Small Business Essays

Categories of organisation: legal structure; type eg private company, public company, government, voluntary organisation, co-operative, charitable; sector (primary, secondary tertiary)

Financial plans :Second thing that needs to be done after business plan is complete is financial plan. A business needs investment capital. Financial plan outlines how to get the capital, for how much and for what purpose. It will also outline how the money should be spent on each project or items within the business.

The three major forms of business ownership in the United States are proprietorships, partnerships, and corporations. Proprietorships, sometimes called sole proprietorships, are business ventures owned by an individual who personally receives all profits and assumes all responsibility for the debts and losses of the business. The owner is in total control and it is

2) “Business Plan” means a formal written document that fully describes the proposed business and covers such topics as products and services, market analysis and marketing plan, start up and continuing costs, and how the business will operate.

Before starting any form of business, a comprehensive layout of a plan needs to be prepared. A business plan is absolutely necessary to evaluate the internal and external factors affecting a business. A business plan should incorporate, in general, all the critical aspects of business that directly or indirectly affect it.

As individuals who operate in the business world understand, there are many different types of business. Laymen alike have a general understanding of these differences, as many individuals immediately understand upon making purchases that buying groceries from a fall family-operated grocery store is far different than purchasing a new television from a nationally-operated chain. While many people understand that certain differences between these types of businesses exist, it is far less common for an individual to understand the specifics. The world of business is vast and varying, containing categories such as the sole proprietorship, the partnership, the limited liability partnership, the limited liability company, the s-corporation and franchise. In beginning to understand the differences between these categories of business and in understanding the situations in which these types of business are created, one can get an immediate glimpse of the exiting and complex world of business from which we as a society consumer every day.

One of the cornerstones of starting a business is a good business plan that will attract prospective investors to venture into the business. The business plan should cover all aspects of the proposed business from market

There are three main forms of business organizations that are commonly known globally; they include; Sole Proprietorship, Partnership as well as Corporation. Looking at the Sole proprietorship, it is conventionally known as a business run by one person who is also the owner. This means that the owner has 100% control over the business. This form of business organization is easy to establish since it needs very few legal requirements. There is also no need of having partners or shareholders and the taxes paid in this business organization is only on the income generated. That means that after paying the taxes, all remaining profits remains with the owner. Disadvantages of this structure include less share of expertise since the owner is the only partner. The owner also has unlimited liability for the debts and any malpractices which also includes bearing all maintenance costs (Beyer et al. 2010).

Business concept, marketplace and financial are main comprehensive sections in business plans. These three sections are elaborated in seven components, which include” the overview or summary of the plan, description of the business, market strategies, competition analyses, design and development, operation and management, and financial information”.

Business plans generally follow a standardized format, which helps loan officers and investors find the critical information they need. Information includes the details of the business, preliminary budget, information about your concept, your experience and your financial information. The following areas are critical to cover:

When developing and establishing a business, a business owner must first consider what type of legal business that they would like to create and own. In the United States, businesses that vary in form are recognized and represented in court in varying ways. In some forms of business, the personal assets of the business owner are not protected, where in others, a business owner could never risk losing assets outside of their businesses. Of the various forms of businesses that can exist, five of the most popular forms are sole proprietorships, franchises, partnerships, limited liability companies, and corporations. Different businesses all around the

6.      DON’T pick a business because “there are so many of them, they must be good.” When buying a business, feeling safe is a strong and undeniable urge. When you look at an already popular franchise, your safety level instinctively is high. You can see how easy it appears to operate, and you know that your skills could easily accomplish the necessary tasks. Right? Not necessarily!

The business world as grown intensely competitive and increasing diverse in the options provided to consumers. As an entrepreneur seek to embark on a new endeavor, it is exceedingly important to have a business plan in place. A well written business plan can serve many purposes; guidance for the entrepreneur by establishing a plan of action for the big picture as well as day-to-day operations, insight into the market and how to capture the right consumer mix through targeted marketing, and potential viability to other parties interested in backing or funding the business.

Today’s business world has many choices for the new entrepreneur to decide from when forming a business. The choices are sole proprietorship, partnership, limited liability partnership, a limited liability company, a S corporation, a franchise, and a corporate form. Development of scenarios portraying each of these forms of business will aid the entrepreneur with deciding which form will be the best choice for the business.

There is a proven sequence of steps you can follow to guarantee your success when you 're starting a small business online. I 've seen thousands of people start and grow successful businesses by doing the following: