Limitless Business Challenge 2013 HANDBOOK

Presented by:

The Living Word International

Leading Leaders

Table of Contents

1. 2. 3. 4. 6. 7. 8. 8. 9. 10. 11.

Introduction .................................................................................................................... 3 What is the Limitless Business Challenge? ............................................................. 4 Business Idea and Business Plan ............................................................................... 5 Start-up Capital ............................................................................................................... 6 How to keep record of your financial status........................................................... 7 Groups and group formation ...................................................................................... 9 Team efficiency and meetings .................................................................................. 11 Business Launch .......................................................................................................... 13 Evaluation Criteria ...................................................................................................... 13 Timeline and Deadlines............................................................................................. 14 Business Committee ................................................................................................... 15

1. Introduction

Welcome to the Limitless Business Challenge 2013. The Living Word International has revived the Business Challenge that was introduced years back in the ministry. The Business Challenge focuses on developing core competencies and skills in the areas of leadership, management and entrepreneurship. These skills will prove invaluable to you as you enter the commercial world as an entrepreneur. The Business Challenge will provide you with hands on experience in the daily running of your own successful business. To maximize learning, we will be using the learning by doing approach which has incredible challenges and may at times be daunting but at the end of the challenge your level of personal growth and development will be staggering. The duration of the Business Challenge is eight months starting from 1 May 2013 to 31 December 2013 You will be required to master vital interpersonal skills such as vision-building, strategy, communication, negotiation and conflict resolution skills. You will also be responsible for coming up with a unique business idea that has the ability to generate profits through the right marketing channels. You will succeed ONLY through commitment and hard work. The Business Challenge will put you under enormous time pressures so use your time wisely. So the opportunity is truly yours. Make sure you grab it with both hands!

2. What is the Limitless Business Challenge?

Vision
We want to equip young people with the skills and knowledge required to enable them to have a business mindset in a safe environment that promotes learning, self-leadership, creativity, proactiveness and introduce them to the exciting world of entrepreneurship and business management. The exercise will create future business leaders who will play a vital role in the economic development of South Africa.

Goals and Objectives

We want to focus on the development of core competencies and skills in the areas of leadership, management and entrepreneurship To create a pro-active, resilient and go-getter mindset amongst young people To support community initiatives through the Business Challenge We desire to see profitable companies established from the Business Challenge We want to use the profits generated from the Business Challenge to educate young people who have a desire and competency to enter higher learning institutions depending on their career goals and objectives For the Business Challenge to be an opportunity to reach out to unemployed young people and the uneducated in the community to equip them with the knowledge and skills to be self-employed.

3. Business Idea and Business Plan

The Business Challenge will give one an opportunity to come up with a business idea that is believed to be sustainable. Thinking out of the box, originality, authenticity and creativity will be essential in the exercise. One needs to choose a business idea that will set you apart from all the other teams. A business idea that is realistic and will not require a lot of start-up capital is considered a smart business idea. Each company is not limited to one business idea during the course of the year as long as you can provide a business plan for any new idea. A window period will be open for other business ideas to be introduced. The group may choose where they want to operate their business from eg. Garage, car, website, social networking site, there are no restrictions whatsoever though every business activity will be monitored closely by the business committee members to ensure that there is fairness.

Business Plan Components

A business plan is an important document that will be required for submission once the business idea has been approved by the Business committee members. A business plan is an outline of your business activities. It must be a comprehensive document which companies will make financial projections and outline their various strategies for making maximum use of the rest of the year.

The business plan should include the following:

1. Vision and Mission statement 2. Clear business definition/ Product description 3. Market research and marketing strategy 4. Sales strategy 5. Financials 6. SWOT Analysis

4. Start-up Capital
This is the most exciting start to the Business Challenge. The groups will be required to raise their own start-up capital by engaging in various fund raising initiatives. However groups who do not have sufficient time to do so can look into another alternative such as lending money from the church with minimum interest charged. Please note the church will not be held accountable for any other debt that is incurred by the companies. During start-up phase, the business needs funds for once-off start-up costs as well as six months working capital. Ensure you plan for things to cost more than you think and include this budget in your business plan.

