Business Venture - Steps of Starting, Counseling, and Training, Business Structure - Essay Example

Business Venture Introduction Establishing a new business venture, it begins with a business idea. Probably there is something you are really experienced and zealous about, or you think you have established a technique to fill a margin in the marketplace. It is important to create a list of businesses which you could see yourself initiating and implementing the business idea. You could initiate a profiting earning idea which is a home-based such as a software development or online marketing. Another alternative is to initiate a franchise of a well-known corporation. The theory of copying well-known franchise and business model are in existence and all one require is a good adoption and implementation of the business concept and capital to fund the business operations (Fallon, 2015). This essay discusses the steps of business venture, sources of funding a business venture and how to protect the business using intellectual property rights. When one thinks of a business idea, it is also essential to regard the business structure and logistics of where one will be undertaking the business. Once one has narrowed down the business ideas, do a swift research for available companies in your preferred line of business. Study what the existing managers are performing and discover how you can do the same task in a better manner. If you consider your business can offer something that other businesses cannot or offer the same idea, though in a faster and inexpensive, then you have a rigid business idea and are ready to form a business plan (Fallon, 2015). Steps of starting a Business Venture Develop a Business Plan To escalate the chances for accomplishment, it is essential to time up front to research and analyze your personal and business objectives. Then employ this data to create a complete and well informed business plan that will assist the business reach these goals. The procedure of creating a business plan will assist you think through some essential concerns that you may not have taken into consideration yet. This plan will become a useful tool as you design to obtain finances for the business. Developing a business plan should also deliver milestones to measure business success (McConnon, 2015). There are a several significant questions one requires to raise as the objectives of a business plan. What is the purpose of the business? What are the final goals for the business? Who is the business selling to? How will the business venture access finance capital? All of these questions can be well-documented in the business plan. This business plan assists the business to find out where the bearing on the business, what it requires to maintain it and how it will cope any potential hitches. Business Counseling and Training Initiating a business can be hard, particularly if its the first instance for an entrepreneur. Acquiring the necessary assistance through training and counseling all steered in the direction of business proprietors. The business should benefit of the numerous training and counseling programs are accessible to help in the business venture. From minimal price business training and free counseling, selling to government, finding access to funds and developing your business globally, these associates can assist to get you started (McConnon, 2015). Business Location It’s essential to regard numerous issues when determining the position of a company. For the most localities, the perfect location for your business will be reliant on on what structure of business one can operate. Accessibility, closeness to rival businesses, zoning and signage rules are all factors to remember. One should consult about selecting the suitable region which fulfills zoning laws. Consider where one will start up a business. Setting up a business in a locality which is suitable and reachable to the consumers will give it a much better opportunity of prospering. Nevertheless, a locality may not be as significant if you are venturing into a new business that is internet-oriented or home –based (McConnon, 2015). Financing the Business Every business requires funds at some point to venture into money generating or develop into a big company. Normally, this comes from home equity, savings or family and friends. The succeeding most common source of financing is to search for some sort of business loan. If the business is one that you can operate during the day, you might be able to finance your startup costs without going into debt. A lot of entrepreneurs consider venturing into a new business is a technique to break the monotony of their day jobs, so this technique may not be a priority for everyone. If one is scheduling to design the new business a full-time job, it will be clever to wait until one has at least some finances kept aside for initial venturing costs and to sustain oneself in the establishment before you begin making a profit (McConnon, 2015). Initiating a business venture needs a lot more financing up front possibly will need to regard venture capital. It is estimated that 80 percent of businesspersons invest in their new businesses. It is very probable that you will require a little bit or more of monetary help reliant on the structure of business one is initiating. A commercial loan given by a bank is an ideal initiation level, however, these can often be challenging to acquire. If one is incapable of acquiring a bank loan, one can apply for a business loan. Before deciding the entitlement for a loan, the SBA (Small Business Administration) will analyze the business plan to confirm that a business plan is well-documented and comprehensive. Minor loans from family and friends are alternative suitable manner to manage in the business venture, as long as one ultimately reimburses them back. Choose the form of Business Structure This step is significant because monetary and permit authorization differs depending on the legal structure of a business., One will require to accurately document the business name with the state or county while settling on a legal structure. There are numerous legal options for designing the business structure. Assumed the legal inferences when choosing the business structure, business ventures proprietors should constantly seek the counsel of an expert such as a tax consultant, auditor and/or attorney to confirm all legal requirements are provided before selecting a form of business structure. Certain law firms offer resources for businesspersons seeking legal counsel (McConnon, 2015). When initiating a business, one must determine the type of business entity to venture in. The method of business controls the amount of form-filling one have to file, the private liability concerning finances into your business and the taxes that the business has to pay. If one owns the business wholly by oneself and decides to be accountable for all obligations and debts, one can register for a sole proprietorship. A sole proprietorship, as its name implies, denotes that the owner is entirely accountable or liable for the business. Register the Business To develop a certified documented business entity, one must register with the government or the state. If one is registering as a