Prepping entrepreneurs for the SMME boom post job cuts

08 July 2020 FAnews

Businesses are expected to shrink once the coronavirus’ after-effects are properly counted-out. Jobs will be shed and as painful as it is, it’s an unavoidable reality.   

With the advent of the gig-economy, working for external companies is generally regarded as a stepping-stone for young and upcoming entrepreneurs. Though not everyone is skilled and primed by nature to be an entrepreneur, and most will probably dust of their CVs and plead for employment. However, the nature of the beast at this point in time, as it is, calls for innovation from the informal sector in order for it to resuscitate itself going forward. 

Based on the observation of business experts, including the likes of accountant and tax practitioner, Jacques Taljaard of Pretera Accounting Services, here are the seven practical steps to starting a suitable business for yourself. 

  1. Find something that you are good at and make it profitable for yourself. Look into your personal interests as well as capabilities and ask friends, as well as family members for pointers too. Consider what you have done in the past, either academically, out of interest or professionally, and find ways of making an income from it. The focus is to find something you enjoy doing that you happen to be good at.
  2. Do something a few times over. Do your regular daily routine, go to your job if you still have a job, and while you are busy with it, identify potential challenges and probable solutions. The idea is to find a problem and the solution. That solution can be paired with what you are already good at and can be your business opportunity, if you work on it.
  3. Investigate the idea thoroughly. Think about the why’s and why nots, the pros and the cons. Consider the challenges you might come across while going through the process of stablishing the business and the reason for this is, your idea should fit certain criteria and should be something you can teach someone else to do. At the end of the day, you must get to a point where you will delegate others to do the work in future and have more time to yourself.
  4. Formalise the business by registering your company and a registering a business bank account. It’s advisable to note that registering the company is the best thing to do, but not the only way to go. A separate business account is highly advisable so that the personal and business expenses don’t get confused because business expenses are deductible for tax, while personal expenses are not.
  5. Start operations and get your infrastructure up to date. Have an inventory system in place and start providing the infrastructure needed for your operations, in a systematic manner of course.
  6. Start sales marketing and competing for market share. Reputation in business is critical, so for every single sale made, make sure you do the work that goes with it immediately. Customer retention is a big part of the sales process and just as, if not more, important as getting new customers.
  7. Get an accountant as soon as you make the first sales. A lot of small companies go under because they were unaware of the legislative requirements they had to comply with. Every industry has additional requirements and legislation that it must comply with. 

The world economy is expected to change post-Coronavirus and it helps to be strategically adaptable, understanding that no-one is going to be a millionaire overnight. SMMEs growth helps fight unemployment and smaller competitors in the market are encouraged, as they keep the bigger competitors on their toes, lineally improving the quantity of products and service.

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