We're curious to know—where do you bank for your business?

We recently switched to Capitec Business, and honestly, we’re completely blown away by how well their website and app are designed. It's incredibly user-friendly and intuitive, making it easy to manage all our business banking needs.

What’s even more impressive is that we opened our business account entirely online. We have multiple directors, each with their own signing rights, and everything was set up seamlessly through their online platform. No need to visit a branch or deal with piles of paperwork!

After trying other banks like BankZero, FNB, and ABSA over the years, we can confidently say that Capitec Business stands out above the rest. It’s been one of the most pleasant banking experiences we’ve had.

So, which bank does your business bank with, and how has your experience been? Would love to hear your thoughts!

Anybody here who can tell me why it would so hard to get funding to take over a running business, one thats been operating for 30 years with a well established client base and suppliers. Or someone that can point me in the right direction for applications to get these funds.

Regards

In a statement on Monday (4 November), Trade and Industry minister Ebrahim Patel said that the Biz Portal means that an entrepreneur will be able to register a business within a day in South Africa, a dramatic improvement on turnaround times of 40 days recorded by the World Bank 2020 Ease of Doing Business Report.

The current price for registering a company through the portal is R175.

However, Patel said that the Biz Portal was not limited to just registration, and that South Africans will also be able to access several business-related services to help in starting their company.

This was done through a collaboration with the South African Revenue Services (SARS), the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF), he said.

Patel said that this collaboration means that users will be able to access the following features through the portal:

• Company registration;
• Tax registration number;
• Domain name registration;
• B-BBEE Certificate;
• Compensation Fund registration;
• Unemployment Insurance Fund registration;
• Business bank account.

Currently four major banks are participating on the platform and customers will be able to make a direct payment in relation to the registration services at the end of the transaction, be routed into a safe banking platform to apply for a business account or opt for their personal details to be passed on to a bank of their choice.

If you have a reliable internet connection such as ADSL/VDSL, 3G/4G or Fibre, you can get a phone service delivered through your internet connection at a fraction of the cost compared to using a traditional Telkom landline.

The most important takeaway from this article is that a VoIP system reduce costs, dramatically.

Why will a VoIP system reduce my costs of my Telkom bill? 
A VoIP service provider does not require its own separate infrastructure like the PSTN of Telkom. Voice calls are simply transmitted over the same networks that power the Internet. This means that the ISP does not have to invest significant capital in laying phone lines to each and every house and business.

VoIP is essentially piggybacking on the existing broadband network throughout South Africa. So, voice is treated exactly the same as normal data and media such as text and images on the Internet (like a Whatsapp). Just like sending email and pictures is practically free, voice calls also become extremely cheap.

Can I move my telephone number if we change offices?
Anyone who has moved a landline from one home to another knows the pain of dealing with Telkom. With VoIP, the phone number is no longer associated with a single device, residence or physical line, instead the VoIP phone number is associated with you and your account. This enables you to take the number with anywhere you go, and you can even use it to link your cell phone to your business or office – it’s a virtual number.

Who is the cheapest VoIP provider in South Africa for my business?
Skype has three packages
For R57 per month you get 100 minutes to any South African mobile or landline number (effectively R 0.57 per minute)
For R99 per month you get 400 minutes to any South African mobile or landline number (effectively R 0.24 per minute.)
Then for R285 per month you get unlimited calls to any network and landline.

Vox Telecom 
Costs between R234 and R762 per month and calls are charged at R0.46 per minute. (The monthly payment includes money for the calls.)

FreshPHONE
Zero sign up costs, Zero monthly costs, Zero cancellation costs. The call rates for FreshPHONE is R0.39 per min to Telkom local and national numbers and R0.69 per min to all cellular networks.

MWEB
Mweb have two VOIP packages a Starter package with 100 minutes at R59 per month, and a Lite package with 250 minutes at R99 per month. (59c per minute and 39.6c per minute respectively)

Assuming you want a more business specific setup (multiple staff members or a call center) then a PBX system will be required.