corporation, the most important thing youll need includes the name, stock details, corporate structure, business purpose and other details concerning the company. Else, one will just require registering the name of the business, which can be the legal name or invented “Doing Business As” name in the case of the sole owner or the name one has made up for the business. The sole proprietor may take necessary steps to patent the business name for additional legal protection. Registering a “trade name” name or “Doing Business As” is only required if one name of the business something apart from the individual personal name or the names of your partners (McConnon, 2015). Source of Capital Every start up business requires initial capital funding. Business venture needs the finances to purchase assets to establish themselves and deliver working capital until they break-even, while current companies often look for expansion capital or change. The sources businesses acquire capital are wide-ranging, from venture capital and angel investors businesses to family members. Though, each case scenario comes with its particular pros and cons and each is well-matched to particular sort of businesses than others (Brown, 2015). Before venturing to the search for capital funding it is important you precisely evaluate the sum of money the business require. The lowest risk opportunity for developing capital is to basically figure out what one requires from personal savings or capitals. Securing funds from an investor will possibly need one to surrender equity shares in the business and a level of control in ownership. Borrowing funds from a financier will lead to charging of interest rate, which is principally money down the drain as far as the business is related. If at all promising, one should evaluate whether you can raise funds through selling undesirable resources or basically reorganizing the initial saving and costs over time to accomplish the capital objectives (Brown, 2015). Types of Financial Sources for a Business Venture Personal Savings -The first source to search for funds is your personal savings or equity. Personal sources of finance can comprise of early retirement funds or profit-sharing, cash value insurance policies or real estate equity loans. Life insurance policies - A customary feature of numerous life insurance policies is the proprietor’s ability to loan against the cash worth of the rule. However, life insurance policies does not possess cash value, the money can be transferred for business requirements if need be. It takes approximately two years for a policy to mature adequately for borrowing cash value. One may loan most of the cash available in the policy. The finance borrowed will minimize the face worth of the policy and in the case of demise. The amount borrowed has to be reimbursed before the beneficiaries of the policy get any disbursement (Brown, 2015). Friends and Relatives - Initiators of a business venture may search for private fund sources such as family or friends. It may be in the form of equity funding in which the relatives or friends get a proprietorship interest in the company. Nevertheless, these funds should be made with the same structure that would be employed by external investors. Venture Capital-Venture capital denotes that funding comes from businesses or people in the company of funding in young, confidentially held companies. They offer venture finances to fresh businesses in return for a share capital of the new business. Startup capital firms typically do not want to partake in the preliminary funding of a business except if the business has administration with established track documentation. Normally, they opt to capitalize on business that have received a substantial amount of equity funds from the owner and are already profitable (Brown, 2015). They also choose businesses that have a viable advantage or a powerful value proposal in the system of a trademark, an established demand for the brand, or a very special and viable concept. Venture capital stockholders frequently take a hands-on methodology to their investments, demanding demonstration on the board of directors and often the employing of executives. Venture capital financiers can offer noteworthy guid­ance and business counsel. Nevertheless, they are searching for valuable profits on their funds and their goals may be at cross devotions with those of the owner. Finances from venture capital are frequently concentrated on short-term goals. Financiers of venture capital are typically focused on forming an investment portfolio of companies with high-growth probable subsequent in high rates of profits. These investments are frequently high-risk funds. They may search for yearly profits of 25 to 30 percent of their general investment portfolio (Brown, 2015). Intellectual Property Intellectual property is a term used to denote a broad range of types of property. Intellectual property is not entirely different from the sort of property that businesses transact with every day to day life, such as, personal property (personal car, your television) or real property (individual house and the individual land). One can possess it, one can resell it and one can lease it out.  Nevertheless, very much distinct from real property or personal property, intellectual property is not a physical thing that you can perceive or touch.  Contrasting to real or personal property, intellectual property can be categorized up over and over again without shrinking its value.  Trademark A trademark is a word, name, phrase, slogan, design, image, logo, or symbol integrations of any of these, which is employed by an individual or a business (or government) to classify and differentiate its services or products from those of others, and to specify the origin of the products sold.  This is what is referred to "brand name" is one sort of trademark.  A trademark is a term or symbols that are employed by a business owner or manufacturers of products that serve to distinguish and identify the products of that owner from those of all others. The trademark security comes up automatically upon the utilization of the trademark in this particular sole proprietorship business. Nevertheless, as with trademarks, copyrights may be listed with government authorities. Taking this procedure has the funds for the holder of the trademark much better protection than it would be accessible in the scenario where the trademark is not registered (Wto.org, 2015).   References Fallon, N. (2015). How to Start a Business: Step-by-Step. BusinessNewsDaily.com. Retrieved 21 May 2015, from http://www.businessnewsdaily.com/4686-how-to-start-a-business.html M. Brown, C. (2015). 6 Capital Funding Sources for Minority Businesses. Inc.com. Retrieved 21 May 2015, from http://www.inc.com/guides/201105/6-capital-funding-sources-for-minority-businesses.html McConnon, J. (2015). The University of Maine - Cooperative Extension Publications - Bulletin #3008, Capital Sources for Your Business. Umaine.edu. Retrieved 21 May 2015, from http://umaine.edu/publications/3008e/ Wto.org,. (2015). WTO | intellectual property (TRIPS) - what are intellectual property rights?. Retrieved 21 May 2015, from https://www.wto.org/english/tratop_e/trips_e/intel1_e.htm Read More