Blog – The First Lady Chamber

What is Business Strategy

22nd Jun 2022/in Blog /by fatima

What is business strategy?

Most business owners, particularly smme’s and micro enterprises started out without a clear blueprint of how it would operate in order to reach set goals. In fact, many start out of necessity, and with an idea, or solution to a societal or personal problem. Very few have clearly defined goals, nor a strategy plan of how to reach these goals. It is therefore critical to have definite goals with set time lines in order to develop a simple strategy plan; which will govern the process in reaching these set objectives for your business. These clear objectives include, making a profit, being able to pay yourself a salary as the business owner, or buying a property for the business.

A strategy is a sequence of actions or plans designed to achieve a certain goal. It is the roadmap of how you intend to reach the goals you have set for your business and is a key component of a good business plan.

Consider this: Without a strategy plan…
You cannot tell whether you are moving in the right direction or not
You would not know where to focus your energy and resources
You would have difficulty to guide your growth
You would be unable to assign priorities
You would not be able to manage every facet of your business
It is therefore an integral part of the growth and expansion of any business venture.

Written by Rushda Behardien.

Join us on 02 July as we delve into what goes into a business strategy and how to compile a compelling business plan for your business. To book click here.

Business law and its importance for Entrepreneurs

30th May 2022/in Blog /by fatima

Business law of otherwise known as corporate law in the laws that govern the business world. It encompasses all laws that guide on how to set up a business and then how to run it. This includes all the laws that govern on how to set up, start, manage, run, close or sell a business. It includes contracts, laws of corporations, other business organisations, commercial papers, income tax, secured transactions, intellectual properties, and other transactions and dealings related to the business. Here is what Prenola Naidoo our Corporate Law facilitator has to say about the important of knowing business law for an entrepreneur.

The world of business is often a daunting and peculiar place. The law serves as one of the primary mechanisms used to protect entrepreneurs from any unruly surprises, costly mistakes and mitigate any risk potentially faced by the entrepreneur. Without functional knowledge of business law, entrepreneurs are often left at the mercy of competitors, suppliers and other third parties.

Business law is of vital importance to entrepreneurs as it safeguards entrepreneurs and their businesses from legal disputes and other legal issues that may have an adverse effect on their revenue, resources and reputation.

A fatal mistake that entrepreneurs often make is that only once they find themselves in a precarious situation with the law, that they then intend to educate themselves on the relevant laws and regulations relevant to their business. In order to safe costs and the metaphoric burns associated with landing yourself in hot legal water it is advised that entrepreneurs ensure that they have a firm grasp on the basic laws and regulations that govern their business as well as the consequences associated with non-compliance.
As an entrepreneur, you are required to stay up to date with all of the relevant laws and regulations that governs your business, and to ensure that you understand the consequences and affect of such laws and regulations on your business.
A good asset for all entrepreneurs is to invest in an attorney specialising in business law. Attorneys are experts in the field of the law and will be able to ensure that you as an entrepreneur do not find yourself in any uncomfortable situations which could negatively affect your business.

What are your thoughts around business law? Join our Business Law incubation and equip yourselves with the knowledge you need.

Compliance for a small business

5th May 2022/in Blog /by fatima

Compliance for Small, Micro or Medium Enterprise (SMME) in South Africa

According to a 2020 Trans Union report, as a result of the COVID-19 Pandemic, 95% of SMMEs (i.e., 2.55 million in RSA) reported a decrease in revenue attributed to the consumers’ inability to earn income. As a result, 90% of SMMEs are either struggling or temporarily closed. Only 2% reported an increase in revenue and 3% have stable revenue. Only 10% are operating as usual, and this is attributed to an investment in Research and Development and /or Innovation.

If you are starting out and need to register as a company, you will have to contact the Company and Intellectual Property Commission (CIPC), formerly called CIPRO. Please note that Companies are first required to register with the (CIPC) offices before registering with SARS for an Income Tax reference number. Once a taxpayer registered with CIPC, SARS will automatically generate an Income Tax reference number. Taxpayers must then register on eFiling to transact electronically.

When the company has the Company Certificate they can open up a bank account in the companies name. Having a company bank account ensures separation between the business owners personal bank account and that of the legal entity.

