What are some tips for creating a small business?


Quick Answer

To start a small business, come up with a business idea, do some research, form a business plan and figure out how to fund it. It is also necessary to decide on a name and structure, and then get any necessary licenses or permits.

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Full Answer

When deciding on a business idea, it is important to do some research to figure out if the product or service meets a need. The person starting a small business should consider the target market, as well as any competition that could hurt business. If an idea seems to be worthwhile, it is time to form a business plan. The business plan should clearly state the company's motivations and goals, as well as plans for funding the venture and promoting it.

Some options for funding a small business include small business loans, small business grants and angel investors. Financing may also be an option. Some young small businesses use a bootstrapping technique, which means spending as little money as possible during the initial startup phase.

Because the business structure affects aspects of the business such as taxes and liability, it is important to consider whether the company should be a corporation, sole proprietorship, partnership or a limited liability company. The next step is to choose a name, look into any legal restrictions, find an accountant and decide on a location for the business. When the business becomes active, it is important to market it.

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