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Thread: Need advice starting a business

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    Need advice starting a business

    I want to start a business I just need some recommendations.
    I want to manufacture various electronic devices as a home & online based business and sell them on.
    I have almost everything to do the manufacturing already. I Don't see myself making a lot of money in the beginning but should be able to cover my expenses.
    What business model would you guys recommend I register? Sole proprietor or PTY

    Also what reputable company can someone recommend to assist with the registration.

    Many Thanks

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    Diamond Member wynn's Avatar
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    Just go with sole prop until you reach a certain turnover (may never happen) unless you need to register for VAT you don't need to register a PTY
    "Nobody who has succeeded has not failed along the way"
    Arianna Huffington

    Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
    You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at
    http://www.smashwords.com/books/view/332256

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Riaanhar View Post
    What business model would you guys recommend I register? Sole proprietor or PTY
    Wynn's suggestion has merit in many situations, but the answers to the following questions might influence the decision.

    Are you going to employ people? If yes, how many?
    Will you be registering for VAT?
    What is your target turnover (very roughly) for the first year?
    Are you getting outside finance or is it going to be entirely financed by yourself?
    Will you have partners?
    Will you have major creditors?
    The trouble with opportunity is it normally comes dressed up as work.

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    Thanks for the reply's so far.
    I don't think I will employ anyone anytime soon, If the workload gets to high I will most likely outsource.
    Will also be financing myself and don't have partners.
    I am trying to do everything in cash where possible so creditors should be to a minimum.
    When will I need to register for VAT (When my turnover reach a certain threshold?) What are the benefits if not legally required?
    As for turnover I can only guess, Hopefully I should be able to get around R10 000 a month at the beginning.

    Do you have any recommendations on company's that assist with registration.

    Thanks

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    Site Caretaker Dave A's Avatar
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    I reckon go with Wynn's suggestion then - get it up and running as a sole proprietor and make some sales as proof of concept first.
    The trouble with opportunity is it normally comes dressed up as work.

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    Thanks a lot for the feedback

    Sole proprietor it is then.
    How easy will it be to convert from sole proprietor to a PTY when the need occurs?

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    Diamond Member Blurock's Avatar
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    Register a company only when the time is ripe. You can then decide which assets you want to transfer to the company if at all.
    Excellence is not a skill; its an attitude...

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Riaanhar View Post
    How easy will it be to convert from sole proprietor to a PTY when the need occurs?
    No more difficult than registering a company from the outset.
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member wynn's Avatar
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    One thing, do not sign any liability agreements if you open an account anywhere, if you have to, put a sunset clause in that the agreement expires after 6 or 12 months, these have a habit of coming back and biting you on the ars# years down the line, usually six months after you have sold the business.
    "Nobody who has succeeded has not failed along the way"
    Arianna Huffington

    Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
    You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at
    http://www.smashwords.com/books/view/332256

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