I would like to cash in on next year’s world cup by selling soccer merchandise close to the stadiums. How do I go about this?

First you have to consider the type of merchandise that you plan to sell, so that you know what laws govern them and where you can ply your trade. Although replica shirts and memorabilia are the main items that sport retailers will be selling, you have to be careful about how you brand your product offering. International brand management and licensing company Global Brands Group (GBG) has been appointed by Fifa as its worldwide exclusive licensing representative and store operator for Fifa-branded retail destinations.
GBG has rights as the on-site concessionaire for all Fifa events throughout an eight-year term so you need to be careful to not encroach on their territory. As the on-site concessionaire for Fifa events, the company could sell merchandise from kiosks around the venues used for Fifa events.
Get a copy of Fifa’s public information sheet to find out the dos and don’ts when it comes to trade. Check Fifa’s website, www.fifa.com, for the latest version to avoid any litigation.
But all is not lost if you cannot sell directly outside stadiums - there are other business opportunities.
Partnering with a range of venues, such as pubs with huge television screens showing matches, and similar football fan gatherings would allow ample scope for you and your business partner to benefit from the 2010 soccer event.
If you are serious about getting close to the action and have a few rands to invest (especially in licensed goods), contact GBG directly for permission to market merchandise for the 2010 Fifa World Cup:
GLOBAL BRANDS GROUP (SOUTH AFRICA) PTY LTD

Edward Lindsay-Bowman
Licensing Sales Manager
T: +27 11 537 4640
M: +27 82 906 9087

Darryl Kroll
Retail Sales & Merchandising Manager
T: +27 11 537 4640
M: +27 79 508 1727

I want to start my own business and was wondering: How can I fund a start-up?
Start-ups are the hardest part of entrepreneurship. Most entrepreneurs opt for financial assistance: bank loans, credit cards, and venture capital or angel investors. To qualify for these you would need to have a solid business plan. Template business plans are available on the Internet and there are many professionals available to help you draft one. The most important part of your business plan would be your projected earnings. The bottom line is that whoever funds you will want a return (interest, or share options) on their investment. If you are want to retain full control of your company, be careful to ensure you negotiate the terms accordingly. Funders will be concerned about their interests – especially if it’s a lot of money – so allow enough room for a controlling stake if needs be, or be sure to provide enough security to put them at ease.
Bear in mind that even after securing start-up capital, the amount may not last long enough to make a decent profit, let alone break-even. Most entrepreneurs fall into the trap of not having a good enough cash-flow to sustain the business.
The safest way to raise funds, depending on how much capital you require, is to start from your pockets and from friends and family— or fund your business from part-time work. But this can be financially demanding, and time-consuming.
Other methods are highly dependent on the type of industry you’re entering. Banks are sometimes willing to match an amount already raised, say on a 1:1 or 80:20 basis. For every R1 raised, the bank will match it with the same amount (1:1) or 80c (80:20). . You could get an investor to “loan” you the money required, and the bank will match it if your business shows all the vital signs of profitability and sustainability.
You can then repay your investor almost immediately, or give them the option of acquiring a stake in the company – and off you go! This is known as a “loan-back” strategy.
There are other options, such as securing retainer contracts. This involves getting your orders initially and then approaching a bank of funding house with a list of invoices for a loan. Once obtained the loan will facilitate the delivery and administration costs involved in delivering on your customers’ orders. You’d have to allow a long enough grace period to ensure you don’t delay on delivery. There are also industry-specific incubator hubs that fund, guide and provide support for start-ups. Incubation is a great way to fast-track the growth of early stage businesses, improving the survival rate of start-up companies. They do this by helping start-ups become financially viable - providing facilities such as office space, technology, networks and other assistance to make the business a success. Look out for companies, the department of trade and industry, and the chamber of commerce, offering grants and special entrepreneurial awards. Get a lawyer and an accountant to help structure a deal if you opt to acquire finance from outside funders.
For more information on funding your start-up check out:
Umsobomvu Youth Fund at www.youthportal.org.za
Khula Enterprise Finance Limited at www.khula.org.za or call their toll free line on 0800 118 815
The Innovation Hub at www.theinnovationhub.com
Statistics South Africa at www.statssa.gov.za
The Department of Trade & Industry at http://www.thedti.gov.za

Why is it so important to have good credit history, especially if I don’t see myself taking any loans in the near future?