How to obtain your Tax Clearance Information

As a Small, Micro or Medium Enterprise (SMME), at some point or another you will be required to provide / confirm / share your Tax Clearance information with another entity. This could be to apply for a tender, new contract, good standing or in respect of Foreign Investment.

Registering for Turnover Tax. Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and co-operatives. Turnover tax takes the place of VAT (in the instance that you have not decided to elect back into the VAT system), provisional tax, income tax, capital gains tax, secondary tax on companies (STC) and dividends tax. So qualifying businesses pay a single tax instead of various other taxes. It’s elective – so you choose whether to participate. For Tax Tables see below.

Registering your business for VAT: Your company must register for VAT if it has reached the threshold of R1million rand of Revenue over a 12 month period. This registration is deemed to be a compulsory Vat Registration. The company can register for vat if they are under the R1 million threshold. In order to do this they must prove that they have been trading for a few months, or provide a contract to Sars for the registration.

Registering for PAYE, UIF and SDL, is imperative if the company has employees. In South Africa, in addition to the Sars registrations for payroll, there are other compliances such as Compensation Commission registration (Workplace Insurance) and registration with the Department of Labour for the Unemployment Fund.

In the case where you are already registered as a company and you meet certain qualifying requirements, you may register as a small business corporation (SBC) in order to obtain additional tax incentives. One of the incentives for SBCs is a reduced corporate tax rate.

As a member of the SMME segment you need to follow the compliance value chain/life cycle for all of the different tax/customs products you use (e.g., income tax; VAT; PAYE; etc.). This “chain” is made up of the different steps in your tax relationship with SARS from beginning to end as follows:

Registration – get onto the legal system of Sars and CIPC
Declaration – disclose your tax matters, accept or dispute our assessment of tax liability
Payment – if sars owes you money or you owe Sars
Deregistration – if you liquidate/close your business

When you comply with your tax obligations, you place your business at an advantage by eliminating the potential cost of non-compliance and administrative penalties. The government’s response to COVID-19- highlights the importance of tax compliance as one of the qualifying criteria to benefit from the tax relief measures – you must:

· Be registered for all required tax types
· Submit all your tax returns on time
· Pay all your tax debt on time

The table below provides compliance information for each of the seven (07) tax products/types.

Tax type	Submission frequency	Tax form	Explanatory notes
Company Income Tax (CIT)	Once a year as per company’s financial year end	ITR14	The company has 12 months to submit the ITR14 after the financial year end. The financial year end is indicated on the company registration certificate from CIPC.
Personal Income Tax (for self-employed individuals)	Once a year as announced by SARS during filing season.	ITR12	Sole traders, partners in a partnership and self-employed individuals must declare their business income on their ITR12.
VAT	Every two (2) months before the 25th	VAT201	The period will be allocated at registration and some companies may be required to submit every month.
PAYE	Monthly on or before the 7th	EMP201	The submission is due within seven (7) days after the month the tax was deducted from the employee.
Provisional tax	Twice a year	IRP6	For companies: The first submission is due six (6) months from the start of the financial year. The second submission is due at the end of your financial year. For individuals: the first submission is due 30thAugust and second submission is due 28/9 February of each year.
Turnover Tax	Once a year	TT03	The submission of turnover tax returns is done once a year in line with the company’s financial year-end or submission of the annual income tax returns, between 1 July and 31 January of the following year for individuals.
Employer Reconciliation	End of October and end of May	EMP501	First interim submission is due at the end of October and final submission end of May.

If you are keen to learn more, join us at our next accounting incubation.

9 tips to be a better business person

19th Apr 2022/in Blog /by fatima

Starting a business can be exciting but also stressful. Once you have started a business there are many financial, legal, media and customer things that will need to be complete for it to be up and running. Here are a few tip that will help along the often lonely road of entrepreneurship that could help you succeed in what many entrepreneurs called their other baby.

1. Have a solid business plan

Never underestimate what having a solid business plan can do for you and your business. While it will take a significant amount of time, work and research to complete one, it’s well worth it. It will allow you to see into the potentail your business has that not even working IN your business can do, as by building it you will be working ON your business. It is also a living document that can evolve with the ever changing times.

It allows your to see your ideas on paper and should answer the following questions.

