Frequently Asked Questions

Frequently Asked Questions




The following document details Frequently Asked Questions by SMEs who are trying to start a business and want to be sure that they understand exactly what is needed by them to run their business successfully. 

As a team, we consistently put together more in-depth FAQs that will be loaded onto our Website, Info Mailbox, and our WhatsApp line under FAQ for prospective clients or site visitors who would like to find out more questions that they would need to know before embarking on the journey of entrepreneurship.

Questions are as follows:

Question 1. What business should I start? 


Answer:
  1. A business that is aligned to your areas of expertise, strengths, opportunity you have identified in your community, and problems that you would like to solve. 
  2. Think about what you are passionate about what is your purpose and what are your inherent strengths.

Question 2. What do I do first?


Answer:
  1. Step 1: Compliant component: (Registering your business)
  2. Step 2: Create a business strategy to outline exactly what you would like to sell to the market (transformation link resource section)
  3. Step 3: Book a consultation with The Transformation Legacy
  4. Step 4: Get access to Legacy Circle Entrepreneurial Community

Question 3. What registration or compliance certificate do I need for my business?


Answer:
• Compliance Certificates: Visit the Companies and Intellectual Property Commission 

Question 4. How do I market my product/service?


Answer: 
• To kick start this process have a market strategy plan, then investigate different marketing platforms and consult with a strategist. 
• Conducting online research.

Question 5. Why do I need a business plan?


Answer:
• This would be a process to help you understand the feasibility of your business.
• The business plan gives you an outline of how you would be able to achieve your business goals.
• For more information contact The Transformation Legacy for Business plans and proposals. 

Question 6. Who is the one that puts it together and will I need to pay for it?


Answer:
For more information contact The Transformation Legacy for Business plans and proposals. 

Question 7. How do I finance my business?


Answer:
Various private and government institutions offer SME funding. You can look these up on the internet especially those that may be industry-specific related to your business. The Transformation Legacy does not offer funding, nor is it affiliated with these institutions. Financing a business in South Africa can be done through various means, depending on your business's stage, industry, and financial needs. Here are some common options:
  1. Bootstrapping: Start with your own savings or personal loans from family and friends. This involves using your own resources to fund your business.
  2. Bank Loans: Approach banks for business loans. They may require collateral and a good credit history. The interest rates and terms will vary, so compare offerings from different banks.
  3. Government Grants and Loans: The South African government offers various grants and loans for small businesses through agencies like the Small Enterprise Finance Agency (SEFA) and the Industrial Development Corporation (IDC). These funds are often aimed at specific industries or developmental objectives.
  4. Angel Investors and Venture Capitalists: Seek investment from wealthy individuals or venture capital firms who provide funding in exchange for equity in your business. You can find such investors through networking events, startup incubators, or online platforms.
  5. Crowdfunding: Use online platforms to raise funds from a large number of people who each contribute a small amount. This can be done through reward-based crowdfunding (offering products or perks in exchange for funding) or equity crowdfunding (offering equity in your business).
  6. Supplier and Vendor Financing: Negotiate extended payment terms with your suppliers or vendors, allowing you to use their products or services before paying for them. This can help improve your cash flow.
  7. Microfinance Institutions: These institutions provide small loans to entrepreneurs who may not qualify for traditional bank loans. They often focus on supporting micro and small businesses in underserved communities.
  8. Grants and Competitions: Keep an eye out for business grants and competitions offered by corporations, foundations, or non-profit organizations. Winning or receiving such grants can provide a significant boost to your business.
  9. Business Incubators and Accelerators: Joining a business incubator or accelerator program can provide not only funding but also mentorship, networking opportunities, and other resources to help grow your business.
Before choosing a financing option, thoroughly research and consider the terms, interest rates, repayment schedules, and potential impact on your business's ownership and control. It's often beneficial to consult with financial advisors or mentors who can provide guidance tailored to your specific situation.

Question 8. What records do I need to keep?