Calculating start-up costs

If you are not sure what your expenses will be, investigation as part of your due diligence will be necessary. Conduct a research on similar businesses in the industry and aim to uncover any general expenses that need to be considered

Typically start-up costs include the following:

1. Expenses before the starting date such as market research, registration fees, office stationery, printing costs (business cards and letterheads), creation of a website. 2. Start-up inventory (if your business is a product based business). 3. Cash reserve to support the company during the early months before sales reach breakeven levels. 4. Current assets (signage) and long-term assets (laptop, printers, equipment). You will be given a total of four weeks to raise capital for your business. Any form of fundraising for your business will be permitted therefore be creative and get as much capital as you can. Remember to avoid getting into contracts with other businesses that will create debt for the company, for example: Cell-phone contracts. Pay as you go is the way to go! J

6. How to keep record of your financial status

1. FINANCE- INCLUDING PROJECTED CASHFLOW The company must submit a projected cash flow along with the business plan at the end of May. The financial statements should include the funds accumulated from the fundraising as well as an 8 month projected cash flow for the period of the challenge (attached to the business plan). The business challenge financial cycle is monthly therefore the company is required to submit the following at the beginning of every month: o Financial statements with a copy of the reconciled bank statement at the end of each submission month. o o A budgeted versus actual analysis for the submitted month A management report analysis (including budget for following month)

The financials are due by the 4th of every month starting in June. The company will have 2 audits during the period of the challenge. The 1st will be an interim audit for the 1st 4 months of the challenge, which is more of a review and is analytical. The 2nd will be a final audit at the end of the 8 months, which is a full audit of the financial statements for the challenge.

2. LAWS AND REGULATIONS A memorandum of incorporation (MOI) must be submitted which serves as the company information book, whatever is set in the MOI is binding to the members. Amendments to the MOI must be submitted to the business committee within 15 days of its intended effectiveness. All companies are regarded as private companies and therefore must adhere to the basic requirements of the companies act and other abiding regulations. A workshop will be done briefing on the basic requirements but it is the companies responsibility to ensure it does not break the significant and relevant rules of the regulations applicable. A summarized copy of the companies act will be made available for the teams to refer to for clarity. The company must abide to the tax requirements of the country, the basic requirements will be discussed at the workshop however it must be remembered that the following must always apply

o o

Tax is at 10% of taxable income, which will be recognized in the tax control account VAT at 14% (for both input and output) which will be recognized in the VAT control account

The above taxes will not have to be paid out however will need to be recognized in the financial statements in the relevant control account as a liability.

3. SOCIAL RESPONSIBILITY ACTIVITIES The company must take part (not just financing but physical participation) in social responsibility activities, a minimum of 4 charity involvements and at least 1 in 2 months. The company will also be required to play their role in the churchs Samaritan project {e.g. participate and contribute (fundraising/donating) to the events}. This involvement in the Samaritan project will not be included in the calculation of the minimum number of social responsibility participation required for each company.

7. Groups and group formation

Your company members will be instrumental in your personal success this year so pick your members wisely. Your Business Challenge Group must reflect the church demographics. In other words, you must form groups within the following parameters. Group size: Group sizes must be between 8 and 10 young people. Exceptions will be made where there is a need for more group members. Group ratio (female to males): There should be at least two males in your group Group ratio (ages): There should be a variation in ages in your groups. Young people from the age of 16 to 35 should be represented in the group evenly. Group ration (area): The group members should be from one area.

Each group must decide on a name for their company which is what they will be referred to once the business challenge has commenced. They should also have a business address, cell number and email address where they can be contacted. The address can be of anyone of the group (company) members or their place of business.

Entry and exiting of a group member within the company

Group members are only allowed one opportunity to exit their company and join another company upon a valid reason The group member can only join a company that is within their area. A company should only allow entering and exiting of one group member during a window period (which will be communicated) The group demographics should not change during the duration of the Business Challenge therefore bare that in mind when members join or exit the group. The group member who wishes to not take part in the Business Challenge anymore should notify their group and the committee members in a form of a resignation letter. The member has to serve a 30 day notice once the decision has been approved. However that member will not be permitted to re-join the group

Group members exiting a company and joining another company should sign a confidentially agreement with current group.

The group can choose to fire a group member if they do not abide by the rules in the group contract after two written warnings have been issued and the matter has been taken to the committee members.

If the group wished to employ a new member then majority of the group members (70%) should be in agreement with the decision. The new member should submit their CV and approval should not take longer than seven days.

PLEASE NOTE: Companies should consult the HR Office from the committee regarding the entry and exiting of a group member to ensure that the correct procedure is followed and that everyone is in agreement.

The following departments (not limited to below) should be functioning in your company:
Administration Finance and Accounting Sales and Marketing Human Resource Information Technology Operations Communication Research and Development

Company Blog
Each company will be required to keep a Blog. The Blog will serve as a method of action learning which rests on two distinct activities- doing and reflecting. The Blog will prove to be a great source of insight as the year progresses. Each group is required to submit a blog monthly to the Business Committee as a reflection of what has been going on within the company. The blog will also help the group members deal with issues within the group that they are unaware of. Each group member should have an entry once a week. One person in the company should be responsible for the collection of blog entries and submissions monthly. They can be handwritten, typed, online or sent via email.

