From Corporate to Entrepreneur – sharing my
story & learnings
3)
Getting down to
business - Quarter 1 – key learnings (Part 1)
The first 3 months was such a huge learning and
leap of faith. During this time I often felt wow what just happened … Anybody
who thinks that owning and managing your own business is easy and you have lots
of time on your hands, think again. You work hard and I mean you work hard
often both physically and emotionally. So be prepared for one of the most
wonderful journeys … owning and managing your own business
So many people think & dream of their own
little coffee shop a dream come true … yes it is a huge privilege but hey you
need to know what it would entail and what it is going to take. Often people I
speak to have a total different and idealist idea about it and are not prepared
of the road ahead. For this reason I decided to share my story and the
learnings from owning and managing a small coffee shop – as it can be such a
wonderful & blessed experience
The first three months flew by in a nick of
time! Very busy packed days and long hours was my everyday routine as I tried
to get to grips of the business and how to take it forward.
A good surprise, was to loose so much weight in
the first months … this by just walking around and being on my feet most of the
time … remember I use to work for a Corporate before.
So what was the learnings for the first 3 months?
1) Month
1 run business on similar basis as previous owner: As mentioned in previous blog, try your utmost
best not to change things immediately, (except for things that are wrong and
needs to be changed immediately) check it out make notes and jot down ideas on
how you’d like to improve things from second month. In month two gradually
start minor changes and tweaks. Update your business plan as you go along …
remember your business plan is a dynamic document http://www.madtrainingsolutions.co.za/business_basics_business_plan.html
2)
Company
registration: Choose a name not taken before for your company,
do the search on CIPC website on http://www.cipc.co.za/
Make
sure you choose registration of your company in the most appropriate way as
this will have tax implications going forward. For example the difference between
registering a Sole proprietor vs Ltd Pty company. See more info on different
types of companies in South Africa and tax implications http://www.madtrainingsolutions.co.za/business_basics_types.html
Check with your accountant as to which,
for your circumstances, would be the best option. Do your homework
3)
Bank
account: Choose
the most appropriate Business Account as the packages differ a lot and your
choice will depend on how your business will run day to day. If you are going
to do a lot of cash deposits check the costs as this vary a lot as well. Make sure
you vary your trips to the bank … go at different times and different days. Check
what the Business account package include as extras. If you have a merchant
machine (credit card) remember the commission vary a lot, choose the lowest as
this will deplete your profits. Also make a decision on what the minimum
transaction amount on the cards would be for your business.
4) Ensure
you have cash flow: Majority of companies fail in the first 6
months due to lack of cash flow. When opening your bank account place a buffer
amount in your account. This should only be used in case of emergencies and
should only be taped into in the beginning of the month to serve as a buffer as
profit start coming in. Remember in the beginning of the month you have to buy
fresh stock this needs money. Keep the amount consistent for example if you
started with a R 10 000 buffer keep the R 10 000 buffer as a minimum
5)
Web
/ email / phone: one of
the things we often forget when we work for a Corporate is how convenient it is
if some-one (in IT) takes care of all of this … a bit more difficult to do all
of this on your own if you are not very technical inclined. But hey there is
very good service providers out there and they are very helpful. Make sure you
have all the needed IT set up and equipment. Useful tip set up a small Wi-Fi
router in order for you to be able to use multiple devices it really makes your
life easier as well as it really is very cost effective
More
to follow on learnings from first 3 months …
Important in the first three months it is not
all about what you look at but all about what you can see … important quote from Henry D Thoreau
