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	How to start a business A successful small business offers the rewards of earning income far in excess of a salary, the freedom to be in control of your own destiny, social status and the satisfaction of providing jobs for others. However, everything always seems easier than it really is, don't let your dream turn into a nightmare because you have not prepared properly. Definition of a small business The definitions of small business according to industry sector, are based on the National Small Business Act No. 102. 27 November 1996. Related Information Finding a business idea Choose a business idea for which there is a market demand and which you can serve competitively. With international competition on your doorstep, be sure to choose something you can get passionate about doing well. When it is fun, it is much easier to work hard. Related Information Entrepreneurship According to recent research, in every 18 SA adults can be considered an entrepreneur, What attributes make a successful entrepreneur? Have you got what it takes? Related Information Researching Competitiveness Be sure to establish a sustainable competitive advantage over your competitors. The most common way to enter a market is to focus more intensely on a particular market segment than those competitors already established in the market. What is in it for your customer? Why should they buy from you? Evaluate your relative strengths and weaknesses and relate them to opportunities and threats in your local business environment. Related Information Forms of Business Entities Choosing the legal form of business has significant impact on the complexity of regulatory compliance necessary, the amount of tax you pay, the extent of personal liability for debt incurred and whether financial institutions are more or less likely to provide finance. It is therefore important to understand what options exist, and to select the best form for your venture. Related Information Click on the links below to read more about the different forms of business entities. Close Corporation Company Partnership/Joint Venture Sole Proprietorship Non-profit organisations Co-operative businesses Financing the Business Finding the finance for your business may be the most challenging part in starting a business. Different sources of funding exist for different types of business ventures. There are many funding agencies for large, profitable and low risk deals. Your new venture is likely to be small and likely to entail risk, which few organisation are keen to finance. Read more Legal Issues and Insurance There are many legal requirements to operate a business legally. Failure to comply with these requirements could cost you a fortune or even the loss of your whole business. Understand the rules of the game to win. Read more Patents and Trademarks Anyone with a new invention or an original design can legally protect it. Inventors, designers and manufacturers whose business it is to generate intellectual property should acquaint themselves with the legal aspects of protecting what is rightfully theirs. Get an overview from the Intellectual Property Guide of the SABS. Related Information Developing a Business Plan The process of developing your business plan will help you think through the most important issues affecting the success of your prospective business. It is invaluable to communicate the merit of your plan to possible investors or to the bank when applying for finance. Related Information Registering a Business You need to choose a legal entity for your business such as a close corporation or sole proprietorship from which to operate. You need to understand the laws that govern what that legal entity can and cannot do. The following entities need to be formally registered: Close Corporation, Company, Non-profit organisation, Co-operative and Trusts. For more information about legal entities, please click on the links below. Close Corporation Company Partnership/Joint Venture Sole Proprietorship Non-profit organisations Co-operative businesses Co-operative Application Forms Taxation Businesses are liable to pay tax. Profits, employee wages, value addition and imports are all taxed. SARS provides a Tax guide for small business which spells out what is taxable. Become tax wise, understand how to avoid paying unnecessary tax Related Information
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