The Complete Guide to Starting a Business

Thinking about starting your own business? Congratulations, you’re about to take your first steps into the exciting world of entrepreneurship! It won’t be easy, but if you follow the steps in this guide, the rewards will be worth it.

First things first, give yourself a pat on the back. The entrepreneurial bug bit you and you said: “Yes, let’s give it a shot!”.

It means that you’re considering joining the approximately 2 million small businesses in South Africa. These businesses are the powerhouse of our economy. As is the case all over the world, an economy with a healthy small business ecosystem is a stronger economy.

Are You Ready to Start a Business?

Starting a business isn’t a shortcut to success. It’s a long road, filled with sacrifices. It’s late nights, early mornings and saying ‘no’ to those weekend plans.

So, before you head down this road, ask yourself:

Am I ready to commit time, effort, and energy?
Am I willing to face setbacks and keep going?
Do I have the mindset to take responsibility for success and failure?

There’s never a “perfect” time to start. What matters is your readiness to learn and act. So, if you have it burning inside you, chances are you have the drive and passion to bring your dreams to life!

Planning Your Small Business

Founding Father of the United States, Benjamin Franklin, once said: “If you fail to plan, you plan to fail”. Among other things, Franklin was an inventor who famously flew a kite in a storm to prove that lightning was electricity.

While Franklin took a serious risk which could have brought the statesman’s career to a shocking end (ba-dum-tis!), he planned the experiment meticulously to ensure it didn’t end in disaster.

If you’re wondering, he stood on an insulator and stayed dry under cover to avoid electrocution. Others, who weren’t as savvy, met a crispy end. The Russian physicist Georg Wilhelm Richman was one such unlucky customer.

The point being that Franklin’s experiment is very much like starting a business. It’s a risk, but if you plan well, you’ll stay safe and dry. If not, you may get struck down before you get started.

Taking the Right Approach

There are a number of ways you could go about planning to start your own business. Perhaps you have your own approach? That’s great!

We’re fortunate enough to work with small businesses every day. So, we’re in a position to see what works well. With this in mind, we’re going to share the way that we’ve seen work time and time again.

Steps for Starting a Small Business

Find the right idea

Test your idea

Choose your business model

Write your business plan

Name your business

Within each of these points, there are multiple action points which can make or break your business. It may seem like a lot of work (and it is). But, if we break it down piece-by-piece it becomes much more manageable.

Let’s go through the planning process step-by-step.

1. Find the Right Business Idea

Too often when starting a business, first-time entrepreneurs look for a product or service to sell. This can work, but in our experience, successful businesses are the ones that solve a problem.

Seth Godin is one of the world’s leading marketers. He literally wrote the book(s) on marketing strategy. Within these sacred marketing texts, Seth advocates time and time again for building the foundation of your business on solving a problem.

For Seth, his day-to-day problem solving is intertwined with Fortune 500 companies. For you, the recipe is a bit simpler. And it’s all based on observation.

Starting in your community or workplace, ask yourself:

What is a problem that people in this environment are experiencing?
How could I make their lives easier?
How could something be done better?

Once you’ve found a problem, you’ve taken the first step towards starting your business!

READ THIS: Take a look at Yolisa’s article on Finding the Right Business Idea for more expert insights, tips and tricks to help you along the way.

This is one of the most important steps on your business journey. It’ll make or break your business success. So, take your time. Generate a list of business ideas and review your list to find the idea that works for you.

Once you think you’ve found an idea, it’s time to move to the next step.

2. Test Your Business Idea

By this stage, you’ll be raring to crack on with your branding and give your business wings. Hold up. There’s a critical hurdle you need to conquer beforehand.

It’s imperative that you test your business idea. And there’s a simple reason why. It’s a common mistake that most first-time business owners make.

Ever heard of tunnel vision? It’s what happens when you get wrapped up in the inner world of your business and forget about a critical component in your business success: your customer.

By testing your idea before going to market you’ll be able to:

Figure out whether your business really solves a problem
Gain valuable insight from your potential customer to improve your business idea
Save considerable time, money and effort on an idea that may not work.

Approximately 20% of businesses fail in the first year. One of the reasons why is that they don’t take the time to understand their customer, and how their business improves their customers’ lives.

Don’t let that discourage you. With proper market research, you can find out if your idea is worth pursuing or if you need to go back to the drawing board.

How to test:

Ask for feedback: Start with friends, family, or community members. Encourage honest opinions.
Run surveys: Use tools like Google Forms (free), SurveyMonkey, or TypeForm.
Host focus groups: Engage potential customers in small discussions to learn more.

READ THIS: Take a look at Fezile’s article on Testing Your Business Idea. You’ll also find a FREE market research template with questions you can ask to get valuable feedback.

3. Choose Your Business Model

There are various types of business models you can choose from. Take a quick glance at South Africa’s booming ecommerce market and you’ll see the wealth of opportunities for small businesses.

According to Rand Merchant Bank, the South African ecommerce market is expected to grow by 150% in the next 5 years. That’s a projected value of R225 billion!

Fancy a slice of the ecommerce market? It’s now easier than ever to take your business online. If you’re more old school, don’t worry. There are plenty of other models you can try:

Ecommerce – Sell online, reach a wider market
Freelancing – Offer your skills on demand
Consulting – Share your expertise for a fee
Brick & Mortar – Set up a physical store
Affiliate Marketing – Earn commission promoting products
Digital Products – Sell ebooks, courses, guides
Mobile/Remote Services – Offer services on the go or from home
App or Software – Build tech that solves specific problems

Choose a model that aligns with your lifestyle, budget, and product/service.

