FRIDAY, NOVEMBER 12, 2021
Let's talk a little about what a small business is
and some of the steps you will need to take to start your own.
Small business is a phrase that is used every day by millions of
people across the globe. This is because during the past decade
the rise of small business has become more substantial than in
any other decade prior. This is largely due to the growing number
of services that are offered to small business owners, to make it
possible for them to keep their business running.
There really isn't any guidelines for when the term small business
is used, however it is simply defined as a business which has a
small number of employees. How few employees is debatable,
and the definition of when a business changes from a small
business to a bigger business differs both by country as well as
industry. This number is generally less than 100 employees.
As I've already explained small businesses due to their nature, are
usually sole proprietorships, partnerships, or privately owned.
Common in many countries, smaller businesses, tend to be
related to: accountants, restaurants, guest houses, photographers,
small shops, hairdressers, tradesmen, solicitors, lawyers, small-
scale manufacturing etc.
Small businesses are often located in private homes, for two main
reasons. The first is because it is cost-effective and in most cases
convenient. The second reason is that there are several benefits
with taxes, etc by having your business in your home.
Running a small business is an exciting opportunity, a great way to
introduce yourself into the business world, and to gain business
But, before you spend a lot of money on your small business it's
important that you know the facts, so take some time, go to the
library or get on the internet and research the basics. If
possible talk to a few experts or other small business owners so
that you can be sure that entrepreneurship is right for you.
Here is a quick list of some things that you can do to get started;
- Conduct a feasibility study of your business idea.
Describe what your typical customer, your product and your
competitors. Who will your suppliers be? What will you charge for
your product? How will you market your product? These are just a
few of the questions you need to answer.
- Write a complete business plan.
Do this using the information you gathered from your feasibility
study. This is vitally important and often an overlooked step that
needs to include a description of your company, its goals,
competitors, market, financial information, and of course, how you
intend to meet your goals.
Get your financing in place.
There are many ways to finance your business, from your own
savings to personal credit cards to bank loans. If you need credit,
know your business plan from front to back and maybe even
Decide what kind of structure your company will have.
From a legal standpoint, there are three basic choices, sole
proprietorship, partnership and incorporation, each with
advantages and disadvantages.
- Choose a name for your company and check on name
Naming your company is highly individual, but it’s the first thing
associated with your business, so choose your name carefully.
You'll need to do a NUANS (Newly Upgraded Automated Name
Search) report, which checks your name choices for uniqueness
against a database of other business names. A reserved name is
valid for 90 days.
- Determine whether there are special permits or licenses that
your business will need. Check with county court house or your
local tax collectors office for the proper forms.
- Set up your business bank account and record-keeping system.
Your banker will need to see your business documents, and you
may want to set up more than one account so you can keep
track of your finances better. Record-keeping is required, and can
be done manually or with a computer program.
- Purchase insurance.
There are many different types of insurance, but most probably
your company will need at least one. For example, if you’re going
to have employees, you need to have workers compensation
- Decide where your business will be located.
Lease your business’ space. Alternatively, you could choose to
start your business from home if it’s feasible. There are
advantages and disadvantages to starting your business from
home. You have tax write-offs for example, but sometimes your
- Purchase supplies and office equipment. You'll need too many
things to list here, and of course, each business has different
needs. You might need a fax machine and printer. You'll probably
need a computer. You'll definitely need paper, pens, pencils and a
Being armed with the facts and information you need from the
beginning is a giant step towards ensuring the success of your
small business. So take your time and do your research.