchise. Not all the disadvantages are seen as a proper disadvantage because it motivates you to work harder to achieve high standards. Mentioned below are some of the advantages and disadvantages of a franchise.

Advantages

  • You get to market and sell a well-established product or service.Click here for more information.
  • You do not need a large amount of operating capital.
  • There are franchising quality control standards you have to meet which will ensure that your products and services are up to standard.
  • You will get management and technical assistance from the franchisor.
  • You will have a higher chance of success.
  • You will be able to learn the franchisor’s ways of doing business and will learn the trade secrets of the specific business.

Disadvantages

  • The franchise agreement is usually expensive.
  • Restriction of freedom to give to your entrepreneurial instinct a chance.
  • Possible competition from other franchises.

You do not always have to buy a one. Why don’t you just start your own one? If you have a successful business and feel that you will be able to attain the same level of success in other parts of the country, then you have the ideal opportunity. You should put it out there that you are looking to branch out your business in the form of a franchise. When other people are looking for business ideas and have confidence in your idea, they just might buy into your idea.

The possibilities of a franchise are endless. If you are the franchisee of the franchise, there is no doubt that you can be successful. With the right amount of knowledge in your hands, there is nothing you cannot do.

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Importance of a Company Business Plan

A Company Business Plan is one of the most important documents that your company will ever need. It is the foundation of your entire business and the drawing board that you go back to when you want to make a change.  The importance of a business plan is too often overlooked.

Company Business Plan

The company business plan sets specific goals and objectives for the managers of the company. To ensure good management, specific objectives need to be set for the managers to work with. When you do not have a business plan, how are you supposed to know what should happen in the business? As a business grows, you might also want to change some detail of the business plan. This will ensure that your business will keep on progressing. The core of the company business plan should, however, remain the same.

A good way to keep yourself accountable for sticking to the business plan, will be to inform other people than your business colleagues, of your plans with your business. It will also help them to understand your actions regarding your business. They will then also feel more involved in your life when you include them in your business life.

Finding a shorter, yet effective way is the basis of any successful business. Some obstacles you face, might seem like a lot, but at the end of the day it makes you a more experienced entrepreneur. When these obstacles arise, you will need to find a creative way to deal with it. Finding the shortest, yet best way to deal with obstacles, will be of great advantage to your business. Here is a Great Article with examples of business plans to get you going. 

Depending on the plans you have for your business, a business plan will give you an advantage on other business, if you are planning to sell your business or when you are looking for investors. The company business plan will give the possible buyers or investors a brief overlook at the goals, objectives and strategies of your business.

A company business plan will help you to determine the long term goals of your business. When you know what these goals are, it will make your decision easier when you have to consider new equipment or a new premises. Here is an interesting article with reasons why you need to have a Company Business Plan.

A company business plan is also used to determine the value of the business. Along with other official documents, the business plan will give the valuation expert the information regarding how far the business have come and what is still planned for it. Things like cost and business ideas are taken together in the business plan. For this reason as well, the business plan is a very important part of your business.

Investors like to see a plan before they will consider investing in a business. A company business plan will give them the best possible impression of your business. They will  be able to see the future plans for the business. A well prepared business plan will automatically lead to investors being more comfortable when dealing with you.

In the event that your business might need a loan from a bank, a business plan can come in handy when applying for a loan. It will give the financial institution security, in knowing that you have though the entire proses through and came prepared.

Even existing companies need a business plan. If they do not have a company business plan, it is best to get working on one as soon as possible. New strategies can be formed in line with the business plan to maximize the growth of a business.

So do not wait any longer, put on your thinking caps and get started on a company business plan. It will open doors for your business and you, as well as other people in your business, will know where the business is headed. We can assist you with a Business Plan

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CIPC Shelf Company

Shelf Company is a company that has already been registered. The term Shelf Company refers to a company that is symbolically sitting on a shelf and waiting to be bought by a client. Once a CIPC Shelf Company is bought, the owners of the company can immediately start doing business.

CIPC shelf company

There has been a degree of confusion regarding what a Self Company is. A lot of people see one as a company that is yet to be incorporated. But that is not the truth. A CIPC Shelf Company can start doing business the second it has been bought by a client.

Types of CIPC Shelf Companies

When referring to a CIPC Shelf Company, there are basically two kinds; old and new. There are various names which are used to describe these types of Shelf Companies. New and old are the generally accepted terms. Other terms used for to describe old companies are, aged, mature or historic Shelf Companies. Recent or current companies are used to describe the newer Shelf Companies.

There is no real timeframe to describe whether a company is a new or old CIPC Shelf Company. It is widely accepted that a new company was formed in the last three to six months, or the current year. Old companies are generally accepted at any given time beyond that.

