Summary
Summary Entrepreneurship and Innovation Management 214: Chapter 8
- Institution
- Stellenbosch University (SUN)
- Book
- Entrepreneurship
chapter 8 of prescribed textbook for EI man 214
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EI Man 214: Chapter 8: getting startedCountdown to start-up and gradual start-up
New business
o Start out as small businesses
o Need skills, preparation, proper planning (business plan
o Are vulnerable at beginning of venture cycle
o Need risk management and quality & ethics as part of panning for future growth
o Process of starting up is based on the fundamentals of management: planning, organising, leading
and control (POLC)
Fundamentals of Description
management
Planning o During idea generation & opportunity recognition process
o Business plan focus on marketing, production, operations, management &
finance, business plan reduces risk
o Business plan should be converted to: action plans, time frames, resources
Organising o Gathering of resources, meeting legal requirements, finding a site for
business, deciding on legal form
o Policy & procedure development for employment, ethic & quality assurance
Leading o When venture starts trading & appointing people
o People must be motivated, coordinated & controlled
o Business functions must be structured
Control o Record keeping, risk management, quality, ethics & internal control systems
ensure smooth running & protection of business assets
o Social entrepreneurship is vital as it creates jobs & becomes an extension of many a corporate
social investment or funding
o The logistics for starting a business are essential. The start-up must be treated as a project and
managed accordingly
o Process needs to be linked to activities/time when tasks should be performed and finished
o Matters to be resolved before a business can start trading
Checklist for business plan
o Prepare a business plan
o Review the form of the business, if applicable, form a company or draw up a partnership agreement
o Select a business name.. Apply for registration, if working from home, contact the local municipality
about by-laws that may affect the business
o Find & cost premises, determine fixtures, fittings & equipment costs. Also, decide what alterations or
sign writing are required
o Complete the business plan, ensure that it includes sufficient cash available to cover the
requirements of the first 12 months
o Ensure all legal requirements such as a constitution for a social enterprise, a shareholder’s agreement
or a memorandum of understanding is completed & signed
o Make a formal application for a loan If needed
o Open a bank account for the business with the required signatures
, o Obtain from the bank written confirmation of the loan or overdraft facilities. Seek to understand how
arrangement fees, bank charges & interest will be charged
o Determine what license, certificates will be necessary to permit you to trade. Apply for those.
Investigate patent, registered design, trade market and copyright protection. Apply for protection if
warranted
o Find suitable space to operate the business from
o For business premises, take professional advice on leases, purchase & licenses. Establish
management controls
o Inform SARS that you are starting a business. Register as a provisional taxpayer. Obtain a VAT
registration certificate. Also register for the skills development levies & unemployment insurance with
SARS
o Inform the department of labour and take necessary steps with regard to compensation for
Occupational Injuries & diseases
o Review all your responsibilities as an employer to ensure that you comply with legal requirements
o Contact the relevant bargaining council (for labour matters), if applicable, to learn of requirements
o Finalise arrangements with the landlord, if you have no done so already. Attend to any special
requirements
o Refurbish premises if required. Ensure that all mains services are connected to your premises:
electricity & water
o Confirm postal & telephone links with the post office & Telkom. The latest date for advertising in
the Yellow Pages is November
o Consider e-mail addresses & web addresses, also, whether your business needs WIFI and inter
connectivity
o Did you register your own domain name for your business for your web address
o Plan a detailed activity schedule for communicating & selling your product or service to the market.
Make sure appropriate insurance cover is taken out
o Draw up job descriptions & establish terms & conditions of employment. Note the requirement to
maintain existing Ts&Cs where an existing business is being taken over
o Take delivery of all business stationery and promotional materials
o For sales on credit, be aware of legal requirements relating to finance charges
o Prepare the launch of the business with press/media support
o Take out bank and credit references for major new, unknown credit customers
o Consider joining the Chamber of Commerce and other organizations that can help you
o Consider submitting your draft plans to government support agencies such as SEDA to help with
formalization of your business & even advice on partnerships, clients, suppliers & other government
support initiatives available as can be seen from the established Department of Small Business
o Fund, recruit & train staff when you are ready to begin your business
o Consult with small businesses such as HR overload
o Advise your bank manager of your plans. Investigate leasing options, insurance & other financial
options, investigate loan possibilities
o For credit info – contact your bank or check with Information Trust Corporation, Consumer or
Credit-Inform
o Learn how to use smart applications to assist with accounting procedures, such as RISK flow app
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