One of the first requirements when you start a business is to get your paperwork in order. First register your company, get your tax clearance certificate and open your bank account. I say screw that, first go and do your thing.
Start your business and make some money, then you get your paperwork in order. Invest the money you were going to use to get the right documents in your company because in the beginning every cent counts.
The service to register your company is free in South Africa. For some people it took two weeks to register their company, while other waited three months without any response. You can also pay someone to do it on your behalf.
Does this mean that your business has to wait until all the documents are in order? Not a chance! Don’t wait for the government to tell you that now your paperwork is in order and you can proceed. Very few businesses make millions in their first year, the chances are in the first few years you’ll barely break even. Start with the business of business as early as you can.
Chances also are that once you’ve registered your company and you start running it, you might realise that you’re hating it and after five minutes you’ll return to the job market.
In too many instances you’ve spent your money on getting all the documents in place and registering with all the relevant bodies, and then you’re left with little money for the actual business. Clients won’t automatically flock to you because you are registered. Clients will come to you based on the service or product you are providing, and how good you are at delivering on your promises.
Some of the best service I’ve received was from guys who asked that I pay the money into their personal bank accounts. They didn’t have registered companies but the service they offered was phenomenal. Who’s going to be the registration police and arrest you, struggling entrepeneur? Focus on doing what you do well, that’s all that matters to most clients. And show the clients that they matter. The survival of your company will depend on it.
I’m not saying that you should completely ignore getting registered because in some industries you can’t do any business if you don’t have a license. What I am saying is, don’t let it be your focus when you start out. Make the money first and then get everything in order. Because when you have the right documents you can start playing with the big boys. The difference is then you will have the reputation, the experience and the skills to move into bigger and higher circles. Then you won’t be the new guy with all the right documents but nothing to show for it.
Let me end off by saying when you eventually do have those papers it gives you a bit of personal boost and you truly feel part of the industry. You can now stand up with confidence and say this is who I am and this is the company that I own. And more doors will open. But before then, get the experience, get the clients and do the work.