It is no doubt that in South Africa it has become so much easier to formalise your business. I am writing this blog with a purpose of highlighting the steps necessary to take in order to start operating and building a reputable brand.
Step 1. Company registration must take place, so you can have an identity for your business.
The company registration documents will have the business name, registration number, financial year end, business registration date, business address, the directors, etc. With the legal entities I have just mentioned there is two that I want you to know by heart. That is the business Financial year end and the company registration date. Why? The Financial year end = the month that you have chosen when you register your business that you will submit your tax returns. Company registration date = Anniversary of the business, you must submit the CIPC AR every anniversary of your business. What happens if you fail to submit the returns within these periods?
Tax will have your business as non – complaint and impose additional penalties for non / late submissions.
With CIPC – The commissioner can at anytime deregister the company or add penalties for late or non submission.
Step 2. Tax number
Once the company is registered at the CIPC, information get sent to SARS to generate the new company tax number. Thus no need to visit Sars to obtain the company tax number, it automatically get registered as two government systems communicate with one another.
Step 3. Open a business bank account
When you formalise your business you need to understand that a business on its own is a juristic person. What does that mean? It means that it is recognized as an entity with rights and obligations similar to those of a natural person. A company can own property, enter into contracts, and be held liable for its actions, all distinct from its shareholders. Thus even the business finances must be separate from that of the founder.
Step 4. Create your business logo
You will need to have a graphic designer to professionally create a logo for your business. Though a logo is not a legal entity you must have it in order to enhance the business ‘s identity for customers to recognize your business in a form of graphics. The logo design you will have it on all your advertising materials and company documentations such as the tax invoice, billing statements and letterheads.
Step 5. Tax invoice
Please do not overlook the importance of creating source documents for your business. You might not have resources to subscribe for an invoice or accounting software but that is never an excuse for not having a tax invoice for your customers. An invoice is a proof that a sale / transaction has occurred. Use your device to download an invoice template from the internet. Choose the one that is user friendly for you and populate your business details on. Your bank account, payment terms can also be detailed on your invoice.
N. B. Prior you send them to your customers please convert it into a PDF so it can be a professional document.
There are graphic designers that can assist with these templates by the way. Just ensure that the template has all the required details that form a valid tax invoice by Sars. The format must be the one that is recognized by the South African Receiver of Revenue. Please check their website to learn more on this.
Step 6. Email adress for the business
It is a given that you might not be financially ready to create a website for the business but you can at least create the business domain so you can have a professional email adress for the company. Find a company that can assist with this at a very reasonable price. They will assist maintain an host the domain until you are ready to have the website designed for you. Have a dedicated business contact details for the business. This include the telephone number and the email addresses. Give your business a trustworthy and professional look.
Step 7. Create Social Media platforms and a website
Customers would like to authenticate the validity of the business thus social media platforms can assist with that especially if you are still starting and does not yet have funds to have the business website designed. It gives the customer a sense of relief when they can be able to trace your business. Your social media platforms will be utilused to advertise your work, and give exposure to clients all over the world. Customers need to know about you, and most will find you on social media platforms.
Step 8. Start advertising your business
Every business need a customer to exist. Find them and sell to them. You can use designing app on your device such as canva to create the not so complicated designs to assist advertise your business. Put your brand out there. But equally, be mindful that not all of us are equipped with creating beautiful designs. Have a graphic designer that will help you build a reputable business. You don’t want to have untidy and clumsy designs exposed to your customers. Take it as packaging. The customers must be attracted to the packaging first so they can be interested in the product or services. Explore various ways of marketing. Do not overlook the traditional methods of marketing because you are easily accessible on the internet. Old traditional ways of marketing your business still works. Create awareness for your brand. Things like pamphlets distributions, word of mouth, networking, etc.
Step 9. Build systems and create organizational culture
You need to have a unique way of running your business especially when you are still alone in the business. This way you are building an organizational culture so tomorrow when you have extra hands Ina form employee, the inherit the same culture. Things like no sale happens in your business without an invoice issued to a customer. Giving customers a great service, simple and soft skills such as mannerisms plays a big role in building an organizational culture. Creating strict communication platforms as well.
Step 10. Create a blog
WordPress has free templates you can utilise to build a blog. Whether you are selling products or rendering services, use a blog to teach customers about your business in more broader words. You can share your blog address and posts across your social media platforms, and your contacts. It is a more cheaper and efficient way of talking about your business.
Compiled by Ms. Dikeledi Seoloane on behalf of Matsobanemetja Business Consulting (Pty) Ltd – Registered Accountant and Certified Tax Practitioner.
Matsobanemetja Business Consulting (Pty) Ltd is your accounting partner that you can entrust with the bookkeping function, right up to financial reporting. We helps you keep accurate records of your business finances.
We have well trained and qualified staff that manages the aspect of both business and individual taxes.
We are the fast growing accounting service-providing agency in South Africa and across the globe.
If you need a consultation with us with regards to your business, any type of business – please reach out to us by email hello@matsobanemetja.blog
Matsobanemetja Business Consulting (Pty) Ltd offers a wide range of bookkeeping and accounting services, tailored to your business needs at an affordable price.
You may please inquire with us by sending an email to enquiries@matsobanemetja.co.za
“Start where you are. Use what you have. Do what you can.”
– Arthur Ashe
Matsobanemetja Business Consulting Pty Ltd 