Starting and running a small business in South Africa can be both exciting and challenging. With the right strategies, you can thrive in a competitive market, but common mistakes can derail even the most promising ventures. To help you navigate the entrepreneurial landscape, here are 10 crucial Do’s and 10 Don’ts for running your small business in South Africa.

The 10 Do’s of Running a Small Business in South Africa

1. Do Register Your Business Properly

Ensure your business is legally registered with the Companies and Intellectual Property Commission (CIPC) and complies with SARS tax requirements. Choose the right business structure (sole proprietorship, Pty Ltd, etc.) for your needs.

2. Do Understand Your Market

Conduct thorough market research to identify your target audience, competitors, and industry trends. Tailor your products or services to meet local demand.

3. Do Keep Accurate Financial and Inventory Records

Maintain clear financial records and use accounting software (like Xero or QuickBooks) to track expenses, invoices, and tax obligations. This helps with cash flow management and SARS compliance.

Furthermore, we at Tosa Pay can set you up with a Point of Sale (POS) solution to help you keep track of your inventory and stock no matter the size of your business. Our POS systems can accommodate big and small businesses thereby ensuring that the small guy pays only what they can afford.

4. Do Leverage Digital Marketing

Invest in a strong online presence—create a website, use social media (Facebook, Instagram, LinkedIn), and explore Google Ads to reach more customers.

5. Do Build a Strong Brand

Develop a unique brand identity, including a professional logo, consistent messaging, and excellent customer service to stand out from competitors.

6. Do Network and Collaborate

Join local business chambers, attend industry events, and form partnerships with other small businesses to expand your reach.

7. Do Plan for Cash Flow Challenges

South Africa’s economy can be unpredictable. Maintain an emergency fund, invoice promptly, and negotiate favorable payment terms with suppliers.

8. Do Comply with Labour Laws

If you hire employees, adhere to the Basic Conditions of Employment Act (BCEA) and Labour Relations Act (LRA) to avoid legal disputes.

9. Do Invest in Customer Service

Happy customers become repeat buyers and refer others. Train your staff to provide excellent service and handle complaints professionally.

10. Do Seek Funding and Support

Explore government grants, SME loans, and incubator programs like the Small Enterprise Development Agency (SEDA) or National Youth Development Agency (NYDA).

Tosa Pay also provides small business loans to help your business with the necessary cashflow to help you purchase inventory and resources that will help your business thrive. To apply, simply contact us at support@tosapay.com or get a hold of your sales agent to start the process - terms and conditions apply!

The 10 Don’ts of Running a Small Business in South Africa

1. Don’t Mix Personal and Business Finances

Keep separate bank accounts to simplify accounting, tax filing, and financial tracking.

2. Don’t Ignore Tax Deadlines

Late submissions to SARS can result in penalties. File VAT, PAYE, and income tax returns on time.

3. Don’t Underprice Your Products/Services

Setting prices too low can hurt profitability. Research competitors and factor in all costs before pricing.

4. Don’t Neglect Contracts and Agreements

Always use written contracts with clients, suppliers, and employees to avoid misunderstandings and legal issues.

5. Don’t Rely on a Single Revenue Stream

Diversify your income sources to protect against market fluctuations.

6. Don’t Overlook Cybersecurity

Protect your business from fraud and data breaches by using secure payment systems and strong passwords.

7. Don’t Hire Too Quickly

Avoid rushing into hiring—ensure you have the budget and need for full-time staff. Consider outsourcing or part-time workers first.

8. Don’t Ignore Customer Feedback

Negative reviews or complaints can damage your reputation. Address feedback promptly and improve where necessary.

9. Don’t Skip Business Insurance

Protect your assets with insurance (liability, theft, fire) to mitigate risks.

10. Don’t Give Up Too Soon

Entrepreneurship is tough—stay persistent, adapt to challenges, and seek mentorship when needed.

Final Thoughts

Running a small business in South Africa requires strategic planning, financial discipline, and adaptability. By following these Do’s and Don’ts, you can avoid common pitfalls and position your business for long-term success. 

So to the budding and startup entrepreneur, we say: Stay informed, stay compliant, and keep innovating!

Image by DC Studio on Freepik.