Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Inspiration & Ideas > What Type of Business Should I Start?
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 28th June 2006, 05:33 AM   #1
Humphrey
Member
 

Join Date: Jun 2006
Posts: 3
Default What to do....

Hello everyone,

I want to start a business but I don't know to do.

Iam an accountant by profession though i am currently in employment
where i have been misplaced hence I haven't had much if any career development.

I now want to go it alone since my first contract is coming to an end
in August 2006. And in any case I could still have gone in business had my career developed.

In my part of the world, Zambia, Africa trading(basically importing and reselling) is the in-thing because our economy is so volatile.Service industries are not so much on the small enterprise side,they require huge capital investment,which is close to impossible to get even with the best worldclass business plan.

I will be getting my small gratuity of about $6,000 in about one to two months time after expiry of my first contract.I need some assistance.

Humphrey is offline   Reply With Quote
Register or log in to remove this ad.
Old 28th June 2006, 08:49 AM   #2
KeyProgress
Member
 

Join Date: Jun 2006
Posts: 1
Default

Do you have funds & time to invest now or are you tied up until August?

KeyProgress is offline   Reply With Quote
Old 28th June 2006, 09:57 AM   #3
Humphrey
Member
 

Join Date: Jun 2006
Posts: 3
Default what to do....

Quote:
Originally Posted by KeyProgress
Do you have funds & time to invest now or are you tied up until August?
I am able to borrow from the bank now through my employer but at very high

rates.

Humphrey is offline   Reply With Quote
Old 28th June 2006, 01:46 PM   #4
Maverick
VIP Contributor
 
Maverick's Avatar
 

Join Date: Jan 2006
Location: Las Vegas, NV - Nashville, TN
Posts: 107
Default Maverick says...

I'm not clear on the type of business you desire to start. Is it accounting or do you plan to crossover into marketing, export or importing?

My information here is too long for a single posting, so I am posting it in two (2) Parts.

PART 1

Please do not take the following information as an attempt to be negative or discouraging. As an international business consultant and troubleshooter, I'm hired to overcome the obstacles facing new and established corporations. I am NOT making judgments about your country. I acknowledge the are MANY fine people living there and I am not making judgments here, but posing suggestions and food for thought. No more, no less!

According to the World Bank, African nations make it harder for entrepreneurs to succeed than other parts of the world. It appears it is very difficult in Zambia to do business because the government has not put in place many incentives to promote small entrepreneurs, such as business loans.

An interesting case history of someone trying to setup a new business in Zambia: http://asp.african-institute.org/articles.asp?Indeks=33

ministry of patents
There are 6 different papers to start with. You choose which kind of business you want to setup. If you wanted to start a charity firm you would have to pay 80 thousand kwacha. And the prices went up to 500,000 kwacha. There were also other attributes if you are interested in investing in Zambia as a citizen. These were; foreign exchange controls, capital gains tax, limits on ownership, property transfer tax on local shares, the company would be taxed at 60%, no T+3 Settlement, and many other scripted physical certificates would be needed.

Believe it or not!

It seems Zambians are punished if they want to invest or start business in their own country. The forms MUST be typed, not hand written. You would be in a better position if you invested into Zambia as an outsider. Because there are: No foreign exchange controls, no capital gains tax, no limits on foreign ownership, no property transfer tax on local shares, listed companies were taxed at 30%, T+3 Settlement, immobilization of Script-no physical certificates, and a foreign passport. Some people get citizenship with another country THEN start a business in Zambia. Then there are the MANY stories of governmental bribes. Even the president has a special project to attempt to reduce government corruption.

You will also notice something else; the demand for invoices and tax papers for every little thing the local people sold and bought. How can a government that does not create employment for the people demand the hard earned cash from the poor people? Why aren’t there rules that say, you must not pay tax until your business looks promising enough to start paying tax, or until you have begun earning a certain amount of money?

IMPORTANT CONTACT:
Zambia Revenue Authority has offices in all provincial capitals and most districts in the country - http://www.zra.org.zm/dtax/business_starter.htm

As soon as you start a business, you must inform your Local Tax Office. The Zambia Revenue Authority has offices in all provincial capitals and most districts in the country. If you have given up your previous employment, you should send your Local Tax Office Form P13 given to you by your last employer when you left.

You will have to keep full and accurate records and proper accounts from the start. It is a good idea to have a separate bank account for your business and your Bank Manager will advise you about this. If you wish to trade under a name other than your own, you may need to get advice about this from an Accountant or Lawyer.

