Setting up a business

Source :tbn3.gastic.com

Setting up a  business 

So you want to start a business?

To Increase your chances of success with our checklist.
Case Study: What I wish I knew Not what you're looking for.

Starting Your Business Right workshop to step you through the process of starting a business, help you get set up right the first time and connect you to a range of government resources and free mentoring.
Our infographic explains the steps to start a business and what support and resources we offer.

Is running a business for you?
There are many benefits to having your own business: independence, flexibility, satisfaction in nurturing your own idea and possibly building an asset that you can leave to your children.
But it's a lot of hard work. You'll need to put in long hours to get your business started. There is also financial risk. You'll be leaving behind a secure pay packet and company benefits such as superannuation and paid leave. Your personal assets might also be at risk. Before launching your own venture, ask yourself these key questions.

Checklist: Are you ready to start a business?
Personal skills
Before starting a business it is important to see whether or not you have the required skills. Ask yourself:
1. if you have the discipline and motivation to keep going when times are tough
2. if you have experience in the industry
3. if you either have a solid understanding of how to do your own books or can afford an accountant
4. if you are an effective and clear communicator
5. if you are good at problem-solving, particularly under pressure
Planning

It is important to plan your new business venture properly, so you should ask yourself:
1. if you have done thorough research into the state of the market, the type of customers you need to target and competitors
2. if there is a proven market for your business, either filling a gap, entering a market where demand is greater than supply or providing a point of difference
3. if you have sufficient funds to cover the start-up costs and the first couple of years when cash flow might not be steady
4. if you have a business plan for the first 12 months, including a marketing plan ,
cash flow and projected costs
If you've answered 'Yes' to all of these questions, it's likely that you're ready. If you've answered 'No', it's important to find the right support before you go any further.
Where to find help
Existing research
To find out more about your industry, seek out existing market research and do your own. IBISWorld has independent research reports and analysis on more than 500 industries.

Get a mentor
Mentors can advise on how to run a business and offer specific industry insights. Small Business Mentoring Service can connect you to someone with experience in your industry.
Speak to a business adviser
For financial help, speak to someone who's professionally accredited. Accountants, registered with the Institute of Chartered Accountants , help with taxation and financial statements.
Financial Planners, registered with the Financial Planning Association of Australia , can set up short and long term financial goals, including investment advice and estate planning, and prepare a financial plan.
See if it's right for you
A good option is to work in the industry while keeping a salaried job. If you're thinking of buying a cafe, for instance, take a job as an employee in a cafe first to see if it's the right fit for you.
Ways to get started: new, existing or franchise
Your personality and experience can help direct you to the type of business that suits you best.

Starting a new business from scratch
It's the riskiest way to start a business, but it can also be the most rewarding. Legal requirements, pricing, marketing, stock and staff are just a few of the things you'll need to make decisions about.

Buying an existing business
Buying an existing business offers you a proven track record. You're buying the physical assets, as well as crucial contacts - the customers or clients. It's essential that you check the financials carefully. Use our checklist to help determine is buying an existing business is the right move for you.

Buying a franchise
Franchises are established ventures with a successful business model. This takes away some of the risk for the owner. A solid franchise has a proven track record, an established market and provides support for marketing and operational aspects of the business. You buy the rights to an existing one or pay to set up a new one. Franchises are costly investments, and as such our checklist on buying a franchise will help you to decide if buying one's right for you.

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What Business is all about

Source :thebusiness1.tk

What is a 'Business'

A business is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transactsbusiness activities through the production of a good, offering of a service or retailing of already manufactured products. A business can be a for-profit entity or a nonprofit organization that operates to fulfill a charitable mission

BREAKING DOWN 'Business'

A business most often forms after the development of a business plan. This plan outlines the strategic intentions and logistics in making those intentions occur. A business name must be registered with the state, and this name is often referred to as the "doing business as" or DBA name. A business can operate with its own tax identification number and tax liabilities, so one of the pivotal steps in forming a business is determining the legal structure of the business and associated taxation implications. Different businesses require various permits and licenses to operate legally. Finally, a business has legal obligations in regard to treatment of employees and the conditions in which the employees work. These legal obligations of a business include properly assessing payroll taxes on employees as well as the business itself.

