Business Creation Guide - Essay Example

Guide for business start-ups presentation Introduction It is not easy to start a business. Careful planning, locating resources like man, material, machine money etc are some of the basic necessities of business startups. This paper briefly analyses the basic necessities of business startups with respect to the article “Guide for business start-ups”. Planning Well for Success Planning is the most important thing for business startups. It is difficult to succeed in business if the entrepreneur approaches the business without any planning, evaluation of the market and analysis of the prospects. Selection of the Idea An entrepreneur can generate plenty of business ideas; but the selection of the idea should be taken only after careful evaluation and planning. It is not necessary that a business idea succeeded in one area might succeed in another area. Many factors like the social, cultural, economical, political, legal etc can influence the purchasing activities of customers and it is impossible for a business idea succeeded in one area might succeed in another area. For example, halal foods might be a huge success in areas where Muslim populations are too much. Same thing cannot be said about the areas in which Christians or Jews are staying. In other words, the business idea should focus on the cultural traits of the location in which the business is going to establish. It is possible to start a business with an entirely new idea or with the improvement of the tried and tested idea. It is possible that even a failed idea might succeed if proper modifications are done on that and implemented properly at the right place at the right time. The ideas selected should be convincing one not only for the entrepreneur, but also for the present and future customers as well. The entrepreneur should have a clear idea about who benefits from his business idea, why should a customer buy his product and how differences it is from the existing products or services, market size and prospects, competitors, finance required, possible expenses, anticipated profits, legal frameworks of the location etc. Personal Qualities It is impossible to for everyone to start business. Some basic personal qualities are essential for the entrepreneur. Patience, temperament, problem solving skills, numerical abilities, communication skills etc are some of the important skills necessary for an entrepreneur. An entrepreneur should have desire for independence, flexibility, pleasure in organizing, thirst for success, flexible enough to accept changes, willingness to take responsibility, professional knowledge, experience in the line of business, commercial skills family agreement and support etc and should not have fear, tension, anxieties, standstills and regression Legal Framework Provisions Awareness of Trade law Each and every country or the state may have relevant trade laws and the entrepreneur should have better knowledge about the trade laws with respect to his product or service. License for the trade activities should be obtained from municipal or district authorities before starting the business. Trades can be free, licensed or officially regulated. Based on that Trade laws might be different for different types of product or services. Business Premises Law Business premises also need a license according to the commercial law. For new business and also for a converted business, this law is applicable. Description of the business, procedure, waste management, technical documentation, ownership of the business and the property etc are relevant factors with respect to the business premises law. Legal Forms Business can be started either independently or as a partnership deal. In any case, legal form defines both the legal relations within the enterprise and those with its environs. It also consider the aspects of personal, tax, administrative and commercial law criteria when choosing a legal form for your business. Social Insurance Social insurances are must for the business startups. Insurances covered for health, accidents, retirements/pension etc are essential for business startups in order to cover the expenses in those areas. Social insurances must be incorporated to the business immediately after the entrepreneur got his trade license. Taxes – Accounting The knowledge about accounting and taxes are another major requirement for an entrepreneur. It is necessary to pay taxes like sales tax, profit tax or income tax, corporation taxes etc for the services taken and for that purpose; the entrepreneur should maintain a well organized accounts department. Account department is responsible for paying salaries and controlling the credits and debts. Commercial Bases Marketing Marketing is the core of every business. It can make or break an organization. It is the duty of the marketers to sell the products or services produced. If the product fails to find buyers the business cannot move or grow. Situation analysis based on customers, competition, surrounding, strengths and weakness and the subsequent formulation of plans and strategies are necessary to control the business properly. Market analysis, formulation of target sales, market segmentation, growth prospects, formulation of marketing objectives, advertising activities etc are necessary for successful marketing campaigns. Customer service, after sales service, building relationships with the customers etc are the basic necessities for a successful marketing exercise. Accounting Book keeping and accounting are the traditional methods employed by all the entrepreneurs to have an idea about how well his business is prospering. The entrepreneur should always have a clear idea about the direction in which the business is moving and for that purpose accounting will help him. Calculation and Profitability The present, past and anticipated future performances of the company are the important documents, the entrepreneur should work on. It is impossible for an entrepreneur to sustain a business if it brings only losses and the prospects of the future are dull in its present shape. Under such circumstances, remedial measures like cutting down of costs and overhead expenses are necessary to bring back the business in the right track. Financing Awareness about the financial requirements is another important factor for the entrepreneur. It is not necessary that the goods or services sold in the market always bring the cash instantly. Credit purchasing is a common thing and the entrepreneur should have better ideas about the creditors and debtors in order to plan his money properly. Works Cited 1. “Guide for Business Start-ups”. 2010. Junior Chamber/Business Start-Up Service/Women in Business of the Austrian Chamber of Commerce, Wiedner Hauptstrasse 63, 1045 Vienna Read More