Start a Bussiness
The decision to purchase a business of your own is not an easy task. There are many things to consider before the final decision is made. First of all, exactly what do you want to accomplish? To make millions of dollars, right? Or is it to have the freedom of being your own boss? Whatever the reason, you must be sure that it is something that you are ready to devote an exorbitant amount of time and energy into and that it is something that you really want. Otherwise, you might be stuck doing something that you hate. If you are ready to commit then you must ask yourself just how far will that commitment extend. How much of your own time, energy, and money are you willing to sacrifice?
After the decision is made, the acquisition of a small business can be summed-up into nine steps, in which most will be elaborated upon later. "These are the nine steps to any business acquisition, regardless of its size or industry:
1. The search, locating a business available for sale.
2. Identifying alternative candidates.
3. Valuing the business.
4. Negotiating a price and terms.
5. Investigating the company.
6. Preparing the business plan.
7. Sourcing the financing.
8. Preparing the closing documents.
9. Managing the transition period." (Tuller, 10)
Some considerations that cannot be avoided when purchasing a small business
include: the question of needing a partner, the current economic factors, considering alternate locations, and developing a tax strategy. When debating whether or not a partner is needed or wanted, you need to know if you're going to need additional equity as well as sharing the risk of failure. For these reasons, a partnership seems to be a great idea, but there are also many cons that should be recognized. Having too many partners can alter the ease of decision-making, shared liability can cause obvious problems, and sharing profits means less for you. Added to this, getting out of a partnership can be very difficult.
Evaluating the current economic factors simply means to know what you are getting into. Be sure to have some knowledge about the business itself and it's market. Know how to make and sell the product efficiently and in a service industry, be sure to know the current and correct way things are done-sometimes they are not one in the same.
Location is key. "Location of the target...
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...re than an hour. The key is not to worry about what you are signing, that's what your lawyer is for. After all the money spent, the time devoted and the effort put forth, the business is finally yours.
Running your own business can be very rewarding. You don't have anyone to answer to besides the government. You are in complete control. Along with this the ability to write off certain expenses is enough of a reward in itself. The effort you put forth is completely up to you. The life and death of the business is in your hands.
Bibliography
1. Fallek, Max (1994). Finding Money for Your Small Business
Enterprise-Dearborn: USA
2. Fluery, Robert (1995). The Small Business Survival Guide
Sourcebooks, Inc.: Naperville, IL
3. Horn, Thomas (1990). Business Valuation Manual
Charter Oak Press: Lancaster PA
4. Peterson, C.D. (1990). How To Leave Your Job and But A Business of Your Own
SVS, Inc. (Video)
5. Smorenburg, Michael (1998) Business Buyer's Kit Career Press: Franklin Lakes, NJ
6. Tuller, Lawrence (1990) Buying In: A Complete Guide to Acquiring a Business or
Professional Practice
Liberty Hall Press: Blue Ridge Sumit, PA
One of the challenges to start up a new business is choosing the kind of business to start.
Owning a business is very difficult. It takes hard work, determination, and knowledge. “Running a business is one of the most rewarding — and most challenging — endeavors for entrepreneurs” (Owens, 2010). My goal is to start my own business and turn it into a multi-million dollar company. Achieving this goal will be difficult, but with the help of God, I will be able to do so.
Easy and inexpensive to form: Sole proprietorship is the simplest and least expensive business structure to organize. Costs are minimal, with legal costs limited to obtaining needed license or permits.
Taking on the risk to open you own business is not a smooth, easy process; although, perseverance can take you a long way. Troy Smith made several attempts at opening restaurants independently as a sole proprietor, but it was until a small root beer stand came into his possession did he find the success he was looking form. This stand called Top Hat was about to become a parking lot when Smith realized it’s value and put his focus into making it successful, while watching this success grow Charles Pappe became interested and Pappe and Smith formed a limited partnership; whereas Smith was the general partener that made the business decisions and Pappe was the limited partner that invested money ad concentrated on sales. This differs from a
I remember my father always telling me that in order to appreciate and value the things you have you have to work for them yourself. I think the same holds true for business ventures. Having a personal interest and a personal bank account on line drives one to succeed possibly all the more than k working for a set paycheck.