Normally, Partners are jointly liable for all partnership debts. So if one of you fails to pay a share of any liability incurred by the business, including a tax debt, the creditors can look to the other partners to meet it.

A Partnership is not recognized for tax purposes as a separate legal entity. Instead, the Partners are taxed on the shares of their profits or income from the partnership. Each partner will therefore be required to submit a return of his/her own, each charge years.

Limited Liability Company:

Consider talking to an Accountant or Lawyer, first if you want to set up a Company. For tax purposes, the Company is a separate legal entity and it is taxed on the profits and any other income earned from the business.

Where YOU can go for more advice?

You do not have to use an accountant, but it is advisable to have someone to guide you on financial matters generally. An Accountant can also draw up your accounts and assist you to claim the relief you are entitled to. The tax Office will normally write to your accountant, if you have one, but we will send you directly the annual tax return forms and notices of assessment to tax.

What about PAYE for employees?

If you employ someone in your business, you may have to deduct tax from his/her earnings. If you are thinking of taking someone on, talk to your Inspector of Taxes, he will answer some of your questions about PAYE (Pay As You Earn)

What is an accounting date?

An accounting date is the date on which you decide to make up your accounts. If you have an Accountant, ask him for advice. Many people make up their accounts to the end of the first year’s trading and then on the anniversary of that date. Some prefer to make up their accounts for the calendar year ending 31st December or to the end of the tax year on 31st March, which is the same as the Income Tax Charge Year.

When you have chosen a date, it is advisable to stick to it and to make accounts every twelve months. If you choose an accounting date other than 31st March, you have to write to the Commissioner - Direct Taxes for approval.

Your Accountant, if you have one, will draw up your accounts. But whoever prepares them, you are still responsible for their accuracy and for correctly declaring the amounts of the profits. The Tax Office will need to be satisfied that the accounts you have supplied show the true results of the business that you are running.

Accounts presented to the Tax Office are usually in two parts:

The Profit and Loss account, which is a summary of the year’s trading transactions

The Balance Sheet which shows the “assets” and liabilities of the business.

You must keep full and accurate records from the start. You need to do this whether you draw up the accounts yourself, or have an Accountant to do it. It is important for you to remember that figures which are contained in your accounts or your tax returns, must be correct. It is a serious offence to understate your profits deliberately. If your records are not good enough to produce proper accounts, your tax might then be based on an estimate of your business activity and the tax could be higher than need be. So it is in your own interest to keep full and accurate records.

How are taxable profits arrived at?

It is not possible to summarize here all the rules for arriving at your profits for tax purposes, but it may help you to know the following:

You cannot deduct capital expenditure in working out your taxable profits.

Examples of Capital Expenditure include:

Cost of plant, machinery or vehicles;

And Purchase of business premises.

But some relief for this type of expenditure may be available through the capital allowances system.

You can normally deduct revenue expenditure which is incurred wholly and exclusively for the purposes of your business.

If you incur any expenditure partly for business purposes and partly for private purposes, you can only claim for the business part.

Your Tax Office can give you advice on these matters.

When are profits taxed?

The Income Tax year ends on 31st March, so the Income Tax Year beginning on 1st April, 2000 and ending on 31st March 2001 is called 2000/2001. And your assessment relates to a tax year. In general, your assessment for one tax year is based on your profits from trade in the 12 month period which ended in the previous tax year.

For example, if your accounts are regularly made up to 31st March, then the accounts for the year ended 31st March 2001, a date which falls in the tax year 2000/2001, will be used to work out your tax bill which you receive for the tax year 2000/2001.

When you submit the Return

You are required by law to make a true return of income by 30th September each year. Your income includes your business profits. You should send in your return together with your business accounts. If you do not do this - or your Tax Office is not satisfied that your accounts correctly show your business profits - an estimate of your profits will be made.

What happens if you disagree with the tax assessments?

If you disagree with any part of your assessment, you should object against it. You have 30 days from the date the notice of assessment was issued in which to do so.

Most objections or other disputed matters can be settled after discussion, between your self and our Tax Office. If you cannot agree, then the issue under dispute will be considered by the Revenue Appeals Tribunal. This is a Tribunal which settles disputes between Taxpayers and the Zambia Revenue Authority.

