Business Start-Up Guide
An entrepreneur is a person who undertakes and operates a new enterprise or venture and assumes some accountability for the inherent risks. Entrepreneurship is often difficult, as many new ventures fail. In the context of the creation of for-profit enterprises, entrepreneur is often synonymous with founder. Most commonly, the term entrepreneur applies to someone who creates system to offer a product or service in order to obtain certain profit. Business entrepreneurs often have strong beliefs about a market opportunity and are willing to accept a high level of personal, professional or financial risk to pursue that opportunity. Business entrepreneurs are viewed as fundamentally important in the capitalistic society.
Entrepreneur Character Traits
John G. Burch, in Business Horizons, September 1986, lists traits typical of entrepreneurs:
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A desire to achieve: The push to conquer problems, and give birth to a successful venture.
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Hard work: It is often suggested that many entrepreneurs are workaholics.
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Desire to work for themselves: Entrepreneurs like to work for themselves rather than working for an organization or any other individual. They may work for someone to gain the knowledge of the product or service that they may want to produce.
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Nurturing quality: Willing to take charge of, and watch over a venture until it can stand alone.
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Acceptance of responsibility: Are morally, legally, and mentally accountable for their ventures. Some entrepreneurs may be driven more by altruism than by self-interest.
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Reward orientation: Desire to achieve, work hard, and take responsibility, but also with a commensurate desire to be rewarded handsomely for their efforts; rewards can be in forms other than money, such as recognition and respect.
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Optimism: Live by the philosophy that this is the best of times, and that anything is possible.
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Orientation to excellence: Often desire to achieve something outstanding that they can be proud of.
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Organization: Are good at bringing together the components (including people) of a venture.
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Profit orientation: Want to make a profit; but the profit serves primarily as a meter to gauge their success and achievement.
Startup Company
A startup company is a business with a limited operating history. While slow-growth businesses maybe be startups, investors are most attracted to those new companies distinguished by their risk/reward profile and scalability. That is, they have lower bootstrapping costs, higher risk, and higher potential return on investment. Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor or land.
Startups enjoy several unique options for funding. Venture capital firms and angel investors may help startup companies begin operations, exchanging cash for an equity stake. In practice though, many startups are initially funded by the founders themselves. A company may cease to be a startup as it passes various milestones, such as becoming profitable, or becoming publicly traded in an IPO, or ceasing to exist as an independent entity via a merger or acquisition.
The first critical and pivotal task in setting up a business is to conduct research in order to validate, assess and develop the ideas or business concepts in addition to opportunities to establish further and deeper understanding on the ideas or business concepts as well as their commercial potentials.
Guide To Starting A Business
When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for all filing requirements, the following steps have been developed to assist you in starting your business.
1. Find a Mentor. One of the best ways to insulate yourself against business failure is to find and work with a mentor, someone with business experience who can guide and assist you.
2. Business Plan. It is helpful to begin with a business plan. A business plan is a blueprint of every aspect of your business. Sales, Marketing, Advertising, Promotion and Location are just some of the aspects of creating a plan.
3. Location. It is often said that the three most important things for starting a business are location, location, location. If you would like help deciding on a location for your business, contact your local chamber of commerce.
4. Business Structure. Choose a business structure. Select a business entity type whether its a sole proprietorship, partnership, limited liability company, corporation or some other form of entity available in your jurisdiction. A legal representative and accountant should be consulted before making a determination as to the type of business entity to form.
5. Business Name. In naming a business, thought must be given not only to a memorable name for marketing purpusose. There are also state and local requirements, and you must ensure you don’t infringe upon the rights of someone else’s business name.
6. Financing. An integral component of starting a successful business is raising sufficient capital.
7. Licenses & Permits. Your next step will be to file your tax and employer identification documents. Most businesses also require licenses or permits in order to operate.
8. New Business Alternatives. You may consider purchasing an existing business or buying a franchise, both of which have advantages and disadvantages.
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