Who does love to work for other’s dream when everyone has their own? Can you bet you haven’t wondered ever how to start a small business? If you belong to those class of people who chase their own dream then this write up is the right one indicating a proper guideline (you might even call it a supplement) to you; especially if you are not that type of entrepreneur who can make all the rigid decisions all alone before launching officially.
Since 2012, more or less 30% of the workforce is leaving their conventional workplace and start building their own entrepreneurial empire which articulately demonstrates why starting small business ideas list making is a must and on that note people always prefer startup business plan or small business ideas from home. Being creative is always hard particularly when the To-Be-Businessman also has to consider the return on investment in mind. However, there are no hard and fast rules stating which the best business to start is but as we mentioned earlier people with the scarcity of fund always choose the cheapest business to start.
When deciding to start a small business following are the very first options people usually tend to bear in mind as such how to start a business with no money and bad credit, how to start a business from scratch, easiest business to start up or best business to start in small town. No kidding but these are okay as long as you got some real potential to hold. Great business ideas just don’t come to mind as a sudden outcome but it’s a result of brainstorming a little.
Now, if somebody asks me, “I want to open my own business. Do you have any startup business ideas?” or “How to start a business online?” What will I answer to them? I will tell that person, that if anyone wants to succeed in that startup s/he one must know some key things regarding small business prior to inaugurating formally likewise following-
- Small business denotes having employees less than 500 in general,
- Above 50% of the employed population (nearly120 million individuals) works in a small business
- Small business produces more than 65% of the new jobs available in market
- 52% of all small businesses are business from home
Afterwards, my suggestion would include any reasonable business ideas which may ensure small business grants and or involves the necessary steps to start a business. But this is not done yet. At this stage, one has to ask him/herself what is one purpose of writing a business plan before entering the market? Then s/he has to think how to write a business plan, how to gather bunches of business launch ideas. You can’t just sit around and say that “I want to start a small business but have no money” or that sort of lousy frustration. It’s 2017 and you are the one who can and will write your how to become a business owner step by step guide and consequently, no one can snatch the best entrepreneur business to start ideas from you if you are prepared well.
Nobody just hops into any business because for that someone will need some tips for a small business operational procedures and functions. First, one needs to pick what sort of business work they are going to do. Shall they know how to start a small business at home or how to start a small business online? Before making their decision as an execution of a proper strategy; you must develop your business start-up from all aspect, building a small business plan, putting that plan into step-by-step action. Ask yourself, “What do I need to start a small business?” It’s not such a piece of cake that you open a small business and your business setup becomes a successful venture overnight. You must be acquainted with how to legally start a business i.e. what licensing is needed to start a business or what are the legal requirements such as (license/permits/taxes).
The following points will describe visibly the requisite savoir faire steps required to register a small business in 1st world country like UK, USA and there will be a description of some noteworthy points only:
- Picking up suitable business location,
- Selecting the desired structure in which business will be operated,
- Registering your business,
- Obtaining bank loan at suitable interest rate &
- Attracting the angel investor
At this times some crucial points will be discussed below-
Register your business:
You will need to register your business when you think it’s time to distinguish your business, protecting it by giving a legal brand name. Registration process varies from country to country. If you are an American Citizen then you must have heard of SBA (Small Business Administration). It’s the right place to make all your tough work easier. You only need to state your location and depending on your place it will vary whether you need to register with state agencies or you need bigger than that; a Federal Tax ID. Followed by that you have to apply for licenses and permits. Giving official permit to you to do business will not be a short process though. And here comes the necessity of start-up advice, where you might seek help from professional startup advisors. Remember that, license hinge on the type of operation and considering the business category, the license giving authority differs. Now that you know how to start your own small business.
However, small business registration process in the UK varies from that of USA. There, you need to check whether you are eligible as self-employed. Once elected as a sole trader you need to register for Self-Assessment. Not only this, there are some additional duties are involved, likely-
- Maintain records of your entities sales and expenses
- Send a Self-Assessment tax return every year to Her Majesty’s Revenue & Customs (HMRC)
Apart from these, you also need to apply for a National Insurance number if you’re shifting to the UK to set up a business.
Bank Loans and effective interest rate:
Not every one of us has the capacity to arrange the whole required fund to do business. If you get some sort of business start-up grants that’s alright but here I am going enlighten the rest who needs help from the bank and obviously bank won’t lend you a penny unless you have something valuable to offer or in lieu of a higher rate of interest.
Table 1 Latest interest rate offered by UK banks at present is as above.
And in case of USA, loan interest varies widely considering the amount given. The rate though stays in between 3.97% to 6% at most.