Starting A Business

Introduction

Promoting self-employment is an increasing focus of public policy initiatives in the U.S. and abroad. Recent programs in Canada, the U.S. and Europe, for example, offer self-employment assistance to the unemployed. Moreover, development experts are becoming increasingly interested in self-employment. So successful was the famous Grameen Bank in Bangladesh at helping poor women start businesses that so-called microloans are now seen as a potentially important development tool.

Starting a small business requires determination, motivation, and know-how. Here are the critical steps to provide you with the know-how to have a successful small business startup:

Identify Your Business Opportunity

Choosing what kind of business to start can be an immobilizing task when confronted with the multitude of opportunities. It's important to determine where your passions lie and to understand your personality type. Yet, equally important is what skills you bring to the table and whether you are entering a dying industry or a fast growing emerging business.

Build a Business Plan

For any start-ups, a business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business. A study mentioned in "Business Plans For Dummies" by Paul Tiffany states that companies with a business plan have 50% more profits and revenue than non-planning businesses. Writing a business plan just makes good business sense.

Find Start-up Money

To start a business, you must invest in the business. The journey of finding start up funds will be different for each individual. Some start ups such as consulting, requires a few thousand to get a website and business cards whereas a retail store could need $100,000 or more. Finding the money you need may come for a source you never thought of or may just end up being the frugal bootstrap method.

Name Your Business

What's in a business name? Everything and nothing. The right business name will help distinguish you from a sea of bland competitors, provide your customers with a reason to hire you, and aid in the branding of your company. Learn what you need to know to find a name for your business.

Choose a Business Structure

Deciding on the structure of your business is not a decision to be taken lightly. Whether you choose the popular LLC, a sole proprietorship or form a corporation; your choice will have an impact on your business liability, fund-ability as well as taxes due. Don't fret over your ultimate business structure, because as your business evolves, so too, may your structure.

The easiest and most common form of business structure is the sole proprietorship. A sole proprietorship is a business of one without corporation or limited liability status. The individual represents the company legally and fully. Common proprietorship include part-time businesses, direct sellers, new start-ups, contractors, and consultants.

A limited liability company (LLC). is a type of business ownership combining several features of corporation and partnership structures Owners of a LLC have the liability protection of a corporation. All your business losses, profits, and expenses flow through the company to the individual ...