FINAL
ASSIGNMENT SCIENTIFIC PAPER OF BUSINESS ENVIRONMENT
“START
YOUR BUSINESS WITH SMALL BUSINESS”
Written
by
IRSA
ADELIA
16.11.0258
Group
H
BACHELOR
OF INFORMATION
(S1
INFORMATIKA)
PREFACE
Praise be to God who has
helped his servant finish this paper with great ease. Without God help, i am
may not be able to complete the paper. Thanks to lecturers and references who
have helped making up this scientific paper for final assignment business
environment of AMIKOM YOGYAKARTA UNIVERSITY. Also thanks to my friends, Annisa
and Fita, who have helped me and stay together to finish this college
scientific paper.
Due
to the limitations of my
knowledge and experience to making up paper in
english for first time, i believe there are still
many shortcomings in this paper, therefore i am welcome any suggestions and constructive criticism from
readers for the perfection of this paper in the future.
Yogyakarta
(Indonesia), February 21, 2017
Regards,
IRSA ADELIA
I. ABSTRACT
Successful entrepreneurs in the world started they business with a small business. Every a successfull entrepreneur must have faced worst situations in the past. But, the worst situation in the past has been through and make them confident in making decisions about they business in the future.
II.
CONTENTS
STARTING
A SMALL BUSINESS
Starting a small business requires determination,
motivation, and know-how. Here are the critical steps to provide you with the
know-how to have a successful small business startup:
Choosing what kind of business to
start can be an immobilizing task when confronted with the multitude of
opportunities. It's important to determine where your passions lie and to
understand your personality type.
Yet, equally important is what
skills you bring to the table and whether you are entering a dying industry or
a fast growing emerging business.
For any start-ups, a business plan
allows you to gain a better understanding of your industry structure,
competitive landscape, and the capital requirements of starting a
small business. A study mentioned in "Business Plans For Dummies" by Paul
Tiffany states that companies with a business plan have 50% more profits
and revenue than non-planning businesses. Writing a business plan just makes
good business sense.
To start a business, you must
invest in the business. The journey of finding start-up funds will be different
for each individual. Some start-ups such as consulting require a few thousand
to get a website and business cards whereas a retail store could need $100,000
or more. Finding the money you need may come from a source you never thought of
or may just end up being the frugal bootstrap method.
What's in a business name? Everything and nothing.
The right business name will help
distinguish you from a sea of bland competitors, provide your customers with a
reason to hire you and aid in the branding of your company. Learn what you
need to know to find a name for your business.
Deciding on the structure of your
business is not a decision to be taken lightly. Whether you choose the popular LLC, a sole proprietorship or form a
corporation; your choice will have an impact on your business liability, fund-ability as well as
taxes due. Don't fret over your ultimate business structure, because as your
business evolves, so too, may your structure.
Starting a small business requires
the mundane, yet necessary, paperwork and regulations. Depending on your chosen
business structure, may need to register your business with the state
authorities. Setting up your small business may requirean employer identification number (EIN)
which is also used by state taxing authorities to identify businesses.
Additional paperwork can entail sales taxlicenses, zoning permits and more.
One of the multitudes of
tasks in starting a business is the setting
up of your office. There are many steps in office set up including
where to locate your office (home oroffice space), buying the necessary office
equipment, designing your work space and getting supplies.
As a new small business owner, you
have the responsibility to manage the risks associated with your business.
Don't put your new start-up at risk without getting
the proper small business insurance to protect
your company in the event of disaster or litigation.
Unless you're a number person, the
accounting and bookkeeping aspect of running your business can't be avoided.
Setting up your accounting will help you understand the financials of running a business and help you
avert failure.
PRO
AND CONS STARTING A SMALL BUSINESS
A small business is usually privately owned, with limited
sales and stock volume and a small work force. It is either a partnership or
owned solely by one person. When starting a small business you should consider
its strengths and weaknesses.
Pro starting small business:
1. The relatively low startup capital needed. Personal
savings, small grants and loans from friends and family are usually enough to
start up a small venture. Small business grants are available from the
government, banks and microfinance institutions when you provide a feasible
business plan. As you acquire the capital, it would be wise to familiarize
yourself with the pros and cons of a small scale establishment to help you
prepare for future challenges.
2. A small establishment is easier to manage compared to a
large operation. This is because the dealings are usually local and small
scale. The owner can keep a hard copy of the transactions or invest in cheap
software for record keeping. Keeping track of inventory, cash flow and
transactions is easily manageable. However, it is advisable to hire a qualified
accountant for a more organized and effective financial record system. The
business is also classified as personal income. Therefore, you would not have
to file two tax returns as is the case for a corporate firm.
3. Perhaps the most prominent feature when determining
merits and demerits of a small venture is the ownership structure. A small
business is owned mostly by one person or several partners. Therefore,
decisions can be deliberated and implemented faster. Since it is personal
investment, most decisions are made with the best interests of the business at
heart, therefore more care is taken.
4. Profits are solely the owner(s) and how they are to be
utilized remains entirely at the owner(s’) discretion. The clients also enjoy a
more personal customer service as the employees are few and most of the
transactions are conducted on a first hand basis.
Con starting small business:
1. businesses lack prominent exposure and authority. Many
clients prefer to conduct their business with large established firms rather
than the smaller ones which are considered risky. Thus, competition for market
share with the already established firms is greatly skewed in their favor
especially if they are highly capitalized. Although marketing and advertisement
costs for a small business are usually high, gorilla marketing can be utilized
to gain leverage.
2. Since businesses are there to make profit, evaluating
profit and loss is vital when gauging the benefits and limitations of a small
firm. When a sole proprietorship encounters losses or defaults on loan
repayments, the burden is squarely on the shoulders of the owner. He/she is
responsible for all the debts, liabilities, shortcomings and losses
encountered. Claims on the debts and loans usually extend to personal
belongings like house and furniture in order to cover the debts. On the other
hand, when gains are made the sole owner enjoys all the profits.
Considering the above factors, keen attention should be paid
to these merits and demerits of a small establishment as they help when
deciding the form of business to start.
III.
REFERENCES
No comments:
Post a Comment