HOW TO START A SMALL BUSINESS.   Term Paper ID:19037 Click to get this paper

Essay Subject: Deals with organization & legal structure, financing, purchase & inventory, location, advertising.... More...

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Paper Abstract: Deals with organization & legal structure, financing, purchase & inventory, location, advertising. Paper Introduction: There are many steps involved in starting a small business. For example, the organization and legal structure of the business must be decided upon, financing must be arranged, inventory must be purchased, the location must be chosen, and an advertising plan must be worked out. Before embarking on any of these steps, however, the aspiring business owner must make a thorough selfanalysis in order to determine if he or she is truly qualified for the task. The chances for success in a small business will be greatly enhanced if the person has the characteristics of an entrepreneur. These characteristics include leadership abilities. Thus, the aspiring business owner should be good at working with people, able to take responsibility, and have good problem-solving and decision-making skills (Martin, 1988, pp. 8-9). In addition, as noted by Sharon Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. must be arranged inventory must thorough selfanalysis in order to determine if Thus the aspiring business owner by SharonKahn the small business owner needs to have self-confidence small business also involveschoosing a product or service with a profit Withoutthis assurance starting is somehow better or cheaperthan the the option of buying a However ifthe business was a failure in clientele orcustomers who never seem to pay their your lawyer and or accountant Fallek PP capable of helping out when there are in buying any kind of existingbusiness are starting a small business must somehow which will be discussed later in this paper Upon soleproprietorship the partnership and the corporation There are advantagesand disadvantages its profits Inaddition the owner in a sole liability if the business goes belly-up orif threatened by a one person Thus ifthe owner dies or quits partners are equal however in The partnership is very similar to the soleproprietorship a corporation there is even lesspersonal liability among the individuals of its members Schwartz p In a soleproprietorship or amount Martin p In addition an advantage of found in running a corporation Martin p In addition the process ofestablishing a corporation thereare other legal requirements which are license In most cases smallbusinesses are also required required whenever a person establishes a new of conflict with other existing business names small businesses is that of maintainingaccurate records Such records businesses are required to file tax returns because failure tocomply carries stiff penalties Fallek pp accountant can keep track of the overall Financing is another necessary aspect in starting and maintaining a business These costs includepayments for advisable for most small businesses to be covered for of ways in which financing can be obtained forthe some cases friends or relatives help provide Thus if you start a business to obtain a bank loan be put up as a security inthe event ask the aspiring owner to invest and to thereby show awillingness sources for loans In particular the federal agency known repay themajority of a loan in the event that documentedmeans with which to pay back the their businesses will be heading Thus as advised a plan will you be ableto get enough investment money outlines the nature of the business the objectives of theentrepreneur shows the viability of the proposedbusiness to entrepreneur is serious about starting a business and has the situation evaluating theproposed business and budgets writing out aninitial draft of the plan product a small business can be either the selling of a product tosucceed beyond its first few months consideration in determining the potential success of anynew business In not seem cheap to the customers Furthermore the price loses money or merely breaks even Thus in the long thisregard the chosen product must be priced so that it mail order For thesetypes of businesses location outletwill be required In order to insure the success of foot traffic carries a number getting a new business started it concerns In order to makesales of any product the product small business owner suchthings as who the effective marketingplan the small business owner also needs of analysis the new business owner needs todetermine what potential the same time standing out from the rest thecharacteristics of potential customers the owner can better newspapers the customers like toread business advertising and promotion are the bestpossible ways ads may be run Advertising in a variety of periodicals ofpromotion Promotion relates to the free publicity stimulating press releases which will beaccepted by the print In this regard both television turning to the concept of guerrilla cheaper In addition alternative marketing approachesare often helpful to they pass on the street Thinking in addition to attracting potential customers they give a continued hard work determination and leadership in Inthis regard the business owner must be things as market customers or thecompetition One patterns etc is thechief business malaise Berle p There are competitionat the start of a business the success of that a particular product to customers is the way in competition but rather in the failures of the first few years thereare also that idea started Therefore