A business known as an enterprise, agency or a firm, is an entity involved in the provision of goods and/or services to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money.
Businesses may also be social non-profit enterprises or state-owned public enterprises targeted for specific social and economic objectives. A business owned by multiple individuals may be formed as an incorporated company or jointly organized as a partnership. Countries have different laws that may ascribe different rights to the various business entities.
The business we are taking right now is a small business, an independently owned and operated business, whose owner(s) exercises close control over operations and decisions. Typically, a small business employs fewer than 100 workers and has revenues of less than $25 million. The definition of small business tends to vary. Federal securities law defines small business as a company in the United States or Canada that has less than $25 million in annual revenues and who’s outstanding publicly-traded stock is worth less than $25 million.
Before Starting a small business
Most of the Small businesses are owned and operated by a single person /small group with a high risk high gain, Jon L. Gelman points out, “establishing a business is a hectic undertaking, and the thought of obtaining coverage is easily overlooked.” Before you start the business, you have to know what are you doing, then ask yourself some of these questions to make sure you’re thinking about the right key business decisions:
Why am I starting a business? What kind of business do I want? Who is my ideal customer? What products or services will my business provide? Am I prepared to spend the time and money needed to get my business started? What differentiates my business idea and the products or services I will provide from others in the market? Where will my business be located? How many employees will I need?
What types of suppliers do I need? How much money do I need to get started? Will I need to get a loan? How soon will it take before my products or services are available? How long do I have until I start making a profit? Who is my competition?
How will I price my product compared to my competition? How will I set up the legal structure of my business? What taxes do I need to pay? What kind of insurance do I need? How will I manage my business? How will I advertise my business?
Process to Start a Business
Starting a business involves planning, making key financial decisions and completing a series of legal activities. Also, an exciting proposition, but it’s also an incredibly challenging undertaking. The resources in this section will help you learn about what it takes to start a business. Here are some easy steps can help you plan, prepare and manage your business.
Startup Capital/ Finance Your Business
In my opinion, Startup Capital is the most important for small businesses because finding small business startup loans can be a difficult experience. Having this information is important, whether you’re borrowing money from a bank, your family or from a venture-capital firm. (Venture capital investors take a percentage of your early-stage company in exchange for funding.) Find government backed loans, venture capital and research grants to help you get started.
Write a Business Plan
After your management your investment write your business plan, it is an essential roadmap for business success and outlines the route a company intends to take to grow revenues. A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.
Choose/Set a Business Location
Selection of good location is most importation for small business even you are doing online business. For some businesses, the classic advice “location, location, location” is right on the mark — location can mean the difference between feast or famine, but for other enterprises, location may be much less important than finding affordable rental space. In fact, location is almost irrelevant for some businesses.
Service businesses that do all their work at their customers’ locations (such as roofers and plumbers) and businesses that have little contact with the public (such as mail-order companies, Internet-based businesses, and wholesalers). If these types of companies can pass on rent savings to their customers and their profit margin, picking a low-cost spot in an out-of-the-way area might be an advantage.
Assistance and Training
Training presents a prime opportunity to expand the knowledge base of all small business owner who find the development opportunities expensive. It also helps you get started and expand your small business and cover all aspects of starting and running a business, from getting a loan to developing business plans and marketing strategies.
Take advantage of the several free counseling and training programs are available to assist you in starting your business. From low cost business training and free mentoring, selling to government, finding access to capital and expanding your business internationally, these partners can help get you started.
Determine the Legal Structure of Your Business
Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit, or cooperative. Selecting the sole proprietorship business structure means you are personally responsible for your company’s liabilities. As a result, you are placing your assets at risk, and they could be seized to satisfy a business debt or a legal claim filed against you.
For many new businesses, the best initial ownership structure is either a sole proprietorship or, if more than one owner is involved, a partnership. A sole proprietorship is a one-person business that is not registered with the state like a limited liability company (LLC) or corporation.
Register a Business Name (“Doing Business As”)
Naming your business is an important branding exercise, but if you choose to name your business as anything other than your own personal name then you’ll need to register it with the appropriate authorities. A fictitious name (or assumed name, trade name or DBA name) is a business name that is different from your personal name, the names of your partners or the officially registered name of your LLC or corporation.
It’s important to note that when you form a business, the legal name of the business defaults to the name of the person or entity that owns the business, unless you choose to rename it and register it as a DBA name.
The legal name of your business is required on all government forms and applications, including your application for employer tax IDs, licenses and permits. Learn which tax identification number you’ll need to obtain from the IRS and your state revenue agency.
Register for State and Local Taxes
A revenue service, revenue agency, or taxation authority is a government agency responsible for the intake of government revenue, including taxes and sometimes non-tax revenue. Depending on the jurisdiction, revenue services may be charged with tax collection, investigation of tax evasion, or carrying out audits.
Some employers do withhold and remit earned income taxes as a benefit to their Pennsylvanian residents who work out of state. The Act does not require employers to withhold Local Services taxes from an employee since this is a tax levied at the actual work location. Income tax in the United States. In the United States, a tax is imposed on income by the federal, most state, and many local governments.
The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Register with your state to obtain a tax identification number, workers’ compensation, unemployment and disability insurance.
Obtain Business Licenses and Permits
Business licenses, permits, and tax registrations are issued and administered by all levels of government, federal, state, and local, which includes county and municipal governments. In many cases you may need licenses on each governmental level. A business license allows you to legally conduct business in your state, city or county.
A tax identification number (or employer identification number) is used to identity your business for tax purposes. Whether you need a business license and a tax ID depends on the business you own and your geographical location. Get a list of federal, state and local licenses and permits required for your business.
Understand Employer Responsibilities
Employers and employees have responsibilities to each other, they should also expect their rights to be upheld. Both of them have particular responsibilities for looking after safety and health in the workplace. This is known as duty of care. You need to be familiar with those responsibilities as outlined in your State Government’s Occupational Safety and Health Act. Learn the legal steps you need to take to hire employees.
Find Local Assistance
Small Business Development Centers (SBDCs) provide a vast array of technical assistance to small businesses and aspiring entrepreneurs. You can also contact your local SBA office to learn more about how SBA can help. Other services may be available in your area such as, business consultant, CPA’s and small business revenue officer as well as online services.
Finally, I suggest all of you to start a business in United states for the business-friendly environment and quality of life considerations to specific technology, supply chain, infrastructure and workforce factors. Also be part of the largest consumer market on earth with a GDP of $18 trillion and 320 million people.
Household spending is the highest in the world, accounting for over a quarter of global household consumption. The United States is consistently ranked among the best internationally for its overall competitiveness and ease of doing business. As a stable democracy with a transparent and predictable legal system, skilled, innovative workforce with most developed, liquid, flexible and efficient financial market along with dedicated employee.
Writer is CEO at Global Brothers Investment Inc.