Steps for builders to start their own business.
Once builders have a business plan, they must do some necessary admin.
Step 1 for builders: Create and register your company
If you are a sole proprietor, skip this step. However, if you want to trade as a private company, you will need to be audited every year. Choose your auditor, and then ask them to assist you in acquiring the documentation you need to set up your company.
Step 2 for builders: Open a bank account
If you are a sole proprietor, you can trade with your personal bank account. However, if you have a private company, you must open a bank account in the name of the company. In order to do this, you will need your company registration documents, the ID books of all members or directors of the company, as well as proofs of the business’s address and the home addresses of all members and directors.
Step 3 for builders: Start trading
As long as you have a bank account to make and receive payments, as a well as your company documents, you can start trading as a corporate entity.
A note for builders
You will also have to register for income tax, VAT, UIF, COID, PAYE and SDL. Plus, certain businesses, including food, liquor, gambling and erotic trades, will require a license to operate. For more information, contact your local municipality.
Tips for builders
• Don’t cut costs. Rather, educate your clients as to why your quotes are the price they are.
• Make sure that you’re a qualified builder, or that you’re willing to hire qualified contractors if you’re not qualified yourself. And, only use products that have been SABS approved.