Business Structures

The most basic business structure is a sole proprietorship. The owner of the business is the sole individual who takes ownership of assets and debt obligations. Alternatively, multiple individuals with shared duties can operate a business, and this business structure is a partnership. A business may operate as a corporation. Incorporating a business releases owners of financial liability of business obligations; however, a corporation has unfavorable taxation rules for the owners of the business. For this reason, a fourth business structure, called a limited liability company, is available, which combines the benefits of a partnership and corporation.

READ:How to get loan from bank

Business Sizes

Businesses include everything from a small owner-operated company, such as a family restaurant, to a multinational conglomerate, such as General Electric. Larger businesses may issue corporate stock to finance operations. In this case, the company is publicly traded and has reporting and operating restrictions. Alternatively, smaller businesses may operate more independently of regulators.

Industries

A company may describe its business by communicating the industry in which it operates. For example, the real estate business, advertising business or mattress production business are industries in which a business can exist. Because the term “business” can be interchanged with day-to-day operations as well as the overall formation of a company, the term is often used to indicate transactions regarding an underlying product or service. For example, Exxon Mobil transacts business in providing oil.

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How to get loan from bank

Borrowing money can help you do things, but the process can be complicated. Mistakes can be expensive, and they can cause your loan request to be rejected. If you need to get a loan, learn what to expect and what you can do ahead of time.

What Kind of Loan?

The first step is to figure out what you need. The type of loan you get will depend on what you plan to do with the money. Some common loan types include:

In some cases, you won’t have much choice - it’s not likely that anybody will lend you enough to buy a home unless you use a loan designed for that purpose. Using a loan that matches your need will improve your chances of getting approved and will keep your costs low.

Decide Where to Borrow

Shop around. Again, your choices may be limited based on the kind of loan you want: some places don’t offer business loans or student loans. Start your search at the institutions best known for making affordable loans (for example, go through your school’s Student Aid office for an education loan before you go to the bank for a private student loan).

Banks and credit unions are a good place to shop for most loans. Check with several institutions and compare interest rates and costs. Peer -to- peer loans and other sources of marketplace lending should also be on your list. There are also several websites with access to multiple lenders. Borrowing online is perfectly safe as long as you stick to reputable sites.

Some people borrow from private lenders such as friends or family. While that can make approval easier and keep costs low, it can also cause problems. Make sure you put everything in writing so everybody’s on the same page - money can ruin relationships, even if the dollar amounts are small. Avoid high-cost loans and predatory lenders. It’s tempting to take whatever you can get when you’ve been turned down repeatedly and don’t know how else to get a loan. However, it’s not worth it - they’ll lend you money, but you’ll find yourself in a hole that’s difficult or impossible to get out of.

Payday loans and rent-to-own programs tend to be the most expensive options, and loan sharks can be outright dangerous.

Understand Your Credit

You generally need “credit” to get a loan. This means you’ve got a history of borrowing and repaying loans. How do you get a loan if you don’t have credit? You have to start somewhere, and that generally means borrowing less and paying more. Once you develop a strong credit history, lenders will lend you more and offer better rates.

If you know that you have bad credit, see How to Get a Loan With Bad Credit You can view your credit for free - you get one free report per year from every credit reporting agency.

Take a look through your credit history to understand what lenders will see when you ask for a loan. Do you look like an attractive borrower? If there’s not much in there, you may need to build credit by gradually adding loans to your history. Be sure to fix any mistakes in your credit files, as they’ll hurt your chances of getting a good loan.

Understand the Loan

Before you get a loan, take a look at

how the loan works. How will you repay it - monthly or all at once? What are the interest costs? Do you have to repay a certain way (perhaps the lender requires you to pay electronically through your bank account)? Make sure you understand what you’re getting into and how everything will work before you borrow.

It’s a good idea to run loan calculations before getting a loan. This allows you to see how much you’ll pay for the loan, and how a different loan amount (or

interest rate) might save you money.

There are plenty of online tools out there to help you calculate loans. It's also wise to view an amortization table (whether you build it yourself or let a computer do it for you) so that you can see how the loan will get paid off over time.

