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How Do I Start A Wholesale Fruit & Veg Business?

As a greengrocer or seller of whole foods, fruit and vegetables, you have a lot of scope when it comes to products.

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Get some direction with this Whole food Sea Market sample business plan

Besides selling fruit and vegetables, you would be able to sell other types of produce as well, such as flowers, herbs, eggs, milk, butter, cheese, and specialist foods such as olive oil, nuts and seeds, and organic produce.

Greengrocers can also offer personalised service such as a delivery service, taking orders over the phone, by email or through websites or Sms’s. They can also supply local restaurants, guesthouses, and coffee shops in the area.

The first step to take when starting any business is to prepare a business plan.

This will help you understand the business process. There are various points that you must think carefully about.

Can a small wholesaler compete?

To be successful you need a strong interest and a good knowledge of fresh fruit and vegetables – so that you know what is in season, the shelf life of different produce, ripening times, how to identify freshness and quality.

Related: 10 Ways Competition Can Improve Your Business

There is no doubt that one can be successful in this industry, but you will be competing with other greengrocers in your area, so you need to get to know your direct competitors very well.

One useful key to a successful greengrocer business would be to identify potential gaps in the market. These competitors will be independent operators like yourself. However, don’t forget to research other competitors such as large outlets like Fruit and Veg City and the large supermarket groups.

Their buying power makes it possible for them to keep prices low. Greengrocers can over come this by offering better quality products, personalised service and by stocking a variety of speciality fruits and vegetables that a supermarket would not stock.

Location is important – most of your customers will be people living or working locally, so you need to choose a convenient a location with lots of foot traffic.

Where to get fresh produce

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Markets

If the business is located in the Johannesburg area, the Jo’burg Market serves thousands of farmers from across South Africa who sends their fresh produce to the Market to be traded every day.

Currently, about 15 000 farmers make use of this distribution channel.

The large buyer base – averaging about 9 000 at any given time comprises of retailers, wholesalers, exporters, processors, informal traders and those buying for households.

Related: The Best Ways to Do Market Research for Your Business Plan

All major centres and even small towns have local fresh produce markets or co-ops where greengrocers can stock their stores.

Distributors

There are a number of national distributors who offer a reliable national supply chain. Their focus is to service identified target markets in the catering, wholesale and food service industry, with quality and affordable products.

  • Dew Crisp Farms supply fresh vegetables and fruit and aim their products at the “convenience market” where all the products are washed and cleaned, packaged and then distributed to supermarkets and greengrocers.
  • Yukon is the largest local supplier and exporter of baby vegetables in South Africa and supplies some of the most discerning retailers in the world. They also distribute products locally.
  • For farms and produce suppliers in the Overberg are of the Cape.

Niche wholesale businesses

organic-food

Related: 5 Steps You Can Use To Find Your Niche

Interest in organic food continues to grow in South Africa, as many people are worried about the effects of pesticides and fertilisers.

  • Go-Organic.co.za is South Africa’s premier organic website, directory, and marketing company. They trade locally and internationally in bulk organic products. Go-Organic.co.za is a private, commercial organisation committed to social and economic upliftment.
  • Urban Sprout is an organic-eco directory that focuses on organic and eco-friendly products from specialist tea to organic whole foods. To access the directory go to www.urbansprout.co.za.

Equipment Requirements

The outlay could be costly, as you want your shop to look attractive. It should have the following items installed in the shop.

  • Refrigerated display units.
  • A freezer if you plan to sell frozen produce.
  • Budget for shelving at various heights, to display produce.
  • Scales to weigh products.
  • An electronic till.
  • Credit card swipe machine facilities to accept card payments. You can buy or rent these from your bankers.

Ongoing Costs

The need for a good cash flow is important, as you will have a number of ongoing costs in this kind of business.

  • A constant supply of fruits and vegetables, packaging and promotional expenses should be included in your budget
  • As your business grows you may also need a van with cold storage facilities for deliveries
  • Don’t forget insurance costs such as fire, theft and damage, employers’ liability insurance for staff, as well as motor insurance for any delivery vehicles
  • Marketing
  • Staff costs
  • Book keeping service
  • Insurance.

