To start a business
In economics, business is the social science of managing people to organize and maintain collective productivity toward the achievement of particular creative and productive goals, usually to generate income.
The etymology of “business” refers to the state of being busy, both in the context of the individual and in that of the community or society. In other words, to be busy is to be doing profitable and commercially viable work.
Starting and running a business requires motivation and talent. It also requires a lot of research and planning. Although initial mistakes are not always catastrophic, it takes additional expertise, discipline, and hard work to gain an advantage.
Beforehand, there should be enough time allotted to explore and evaluate the business you are interested in doing. This information would be necessary to build a comprehensive and contemplative business plan to help you achieve these goals.
A business plan is a detailed blueprint that envisions the future of a committed business, usually designed to attract capital investment and profit. This is the first tool to be developed with some important issues in mind that you might not otherwise consider. Your plan will become valuable as you set out to raise money for your business and provide you with milestones to measure your success.
There are many important issues that need to be considered when starting a business. First, assess why you want to start a business. Then determine the right and suitable business, contemplating the technical skills that are possessed; specializations; activities involved; time to allocate; and marketability of interests. Next, identify your personal business niche. The final step before developing your plan is the pre-business checklist that covers skills and experience, legal structure to be used, business record keeping, insurance coverage, resources, location, compensation, and financing.
It is also vital to decide what form of business entity to establish. The most common forms of business are (1) sole proprietorship–unincorporated, (2) partnership–two or more persons conducting a trade, (3) corporation–potential shareholders exchange money, property, or both, for the capital stock of the corporation, and (4) S corporation: an eligible domestic corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute.
There are four distinct sections in the body of a business plan. These are the (1) description of the business, (2) marketing, (3) finances, and (4) administration.
The business plan is a tool with three basic purposes: (1) communication: used to attract investment capital, obtain loans, convince workers to hire, and help attract strategic business partners; (2) administration: helps you track, monitor, and evaluate your progress; and (3) planning – guides you through the various phases of your business.
To keep a business alive, proper management must be applied. Adequate funding, knowledge and planning must be ensured. When it comes to marketing, the company must attract and retain a growing base of satisfied customers. It is also vital that proper strategic planning and advertising is applied.
Copyright 2007 Ismael D. Tabije