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Businesses You Can Start: Greengrocer
Businesses You Can Start: Greengrocer
1. Introduction
This guide explains the basics of starting up a greengrocer shop in South Africa. It describes what kind of person is suited to the business and what training is available. It also tells you who your customers and competitors are likely to be, and what issues are affecting the market for fresh produce. It gives you an idea of the kind of costs you will need to meet and the regulations you must comply with, and ends with some sources of further information. Greengrocers run shops or stalls that sell fresh fruit and vegetables. They may also sell other types of produce, like flowers, herbs, eggs, milk, butter, cheese and speciality foods such as olive oil, nuts and seeds, and organic produce. Greengrocers can also offer a delivery service, taking orders over the phone, by email or through their website.
Make the most of new sales opportunities by listening to what your customers want. If a number of customers ask for a particular vegetable or herb, try and get it. Ability to source unusual fresh produce, unavailable in supermarkets, will give your business a unique selling proposition. Preparing fresh cut fruit, fruit platters, vegetable platters and fruit kebabs for customers special events could also help promote your business. List your business in the local business directories such as the Yellow Pages, and try advertising in the local newspaper. Also consider listing yourself in an online directory such as www.yellowpages.co.za, www.businessdirectory.co.za or www.easyinfo.co.za and www.firstier.co.za. Monitor the results. The National Youth Development Agency subsidises business support for youth enterprises owned by previously disadvantaged youth and women. With the Business Consulting Services Voucher programme, you can get technical assistance and managerial support (in business planning, marketing, financial systems, etc) for your business from an expert in your area. See the NYDA website (www.youthportal.org.za) or phone 08600 YOUTH (96884) for more details.
There are a number of technikons around the country offering a range of courses; contact the career guidance centre of the technikon in your area for more information about what they offer. You can also download A Learners Guide to Higher and Distance Education from the National Youth Development Agency website (www.youthportal.org.za) or go to a Youth Advisory Centre in your area for advice. Enrolling for an environmental health courses will be useful as you will have to be aware of personal and environmental hygiene. The HACCP Academy (www.haccpacademy.co.za) offers short courses in occupational hygiene and safety for people in the food business. Colleges like Damelin (www.damelin.co.za) offer a one-year certificate in wholesale and retail credit control, as well as courses in new venture creation and small business financial management on a full-time basis. The National Youth Development Agency offers Entrepreneurship Education for in-school and out-ofschool youth. NYDA also offers you the support of a mentor as you start up and build your business, through its Volunteers-in-Action Mentorship Programme. See the NYDA website (www.youthportal. org.za) or phone 08600YOUTH (96884) for more details.
guide on Starting Your Own Business from the organisations website at www.youthportal.org.za. Paying taxes You need to pay income tax on your earnings as an individual. If you run your business as a sole trader, then all your business earnings will be regarded as your personal earnings and you have to pay tax on that. If your business is registered as a close corporation, company or cooperative, then the business has to pay tax on its profits. You also need to deduct Standard Income Tax on Employees (SITE) and Pay As You Earn (PAYE) from your employees salaries, and pay this to the South African Revenue Services (SARS). Talk to SARS to find out how to register yourself, your employees and your business as tax payers; the national call centre number is 0860 12 12 18 and the website is www.sars.gov.za. If your turnover is more than R1 million per year, you must charge your customers value-added tax (VAT) on your products, and pay this VAT over to SARS regularly. Contact SARS to register as a VAT vendor and to learn how to fill in a VAT return. To explain this process to small businesses, SARS has published a Small Retailers VAT Package. Contact your local SARS office, or visit the website at www.sars.gov.za and click on Forms in the left hand column. Employment regulations If you have anyone working for you, you must register as an employer with the Department of Labour, and make contributions on behalf of your employees for Unemployment Insurance (UIF) and Workmens Compensation. As an employer, you need to comply with the Basic Conditions of Employment Act, which regulates working hours, overtime, leave, deductions, etc. It also says that you must give employees their