In economics, business is the social science of managing people to organize and maintain collective productivity to achieve specific, creative, and productive ends, usually to generate revenue.
The etymology of “business” refers to the state of employment, both in the context of the individual and of the community or society. In other words, being employed means doing economically viable and profitable work.
Starting and running a business requires motivation and talent. It also requires a lot of research and planning. While initial failures aren’t always disastrous, gaining an advantage requires additional specialization, discipline, and hard work.
Adequate time must be allocated beforehand to explore and evaluate the business you are interested in. This information is needed to create a comprehensive and contemplative business plan to help you achieve those goals.
A business plan is a detailed blueprint that foresees the future of an ambitious company, usually designed to attract capital investment and profits. This is the first tool to be developed by thinking through some important issues that you might not otherwise consider. Your plan will become valuable as you set out to raise money for your business, and it will provide milestones to measure your success.
There are many important points to consider when starting a business. First, assess your reason for wanting to get into business. Next, determine the right and appropriate company, taking into account the existing technical skills. specializations; activities involved; allotted time; and marketability of interests. Then identify the personal business niche. The final step before developing your plan is the pre-business checklist, which includes skills and experience, legal form to use, business record keeping, insurance coverage, resources, location, compensation, and funding.
The decision on how to set up the company is also crucial. The most common forms of business are (1) sole proprietorships – unincorporated persons, (2) partnerships – two or more persons conducting a trade, (3) corporations – potential shareholders exchanging money, property, or both for the company’s equity. and (4) S Company – a qualifying domestic company. A limited liability company (LLC) is a relatively new corporate structure permitted under state law.
There are four different sections in a business plan body. These are (1) Business Description, (2) Marketing, (3) Finance, and (4) Management.
The business plan is a tool with three basic purposes: (1) communication – used to attract investment capital, secure credit, persuade employees to hire, and help attract strategic business partners; (2) Administration – helps you track, monitor and evaluate your progress; and (3) Planning – guides you through the various stages of your business.
Proper management should be applied to keep a business alive. Adequate funding, knowledge and planning should be provided. In terms of marketing, the business needs to attract and keep a growing base of satisfied customers. It is also important that proper strategic planning and advertising is employed.
Copyright 2007 Ismael D. Tabiye