What to Consider When Starting Your Own Business
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What to consider when starting your own business.
It is not seldom that new companies fail after a few years. This is caused by various reasons. For example its possible that the market does not grow as well as the forecast predicted or theres more competition on the markets than expected. Also poor planning of the business leads often to a bankruptcy. But these problems can often be prevented. Therefore this essay will show what theres to consider when starting up your own successful business.
To be a successful entrepreneur you need several qualities. First of all it is very important that you are able to make decisions. When you start your business you have to make a lot of decisions and you also have to handle their consequences. For example you have to take responsibility for what you produce or what service you offer. Furthermore a good entrepreneur should be self-confident. If you start to question your decisions, you cant manage your company. You need self-confidence to represent your business and also to lead and control your employees. This quality goes hand in hand with professionalism and competence. These things make good impressions to your potential business customers. For them it is also essential that they can rely on you. But all in all these are only a few qualities an entrepreneur needs to be successful.
The way how the business will get financed is essential. First of all you can take out a loan from the bank. A bank normally does not want any control of your business and this also could be the fastest way to get the money you need. But it is possible that you have to pay a high interest rate for the borrowed money. Another way to finance your business is to seek business angels. This type of investor has probably a lot of experience which can be very precious for you. Furthermore such investors will give you advice and also assist you. But the con is that the business angels usually want a small share of your business ownership. Finally you can ask your family or friends to help you to finance your new business. Usually they will be more flexible about repayment than a bank or other investors. Due to the fact that they trust you, they will not ask too many questions and also do not require any securities. There are many other possibilities to finance a new business, but these three are probably the most common ones.
There are different legal forms for a business and the form is important to choose wisely. This paragraph is a comparison between the most common ways to form a business: private limited companies (Ltd) and partnerships. The first contrast between those legal forms is the liability. Ltd has limited liability, this means if the company goes bankrupt the owner will only lose the money he/she has put in the company. In contrary to the Ltd, the partnership has unlimited liability, thus the owners can lose their