Small business is nothing but a small or rather says growing business which is opened with little cash and compact space. It is rightly said that starting and managing a business requires loads of motivation, desire and talent. But before starting the business it is wise to do some extensive and detailed market research. Apart from that it also requires rigorous and thorough planning. As, it is popular in management that a business involves 90% planning and 10% implementation. Chess is the best example to describe small business. Like in chess you have to take decisive and correct opening moves same goes with small business too. It has been seen that few initial mistakes never prove to be fatal in fact they are eye openers but taking right step and skills at that time prove to be very beneficial in the future.

To have a certain success in the business you should, take the time up to search and assess your business and personal goals. Then use that gathered information for building a comprehensive and well-thought-out business plan. This calculative step will finally reap you profits and also help you reach these goals. There are various points which should be kept in mind while beginning with a new venture. Always remember that your own designed plan is a valuable tool and also help to raise money for your business. But before getting on to business there are few points which should be answered they are:

1) Why you want to be your own boss
2) To what extent you want financial independence
3) What will be the devised legal structure
4) What is your competition
5) What is your business advantage over existing firms
6) What services or products will you sell
7) What financing will you need
8) What insurance coverage will be needed
9) Where will you be located
10) What are your resources
11) Is your idea practical, and will it fill a need
12) You want creative freedom.
13) How will your company's business records be maintained
14) Can you create a demand for your business
15) What technical skills have I learned or developed

These are some important questions which are needed to answer before you begin with your small business. All these questions will give you the clear view of what’s the motive behind your business and is your decision justified. After finding answers to these questions the next point pops up. It is what type of business organization you’re looking for. Popularly there are four core types which are ruling the roost.

First and prime one is sole proprietorship. Sole proprietorship is the best and easiest way to start a small business. It can be formed by finding a location and opening the door for business. It hardly requires any big investment and all the required documents are always in proper order. The biggest advantage is that you have a freedom of action. Means you can do whatever you wish you and also at your choice. But it has some disadvantages too that are if you’re ill then there is no one to look after your business. Herein the business growth is always limited to a personal ambition. Furthermore, at times it has been seen that family and personal affairs easily mixed with business.

Second to fall is partnership. This is the second most important type of organization one hunts for. There are just two types of partnerships that are general and limited partnerships. General partnership is the simplest of all and can be formed simply by an oral agreement between two or more persons. Whereas limited partnership limits the personal liability of each partner to their capital investment. Herein the business is controlled by partners and a partnership agreement is signed in solving any disputes. The best advantage is that it provides additional source of income and also provides better credit rating than corporations of similar size. However it is disadvantageous also as it limits the control. There is no proper line of authority and power. Also debt of one partner becomes the debt of all partners.

Next to come is corporation. It has the complete corporate structure which is usually the most complex and more costly to organize than the other two business formations. Herein the entire control depends upon the stock ownership. Control is usually exercised through regular board of directors meetings and annual stockholders meetings. That’s why records are maintained to a very great extent. The biggest advantage is that it offers transfer of shares and also easy to raise capital. It also provides continuity and sudden change in ownership need not effect management. But the biggest disadvantage is that herein the management’s control is limited by charter. It involves legal formalities and also very expensive to begin with.

Ones you have decided to open a small business then you should jot down a detailed description of the business and its goals. Also write down the skills and experience you bring to the business. Try to go in for detailed market analysis and refer few market experts. Also mention the step that how the business will be managed on a day-to-day basis. It is wise to make plans but they shouldn’t be big and highly ambitious. Try to develop a sixth sense and also the expected return on investment and monthly cash flow for the first year. Also hunt for the person who will maintain accounting records. And last but not the least always keeps an option of “what if”. This means you should be mentally as well as financially be strong to face any problem. Thus, recapitulate your business goals and objectives and express your commitment to the success of your business.

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