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(South Africa)


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Lets now focus on the one business idea you have chosen to use in the Bizempire Sideline Plan.

If it has low setup costs, low unit costs, requires no other staff and has time flexibility then you're on the right road. However for most of you we now need to work on lowering the setup costs, unit costs and time rigidity of your business idea. Sorry some creativity is going to be required here and you will probably have to sacrifice some of your grand business vision.

Remember, this is just a starting point. You do NOT have to start out with massive machines, factories, offices, hundreds of staff, stock for 6 months and all other similar expensive items. In years down the line we certainly hope your business will be like this if it is what you want, but for now lets come back down to Earth and ruthlessly lower our expectations.

Forget employing anyone at this stage. In South Africa and probably in many other places too, staff are expensive and a long term commitment. Family helping you out free of charge is okay, but change your idea if it requires any employees. If you need other skills, rather sub contract these out as and when required.

Eg: If you require your product to be packed and shipped within your city, it may appear cheaper to employ someone to do this for you. Forget it, rather pay a company to do this for you. It may cost more per unit now, but you're probably forgetting about leave pay, maternity leave, sick leave, shrinkage, supervising costs, and CCMA costs if it all goes wrong. Rather make half the profit now, but at low long term risk. If your product sells well, then you can look at employing your own staff when your business is already established.

For the moment stay away from a wide range of services and start by focusing on one. Eg: If your full business idea is to design, make and install kitchens then great ... for later. For now start only with design and get someone else to make and install. Yes I know there is less profit and you want to control the whole process as its your name on the line. Unless you have a few million Rand to risk, then suck it in and deal with it.

Focus first on impressing everyone with your brilliant designs. Then once you have a few contractors or architects who are regularly using you, then you can start slowly moving into design and installation. The odd sub contracted mess up may damage your design reputation a little with some, but it will be nothing compared to the damage your bank will do to you if you over extend yourself financially and your business fails when your biggest customer goes broke before paying you.

Next we will tweak your idea further still

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