Mike McKeever recommends that aspiring small This paperhas shown that the chances for profitability Inaddition it has been noted byMcKeever In my view p If a person feels qualified and thinks sources forfurther information including booklets and business Vol Minneapolis American Institute of Small business start-up How to write abusiness th ed Vol Detroit Gale Research Forexample the organization and legal structure of the of these steps however the greatly enhanced if the person has the characteristics ofan entrepreneur have good problem-solving and decision-making skills Martin of all however is that of picking something you of capital The new business ownerneeds to be assured provide a product or service whichis needed high demand is a verydifficult there is a goodchance that it will continue existing business you inherit eitheradept or incompetent employees Furthermore any purchase contract should beprepared type of business hasfewer risks because there future profits you also lose a degree of independence there is no track record to be will be This forecasting is usually included in and legal structure of the businesswill be The advantage of this approach isthat the owner has p However asnoted by Max Fallek a disadvantage in a all of theresponsibility of the more partners share the control of thus be given more control over the organization person In addition liabilities and debts are the corporation has a legalstatus which a corporation on the otherhand matters Fallek pp However there thecorporation as well as by as experienced advice from accountants and addition businesses involved in the retailindustry are as registering a DBA doingbusiness stategovernment a check is run by the in the Legal Notice Section of a in the event ofa tax audit Taxes withholdings from their salaries Such taxescannot be ignored that a qualified accountant be hired early on keeptrack of its expenses and income in order for to start a new commercialenterprise without some form of cash on hand and cash on reserve for unforeseens required to carry workman's compensation insurance as and seeking other potential sourcesfor loans Many small businesses using one's own savingsis that it provides aspiring business owner does not haveenough personal savings to to the person asking for the rules for giving out loans to want the entrepreneur to come upwith aspiring business owner has difficulties As a general rule the SBA does not directly give potential business owners areobliged to provide in addition to give out money to people who areuncertain that tells all about youand your In the wordsof Charles L a description of the business its from outside sources This is because athorough Plan Charles L Martin enumerates eight steps which working out strategies and tactics However the majorityof them are involved in either the manufacturing Retailers on the other hand areconcerned with providing products such trades will be concerned with such things aspurchasing and inventory whenevernecessary Another related concern time the price must also No small business will be able to requires that the smallbusiness owner success is that of choosing agood location necessary However ifthe business is a normal Thus the chosen site should be closeto public suppliers and the availability of the success of its advertising and promotional campaigns Related businessplan new owners are encouraged to develop a concise marketing prospective customers can best bereached seeks to find ways in which the way the owner can arriveat a product and owner must also ask questionsregarding the demographics best possible location for a new have been identified thesmall business owner needs ads which are found in magazines and newspapers The YellowPages budget in order to meet this need In leaders are well advised to learn media small businessesalso have the option of informing their customers advertisements on television is generally muchmore expensive than it is both new and small businesses of marketing can be seen in the product stand out among the crowd In fact all small business has been successfully established theowner's work is opening Another important aspectin insuring continued small business will probably fall by the loss of sales due to competitive the strength of thecompetition Berle warns is a basic commandment ofrunning business p As emphasized earlier cause for small business failure high on the list for reasons why some smallbusinesses a particular business idea will work However there arealso a Nevertheless the rewards aregreat whenever a and if he or she picksthe right type plan Nonetheless aspiring business owners mustbe prepared to face the like the prairies of yesteryear there are step would be to visit a local business book New York John Wiley Sons Fallek Max L Starting your new business Row Schwartz Carol A ed There are many steps involved be purchased thelocation must be chosen and an advertising he or sheis truly qualified for the task The should be good at working with andassertiveness courage willingness to take controlled risks capacity forhard which is profitable A new a new business is simply not worth the similar items which are offered by competitors in business which has already been established bysomeone the past it may not be worth purchasing bills Kahn P Because ofthe risk factor in The risk in buying an existing business can bereduced by financial difficulties However franchises limit business owners because you far less than those in be able toforecast in advance what the deciding what type of business to each of these structures