Answer:
There are basic statutory documents that each business needs to have. Over and above that may be dependent on your specific industry. In South Africa, keeping accurate and detailed records is crucial for the financial health and legal compliance of your business. Here's a list of essential records you should maintain:
  1. Financial Statements: Prepare and retain financial statements, including balance sheets, income statements, and cash flow statements. These documents provide a snapshot of your business's financial performance and position.
  2. Bank Statements: Keep copies of all bank statements, including both business and personal accounts if they are used interchangeably.
  3. Invoices and Receipts: Maintain records of all sales invoices issued and purchase invoices received. Keep copies of receipts for all business-related expenses, such as rent, utilities, supplies, and equipment purchases.
  4. Payroll Records: If you have employees, keep detailed payroll records, including salary/wage payments, deductions, benefits, and taxes withheld. This includes records of leave taken, overtime worked, and any other relevant information.
  5. Tax Records: Retain all tax-related documents, including tax returns, supporting schedules, receipts for tax-deductible expenses, and correspondence with tax authorities.
  6. Contracts and Agreements: Keep copies of contracts, agreements, and legal documents related to your business activities, such as lease agreements, supplier contracts, client agreements, and partnership agreements.
  7. Asset Register: Maintain an asset register listing all the assets owned by your business, including their acquisition date, cost, depreciation, and current value.
  8. Insurance Policies: Keep records of all insurance policies held by your business, including details of coverage, premiums paid, and claims filed.
  9. Licenses and Permits: Keep copies of all business licenses, permits, registrations, and certifications required to operate legally in your industry and jurisdiction.
  10. Correspondence and Communication: Keep records of all business-related correspondence, emails, letters, and other communications with clients, suppliers, contractors, and regulatory authorities.
  11. Meeting Minutes: If your business is structured as a corporation or LLC, maintain records of meeting minutes for board meetings, shareholder meetings, and other important meetings.
  12. Intellectual Property Records: If your business owns intellectual property assets such as trademarks, patents, or copyrights, keep records of registrations, licenses, and any related agreements.
  13. Health and Safety Records: If applicable, maintain records of health and safety inspections, incident reports, training sessions, and compliance with occupational health and safety regulations.
  14. Records Retention Policy: Develop and implement a records retention policy outlining how long different types of records should be kept and when they can be disposed of.
By keeping these records organized and up to date, you'll not only ensure compliance with legal requirements but also have valuable information for decision-making, financial planning, and business analysis. Consider using accounting software or hiring a professional accountant to help you maintain accurate records and streamline your record-keeping process.

Question 9. Where can I go for help with regards to starting up my business and if I need training how do I go about receiving it?


Answer:
For more information contact The Transformation Legacy.

Question 10. Will I be able to get mentoring for the specific business I want to do?


Answer:
Yes. For more information contact The Transformation Legacy

Question 11. How do I register my business?

Answer:
You can register your company online on the Companies and Intellectual Property Commission.

Question 12. Do I need a tax certificate to start a business?


Answer:
Yes. This is part of the statutory documents required.

Question 13. How do I get a business account at a bank?


Answer:
Approach your preferred financial institution and provide your business statutory documents.

Question 14. Which basic tools do I need to start my business?