The cheapest hosted PBX solutions in South Africa

IS (Internet Solutions) Ignite have a hosted PBX solution for R111 per extension (month to month) or R90 per extension (24 month contract) this gives you Ring groups, Voicemail to email, Call waiting (press 1 for sales) the full monty) and then you have to pay the per minute rates for calls you make which is R0.30 to Telkom landline calls and R0.74 to mobile numbers.

Euphoria Telecom is R65 – R125 per user(extension) per month depending on features. Then their call rates are R0.34 per min to Telkom landlines and R0.79 per min to all South African mobile networks.

Use VoIP for your startup business
Launching your own business is not an easy task. Entrepreneurs soon find that their landline is not enough to handle the needs of the business, no matter how small. This is where VoIP comes in handy. VoIP service can provide much-needed features like auto attendant, group voicemail, multi device ring, automatic call routing etc. which normally requires an expensive building specific business line(s) setup with golden numbers and special hunting group landlines.

Very cool demo

https://businesstech.co.za/news/technology/186705/a-simple-demonstration-of-how-sa-businesses-can-use-blockchain-technology/

Anyone can recommend a provider that could debit order my clients for cheap?

I provide a monthly service that is billed at the same amount per month, but my clients does not pay me, I would like to setup a debit order to minimise my admin time.

Any ideas? 

I tried it with a few, but I find that almost all the general stuff are covered already and niche sites just doesnt get the interest needed.

Also seems in today's world you need to spend a lot of money on digital advertising to get any traffic.

I need something that is not costly and be easy to use. 

We have 2 small warehouses a retail space and office which ideally need to be linked.

Any recommendations.

TIA

“With an absconding tenant, it can be quite difficult as you have to issue a cancellation letter, terminating the lease and indicate the final date of the lease,” says Natalie Muller, Head of Rentals at Jawitz Properties in the Western Cape and Gauteng.

“If the tenant’s furniture remains in the property, you have to make arrangements to store the furniture, but this can be at the cost of tenant. You do have to advise the tenant that the furniture needs to be removed or it will be sold to defer costs - you are not allowed to sell the items without a court order,” says Muller.

An absconding tenant is still liable for performing in accordance with the clauses of the lease and needs to note that even though they have left the property, they need to formally cancel the lease as per the provisions in The Consumer Protection Act.

The Act is defined as allowing the tenant the right to terminate their lease agreement with 20 business days’ notice for whatever, as well as, no reason at all. “This right, however, is subject to penalties and most leases make provision for a penalty that the tenant can be held liable for rental of two to four months depending on the time it takes to find a replacement,” says Muller.

The landlord will have the right to claim the costs involved in finding a replacement tenant, as well as the costs to return the property back to the original state it was when the tenant first moved in.

Landlords need to know that unless the lease with the tenant has been cancelled, an inspection carried out and the absconding tenant notified of the penalties and charges, they cannot allow a new occupant to move in. It is also important to note that any viewings done at the property without the absconding tenant being present, need to be done having given the absconding tenant a notice of the intended viewing. “Even though the tenant has left they still have the right to the lease, pending the formal cancellation,” says Muller.

Landlords should consider themselves lucky if the tenant has left occupancy of the property without owing money. If the right processes are followed, the landlord should be able to rent the property within days of finalising the new lease.

“Having an insurance policy in place, as well as a managing agent to assist can really help landlords through the process,” says Muller.

Source: Property24

While there are pros and cons to both options, Jacqui Savage, National Business Development Manager for Rawson Rentals, says the benefits of using an experienced and trustworthy rental agent will, for the majority of landlords, far outweigh the self-managed alternative.

“Managing a property yourself is not only extremely time-consuming,” Savage explains, “but requires a great deal of knowledge of some quite complex laws and regulations put in place by the Rental Housing Tribunal. South African law tends to err on the side of protecting the tenant, not the landlord, and if your contracts and communications with the tenant don’t fall 100% within the rules from day one, you can quickly find yourself on the wrong end of an expensive dispute.”

