First National Bank a division of First Rand

First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 1

Series 1 6 May 2009 The Business Start Up Process Presented by: Ashley Mathura Head: FNB Start Ups First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 2

Are you ready to be an entrepreneur? See an opportunity Would like to satisfy an unmet need Takes a risk Seek reward with profit if the venture succeeds First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 3

What are the elements involved? Take a look at yourself What are the push and pull factors Your economic circumstances First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 4

When is the best time to start a business? Ask yourself Do you have a business idea or interest you would like to pursue Do you consider yourself a leader and self-starter Do you have support for your business from family and friends Are you willing to invest a significant portion of your savings or net worth to get your business started? Are you prepared, if needed, to temporarily lower your standard of living until your business is firmly established? Have you discussed your business idea, business plan or proposed business with a colleague, business coach, banker or successful entrepreneur? First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 5

Where do you start? Identify & evaluate your opportunity Prepare a business action plan for yourself Prepare a business plan for your bank or any potential Investment partner First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 6

Bank Requirements? The amount of the loan required Annual turnover and cash flow projections for up to 3 years Detail on how the funds will be used Details of how much you intend to repay, and over what time frame Details of collateral offered, and a list of all existing loans and bank accounts with the institution Don’t forget to include all your business contact details, your personal information, any trade references and anything that you believe could strengthen your case First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 7

Private Equity or Venture Capitalist Requirements What funds are needed in the short term (two to five years). How the company will use funds and how it will help the business to grow. The estimated return on investment. What the exit strategy is for investors (e. g. , buy-back by the owner, or sale to another party). What percentage of ownership you are prepared to offer. What milestones or conditions you will accept. What sort of financial reporting you will provide. What degree of involvement you expect at board or management level First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 8

Series 2: 13 th May 2009 @ 14 h 30 Join us next week when we continue our start-up process and look at: Formalizing your business Registering your company Understanding the legal framework for business in South Africa. First National Bank – a division of First. Rand Bank Limited. An Authorised Financial Services Provider. 9