With the holiday season upon us it’s a good time to reflect on your plans for 2008. Many people will be making decisions in the next few months about changes in their lives, including career changes.

“Many people dream of being their own boss,” says Ashley Mathura, Head of Solutions for New Businesses at First National Bank (FNB). “If you’re thinking along these lines, the holiday period may be a good time for you to do some work towards making your dream a reality.”

According to Mathura, planning is vital for any new entrepreneur to succeed in business which is why you should take advantage of the quiet time during December and January. “There are many things you need to research before you start a business. Analyse the market for your business idea from a competitor point of view, work on a marketing and sales strategy, source suitable premises, look at product pricing, analyse your likely human resource needs and investigate purchasing the equipment and vehicles you may need.”

Mathura also highlights the statutory requirements for getting a business up and running. Since this can be a long process, it is best to do this sooner rather than later. Even if it is just a matter of collecting the forms you need it is best to do it now while you have time during the holiday period. Not only is there a need to register with the South African Revenue Services (SARS), you also need to decide what form of business you want to trade under, such as a sole proprietorship or close corporation.

A business plan is a core part of getting financial assistance

Planning a new business involves the drawing up of a business plan. “This is a core part of getting financial assistance from a bank,” Mathura explains. “The bank will look closely at your business plan in order to assess whether your concept is likely to work or not. And it helps the bank classify you in terms of the risk involved which determines whether they will fund your business and, if so, what interest rate you will be charged.

“Getting a business plan together isn’t something you can do in a day or two. A thorough plan can take a number of months to put together because it reflects all the research you would have done in relation to your business idea,” Mathura adds.

Many banks have products providing business solutions to budding entrepreneurs and it would be worthwhile to use your time to compare their offerings.

Take, for example, FNB Solutions for New Businesses that helps aspiring entrepreneurs get into business quickly and efficiently. Existing customers receive a 20 percent discount when they use the services of Shelf Company Warehouse, who offer a reserved account number, VAT registered companies or close corporations and tax clearance certificates – all important for customers wanting to tender for a contract.

Aside from business cheque and transact accounts, entrepreneurs can access business plan and cash flow tools through FNB Commercial Banking. The bank also offers its business clients access to the Biznetwork online, an event networking initiative that will include online business plan and cash flow tools from January 2008.

In addition, mentorship is offered by FNB Commercial Banking, in association with Enablis, Khula, Sizanani and SEDA, while start-up finance can be arranged through Khula, the Umsobomvu Youth Fund and Enablis.

Franchising is attracting increasing attention

When looking at business opportunities, the franchise field has also attracted increasing attention, but there’s much ignorance as how to get into franchising.

“We often come across people who say they want to own a franchised business, but they have no idea of the industry they want to go into, no concept of the upfront funds they need from their own savings and they have no idea about whether a particular franchisor would consider them as a part of their business,” comments Riaan Fouche, Head of Solutions for Franchising at FNB.

Important points to consider when it comes to getting into business via the franchise route:

• You must have capital of your own. This can amount to many thousands of Rands, depending on the cost of the particular franchise and the franchisor’s rules.

• You must have a good idea about the industry you are interested in before you approach a franchisor to buy into his business.

• You should only approach a bank for finance once you have been accepted as a franchisee by the franchisor.