How to start a business

Published: 2019-09-09 07:00:00
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Khwaja, A. (2001). Choose Your Business Structure. Entrepreneur. Retrieved 26 April 2016, from https://www.entrepreneur.com/article/38822

Before starting up a business, it is important for one to determine the legal structure that will befit their enterprise. Such a decision impacts heavily on the amount of taxes that will be paid and consequently affects the amount of paperwork that is required to get the business running, the liabilities that one may withstand at a personal level and also their ability to make money. The type of business entity that an individual decides to venture depends on factors such as the record-keeping, liability, and taxation. It may involve sole proprietorship where he or she is in complete control of the business and is personally liable to any incidences that may befall the company. There is also the partnership where two or more people share the profits and also the losses that may be incurred along the way.

Schmid, H. A. (1999). Business entity components and business process components.

For an entrepreneur to reduce the likelihood of being exposed to liabilities or that their companies are efficiently run and financed, they have to ensure that they have the right choice of business entities. It is also a sure way of ensuring that the business owners are provided with a way in which they can ensure the continued operations of their businesses. Making the business formal makes some clarity of the ownership of all the participants who are enjoined in the venture. One of the things to be considered before deciding on a particular business entity includes the extent to which the person assets are likely to be of risk and the ability to attract potential investors.

Cassar, G. (2004). The financing of business start-ups. Journal of business venturing, 19(2), 261-283.

One of the major tasks that an individual should accomplish before starting up a business is to establish a solid financial base. It does not matter what kind of business a person wants to start; one thing is for sure that they need to have an estimation of how much money will be needed. Some of the ways in which the starting capital can be acquired are through fundraisers or even taking loans from banks. The government on its part has made the acquisition of loans much easier by developing initiatives such as those of the traditional bank lending. Before presenting an idea to a bank, it is important for a person first to draw up a budget. The budget should include certain basic requirements such a forecast or the estimation of sales and the total expenditures for each month. It is important to set realistic targets since the projection of the sales may not match up to a persons expectations.

Steps in Starting Your Own Business: The Riley Guide. (1998). Rileyguide.com. Retrieved 26 April 2016, from http://www.rileyguide.com/steps.html

An individual who wants to set up a business should have a reason or an explanation of why they decided on it. Some of the reasons why people startup businesses could be because of fame, the gratification of their egos, their inability to get hired, the discomfort of having to work under supervision or even as a way to seek personal freedom. Some people the possibility of translating expectations and desires into reality by setting for themselves long-term goals. Some of these goals could either be personal, economic or even those directed towards retirement. The short term goals should be realistic and attainable.

Katz, J. A., & Green, R. P. (2009). Entrepreneurial small business. Boston: McGraw-Hill Irwin.

Market evaluation is the most vital elements of a successful business planning. It provides some data that will be key in the determination of whether and where a person can sell their products or services and the amount they will charge. The evaluation process involves a carefully thought scrutiny of the competitors available, the customer base and also the potential suppliers. Such information helps in determining which product to be adopted and to meet the demand of the customers. Small business owners should have a good understanding of their market to sustain their business venture.

Vesper, K. H. (1990). New venture strategies. The university of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.

A business plan is important for a person looking to start any business. He or she should, therefore, be conversant with the different types of plans and choose what suits them based on the function and the stage of start-up. A business plan by definition is a road map that offers guidance through the planning process as it is important to know what one is planning for. A person can choose a plan depending on the stage of his or her business in order to understand fully what works for them. After identifying the purpose of the plan, one can get started with ease. It does not matter what type of plan a person is writing because it is an essential recipe in the entrepreneurial process.

References

Cassar, G. (2004). The financing of business start-ups. Journal of business venturing, 19(2), 261-283.

Katz, J. A., & Green, R. P. (2009). Entrepreneurial small business. Boston: McGraw-Hill Irwin.

Khwaja, A. (2001). Choose Your Business Structure. Entrepreneur. Retrieved 26 April 2016, from https://www.entrepreneur.com/article/38822

Schmid, H. A. (1999). Business entity components and business process components.

Steps in Starting Your Own Business: The Riley Guide. (1998). Rileyguide.com. Retrieved 26 April 2016, from http://www.rileyguide.com/steps.html

Vesper, K. H. (1990). New venture strategies. The university of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.

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