The Ways to Establish a Small Business Essays

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The Ways to Establish a Small Business

Small business is defined as an independently or privately owned business, usually in the form of a sole proprietorship or a partnership and is not dominant in its field (U.S Department of Treasury, 2010). It is limited to have no more than 50 employees or 1500 employees for manufacturing industries, and a turnover less than 5.6 million pounds (HM Revenue & Customs, n.d.). Throughout the years, small businesses have grown significantly, with over 543, 000 new businesses start each month (Nazar, 2013). It is undeniable that almost everyone wants to start and have their own business, even a small one. Who would not want to have the pride of having built something of their own and profits flowing into
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Why not start a business based on a need you yourself have, that is not properly addressed by existing suppliers?” If one fails to do this, the internet can be a good help as it provides good websites that may stimulate creative ideas. Good entrepreneurs always have general ideas of what business they are going to start, whether it is an innovation or an improvement of the existing products. The general ideas must then be narrowed down into a specific idea, by raising specific questions. (Schawbel, 2012). For example, what products or services will the business provide, how to manage the products, where will they get the materials or supplies to make their products and to whom are the products intended to.
The questions can be used to make a business plan. By answering the questions, the information about the necessary tools, machines and budget needed to setup the business can be assessed. This will enable the entrepreneurs map out how to start and operate the business. A business plan includes the business’ description such as the field in which it operates in, the management structure such as its layout or management structure and product line which is the product or services it is going to produce (SBA, n.d.). It provides a written guide to run the business for the next three to five years.

Starting any kind of business always requires money, whether it is from savings, bank loans, relatives, partners or even investors. The most important part

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