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Home / Financial & Business Coaching / Startups / The SME Business Startup Checklist

The SME Business Startup Checklist

  1. The Business Plan
    1. Write down basic idea for business. Include the following:
      1. What are you going to sell/provide?
      2. Who are you going to provide/sell it to?
      3. Where are you going to sell/provide it?
      4. What basic resources do you need to get the business started?
    2. Prepare a basic budget and cash flow forecast.
      1. The budget should include a forecast of sales and expenses for the next year.
      2. The cashflow forecast is the budget, adjusted for timing of receipts and payments.
  2. Decide on a business entity. The following needs to be considered:
    1. Are there likely to be partners in the future?
    2. Is it necessary for risk purposes, to separate the business from your other personal assets?
    3. Are there likely to be signficant profits?
    4. If the answer to above is YES, then a CC should be registered. However, it will be worthwhile discussing this with a professional.
  3. Appoint an accounting officer. This does involve a cost but it will be worthwhile in the long term.
  4. Open a bank account, and get set up with Internet banking.
  5. Get registered with the following statutory bodies: (this can be done by the accountant)
    1. South African Revenue Service (SARS), for:
      1. Income Tax, for the business entity (if a CC) and for yourself.
      2. VAT. This is compulsory if turnover exceeds R1m per annum. I recommend registering anyway
      3. As an Employer. Even if the only employees are likely to be you (and your wife), you will have to register. This also covers UIF, and Skills Development Levy (if your business complies with that requirement.)
    2. C.O.I.D. (Workmens Compensation Commssioner)
    3. Local Municipality (if the business requires Health department permission, or if working from home).
  6. Purchase some accounting software. Quickbooks Regular is usually sufficient, about R1500. This software will take care of all stationery you need. Invest in some basic training.
  7. Consult a marketing professional to determine the best avenue for your advertising spend. In fact, don’t be afraid to spend a bit extra up front on general business and financial advice – plans succeed with much counsel.
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