Challenges facing new small business owners in South Africa
Small, Medium and Micro Enterprises in South Africa routinely face problems that threaten their chances of growing and becoming successful. BIZculture Services endeavors to dispel the accepted notion that 70 to 80 percent of new businesses fail to make their mark in today’s unpredictable market.
Not only do we assist aspiring entrepreneurs to develop their ideas, we also offer guidelines to help new business owners and managers identify their shortcomings and how to acquire essential skills, gain practical experience to successfully run the business, and also how to live below their means (cut unnecessary expenses, pay off debts, drop cash-draining liabilities, save at least 15 percent of your income). Consider getting a partner (to bring skills, expertise and contacts you lack into the business) and work alongside a mentor who has been through a similar start-up experience to coach you. Other obstacles that are likely to stand in the way of achieving success include environmental (competitors), financial (required capital) and lack of managerial skills.
South Africa has experienced millions of job losses in recent years, which has contributed greatly to the country’s high number of unemployed people. The importance of small business ventures in creating employment opportunities is huge. However, the problem of creating an unstable job market where workers almost anticipate joining the ranks of the unemployed 5 years down the line, which is the predicted lifespan of new businesses in an unstable economy. BIZculture recognizes that deficiency in the internal environment remains a major cause of failure of these business ventures; major areas of failure include lack of management skills, poor financial knowledge, and lack of proficiency in functional areas such as marketing and resource management.
What’s your tycoon potential?
When starting a micro or small business you are faced at the very outset with a simple but crucial task: taking stock of your present situation. This means that you have to look at your personal situation, and your strengths and weaknesses. The ancient Greeks recorded a piece of good advice: Know thyself. While it is important to recognize your assets such as education, experience, technical skills, appearance, personality and degree of initiative, it is equally important to know your inabilities, so that you are aware of areas you need to develop. Self-employment carries huge responsibilities not only to yourself but also to your family, employees, suppliers, customers and even your community.
Micro Business Plan: Start-Up The fast-track micro business plan is perfect for deciding whether or not to proceed with a new business [R2 000].
Business Plans for New Enterprises (Start-Up’s) A formal business plan forces the new business owner to think through the key elements necessary to start and run a business (i.e. financial aspects, sales requirements, etc.) and to build and service a client base (i.e. manpower needs, systems, etc.). [R5 000]. Please note, an additional fee is applicable should annual projections need to be included.
Turnaround Business Plan for a troubled business Most businesses encounter some rough spots now and then. Saving and rebuilding a troubled business and to prevent a bankruptcy filing requires that you identify the root cause of the problem and put together new business, sales/marketing and operation plans. It is important to involve investors and employees in the development of these plans. Ask for their input. Meet with key customers and vendors to inform them of the situation and how you plan to correct it. [R10 000]
Business Plan to rejuvenate the mature business (when growth stops) Established businesses today have a hard task maintaining sustainable growth and all are concerned that yesterday’s engines of wealth creation may fail and in effect reverse their prosperity. Converting a mature organization into one that is dynamic and capable of delivering innovative strategy requires the ability to initiate radical change in both strategy and organizational capability. However, change is sometimes painful, slow and immensely difficult. Effective rejuvenation is from within: management must learn to act and think differently. They must believe there is potential for change, new ways of operating, and new strategies; that to create better profits a firm must give better service to customers and better value to its staff. [R10 000]
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