So, you’ve got this dream; it’s brilliant! You can’t wait to turn it into a multi-million-rand business, create jobs and grow the South African economy. But you’ve got a few obstacles; you don’t have the experience to run a business and you don’t have the funding to implement your idea. Where to from here?
It’s often very difficult to get funding as an SME in South Africa; so instead of sitting around and waiting, START. Take whatever money you can, borrow from your aunt if you must and get ready to bootstrap. Register your business with CIPC, open a business bank account, start developing your business and begin trading. In no time at all, you’ll be a fully-fledged business and even though you aren’t worth millions YET, you’ve started and you’re building a track record for your business. This is important when it comes to securing funding.
Within 6 months, maybe 1 year, your cashflow is increasing and you’re making a little more money, perhaps even profit. You have proved to everyone and most importantly to yourself that this dream can actually prove to be a viable business. Problem! You’ve reached your ceiling with the money that you have, and the business is growing faster than you can afford (remember you are creating a multi-million rand institution over here). Between salaries for the salesmen you have hired, tax, offices, phones bills and everything in-between, your foot is flat on the accelerator and you are battling to cope. The obvious next step is taken, and you’re on the phone to your bank to assist your business with funding… but your application is rejected.
This issue is something experienced all too often by small businesses in South Africa and makes it almost impossible for businesses with great potential to grow, let alone survive.
You’re in luck because this is where South African small business funders (such as GroWise Capital) enter the picture. Funding companies are the super-heroes for South African small businesses; they step in to rescue the damsel in distress. You had the foresight to start trading and build up a track record even if it is not perfect. You’ve started growing your registered business and you’ve got a business bank account with a trading history. Your foresight in setting up your business correctly has made it easier to qualify for funding and you’re all set to apply. You’ve been saved!
At GroWise Capital, we take pride in being able to help our clients take their businesses to the next level. We are driven to help grow the South African SMMEs market one business at a time. For more information about funding and qualifying criteria please visit our main website by clicking here