Challenges in Starting a New Business

Starting a new business can be very exciting as well as challenging. It can be exciting because it might be a transition from being an employee to owning a business and becoming one's own boss where there is freedom of doing things without anybody's influence. The idea of being a business owner can be very exhilarating in itself. Bateman states that 'The control and ownership of a business is a very powerful feeling. Having ownership is like an adrenalin flow. It gives you more energy– you start to see what you can achieve.'(Smith, 1997, p. 149)

There are numerous advantages of having one's own business. The potential to earn a higher income, independence, being one's own boss, ability to fully implement one's creative talents, choosing...show more content...

A large number of small businesses fail each year due to insufficient funds or capital. Many entrepreneurs miscalculate the amount of money they need to start and operate their business. They may later find that they need more capital in order to sustain till the business is fully established. Others are likely to suffer as they may not be able to market themselves or their product or because they find that they are unable to supply all the required products. Yet others may not even have the ability to pay for any extra help. This one fatal error in calculating the capital may cause the business to suffer heavily and lead to its eventual downfall.

It is always wise to explore the possibility of having extra capital in an event that the business required more funds. However, the crucial point still remains that the entrepreneur take great care in determining how much funds are needed in order for the business to survive till the time it can be properly established. Generally, a new business would take around but is not limited to six months before it starts to generate enough income to fully sustain itself. Thus the entrepreneur needs to keep this time frame in mind when determining the initial capital. It would also pay to have a separate living expense for the first six months of starting the business. The third challenge is to find a niche. Knowing which product to sell and the sort of market it will have is another big challenge for all entrepreneurs. Before Get more content

5. A)There are several reasons for starting a new business. The benefits include the owner's ability to make virtually all decisions in the business, and can run it exactly as they please. The owner has the freedom to define the nature of the business, and create the preferred type of physical facilities. The owner can select a competitive environment, and take advantage of the latest technology, equipment, materials, and tools. The owner will also have control in selecting and developing personnel. Overall, the biggest reason to start a new business is this idea of freedom and being one's own boss. Having this control and ability to sculpt the business into exactly how they want it to be is one of the major motives to start a new business. Another advantage of opening a new business is job security (Templeman, 2014). By opening your own business (assuming it is successful), you never have to worry about being laid off or losing your job unexpectedly. Another reason to start your own business is the amount of skills you will learn while working, and the likelihood that you will become an expert in your field (Templeman, 2014). However, running your own business is not as easy and simple as it sounds. Some reasons against starting a new business is the fact that it is expensive, difficult, and requires a lot of unpaid hours of one's own time to get the business up and running. Some may have problems finding the right business – what type of product or service should this

Introduction In today's world many people dream of having their own business. Sometimes that dream never comes true because that person does not have the funds nor resources to make it happen. Many of those potential entrepreneurs reach out to other in hope to make that dream come true. I am one of those dreamers and I hope my dream of becoming a business owner has come. This dream can only come true with the help of you as an investor. Please take the time to study my profile. I hope you will find that I am capable of owning and operating a success business. The business I am starting is a wedding accessories specialty shop. It is a one stop shop where you can get practically everything you need to make your wedding special. You...show more content...

Although these employees have specific duties they will all help with other duties. We are to be one family focusing on the needs of the customers. The reason I have decided to open this type of shop is because people are always getting married and they get so frustrated when they have to run all over town to get the items they need for their wedding. This a business that will always be a need for. It has a high potential market and customers will not mine paying the extra money to get most of their items for the wedding at one stop. Listed below are some of the chart of accounts that will be used in my business: Cash$15,000Note Payable$30,000Supplies /Inventory$ 15,000Rent Expense$ 1700 Advertising Expense$ 1,000Gasoline Expense$ 700 Prepaid Insurance$ 1,500Utilities Expense$ 1,100 Van$22,000Wages and Salaries Expense $28,000 Equipment$15,000 The accounting method I will be using is the GAAP method. The business I am expecting to open will not be global but local. Our webpage will be out on the Internet so any one can purchase our items. So therefore, GAAP method would be more efficient. Also, the GAAP method uses cost principle versus fair value principle. In the cost principle the company will record assets at their cost. The cost principle will not only be used at the time of purchase but also over the life of the assets. For example, if I

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My Business Idea

In my coursework I intend to start my own business. I will devise my own business plan which outlines my business proposal and the key aspects, during this I will need to seek good business advice on the necessary steps I will have to make. As I go through the coursework I will show evidence, examples and explain how businesses are set up, what types of businesses there are and their similarities, the kind of targets businesses set for themselves and also the different objectives of different stakeholders. For my business I plan to sell toys and other game products that educate young children under the age of 11.

Starting up a business is difficult and risky. Anyone setting up needs to consider:

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Most people though have to research their product. Businesses also have to decide how the product is to be made.

Finance

No businesses can be set up without finance. Most people who start their own business underestimate the amount of money they will need to set up. They are often UNCAPITALISED and this causes problems as the business expands. Some businesses have the potential to be highly profitable but fail because they run out of cash at a crucial early stage in the life of the business. So it is very important to work out how much money is needed to start the business and to identify where the money will come from.

Identifying the sources of help