Related: Start-Up Costs Worksheet

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Start-up Industry Specific

How To Start A Farming Business

Keep these nine points in mind when launching your new farming business.

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How Do I Start A Security Company In South Africa?

There are two kinds of security companies, one that sells products and one that sells services or you can combine both.

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To start a security service company in South Africa you must register with the Private Security Regulatory Authority (SIRA). There are two kinds of security companies, one that sells products and one that sells services or you can combine both. It is estimated that the private security industry in South Africa employs over 400 000 individuals.

If you’re looking at starting a security guard company in South Africa, the following guide will be able to assist you in the deciding if it’s the right decision for you.

You need a lot of capital

Starting a security business requires a good deal of capital outlay and it’s highly recommended that one should have a background in this field.

Decide what kind of company you want to start

There are two kinds of security companies, one that sells products and one that sells services or you can combine both. Each sector falls under its own regulatory body.

What about area competition?

Greg Margolis is the CEO of NYPD Security, a niche security company that has operated for the last five years in the leafy northern suburbs of Johannesburg.

“To run your own security service company I think that you have to be well rounded in terms of not just being a good business person, but you also have to be a people person, a marketing person and know a good deal about the business.

“There’s tough competition, but I love what I do and wouldn’t sell my business even if I was offered triple what its worth. I am passionate about what I do”, says Margolis.

Starting a Security Services Business

To start a security service company in South Africa you must register with the Private Security Regulatory Authority (PSIRA). This includes paying a registration fee of R2 280 and writing an exam. Once you have passed the exam, proved that you do not have a criminal record, SIRA will conduct an inspection to establish whether or not your business meets the infrastructure requirements. A further fee of R1 710 is charged for the assessment. Each year the business is re-accessed which costs a further R500 plus the annual renewal fee or R520.

The following documentation is required for registration:

  1. An authenticated copy of the CM1, CM2, CM27, CM29, CM31 and CM 46 (apply at Registrar of Companies or Attorneys), if the applicant is a company;
  2. An authenticated copy of the Partnership Agreement if the applicant is a partnership;
  3. An authenticated copy of the trust deed and the letter of authorisation to the trustees from the Master of the High Court if the applicant is a business trust

Related:Steps for Setting the Right Prices for Your Security Business

Also required:

  1. The Suretyship form (SIRA 4) to be signed by the natural person who has taken full responsibility of the security business
  2. Every director, member, partner (as the case may be) applying for registration as a security business must have successfully completed, at a training establishment accredited in terms of law, at least, the training courses Grade E to B
  3. An authenticated copy of the Tax Clearance Certificate from the South African Revenue Service (SARS)
  4. An authenticated copy of the VAT Registration Number from SARS.
  5. An authenticated copy of the PAYE number from SARS
  6. An authenticated copy of the COID number (Compensation for Occupational Injuries & Diseases) from the Department of Labour
  7. Sufficient information in writing to enable the Authority to ascertain that the applicant security business meets the requirements with regard to the infrastructure and capacity necessary to render a security service;

This include, inter alia, the following:

  1. Submit a business plan to the Authority including the location and activities
  2. A resolution by the applicant security business stating that it will be able to operate for the next year
  3. The applicant proves that it has an administrative office that is accessible to the inspectors of the SIRA
  4. The applicant must have equipment which is necessary for the management and administration of the security business, e.g. fixed telephone, fax machine, a hard copy or electronic filing system for the orderly keeping of all records and documentation
  5. Show that the affairs of the applicant security business are managed and controlled by appropriately experienced, trained and skilled persons
  6. The applicant security business has at its disposal a sufficient number of registered and appropriately trained and skilled security officers for the rendering of a security service for which it has contracted or is likely to contract
  7. The security officers must be properly controlled and supervised
  8. The applicant security officer has at its disposal sufficient and adequately skilled administrative staff members for the administration of the affairs of the applicant
  9. The business must have has all the necessary equipment, including vehicles,  uniforms, clothing and equipment that must be issued to its security officers
  10. The applicant security business is in lawful possession of the firearms and other weapons that are necessary offer security services in respect of which it has contracted.