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8. Team efficiency and meetings

1. Memorandum of incorporation (MOI) This document should contain your companys purpose story. The fundamental reason why your company exists and what it wants to achieve. Without a sense of purpose, your company will lose focus and begin to drift. The MOI will also serve to assist you in moments of conflict that will most likely arise in your companies during the course of the year. In developing this MOI be sure to identify real mechanisms that can deal with lateness, selfish behavior, conflict and lack of individual performance. The MOI needs to be signed by all the group members. 2. Company Meetings Each company must hold an internal staff meeting to discuss issues relating to the day to day running of the business at least once a week. Communication is very important and you are encouraged to utilize other communication platforms. Meeting minutes should be recorded at every meeting that is held by the company as a form of reference. The Business Committee can request meeting minutes as prove that meetings have been taking place weekly. 3. Business Committee Meetings One is free to meet with the business committee members to discuss any issues that need urgent attention. They are also there to assist in areas that you need advice on such as Finance, Marketing, Human Relations and Administration. Each company will have a specific committee member who will be their mentor (to check up on them) and the company can communicate with regarding general matters. The committee will also inform you of any meetings, outings and business Expos that you need to attend. It is a basic requirement that at least two members be representatives at any of the expos or events announce, a higher number may be required on certain occasions and will be clearly specified. 4. Directors Board Meetings In order to create an authentic business experience, each company will report to a group of Directors every two months. You will receive a list of your directors in due course. Each board meeting should take no more than an hour. You will share a board with other companies but each company will meet separately with their board. Suitable times and dates of monthly meetings will be

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scheduled by the business committee. All board meetings are regarded as formal therefore members must be professional and presentable.

Director will fulfill two functions:

5. Mentorship The directors are there to discuss any problems, provide planning input, direction, guidance and advice however they are not there to tell you how to run your company nor spoon feed you. You are not allowed to contact your directors outside board meetings unless they have given you their permission. 6. Evaluation At the end of each meeting, directly after the board meeting, directors will evaluate each of their companies.

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8. Business Launch
Each company will be required to launch their business in June during the Youth Week at The Living Word International Church depending on the nature of your business. This will be a fantastic marketing and sales opportunity where companies get to showcase their products and services. The set-up of the launch of each company will be up to the group members. Arrangements need to be made two weeks in advance with the business committee members. The companies are welcome to collaborate with other companies to make their launch a success. It is also your responsibility to invite guests, potential sponsors and the community newspaper to your launch. Ensure that marketing drives are creatively executed to ensure that your launch is a success. Companies are welcome to trade on the day of the launch. Please note: The Business Committee will make available I.T services that will create business cards, brochures and business profiles for your company at competitive prices otherwise you are welcome to make use of alternatives. The church office will not be available for printing and photocopying.

9. Evaluation Criteria
The following items will be evaluated: 1. Business Idea 2. Business Plan 3. Start-up capital 4. Business Launch 5. Board of Directors Meetings 6. Financial statements 7. Team efficiency 8. Community involvement 9. Audits 10. Final profits Please note: An evaluation criteria will be sent to your group a few days before submission of the above.

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10.

Timeline and Deadlines

DATE 27 April 2013 1 May 2013 26 May 2013 2 June 2013 15-21 June 2013 2 July 2012 5-6 July 2013 2 August 2013 2 September 2013 6-7 September 2013 2 October 2013 2 November 2013 8-9 November 2013 2 December 2013 17-18 January 2014 2 January 2014 February/ March TIME 3pm 9am 2pm After Sunday Service 1pm TBC TBC Close of business TBC Close of business Close of business TBC Close of business Close of business TBC Close of business TBC Close of business TBC

NAME OF BUSINESS CHALLENGE EVENT Business Challenge Launch Business Workshop Business Plan & MOI Business Commences Business Launch Financial Report 1 Board Meeting 1 Financial Report 2 Financial Report 3 Board Meeting 2 Financial Report 4 Financial Report 5 Board Meeting 3 Financial Report 6 Final Board Meeting Close of Business Report Gala Dinner

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11.

Business Committee

The Business Committee has been selected to ensure that The Business Challenge runs smoothly over the eight months. They are available for any kind of assistance as well as guidance in their key areas. Each business committee member is responsible for mentoring one or two companies throughout the duration of the Business Challenge to ensure sufficient support is available for the participating teams.

Business Challenge Committee

Name Makgotso Keke Maruping Surname Motau Designation Marketing & Events Contact No 0733055484 0711919480 0782556313 0736430172 0797313253 0717683868 preshmnisi@gmail.com e-mail address Fiona_motau@yahoo.com Portiamanyapelo17@gmail.com maruping001@gmail.com Innocentia_Kunene@yahoo.com

Monyapelo Human Resources Mothapo Finance & Accounting Governance & Admin Operations Information Technology

Nonhlanhla Kunene Bongani Precious Hlongwani Mnisi

All communication and submissions can be done via email unless otherwise stated to: teamapprentice321@gmail.com

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