Answer:
Starting a business typically requires several basic tools, depending on the nature of your business. Here's a general list to get you started:
  1. Business Plan Template: A well-thought-out business plan serves as your roadmap. There are numerous templates available online tailored to different business types and purposes.
  2. Legal Structure Documentation: Decide on your business structure (sole proprietorship, partnership, LLC, corporation) and gather the necessary paperwork to register your business with the appropriate authorities.
  3. Financial Software: Invest in accounting software like QuickBooks or FreshBooks to manage your finances, including invoicing, expenses, payroll, and taxes.
  4. Website and Domain: Establish an online presence by creating a professional website. Register a domain name that reflects your business name or offerings.
  5. Email and Communication Tools: Set up a professional email address using your domain name. Consider using communication tools like Slack or Microsoft Teams for internal communication and collaboration.
  6. Marketing Materials: Design basic marketing materials such as business cards, brochures, and flyers to promote your business locally.
  7. Customer Relationship Management (CRM) Software: Implement a CRM system like Zoho, HubSpot, or Salesforce to manage customer interactions, track leads, and nurture relationships.
  8. Inventory Management System (if applicable): If your business involves inventory, invest in an inventory management system to track stock levels, orders, and sales.
  9. Legal Documents and Contracts: Draft essential legal documents such as contracts, agreements, and terms of service to protect your business interests.
  10. Workspace and Office Supplies: Set up a dedicated workspace equipped with basic office supplies like a desk, chair, computer, printer, and stationery.
  11. Payment Processing System: Choose a payment processor to accept payments from customers, whether online or in-person. Popular options include Square, PayPal, and Stripe.
  12. Business Insurance: Research and purchase appropriate business insurance coverage to protect your assets and mitigate risks.
  13. Compliance and Regulations Resources: Stay informed about industry-specific regulations and compliance requirements relevant to your business.
  14. Networking and Learning Resources: Join industry associations, attend workshops, and connect with other entrepreneurs to expand your network and stay updated on industry trends.
Starting a business can be challenging but having the right tools and resources in place can set you up for success. Adapt this list according to your specific business needs and industry requirements.

Question 15. How do I do my business tax, do I need an accountant?


Answer:

Doing your business taxes in South Africa can be a manageable task, but it depends on the complexity of your business operations and your comfort level with tax regulations. Here's a general guideline:

  1.  Educate Yourself: Familiarize yourself with South African tax laws applicable to businesses. The South African Revenue Service (SARS) website is a valuable resource for understanding tax obligations and regulations.
  2. Keep Accurate Records: Maintain detailed records of your business income, expenses, assets, and liabilities. Good record-keeping is crucial for accurate tax filing.
  3. Choose the Right Tax Structure: Depending on your business type (sole proprietorship, partnership, company, etc.), different tax structures apply. Ensure you understand which one is most suitable for your situation.
  4. File Taxes on Time: South Africa has specific deadlines for tax filing. Missing deadlines can result in penalties and interest. Stay updated with the SARS website or consult with a tax professional to know the deadlines.
  5. Consider Hiring an Accountant: While it's possible to do your business taxes yourself, hiring an accountant can offer several benefits. An accountant can ensure compliance with tax laws, maximize deductions, minimize tax liabilities, and save you time and stress.
  6. Seek Professional Advice if Necessary: If your business finances are complex or if you're unsure about certain tax matters, consulting with a tax professional or accountant is advisable. They can provide tailored advice based on your business situation.
  7. Use Technology: There are various accounting software and online platforms available that can simplify the tax filing process for small businesses. Consider using these tools to streamline your accounting and tax procedures.

Ultimately, the decision to hire an accountant depends on factors such as the complexity of your business finances, your familiarity with tax laws, and your willingness to devote time to tax-related tasks. If you're unsure, consulting with a tax professional can help you make an informed decision.


Question 16. How do I market my business to new clients? 


