Let us begin by first perceiving the basic certainty of business to comprehend how to start a business. A business is an economic activity that facilitates the needs and wants of a customer, involving the exchange of resources between two parties.
What is a business?
A business could differ on factors such as objective, ownership, and provision. Based on the objective, a business will proceed with a profit or nonprofit motive. While based on ownership, the business either run by a private organization or a government-owned organization. Manufacturing goods or providing a service too make a business differ based on what it offers, in other words, its provision.
For the above factors to be decided and settled upon, a business must first determine the four factors that consisted of every business; land, labor, capital, and entrepreneurship; all based upon its strengths and weaknesses. Hence, opening the door for the beginning of the business.
The succeeding of the now opened business completely depends upon the individuals toiling towards it. Therefore bringing for the two environments associated with a business are the internal and external environments. The internal environment consists of individuals that influence a business directly, in other words, they are inside a business. They being the owners, managers, and employees of the business. Individuals that have an indirect effect on the business is called the external environment. Examples being; customers, suppliers, competitors, pressure groups, governments, etc.
These individuals, in both environments, are, in other words, known as the stakeholders of a business. In a nutshell, all the individuals must possess different ratios of dedication, determination, sacrifice, and efficient order for a business to turn out to be successful.
Who is an entrepreneur?
Entrepreneurship lies between the same lines as the above explanation of a business, but not quite the same. An entrepreneur is a person who organizes and operates a business or businesses; taking greater than normal financial risks to do so. Entrepreneurship catches the eye of anyone that craves freedom; is willing to take risks and one that values creation. Statistically, the Global Entrepreneurship monitor report in 2015 revealed that 66% of adults surveyed worldwide see entrepreneurship as a ‘good career choice.’
The difference between a businessman and an entrepreneur
The difference is the fact that a businessman makes his place in the market with his efforts and dedication. An entrepreneur creates the market for his own business. The businessman is a market player while the entrepreneur is the market leader because he is the first to start such a type of enterprise.
The advantages and disadvantages of a sole proprietorship
I must shed light on the advantages and disadvantages of having a sole proprietorship. Let us begin with the pros they are its convenience to start, complete control, and privacy. Completely enjoying the profits of the business by the owner is a simplified and less expensive business organization, minimal reporting requirements, and simplified tax reporting, too, can be viewed as its advantages. The above appeal to many individuals.
Let’s now view the other side of the coin as well, its disadvantages, unlimited liability, no continued existence, no legal personality, and the fact that all losses are borne only by the owner. If we view deeper, the decisions taken by a single individual could be faulty, difficulty in raising capital, limited management abilities, and time demands too are disadvantages. This in no way was intended to discourage you but to increase your awareness, as risks are a part and parcel of everything undertaken by humans.
As now keen understanding has set upon your minds on, what business and entrepreneurs. Let’s get down to how you could start a business of your own.
Why do you want to start your own business?
The first most important step many individuals fail to complete is to ask them the question ‘why?’ Why do you want to start a business with all the hard work, dedication, sacrifice, and the inevitable risks that it brings with itself? And the answers could lead it to be for pure, good intentions or the wrong reasons.
If perhaps your reasons are to earn a lot of money in the shortest time, to start a business because your neighbor has or because you are incredibly sick and tired of your old job, then these are the wrong reasons. But if your thoughts to start your business is in the lines of you having the right skills and qualities; you have the understanding of what customers need exactly, and you want to use your talents for so that society develops, then you are in the right track. Your intentions are pure and the correct ones indeed.
What is required of you to start?
Once that is settled, we must be able to look at what the requirements are to start your own business.
- The ability to raise enough capital,
- to have original, authentic, creative ideas, the right skills
- confidence and courage
- to be able to meet competitive barriers
- ability to hire employees
- the ability to find the right balance between the business and personal life
- to be dedicated and enthusiastic about business activities
The above pay a major role in the requirements to begin a business.
Have you decided on the field of your business?
Hence, leaving you to determine the track of your business. We place this in the hands of the four factors every business consists of, as mentioned above.
The natural resources that you can seize is an essential component for the manufacturing of your good or providing your service. Natural resources fall under the factor called land. Manpower, also known in terms of labor, is the number of work employees is willing to put into your business. Capital is the amount of equity you can afford to invest into your business. Lastly, entrepreneurship completely depends on your skills, abilities, and intellect in your chosen field of profession, the current trends, and technology. These four factors will assist you in the process of determining your business.
You can finally start your business
Therefore leaving you with the last step of simply beginning your business. As you go ahead in your journey, forget not to be confident in your abilities and the potential of the business. The organization is key for you to go a long way in your journey. Be driven by your goals and vision, and be consistent in achieving them. Be self-reliant and resilient while being risk-tolerant. It is also of importance to be decisive and flexible while being versatile. Last but not least, be creative and authentic in what you do and do not let the spark of passion inside of you to go out.
I channel all the luck in the world for the success of your sprouting business.