More and more people are beginning to open their minds to new business ventures. It seems like it is becoming the popular move. By opening a business there could be huge profit to be made, depending on the market. On the other hand, there are risks and losses that may occur as well. It is said that there are two reasons why people start a business. The first reason is because they have inspiration for what they believe would be a great idea and the second is from desperation. People have a need to make money and there are no jobs out there, which they found, that suites them or their needs. There are various different ways to start a business. Not all entrepreneurs begin their business by the thought of an idea. There are many other ways to go about starting a business. Buying a franchise, buying an existing company, the inventions of a product are all other ways to begin a business. People often start a business in a field that they know well. Although this is true, it is essential not to limit the perspectives of the kind of business to open. The areas outside of your interests may just be the right opportunity for you, which is why it is important to explore other areas. This paper will talk about the general ways in which to start a new business and how to go about doing it. Included will be how to get ideas to open a business, planning out the business structure, ways to get money to start the business, getting prepared, hiring the staff, and getting the word out to the public.
Getting Ideas to Open a Business
The business idea plays a critical role in the overall success of the business venture chosen.
"It is part of the early pre-venture stage of business development that often goes unnoticed by those who are interested in getting into a business and by those involved in business development counselling/training"(Canada 1). "There are many considerations that must be thought of before determine the success of an enterprise, including the entrepreneur, financing and other external forces". "In order to have a good business idea it should:
* satisfy personal goals and interests,
* find a success place in the market,
* making sure it is possible to produce the necessary quality and quantity of the product or service, and
* Meet or exceed your financial goals"
In order to meet all of these criteria, it is essential to complete research on the business idea that has been chosen. Research information can be gathered from various different sources. Some of these sources being the library, looking at existing businesses, word of mouth, reading books, watching television, going to government departments, talking to university professors etc. If the research has not been completed then it more likely that the business will become a failure.
Planning Out the Business Structure
The one basic question facing all new business owners is "what business structure is the
best for me?" (Canada 6). There are three main types of business structures: sole proprietorship, partnership, corporation. All of these different structures are different and require different things to make them work. The sole proprietorship is a business that has only one owner and for the purpose of his/her own profit, the partnership is a business which has two or more people and all of the workers work as co-owners, and the corporation is an artificial entry with obligations, rights and privileges that are distinct. By having a structure it can cut down costs and maximize the profits, it will be easier to get money lent with certain structures and the tax is different depending on the type of structure.
Once the name of the business has been chosen it is important to register this name
unless the company is just your first and last names. The name registration must go through the Registry of Joint Stock Companies. By...