CONTINUED IN part 2 - See Below

__________________
FREE "Maverick Tips" Newsletter presenting "Insider Tricks of the Trade," by International Business Consultant "Maverick" aka Bob Dean Stanford http://maverickentrepreneur.com
Maverick is offline   Reply With Quote
Old 28th June 2006, 01:47 PM   #5
Maverick
VIP Contributor
 
Maverick's Avatar
 

Join Date: Jan 2006
Location: Las Vegas, NV - Nashville, TN
Posts: 107
Default Maverick says PART 2...

PART 2 (Zambia Post)

I suggest contacting the "Bank of Zambia: and ask their requirements for setting up a business checking type account:

HEAD OFFICE
REGIONAL OFFICE
PRINT
Bank of Zambia
Bank Square
Cairo Road
P.O. Box 30080,
LUSAKA 10101

Telephone : 228888/ 228903-20
Email: [email protected]
Fax : 221722/ 237070
Telex : ZA 41560

You should be able to establish a good starting point with the information you receive from their New Accounts Manager. I suggest this particular bank because The Bank of Zambia is Zambia's central bank. It is the banker to commercial banks and the Zambia Government. It advises the Government on monetary and financial affairs. Has press releases, Governor's speeches, monetary policy statement, statistics (Mineral Production and Exports, Percentage Changes in the Consumer Price Indices), etc. http://www.boz.zm/

Their legal structure is based on English common law and customary law; judicial review of legislative acts in an ad hoc constitutional council; has not accepted compulsory ICJ (International Constitutional Law) jurisdiction, so this can be a hindrance to a small business person for exporting projects.

They import about $1.934 billion f.o.b. (2005 est.) and
Export about $1.947 billion f.o.b. (2005 est.), so they are active in this business arena in a small country with a population of about 11 1/2 million.

Industrial and Labour Relations Act - Zambia
http://www.ilo.org/public/english/em...ambia/ilra.htm

Export Board of Zambia
http://www.zamnet.zm/zamnet/zambus/ebz/ebz.htm

TRADE REGULATIONS
http://www.zamnet.zm/zamnet/zambus/ebz/trade.htm

A New Program that might interest you
5 master trainers for this project:
http://www.ilosiyb.co.zw/masterdisplayc.cfm?pais=Zambia

Start and Improve Your Business (SIYB) – is a program that has been developed by the ILO as a tool with which to meet management needs of SMEs. To build the capacity of entrepreneurs, the program has designed do-it-yourself training packages that match their different levels of competency. The Start Your Business kit is aimed at people with concrete business ideas who want to start their own business whereas the Generate Your Own Business Plan (GYBI) is intended for people without a business plan who would like to star t a business.

The Improve Your Business (IYB) (http://www.ilosiyb.co.zw/) modules introduce already practicing entrepreneurs to good principles of business management, i.e. marketing, costing, stock control, record keeping, buying and business planning. The overall SIYB program has been successfully implemented in Malawi, Mozambique, Tanzania, Uganda, Zambia and Zimbabwe, with a resulting substantial impact on decent work.

Recently a new training package EYB for Expand Your Business was launched. The vision of this program is to assist enterprises that have growth potential to develop strategies to manage their businesses. The enterprises are assisted through training in identified management areas and non-training interventions so as to increase sales, profits and expansion of business operations.

Contact:

Evans Lwanga from Zambia
Evans ([email protected]) is in charge of Monitoring & Evaluation.
http://www.ilosiyb.co.zw/regional_project_office.html

His critical performance areas are:

Developing the Monitoring and Evaluation system and tools for both the SIYB and EYB program Equipping SIYB Trainers and Master Trainers and EYB trainers to use the M & E tools and system Managing and updating the SIYB and EYB databases including the production of periodic and ad hoc reports as required Coordinating the preparation of and conducting impact assessment with local stakeholders for the SIYB and EYB programs
Developing and profiling SIYB and EYB case studies for publication

Information Source
http://www.undp.org.zm/?file=show_news.html&id=3022

__________________
FREE "Maverick Tips" Newsletter presenting "Insider Tricks of the Trade," by International Business Consultant "Maverick" aka Bob Dean Stanford http://maverickentrepreneur.com
Maverick is offline   Reply With Quote
Reply   

Bookmarks




Thread Tools

Get Updates
RSS Feeds:
RSS Feed for What Type of Business Should I Start? RSS for this Category Only: What Type of Business Should I Start?

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Free Links - Free Advertising
Free Guide - Online Directory



Advertise your business here
Contact us for more details!


Semantic Juice
Register now to access free Quick SEO service!


Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!


Buy UPC Codes
Get your products listed online!




All times are GMT -5. The time now is 09:36 PM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy