If you want to start a successful business in South Africa, you must make sure of which business to start. The one thing everyone wants from a business is profitability. Starting a successful business ensures growth and a high revenue.
South Africa is a great place to start a new business. Our country is full of opportunities and untapped markets that are open for entry. With the right business idea and correct and thorough planning, you can start a successful business.
Depending on what skills and talents you have, some of these business ideas might appeal to you. Let’s explore the top 10 most successful businesses to start in South Africa.
Restaurant Business
South African cuisine is some of the best in the world because of the diverse cultures South African restaurants, like The Test Kitchen in Cape Town and The Pot Luck Club in Johannesburg, are elegant yet maintain a local charm.
Before you open your restaurant, you need to have a thorough business plan. Decide on the restaurant’s location, cuisine, decor, name, funding, and competition. Also, make sure to obtain the necessary licenses and permits.
Another thing to consider is the equipment and tools you need for your business. Key tools for restaurants are a POS system, phone system, accounting software, and management software, among others.
Essential equipment includes stoves, chairs, cutlery, glassware, uniforms for staff, and ingredients (stock) amongst other things.
Note: Consider putting your restaurant on e-commerce platforms such as Uber Eats. This will present you with an extra avenue for revenue.
Laundry and Dry-Cleaning Business
Laundry shops are many but that doesn’t mean there is no space in the market for you. There is a demand for laundry businesses. You need to ensure your business stands out from those that are already in operation.
Before you start your laundry business, do a little market research. In most South African cities, people have a laundry facility within the apartment building. You can target areas where laundry businesses are far from people and offer competitive prices.
Another way to make this business profitable is to make delivery and collection available. By offering people this convenience, you can charge people extra for the delivery and collection, making your business even more profitable.
Car Wash Business
There are over 10 million cars in South Africa. And all these cars need to be washed. Most people would rather pay someone to wash the car and that’s what makes car wash businesses so profitable.
To start a car wash business, you need to register with the Companies and Intellectual Property Commission (CIPC). Once registered, you need to secure your location, equipment and staff. Once everything is in order, you can begin washing cars!
A car wash can be very successful because people like the service it provides. Additionally, with the right permits and licences, you can offer other things like food and drinks to customers while they wait.
Note: If you don’t want the hassle of starting your own car wash, you can always invest in a franchise.
Event Planning Business
Event planning is a great business idea because it doesn’t require much capital to start. You need to be detail-oriented, organised and have a great network of people. Event planning is a profitable side hustle. In South Africa, event planners earn around R 12 000 per month. This is a lot of money to make with minimal effort.
Event planners organise anything from children’s birthday parties to weddings and product launches. You will charge your rate depending on the event, event needs and your working hours. Remember, the more successful your business is, the more you can charge your clients and that will mean more money for you.
Uniform Sewing Business
The uniform sewing business is very profitable in South Africa. If you don’t mind working with your hands all the time, this can be a great business for you.
In South Africa, most schools wear uniforms so you can take advantage of that and make a very good profit. There are also businesses that have ‘uniforms’ that need to be made so you can also provide them with your services.
To start a uniform sewing business, you will need to know how to sew and maybe do some embroidery. You will also need a very good sewing machine and other equipment.
Your sewing business will work more efficiently if you hire someone to do the manual labour for you. However, doing it yourself will make you more money and you get to learn or develop an underrated skill in sewing.
Tutoring Business
If you are a recent graduate or just looking to make extra money, tutoring is a great business idea. You don’t need much just your knowledge and be able to pass that knowledge on in an easy manner.
Being a tutor is great because you can do it after work, from the student’s place or virtually. To be successful, you can start your own business by advertising your services on your neighbourhood’s WhatsApp group, putting up posters or joining an existing tutoring platform like Tutor Doctor.
Dropshipping Business
Dropshipping is an e-commerce business. It involves selling physical products through a website but without having to keep the stock or handle the product. A dropshipping business can be successful because it is low-risk and highly profitable.
To start a dropshipping business, you will need to do some market research. Find out which products people want that aren’t available and which products are going to make you a profit.
Some of the most popular e-commerce categories in South Africa include clothing and apparel, appliances, baby toys and kids’ books, cellphones, tablets, electronics, fashion and accessories, office stationery, pets, outdoor, and luggage.
On average, dropshippers in South Africa can potentially earn over $100k per year. If you do thorough market research and get the right products in, this will be a very successful business to start.
Livestock Feed Manufacturing Business
South Africa has a large and vast livestock industry. For all that livestock, there is a high demand for livestock feed. Livestock feed manufacturing can be a very successful business. If you can create a high-quality product and find a location with high demand, you will be successful.
Before you can begin operating, you will need to do things such as market research, research on regulations and laws, find a great location and secure the right infrastructure. Once everything is in place, you can then get your materials and start producing feed.
Shisanyama Business
As we all know, South Africans love a braai. This makes shisanyama businesses profitable. Most shisanyama businesses are run in the townships, which has left a huge gap in the market for a city-based shisanyama.
Because of demand in city areas and tourists, opening a shisanyama business can garner a lot of interest from tourists and those living in the city. You can turn your shisanyama business into more than just a food business. Adding elements such as music, seating and late(r) hours can turn your business from food to lifestyle experience.
House and Pet Sitting
Although not a common business, house and pet sitting is a prominent side hustle or source of income in South Africa. There are platforms such as Trusted Housesitters where you can find people looking for these services.
Much like being an Uber driver, this is a business you can do as a side hustle or even as your main business. It requires little to no startup costs; all you need is to apply and (if accepted) go start.
For house and pet sitting, you can charge between R 250 to R 750 per hour. This is a lot of money coming in considering some people need the services over long periods of time.
These are just some of the businesses you can start in South Africa that can be successful. There are many other options like a Spaza shop, motor spares, car mechanic business or the ever-popular Kota business.
Choose the right business idea for you, draft a business plan, apply for funding (if needed) and start making money today!
For more information on different businesses to start, visit the SME South Africa website. If you need more help, book an appointment with one of our mentors via the advice page.
