{"id":68990,"date":"2021-04-09T12:56:54","date_gmt":"2021-04-09T10:56:54","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=68990"},"modified":"2026-01-29T15:45:29","modified_gmt":"2026-01-29T13:45:29","slug":"do-these-3-things-before-launching-your-small-business","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/do-these-3-things-before-launching-your-small-business\/","title":{"rendered":"Do these 3 things before launching your small business"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tBusiness planning<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tDo these 3 things before launching your small business\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tWarren<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

There\u2019s an entrepreneurial maxim that anyone starting a business should take heed of \u2013 make time to work on your business, not just in it.<\/p>\n\n\n\n

In other words, you need to find a balance between the day-to-day activities associated with running your business, and the bigger, strategic thinking needed to steer your company in the right or desired direction. The former always seems more urgent. But without the latter, your business is likely to tread water when it should be making waves.<\/p>\n\n\n\n

Before you open your doors, try to be as prepared as possible for the daily grind. This way, when you\u2019re in the thick of it (sometimes it\u2019ll feel like climbing Mount Kilimanjaro), you\u2019ll still be able to step back once in a while and reflect on where your business is headed.

\n\tDownload your free copy of Quickstart guide to Payroll Tax Year-End<\/a>\n<\/div>\n<\/span><\/p>\n\n\n\n

Here are 3 things to do before launching your small business.<\/p>\n\n\n\n

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  1. Decide on the structure<\/strong><\/h2>
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    Will you trade as a sole proprietor, or as a registered company? The path you choose will determine the preparation needed.<\/p>\n\n\n\n

    As the name suggests, a sole prop is better suited to businesses that are run by individuals. Under this structure, there is no separation between the business and individual, both from a liability perspective (your creditors can lay claim to your personal assets) and a tax perspective (your business income is incorporated into your personal tax return).<\/p>\n\n\n\n

    For these reasons, you are not required to register your business, which means less paperwork. Once your value of taxable supplies hits R1 million, you\u2019ll need to register for VAT with SARS. And if you employ people, you\u2019ll also need to register for PAYE, UIF,<\/a> and potentially SDL. Of course, you can start out trading as a sole prop and register your business at a later stage.<\/p>\n\n\n\n

    However, there are several reasons to register your business from the start.<\/p>\n\n\n\n

    Incorporated businesses are generally seen as more trustworthy; it gives your business the opportunity to raise funding, and it creates a legal barrier between your personal assets and the liabilities of your business. The downside to these benefits is more paperwork, both upfront (registration process) and on an ongoing basis (auditing of annual financial statements).<\/p>\n\n\n\n

    VAT and employer registration work the same as they do for a sole prop, but you\u2019ll also need a tax verification, tax clearance certificate, and a Letter of Good Standing from SARS as a registered business.<\/p>\n\n\n\n

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    1. Confirm your name, place of business, and industry<\/strong><\/h2>
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      Sometimes, there\u2019s more to simple things than meets the eye. The name of your business, where you\u2019ll operate from, and which industry you\u2019ll operate in all need attention before you start operations.<\/p>\n\n\n\n

      We can\u2019t help you find a name for your business (here\u2019s a good resource<\/a> for that), but we know what you\u2019ll need to do once you\u2019ve settled on one:<\/p>\n\n\n\n