Changing from CC to Pty Ltd

Topographical map of South Africa, continent v...

You probably know that under the new Companies Act 2008, CC’s (Close Corporations) can no longer be registered in South Africa.

This does not affect the about 1,500,000 CC’s already registered in South Africa (far more than Pty Ltd companies). If you already have a CC, you may keep it, retain your assets/property in it and run your business through it. You may change its name, members, accounting officer and other details, or you may sell the CC to someone else or convert it into a Pty Ltd company.

The way we see it, there should be no mad rush to change your CC into a Pty Ltd company unless:

  1. You prefer your business to look like a “(Pty) Ltd” company and not a “CC”
  2. You prefer the legislation for the new Pty as against the old CC legislation (which incidentally has been somewhat revamped)
  3. You are tired of putting the owners of the CC under “Members:” on your letterhead
  4. You’d prefer to list the “Directors:” on the letterhead and not the owners/ shareholders of the company which include parties (people, companies or trusts) who are not directors.

For more, email us on:

convertcc@corp.co.za

Buying a Shelf CC in South Africa

Would you like to buy a Shelf CC in South Africa?

Yes? Great! You’ve come to the right place!

There is only one problem: CC’s cannot be registered any longer in SA.

So most people purchase a Shelf Company – read more…

There are a few old Shelf CC’s floating around the marketplace and we literally only have one left – for more on this, email us at:

shelfcc@corp.co.za

Hope for small business

Anna Phosa's workers

Port Elizabeth small business owners were given a boost on Wednesday following a gathering where up and coming local entrepreneurs got the opportunity to grow their firms.

The Hope Factory, a hub for entrepreneurs in the city, hosted two events at North End in a bid to strengthen entrepreneurs’ capacity in growing and sustaining their enterprises.

Sipho Ntlangu, one of The Hope Hub entrepreneurs, said the programme had made a positive impact in terms of business growth.

The Hope Factory launched The Hope Hub a year ago with the purpose of helping small business owners to showcase their products.

“It also provided me with more exposure for business, as many people are now aware of the whereabouts of my business. There is a great potential to increase sales and to make profits,” said Ntlangu.

According to the Global Entrepreneurship Monitor study, there are few South Africans who try their hand at entrepreneurship and only 2.6% survive through the three-and-a-half year mark.

“Some of the reasons for this failure rate include a lack of skills, limited access to markets, no seed capital, a lack of work experience and a lack of confidence.

via Hope for small business | The New Age Online.

Small-business ministry coming

Greenhouse tomatoes

The development of small businesses — which industry players say is retarded by unnecessary red tape and lack of access to finance — is seen as key to reducing the country’s unemployment.

Official statistics put South Africa’s unemployment at about 25%. If people who have given up looking for work are included goes up to more than 40%.

via Small-business ministry ‘a step closer’ | Business | BDlive.

Small Business Congress

CAPE TOWN/SOUTH AFRICA, 11JUN2009 - Rob Davies...

The 37th International Small Business Congress, taking place in Johannesburg from 15-18 September, will help to chart the way for small business development in South Africa, with a particular focus on emerging industries.

Briefing journalists in Cape Town on Monday, Trade and Industry Minister Rob Davies said the congress would provide a platform “to benchmark and draw lessons from both the developed and developing countries with a view of sharpening policy development and high impact programmes in the South African SMME sector”.

It will be the first time that the congress is held on the African soil, and more than 1 000 international delegates are expected to descend on the Sandton Convention Centre to discuss the future and role of SMEs in the global economy.

International Small Business Congress president Catherine Swift will be joining speakers from South Africa, Canada, England, Nigeria, Malaysia, Northern Ireland, Cameroon, Japan, France, Mauritius, Sierra Leone and India.

The theme of the congress will be “Fostering small business in new and high-potential industries worldwide”.

Davies said this theme was “of particular importance to South Africa, especially as we widen the market for South African goods and services through stronger focus on exports to the region and other economic groupings such as Brazil, Russia, India, China and South Africa (BRICS).

via Spotlight on small business development – SouthAfrica.info.

