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The primary concerns when first starting your business are; financing and planning.
A business plan for a new business does not need to include the names of the prospective lending companies, one of the drawbacks of using venture capital is that venture capital firms may ask for a high stake in your business.
For a market to exist there must be potential buyers who have a willingness and the resources to buy. Why do incubator facilities continue to remain very popular with start-up businesses?
By providing essential services to entrepreneurs, they have a very strong success rate. Why do experts agree that small-business management and large-business management are similar in practice? Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.
Which of the following is a false statement about small business?
The first job for most Americans is unlikely to be in a small business.
Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?
Other things to consider include:
1 Target Customer
Having a service or product to sell is not gonna make you profitable if you do not have customers who will buy it.
If you plan to start a business and you know what to sell, before you begin, study if there is a market for it. Identify who your customers are. Remember the saying, a product or service for everybody is a product or service for nobody.
2. Location
In many business events I’ve attended, I always hear this advice “location is everything”. “Location, location, location”.
Make sure you identify or look for the best location for your business. Your business must be seen by your target customer or at least near them.
3. Formation
Once you’ve identified what to sell, who to sell it to and where to sell it, now think about how you’ll form the business. You can choose on sole proprietorship, partnership or corporation.
Single proprietorship – you’re the sole owner of the business.
Partnership – you can divide the business with another person(s) which you will call partners. You need at least two people to form partnership.
Corporation – you can register as One-Person Corporation (OPC) or divide the business with two (2) or more individual.
4. Capital
Capital is the amount or value you need to put in the business to get it started and operating. It can be cash or non-cash. To know how much capital you need, list down all the possible spending you need to make to start and operate, such as assets to purchase, renovation, lease payments, operating expenses etc.
5. Asset Requirements
When starting a business, plan the assets that you’ll need to operate. This may include the following example: computers, equipment, furniture, vehicle, etc. List down not only the item but also the quantity and price.
6. Lease, Renovation and Improvements
Next item to consider is if you will rent out a space. When renting, normally lessors require advance rent and security deposits which is equal to three (3) to six (months) of monthly rent. Also, rental space are usually bare and requires renovation and improvements. Consider these costs in your business plan.
7. Suppliers
Identity potential suppliers needed to produce the service or goods you will sell. Consider their price, location, reliability and operating hours.
8. Operating Expenses
Identify and list down all the expenses or spendings you need to operate the business such as salary, rent, office supplies, utilities, etc. Consider the monthly costs in your business plan. This step is also important in your capital requirement because normally you have to keep at least six (6) months to one (1) year of monthly spendings as capital.
9. Hire People or Outsource
In my experience, people management is one of the toughest job of business owners. This may be the reason why outsourcing is in demand. If you plan to start a business, include in your consideration if you will hire people or just outsource it. If you decide to hire, consider the salary and other government regulations you need to comply with such as DOLE, SSS, PHILHEALTH and Pag-ibig. If you consider to outsource, consider the expertise and reliability of the company you will outsource to.
A business plan for a new business does not need to include the names of the prospective lending companies, one of the drawbacks of using venture capital is that venture capital firms may ask for a high stake in your business.
For a market to exist there must be potential buyers who have a willingness and the resources to buy. Why do incubator facilities continue to remain very popular with start-up businesses?
By providing essential services to entrepreneurs, they have a very strong success rate. Why do experts agree that small-business management and large-business management are similar in practice? Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.
Which of the following is a false statement about small business?
The first job for most Americans is unlikely to be in a small business.
Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?
Other things to consider include:
1 Target Customer
Having a service or product to sell is not gonna make you profitable if you do not have customers who will buy it.
If you plan to start a business and you know what to sell, before you begin, study if there is a market for it. Identify who your customers are. Remember the saying, a product or service for everybody is a product or service for nobody.
2. Location
In many business events I’ve attended, I always hear this advice “location is everything”. “Location, location, location”.
Make sure you identify or look for the best location for your business. Your business must be seen by your target customer or at least near them.
3. Formation
Once you’ve identified what to sell, who to sell it to and where to sell it, now think about how you’ll form the business. You can choose on sole proprietorship, partnership or corporation.
Single proprietorship – you’re the sole owner of the business.
Partnership – you can divide the business with another person(s) which you will call partners. You need at least two people to form partnership.
Corporation – you can register as One-Person Corporation (OPC) or divide the business with two (2) or more individual.
4. Capital
Capital is the amount or value you need to put in the business to get it started and operating. It can be cash or non-cash. To know how much capital you need, list down all the possible spending you need to make to start and operate, such as assets to purchase, renovation, lease payments, operating expenses etc.
5. Asset Requirements
When starting a business, plan the assets that you’ll need to operate. This may include the following example: computers, equipment, furniture, vehicle, etc. List down not only the item but also the quantity and price.
6. Lease, Renovation and Improvements
Next item to consider is if you will rent out a space. When renting, normally lessors require advance rent and security deposits which is equal to three (3) to six (months) of monthly rent. Also, rental space are usually bare and requires renovation and improvements. Consider these costs in your business plan.
7. Suppliers
Identity potential suppliers needed to produce the service or goods you will sell. Consider their price, location, reliability and operating hours.
8. Operating Expenses
Identify and list down all the expenses or spendings you need to operate the business such as salary, rent, office supplies, utilities, etc. Consider the monthly costs in your business plan. This step is also important in your capital requirement because normally you have to keep at least six (6) months to one (1) year of monthly spendings as capital.
9. Hire People or Outsource
In my experience, people management is one of the toughest job of business owners. This may be the reason why outsourcing is in demand. If you plan to start a business, include in your consideration if you will hire people or just outsource it. If you decide to hire, consider the salary and other government regulations you need to comply with such as DOLE, SSS, PHILHEALTH and Pag-ibig. If you consider to outsource, consider the expertise and reliability of the company you will outsource to.