Get a loan that you can really handle - one that you can comfortably repay and that won’t prevent you from doing other important things (like saving for retirement or having a little fun). Figure out how much of your income will go towards loan repayment - lenders call this a debt to income ratio - and borrow less if you don’t like what you see. Lenders often want to see a ratio below 30% or so.

Apply for the Loan

You’re ready to get your loan once you’ve:

At this point, you can go to your lender and apply. The process is easy to start: simply tell the lender you want to borrow money, and tell them what you’re going to do with the funds (if required). They will explain the next steps and how long the process will take.

When filling out an application, you'll provide information about yourself and your finances. For example, you'll need to bring identification, provide an address and Social Security Number (or equivalent), and supply information about your income.

Go Through Underwriting

After you submit your application, the lender will evaluate you as a potential borrower. This process may be instant, or it may take a few weeks. For example, home loans take longer than credit card offers because there’s more at stake. Mortgage loans require extensive documentation, such as bank statements and pay stubs to prove that you have the ability to repay. You can make the process easier on yourself by getting everything in order several months before you apply.

During underwriting, lenders will pull your credit (or just use a credit score) and review your application. They may call you occasionally and ask you to clarify or prove something - that’s generally a good sign. When lenders ask for details, it means they're taking underwriting seriously and are more likely to offer competitive rates.

How to Get Loans for Business

Business loans are similar to any other kind of loan. Lenders look for the same basic things. However, new businesses don’t have a long borrowing history (or credit). Nnew enterprises and service businesses typically don't own assets that can be pledged as collateral, so they have to work a little harder to get loans.

In most cases, and individual - such as the business owner - has to use their personal credit and income to qualify for the loan. They may also have to pledge personal assets as collateral to get loans. This is often the only way to get loans in the early years, but you should try to build business credit so you can eventually borrow without risking personal assets.

If You Can’t Get a Loan

You might not get approved on your first try. Lenders can deny applications for almost any reason, but they should be able to tell you why you weren’t approved. In most cases, they don’t believe you have sufficient income or the credit history to justify the loan you’ve applied for. You may have to figure out another solution, or you can try to borrow with the help of a co -signer.

These are the General requirement for getting  loan from the bank :

1.  A clear statement of the amount of the loan required.
2.  A clear statement of the purpose of the loan
3.  The period or term of the loan
4. Your feasibility report
5.  Your management background and competence
6.  Your repayment arrangements,
7.  Any securities you want to pledge.

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TURNING YOUR IDEAS INTO REALITY

Image Source: Forbes.com

    Turning ideas into reality Is a team sport. Whether your idea is a product, a book, a business, or a service, you need the help of other people to make it happen. A vital key to creative success is the practice of building on your strength and integrating your talent with the unique abilities of others. A creative network is one of the most powerful engines for driving social and economical progress.
      Be the kind of person that people can come with their dreams, ideas, and visions. Creative people often don't need to be managed, they need to be inspired with a lofty vision. Rarely does one person have the "whole best idea." whether it is a problem or an opportunity that we are dealing with, we must integrate the fractions of ideas from many people to come up with the best end result. Never double that a small group of thoughtful, courageous, creative people can change the world.
Individuals say "I, teams say " We." A team is much more than a group of individuals. Shared values are the unifying force of a team. Team pride elevates creative thought. Team spirit is a competitive advantage. Teamwork is basically cooperation and mutual respect. Be the kind of team member that would be missed.

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CREATIVE TRAIBLAZERS
Pioneers and creative thinkers have common traits:

• They have a dream.
• They believe that the future can be different, and better.
• They make a commitment to shape portion of that tomorrow.
• They look at risk in terms of opportunity and potential gains.
• They work hard as part of a team that builds on strengths.
• They make total investments in their goals.
• They are minorities that create a better future for the majority.

Some motivational quotes from motivational speaker are listed below to guide you :

• Don't let your dream or vison die because of a lack of sustained effort.
• The strong urge to accomplish somethingnotable is the mainspring of nearly all creative endeavors.
• Create an "idea-safe environment" for thinking.
• Creativity is mobile. You either carry it with you or you don't have it..

The key question is not "what can we create? " or even "what do we want to create?" Rather for all of us it is "what are we called to create?"

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