“As a private individual, it can be much more difficult not only drafting a solid lease agreement to protect everyone involved, but performing the necessary background checks to distinguish between good tenants and bad,” she says. “Credit checks, for example, are absolutely vital, but can be difficult to action as a landlord in your personal capacity. High-risk tenants are often aware of this fact, and are not above taking advantage of it when they can.”

By using a reputable rental agent, Savage explains that you have access not only to their tried and tested lease agreements, but also their stringent background checks, processes, and hard-earned experience that dramatically reduces the likelihood of signing a delinquent tenant. In the event that you do end up with a less-than-stellar lessee, however, your agent will also be able to help minimise the impact by streamlining the collection and, in extreme cases, eviction processes.

“Trust and reliability is the biggest concern we see from landlords who are considering using a rental agent to manage their property,” Savage admits. “Handing over responsibility for one of your largest assets is understandably daunting, and you can imagine why landlords might be nervous about trusting a stranger with something that important.”

“Fortunately, there are ways to mitigate your risk when contracting a rental agent. Word of mouth referrals are invaluable – a successful track record speaks volumes of a rental agent’s experience and dedication – but the most important thing to do is to check their credentials.”

All rental agents are legally required to have an annually updated Fidelity Fund Certificate (FFC) in order to trade, and must be registered with the Estate Agency Affairs Board (EAAB).

“If your rental agent can’t provide proof of both, walk away and find one who can,” says Savage.

Costs are the other main issue raised by landlords considering the services of a rental agent, and many questions whether the time and effort saved are worth the extra expense.

“What landlords might not realize,” Savage explains, “is that part of the rental agent’s responsibility is to run your property in the most efficient and profitable way for you. With the right tenant management, maintenance, and rental escalations, your property will generate more income under a good rental agent than it would under your own care.

“Add to this the decreased likelihood of non-payment and subsequent litigation costs, and that small monthly agent fee suddenly seems like a very good deal.”

All signs certainly point towards using a rental agent for your investment property but, should you have any doubts, Savage recommends talking through your options with a few shortlisted candidates. “Ask all the questions you need to, and take your time making a decision. The right agent makes all the difference, so make sure they tick all the boxes you need to feel completely comfortable and confident in their skills and dedication.”

Source: Property24

Businesses that wish to transact with government and the formal sector, or that wish to access certain types of government support, are generally required to be registered with the CIPC. For these businesses, there may also be tax benefits to registration, as registered businesses have a lower tax rate than individuals. Even though you may not be registered with the CIPC, you will still have to be registered with the South African Revenue Services (SARS) and will still be liable for tax if your turnover exceeds the prescribed threshold.

For Profit companies:

Sole Proprietor

This is the simplest kind of business structure and does not need to be registered.

• The owner (sole proprietor) trades under his or her own name.

• No separation of personal and business assets and liabilities.

• Sole proprietor benefits from all the profit and assets accumulated through the business

• No limited liability – the sole proprietor is liable for any debt that the business incurs

Private Company - (Pty) Ltd

A private company is the type of company that will not be listed on the stock exchange – shares are never offered to the public. Private companies require the least amount of annual formalities

• Private Companies are granted Proprietary Limited or "(Pty) Ltd” status.

• May be founded and managed by 1 director if required (a one-man company)

• This business structure is ideal for entrepreneurs to run their business with no limit on the number of directors.

• Private companies are not allowed to offer securities (stock, bonds, shares, etc.) to the public and is also restricted from transferring its shares.

• No annual audits required, if all requirements are met (example: all the directors are also the only shareholders of the company).

Personal Liability Company

Personal Liability Companies are most often registered for a group of professionals where the liability is shared by directors.

• Personal Liability Companies are granted Incorporated or “Inc” status.

• Must have a minimum of 1 director.

• As a business owner or professional you can register a company that you want to be personally liable for.

• The Personal Liability Company and its directors, past and present, are jointly liable for any debts and liabilities incurred.

• This type of company is normally registered by individuals such as Doctors, Lawyers, Engineers, Accountants, Sole Proprietors, Partnerships, etc.

