Starting A Business

Market research is about anticipating and minimising risk, Identifying potential clients, Market potential and Market size

When agreeing to be a director, bear in mind that;-
Directors are personally subject to statutory duties as directors of a company. They are personally liability, both civilly and criminally, for their actions or omissions, and can be disqualified from acting as a director of a company.

In choosing a company structure, consider that;-
A Corporation's debt is not considered that of its owners, so personal assets are not at risk, and a corporation can retain some of its profits without the owner paying tax on them

As a sole trader or proprietor
You have complete control over your business and make all the decisions. The business income and expenses are included on your personal income tax return. Any business losses you suffer may offset the income you have earned from other sources.

Your business plan should clearly state: What your business will do, your approach to pricing, the products or services you will provide and how customers will access your products or services.

When investors are considering a loan application, they will be looking for businesses that need investment urgently and maximise risk

Good market research and a thorough business plan tells investors that you have thoroughly studied your market sector, and your competitors. You understand your potential customer-base and you are prepared for the possible financial hurdles ahead.

Common business structures are;-
Sole Trader, Unlimited Company and Partnership

If you can see clearly that a business may run out of cash, good preventative action could be telling suppliers you can’t pay their bills

A Common feature of employee owned business is lower levels of innovation.