CAPE TOWN INFORMATION BROCHURE
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1 CAPE TOWN INFORMATION BROCHURE
2 PROGRAMME OVERVIEW The objective of Shanduka Black Umbrellas (SBU) is to address the low levels of sustainable entrepreneurship amongst 100% black owned businesses in South Africa, primarily through business incubation, which includes: The provision of subsidised shared office facilities. The transfer of sound business practices and principles through our training and mentoring programmes. Facilitating access to procurement, finance and networking opportunities for clients. PROGRAMME STRUCTURE There are three key sections of the incubation programme: Selection Pre-Incubation Full-Incubation SELECTION The selection process is as follows: Step 1: Entry Point Client shows an interest in Shanduka Black Umbrellas by way of , portal, website, telephonic queries and expos. Step 2: Enquiring client is then directed to the website via a link. On activation of the link they will be routed to an online application form and questionnaire. Step 3: Results of the questionnaire and application form will be pulled from the system by an administrator. Step 4: The report generated will determine the level of the Business Viability for the incubation process. The client is then invited to attend an orientation session. Step 5: The client will be required to; Complete a checklist and a hard copy application form on Shanduka Black Umbrellas premises. Step 6: Credit and Criminal Checks Credit and Criminal checks will be conducted before the interview stage. Step 7: Client now undergoes a COPAS assessment before or after the interview Stage. Step 8: Interview Incubator Management team to conduct an interview with the client. Step 9: Evaluation by incubator and decision to accept client into Pre-Incubation. Step 10: Successful clients then sign the Pre-incubation agreement and pays the Pre-incubation deposit. 2
3 PRE-INCUBATION After successfully completing the selection process, the applicant joins the 3-month preincubation programme for the viability of the applicant s business and the entrepreneurial qualities of the person(s) behind the business to be assessed. During this phase the applicant attends a range of outsourced business plan workshops to research, prepare and ultimately present a feasible and achievable business plan that will form the basis of their development during full incubation. The applicant also has limited access to the incubator facilities to conduct research for their business plan and to attend SARS and Companies Act workshops on the respective requirements applicable to small businesses. The Enterprise Development Manager is also on hand to provide assistance in the above areas. At the end of the 3-month period, the applicant s business is assessed by a selection panel to determine their suitability for full incubation. FULL INCUBATION: OVERVIEW Upon graduation from the pre-incubation programme, the client joins the full-incubation programme and can choose between resident incubation and virtual incubation. The resident incubation programme includes the use of all incubation facilities, including a dedicated workstation / cubicle / lock up office. The virtual incubation programme caters for those members who already have their own business premises, but require assistance with the development of their business and access to procurement, finance and networking opportunities. The client is assessed at the end of each phase of the programme to determine their readiness to progress to the next phase. The following are mandatory requirements for participation in the resident or virtual full incubation programme: Cooperation with the Enterprise Development Manager in the development activities required for the business; Participation in the mentoring programme; Submission of financial records to the incubator bookkeeper by the 5th of each month or, if the client has their own bookkeeper, submission of management accounts of acceptable quality by the 20th of the month. FULL INCUBATION: IGNITION PHASE (3 MONTHS) Upon acceptance to either resident or virtual incubation the client will participate in a 3-month high impact boot camp. The intention of this phase is to ensure the business is procurement- and finance-ready and that there are clear measurable and achievable deliverables in terms of their business plan whilst they are in the incubator. 3
