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How to Start a Business

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One of the best known entrepreneurs, investors and business coaches, Kiyosaki, in his book Rich Dad Poor Dad (2002), wrote, "Business is like a wheel barrow, nothing ever happens until you start pushing" (p. 84). The truth is that most people are afraid to take the risk of starting their own business; it is safer for them to find a job and to work for the established wage, social guarantees and insurance policy the whole life. But if you decided to take a chance and to start a business, do not hesitate and do not be afraid of failures, because they are an important part of the future success. The steps below may help in the start-up.

Part-time business means any kind of activity that one can do after the main work and that brings profit. It can be anything, from Internet trade to pet sitting and walking.

If it is a unique business idea of your own, you have to protect its intellectual property.

Franchise and ready business are both good options for investments; they are already established and developed, so the risk is minimal.

The second step in starting a business is writing a business plan. A good written business plan is a living outline that was born to help you to establish, develop and manage your company; it is growing up with your company and it is changing as the company is prospering.

The third step is defining how the business will be financed. Depending on the size of the business, there are such sources of financing as: bank funding and business bank loans, overdrafts, credit cards, loans from friends and family, private equity or private investment, angel investment and small business grants.

Limited Liability Company is a legal form of company that gives limited responsibilities to its owners. C-Corporation is a legal entity that is taxed apart from its owners. C-Corporation is a legal entity that exists separately from its shareholders and directors. A partnership is an agreement between parties to cooperate. Partnerships can be of two different types: limited partnership and general partnership. The main distinction between them is that in general partnership each member (partner) is responsible for any liability, debt or damage. In limited partnerships there is usually one responsible (general) partner who has full responsibilities on managing the company. Others are called “limited partners” and they do not incur liability of the day-to-day operation of the company. Sole Proprietorship is an individual who owns and runs a business. He or she is personally responsible for the business obligations. S-Corporation is much like C-Corporation. The main difference is that in S-Sorporation all income and losses are divided proportionally between the owners.

The fifth step in building the business is obtaining licenses if they are needed. Better to do it before starting to work in order to eliminate the problems with the law later.

The next very important step in starting a business is creation of a website. People must get know about your business and the best way to inform them is using Internet. Even before you open your first shop or agency, the website must already work. After creating a website, the decision about the shop must be made. And here you must take into consideration 4 Ps: price, product, place and promotion. Only using them all together the most success can be reached. There is no need to explain how important price and product are. Without a proper place your product cannot be sold, and without good promotion nobody will know about your product. By the way, good done website is really significant in promotion part.

After the business is established and registered, the website set up and the shop opened the question about employees rises. Employees must be hired considering the size of the business, the products and the legal structure of the company. But for any business to be successful, two employees must be hired in the first place: the lawyer and the accountant. Most companies already have them in their staff even before establishing.

The steps listed above are the main steps in starting the business. Do you remember the old adage: No pain, no gain? It is old, but still quite applicable in the business industry. In fact, the business is a commitment of money, time and effort. However, nothing ventured, nothing gained. Therefore, make sure you are doing the right thing to start your own business. And do not forget these four important elements: the great business plan, the proper business structure, equal attention to the 4 Ps and qualified employees.

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