Who is your Target Market
What need are you fulfilling
What is my breakeven
What will your business structure be
What is products or services

These are just a few, the more questions you can answer, the more clarity you have about running your business.

2. Create healthy Habits

Healthy habits help your mind and body perform at a higher level. When you make a habit part of your routine, you’ll automatically stick with it for the long term. Habits such as tackling the high return task can lead to less time wastage and better performance. Waking up early has been proven to improve mood but can also help the ever growing list of things entrepreneurs need to get done.

Try forming good habit by habit stacking, its a technique developed by James Clear in his book called Atomic Habits that help with introducing and maintaining a new habit by attaching new habit with an already persisting one, such as brushing your teeth or having your morning coffee.

3. Plan your week ahead of time to get stuff done

Planning your week will allow you to see the tasks at a glance, it will also allow you to shift focus on tasks that are more important, tasks that have a better return on investment. Try to outsource low value task. This should clear you up to again work on your business instead of in.

4. Don’t be afraid to ask for help

If you need help ask for it, you will be surprised at how many people are willing to help and collaborate! This is a key concept for entrepreneurs as getting eye on your business is what you need. There are loads of resources out there and people sharing knowledge and advice. Use as much free resources as you can such as Facebook groups, online forums or even the people around you. Become part of a community and engage like minded individuals.

5. Build a team that shares your vision

Having a team around you that share your vision is good business practice because behind every successful business is a reliable team. Each team mate will bring a different skill set to the business and will aid it its success.

6. Never stop learning

Attend classes, seminars and read books. Learning new skills and concepts can give you the tools you need to succeed. Read our blog post about what its important to keep learning and how it can make you a better entrepreneur.

7. Get a reliable mentor

Getting a person who you can rely in for guidance is always valuable. Entrepreneurship can be a lonely road and having someone who you can bounce ideas off and will help you to keep track of you goals can be a real game changer.

8. Don’t be afraid of networking

Again getting eyes on your business or reaching out to a resource that can help support or provide fresh idea and again collaborate is and important tool kit to have being an entrepreneur.

9. Learn to speak confidently in public

Having a great elevator pitch can really get people interested in wha you do. Have a succinct and compelling to to tell your story and what you do to potentail customers and investors. Keep it under a minute if people are interested be ready with more detail.

These are just some tips to guide you on your entrepreneurial journey. There are loads more tips that can help and some may work for you better than others.

Good luck!

Why always learning is important part of being an Entrepreneur

23rd Mar 2022/in Blog /by fatima

Learning is something that takes place daily by interacting with other people and the world around us. But what does this mean for Entrepreneurs? Can continuously learning make you a better entrepreneur?

With the last two years being fraught with many challenges, as well as women suffering from the all debilitating imposter syndrome, one can easily feel demotivated. Learning a new concept or skill has been proven to invigorate you. Learning a new skill and concepts can enhances our perspective towards the world, allowing us better opportunities and that equals to an improved quality of life.

An educated person is one who has learned how to adapt and change. Employees that take it on themselves to learn in order to adapt with change has been shown to perform better at their jobs, therefore the connection of business success to continued education is obvious.

And students who demonstrate the drive and ambition to want to progress with further education often have the characteristics that make them successful in the business realm as well. Their continued learning helps them gain tools that are more likely to help them succeed.

It was Dr Seuss who said, “The more that you read, the more things you will know. The more that you learn, the more places you’ll go.”

Knowledge is increasingly valuable – especially when it drives innovation or is applied to leverage new technologies. That’s why learning is the single most important investment you can make in your business.

There are numerous examples of our FLC members applying the knowledge they have learnt in our programme that has made notable improvements in how they view and conduct business that has led to better business decisions and while success is viewed differently from different perspectives that all mention that having the tools has made them be better entrepreneurs.

So whether you choose to continue learning to improve your business success is entirely up to you, but to choose to do so will allow you more freedom and control and that is what will create business success.

Join our FLC programme and add to your business goals toward the road to success.

7 benefits to networking for entrepreneurs

28th Feb 2022/in Blog /by fatima

Looking for reasons to attend our networking breakfasts?

What is networking and why do we have to do it an an entrepreneur?

In our blog post we we will list 8 benefits we know if that networking can impact you and your business, so let’s dive in. Here is to hoping it will inspire you to grow and enhance your network.

