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