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4 things that you must do before you set-up a business

If you are planning to set-up a new business, then you must realize that it takes time,skill,discipline, and hard work to be successful. Also, there are 4 things that you must consider before you dive into and decide on what business you will set-up.
how to start up a business 
1. Before starting out, you must first know the reasons why do you want to start a business. People have different reasons, but all of them fall into three things:
  • Reason # 1 – You want to be your own boss.
  • Reason # 2 – You want to use and practice your knowledge and skills.
  • Reason # 3 – You want financial independence.
2. Analyze and decide what business is “right for you.” Ask yourself these questions:
  • What technical skills have I learned?
  • What hobbies or interests do I have which is marketable.
  • What do others say I am good at?
  • DO I have enough time to run a business?
3. Identify the niche of your business. Do a necessary research. You can use the following questions:
  • Who are my competitions?
  • Can I deliver a quality service if I build this business?
  • Am I fitted or qualified in this business?
  • Can I create a demand for this business?
4. You must develop a business checklist. A checklist will be your guide before you make your final decision. Your checklist must answer these questions:
  • What will be the name of my business?
  • What kind of insurance should I use?
  • What products will I sell?
  • What services will I provide?
  • Where will be my business location?
  • Do I need a financing?
  • What are the legal structures of my business?
  • How many employees do I need?
  • What kind of business will operation will I create?
  • Do I have a short business plan and long term business plan?
  • How much capital start-up do I need?
  • etc.
In our country, there are 4 types of business organization that we can choose. The first is sole proprietorship. This is the easiest and doesn’t need lots of capital to start-up. You can start this business even you do not have a partner. As a business owner, you have the sole authority to your business. The second is partnership. There are several types of partnerships. The most common are general partnership and limited partnership. A partnership agreement should include the following:
  • type of business
  • division of profit or loss
  • duration of partnership
  • partners compensation
  • amount of equity invested by each partner
  • dispute settlement clause
  • distribution of assets on dissolution
  • restrictions of authority and expenditures
  • provisions for changes or dissolving the partnership
  • settlement in case of death or incapacity
  • amount of equity invested by each partner
The last type of business is corporation. This business may be comprised without legal assistance, but it is always recommended to have legal advice. Control is exercised through board meetings and stockholders’ meeting.