Cover
Index 3 5 7 12 18
Administration From the Editor Starting up a new business Doing business in Namibia Property Flipping
Advertisers: 8 TheDifferentiator 10 OTM Mobile 14 Rimflow Business Incubation 16 Malan & Hitge Attorneys 20 Paying too much for MTN and Vodacom data? 22 Scientia Optimate 24 Homestead Architecture
Advertising To advertise contact Theo Koekemoer - theo@thedifferentiator.co.za or Johan van Zyl - johan.vanzyl@thedifferentiator.co.za Rates: R10,000 per issue Different is now listed on a VAS platform with a subscriber base in excess of 1 million people.
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From the Editor In the previous issue we have looked at some of the characteristics of succesful entrepreneurs. In this issue we look at two more: Project a positive business image. You have but a passing moment to make a positive and memorable impression on people with whom you intend to do business. Business owners must go out of their way and make a conscious effort to always project the most professional business image possible. The majority of business owners do not have the advantage of elaborate offices or elegant storefronts and showrooms to wow prospects and impress customers. Instead, they must rely on imagination, creativity and attention to the smallest detail when creating and maintaining a professional image for their business. Level the playing field with technology.
advantage of using it. One of the most amazing aspects of the internet is that a one or two person business operating from a basement can have a superior website to a R100 million company, and nobody knows the difference. Make sure you’re keeping up with the high-tech world as it suits your needs.. The best technology is that which helps you, not that which impresses your neighbors. Entrepreneur Competition We are in process of launching an entrepreneur competition. This competition will help to shine the spotlight on successful entrepreneurs with the aim to inspire others to venture into and succeed in the world of business. South Africa needs entrepreneurs! Johan van Zyl
You should avoid getting overly caught up in the high-tech world, but you should also know how to take
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Starting up a new business?
These are some of the things you have to do when starting up a new company: Company registration Consider using Shelf Company Warehouse. They are excellent and they are able to register a company for you for R3,000 in a single day! That includes the name, the issue of share certificates, appointment of directors etc. Tax registrations Register for Income Tax, PAYE and VAT if required.
er this is one of the first things you would like to get in place. Especially the funding requirements and roles and responsibilities of each shareholder should be properly set-out. If you have a minority stake in the business then you need to ensure you have minority protection. Use an attorney to draft this! Other agreements Agreements for the use of licences, suppliers and clients needs to be well drafted. Tips:
Use a tax consultant to do these. The Never do work as a sub-contractor registration for VAT is complex and unless all terms and conditions are if you need to claim VAT back make properly documented. sure this is done properly. Open a bank account FNB’s service is good is good and you could have a letter within hours stating your company’s bank details.
Shareholdersagreement
Stay clear of nepotism. Keep accounting records up to date Pay your VAT and PAYE on time!
Ask TheDifferentiator to assist you of Malan & Hitge Attorneys.
If there are more than one sharehold
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Doing business in Namibia With economic growth averaging 6% per year, a peaceful and stable political environment and ideally situated as a gateway into Southern Africa, Namibia is becoming a sough-after investment destination. The country is rich in mineral resources and boasts excellent roads, railways and IT infrastructure. Its banking sector is one of the best regulated in the world while power and water utilities have received high international credit ratings.
Namibia aims to become a logistics hub in Southern Africa and is investing heavily in the port of Walvis Bay and several large energy projects. For South African companies active in the transport & logistics, maritime industry, energy, water, science health or agricultural sectors there are opportunities in Namibia. Francois Malan of the law firm Malan &Hitge will gladly assist you with any questions you may have. His email address: francois@malanhitge.co.za
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Rimflow Incubator Rimflow is an Enterprise and Technology Incubator. Unlike traditional incubators that provide infrastructure, assistance and expertise, amongst other resources to innovators, Rimflow actively participates in the establishment of a proven and matured small business, through its bespoke incubation model. Rimflow typically identifies a prototype, assesses the commercial viability, refines this in line with market needs and develops the operational infrastructure necessary to create a sustainable and economically viable entity. The Rimflow business model is unique in that:
Programs are matured, packaged and readied as commercially viable entities by Rimflow Matured Programs are divested by Rimflow into predominantly BBBEE structures Rimflow retains a minority interest in the business to ensure growth and continuity Rimflow assists further with capital raising requirements of matured Program investors. Contact: Csaba Varvalvi csaba.varfalvi@rimflow.net Mobile: 082 852 2285
Prospective technologies are subjected to a pre-incubation assessment to determine viability Approved technologies are admitted into an incubation Program Incubation Program resourcing will be through university graduates who will be groomed as the management team to participate in a MBI when Rimflow exits the programs at maturity
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Property flipping Property flipping could yield good rereturns for an investor. What are the pitfalls?
ing and flipping properties with great potential to yield good stable returns.
Municipal and eviction costs
Condition of property
In the case where the property has been repossessed by the bank, an investor will need to be very mindful of the possible municipal and eviction costs which might become part of the sale process. These costs are usually not included in the purchase price and vacant occupation is also not always guaranteed.
Owing to their dilapidated conditions and dependent on the extent of the damages, maintenance in the form of refurbishment becomes the biggest factor to consider when buying a property to flip around. Some degree of maintenance will be required to bring the properties back to a liveable and attractive standard.
The new owner might find themselves having to apply for an eviction order to lawfully remove the occupants from the property, adding unnecessary costs and delays to the investment. These expenses can sometimes be high and hit the investor hard in the pocket, causing some undue delays in the flipping process.
Are you interested in getting involved speak to Johan van Zyl who will gladly assist. Email: johan.vanzyl@thedifferentiator.co.za
However, if an investor has a clear indication of the estimates of a flipping project and has saved enough money to cover all necessary costs, then they can proceed purchasing dilapidated properties to flip around. And with all the necessary boxes ticked beforehand, then an investor will make a sound investment by buy
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