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A Frank Assessment of Your Goals Before Starting A Small Business
Last Updated: 03-Sep-2013
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| To start and operate a business, in addition to flair, enthusiasm and desire, a considerable amount of study and preparation is required. A person needs the skills of a chess player to succeed in the game of a small businesses. As in the game of chess, the right opening strategies, gives a business the edge over its competitors. |
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| A frank assessment of personal and business goals is needed, which can be used to develop a thorough business plan. |
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| Getting Started Reasons to start the new venture |
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| The next step is to find out the type of business that suits you. For that you must ask yourself the following questions: |
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- You are your own boss.
- You crave for creative independence.
- You are financially self-sufficient.
- You wish to make the maximum use of your potential.
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| Finding out which business suits you the best |
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| The next step is to find out the type of business that suits you. For that you must ask yourself the following questions: |
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- What are my technical skills?
- How do I enjoy spending my spare time?
- What are my talents?
- Can I make money using my hobbies?
- How long can I spend in running my business?
- What kind of business do I want to begin?
- Which of my talents will benefit my business?
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| Finding the right slot for your business |
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| After finding out the business that suits you best, it is necessary to find the right slot for your business by answering the following questions: |
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- Who are my competitors?
- Is my product marketable, in other words, will it sell?
- How is my business better than the competitors’?
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| The concluding steps |
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| The concluding step is to prepare a checklist, which should include: |
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- Where will my business be situated?
- What name will my small business have?
- How will the legal framework of my business be?
- What type of insurance coverage does my business require?
- What type of financial aid do I require?
- What machinery/inventory do I require?
- What assets do I have?
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| The answers to these questions will help you come up with a systematic business plan that can be used in the future for devising strategies to operate the business. |
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| A small business can either be started as a sole proprietorship, a partnership or a corporation. |
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| Organizing a new small business – Major constraints |
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| Selecting the correct business structure for the business is an extremely vital decision while organizing a new small business. Here are a few major factors that affect your decision: |
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- Legal boundaries
- Resource requirements
- Kind of businesses
- Liabilities present
- Distribution of earnings
- Size of the business
- Duration of business cycle
- Tax pros and cons
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