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First name: Maja
Last name: Kandic

maja.kandic@gmail.com

Beginner

How to start a small business?

31/05/2012 21:08:25

How to start a small business?

 

If you want to start a business, you will need to choose or create a business idea. While this is an obvious step, many people who want their own business don’t have an idea, just the desire to be an entrepreneur. Is it enough to start a business with desire? My 
opinion is NO, you need a passion and the best idea! When we want to start a small business, we have so many opportunities, so many ideas, but the question is which one is the best for us? 
There is so many options to start a business like : 
1. Make an own idea;
2. Buying a fracnchise;
3. Start existing business.
Once you have decided on the business you wish to start, then the real work begins! After a making an idea, there is a lot of job to do. We must go step by step, and there are four big steps which must be realized, if we want to start a business. The first step 
is the writing a business plan, and this is the most important step, because this is how you and others will evaluate your business. When seeking financing, the investors or lenders will want to read your plan before they supply you with funding. If you’re 
financing the business yourself, you will still want to have a written plan to develop business strategies and financial projections. Key element for every business plan is the marketing plan which explains marketing strategies that will be used to advertise and promote the products or services. The goal setting steps of the plan will help you to analyze the success of the business in future years and clearly illustrate the capital needed to operate the company to breakeven. When you prepare a good business plan, you 
still have a lot of work, plan is just the beginning, but every start is hard. Next step is how to finance a project? In this step money is not the only problem, how many people have money but don’t have an idea to produce that money!With your business plan in hand, you are ready to go find yourself some capital. Most small businesses have three options for financing:friends & family, investors and bank loans. Each of these options has different considerations for the business. Investors and even friends & family usually want ownership and control of their portion of the business. Bank loans burden the business with an additional expense of the loan payment, which can 
erode the business profits. As we can see, money is not the only problem in this step, we can loan from family or friends, we can use the bank credit, or we can find some finance investors for project. 
The most important problem is ownership in business. Everyone wants a guarantee for loans. Maybe the best solution when we start a small business is loan is from family and friends. But this kind of loan are very risk, because we can destroy a family if we don’t have a good plan and idea. For me, the second solution is finding investors. In this case we don’t have a risk, but we lose our idea, and for the most entrepreneur this is step like a killing ourself. On the 3th place is a bank credit, because every bank or finance institution wants a gross interest which is normal.
Third step is getting started! You’ve got the plan, the money and the enthusiasm; you’re ready, right? Not yet, as with everything you need to take the legal issues into consideration. First, you should choose a legal structure:sole proprietorship, partnership, or corporation. Your financing decisions will have an effect on what legal structure you choose. Now you can file with the state to incorporate and obtain a federal identification number. In Montenegro we call that PIB. Which is the best solution, dependes on the case. When we talk about small business the options are Sole Proprietorship or a Partnership. If we have enough money than the best solution is sole proprietorship, if we still looking for a lot of money to start our project, better solution is Partnership. Corporation is the option for bigger businesses! The last step in our starting a business is: Opening the doors.Okay, it’s time to get on the road to make some money; this of course means spending money. Where are you going to run your business? Will a home office do or is commercial space needed to service your customers? Do you need to hire employees to help you run the business? What 
are your bookkeeping needs, do you need an accountant? Finally, who could forget taxes, what taxes do you have to pay and collect? Now when your business is through the start-up phase, you can look forward to the issues of managing a small business. There are 
so many questions in this step, and the answer for all questions is DEPENDS ON THE SITUATIONS! 
We can’t find an universal answer, there is no man in the world who can do that for you, it is all in your head! You don’t want to take a risk start home office, hire your family, be a accountant, and taxes you need to pay in every case.It is all in our heads, we must go up, 
we must find the best solution with quick thinking!

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