Think of yourself as a start-up company

Getting my feet wet

The January 2012 cover story of Fast Company magazine was all about Generation Flux.You’ve heard of Gen X, Gen Y and more, but what is Generation Flux?

Our business world has been through some tumultuous times: Recessions, financial meltdowns, the massive disruption of technology, natural disasters, nations defaulting on their debt, the Arab Spring, the Occupy Movement and much more.

For every catastrophe and massive shift emerge new breakthroughs and advances. During these past few years, we’ve also seen some of the most interesting companies flourish and grow Apple, Facebook, Lululemon, Amazon, Twitter and more, we’ve seen medical advances at an unprecedented pace and the introduction of new technologies that will forever change our future. In short, this is a time of flux … uncertainty. This makes it hard to chart a course — let alone pull together a five-year plan.Have you taken a look at your investment portfolio recently? Do you honestly think that there is a reliable long view out there? It is with this sense of pandemonium that Fast Company has dubbed us — all of us — Generation Flux.

“To thrive in this climate requires a whole new approach,” states the magazine’s article, This Is Generation Flux: Meet The Pioneers Of The New And Chaotic Frontier Of Business. “ … some people will thrive.They are the members of Generation Flux. This is less a demographic designation than a psychographic one: What defines GenFlux is a mindset that embraces instability, that tolerates — and even enjoys — recalibrating careers, business models, and assumptions. Not everyone will join Generation Flux, but to be successful, businesses and individuals will have to work at it. This is no simple task. The vast bulk of our institutions — educational, corporate, political — are not built for flux. Few traditional career tactics train us for an era where the most important skill is the ability to acquire new skills.”

Are you freaked out yet?

via Joel: Think of yourself as a start-up company.

5 Biggest Challenges Facing Your Small Business

Small Business Summit 2011 Pre Event Photo 1

Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges that face every business whether they are large or small. These include things like hiring the right people, building a brand and so on. However, there are some that are unique to small businesses – ones most large companies have grown out of long ago. We’ll look at the 5 biggest challenges in this article.

Client Dependence

If a single client makes up more than half of your income, you are more of an independent contractor than a business owner. Diversifying the client base is vital to growing a business, but it can be difficult – especially when the client in question pays well and on time. For many small businesses, having a client willing to pay on time for a product or service is a godsend.

Unfortunately, this can result in a longer term handicap because, even if you have employees and so on, you may be still acting as a sub-contractor for a larger business. This arrangement allows the client to avoid the risks of adding payroll in an area where the work may dry up at any time. All of that risk is transferred from the company to you and your employees. This can work out fine provided that your main clients have a consistent need for your product or service. However, it is generally better for a business to have a diversified client base to pick up the slack when any single client quits paying.

Money Management

Having enough cash to cover the bills is a must for any business, but it is also a must for every individual. Whether it is your business or your life, one will likely emerge as a capital drain that puts pressure on the other. In order to head off this problem, small businesses owners must either be heavily capitalized or be able to pick up extra income to shore up cash reserves when needed. This is why many small businesses start out with the founders working a job and building a business simultaneously. While this split focus can make it difficult to grow a business, running out of cash makes growing a business impossible.

Money management becomes even more important when cash is flowing into the business and to the owner. Although handling business accounting and taxes may be within the capabilities of most business owners, professional help is usually a good idea. The complexity of a business’ books go up with each client and employee, so getting an assist on the book keeping can prevent it from becoming a reason not to expand.

Fatigue

The hours, the work and the constant pressure to perform wears on even the most passionate individuals. Many business owners, even successful ones, get stuck working much longer hours than their employees. Moreover, they fear that their business will stall in their absence, so they avoid taking any long breaks away from work to recharge. When fatigue sets in, the weariness with the hours and the results can lead to rash decisions about the business, including the desire to abandon it completely. Finding a pace that keeps the business humming without grinding down the owner is a challenge that comes early (and often) in the evolution of a small business.

Founder Dependence

If you get hit by a car, is your business still producing income the next day? A business that can’t operate without its founder is a business with a deadline. Many businesses suffer from founder dependence, and this dependence is often caused by the founder being unable to let go of certain decisions and responsibilities as the business grows. Meeting this challenge is easy in theory – a business owner merely has to give over more control to their employees or partners. In practice, however, this is a big stumbling block for founders because it usually involves compromising (at least initially) on the quality of work being done until the person doing the work learns the ropes.