4 FULL INCUBATION: INTEGRATION (12 MONTHS) AND GRADUATION FEEDER (9 MONTHS) PHASES After the successful completion of the Ignition phase, clients should now be ready to access procurement and finance opportunities within the market and develop their business according to their business plan. There will be on-going activities to assist in the development and growth of the business. FULL INCUBATION: GRADUATION PHASE (12 MONTHS) The focus now is largely around preparation of the client for graduation from the incubator with focus on the following areas: A reality check of what infrastructure is required to operate the business on a stand-alone basis. Assistance to the graduating client to secure funding arrangements with finance service providers once they have graduated to ensure they have funding lines available to them for expansion and growth. Graduation ceremonies and awards functions are held to acknowledge and celebrate the clients who have graduated during the year. A national awards function is held annually to determine the winners in various categories of business performance. POST GRADUATION SUPPORT Support services on offer to successful graduates from the programme: Bookkeeping services based on standard rates Access to networking and marketing events On-going mentoring (subject to agreement with mentor) Assistance in accessing finance Workshops on business and personal development 4
5 SERVICE/FACILITY PROVIDED PRE-INCUBATION RESIDENT INCUBATION VIRTUAL INCUBATION Individual workstation in cluster desk environment - max 32 hours/month on pre-booking basis R1, 875 / month (only available in first year full incubation) Furnished cubicle accommodating 3 people per business R3,950 / month Furnished lock up office accommodating 4 people per business R6,150 / month Computers & business tools Internet access Limit of 1G / month Limit of 3G / month Telephone / fax, Pre-paid only, free combined usage of phone and vehicles up to set limits. Thereafter pre-paid only. Usage charged at Telkom rates. Copy / Print. Limit of 250 copies per month included in fee, capped. Reception service Driver & vehicle, free combined usage of phone and vehicles up to set limits. Thereafter pre-paid only. Usage charged per km. Bookkeeping - monthly, at a fee, included in fee, at a fee Annual Financial Statements, included in fee, at a subsidised fee Access to ED Manager 2 hours / month Access to Mentor, min 1 hour / month, min 1 hour / month Savings subsidy, only in 3rd year Board & Meeting rooms, subject to availability Access to Networking Access to Procurement Access to Finance Tea / coffee / canteen Programme cost R1,950 / 3 months Varying according to accomodation selected R800 / month Training workshops Only Business plan, SARS (Small business taxation) & Companies Act) 5
6 FREQUENTLY ASKED QUESTIONS 1. How long is the incubation programme? The programme is for a maximum duration of 39 months, which includes the 3-month pre-incubation period. 2. Do I have to attend the entire training programme? Members are required to attend the compulsory core training programmes: Business Plan, SARS, Companies Act, Record Keeping & Mentee workshops. Specific needs work shops are not compulsory but members are strongly encouraged to attend. 3. Am I required to be physically present at the incubator for a certain amount of time each month? Dependant on the membership package selected, and provided all programme requirements have been met, members are free to be at the incubator when suitable for them. 4. Can Shanduka Black Umbrellas provide me with financing for my business? t directly, but upon successful completion of the Ignition phase of the full incubation programme, the business would be finance ready and proposed to our financing partners for appropriate funding. 5. If my business has more than one owner, do they all need to attend the training workshops?, but all members are encouraged to participate in the training workshops as members of the business may change in future. 6. What happens if a resident client exceeds their telephone / vehicle / bandwidth usage? These services are suspended until the member makes a deposit covering their anticipated usage of these services for the rest of the month. 7. If the monthly telephone / vehicle / bandwidth usage is not fully utilised does it carry over to the following month?, unused amounts are not carried over. 6
7 FREQUENTLY ASKED QUESTIONS 8. May a pre-incubation client utilise the incubator as a base from which to operate their business?, facilities provided during the pre-incubation programme are done so for the exclusive purpose of researching and compiling the Pre-incubation clients Business Plan. Workstation and computer usage is limited to 32 hours per month and must be booked 24 hours in advance. 9. What constitutes a successful graduate from the business incubation programme? The business has met all milestones of the individual phases of the programme; The business employs at least 4 full-time employees; The business has a positive net asset value; The business has a positive growth in turnover; The business is paying the owner and employees a market-related monthly salary. 10. Can a member arrange more than one hour per month with their mentor?, if the assigned mentor is in agreement with this arrangement. 11. What happens if a member does not submit their monthly financial documents, meet with their mentor or attend the necessary training workshops on time? Repeated default in this regard by the member may result in the member being asked to leave the programme. 7
8 CAPE TOWN: Ground Floor Upper East Side Unit 9B 31 Brickfield Road Woodstock 7925 REGIONAL MANAGER: Jerome Eckles Tel:
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