Company Registration at CIPC, SARS, COID, CUSTOMS, CIDB & More
Get Compliant from Anywhere, Easy and Fast!
Company Registration at CIPC, SARS, COID, CUSTOMS, CIDB & More
Get Compliant from Anywhere, Easy and Fast!
This is Step 9/12 of our series “How to Start a Business in SA Successfully?”
In this 12-step-series we discuss the 12 Core Elements of How to Start a Business in South Africa. We cover all the big questions… how do I create a product or service that I can sell? price my product or service correctly? keep control as I grow?
Last week we covered how to start making sales. If you missed it, simply click here to catch-up now.
In an interview style discussion, Brend will lead us through these start-up success steps. Brend is SA’s leading start-up success consultant.
To watch the Video Interview, simply click on the video below:
You can also read through the interview content below – question by question.
“What you want to do is take your product or service and unpack it. There are a couple of key things that play a vital role within your product or service. I am going to run through them.
1) How much does it cost?
2) How long will it take?
3) What do you require from the client to continue with the service?
4) What is the step-by-step process to deliver the product or service? Lastly, accessibility. Is there any obstacle that’s blocking your product or service efficiency or effectivity to deliver the product or service?
Once you unpack it like that, your package starts to make sense. Then you can dig in to create systems to create this product or service repeatedly.“
“When it comes to the profitability of the products or services, you need to ask yourself:
1) How much will it cost me to create or deliver the product or service?
2) How long will it take? Because ultimately the time it takes will also play a role in the profitability.
3) What other expenses will be involved when it comes to delivering my product or service?
4) What is your profit goal?
For example, let’s say I charge R1000 for my product or service and I want to make 50% profit. This means I want to make a profit of R500. Let’s say my costs are R200, which is 20% of the total asking price, and I’m willing to spend 20% on marketing and advertising, that’s another 20%. So now I sit with 40%, i.e., R400. That is the amount it’s going to cost me to deliver the product or service. If I’m going to give my salespeople 10% commission on making a sale, I will hit my target of 50% cost and 50% profitability.
That’s profitability in a nutshell. It can obviously get a bit more complicated than that, but just stick to these principles and you will get to the profitability.“
“What is very important is, once you have created the product or service, you must systemize the process to duplicate the product or service more than once.
Take McDonald’s as an example. McDonald’s created a system to make a Big Mac more than 69 million times per month.
The last thing that comes in is your distribution. How will I take the product or service and distribute it? Through that, we can see McDonald’s is now distributing their 69 million Big Macs through their 37 thousand franchises in the world.
After you create the product or service, you want to look at your duplication. How do I systemize that? Then you need to look at your distribution channels.“
When you want to create a product or service that you can sell, you need to consider your customers and what they want to know and how to distribute it.
In our next Session (Step #10), we will cover more aspects on: How to Create Structure in Your Business. See you there!
Start your journey to a become a successful entrepreneur in South Africa by Signing up for our FREE Online Startup Workshop. In this workshop we’ll train you how to apply this information above and much more. Best of all – it is FREE!
If you are already a trading business and need funding or support to grow, our IMCSA Accredited Business Coaches are ready to assist. We train you how to apply this information above to your business and much more.
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