Having a good credit record doesn’t just mean being able to get a loan. A good credit rating also allows you to access further credit when you need it, as, at some stage in your life you’ll need to finance a car; rent an apartment; get a mortgage; or set up utility accounts. It can even be helpful in getting a job.
Ideally you would need to own some assets – for banks to use as surety should you renege (fail to meet your repayments) on the loan contract.
But all is not lost if you haven’t established a credit record yet, or if you have a poor credit rating; it won’t mean you can’t perform any of the aforementioned activities — but you will certainly find it more difficult.
So how do you go about it? To build up a good credit record, there are several basic steps you can take, including opening a basic cheque or a savings account. It is a convenient way to pay your bills and is particularly important to potential landlords who expect to receive rent each month.
Although it is highly subjective to your spending habits, it’s good to have a manageable number of retail store accounts (Edgars, Clicks, Woolworths, and similar). Naturally, how you manage these accounts affects your credit rating.
When you feel ready to apply for credit, you can ask a family member or trustworthy and credit-healthy friend to co-sign a loan for you. Making regular payments shows creditors you are a responsible credit consumer. So after six months to a year, you may be able to apply for credit on your own.
Once you’ve established a good credit history, it’s very important you keep it that way. Paying your bills on time is the single most important factor in maintaining good credit.
The worst- case scenario is being listed with the ITC as a slow payer, or being blacklisted! Should that happen, you’ll battle to open even a simple postal account.
To avoid being blacklisted, don’t over-extend your credit; use your store and credit card, if you have one, for emergencies only.
Lastly, practice the simple exercise of watching your debt-to-income ratio. Your debt-to-income ratio is basically your regular monthly bills (excluding rent or mortgage and utilities) divided by your gross monthly income. If your debt-to-income ratio is between 20% and 30%, you need to take a hard look at your finances.

If you already have accounts and are still uncertain about your credit history, visit http://mytransunion.co.za to view your credit report.

I am a BComHons student with financial management as my main subject and I’d like to start working as a consultant next year. What companies could I look at, besides Mckinsey. Are there any consulting companies in Bloemfontein?

Although it’s a popular company, you don’t have to restrict yourself to McKinsey, or any of the bigger management consulting firms. Your field of study is a requirement in many industries.

Consultants are generally people companies hire to provide advice about how to conduct business. There are many kinds of consultants out there; technical consultants give advice on technological issues, financial consultants advise on money and mining consultants advise on how to maximise returns on mining expeditions. But management consulting tends to be the biggest division – so your trade may be sought after in any industry.

Management consultants are typically organised into teams, specifically chosen for a given project. Each team is hired by an external firm to conduct a project, and is constructed internally by the consulting firm. The average team comprises three to six people, depending on the job specifications and the clients’ needs – so your preference for size of company can also serve as an indication of the size of team you’re most likely to be working in.

There are other firms such as www.quantonline.co.za, which deals with advice on derivatives, quantitative analysis and education related to the more technical side of share trading. Grant Thornton (traditionally an accounting firm), now employs advisers to help answer those fundamental questions for a range of organisations around the world.

Deloitte Consulting is one of the fastest growing consulting businesses in the world, with more than 800 globally connected professionals on board – also worth taking a look. But your best bet is to join the Institute of Management Consultants of South Africa.

The Institute is the professional body representing management consultants. It sets and maintains standards for the profession in South Africa, and can put you in contact with all member companies, from which you can learn about the options available to you once you graduate.

But don’t limit your options – unless there’s a really important reason you have to be in Bloemfontein, apply anywhere! The discipline of management and finance advice is subject to economic factors and can thus be practised anywhere in the world – the closer you are to the major markets, the easier you tasks are, due to limitless resources.

Check out: www.quantonline.co.za

www.gt.co.za

www.monitor.com

www.deloitte.com

www.mckinsey.com

www.imcsa.org.za

Q. I keep hearing news about how the stock market in the US keeps rallying and want to know if there’s any way I could get involved in shares?

A. Whether investing locally or abroad, if you are new to stock market investing, choosing shares can be a complicated process. It may be a better idea to seek advice (from a stockbroker) until you know enough to comfortably make your own choices.
If you are a beginner you could invest in either an equity unit trust fund or an exchange traded fund (such as the Satrix40) that tracks an index such as the JSE Top 40 index. They are safer (comprising bundled company shares) and thus minimises the risk of you making a loss. They are also a lot cheaper to invest in — so a sure bet for student investors.

Ideally what you really need is solid, reliable information. If you’re brave and choose to go it alone, you should choose a range of shares across different sectors to diversify your investment and reduce your risk as the tracker funds do. If one share performs badly, your exposure is not so high and other shares’ performance can offset your loss.

