Small businesses are a critical component of the South African economy. They account for 52% of the country’s GDP, contribute millions in tax revenue and help address the nation-wide unemployment problem by creating more jobs. The government does acknowledge this to some extent and has made some effort to support their growth – but more needs to be done.
The Department of Small Business Development launched in 2014. Its aim is to support South Africa’s entrepreneurial community. However, the initiative hasn’t quite achieved its objectives and, according to Xero’s 2017 State of Small Business report, only 4% of small businesses feel that the department has helped their organisation. A surprising 89% say it is has not helped their businesses in any way.
The reality is, the current national and global economic climate is putting South Africa’s small businesses under immense pressure. They require specific attention and support. The Xero report has gathered the top five priorities – as identified by South Africa’s small business owners.
1More funding options
Almost half (48%) of small businesses would like to see more help from the government with regards to funding. Currently, 85% of South African start-ups are self-funded. This route requires personal resources that are out of reach for many would-be entrepreneurs. And even those who do manage to fund their own companies, won’t necessarily have enough to grow their businesses to their full potential.
Related: Smart Money For Small Businesses
Access to outside funding options is thus crucial. If the government makes more money available to small businesses through subsidies and grants, then more new companies will be able to launch – and grow.
To limit the number of South Africa’s successful entrepreneurs to those with enough money to fund their own companies, perpetuates economic inequalities, frustrates individual ambitions and does little to help the country’s progress.
South Africa is a country of rules. Our regulatory environment is notoriously restrictive and 44% of entrepreneurs would like to see less red-tape. It’s not necessarily the regulations themselves that are the problem – but rather the level of bureaucracy. The government expects full compliance, yet offers little official assistance to help businesses navigate the corridors of power.
Small business owners, who typically don’t have much time to spare, have to spend valuable hours travelling to and from various government agencies and departments. The issue is the current lack of co-ordination between these offices and their individual legislative interpretations. Entrepreneurs are often shunted from one to the other, seeking a signature here and a stamp there – only to be told that they’ve missed a step and have to start at the beginning.
Compliance is of course, crucial. However, small business growth should not be interrupted by unnecessarily obstructive rules and regulations. If the government would like to boost the economy even further, it needs to create a legislative environment in which small businesses can thrive.
3Offer tax breaks
High taxes keep 16% of South Africa’s entrepreneurs up at night and 42% would like the government to offer tax breaks. Prohibitively high taxes can hurt the country’s economy: Businesses move overseas to more tax-friendly locations and take jobs and revenue with them.
Tax breaks benefit both the small business community and the government. They make it more affordable for would-be entrepreneurs to start a business. And, as more companies launch, tax revenue increases.
4Improve access to finance
Access to finance is a recurring issue. With so few subsidies and grants available, small businesses battle to secure the funding they need to grow. Banks are hesitant lenders, especially when it comes to start-ups – and 35% of entrepreneurs look to the government to help them access the financial solutions they need.
The good news is, the government can help. The Department of Trade and Industry, along with its various satellite organisations, offers loans with flexible repayment terms and lower interest rates. Of course, this doesn’t meet the growing demand, and more finance options need to be made available to help entrepreneurs get their businesses up and running.
The high unemployment rate in South Africa is compounded by a severe skills shortage. Small businesses need very specific skills and have to hire carefully – the wrong recruit can become an expensive mistake. Too many entrepreneurs struggle to find the right people with the experience and skills that they need – which limits their growth potential.
Almost a quarter (22%) of small businesses believe that the government needs to invest more in education. While this is no short-term solution, it is a necessary step towards building South Africa’s talent pool and safeguarding its economic future. If this doesn’t happen, neither the companies nor the country will be able to function at maximum efficiency.
The government has much to gain from working in the best interests of the small business community. The sooner the two parties are on the same page, the better for the economy.
What Presentation Skills Do Small Business Owners Need?
Presentations are vital to small business owners who want to attract and retain new clients, so if you are looking to improve your skills in the area, read on below for some simple presentation tips and a list of presentation skills that every business owner should have.
Being a small business owner means that you need to be confident in yourself and in your abilities. But, when it comes to business presentations, this confidence often fizzles out and is replaced with nerves and anxiety. Presentations are vital to small business owners who want to attract and retain new clients, so if you are looking to improve your skills in the area, read on below for some simple presentation tips and a list of presentation skills that every business owner should have.
The ability to think strategically
Rather than thinking of your presentation as a simple set of Powerpoint slides, you should think of it as part of your marketing efforts. This means that you will need to have the ability to think strategically about your presentation.
