If there’s one thing South Africans are known for, it’s hustling. As incredible as our country is, it isn’t without its challenges. That’s why more people are turning to self-employment and small businesses as a source of primary or supplementary income; when the struggle gets real, so does the hustle. Of course, without capital getting a small business off the ground can be a struggle in and of itself. But luckily you’ve got options.
Chat to the bank
Getting a loan from the bank can be fairly straightforward, as long as you have all your ducks in a row. From a personal point of view, it’s important to ensure that you have a clear credit record. From a business perspective, you need to present a comprehensive business plan, financial projections and a full set of financial statements to give the bank an overview of your current affairs.
Find a partner
You don’t have to be in this alone. Set out to find an investor who can provide you with startup capital in exchange for shares in your business. While partnerships are infamous for the long-term complications they come with, you can dictate how involved the partner will be in the decisionmaking and business operations by drafting detailed terms. For instance, you can opt for a silent partner or a mentor, if your partner has a world of knowledge and experience that can benefit your business.
Turn to government
The government offers various funding programmes, including:
- Small-business development funding for previously disadvantaged individuals.
- Grants, loans and tenders for businesses in industries that grow the economy.
- Enterprise development programmes that encourage corporates to fund small businesses.
- Department of Trade and Industry funding for businesses in various sectors.