| Not sure how to start a small business? This guide will | | | | into business. Some of the most common reasons for |
| offer you some useful tips on the basic requirements | | | | starting a business are: |
| of starting a small business. | | | | You want to be your own boss. |
| Initially, there are two types of businesses available to | | | | You want financial independence. |
| you, Sole Trader or Partnership. Both are explained | | | | You want creative freedom. |
| below: | | | | You want to fully use your skills and knowledge. |
| Sole Trader: | | | | Next you need to determine what business is \"right |
| This is the easiest and least costly way of starting a | | | | for you.\" Ask yourself these questions: |
| business. A sole trader can be formed by finding a | | | | What do I like to do with my time? |
| location and opening the door for business. There are | | | | What technical skills have I learned or developed? |
| likely to be small fees to obtain business name | | | | What do others say I am good at? |
| registration. Lawyer\'s and accountant fees for starting | | | | How much time do I have to run a successful |
| the business will be less than the other business forms | | | | business? |
| because less preparation of documents is required and | | | | Do I have any hobbies or interests that are |
| the owner has absolute authority over all business | | | | marketable? |
| decisions. | | | | Then you should identify the niche your business will fill. |
| Partnership: | | | | Conduct the necessary research to answer these |
| There are several types of partnerships. The two | | | | questions: |
| most common types are general and limited | | | | Is my idea practical and will it fill a need? |
| partnerships. A general partnership can be formed | | | | What is my competition? |
| simply by an oral agreement between two or more | | | | What is my business advantage over existing firms? |
| persons, but a legal partnership agreement drawn up | | | | Can I deliver a better quality service? |
| by a lawyer is highly recommended. Legal fees for | | | | Can I create a demand for my business? |
| drawing up a partnership agreement are higher than | | | | The final step before developing your plan is the |
| those for a sole trader. A partnership agreement could | | | | pre-business checklist. You should answer these |
| be helpful in solving any disputes. However, partners | | | | questions: |
| are responsible for each other\'s business actions, as | | | | What business am I interested in starting? |
| well as their own. | | | | What services or products will I sell? |
| Useful Information: | | | | Where will I be located? |
| Starting and managing a business takes motivation, | | | | What skills and experience do I bring to the business? |
| desire and talent. It also takes research and planning. | | | | What will I name my business? |
| To increase your chance for success, take the time | | | | What equipment or supplies will I need? |
| up front to explore and evaluate your business and | | | | What insurance coverage will be needed? |
| personal goals. Then use this information to build a | | | | What financing will I need? |
| comprehensive and well thought out business plan that | | | | What are my resources? |
| will help you reach these goals. | | | | How will I pay myself? |
| The process of developing a business plan will help | | | | Having worked your way through the above questions |
| you think through some important issues that you may | | | | should have given you an indication of whether or not |
| not have considered yet. Your plan will become a | | | | you still want to go into business. If you have decided |
| valuable tool as you set out to raise money for your | | | | against, then at least you have learnt something. If you |
| business. It should also provide milestones to gauge | | | | are going ahead with your venture then congratulations |
| your success. | | | | and have a successful business. |
| Before starting out, list your reasons for wanting to go | | | | |