terms of employment in writing, and can only dismiss them using the correct procedure. If you have more than five employees, you must display a summary of the Act at your business premises. For more information, speak to your local Department of Labour office or visit the departments website at www. labour.gov.za, which has a number of useful guides on these and other topics. Environmental health regulations All businesses that serve food or drink to the public need to comply with laws that ensure your food is safe and your premises are clean. Department of Health regulations (in particular, Number R.494 of 2002) say you must have a Hazard Analysis and Critical Control Point (HACCP) system to ensure that all food is handled and served without risk to customers health. You then need a certificate (valid for one year) from a certifying body before you can start trading. For more detail on this, read the regulation (download this at www.doh.gov.za/docs/regulations/2002/reg494.pdf) and talk to your local municipality about how to comply. You should also be aware of the Foodstuffs, Cosmetics and Disinfectants Act 54 of 1972 (as amended by the Foodstuffs, Cosmetics and Disinfectants Amendment Act 32 of 1981). This law controls the sale, manufacture and importation of foodstuffs, cosmetics and disinfectants. In terms of this Act, which addresses the manufacture, labelling, sale and importation of foodstuffs, the Department of Health requires that all foodstuffs are safe for human consumption. Food labelling regulations According to the South African food labelling regulations, food labels should have the following mandatory information; name and address of manufacturer, instructions for use, net contents, country of origin, batch identification, expiry date and nutrient analysis by calculation. A useful summary of labelling requirements is provided by registered dietician Gabi Steenkamp (www.gabisteenkamp. co.za/foodlabelling.htm). The Food Advisory Consumer Service also has information on labelling (www.foodfacts.org. za/siteindex/labelling).
a machine). Ongoing costs, such as constant supply of fruits and vegetables, packaging and promotional expenses should also be included in your budget. As you expand, you will need to pay more salaries, and perhaps related costs like uniforms. As your business grows you may also need a van with cold storage facilities for transporting supplies and making deliveries. You will also have to consider insurance costs such as employers liability insurance for staff, as well as motor insurance for any delivery vehicles. You must also insure your premises and equipment against fire, theft and damage. The National Youth Development Agency provides micro-loans (R1,000 to R100,000) and SME funding (R100,000 to R5 million) to enterprises owned by previously disadvantaged youth and women. See the NYDA website (www. youthportal.org.za) or phone 08600 YOUTH (96884) for more details.
5. Further information
National Youth Development Agency helps young South Africans (those between the ages of 18 and 35) and women to get good skills, find job opportunities or start their own businesses. It has Youth Advisory Centres around the country where you can go for information and advice. Phone the call centre (youthconnect) at 08600 YOUTH (96884) or visit the website (www.youthportal.org.za) to find an advisory centre near you. Physical Address: NYDA House 11 Broadwalk Avenue (off Church Street) Halfway House Gauteng Postal Address: PO Box 982 Halfway House 1685 Telephone: 08600 YOUTH (96884) Fax: 011 805 9709 Email: [email protected] Website: www.youthportal.org.za The Wholesale and Retail Sector Education and Training Authority (W&RSETA) is responsible for building skills within the wholesale and retail sector. PO Box 9809 Centurion 0046 Call centre: 0860 270 027 Tel: 012 676 9000 Fax: 012 665 2559 Email: [email protected] Website: www.wrseta.org.za The Food and Beverage Manufacturing Industry Sector Education and Training Authority (Foodbev Seta) is the Department of Labours agency to accredit and fund training courses for people in the food and beverage industry. It can advise businesses on appropriate courses in the sector. PO Box 245 Gallo Manor 2052 Tel: 011 253 7300 Fax: 011 253 7333 Email: [email protected] Website: www.foodbev.co.za
The HACCP Academy is an accredited company and is registered with the FoodBev Seta as a service provider. It offers training in amongst others good hygiene practices, occupational hygiene and safety in a food and beverage environment and internal auditors course. PO Box 102 Sanlamhof 7532 Tel: 021 982 3052 Fax: 021 982 3022 Email: [email protected] Website: www.haccpacademy.co.za The Agricultural Research Council offers 1-2 day skills training courses in subjects such as fruit development and preparation. Contact the ARC for information on their current courses. PO Box 8783 Pretoria 0001 Call Centre: 0800 427 000 Tel: 013 753 7000 (Nelspruit) or 021 809 3100 (Stellenbosch ) Email: [email protected] Website: www.arc.agric.za