Balancing Quality and Growth

Even when a business is not founder dependent, there comes a time when the issues from growth seems to match or even outweigh the benefits. Whether a service or a product, at some point a business must sacrifice in order to scale – this may mean not being able to personally manage every client relationship or not inspecting every widget.

Unfortunately, it is usually that level of personal engagement and that attention to detail that makes a business semi-successful. Therefore, many small business owners often find themselves tied to these habits to the detriment of the company’s growth. There is a large middle ground between shoddy work and an unhealthy obsession with quality, so it is up to the business owner to navigate the company’s processes towards a compromise that allows scale without hurting the brand.

The Bottom Line

These are challenges, but not death sentences. One of the worst things a would-be-business owner can do is to go into a small business without considering the challenges ahead. We’ve looked at some things that can help make these challenges easier, but there is no avoiding them. An important step in overcoming a challenge is knowing the size of that challenge. Besides, a competitive drive is often one of the reasons people start their own business and every challenge represents another opportunity to compete.

via 5 Biggest Challenges Facing Your Small Business.

SA business growth choked by rules and red tape

Singapore Chinese Chamber of Commerce & Indust...

OVERREGULATION and red tape are the biggest constraints to business expansion in SA, according to a survey by accounting, audit and advisory firm Grant Thornton.

The survey was based on the views of CEOs, chairmen and business owners in the fourth quarter of last year.Red tape was now as pervasive a problem in SA as in other Brics Brazil, Russia, India, China and SA countries, Grant Thornton Durban managing partner Deepak Nagar said yesterday.

The survey found 37% of privately held business owners in SA cited red tape as their chief constraint, followed by a lack of a skilled workforce, at 36%.

Durban Chamber of Commerce and Industry CEO Andrew Layman said the results were “spot on” and SA’s regulatory environment, for small businesses in particular, needed to be reviewed.

The increasing complexity of regulations such as additional tax or governance requirements, labour issues, black economic empowerment, the time taken to register companies or change directors’ names was stunting the growth of business, Mr Layman said.

The second-biggest constraint to business globally was reduced demand for products — the effect of economic problems in the US and Europe. In SA, the second-biggest constraint to business was a shortage of skilled staff, said Mr Nagar.

Keith Brebnor, CE of the Johannesburg Chamber of Commerce and Industry, said it had become “very intimidating” for young people to start a small business in SA because of the onerous regulatory environment. Dealing with crime and a lack of skills also added significantly to the cost of doing business in SA, he said.

via BusinessDay – SA business growth ‘choked by rules and red tape’

How to cover your small business

Glass: damage to shop fronts and sign writing at your premises could be costly to repair. Accidental damage to the glass would be covered;

Fidelity guarantee: this is where the business insures itself against losses as a result of employee fraud;

Accounts receivable: a business can insure possible losses if, for example, the business is destroyed in a fire, no records of accounts have remained and the business is unable to establish the amount due to them;

Goods in transit: many businesses transport and deliver goods produced or sold. Make sure that you are covered in the eventuality of accidents or hijackings that could damage or destroy the goods being transported.

via How to cover your small business – Business LIVE

SA to host 2012 business congress

Image from the Central Business district of Jo...

Small business in South Africa will get a boost next year when the country hosts one of the biggest international business congresses in Johannesburg.

Representatives from the US, Europe and the rest of the world will gather at the Sandton Convention Centre between 15 and 18 September 2012 for what will be Africa‘s first International Small Business Congress (ISBC).

The congress, which is hosted in partnership with The City of Johannesburg, Foundation for African Business and Consumer Services, Khula Enterprises and Finance and the Small Enterprise Development Agency, will showcase activities surrounding small business development in South Africa and around the world.

According to 2012 congress director Septi Bukula, the focus of the conference is to expose small and medium enterprises (SMEs) to business opportunities in South Africa and in different parts of the world.

via SA to host 2012 business congress – MediaClubSouthAfrica.com