How to Start a Business Most people dream of one day owning a large corporation of their own and making a bundle of money from it, but there are certain steps that must be taken in the successful completion of owning a business. When one decides that he or she would like to start their own business, one must ask themselves three basic economic questions; one, what to produce, two, how to produce, and three, for whom to produce? One must have each question fully answered in order to begin their venture into the world of entrepreneurship. Also, it is vitally important for one to fully understand every aspect of the product he or she plans to market. Knowledge is the key to success. After one has successfully answered the three basic economic questions, one must formulate a business plan.
There are several steps to a business plan, each just as important and should not be overlooked in the process of starting a new business. First and foremost, one must ask, who are the potential customers? One must ask this question because if the product which is going to be sold is used by only a small percentage of people, it may not be worth the risk of lost revenue. As opposed to deciding who the product will be sold to, one must consider a vendor(s). It is important to find a vendor who is fair and will produce quality products which will be used to produce the product planning to be marketed. Another large factor that one must consider is expenses.
There are many expenses to take into account: employee salaries, materials and supplies, tools, advertising costs, phone bills, bills paid for an office building (rent, electrical, etc.), taxes, freight charges, a licensee, etc. As opposed to expenses, one must also consider finance. How will he or she develop funds to support starting a new business. Funds can become available through personal finance or loans from banks. Other factors to be considered are those decisions to be made within the office. First, one must assign duties that he or she will need to complete every aspect of the business=92 operations.
There will have to be a boss, salesman (phone or door-to-door), assemblymen, and so on all the way down to maintenance. This organization technique will easily assist one in determining how many employees will be needed to run the company. One must also think of a strategic place to locate the new office building. An office building in the middle of a rural town will not be nearly as successful as if it were in a metropolitan area. Also needed in the office, it will be important to have a phone system, intercom system, etc.
After one has answered the three basic economic questions and formulated a solid business plan, there are several other steps to take in starting to have the new business make money. First, the company needs to be named. A business name should be short and memorable. John’s Boats is much easier to remember than George Costanza’s Slaughter house and Junkyard of Liverpool. An entrepreneur will also need an excellent lawyer. The lawyer will be helpful in applying to the state for a licensee to market a product and he or she can be very helpful in answering any legal questions regarding the business as they arise.
After all the paperwork is taken care of, it is time to begin buying=20 and selling. The first step is buying stock in order to have an inventory. It is important to find a fair distributor with quality merchandise but low prices so that after the product is manufactures it can be sold at a higher price but one that is still fair for customers. Once an inventory is made, salespeople may begin to make sales with new clients. After a sale is made, office workers process the sale by recording it into a database or file, keeping track of money made and spent, and sending the order to people in production who assemble the order and ship it.
With the package, an invoice must be sent to verify the sale. From there, an entrepreneur must make sure the customer pays the bill and he or she must make sure to satisfy that customer’s needs to assure loyalty by the customer to its supplier for years to come. Starting a new business is very risky. There are many factors to be considered and every aspect must be thoroughly thought out. By answering the three basic economic questions, making a successful business plan, and taking care of all the basic office operations, anyone can be successful in the world of entrepreneurship. There is virtually no limit to how lucrative a company may be when given a chance.