Related: Get going with a One Page Business Plan

Landing contracts

security-contract

The most important thing you can do to start and operate your own business is to develop a good business plan.

It’s invaluable because the business plan forces you to come to terms with your business. Selling the business concept seems to the problem, said Margolis. These are his five tips that will help to get the business going.

“The security industry in South Africa is very competitive. You have to get out there and you have to keep knocking on doors, there isn’t an easy solution”, explains Margolis.

Top Tips

1. Look at your business plan and decide if you have a competitive advantage. If not, work out how you can make the market understand the unique value your small business has to offer.

2. It is important to make yourself known. It isn’t difficult or expensive to increase awareness about the business. Attend ratepayer meetings, spend time at the local police stations, and attend meetings the police have with residents and businesses in the area. This way people get to know you and respect you and half the battle is won. Networking is the way to go.

3. It’s my experience that bigger companies are reluctant to give security contracts to a company that is a one-man show. Make sure that you have a structure in place. Clients need to know if something happens to you, the business will not fall apart, and the services they have paid for and you have agreed to supply, will not cease. Clients need to understand that besides experience, that you are credible and that all the checks and balances are in place. This must be one of the key selling points.

4. Consider taking on a partner. Choose a partner who has the attributes that you lack. The ideal partner would be one with strong links and contacts in the community that you want to work with. Let your partner control the selling side while you handle areas you’re strong in, such as expertise and service delivery. The other option is to employ sales staff.

5. Stay abreast of new trends in the field, and update your skills. This is something that I strongly believe in. You have to be well rounded in terms of not just being a good businessperson, but you also have to be a people person, a marketing and sales manager and know a good deal about the neighbourhoods you work.

 

Are you new to starting a business? Read 15 Things Every Newbie Needs to Know About Starting a Business

Security products

What are the requirements to start a security product supplier business?

If you are starting a security company that sells electronic alarm systems and other security products it’s wise to become a member of SAIDSA in order to provide your business with the credibility it needs to be taken seriously by the public and security service providers.

The objective of SAIDSA is to upgrade the quality and standards of electronic security and to protect the public from unscrupulous, “fly-by-night” operators. When a security system is purchased, an ongoing relationship is entered into between the purchaser and the security service company concerned.

The security service product supplier must have the infrastructure and the required expertise to support the relationship continuously.

Security Sector Regulatory Bodies

The security industry has established a number of bodies to regulate itself. Membership in these bodies is voluntary. They include:

Ready to get going? Here’s 10 Steps to Start Your Business For Free (Almost)

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How Do I Start A Transport Or Logistics Business?

An all in one guide to starting a transport and logistics business.

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Thinking about starting a transport business?

Forecasts indicate that the demand for freight transport will grow in South Africa by between 200% and 250% over the 15 to 20 years.

Some corridors, (high volume transport routes that connect major centres), such as the corridors between Gauteng and Cape Town (which amount to 50% of all corridor transport) will increase even faster.

The scope in the transport and logistics industry is varied – from a one-man show using a small truck to transport goods and offer services, to a fleet of transport vehicles which travel the length and breadth of South Africa’s roads.

Road transportation includes commuter transport from taxis to bus transportation.

It can be a tough industry and there are many threats facing transport businesses but if you get it right, you can build a successful business.

What is covered in this guide:

  1. How to start your transport and logistics business
  2. How to get funding for your transport business
  3. What are the costs involved
  4. Finding customers and getting transport contracts
  5. Getting onto suppliers lists
  6. Buying trucks and employing drivers
  7. What are the regulations and risks
  8. Where to find guidance to start your business.

Ready to get going? Click the arrow button to learn how to start your own transport business.

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