Some Shelf Companies have already done business. When one of these companies has never done business, they are referred to as clean Shelf Companies. Be sure that before you start looking for a CIPC Shelf Company, that you know what you are searching for. Different Shelf Companies cater for different people.

There are some Shelf Companies that come with tax file numbers, insurance licenses and bank accounts. These companies are very rare, because they are a massive advantage if you need a turn-key solution for your business. This will ensure that the owners can just “turn the key” in order to start doing business.

Why would you buy a CIPC Shelf Company

There are multiple reasons to buy a CIPC Shelf Company. Some companies need to be in business for a certain period in order to bid on contracts. When buying a CIPC Shelf Company that is older, you can already bid on some contracts even if you bought the company a month ago. It also saves the time involved when creating a new company. Some banks also require a business to mature before they give them access to corporate credit. When buying a CIPC Shelf Company, your chances of qualifying for corporate credit are improved.

Advantages

  • When buying a new CIPC Shelf Company, you cut out the waiting period. In some places the incorporation process may be slow and in buying a new CIPC Shelf Company you cut out the waiting period.
  • You will also be able to know that when you buy a clean CIPC Shelf Company, that there is no credit or tax issues with the company.
  • When buying an old CIPC Shelf Company, some processes will be made easier. Banks will be more willing to open accounts for the business for the reason that they already have business ‘experience’.

Disadvantages

  • A CIPC Shelf Company is already incorporated. This means that they are already registered under a specific name. Luckily, the name of a business can easily be changed.
  • If you did not do proper research on the company, you may find that the company has debt or some kind of liability. This can be avoided when you research the company and inquire about the credibility of the company.

This is an easy way to get your business up and running. Be sure that you do sufficient research before you buy a CIPC Shelf Company. Once you are done and have bought your CIPC Shelf Company, success is just around the corner.

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Starting a Security Company

While a lot of people focus on starting a corporate company, others tend to think in a different direction. They aim to start a security company. Starting a security company is a bit different from an ordinary company. In this article, we will discuss how to get your security company in action.

Security Company

A person starting a security company should preferably have a background in the same field. There are a lot of knowledge and skills that goes into starting a security company. You can either chose to provide a security service or to sell security goods. In both these lines, you will have to be educated in the different equipment that is used by security professionals and be able to give advice to other people in the same profession. You can even combine the two types of security companies if you would wish to do so.

In order to start a security company you will need to register with the Private Security Regulatory Authority (PSIRA). This is one of the governing bodies of private security companies in South Africa. You will have to pay a registration fee and complete an exam to determine your competence level.

On completion and passing of the exam, you will have to give proof to SIRA that you have no criminal record. Once they have received the proof and done investigation on it, they will conduct an inspection to establish whether or not your business meets the infrastructural requirements. You will also be held liable for the cost of the inspection. This inspection will then be done on a yearly basis to keep track of your business and you will also be responsible for paying the fees involved for the inspection annually.

Depending on the type of Security Company you are starting, you will have to have a decent amount of capital available. The equipment that is used in the security industry is normally on the high end when it comes to prices. So remember to include this when you are drawing up a budget for your company.

You may not always think it is necessary, but the importance of a business plan cannot be stretched enough. A business plan will force you to think about your business’s future and to where you are headed with your business. You will then also need to determine how you will get yourself in the market and how you will get your name out there. A business plan is of utmost importance to any business.

There have been quite a number of associations established in order to regulate the security industry. Mentioned below are some of these bodies. Membership of these bodies is not compulsory, but it will be to the advantage of your business. These associations are:

During an interview I had with a security company owner, I was informed that the clients in the private sector do not tend to be picky when it comes to prices. They look at the reputation of a security company and determine which security company they will use according to their findings – no matter to what it will amount for them. He also mentioned that the more professional your security team is, the more likely you will be to get clients that hire you for security details.

In conclusion, remember that you will have to plan your security company thoroughly and you will need to be prepared to put a lot of time and effort into starting your company. Once your company is up and running, you will realise that all the trouble and planning were worth it.

For more information about starting your own Security Company click the Link Below.

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Start-up myth

When starting a business, there is quite an amount of uncertainty that goes along with it. In addition to this, there is a lot of chatter going around about one thing being good for business and the other not. A lot of these have always been and will always be just a myth.

myth

In this article, I will be discussing 7 of the most common myths, along with their truths.

Myth 1 – Sales are everything:

Even though it is important, it is not everything. The more important thing to look at is the cash flow of the business. Sales might be looking up, but if there is less money at the end of the month than at the beginning, something is wrong. Learn to use a cash flow statement. It will do wonders when it comes to control over cash flow. Then make sure that your company’s profitability is up to standard. For example, the standard profitability percentage for companies in the sales industry is >20%. Meaning R 1 million in sales, of which R200 000 is profit. It does not make sense to sell R 1 million worth of goods, but after all your expenses has been deducted, you only make R 5 000… Wouldn’t it be better then to only have R100 000 in sales, but R 20 000 in profit? 

