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Buying a Business in South Africa

Written by: Robert Gossel

Article Overview: This article is aimed at the businessman who wishes to buy a business in the South African environment. It mainly deals with the change in mindset from being on a job to running a business.

Buying a Business in South Africa

Business, like life is influenced by the accumulation of all our experiences. An intermit knowledge of the business you intend investing your time and money into is vital. If you have worked on a job all your life and have never owned a business then the transition will be one of the biggest challenges you will have to face. Being fully responsibly for the sustainability of a business with everyone relying on your leadership and for their income is a very different mindset to being on a job where you had a limited responsibility and knew that you would get a cheque at the end of each month.

There are always benefits and disadvantages in every decision, so be sure that you have the entrepreneurial spirit and the right information before you give up the comfort of a job. Ownership has its rewards, but it comes at a price. It is important to be honest with yourself especially when it comes to recognizing the difference between wishful thinking and reality Any successful business owner will tell you that the business is the real boss. The satisfaction and financial rewards of owning a successful business can outweigh the responsibilities by a huge amount. Advice from successful people in the type of business you intend buying and professional advice on how to plan your purchase can make the difference between long-term success and short-term failure.

Now is an opportune time to own a business in South African because we are the most developed country in Africa. We have the best infrastructure in Africa. South Africa is the 3rd best country in Africa to have the least government interference in Business matters. It only takes 35 days to register a company in South Africa; the world average is 48 days, the country has an increasing target growth rate of 6% per annum and we have a government dedicated to democratic principals.

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Re: need advice - Africa is a pretty big place I think it is a question of where in Africa you would like to open a call centre. South Africa for example actually has plenty of call centres already operating, so it would very much depend on what part of Africa you are considering. MichelleJ
Re: Join an inventor's group - [quote="ideasuniversity":1cd2fidx]Thanks for this list, will check out if we have this kind of Group in South Africa. I will be glad to be part of them since I am passionate about creating ideas and implementing them.[/quote:1cd2fidx] I would also be very interested in knowing if there was such a group in South Africa, because I am sure that some of the laws etc. surrounding patents might be a bit different here. MichelleJ
Re: Newbie from Africa - Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ
Re: Newbie from Africa - [quote="MichelleJ":1mn7d7fx]Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ[/quote:1mn7d7fx]Hello MichelleJ,Nice to hear from you.I live in Nigeria.I am also trying to reach the South African market because I know You guys have a lot of unique stuff to show the world!
Re: In-House or Outsource? - Unfortunately, in the South African context, very few SMEs see outsourcing as an option. They believe it is too expensive, and they are paranoid that someone will "steal their ideas". I believe that the three main functions that cannot be outsourced are marketing, sales and strategy. These must be done in house I believe. If you do not have the marketing skills then get them. Hire a consultant or attend a course, but get the skills. Even if you use a consultant, you need to understand what marketing is about, as no one knows your market like you do. Marketing is made to seem difficult and complex, but everyone who really understands their markets, can easily learn to do their own marketing. In South Africa, labour legislation is extremely inflexibile, and consequently labour broking is a large industry. This is an ideal starting point for SMEs in South Africa, as it is a legally complex area, whih comes with severe penalties. I say do it! Rob Smorfitt


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