Public Company (Ltd)

Public companies raise funds by offering shares to the public, so there is no limit to the number of shareholders

• Public companies are granted the “Limited Ltd” status.

• Only requires one member for incorporation

• No limit on the number of shareholders

• Securities (stock, bonds, shares, etc.) can be offered to the public to raise capital, usually through the stock exchange

• Management is invested in a Board of Directors.

Non-Profit companies:

• A company created for public benefit or relating to one or more cultural or social activities, or communal or group interests.

• The income of a non-profit company is not distributed to its incorporators, members, directors, officers or persons related to any of them.

• The name of a Non-Profit Company will end with “NPC”.

• Incorporated by at least 3 persons for public benefit, social activities, communal or group Interest, etc.

• Must have a minimum of 3 directors.

• The primary objective is to be a benefit to the public and not to make profit.

• Income/property may not be distributed to the incorporators, members, directors or officers.

• Only reasonable compensation for services rendered by them may be taken.

To register your company you will need to use the CIPC (Companies and Intellectual Property Commission) and the first step is to register on their website here.

The second step is to deposit the funds. It’s R125 for company registration without a name reservation or R175 for a company registration with a name reservation. Remember to use your customer code as reference when depositing funds into the CIPC bank account.

Then after that, fill in all the forms from here: http://www.cipc.co.za/index.php/register-your-business/companies/register-private-company/ 

There is also a Step by Step PDF with screenshots:

Private_company_registration_v2.2.pdf

“You ought to be willing to raise the tax level and even slow down the speed” of automation, Gates argues. That’s because the technology and business cases for replacing humans in a wide range of jobs are arriving simultaneously, and it’s important to be able to manage that displacement. “You cross the threshold of job replacement of certain activities all sort of at once,” Gates says, citing warehouse work and driving as some of the job categories that in the next 20 years will have robots doing them. - Bill Gates

Do you think there should be a tax on robots?

How do you define ambiguity term “robot”?

I have always wondered how to put a price tag on what I do. It’s the eternal struggle of the freelance worker: how do you price your work in a way that’s fair to both you and the client? 

I asked this question on Mybroadband and the member there pointed out I must read an E-book called Breaking the Time Barrier, well I just finished reading it and my perspective is changed forever.

I did the per hour cost plus thing since forever as I was under the impression that is the norm and the only way to do it, well one thing I always battled with was what if I work faster on one client and slower on the other one and lo and behold this book touched on exactly that:

Selling hours actually creates a conflict of interest. It puts you and the client on opposite sides of the table. If you’re selling hours, it’s in your best interest to take longer, to bill more hours. But your client is interested in getting solutions that work as promptly as possible. What if you work quicker for one client than another, but deliver the same value? Should you penalize the client you worked longer for? If you’re slow, it’s not their fault.

What changed my perspective was that the book suggested the following ( This is a quote from MyBroadband )

Value Based

Basically - say you're creating a site for someone that sells a R 40 000 product off the site and you're confident that you can get them 5 sales a year due to the website upgrade then they shouldn't have a problem paying you R 120 000 for the site. Their investments is paid off in under a year, pretty good returns!

So interesting read and I would say a must for any Freelancer or prospective Freelancer to find out how to price what you do.

When I am buying books (usually as a gift for someone) I often need to go through titles I never heard about. It's quite difficult to decide which one is good. It would be great if I can just take a picture of the cover with my mobile phone and it would instantly show me real time reviews from the readers (via Takealot or something).

Could also show prices in different stores too.

Users should also be able to review books on the platform that way I/We can build up our own database of reviews and become the Imdb of books.

With Bitcoin being touted as a way to conduct anonymous transactions and as way to compete with government currency, many small business owners wonder what's the right way to accept and account Bitcoin, or if it's legal or ethical, or whether and how they should pay taxes on income received through Bitcoin.

