What stops you from starting your own business?

[adrianh]

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

Rubbish, it is the same as saying that you can't practice for the Argus because the bank won't give you R50k to buy a state of the art racing bicycle. Building a business is no different to practicing to run a race.....you simply get started and you keep on going, hell or high water.

[HR Solutions]

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

That is absolute rubbish.

[Houses4Rent]

Vat threshold R1.5Mil most of these small businesses can only dream of doing that kind of turnover.

Is VAT threshold now R1.5Mio? I just checked SARS and it says:
It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve month period.

Anyway, I see one of the major stumbling blocks is our labour law...

[adrianh]

I can not agree more on this statement.
It is a difficult statement to tell customers, that the "buck stops here", I will fix the problem. It is so much easier to say "speak to my manager" and smile at the customer.

It takes great effort to make a successful business, it needs continuous sacrifice and attention, and never mind the many months that there is no income, because any money that does come in goes into keeping the business alive.

What about no public holidays, or limited leave?
What about being the person plugging in the days that staff do not pitch up?
and many more that I can not think of right now

I was at work last night till 19:30. Got home, ate and continued reading up on solving a particular problem. Up at 8 this morning, off to work, then to a client, then to a supplier, then to deliver a order, home, sleep for 3 hours. I am now (Saturday 18:30) back at work casting parts for a Wednesday morning deadline. I will probably leave here in an hour or two only to return tomorrow and spend the day here as well.

The staff on the other hand left at 16:30 on Friday. Some are taking Monday off. The rest will be here on Monday then Wednesday.....They don't care whether the Wednesday morning deadline is met because the buck doesn't stop with them.

Like we said; everybody wants lots of money provided that getting it isn't too inconvenient.

[BusFact]

I can think of numerous businesses that one could start. The reaon that I haven't started anything other that the one that I am trying to develop right now is that I do not have the administative / management / systems skills. I find it difficult enough to try and keep tabs on my own silly litle business let alone 3 more.

I'm surprised you say that. Based on reading your posts over the years, you seem to have a reasonable grasp of the admin and management side of things. Are you perhaps referring to the time required to sort out all the random stuff that goes wrong each day, or are you referring to the weekly/monthly grind of payrolls, tax returns, accounts, etc?

Do the other numerous business ideas have less profit potential than your existing business?

People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money. Many people see having their own business in the same way they see going on a diet to lose weight. You se, people want to lose weight by taking a pill or skipping a meal but it shoudn't be to inconvenient. 99% of people can lose weight by eatng properly and getting exercise and by the same token many people can run their own little businesses....they don't because the inconvenience isn't worth the bother.

Now this one I like: "Its too inconvenient". They like the idea, but not the reality. Thanks for the insight.

[BusFact]

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

I think you are right, in that this is indeed what stops many people from starting their business. They want to start with the "finished product". A nice factory with offices, machinery, stock and a team of sales reps. That of course does require money.

But surely there are ways to start almost any small business idea with very little capital. It just means it takes much longer to get to the "finished product".

Then you go on about skills required overseas. This sounds more like jobs, rather than businesses?

[BusFact]

Anyway, I see one of the major stumbling blocks is our labour law...

I agree its one of the stumbling blocks to increasing the size of a business, but is it really stopping someone starting a small business? Often the small business would be just the business owner - no labour law involved.

[wynn]

Often the small business would be just the business owner - no labour law involved.

Aah! now we reach the kernel of truth behind what you are asking, AdrianH has said it as well

As a solopreneur you have to do everything yourself even if it is inconvenient at the time (Big order to get out, Vat returns to be calculated, public holidays in between)

Then the majority of tentative small business people ask the wrong people the wrong questions, their accountant and lawyer says they must register this and that and do that, then they look at the labour law because they fancy employing someone to do the grind, then provisional tax before they have broken even etc., so there you have it, people are not prepared to take a chance with the threat of big brother looming like a big ogre over their heads.

[BusFact]

That's a fair point. The daunting legislation and administrative requirements is probably a big reason for many not starting a business.

I'm not convinced that scares off everyone though. Surely those who are convinced they are sitting on a profit goldmine aren't worried about taxes and stuff that an accountant can do? Won't that just be paid out of profits?

[BusFact]

Ok, so far we haven't had anyone mention why they haven't started their first business, but I suppose most people who reply on this forum tend to be existing business owners.

Those that have replied seem to indicate that there is so much daily management involved that they don't have the time.

What would stop you then from outsourcing the daily management? Is this simply not practical?