Unit 2 Individual Project

By: Amanda Frazier
When starting a new business you must consider the fact that you need
an executable plan. Better known to most people as a business plan. A
business plan takes all the aspects of starting a business and identifies
what it is exactly that you business is. A business plan will help you see
ahead-unforeseen problems, how to make good business decisions, and gain
and manage resources for products or services needed. Other things that
might appear on a business plan are funding, credits from your suppliers,
marketing, and possible growth in the future.

Some sources for funding a new business would include credit from
your suppliers, loans, personal savings, friends and family, and even
grants. If you decide that a loan is the best way to start you business you
better have a solid business plan to present to potential lenders. There
are two types of financing that are available to people trying to start a
business on a loan. The first is equity to debt, if you have a high ratio
of equity to debt, you should consider debt financing. On the flip side if
you have more debt than equity you should increase the amount you have
personally invested and consider waiting on a loan. You could always
consider angel investors and venture capital firms. These firms have been
set up so that they may invest in your business but in doing so own a part
of your business or in exchange for the equity your business has.

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Some of the legalities a new business may face include licenses
and/or permits. Most states will require that a new business becomes
registered with a business name, and if a service is being performed you
may have to acquire permits through out the life of you business. You may
also have to comply with business laws and regulations. These may include
choosing the correct business structure to zoning codes. When a small
business gets into a crisis it is very important to know the laws and
regulations for the area and you may have to go as far as hiring a lawyer.

When you are choosing the correct business structure for your
business you have to consider several aspects. For instance, if you are a
married couple trying to start a business, will it be a sole proprietorship
under one person’s identity or will you go with a partnership. If you
decide to become a partnership where you both are investing time and money
then you should consider the following. How is the business going to be
ran? Well if it is a general partnership where you both divide the
management and responsibility then you should use that. But if it is going
to be a trouble to your marriage then maybe you should consider putting
some aspects of the responsibilities and management and profits in a
contract. In this case you would still be a general partnership but would
have a contract that would outline how certain circumstances would be
handled and keep you from fighting on a regular basis and the business from
failing.

When thinking of starting a business, consider everything. Will
funding and loans be a problem? Will marketing aspects cause you to obtain
more competition that you are ready for? Or will the family business be a
good idea based on you marital liabilities? Will there be enough demand for
the product or service that you will be providing? When these questions can
be answered with no problems or arguments then sit down and draw up your
business plan. Once that is done you are on your way to creating a new
world or discovery and profit.

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