With a sole proprietorship there proprietorship has more flexibility andfreedom substantial lawsuit Fallek pp Anotherpossible disadvantage the entire business generally comes to an end some smallbusinesses one of the partners will except for the fact that the which comprise it In fact a partnership the owners are personally liable for thedebts which are the corporate structurecan be seen in the fact that it For example the members of thecorporation are limited is very complicated and requires a involved in establishing a newbusiness Each small business owner to file a fictitious name statement with business which is not knownby his or her own full Fallek pp The process of are important not only for keeping controlover the on a regularbasis In addition Unless the smallbusiness owner is already experienced in accounting profits andlosses of the company of establishing a new smallbusiness In rent equipment salaries licenses tax suchthings as fire liability and theft In purpose of establishing a small business These ways include usingone's the money thatis needed for the with your own money you won'thave to worry about making Bank loans always require that the potentialbusiness owner have some that the loan is not at least as muchas they to share the financial risks as the Small BusinessAdministration SBA is noted the owner fails to do so loan Schreiber p Thisdocumentation is usually provided in the form by Gustav Berle the potential business owner should prepare a Berle p A business plan isessentially an and the proposed actions that will lenders The better the plan done therequired homework Martin In and its market articulating personal and revising the plan as needed p Many small a retail or awholesale business A wholesale outlet specializes it will need to have astrong inventory in the owner needs to be sure this regard the price must be low enough so that of a given product must term your prices must more is neither too highnor too low in comparison is not a serious problem because theentrepreneur of the business theprospective owner needs to make a of inherent advantages Furthermore a good location is important that potentialcustomers be informed about it Thus must somehow be made available to thegeneral public customers are what the customers want how the productfits to be concerned with theactivities of the competition customers want or need yet of the products andapproaches which are similar to it In determine howto attract them For example knowing where can help the owner to for reaching customers Much advertising for smallbusinesses is geared toward oftenrequires a large expenditure and therefore all which occurs whenever amagazine or newspaper mentions media for promotion purposes In addition to runningadvertisements and and radio stationsoffer the sale of advertising marketing and have thussought alternative new businesses because they tend to be more noticeableto of ideas like this forces the small focusto the direction in which order to make sure that the businesscontinues prepared to change his or heroriginal plan if reason why a small business might fail also numerous casesin which a business will eventuallyattract it Thus preparing for which thatproduct stands out from the others However it owner Thus lack of experience lack of planning many others which go on business owners begiven both encouragement and caution small business success are enhanced if shown that successful small businesses generally haveadequate financing small business is one of the last great frontiers they have a good idea seminars which can help thepotential small business owner Small Business Kahn Sharon and the Philip Lief plan Berkeley Nolo Press Schreiber Norman Your business must bedecided upon financing aspiring businessowner must make a These characteristics include leadership abilities pp In addition as noted love and aregifted at p Successfully starting a of making that investment back or wanted by customers and which undertaking As an alternative the budding entrepreneur alsohas to be successful in the future along with either a readymade or at least carefully examined by is a parent company which controls everything andis Kahn p The risks involved analyzed Therefore theperson planning on the creation ofa business plan The three basic structures of a business are the complete control over the business and sole proprietorship is that theowner faces unlimited personal business on the shoulders of thecompany In many cases the than the others Berle p shared by thepeople making up the partnership In gives it its own rights privileges and liabilities distinctfrom those the stockholder's liability is limited to a fixed investment are also certain disadvantages tobe the government regulations which are required forsuch a business lawyers Beyond determining the legal structure for the organization required to obtain a resale tax as form Schwartz p A fictitious name statementis state in order to make sure the chosenname is free localnewspaper Another legal requirement for are yet another important legal consideration for newbusinesses All by the aspiring new business owner In additionto taxes a good it to succeed in the longrun investment capital There are a number ofcosts involved Berle p In terms ofinsurance it is well associal security and unemployment insurance There are a variety are begun with the owner's personalsavings In the business owner with a great deal of financialfreedom cover the costs there is also the option oftrying loan Whengiving loans banks require that such collateral new businesses For example inmost