As far as I know, Bitcoin isn't yet formally recognized by governments and authorities as a "currency" (http://www.treasury.gov.za/comm_media/press/2014/2014091801%20-%20User%20Alert%20Virtual%20currencies.pdf). But in practice, Bitcoin is likely no different than accepting payment in other forms, such as cash, or gold, or gift cards or foreign currencies.

Starting to accept Bitcoin for transactions

If you expect that the number of people interested in using Bitcoin is small, you might simply start by posting a sign or a note: "We Accept Bitcoin", and ask people to contact you directly in order to make a payment. Even if hardly anybody uses Bitcoin as a payment method, you're helping Bitcoin in two ways: one, by increasing awareness, and two, by making your customers more willing to accept Bitcoin as payment from others in the future, because now they know somewhere they can spend it.

Utilize a merchant solution

If you sell things on your website (goods or services), you'll want to use a Bitcoin merchant solution to accept the Bitcoins, I would suggest payfast if your margins allow it due to payfast being completely automated and tailored for South Africa. 

If you are or have a developer that runs your website, it would be most ideal to use the API from blockchain.info (https://github.com/blockchain/api-v1-client-php/blob/master/docs/wallet.md) that way you do not have to pay additional transaction fees that traditional merchant solutions have.

If you operate a traditional brick and mortar shop your clients can pay either via QR codes directly into your companies wallet or you can register for a Bitx.co account and have a tablet or smartphone at the business linked to the bitx.co app and accept payments on the fly whilst having a detailed audit trail of each and every transaction. Although I personally suggest using bitX.co it should be noted that I had tremendous success using https://airbitz.co/bitcoin-wallet/ as a Bitcoin Point-Of-sale application in some of our brick and mortar shops. You will still need a Bitx.co account since that acts as an exchange that enables you to convert your bitcoins into ZAR and then you can declare that money to Sars.

Accounting

When a customer makes a payment, you might simply issue a credit to their account. Ideally, you want to enter it in a way that suggests you received a payment. You could consider entering it as a "discount", but you may want to consider whether this inappropriately disguises the nature of the transaction. If on the other hand, you're giving "discounts" for Bitcoins, but then you are selling the Bitcoins for currency and then counting that as income, then chances are good that your calculation of income is making up for it. Ask your accountant.

Businesses that offer gift cards

If your business sells gift cards or gift certificates, you may find that the easiest way to accept Bitcoin is to accept it only for the purchase of gift cards, and then require the gift cards to be used for actual purchases of goods or services. This way, the accounting practices you already have in place for processing gift cards can be put to use. The accounting for Bitcoins would then be minimized to tracking sales of a single SKU.

This method is also ideal for retail food establishments and convenience stores, where the payment of Bitcoins through a mobile phone for a small daily food purchase might be cumbersome or disruptive, especially in front of a line of other customers. Bitcoins in this case would be best used to reload prepaid cards that can then be swiped at point-of-sale.

If you don't accept gift cards, but you already accept credit cards through a swipe terminal, consider the possibility that you could add a retail gift card system through the swipe terminal you already own.

Setting Prices

Some shops set prices based on the current market rate (bitx.co has South African rates) at the time the price quote is presented to the customer. Personally I would suggest to use some form of moving average that way your price does not fluctuate too much considering Bitcoin is quite a volatile currency at the moment. 

Paying taxes on Bitcoin income

Tax compliance is a topic of concern for small businesses. I am not an accountant nor a lawyer, and can't give legal or accounting advice.

But in many respects, Bitcoin transactions work very much like cash. Just like Bitcoin, cash is anonymous and doesn't leave a paper trail, yet is widely used in commerce every day.

Ask yourself how you would handle a cash transaction. Do you accept cash transactions? Do you normally pay taxes on cash transactions? The answer for Bitcoin should probably be the same.

If you opt in to use bitx.co then the accounting would be easier in my opinion since you can convert the bitcoins into ZAR in your bank account and that can then be declared with your income, if you instead opted in to use an anonymous wallet and never convert your bitcoins into ZAR again then the onus is on you to declare your bitcoin holdings just like you do with cash.