...siness tax id number? Are you comfortable with putting personal assets on the line for your business? How much control do you or your partners want to have? Will the company be owned by others investors with no single owner?
Sole proprietorships are typically businesses that have one owner. There many advantages to operating a business as a sole owner. One of those advantages is that it is fairly easy to form. When operating a sole proprietorship, filing an independent tax report for your business is not mandatory. It is optional for the owner to hire employees to help run the business. The owner is in charge of making all business decisions and transactions. Sole owners have the ease of selling their business, closing it or giving it to his heirs. While opening businesses sometimes require you to obtain a business license, sole proprietorships are typically less expensive than others. Also, it is often less expensive to start a sole proprietorship.
Owning my own business allows me to have flexible hours, autonomy, establishment in the community, and a sense of accomplishment of an interest I am passionate about. I would set my hours around nine in the morning to 5 in the afternoon 4 days a week. I would be working with children and adults preforming all of the responsibilities of a dentist stated earlier. Ultimately, I can envision myself as a General Dentist fulfilling a career I
For someone with aspirations to own there own small clothing store , sole proprietorship may suit them best. An individual who seeks a business venture into law/medical may want to do a general partnership. One example would an individual who is seeking to open there own beauty shop would fit best to choose a sole proprietorship.
I would like to own my own pharmacy or boutique someday and probably with my mom as a business partner. A business cannot survive without management because management is its means of support. In this management conscious age, the significance of management can hardly be over emphasized. It is said that anything minus management totals to nothing. There is no more important area of human activity than management since its task is that of getting things completed through others. Basically if you want to own your own business, you would have to acquire some leadership skills. A business enterprise operates in a constantly changing environment. Changes in the business environment create risk and also provide opportunities for growth. A favorable and encouraging environment is essential for any business and sound management makes it possible
I am gratified to reflect on my Entrepreneurial Potential Self-Assessment. I have always enjoyed learning the concepts of running and managing a business. Personally, what I enjoy generally is implying these concepts in real life situations. Seeing the ‘real life’ effects are stimulating to me. I always saw myself running a stable/well- establish business; however, I never saw myself running my own business. For my part, I find that I do not have all the characteristics an entrepreneur should have. Therefore, the results are not surprising, but assuring of what my strengths and weaknesses are.
“Sole proprietorships, businesses owned and operated by one individual, are the most common form of business organization in the United States.” (Ferrell, O., Hirt, G. A., & Ferrell, L. (2014)) A few examples of businesses that are sole proprietorships would be: daycares, hair salons, restaurants, and flower shops. These businesses usually employee less than fifty people. Small businesses make up a large majority of businesses in the country. There are both advantages and disadvantages to this type of business. One particular advantage of a sole proprietorship is how easy it is to create and the low cost of forming it. When an entrepreneur starts their own proprietorship they must
Starting your own business can be exciting and it can become a well- rewarded experience. Being your own business includes great benefits, create your
For some people, being the boss, and which by boss I mean business owner, would be the greatest thing ever. Most think you get to pick your own hours, make the most money, and make everyone do the things you want done. Of course there is work involved and it takes work to make it but the rewards will be better owning a business that succeeds. The ultimate goal is becoming a millionaire and retiring at the age of forty and just drawing money from business production. However they really don’t understand the work it takes to make it a million dollar company. When these people are finally able to own a business they get a rude awakening. I am in no way trying to offend the typical business owner when I say, owning a business can be a challenging task that can cause many complications in your life and if you’re not careful they can change your life entirely.
I would choose a sole proprietorship because it is a very informal business structure. Unlike corporations, partnerships and limited liability companies, a sole proprietorship usually has limited legal requirements. You may have to procure professional or local licenses in minimal cases, but you don 't have to file merely for becoming a proprietor.