 

Myth 2 – Low prices will bring customers:

This might have just a little bit of truth in it. Customers are always looking for a place where they can get the best deal, but they also want quality. If you offer a lower quality item at a low price, it can have a short term effect. Sooner than later the customers will figure out that the lower quality product will cost them more in the long run. They will usually pay a bit more for a better quality product.  

 

 Myth 3 – Quality products will yield customers:

This might seem in contrast with the previous statement. Truth is you can not have a good quality product and assume that your profits will increase. You should put effort to market the product and let the customer know about the product you are offering them. If you over price the product, it will also not be as profitable as you thought.

 

Myth 4 – Under-promise, but over-deliver:

This has been a popular saying in the business world for a long time. The problem with this statement is that if you under promise, the customer might feel that he/she can get a better deal at another place. Sell your business for what it is and what you can deliver. This will give the customers a better idea of your business and you can work harder to top what you promised.

 

Myth 5 – The customer is always right:

There are a lot of different people in South Africa. All with different ideas and different backgrounds. You will never be able to run a business where you believe that every customer is always right. Set a basic level of service and standards and make this clear to the customer. This will be able to give them a better idea of what to expect and to set their expectations in accordance with that.

 

Myth 6 – You will have more time:

This is most probably the biggest myth of them all. When starting a business, you will have to get a lot of things in place. This will ensure that your business will take off and be successful. Even after a few years, you will undoubtedly still have to work very hard. The work you put in will eventually reflect on your income at the end of the month. Even when you are not at work, your business will be mentally more demand than a normal nine-to-five job.

 

Myth 7 – The product will sell itself:

This is true, but you will still need marketing. If you have this wonderful product, but nobody knows about it, what is the use? You will have to let people know about your product so that you can sell it to them. If they do not know about you, they will not be able to buy from you.

 

With these myths out of the way, I think that you will have a better understanding of what it is to start a new business. Proper planning will always ensure that your chances of becoming successful, is drastically improved.

A great place to start is to register your own company. Start today.

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Developing a brilliant business idea

The business idea is the soul of the entrepreneur. Before starting a business the entrepreneur should have a business idea as a starting point. This business idea is not always as easy to come by as it might seem. 

Business Idea, Business, Idea, Ideas

Some entrepreneurs, regardless of their skills, struggle to form an idea to start the successful business they have always dreamed of. They might have the skill and willpower that is needed to run a business, but lack in imaginative ideas. There is however a few simple steps you can follow to come up with a great business idea.

Market research:

Without doubt, this method will never fail to deliver some great ideas.  Not every successful business idea is large and complicated. Some of the most successful businesses have evolved from small and sometimes simple ideas. You can also search on the internet for ideas. One of the popular websites to search for a business idea is the Business Plan Centre.

Knowledge is power:

To form a business idea that will stand above the rest, a solid base of knowledge is needed. Knowledge will give you the power to develop brilliant business ideas. When you have knowledge in your field you will be able to understand and to recognise when a need arise in the market.

Putting ideas together:

Someone that is able to see relations between different things will be able to deduct an idea from what they saw. For this reason it is important for the entrepreneur to learn how to see the relation between facts that nobody else see. With this information they can form an idea which is unique.

Consult family / friends:

This might not seem as the normal route to follow but asking your family what ideas they have might not be a bad idea. They will be more confident to tell you how they feel and trust you with their opinion. They will also be able to tell you what they think of your idea before it goes out to the world and can even aid you in sorting out minor details. You may even discover a potential partner. Directors has many responsibilities, so you need someone trustworthy. See more at Director responsibilities.

Things that bother you:

When you think of things in your daily routine that drives you up the wall, do something about it. There may be a gap in the economic circle and if you find that gap you can fill it with your idea. This will result in a long term business idea which can sustain its self.

See the world:

When travelling you get to see other places of South Africa. The needs of people differ from city to city as we all know. You might have a great idea but it is maybe needed in another city. Therefore you should search for the ideal location where your idea is needed most and will lead to your success.

Re-invent the wheel:

This may seem odd but why not. Tons of critics say that you should not waste time on other people’s ideas. The matter of the fact is that if something bothers you about a certain product, it is almost certain it bothers someone else as well. This creates a great opportunity to better the previous idea with a bit of creativity and imagination.

Time it:

Success does not happen overnight. You would want your idea to keep around for a long time. Insure that your idea will not just be a trend that dies out after a couple of months. Be sure that you will be able to adapt to the changing needs of the consumer.  All you really need to do to find your business idea is to keep your ear on the ground. Listening to what the market needs will defiantly deliver some ideas. Always be open to new possibilities and never be afraid to take a risk. When you are ready, call a consultant to understand what you need to start-up.

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