Starting & Managing a business

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					Starting and managing a business

In economics, business is the social science of managing people to organize and maintain collective productivity
toward accomplishing particular, creative and productive goals, usually to generate revenue.

The etymology of "business" refers to the state of being busy, in the context of the individual as well as the
community or society. In other words, to be busy is to be doing commercially viable and profitable work.

Takes motivation and talent. It also requires a lot of research and planning. Although initial errors are not always
catastrophic, it takes extra specialization, discipline, and hard work to gain advantage.

Beforehand, there must be enough time allotted to exploring and evaluating the business that you are interested
in pursuing. These information would be needed to build a comprehensive and contemplative business plan that
will help you achieve these goals.

A business plan is detailing a blue print, foreseeing the future of an endeavored enterprise, usually designed to
attract capital investment and profit. This is the first tool to be developed by thinking through some important
issues that you may not otherwise consider. Your plan will become valuable as you set out to raise money for your
business, and it will provide milestones to gauge your success.

There are many important issues that need to be considered when going into business. First, assess your reason
for wanting to go into business. Next determine the right and suitable business, contemplating the technical skills
possessed; specializations; activities involved; time to be allotted; and marketability of interests. Then, identify
personal business niche. The final step before developing your plan is the pre-business checklist which
encompasses skills and experience, legal structure to be used, maintenance of business records, insurance
coverage, resources, location, compensation and financing.

It is also vital to decide on what form of business entity to establish. The most common forms of business are the
(1) sole proprietorship—unincorporated, (2) partnership—two or more persons carrying out a trade, (3)
corporation—prospective shareholders exchange money, property, or both, for the corporation's capital stock.,
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 a business plan body. These are the (1) description of the business, (2)
marketing, (3) finances and (4) management.

The business plan is a tool with three basic purposes: (1) communication—used to attract investment capital,
secure loans, convince workers to hire on, and assist in attracting strategic business partners; (2) management—
helps you track, monitor and evaluate your progress; and (3) planning—guides you through the various phases of
your business.

In order to keep a business alive, proper management should be applied. One should ensure adequate financing,
knowledge and planning. Marketing wise, the enterprise must attract and retain a growing base of satisfied
customers. It is also vital that proper strategic planning and advertising is applied.

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