Starting a Small Business
This is an excerpt from the paper...
There are many steps involved in starting a small business. For example, the organization and legal structure of the business must be decided upon, financing must be arranged, inventory must be purchased, the location must be chosen, and an advertising plan must be worked out. Before embarking on any of these steps, however, the aspiring business owner must make a thorough selfanalysis in order to determine if he or she is truly qualified for the task. The chances for success in a small business will be greatly enhanced if the person has the characteristics of an entrepreneur. These characteristics include leadership abilities. Thus, the aspiring business owner should be good at working with people, able to take responsibility, and have good problem-solving and decision-making skills (Martin, 1988, pp. 8-9). In addition, as noted by Sharon Kahn, the small business owner needs to have self-confidence and assertiveness, courage, willingness to take controlled risks, capacity for hard work, ambition, and persistence (Kahn, 1988, p. 3). The most important element of all, however, is that of picking "something you love and are gifted at" (p. 3). Successfully starting a small business also involves choosing a product or service which is profitable. A new business generally requires a large investment of capital. The new business owner needs to be assured of making that investment back, with a profit. Without this assurance, starting a new business is simply not worth the f
. . .
the costs, there is also the option of trying to obtain a bank loan. Bank loans always require that the potential business owner have some form of collateral. Collateral refers to something of value which belongs to the person asking for the loan. When giving loans, banks require that such collateral be put up as a security in the event that the loan is not repaid on time. Banks can be very demanding in their rules for giving out loans to new businesses. For example, in most cases, the bank will ask the aspiring owner to invest at least as much as they are lending. In other words, they want the entrepreneur to come up with at least half of the overall investment capital and to thereby show a willingness to share the financial risks which are involved (McKeever, 1988, pp. 3-15). If the aspiring business owner has difficulties in obtaining a bank loan, there are also other potential sources for loans. In particular, the federal agency known as the Small Business Administration (SBA) is noted for its efforts in helping new businesses get off the ground. As a general rule, the SBA does not directly give out loans, but rather makes guarantees to banks that they will repay the majority of a loan in the event that the owner fails
. . .
Some common words found in the essay are:
Charles Martin, Notice Section, Sharon Kahn, Max Fallek, Yellow Pages, Gustav Berle, Mike McKeever, Administration SBA, , business owner, Schwartz Carol, business plan, aspiring business, martin 1988, mckeever 1988, berle 1989, sole proprietorship, starting business, marketing plan, 1989 pp, fallek 1989 pp, aspiring business owner, schreiber 1990 71, potential business owner, mckeever 1988 pp,
Approximate Word count = 3991
Approximate Pages = 16 (250 words per page)
More Essays on Starting a Small Business
|
Customer Service
to Over
32,000 Professionally Written Papers!!!
