A guide to setting up your business

business

You may be thinking of running your own business someday and have been wracking your brains on how to get started. The fact is getting started is the hardest part. We have dropped a few lines to help you get the ball rolling.

1. Make a business plan
It is always better to write down a business plan. A good plan allows you to anticipate all the hurdles you have to overcome to get your business going. This will help you strategise how to navigate all the steps ahead. Indeed, not all businesses start with a written-down plan as many entrepreneurs rely on their intuition and business acumen but it will help you to organise yourself better.

2. Know your market
Are you producing for local consumption or export? Is the market already saturated? Is there a need for your product or service? Take the time to understand the market around you to find out what works best and what people are willing to spend their money on. For you to be successful, there must be someone willing to buy what you are selling. You will also need to figure out the selling price of your product or service. Determining a realistic profit target and understanding the operating cost of your business, will help you to work this out.

3. Secure your capital
Make sure that you have the necessary capital to launch your business. Prepare yourself to meet most of the costs of your business in the beginning. This can include one-off payments such as start-up equipment, registration and license fees etc. If you can afford to put your own money in a project, all the better as your debt burden will be lower. Again, this is why savings and a savings plan are important as they can provide you with start-up capital for your projects. If not, there are other ways to secure capital such as small business grants, loans, family or investor support.

4. Register your business
There are many steps you will need to go through to legally run your business. You have to register the name of your business at the Registrar Office, get a license for your business at the Seychelles Licensing Authority and register your business for tax purposes with Seychelles Revenue Commission. Depending on the nature and size of your business, you may also have to register your business with other entities such as Senpa, FSA, SFA, SMSA etc.

5. Insure your business
Insurance will help you keep your business afloat when the going gets tough. It will prevent you from incurring huge losses arising out of unforeseen events and potential law suits. There are many insurance products available depending on the nature of your business. These include:

  • Credit Protection Insurance plans are designed to help your surviving business partner to settle your insured debts with the respective financial institutions in the event of your Total and Permanent Disability or death.
  • Engineering Insurance plans provide cover against sudden and accidental damage to plant, goods, machinery, or any other problems which may arise in a building project and contract work.
  • Liability Insurance plans indemnify your business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence arising from their business activities.
  • Marine Insurance plans provide protection against the loss or damage of ships, cargo, port terminals, and any transport such as haulage or container trucks, or other vehicles by which cargo is transferred, acquired, or held between the points of origin and final destination.
  • Motor Commercial plans provide protection against losses incurred as a result of traffic accidents and against third party property damage or injury or death following an accident.

Read our last article on Fire and Special Perils to find out more about other specialised products for your business.

For more information on insurance designed for your business, contact us on 429 5114.

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