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| How to start a small business? |
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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 small businesses. The right opening strategies, like a game of chess, give a business the edge over its competitors. 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 |
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| Before beginning, prepare a list of motives on the basis of which you’ve decided to run your own business. Most popular reasons people give to start their own business are: |
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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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| 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? |
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| After that, 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 step is to prepare this checklist: |
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• Where will my business be situated?
• What kind of business do I want to begin?
• Which of my talents will benefit my business?
• 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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| Kinds of Small Business Organizations |
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| Selecting the correct business structure for the business is an extremely vital decision while organizing a new small business. Here 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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| A small business can either be started as a sole proprietorship, a partnership or a corporation. |
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