Every time you prepare your presentation, you should have this structure in mind before you go up to speak:
- What do I want people to remember at the end of my presentation?
- What is the next step my audience should take once I am finished?
- How can I gain my audience’s trust?
Gaining your audience’s trust is vital to the success of any presentation, as it allows them to immerse themselves in the presentation, which makes it easier for you to create a cohesive marketing strategy based off of this presentation. You already know your ideas will be accepted and appreciated.
Control over body language
Being able to control your body language in a stressful situation is key to any presentation success. Many presentation tips include taking a deep breath before going onto the stage, to quell any nerves, and practising in front of a mirror for a week before the big day to see if you have any nervous tics that you need to control.
Nervous tics can include anything from playing with your hair, tapping your fingers on a nearby surface, crossing and uncrossing your arms and other such anxious movements. If you are giving a presentation, these tics can become distracting to the audience, so you need to be able to control your body language in order to appear calm, cool and collected in front of your audience.
Strong communication skills
Standing up in front of a group of people can be nerve-wracking and this can lead you to forget your speech and fumble over your words, leading to a disappointing presentation. You will need to build up your communication skills by practising your speech or presentation regularly before you step up on stage, so be sure that you have clearly outlined notes to read from.
However, there is a bit more to it than simply memorising a script. In order to remember your material and make it ‘flow’ naturally, you will need to understand the information you are trying to communicate, including the following:
- The information you want to cover in your presentation, including statistics
- The flow or sequence of the material you are speaking on
- The goal of the presentation
- Any questions your audience might ask
Understanding the material will help you to remember it and explain it to anyone who might have questions. Speak as though you are speaking to a friend and you will find that your presentation builds a natural flow all on its own.
A charismatic presence
While this is more of a personality trait, having a presence is vital to the success of any client or conference presentation. Building your presence before your presentation will ensure that it is a success and that you leave your audience satisfied and their interests in your company piqued.
Having a charismatic presence means that you are able to express vision and give people a reason to be inspired by your presentation. You can achieve this by speaking about your success in terms that are transferable to others, such as providing tips on how to start your own business or providing relatable advice for entrepreneurs who have hit a rough patch in their business. Be sure that you do not use too much jargon, as this will diminish your presence and make you seem un-relatable.
Presentation tips for success
There is nothing more embarrassing than falling up or down the stairs so it is important that you know your venue before you set up your presentation. Ask the venue owners if you can have some time a day or two before you are presenting so you can familiarise yourself with the entrances, exits, where the podium is and how the sound and projector system works.
Too many people use slides to read their presentation off of rather than using them to augment their speech. When you put slides together, think like an artist and use them to show graphs, visuals and key points rather than having your entire speech on them, word for word. Your audience will appreciate a visually creative display rather than a boring slideshow with of your notes.
Even SMEs Can Use Big Data: Here’s How
If entrepreneurs are brave (and forward-thinking) enough to take the plunge into big data, there are many business advantages to be gained… especially before everyone else catches on.
Big data has for years held a reputation as a business tool that only large corporates have the time, money, and human resources to use effectively. But, as is so often the case with technological disruptions – what once seemed unattainable is becoming sleeker, faster, more affordable, and more user-friendly than ever before. In fact, it’s not a stretch to say that with strategic usage, even small businesses can gain as much advantage from big data as any Fortune 500 company.
To start with, what is big data? Organisations deal with data every day, from customer profiles to supply chain processes and sales figures. Big data takes this operational information-gathering to the next level. Multiple data sets are drawn together to create a large resource of facts and figures, which (and here’s the most important part!) are subjected to complex analysis to pluck out useful insights that enhance business operations.
Traditionally, SMEs haven’t delved much into big data. When you’re busy trying to build a successful business from the ground up, submerging yourself in statistics probably sounds more like a hindrance than help. But times have changed, and over the years, capitalising on big data has become a lot easier and more budget-accessible for SMEs. No need for dedicated data managers and unaffordable analytics platforms.
In fact, over 70% of respondents to a global survey of small businesses found that the adoption of this type of technology exceeded their expectations. Closer to home, 27% of SME decision-makers expect to be using big data within the next five years. If entrepreneurs are brave (and forward-thinking) enough to take the plunge into big data, there are many business advantages to be gained… especially before everyone else catches on.