cases the bank will at least half of the overall investment capital inobtaining a bank loan there are also other potential outloans but rather makes guarantees to banks that they will some form of collateral a about the direction in which future aspirations because only with such Martin a business plan is a carefully prepared documentthat market and itsfinancial strategies the business plan concise and persuasive plan will convince lenders and investorsthat the are involved in creating asolid plan These steps are analyzing for carrying out thebusiness objectives creating forecasts or selling of a product In terms of selling a directly to consumers If a smallbusiness is concerned with having a good source of supply If the business is is that of pricing Product pricing isa very important behigh enough so that the product does survivefor very long if it habitually be aware of the competition within the same field In Many small businesses work only in retail establishment some type of store or transportation In addition a location where there is a greatdeal a local labor force Berle p In to this are marketing and distribution plan whichcovers this aspect The marketing plan tells the Schreiber p In developing an chosen product isunique within the field In making this type a marketing approach which are attractive to customerswhile at of potential customers By understanding business In addition knowing what magazines and to work-out what distribution channels will beused In a retail in the telephone directory is another place in which successfulprints addition to paid advertising there is also the concept about theprocesses involved in creating of their products throughthe broadcast media on radio In recent years many small businesseshave begun because it often involves usingoutlets which are actof handing out printed flyers to people as considerations of marketing are important to the new small businessbecause not finished There needs to be business success is that of flexibility waysideif there are drastic changes in such reasons stylechanges inadequate sales efforts changes in road that even if there is no substantial in this paper the mainattraction of is not found in lackof sales or fail Berle pp Although many new businesses fail within their number of financial risks involved in getting new business proves itself to be a success of product or service for insuring future challenges as well as the rewards As more than a few rattlesnakes among the poppies McKeever officeof the Small Business Administration The SBA offers many How to set up your own small A guide forentrepreneurs Los Altos Ca Crisp Publications McKeever Mike Small business sourcebook Theentrepreneur's resource in starting a small business plan must be worked out Before embarking on any chances for success in a smallbusiness will be people able to take responsibility and work ambition and persistence Kahn p The most importantelement businessgenerally requires a large investment financialrisk Therefore a new business should the field Deciding which product or service will be in else If the business was successful before Inthe words of Kahn when you buy an buying a business the prospective buyer should studythe situation carefully buying into a franchise Purchasing this not only sacrifice apercentage of your establishing an entirely new one Witha new business potential profitability of the chosen serviceor product to start the entrepreneur mustnext determine what the organizational is only one owner of the business than in the other structures Martin of this structure is that it places In a partnership two or be designated as a managing partner and will profits are shared by morethan one keyconcept in this type of structure is that owed by their companies In gives greater Inflexibility in tax in their actions by the various laws of great deal ofpaperwork as well needs to obtain a business licensefrom the local government In thelocal government This is often referred to name When the statement is filed with the filing a fictitious name also involvesrunning a classified advertisement business but also for providing proof of expenses small businesses which have employees are required tofile statements regarding and bookkeeping it isalso advisable It is vitally important that a small business fact it is obviously impossible deposits legal fees accounting fees starting inventory insurance advertising addition small businesses withemployees are own savings securing bank loans venture The major advantage of loan payments or keeping investors happy McKeever pp If the form of collateral Collateral refers tosomething of value which belongs repaid on time Banks can be very demandingin their are lending In other words they which are involved McKeever pp If the for its efforts in helping new businesses getoff the ground Schreiber p In order to obtain a financial loan of a business plan Banksand other lending institutions will not sound thorough rational business plan overall guideline to the proposed business be required to reach thoseobjectives Martin p By providing the better the chances are ofthe entrepreneur obtaining money How to Write a Business objectives defining the nature of the business establishing businessobjectives businesses are in the service industries in being a middlemanbetween manufacturers and retailers order to become successfully established Thus thesmall business owner in that therewill be no problems in terms of restocking the peoplewill want to buy the product At the same be high enough to insurethat product's profitability than cover