Prerequisites for starting a business

Random Hero

Random Hero

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Hey guys,

So I posted on my struggles with new employment lately, as well as recently moving to Fourways - Sandton North.

I think that perhaps being a entrepreneur will be my next step.

I have a company registered with CIPC which was for a venture that never worked out.
I can probably trade under this company and offer my skills in Market Research, Strategic Marketing and Branding.

But what else do I need to get in place?
Would I need a merchant account to do business with?
I am completely novice with all that admin stuff, taxes and creating quotes and invoices.

Do I need a startup business consultant to help with this?

So before I start trading, what do i need? :confused::confused::confused:
 
I'm no expert here but:

I know that you can use your existing CIPC registration. By using T/A (trading as) before your new company name. I.E: govtenders101 (PTY) Ltd. t/a guptaco :D (it's friday afterall)

I would also develop a proper business plan - you'll need this if you need some form of financing.

I would also choose the right type of company to ensure that you're not personally liable for any debts incurred by the company should things go pear shaped.

I would also try find out about registering as a VAT vendor with SARS..

I'm sure there are experts here to help out.

Edit: found this for quoting and invoicing: https://www.paypod.co.za/
One of our suppliers use it so it seems good to go.

Good luck!
 
Last edited:
In the process of this for mine, fairly involved process. The accountants/auditors did most of it so don't quote this as gospel:

1. Register the business at CIPC with you as director, seems you've done this?
2. Open a bank account in the business name, will need all your CIPC docs and your ID etc.
3. Register for a tax number at SARS, you'll need an "Account Confirmation" letter from the bank to do this, they need proof of bank account.
4. Register yourself as an employee of the company with the UIF and register for PAYE with SARS, so you can pay yourself a salary.

Then you just need branding, marketing, a Word template for invoices and a spreadsheet to track incomes vs expenditures and you're a for away.

As for running the business and making money, no idea, I just make it up as I go along :)
 
Random Hero said:
Hey guys,

So I posted on my struggles with new employment lately, as well as recently moving to Fourways - Sandton North.

I think that perhaps being a entrepreneur will be my next step.

I have a company registered with CIPC which was for a venture that never worked out.
I can probably trade under this company and offer my skills in Market Research, Strategic Marketing and Branding.

But what else do I need to get in place?
Would I need a merchant account to do business with?
I am completely novice with all that admin stuff, taxes and creating quotes and invoices.

Do I need a startup business consultant to help with this?

So before I start trading, what do i need? :confused::confused::confused:
Click to expand...

To open a bank account you need the CoR14.3 form which you can get from the CIPC site. This is the form that confirms you are a registered business.
Otherwise..

Do business?
For funding, you'll need a business plan and financials or estimates :|
 
I have a business plan and Marketing strategy. going to try and do it without funding.
When I have everything up and running I will give services for low prices just to grow a portfolio and reference list. :)


Thank you gents!
 
It is a common misconception that you need a company to be able to trade. It is a fair bit more expensive using a company versus trading in your own name. You can't escape the personal liability issue in a company, because banks and other funders will require standing surety for your company's debts.
 
Wave apps

Start doing business

Profit

Keep all slips.

Send all tax stuff to someone else
 
SoTrue said:
It is a common misconception that you need a company to be able to trade. It is a fair bit more expensive using a company versus trading in your own name. You can't escape the personal liability issue in a company, because banks and other funders will require standing surety for your company's debts.
Click to expand...

That's IF they do make debt, however, approaching it this way, he opens himself up to get employees/grow without having to jump through all those hoops.

Sure you can trade on your own name, but then Mr. Taxman wants you to pay provisional tax 6 months upfront, on a salary guesstimate you have no idea of how much you will be making. I had to fork over something ridiculous like 55k upfront because of my potential salary projections. Ended up getting screwed by so many clients that SARS owed me R20k after that venture. Still hurts when you could have survived/pushed through with the 55k SARS got interest free
 
I think the biggest failure here is everyone jumps the gun registering the business, getting a business bank account etc etc.
This is just many ways to spend money without making it. Do some planning, have some goals on what you can deliver for clients and get someone onboard. Seen far too many times that people are excited about starting their business and spend money on all the "businessy" things without a single clue on how they are going to recoup that cash, nevermind make a profit or pay themselves an income.

Plan -> Get a client -> then do your businessy money consuming stuff.
 
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