A detailed understanding of your customers
You may think you have a good picture of your customers, but inevitably you’ll encounter blind spots at some point. Big data can fill in the blanks and give that same customer picture HD-clarity. Buying habits, consumer profiles, satisfaction levels, social media usage – combine this information, apply the right machine learning algorithm, and the result is a far better understanding of customer wants and needs, which you can then work to better fulfil. This applies to both the product or service you’re selling and the way you’re marketing it.
Perhaps even more importantly, big data can help you get ahead of trends. There are a few things more valuable to a business than having the first-mover advantage as latent demand surfaces. And the best thing about big data is that it’s based on solid facts and figures. When it comes to predictive decision-making, it removes assumptions and guesswork, allowing you to get off the starting block first, and with sure footing.
Improved internal processes for your company
Big data is not just about heightening customer relationships. It’s a powerful resource with massive benefits for organisations internally as well. And not just in terms of time- and cost-savings around business analysis.
Crunch your operational statistics, and you may find surprising ways to optimise processes – such as identifying places where automation can be introduced or retooling your staffing to meet shifting demands over the workweek. In addition to reinforcing business decisions, big data is excellent at helping to identify problems in real-time and correct course. Today, solutions are available immediately, when in the past it could take weeks or months to mine such valuable insights.
Related: Can Your Marketing Team Speak Data?
Tools to take advantage of big data
What do you need to make the most out of big data as a small-business owner? In the digital age, the foundation is a reliable high-speed Internet connection. This is because of big data’s own evolution. Data analysis was once a lengthy process which required a large amount of hardware storage (and, before that, filing cabinets), it has now evolved into a digital product provided by many business solutions providers over the cloud. The handling of information is streamlined in this way, and setting up databases, sending information for analysis, or receiving meaningful results, happens almost instantly.
SMEs may not have the resources of their more established, big sibling rivals. However, up-and-coming businesses do typically have the advantage of agility thanks to their size. It’s easier for a start-up to move quickly, redirect as needed, and act on just-gained insights and trends. This makes big data no longer “nice but unnecessary,” but an essential tool to give your company that all-important advantage in the digital economy.
A – Z Easy Small Business Ideas
Whether it’s a ‘eureka’ moment at three in the morning, or a persistent feeling that you’ve got a great small business idea, here’s some of the things you need to know to determine if you’re on to a good thing.
A small business is by no means a lesser one to the big corporates out there – even they were once small.
The term ‘small’ simply refers to the size of the company in terms of its turn-over (less than R1 million per annum) and its number of staff (usually 50 or less), certainly not its clout.
In fact, it’s often small businesses that give large corporates a run for their money as being small allows for greater agility and flexibility, quicker turn-around time, and greater room for customisation. Ready to get your small business started?
A small business can start in a home kitchen, a spare room; it can start in a garage. It can start in a small rented office space with just a laptop computer and yourself manning it, or it can start between friends, spouses, business partners.
Mostly though, a small business has minimal staff, is started with a small amount of capital, and it carries low overheads.
Need small business ideas?
Take a look at the list below to help you start brainstorming. The key is to examine an industry that you have strengths in, and determine whether the skills and character you have (or can develop) can meet a need within that industry.
Here are some examples of businesses you can start from home:
- Air-conditioner and appliance repair
- App developer
- Ad agency
- Antique restoration and resale
- Aquarium supplies and maintenance
- Animal trainer.
If you have a skill and it can be sold to someone who needs your skills, it is a business.
- Professional blogger
- Business consultant
- BEE consultant
- Body guard service.
If you are looking at service oriented businesses, make sure you are properly qualified to perform the service and registered with the appropriate associations for credibility.
- Catering business
- Car mechanic
- Cellphone repair
- Child care
- Computer maintenance and repair
- Computer training or programming
- Construction and clean-up
- Customer service professional
People will buy a product or service if it makes their lives that little more convenient.
Something that saves people time, money or hassle is essential for a sustainable business.
- Dry-cleaning service
- Driving service or school
- Data capture or data analysis service
- Desktop publishing
- Dog training, walking or grooming
- Disaster prevention and planning service
- Direct mail marketing service
- Database management
We know you were thinking Doctor – however, there are options beyond being a ‘doctor’.
- Engineering consultant
- Exporting business
- E-tail store
- eBay reseller
- E-tail secret shopper to see if someone’s e-tail experience is easy.
If it’s happening online, you can add an e- to it.
- Furniture removal company
- Fire safety
- Fire-hydrant maintenance and sales.
Whatever you do, it doesn’t always matter if it’s a traditional or ‘old’ business, so long as you’re doing things differently and that they’re meeting the needs and interests of the modern consumer.