For more seasoned investors, getting exposure to offshore has been made easy through the introduction of tracking funds such as GinsGlobal Index Funds or Umbono Fund Managers – who provide access to overseas stocks. Again some careful research into the workings of ownership of overseas shares (tax, charges, brokerage fees etc.) will prevent you from getting any nasty surprises.
Here are some types of shares to know about when choosing the type that suits your risk-profile/investment needs. Once you’ve familiarised yourself with the basics you will find an array of share-investing tools and avenues.
TYPES OF LISTED SHARES
There are different types of shares in the stock market.
• Blue-chip shares: Derive their name from poker in which blue chips have the highest value. Typical blue-chip shares, such as SAB Miller and Tiger Brands, are large, solid companies that are usually among the stock market’s top 40. They tend to have a long history of returning solid profits.
• Empowerment shares: Also called black-chip shares, these can be picked up cheaply when large companies, such as Sasol, do empowerment deals. But be sure you understand the terms and conditions that go with these offers.
• Growth shares: These are shares in companies that have produced consistent above-average revenue and earnings growth, and are expected to continue to produce such results in the medium term.
• Value shares: The share price is usually below the perceived value of the company. This may be because the industry in which the company operates is not performing well or the market has taken a dim view of the prospects for that industry. You would invest in a value share because you expect the price to eventually return to a level that reflects its fair value.
• Income shares: These have a high dividend yield, meaning they pay good dividends. They are usually companies that have a high capacity to generate cash.
• Cyclical shares: Shares in companies, such as Truworths, whose operating and earnings performance is closely linked to the economic cycle.
• Non-cyclical shares: Shares in firms whose performance is largely unaffected by the economic cycle. An example is food producers. Even when the economy is going through a downturn, people will continue to buy food.
• Defensive shares: These are shares in companies that are essentially non-cyclical and can therefore withstand difficult economic conditions.
• Rand hedge shares: Companies (such as Richemont) that largely earn money in foreign currencies are considered rand hedges. They offer protection against rand weakness.
• Penny stocks: The smallest of small-cap shares, they usually have a price of less than R1. These stocks are generally considered to be highly speculative and high-risk because of their lack of liquidity and small capitalization.
Source: Personal Finance & Independent Online.
Once you have narrowed down your selection by deciding on the market sector, company size and type of shares you wish to buy, you have to understand the companies whose shares you’re considering and research their operations to make a more informed decision about investing in shares.
Visit FNB’s education centre at www.fnb.co.za/shareinvesting to learn more about investing on the JSE.

Other useful sites that provide online trading simulations include:

http://courses.standardbank.co.za or https://securities.standardbank.co.za/ost/nsp/help/introduction.asp (Standard Bank)

https://www.absastockbrokers.co.za/ (Absa Bank)

http://www.oldmutual.co.za/personal/online-share-trading.aspx (Old Mutual)

https://nedbankpbtradeonline.nedsecure.co.za/ (Nedbank)

This is a common problem, so take comfort in the fact that you are not alone and others have come through this before you. Knowing this doesn’t make the problem disappear but it reminds you that this issue is surmountable.

First things first – be honest. While you are dependent on your parents for financial and other support, the fact is that their opinion counts and you need to tell them the truth. Your results are a matter of record and any lying will eventually be exposed and land you in even hotter water.

Think about how to soften the blow. Don’t drop it on them while they’re stressed. Maybe approach them on the weekend while you’re relaxing at home.

Be direct and respectful. Open with something like “Mom and Dad, can we have a quick chat about my exam results? I wasn’t as happy with my marks as I would have liked to be…”

Try to explain why you think you did badly, and how you plan on fixing it. If they were your first set of university exams, maybe you struggled because you didn’t know what to expect or you aren’t comfortable with the format yet.

Prepare what you are going to say in advance, otherwise you will stumble over your words and this can lead to saying things based on impulse, rather than a plan. Right now you’re trying to show your parents that you are becoming an adult and can be trusted – bursting into tears and talking in circles is not going to help your case.

Set up a meeting with your lecturer to discuss your paper. Sometimes institutions make you pay for formal exam reviews, but think of it as an investment in your future, or set up a more casual meeting for general exam advice. Try to set these up before you speak to your folks, so you can tell them that you’ve already made moves to rectify the situation.

Lucky for you, you still have several months, many assignments and one more set of exams before your year’s final mark is decided. It’s time to take these seriously. Write down the dates of ALL your assignments so you don’t miss any, and start your exam preparation early. Missing out on a few social nights for the sake of your results is part of student life, and will be worth it in the long run.

Read our feature in next week’s issue (July 31) for tips on matching your study style to your personality.

What is the difference between my carbon footprint and my ecological footprint?

Your carbon footprint measures the net greenhouse gases emitted by an individual, organisation or nation. Because there are various greenhouse gases, these are converted into tons or kilograms of CO2 equivalent. So if you work out your carbon footprint with one of the online calculators available, you’ll discover your net carbon emissions expressed in tons or kilograms.

If you really want to figure out the effect you have on the earth, however, you should calculate your ecological footprint. This is a measure of human demand on earth’s ecosystems – basically, it weighs demand against earth’s ability to regenerate. Basically, it represents the amount of land and sea area needed to regenerate the resources you consume, as well as the land and sea area needed to absorb the waste you produce and render it harmless.

While your carbon footprint is expressed as tons or kilograms of CO2, your ecological is an assessment of how much of the earth it would take if everyone were to live your lifestyle. Each year, the UN calculates the global ecological footprint. The most recent figure (for 2005) put humanity’s ecological footprint at 1,3 planet earths. Essentially, this means we’re living as though we have the resources of 1,3 planet earths to draw on. If everyone lived the lifestyle of Americans, according to the Global Footprint Network, we’d need five planets to support us.

According to UN scenarios, if we assume current population and consumption trends will continue, then we’ll need the equivalent of two earths to support us by 2030.

To calculate your personal ecological footprint, visit www.footprintnetwork.org.