1. It Helps Build Your Brand

It’s a rhetorical question, but, Does your business have a brand? So… Yes. And a large part of that brand is you.

People connect with people and when you network you get to allow your customers to experience you, your values and what your brand stands for. People then start associating you and how they experience you with your business.

The more people you network with, the more people get to know about you, your business and what it represents. When more people become familiar with your brand and business if allows for greater exposure and opportunities.

2. It Widens your Sphere of Influence

This concept hardly needs explanation because the more people you meet and get to know, the more people will know you. So it’s essential that when people remember you they remember you for the right reasons.

If you leave the right impression, chances are that people will think about you, and essentially your business and will most likely come up in conversation with people outside of your circle and therefore affecting your sphere of influence.

3. It Has a Positive Influence on Your Personality and Sense of Well-Being

Being around successful people can positively influence you and be a great motivator, allowing you to be inspired. Networking will also allow you to connect with other like minded individuals that will let you know you are not alone and allow you to feel part of a community.
Connecting with people on a human level also gives a powerful boost to your sense of well-being.

4. It allows you to Practice your Pitch

While many people fear speaking in public, networking and consistently telling people about your business can greatly impact or mitigate this fear. Meeting new people and telling them about your business can also allow you to experiment with what and how you tell people about your business and see what really drives them to become interested in what you do.
You will also gain confidence by repeating your pitch to people which is an important trait to have being an entrepreneur.

5. Business Networking Raises your Profile

People can only support you if they know about you. Networking raises your profile through constant interaction, because you are building existing relationships but also because you are meeting new people on an ongoing basis.

As you help others with advice and collaboration, you may become a resource and there is no better referral than word of mouth.

As your profile is enhanced through networking, you will find that you will get more referrals and more business.

6. Your Network Becomes a Resource

As mentioned above by helping others, connecting others to others and collaborating you can become a resources within other people’s networks.

By connecting with like minded individuals you create space to connect with someone who is or has experienced the same problem you are experiencing and can assist you will how to handle it effectively and conversely you can do the same for others.

7. Business Networking Presents Opportunities

Here we circle back to the concept of collaboration. When you get to know more people and create a trusted circle you open yourself up to more opportunities. This might include partnerships, new ventures, cross-promotions, joint-promotions, investments and more.

So put these benefits to the test and join us at our next networking breakfast. Click here to book.

5 concepts to build an entrepreneurial mindset

10th Feb 2022/in Blog /by fatima

By now, we are all aware that our mindset profoundly affects our lives and the outcomes of what we do. It’s no wonder that posts about self-affirmation are so popular these days. There are perceptions that we form about who and what we are, and our capabilities that hinder our growth, and our ability to activate the potential within ourselves.

This is where our mindset or state of mind comes in. Growing and managing a business is challenging at the best of times. It requires hard work, determination, wearing many hats, sacrifices, adaptability, and courage. It requires a strong entrepreneurial mindset.

But what is the entrepreneurial mindset?

Our mindset is a belief system we have, developed as we grow up, based on what we see, hear or certain experiences. It is assumptions and beliefs that inform how we make decisions which guides our behavior. An entrepreneurial mindset is inherent in an individual, it may just be that you have been unable to tap into the entrepreneurial mindset. This ability is impacted by many factors, one of them being upbringing. On the plus side, an entrepreneurial mindset can be accessed with the right motivation .

Hear are 5 tips to foster your entrepreneurial mindset

1. Belief

It is very important to believe in the product or service which you bring to the market. You cannot expect to gain customers who are willing to invest in or buy your product or service if you don’t believe in it yourself.

2. Always re-visit your why

There are so many challenges along the path of building a business, that it can be demotivating in the start up phase and the first few years. The pandemic situation has unfortunately ;eft many casualties around as many businesses were forced to shut down. Seeing this can affect your determination and mindset. To get back on track, assess why you started your venture in the first place.
Ask yourself why you started and more importantly, what problem are you set out to solve. Answering these can get you back in the driving seat.

3. Do not be afraid to get support

Finding a community and fellow entrepreneurs can prove to be invaluable. Connecting with a mentor who has been through the steep learning curves of running a business is key to keeping your mindset in top form. They will be able to share their insights and experiences with you which will help strengthen your entrepreneurial mindset.