Although established internationally, an up-and-coming industry in South Africa is all things green, from construction to materials, to greening businesses through lowered carbon footprints.
- Green cleaning service
- Green consultancy
If green doesn’t float your boat, there are household aggravations like:
- Gutter cleaning
- Garage makeovers
- Gluten free products and foods creation and baking.
- Handyman service
- Holiday planning service
- Home inspection service
- House-sitting service and anything home-based.
- Image consultant
- Image or Internet researcher
- Interior designer.
Be careful to research your industry properly before entering in to it, take ink cartridge refilling for example. As technology changes, will you be able to sustain your business?
- Jewellery designer
- Got space? How about a junk yard?
- Kitchen fitting
- First aid kits like cyclist and other sports, or kit-cars for motor enthusiasts.
- Life coaching
- Labour broker
- Liquor manufacturer
- Lab consultant or running your own lab
- Laundry service
- Language instructor
- Lock-smith service
Provided whatever you do adds value to the customer that they can’t get elsewhere, you’re on to a good idea.
- Start your own marketing company
- Massage therapist
- Make-over consultant
- Motivational speaker
- Moving company
- mobile masseuse
- mobile salon
- mobile food truck
- mobi-app developer
- Medical consultant.
The latest trend as technology advances is for things to be mobile.
So, you want to be an entrepreneur? Then you’ll need a business idea. Here are eight ways to come up with a original business idea.
- Nail salon
- Nurse – Think a post-operative care service, or even elderly care.
- Organic producer
- Online trader
- Occupational therapist.
- Personal shopper
- Party planning
- Personal trainer
- Pest control
- Photo-retoucher and restorer
- Project manager
- Personal tutor
- Pool cleaning
- Quality controller
- Queuing service
- Quantity surveying
- Quiz master.
- Resume consultant
- Research consultant
- Restaurant or business reviewer.
- Secret shopper or secret reviewer.
- Salon or spa
- Social media strategy
- Speech writer
- Sound engineer.
- Translation services
- Transcription services
- Tax accounting and consulting
- Sun-free tanning solutions
- Undertaking services.
- Video producer
- Virtual assistant service
- Voice-over production
- Voice training
- Viral marketing.
- Webmaster services
- Web design
- Wedding planner
- Wallpaper design and hanging
- Car washing service.
Ok you’ve got us there… try something x-treme.
- Yoga instructor
- Youth mentoring, counselor, camps, youth co-ordinator
- YouTube video producer
- YouTube channel manager.
We’re drawing at straws for this one, especially when the only thing you can come up with is ‘zoo’. But even they might need some services outsourced.
Tips about selecting a small business idea
So now your brain is thoroughly overflowing with new business ideas. But before you go quitting your job and investing everything you own into it, it’s time to assess whether it can be turned into a sustainable small business.
Here’s what you need to evaluate:
- Who is the target market? There’s no business if no one will buy your product or service. Is your target market able to afford (and prepared to pay) for it? Do you have reams of market analysis about your target market’s likes and dislikes, area densities, income, responsibilities, age, gender, education etc? The clearer the picture you can paint of your target market, the more able you are to provide to them.
- What makes you stand out? Does your idea already exist? If so, what are you doing differently to your competition? Is there something unique or value adding that you offer? If your business idea is new, is your target market ready to take you on? SEO, for example, was around a long time before businesses saw its value and started paying money for it. Make sure your business has a unique selling proposition (USP).
- Money, money, money. While some ideas are great, whether it will translate into an awesome business is determined by a financial feasibility study. What will it cost you to get the business off the ground, how long will you need to wait before you break even and see a return on investment? What are the on-going expenses like overheads? How will you bridge the gap between starting the business to it becoming profitable? Once you’ve completed a feasibility study, you may be disappointed to discover that the idea just won’t make a profitable and sustainable business. Don’t be sad though, at least you discovered this before you poured in your life-savings into a dead-end idea. Keep thinking.
Choosing a small business idea based on strengths and passions
Everyone has skills. The trick is to see what skills you have in your current job or through your work experience that are transferrable into your new business.
Take a hard look at your business idea and see whether you’ve got both the personality traits and the necessary skills to make it happen.
If the answer is yes, keep going. If you find that you’re quitting your corporate job because you despise it, starting a business to capitalise on that same work experience might not be your calling.
Assess what your personal interests are, what you’re passionate about, and how you can use the skills you have to turn it into a business. Entrepreneurs need to be passionate about their business idea – as it will be passion that motivates you during tough times.
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