your costs of doingbusiness Martin p Effective pricing with the competition Another vital aspect in small business can work out of his or her own home if careful consideration regarding the bestlocation for attracting customers is partially determined by such factors as access toinventory the success of any new business isattached to Thus in addition to establishing an overall into the marketplace and how the Thus the marketing plan generally analyzesthe competition and are not receiving fromthe competition McKeever p In this a marketing plan the small business customers like to shop canhelp the owner to determine the determine the best places for runningadvertisements Once the potential customers the print media This refers to the classifiedand display new businesses areencouraged to establish an advertising a product in its articles or columns Aspiring small business seeking publicity in the print spots to small businesses It may benoted however that running means for advertising their products This approach isgood for the public An example of this type business owner to come up withideas which make the chosen the company is heading Even when the to succeed beyond its initial necessary McKeever pp Without thiswillingness to change the small is low sales Asnoted by Gustav Berle small business will fail because of such competition through proper pricing display service selection and promotion is generally agreed thatthe single greatest and lack of accurate record keepingare all cited as being to succeed There is always thepossibility that McKeever p Any newenterprise will be faced with difficulties thebusiness owner is an entrepreneurial type of person ample inventory a good location and a strongadvertising and marketing ofboth individualism and opportunity but forstaring a business perhaps the next get started Schreiber p References Berle Gustav The do-it yourself Group BestBusinesses to Start New York Doubleday Martin Charles Home Office New York Harper must be arranged inventory must thorough selfanalysis in order to determine if Thus the aspiring business owner by SharonKahn the small business owner needs to have self-confidence small business also involveschoosing a product or service with a profit Withoutthis assurance starting is somehow better or cheaperthan the the option of buying a However ifthe business was a failure in clientele orcustomers who never seem to pay their your lawyer and or accountant Fallek PP capable of helping out when there are in buying any kind of existingbusiness are starting a small business must somehow which will be discussed later in this paper Upon soleproprietorship the partnership and the corporation There are advantagesand disadvantages its profits Inaddition the owner in a sole liability if the business goes belly-up orif threatened by a one person Thus ifthe owner dies or quits partners are equal however in The partnership is very similar to the soleproprietorship a corporation there is even lesspersonal liability among the individuals of its members Schwartz p In a soleproprietorship or amount Martin p In addition an advantage of found in running a corporation Martin p In addition the process ofestablishing a corporation thereare other legal requirements which are license In most cases smallbusinesses are also required required whenever a person establishes a new of conflict with other existing business names small businesses is that of maintainingaccurate records Such records businesses are required to file tax returns because failure tocomply carries stiff penalties Fallek pp accountant can keep track of the overall Financing is another necessary aspect in starting and maintaining a business These costs includepayments for advisable for most small businesses to be covered for of ways in which financing can be obtained forthe some cases friends or relatives help provide Thus if you start a business to obtain a bank loan be put up as a security inthe event ask the aspiring owner to invest and to thereby show awillingness sources for loans In particular the federal agency known repay themajority of a loan in the event that documentedmeans with which to pay back the their businesses will be heading Thus as advised a plan will you be ableto get enough investment money outlines the nature of the business the objectives of theentrepreneur shows the viability of the proposedbusiness to entrepreneur is serious about starting a business and has the situation evaluating theproposed business and budgets writing out aninitial draft of the plan product a small business can be either the selling of a product tosucceed beyond its first few months consideration in determining the potential success of anynew business In not seem cheap to the customers Furthermore the price loses money or merely breaks even Thus in the long thisregard the chosen product must be priced so that it mail order For thesetypes of businesses location outletwill be required In order to insure the success of foot traffic carries a number getting a new business started it concerns In order to makesales of any product the product small business owner suchthings as who the effective marketingplan the small business owner also needs of analysis the new business owner needs todetermine what potential the same time standing out from the rest thecharacteristics of potential customers the owner can better newspapers the customers like toread business advertising and promotion are the bestpossible ways ads may be run Advertising in a variety of periodicals ofpromotion Promotion relates to the free publicity stimulating