New Businesses: Challenges & Opportunities in the Age of Change - Essay Sample

Paper Type:  Essay
Pages:  5
Wordcount:  1236 Words
Date:  2023-01-16

Introduction

Finding a consistent well-paying job has been getting tougher in recent years. A series of new and great business opportunities are present to the public. These chances only cash in if one runs a well-rounded business plan. However, opening a new business can be a formidable task. There are several issues a new entrepreneur is prone to experience. These issues originate from financing, legal issues, marketing, product development, human resources, intellectual property, among others. All the things they are anticipated to know to overwhelm the majority of entrepreneurs. As an entrepreneur, one needs to organize and manage a company/business taking into consideration risk for the sake of profits with abilities to operate a business. To run a business effectively in a period of a year, one needs competency skills to get a competitive advantage in the 21st market. These papers discuss simple steps, procedures, and other key consideration needed to run a business for a whole year having selected ownership options.

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Ownership Options

One of the primary decisions should be made a business owner regards the form in which he/she will assume business ownership. One can become a business owner in one of three ways by purchasing a new an existing business, by obtaining a franchise, or by starting a new business (Read, Sarasvathy, Dew, & Wiltbank, 2016).To make a correct choice one needs to evaluate keenly advantages and disadvantages of each option. A perfect form for the founder is the first step to take the course.

Steps to Follow

According to Burns (2016), the first step in starting a new business is the establishment of an idea. The idea has to have to link with want one needs to produce/sell or type of firm they desire to own. Besides, developing an idea, it is required to have cash saved up, and collect additional assistance help from banks to offer one a loan. The formulation on ideas is essential since it offers a clear mental picture and it is helpful since a business that it is anticipated to last for a year does not need to provide too much profit, so having an idea may be helpful. One key feature the developed idea needs to have is an achievable goal that can be achieved within a period of one year. Therefore, its short-term goal needs to be conducted weekly to meet its objective within the shortest time possible. Setting short-term goals within a shorter period help to achieve long-term goal in a shorter period.

The second step needs to be followed involves coming up with an excellent business plan. A business plan serves as a blueprint of each aspect of a company to be set up. It entails the following sales, marketing, location, and advertising strategies. In other words, the business plan assists a founder to break unlikelihood down into significant pieces such as the expense budget, sale projection, milestones, and tasks. The demands usually become obvious as soon as it is recognized that there are no clear budgets of money needed and what time is needed, without laying out anticipated sales, time of payments and expenses. That is for all startups, whether or not they are required to persuade banks, investors, or friends, and family to sacrifice their money and fund the new venture.

In this circumstance, the business plan is stressed to provide details on what kind of business it will venture into, how it is going to achieve its goals and most significant consideration why the creator is the right person to do the job. In addition, a startup business plan also details the quantity of cash desired to get the business off the ground and through the primary development stages, which will result in profitability.

Legal Proceedings

The next step in setting up a company is to follow the legal proceedings. Any company/business that is new needs some paperwork. Paperwork is documentation that majorly accompanies transaction or shipment. The Small Business Administration claims that the state government where the business will be developed may need a business certificate for opening company bank accounts or filing taxes. For instance, in some state, a contractor business will be required to secure a general supplier's license to start up. Hence, one needs to contact his/her state department of labor to obtain information on how to get a business certificate for the company to be opened and incurred regarding any other state certification procedure required. Further, it is mandatory to discuss insurance needs that will suit the company with the agent for a period of one year. Since personal auto and homeowners, insurance may not cover business activities. The company will need liability insurance to cover the company from lawsuits and damages.

Another legal requirement needs to be attained is to choose a business entity that implies a brief outline of the fundamental type of legal business configurations present in the state business will be open up. A legal representative and accountant are ought to be present prior determination of what kind of business entity to get it (Burns, 2016). The common entity types are limited liability partnership, sole proprietorship, limited partnership, general partnership, limited liability Company. These entity types are vital because legal documentation is needed for the process of owning a firm.

Apart from following legal steps and procedures, a creator needs to place into consideration issues entailing finances. The business plan will provide information concerning how much money needed to start up a company, amount of profit the company will yield within a year, and maintenance cost required running the operation at the company until time desired. As a plan is being made for the firm, also one is needed to plan to the finances accordingly. Finances for the project can be sourced from a variety of sources, including paychecks from one's current job; financing assistance can come from personal resources, lending institutions or private investors.

Pick a Location

Another thing needs to be done is to select a location for the company. Since the company is not meant to last for many years, a location that is cheaper can be the best to establish a company of this nature. A good location can be at home. With this kind of location, only a few considerations need to be sorted before getting started. One will need to inform the town zoning board to evaluate if the founder's home can be utilized as a commercial location. One needs to be flexible with the location since the place that one might view ideal for the firm local business laws may hinder one from locating the business in the site chosen. For instance, there may be a law in the community where aimed to locate the company that forbids selling alcohol within a predetermined distance from a school. That law may avert a founder from putting sports bar around the corner from the local high school. Above all, one is needed to sign a lease that he/she can pay swiftly.

Conclusion

In conclusion, starting a business takes determination, talent, persistence, and, handwork. Besides, it desires a lot of research and planning. Before starting a business that last for a year, it is good to appraise one's strength and weakness to weigh whether it will run effectively until 12 months elapses.

References

Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.

Read, S., Sarasvathy, S., Dew, N., & Wiltbank, R. (2016). Effectual entrepreneurship. Routledge.

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New Businesses: Challenges & Opportunities in the Age of Change - Essay Sample. (2023, Jan 16). Retrieved from https://proessays.net/essays/new-businesses-challenges-opportunities-in-the-age-of-change-essay-sample

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