Engaging with mentors that you admire and respect and fostering genuine relationships with like minded entrepreneurs, can go a long way to keep you motivated and inspired.
After all, entrepreneurship is a calling, and you are unlikely to be understood by those in your inner circle who have not ventured down the path of entrepreneur. Your day-today challenges will seem like foreign territory, which is why surrounding yourself with supportive entrepreneurs is essential.

Join a business mentoring program or partner with someone in your industry. Own up that you may not know everything and that learning from a certified business coach can develop a strong growth mindset.

4. Tenacity

Tenacity and determination is critical to building on your entrepreneurial mindset. All successful people have started out where you are today. Each time they showed up, made improvements and saw results, their confidence grew. They learnt that through the single mindedness of purpose you can develop confidence, and so can you.

Try not to get discouraged when things don’t work out, it’s part of being an entrepreneur. Failure is inevitable when you’re taking risks and trying things that you have never done before.
But when you fail, there’s an opportunity keep learning, keep growing and keep those positive affirmations going!

“ Success is stumbling from failure to failure with no loss of enthusiasm” – Winston Churchill

5. Get out of your comfort zone

Ever hear the saying: “You never change your life until you step out of your comfort zone’” or “change begins at the end of your comfort zone.” ?

Intentionally leaving the comfort zone goes hand-in-hand with a growth mindset. While the fixed mindset keeps us trapped by fear of failure, the growth mindset expands the possibilities.

We have already established that being an entrepreneur is not comfortable. It’s actually ‘hella’ uncomfortable, you will be faced with setbacks, self doubt, failure and criticism. However, on the other side of that, is the amazing feeling of achievement that comes from building something out of nothing.

Do things you’ve never done before and push yourself to do something that scares you. Allow yourself to be vulnerable sometimes. Challenge yourself each day by learning a new skill or pushing past self-imposed boundaries.

Conclusion

Evolving your entrepreneurial mindset is an every day task.

Stay focused and committed to your goals and long-term vision.

An entrepreneurial mindset can be developed and enhanced through shared entrepreneurial experiences.

Join our Mindset for Success workshop to equip yourself with the tools essential to expanding your entrepreneurial mindset.

Book your seat here.

Why Marketing is important for Entreprenuers

26th Jan 2022/in Blog /by fatima

First of all what is marketing?

Marketing is the process undertaken by a business to promote and sell the business’s goods and/or services. The aim of marketing is in creating value and promoting the desired experience.

MARKETING IS IMPORTANT because it allows you to strategically share your products and services with a niche audience which consists of your existing customers and potential customers. It is important to note that when marketing your brand, where it be a new or an existing brand; the first thing you need to do is understand your audience in order for you to be aware of who you are marketing to and how. Understanding your audience means researching and gathering information regarding the wants and needs of a target market. Once you ascertain this, you are able to market to your audience on the correct platforms and through the appropriate marketing mediums.

HOW you are marketing to your audience is crucial because once you know the audience, you will be exposed to knowing that not all your customers are reached in the same manner. Thus marketing is about CUSTOMERS:

How to find them?
How to satisfy them?
How to keep them?

In simple terms, marketing is performed to answer key questions which can be translated into strategic plans to grow the business. The 5W’s together with H, are what clearly align and connect your brand with new and existing customers, through what is called the marketing mix (Price, Product, Place and Promotion). The 5W’s stand for:
WHAT are you offering? A product or service, and what are the costs involved?
WHO are you offering this product or service to? You must be able to define the clients or customers specific to your brand/business.

WHY are you offering this product or service? You need to identify and market the unique selling point of your business as well as the benefits for your clients and customers.

WHEN is this your product or service available? This entails providing your customers with your operating hours and availability to provide this unique offering which is your product or service.

WHERE is it available? This entails telling your customers where you are located in terms of a physical address, online platforms, locally, regionally and or internationally, as well as ensuring that you are able to provide wide access to your product or service offering.

These are basic principles in order for you, as a new or existing business owner to grasp why your business needs to do marketing and why it is important. In the marketing incubation, we aim to expand the knowledge of our members by means of theoretical and practical examples which are aligned to each members’ business goals, in order to assist them build and grow their businesses.

Written By Zimkitha Bavuma – Event and Marketing Education Specialist