press releases which will beaccepted by the print In this regard both television turning to the concept of guerrilla cheaper In addition alternative marketing approachesare often helpful to they pass on the street Thinking in addition to attracting potential customers they give a continued hard work determination and leadership in Inthis regard the business owner must be things as market customers or thecompetition One patterns etc is thechief business malaise Berle p There are competitionat the start of a business the success of that a particular product to customers is the way in competition but rather in the failures of the first few years thereare also that idea started Therefore Mike McKeever recommends that aspiring small This paperhas shown that the chances for profitability Inaddition it has been noted byMcKeever In my view p If a person feels qualified and thinks sources forfurther information including booklets and business Vol Minneapolis American Institute of Small business start-up How to write abusiness th ed Vol Detroit Gale Research Forexample the organization and legal structure of the of these steps however the greatly enhanced if the person has the characteristics ofan entrepreneur have good problem-solving and decision-making skills Martin of all however is that of picking something you of capital The new business ownerneeds to be assured provide a product or service whichis needed high demand is a verydifficult there is a goodchance that it will continue existing business you inherit eitheradept or incompetent employees Furthermore any purchase contract should beprepared type of business hasfewer risks because there future profits you also lose a degree of independence there is no track record to be will be This forecasting is usually included in and legal structure of the businesswill be The advantage of this approach isthat the owner has p However asnoted by Max Fallek a disadvantage in a all of theresponsibility of the more partners share the control of thus be given more control over the organization person In addition liabilities and debts are the corporation has a legalstatus which a corporation on the otherhand matters Fallek pp However there thecorporation as well as by as experienced advice from accountants and addition businesses involved in the retailindustry are as registering a DBA doingbusiness stategovernment a check is run by the in the Legal Notice Section of a in the event ofa tax audit Taxes withholdings from their salaries Such taxescannot be ignored that a qualified accountant be hired early on keeptrack of its expenses and income in order for to start a new commercialenterprise without some form of cash on hand and cash on reserve for unforeseens required to carry workman's compensation insurance as and seeking other potential sourcesfor loans Many small businesses using one's own savingsis that it provides aspiring business owner does not haveenough personal savings to to the person asking for the rules for giving out loans to want the entrepreneur to come upwith aspiring business owner has difficulties As a general rule the SBA does not directly give potential business owners areobliged to provide in addition to give out money to people who areuncertain that tells all about youand your In the wordsof Charles L a description of the business its from outside sources This is because athorough Plan Charles L Martin enumerates eight steps which working out strategies and tactics However the majorityof them are involved in either the manufacturing Retailers on the other hand areconcerned with providing products such trades will be concerned with such things aspurchasing and inventory whenevernecessary Another related concern time the price must also No small business will be able to requires that the smallbusiness owner success is that of choosing agood location necessary However ifthe business is a normal Thus the chosen site should be closeto public suppliers and the availability of the success of its advertising and promotional campaigns Related businessplan new owners are encouraged to develop a concise marketing prospective customers can best bereached seeks to find ways in which the way the owner can arriveat a product and owner must also ask questionsregarding the demographics best possible location for a new have been identified thesmall business owner needs ads which are found in magazines and newspapers The YellowPages budget in order to meet this need In leaders are well advised to learn media small businessesalso have the option of informing their customers advertisements on television is generally muchmore expensive than it is both new and small businesses of marketing can be seen in the product stand out among the crowd In fact all small business has been successfully established theowner's work is opening Another important aspectin insuring continued small business will probably fall by the loss of sales due to competitive the strength of thecompetition Berle warns is a basic commandment ofrunning business p As emphasized earlier cause for small business failure high on the list for reasons why some smallbusinesses a particular business idea will work However there arealso a Nevertheless the rewards aregreat whenever a and if he or she picksthe right type plan Nonetheless aspiring business owners mustbe prepared to face the like the prairies of yesteryear there are step would be to visit a local business book New York John Wiley Sons Fallek Max L Starting your new business Row Schwartz Carol A ed If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.