This article is aimed at anyone who wishes to set up a business for the first time, particularly in South Africa.

In this article, we hope to be able to help you take the right steps necessary to set up a successful business and guide your decision-making. You may have already made up your mind to go ahead with your start-up and now need that final push to get you over the starting line.

At some point or another we have heard stories of businesses that started up but folded. Many of them, fold within the first three years. We say, do not allow these stories to discourage you. Failure only happens when you give up. What you don’t know and is not often told, is that most successful businesses have experienced failure at some point or other. Businesses succeed when the inevitable missteps that are encountered are used as catalysts for adjusting or even changing the business model.

We are a  family-owned business. We offer professional consulting services and investment services. I can describe our experience as climbing a mountain with all the equipment and confidence in one’s skills but meeting descending climbers discouraging you from climbing further. You must keep going!

Part 1: What it has taken for us to set up a business

Our reasons for setting up a family business may not be much different to those of many emerging businesses. We are a highly skilled team of professionals with many years of experience in different fields and sectors. Each of us having  spent much of that time being too busy to have the time or space to consider taking the risk of starting a business. It was a senior member of our family with wisdom and hindsight who persuaded us to bring together the richness of our skills and experience that we have accumulated over decades to start a business that could differentiate itself in the market.  We all had enough responsibilities to discourage us from even considering dropping the standards of living were used to. However, timing, the coming together of minds, passion and determination on our side resulted in what has been a rocky, bittersweet but immensely rewarding journey towards build a successful business and legacy for future generations.

With this said, I must  state upfront that setting up a business is not for the faint-hearted. This may sound like a cliché, it is not.  It will require you to put in long hours, hard work, dedication, patience, sacrifice, a vision, and an insurmountable determination to see it through. There will be plenty of disappointments and doubts, you are constantly anxious that enough money will come in to enable you to pay your bills and leave enough for you to be able to take care of your own personal needs. It will require imagination, some sleepless nights and determination to pull it together.

A basic knowledge of the industry in which you want to operate is essential!

It is advantageous to have some knowledge of the industry in which you want to operate in and how it works. Without some basic knowledge it will be a little harder and more challenging to set up. This should not deter you.

Research your industry

It’s advisable to do some background research into the sector you want to enter to get a basic understanding of it. Your research should answer the basic questions you need to assess the viability of your business idea.

The internet is the most obvious to start basic research but be sure that the source is credible. The government has offices and departments where you can get assistance to start your business. A lot of it is offered free of charge.  They will offer guidance and direction on what you need to do to start up your business.  In some instances, they have hub centres to assist you get your business idea up and running to a certain point.

The more traditional old school way to access information are the public libraries where you are likely to find lots of material to do your research, although not always current.

Don’t underestimate the assistance you can get from people already in the industry you are entering.  If you know anyone who is already in business and whom you trust, approach them and ask for information.

It is advisable, if you have the resources to hire the services of professional consultants and lawyers to assist you with the background work. Think of and explore other avenues where you can possibly go to get assistance. 

We have come across many people with innovative ideas that they can turn into a viable business but have limited capacity to turn them into revenue, and most importantly, a sustainable business that will earn them a comfortable lifestyle.  This lack of knowledge is discouraging because it makes the task seem too large and daunting.

The real risk of idea(s) being stolen also tempts one to abandon an idea once you discover it has been copied. Don’t let that deter you because the copy is unlikely to be as compelling as the original idea which was well thought out and researched and is known only to you, its originator.

If you do not ignore the noise, you may spend the rest of your life wondering if you should have taken the risk. Do not despair, my advice to you is to take the plunge with the passion and commitment that gave birth to the idea.

There is plenty of help there. You just have to find it!

Obtain professional business consultants or legal services as soon as possible, as a first order of setting up your innovative business

As a practicing attorney, the best advice I can give you is to find someone you have complete trust and confidence in to help you to turn your idea into a business.  A reputable consulting firm or legal firm should be your first investment.  An attorney will assist you and protect you and your idea from the sharks. Even if you do not have money, finding the right professionals to get your business off the ground is still possible. A wise professional knows that your success will generate business for them in all sorts of ways in the future. Professionals who understand the difficulty that small businesses encounter with raising capital, are often willing to assist pro-bono or at significantly lower fees. You may also consider offering them sweat equity for work done i.e.  a small stake in your business equivalent to the work undertaken. Equity investment comes with long term interest as the professional will need to ensure good returns on the sweat equity.

In summary, my advice is that when you think you have a good idea and want to turn into a business, but you don’t have the skills and knowledge, find yourself a good and trusted lawyer or consultant who will not only help you to turn your idea into a viable business but will also manage your legal risk, protect your intellectual property and help you navigate your way to reach your dream of business success.