4. Write a Business Plan

Earlier, we discussed how starting and running a business is hard work. When done right, a comprehensive business plan can radically increase your chances of success.

Sadly, it’s the step that many first-time business owners skip altogether. It’s only natural to want to get your business off the ground as soon as possible. Nevertheless, it’s important that you take your time. You’ll be glad you did in the long run.

Writing a business plan might seem daunting at first. Break it up into manageable pieces and work through it at your own pace. There’s plenty of time to run your business when you get the basics right.

What Should your Business Plan Include?

At a top level, a basic business plan should include:

Executive summary
Owner & business details
Market and competitor analysis
Business structure
Marketing strategy
Financial forecast and capital needs
Action plan and future goals

It’s also advisable to create an impactful one page summary of your business plan. Think of this document as your elevator pitch. How can you convey the key information about your business in a simple, succinct summary?

You’ll use this to capture the attention of potential investors before you share your full business plan.

READ THIS: Not sure where to get started with writing a business plan? Read Yolisa’s article to become a pro. It also includes a FREE template to help you get started.

5. Name Your Business

Congratulations! You’ve made it this far. By this stage, you should have a good idea of your business, your market, your customers and your financials. Now it’s time to get the creative juices flowing and name your business.

No doubt that throughout your journey, you’ll probably have thought of a name or two. Perhaps you’ve thought of twenty? Maybe one hundred? Perhaps you’re still struggling to bed down the perfect business name?

Wherever you’re at, finding the right name is vital. While it might be tempting to use a business name generator, steer clear of these gimmicky tools. Rather invest the time in finding a name that is personal and means something to you and your customers.

Coming Up with a Business Name

During your search for a business name, it’s important to ask yourself:

Is my business name easy to pronounce?
Will people find it easy to remember?
Is it easy to write?

Finally, you’ll need to find out if your name is taken. A simple Google search of your name should provide a clear indication of if it’s available or not. Additionally, there are tools you can use to find out more.

6. Register Your Business

There are millions of unregistered micro-enterprises in South Africa. Considering that you’ll need to pay a fee to register a business, it’s no surprise that entrepreneurs commonly ask: “Do I need to register my business?”

Seeing as the fee to register your business is nominal, if you’re considering serious business growth, registering your business might not be a bad idea.

The primary benefit to registering your business is the legal upside. Once you're registered, your company will enjoy the following benefits:

Legal protection – others can’t claim your business name as their own
Trust – your customers will view your company as a legitimate enterprise
Funding – It’ll be easier to secure investors

From a tax perspective, you can register your business without having to register for VAT right away. Provided that your annual income doesn’t exceed (or is estimated to exceed) R1 million, you can continue to operate and get off the ground before you complete your business tax registration.

7. Build Your Brand

Your brand is what makes your business recognisable and memorable. It’s your first impression. It’s your opportunity to communicate, visually, what your business is all about.

When you look at it that way, it makes sense that your logo can make or break your small business in the early days. So, you need to be careful who you trust with your logo design.

A good brand includes:

A distinctive logo
A consistent tone of voice
A clear value proposition
Cohesive messaging across platforms

Branding is also so much more than a logo. It filters into every aspect of your business. It captures your tone and personality and tells your customers what’s different about your company.

Why is branding important?

Your customers know what to expect
You’ll begin to forge an emotional connection with customers
It makes you distinctive; makes you stand out
Branding offers cohesion across all channels
Staff are more likely to align behind strong values
It generates more referrals over time

Read This: The Guide to Small Business Branding

8. Market Your Business

Once you’ve established your brand personality and you have a slick new look, it’s time to introduce your business to the world. There are a number of ways you can do this. And, critically, some will work for your business, and some won’t. So, you’ll need to be smart about how you spend your time and budget.

Most would agree that nowadays, having a website is a must for small businesses. In the past, a website came with a hefty price tag, but now you can get started quickly and easily with a website builder. Here’s how you can build your first website.

Once your digital home is up and running, it’s time to throw some weight into your marketing.

Marketing channels you can explore:

Social media – Great for engagement and brand awareness
Website – Your digital home (use affordable builders to get started)
Email marketing – Stay in touch with potential and loyal customers
Google Ads & SEO – Reach people actively searching for what you offer
Local media – Community papers, posters, or radio (if budget allows)

For most small businesses, social media is a good place to start. It gives you an opportunity to build a following and connect with your customers. It’s also much more affordable than traditional marketing channels.

9. Make Your First Sale

It’s been a long road. You’ve brainstormed multiple ideas, tested them, gone back to the drawing board, written a business plan, named your business, branded and started marketing. Now, it’s finally time to make a sale!

Why Your Small Business Needs a Card Machine

Instead of expensive bank systems with monthly fees, consider flexible options like our iK card machines for affordable, pay-as-you-go options.

Contactless payments (Tap & Go) make it safer
It’s more secure than carrying cash
Convenience – it offers shoppers more ways to pay
It makes your business seem more legitimate.

Congratulations on Starting Your Business!

If you’ve made it this far you’ve already surpassed the majority of people who want to start a business but never get going. Remember, this is only the beginning. There will be tough times ahead, but if you stick to the plan and believe in your idea, success won’t be far away!

In the words of Virgin Founder Richard Branson: “A big business starts small”. You’ve got this. Good luck!

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