Thando is a 27 year old CPUT graduate whose descendants are from the Eastern Cape. She is
Question:
Thando is a 27 year old CPUT graduate whose descendants are from the Eastern Cape.
She is married with one child. She has been working for a textile company for 3 years and now wishes to venture out her own. She would like to start her own business in the textile industry manufacturing clothes for the men, women and children markets. She has managed to save R80,000 during her working life and has a house and a car. Her home is valued at R1,2 million and she has a bond of R700,000 on it.
She has approached several local retailers who have expressed an interest in working with her, as procuring from a local company run by a talented young black South African women would improve their own BBBEE scorecard. She has to start the entity from scratch and estimates that she would need roughly R 3 million to start the business on an appropriate scale to potentially land a contract with one of these retailers. There are several other people just like Thando, with hopes and dreams.
Questions
What legal form of business can Thando consider? Explain in detail.
Discuss the 4 primary statutory documents which every Entrepreneur should have on hand at all times. What is the significance of each?
What other documents are important to a business?
Where can Thando go for funding and what type of funding would you advise her to go for? Discuss at least 3 options.
Expert Answer:
Solution The legal forms of business Thando can consider are stated below 1 Sole Proprietorship It is an unincorporated business with one owner income tax returns for business profit are filed along w... View the full answer
