In economics, business is the social science of managing people to organize and maintain collective productivity towards the achievement of particular, creative and productive goals, generally to generate income.
The etymology of “business” refers to the state of being busy, both in the context of the individual and of the community or society. In other words, to be busy is to be doing commercially viable and profitable work.
Starting and running a business requires motivation and talent. It also requires a lot of research and planning. Although initial mistakes are not always catastrophic, it takes additional specialization, discipline, and hard work to gain an advantage.
Beforehand, there should be enough time allotted to explore and evaluate the business you are interested in doing. This information would be necessary to build a comprehensive and contemplative business plan that will help you achieve these goals.
A business plan details a blueprint, which envisions the future of an engaged company, generally designed to attract capital investment and profit. This is the first tool that you develop by thinking about some important topics that you might not otherwise consider. Your plan will become valuable as you set out to raise money for your business and provide milestones to measure your success.
There are many important issues to consider when starting a business. First, evaluate why you want to start a business. Next, determine the suitable and suitable business, contemplating the technical skills that you possess; specializations; activities involved; time to be allocated; and marketability of interest. Next, identify your personal business niche. The final step before developing your plan is the pre-business checklist, which covers skills and experience, legal structure to be used, business record keeping, insurance coverage, resources, location, compensation and financing.
It is also vital to decide what type of business entity to establish. The most common forms of business are (1) sole proprietorship – unincorporated, (2) partnership – two or more people doing business, (3) corporation – potential shareholders exchange money, property, or both, for the equity capital of the corporation., and (4) S corporation: an eligible national corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statutes.
There are four distinct sections in the body of a business plan. These are (1) business description, (2) marketing, (3) finance, and (4) management.
The business plan is a tool with three basic purposes: (1) communication: it is used to attract investment capital, guarantee loans, convince workers to hire, and help attract strategic business partners; (2) administration – helps you track, monitor and evaluate your progress; and (3) planning – guides you through the various phases of your business.
To keep a business alive, proper management must be applied. Adequate funding, knowledge and planning must be ensured. When it comes to marketing, the business must attract and retain a growing base of satisfied customers. Proper strategic planning and advertising is also vital.
Copyright 2007 Ismael D. Tabije