Answer:
Appoint the services of a professional marketing consultant for specialist advice.  Marketing your business to new clients in South Africa requires a strategic approach tailored to your target audience and industry. Here are some effective strategies to consider:
  1. Define Your Target Audience: Understand who your ideal customers are based on demographics, psychographics, and behavior. This will help you tailor your marketing efforts to reach the right people.
  2. Create a Strong Brand Identity: Develop a compelling brand identity that resonates with your target audience. This includes your logo, colours, typography, and brand voice. Consistency across all marketing channels helps build brand recognition and trust.
  3. Build an Online Presence: Establish a professional website that showcases your products or services, provides valuable content, and makes it easy for potential clients to contact you. Optimize your website for search engines (SEO) to improve visibility in search results.
  4. Utilize social media: Identify the social media platforms where your target audience is most active and create a presence there. Share engaging content, interact with your audience, run targeted ads, and leverage influencer partnerships to increase visibility and engagement.
  5. Content Marketing: Create and share valuable content such as blog posts, articles, videos, infographics, and podcasts that address your audience's needs, challenges, and interests. This positions you as an authority in your industry and attracts potential clients.
  6. Email Marketing: Build an email list of potential clients and existing customers and send them regular newsletters, promotions, and updates. Personalize your emails based on the recipient's preferences and behavior to increase engagement.
  7. Networking and Partnerships: Attend industry events, join business associations, and participate in networking opportunities to connect with potential clients and partners. Collaborate with complementary businesses to reach new audiences and offer joint promotions or discounts.
  8. Local SEO and Listings: Optimize your online presence for local search by claiming and updating your business listings on Google My Business, Yelp, and other local directories. Encourage satisfied customers to leave positive reviews to boost your credibility and visibility.
  9. Offer Promotions and Discounts: Attract new clients by offering introductory promotions, discounts, or special offers. This incentivizes them to try your products or services and can lead to repeat business and referrals.
  10. Word-of-mouth and Referral Marketing: Encourage satisfied customers to refer their friends, family, and colleagues to your business. Offer incentives for referrals and provide exceptional customer service to generate positive word-of-mouth recommendations.
  11. Monitor and Analyse Results: Track the performance of your marketing efforts using analytics tools and metrics such as website traffic, conversion rates, social media engagement, and ROI. Use this data to refine your strategies and optimize your marketing campaigns for better results.
By implementing a combination of these strategies and adapting them to suit your business's unique needs and goals, you can effectively market your business to new clients in South Africa.

Question 17. Where can I get free interns to assist me in my business?


Answer:
Enquire with various private and government institutions that may have interns available. In South Africa, there are several avenues where you can find free interns to assist you in your business. Here are some options to consider:

  1.  Universities and Colleges: Contact local universities, colleges, and vocational institutions to inquire about internship programs. Many academic institutions have partnerships with businesses and can connect you with students seeking internship opportunities. You can offer internships through career services offices or directly through academic departments relevant to your industry.
  2. Online Job Portals and Platforms: Utilize online job portals and platforms specifically designed for internships, such as Puff and Pass, Careers24, or Indeed. Create a profile for your business and post internship opportunities specifying the roles, requirements, and duration of the internship. These platforms are frequented by students and recent graduates seeking work experience.
  3. Professional Associations and Networks: Join industry-specific professional associations and networks where you can connect with students and professionals in your field. These organizations often have internship programs or can help you spread the word about internship opportunities to their members.
  4. Social media and Networking: Leverage social media platforms such as LinkedIn, Facebook, and Twitter to advertise internship opportunities and engage with potential candidates. Join relevant groups and communities where students and young professionals gather and share your internship openings.
  5. Career Fairs and Networking Events: Attend career fairs, industry conferences, and networking events where you can meet students and graduates interested in gaining work experience. Bring materials about your business and internship opportunities to distribute to attendees.
  6. Non-Profit Organizations and NGOs: Partner with non-profit organizations, NGOs, and community groups that support youth development and job readiness programs. These organizations may have internship initiatives aimed at providing work experience to disadvantaged youth.
  7. Government Programs: Explore government-funded initiatives and programs aimed at youth employment and skills development, such as the YES (Youth Employment Service) program. These programs often facilitate internships and provide support to both employers and interns.
  8. Personal and Professional Networks: Tap into your personal and professional networks to spread the word about internship opportunities at your business. Ask for referrals from colleagues, friends, and acquaintances who may know students or recent graduates looking for internships.
When recruiting interns, clearly outline the responsibilities, expectations, and benefits of the internship to attract qualified candidates. Provide mentorship, training, and meaningful work experiences to help interns develop their skills and contribute to your business. Additionally, ensure compliance with labor laws and regulations regarding internships, including compensation, working hours, and workplace safety.