Planning The Basics Of Your New Business (Part 1)

Reach new heights

News And Articles

Planning The Basics Of Your Startup (Part 1)

Planning The Basics Of Your Startup (Part 1)

Table of Contents

Dr Thommie Burger is the Founder of JTB Consulting

Author

Planning to start a new business will involve spending money. Sometimes a lot of it. Now you’re planning to spend money. You’re planning all the material goods you may possibly need – from a pencil to your premises – and everything in between. This is the time to be conservative…and smart!

  1. Start-up expenses for a business can add up quickly, and almost always exceed projections. This is the time to be conservative. Wildly extravagant expenditures on everything from office leases to the latest and most expensive IT toy is clearly a  potential disaster in the making.
  2. Minimise your costs – and your risk – by making a hard, cold analysis of what you really need and being ruthless when it comes to crossing things off your list. You can always upgrade when your new business has started to make a profit.

Read More: The South African Entrepreneurial Safari

Your Location:

Your location should be your number one priority. Signing a lease and paying rent is a financial burden – but a part of doing business. Signing a lease and paying rent on the wrong location is a financial disaster – and can signal the end of doing business. There are certain criteria to consider when you are selecting a location. Ask yourself: 

  • What exactly does your business require from its location?
  • Are you convenient for your customers? Can they get to you easily? It’s no good being located in a place that is cheap to rent but inaccessible.
  • Parking is a vital consideration.
  • How about employees? Can they get there easily?
  • Have you room for inventory storage?
  • Does the location comply with laws such as zoning, safety or health, etc.?
  • How’s the security – for your business, your customers and your employees?
  • What about future growth? Will the present location still be appropriate?

List any negative aspects of your location that can affect sales. Try to find solutions. Reconsider if you cannot resolve the negative aspects.

Read More: The Misconceptions of Starting and Running your Own Business

Resist the glamour of high-profile buildings and locations! In most cases it is better to rent less expensive premises in another area – then move up to more up-market premises when your business starts to turn a nice profit. However, the opposite – getting too cheap a place – can also cause a problem. You might save money but find it doesn’t suit your business image or appeal to customers. If you are renting make sure you have a good, written contract lease agreement. It must specify all the details: length of the lease, rent increases, due date for rent, conditions, etc. it’s well worth running it by a lawyer before you sign.

Also think about the length of your lease. The cost of having to move (both financially and with regards to losing customers) if you have to relocate at the end of a short lease may be enormous.

Established in 2006, we have successfully written hundreds of bankable and world-class Business Plans for clients across 25 countries. As South Africa’s Leading Business Plan Company, we are confident that we would be able to assist you too. Kindly note that we also offer “Investor Pitch Decks”, “Excel-based Financial Models”, and “Proposal/Tender Writing Services” in addition to our Custom Business Plan Writing Service. Please visit our Services page for more information.

We look forward to being of service to you. Please feel free to contact our Founder, Dr Thommie Burger, on +27 79 300 8984 should you have any questions. He is also available via email and LinkedIn.

JTB – Your Business Planning Partner.

Share this article…

Recent Articles

SWOT Analysis and 50 Urgent Questions to Ask (Our Free Checklist)

SWOT Analysis and 50 Urgent Questions to Ask (Our Free Checklist)

Every business owner should conduct a regular SWOT Analysis to assess the company’s strengths, weaknesses, opportunities, and threats in relation to its competition. A SWOT Analysis helps evaluate where a company stands in a competitive market and what steps need to be taken for further strategic planning, helping decision makers draw a future roadmap for the company.

Top 3 Reasons Why A Business Plan Is Essential For SMEs

Top 3 Reasons Why A Business Plan Is Essential For SMEs

For entrepreneurs, especially small businesses, a Business Plan can act as a strategic tool to make informed decisions, especially better planning decisions, and meet short- and long-term business objectives. A business plan is often referred to as a blueprint or roadmap; without it, one can still travel, but with a map, one can reach a destination much quicker and easier. Companies rely on Business Plan Writing Services to keep businesses on track for a more detailed and strategic guide. Let’s look at how having a business plan can help your business in the competitive global market.

How to Hire an Effective Business Consultant

How to Hire an Effective Business Consultant

The role of a Business Consultant is often misunderstood. Some business owners see them as snake oil salesmen only out for their own good. In this blog post, we explore what exactly a business consultant does, how they can help you and some tips on how to find the right one for you.

What we do.

We are South Africa’s leading Business Plan Company providing world-class Professional Business Plans to local and international clients, ensuring total satisfaction at every step. With extensive industry experience and the latest market insights, our qualified team of Business Plan Consultants are the first choice of serious entrepreneurs.

Subscribe to our newsletter.

Stay informed and opt-in for our newsletter via email. We respect your privacy and we never spam.