Be tax compliant, budding entrepreneurs urged

Budding entrepreneurs have been advised to comply with the relevant industry laws and regulations as well as meet their tax obligations in a timely and accurate manner because this will ease their business operations.

Margaret Kisitu Nakato, the Co-founder of Afros and Mo, which offers hair care and beauty services, was giving the latest monthly virtual presentation of a Masterclass session, organised by Stanbic Business Incubator Limited (SBIL) on Wednesday. The theme was Resigning from your job to start your business.

“When you join the entrepreneurship world, one of the things that will facilitate your growth is tax compliance. If you evade meeting your tax obligations, it will affect you negatively. Be compliant and if you do not know how to go about it, look out for a mentor to help you,” Nakato said.

SBIL, a subsidiary of Stanbic Uganda Holdings Limited, (SUHL), runs monthly Masterclass sessions to equip entrepreneurs with various skills that can positively impact on their businesses.

Nakato, a former banker who resigned from her job over 10 years ago to venture into entrepreneurship, said most people fear starting up businesses because of uncertainties about the future. Of particular concern is financing the enterprise and meeting operational costs.

She said, “The fear of the unknown has kept very many people away from venturing into business start-ups.  Some people even fear to start because they are afraid they might fail. Failure is part of the learning process and you should embrace it and move on.”

“Whenever I shared my plans with my colleagues, some doubted me. However, when people doubt you, do not get discouraged. Do not let someone else’s fears determine your destiny,” Nakato said.

Before quitting a job to start up a business venture, Nakato advised that one has to be strategic and plan for a transition period of at least two years. At the same time, she told budding entrepreneurs to work at building a clientele base and mastering business skills.

She said, “Most people have days when they go for leave. Use such days to practice what you would like to venture into. Get side hustles to improve your skills. Entrepreneurship is all about selling your idea to other people. You need to master the art of convincing people to buy into your project.”

Ritah Twikirize from SBIL said Masterclass sessions help entrepreneurs to navigate the challenges that hinder business growth. She said life experiences, as shared by Nakato, are timely because these encourage other people to explore their potential business ventures.

Responding to queries from the audience about sustainability, Nakato said people should go into start-ups with a passion and not just be driven by profitability. She also urged them to embrace supportive partnerships, while also upholding good character and financial discipline.

“Your character is very important because that is the first thing your client will buy into. Financial discipline is also key. What makes most people fail is failure to adhere to the principles. People who work with you will always be watching and if you compromise on principles, they will take advantage of the loopholes,” Nakato said.