Welcome To The World Of Entrepreneurship
A couple of centuries ago, perhaps even a few decades, falling into a space of formal employment straight from college was a walk in the park. On a good day, one could even secure a contract with benefits in their final year of study. In present day world however, life has become a lot more challenging, forcing even those with contract-based jobs to diversify their source of income, and venture into entrepreneurship. The advent of Covid-19 has further proven that the world of business is a game of survival of the fittest and only the winning strategy will leave the last man standing.
The textbook definition of entrepreneurship is the process of setting up a business, and an entrepreneur is the mastermind behind the business; pretty straightforward, except it’s not that simple. Entrepreneurship involves a lot of concepts, that constantly evolve to keep up with the fast-changing world we exist in. The most important thing to note is to ALWAYS start. We live in a world where time waits for no man. Bringing it in context, NO! you cannot materialize your idea in ten years; what if it is not relevant in ten year? Not forgetting the very idea that you may not even be of this world in ten years! Of course, the biggest issue is always start-up capital. A number of young people sleep on brilliant ideas because they are hoping to eventually get enough money to kickstart their startup and this is where another fact of life comes in. There is no such thing as ?enough money’, but ‘humble beginnings’, is a real thing. The latter actually makes up for a good inspirational story, because if you come to think of it, almost every successful start-up started under pathetic circumstances, but a good business strategy, hard-work and perseverance makes for a good formula.
Types of Entrepreneurship
As mentioned earlier, the subject of entrepreneurship diversifies with the world, and so there is not a specific number of types that are there because every day, something new comes up. Needless to say, this blog will only discuss three types of entrepreneurship relatable to a young Motswana looking to start their own business.
It is up to an individual to decide which category they fall into. An important warning is that entrepreneurship is not an overnight process. And this is a mistake a lot of newbie entrepreneurs make, walking into the game with the hope of becoming instant millionaires.
Everything in life is a gamble, but entrepreneurship is not like The Lotto where one may stumble upon a streak of luck and make it big. It is a tedious journey, emotionally draining just as it is equally financially frustrating. Before you get started think long and hard and be prepared to go through a roller-coaster of experiences.
1. Start-up Entrepreneurship
This involves game changers, who have come forth to brainstorm genius ideas that focus on making the world a better place. They focus on gaps within the market and try fill in the loopholes to ensure a product or service is a lot more efficient. Start-up companies often get their funding from venture capitalists and bring in a team of specialists to help create a winning product. Examples of such businesses are Uber, Facebook and Instagram.
2. Innovative Entrepreneurship
These entrepreneurs have ideas that are centered around world innovation. Like any other business, the goal is to make life easier, to make it a lot more convenient and comfortable. One key thing about innovators is their ability to be unique. Each idea is guaranteed to be different from the next.
Quite self-explanatory, hustlers are what one might call the diamond in the rough. They do not let circumstances define their future, and go the extra mile to turn nothing into something lucrative. Hustlers are anti-quitting. In most cases, they would have numerous business attempts, that fail dismally but refuse to give up until they get it right. Hustling is fueled by passion and hardship and in most cases, combined with a desire to break-away from extreme cases of poverty.
Registering A company
Without getting too technical in today’s blog, the first easiest step, after the brainstorming is to register a business. This is easier because one can register a company even as they perfect their business plan (to be discussed in future blog posts), but today let’s focus on CIPA.
CIPA is an organization in Botswana that deals with legal registration of any business and key fact to note is that everything can now be done on their website and it is extremely budget friendly. Online registering is very convenient, especially in these trying times since the advent of Covid-19. A lot of people are lazy to self-register, and often waste the money they could save towards their big ideas, in paying off other people, who are in business to register for them. The irony of it all lies in the youth, being lazy in registering but hoping to work hard once the business is set up. click here to go to CIPA website with a step-by-step guide on self-registration online;
What is a company Secretary/ Can you Register A company Without A secretary?
A company is a legal entity representing a group of people. Most common types include a private limited company and a public limited company. A company secretary is a senior position in a private sector company or public sector organization, responsible for upkeep of the following:
- a register of present and past directors and secretaries
- a register of all shareholders, past and present and their shareholdings
- a register of any charges on the company?s assets
- minutes of general meetings and board meetings
- Filing annual returns.
- Arranging meetings of the directors and the shareholders.
It is possible for an individual to register a business( we’ll define a business loosely in these blogs to mean a business structure which is not a company e.g., sole proprietors and partnerships) however all companies must appoint a registered company secretary before they can be registered. Please further note that it is mandatory according to the Companies Act that all companies appoint a secretary within three months of incorporation.
There is a small financial difference between registering a company with a secretary and without. However, your best bet is to just go for registration with a company secretary because the law ultimately requires you to do so anyway. The total cost for registration is P530.00, broken down as follows;
P20.00 for Name Reservation
P360.00 registration fee of payable upon submission and acceptance of registration documents.
P150.00 in the case of a business and name registration for type RBN 2 form, to be submitted and completed with applicant’s identity.
NB: Bank account opening documents are free from any bank of your choice and the deposit is P1000.00 which remains in the company account to use at your discretion. Once that is sorted you are good to go. For companies that need to tender, there are certain PPADB tendering codes that a company requires and that will be discussed in the future. Detailed breakdown of costs and relevant forms.
It is important to remember that name reservation is not an instant process. Coming up with a good company name could take weeks and the system may reject your ideal name for a number of reasons, but mostly because your preferred name, is most likely in use. Do not despair, just be creative as possible but make sure to use a name that will best represent your brand and also easy to remember for your future clientele. Furthermore, when registering with CIPA take note that name reservations are only valid for 30 days and reservations are accepted for business and or company registrations. Anything later than that, you forfeit the company name and will undergo the same steps towards reserving a new company name.
Are Shelf Companies A Great Investment?
You may be a lazy entrepreneur with a great vision, but not so great with the paperwork. In that case, is it a wise decision to buy an existing shelf company you might be wondering?
It is definitely not the cheaper option, but will most certainly save you time and money. The average shelf company will cost you at least P5000.00 with all the necessary documentation and a bank account. However, Companies may go up to +/- P15000.00 when you throw in PPDAB codes. Now imagine what you could do with P15000.00 if you just chose to click online and save yourself some trouble by following the step-by-step registration process? Food for thought!
Exciting read? Lookout for next week’s post when we discuss PPDAB codes, Tax and property acquisition. Highlight in the comment section, through questions and suggestions, of topics you would like discussed on our weekly blog. Cheers!
Miss Victoria Marumo is a journalist with a distinctive and creative voice. Her avid reading complements well with her writing in providing captivating information on business topics.Writer: Victoria Marumo