Friday, February 17, 2012

Putting Up Your Own Business

Who wouldn't dream of having their own business? As far as I know, all of us wants to build and run our own business to get more income and to help us provide our daily needs aside from the fact that we can have luxury when our business continues to grow. There are things to consider before we can build our own business also known as enterprise or firm. It is an organization engaged in the trade of goods, services, or both to consumers.

There are several common forms:

Sole proprietorship: A sole proprietorship is a business owned by one person for-profit. The owner may operate the business alone or may employ others. The owner of the business has unlimited liability for the debts incurred by the business.
Partnership: A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three typical classifications of for-profit partnerships are general partnerships, limited partnerships, and limited liability partnerships.
Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned or privately-owned, and corporations can organize either for-profit or not-for-profit. A privately-owned, for-profit corporation is owned by shareholders who elect a board of directors to direct the corporation and hire its managerial staff. A privately-owned, for-profit corporation can be either privately held or publicly held.
Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

It is important to have a business plan, it is a form of setting a goal to achieve what you want. Consider the following:

Location of the business/building: determine the chosen target market, traffic patterns, parking availability, population trends, competitive businesses, rental costs, and other expenses.
Product or Services: an item that ideally satisfies a market's want or need.
Capital: refers to already-produced durable goods used in the production of goods or services.
Profit: The positive gain from an investment or business operation after subtracting for all expenses. Opposite of loss.
Management team: in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.
Office equipment supplies and furniture: supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who work with the collection, refinement, and output of information.The term includes small, expendable, daily use items such as paper clips, post-it notes, staples, hole punches, binders and laminators, writing utensils and paper, but also encompasses higher-cost equipment like computers, printers, fax machines, photocopiers and cash registers, as well as office furniture such as cubicles, filing cabinet, armoire desks and office chairs.
Consumer: is the one who consumes the goods and services produced. Determine the percentage of people in the area where you want to put up your business.
Business Permit: It is the authorization to start a business issued by the local government.It serves as proof that your business is legal.

These are just some of the factors to consider when planning to have your own firm.
Starting a business is an inherently risky undertaking. You can minimize the risks - and your potential financial losses by planning carefully and study it as well.

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