Did you always want to be your own boss Did you ever dream of freedom for creativity and financial independence Does the idea of risking time and money fascinate you If the answer is yes, then starting a business is the right choice for you.

What all goes into starting a business How can you increase your chances of success Well, if you have the desire, motivation, and talent to start and manage a business, heres a beginners guide on how to get started.

To be able to launch a successful business, you also need to be disciplined and hardworking. Although mistakes are inevitable, correct openings and moves in the initial phase largely contribute to the success of a business.

Before you Decide on a Business

As a start-up entrepreneur, you should avoid making mistakes at the very outset of a business. Selecting the wrong business is the most common and frequent mistake many entrepreneurs make. Considering certain points beforehand will help you select a successful business. These may include:

Giving yourself sufficient time to think about what you want to do.

Identifying businesses with a rising growth in the market.

Enlisting businesses with long-term economic potential.

Tackling businesses that are not too challenging.

After you have made a list of all possible businesses that you could start, the next step is selecting the right business for you.

Selecting the Right Business

As a good entrepreneur, it is necessary that you be patient and realistic. You must understand that the gates of success will open to you only after identifying the right business and understanding every aspect of it before you begin. You can start with jotting down the activities that you would want to do in your business. You may also include all the products or services associated with each activity.

Lets say you have three activities listed, namely: selling automobile parts, starting a driving school, and opening a book shop. Next, decide the business by objectively concluding the better of the three in terms of your interest, capacity, and scope. Further, consider all the pros and cons of the businesses. Such a comparative evaluation will help you select the business that is just right for you.

Becoming a Qualified Entrepreneur

Knowledge beyond the theoretical greatly contributes to ones success. Practical or hands-on knowledge will help you learn more about your business. In order to become a qualified entrepreneur, you need to:

Work for someone in the same or similar business.

Study the necessary subjects required for the business.

Read how to books related to the business.

All the three steps will help you understand the dos and donts that are crucial for a successful business.

Starting a Business:

There are three main phases involved while starting a business. They are:

1. Evaluation of business goals,

2. Research in the related area, and

3. Planning for the set up.

Lets take them one by one.

1. Evaluation of business goals:

After you have decided on the right business, the next step includes evaluating certain goals that you have set for the business. You can evaluate these goals by asking yourself a couple of questions such as:

How practical are my ideas

Who are my competitors

What advantage does my business have over others

How will I deliver superior quality service

The answers to these questions will help you understand more about the functioning of your business.

2. Research in the related area:

A little groundwork about the business scenario will provide you better insight into how your business can do better. For example, you can find a few things about the business by:

Talking to people who are already in the industry.

Understanding the ups and downs in the business.

Surveying the current and previous status in the market.

You will be in a better position to understand certain business requirements after the research.

3. Planning for the set up:

Planning is one of the crucial steps before starting a business. You will need to outline a plan before you start and even at each and every step thereafter. Depending upon the plan you devise, your success in the area will be determined. The outline of your initial plan should largely depend on certain evaluations.

Can I operate without a factory

Can I start with a few employees

Can I handle the capital requirements single-handedly

Where can I gather my resources from

How can I compensate myself

Depending upon the analysis of the answers, you can decide whether you want to start the company in a sole proprietorship, partnership, or corporation.

Sole proprietorship is an easy and less expensive way of starting a business. All it need is a location to set up the business and a small fund raising to cover the expenses of registration, a name certificate, and other necessary licenses. The good thing about proprietorship is that the owner has absolute authority and command over all business decisions. Consulting an attorney for certain matters is highly recommended.

Partnership is a business agreement wherein two or more persons agree to do business together. It requires the partners to contribute the required capital. Division of profits is decided on this percentage contribution. Such an agreement helps solving any disputes that may arise. It is important to note that partners are responsible to their own acts as well as the actions of their fellow partners. Seeking advice of an attorney in such agreements is necessary.

Corporation may be described as an organization owned by shareholders whose liabilities are confined to the value of their initial investment. The business structure in a corporation is the most complicated of the three. The ownership is represented by transferable shares of stocks and the shareholder with the largest number of stocks controls the corporation. Regular meetings comprising the board of directors and stockholders help exercise control on the business. Such a business does not require an attorney, but legal advice is a requisite.

Outline of the Business Plan:

After you have decided the type of business you want to start, the next big thing is to draw an outline of a business plan for your guidance. This plan should include details about:

Your business and its goals.

The ownership and structure of the business.

The skills and experience necessary to the business.

The advantage of your business over other contenders.

In addition, you can also include an outline in various departments of your business, such as marketing, accounting, operations, and so on. A few details that you should include are listed below.

Products and services offered.

The size and location of the market.

Your advertising strategies.

The amount and source of initial equity capital.

A budget for the first year.

Management of the business on an everyday basis.

Hiring procedures.

Allow an associate to review the summary of all the above-mentioned goals and objectives. After you have the final content and structure ready, you can schedule an appointment to discuss it with your lender. As the business plan is a flexible document, you can change it as and when your company grows.

To sum up, a successful entrepreneur gives himself considerable time and effort before selecting the right business. Working for someone in a similar business and studying the necessary subjects for the business can make you a qualified entrepreneur. Moreover, proper evaluation, research, and planning can help you start a successful business.