How to Start
Starting a business presents separate and unique challenges to the entrepreneur, depending on the nation and market that is being entered. However, there are several recurring factors that have an effect on an entrepreneurship, regardless of where it initially takes place.
To begin, the idea must be right. A new business should take advantage of something that the market needs. This can either be a new and creative product, service, or idea, or it may be to take advantage of a growing trend. Regardless, it has to be able to grab the attention of the consumer, and inspire a need that they did not realize they had. An entrepreneur must select the market carefully, doing an environmental scan to realize the needs and wants of the target market, as well as the barriers to entry.
After, the legal structure of a business must be decided. This, along with an initial business plan, will decide the operating procedure for a company in its infancy. Naturally, much of this is based upon available capital. If an entrepreneur has enough money to start a business on his own (Sole Proprietorship), then he/she will most likely do so. More often than not, an entrepreneur will face the need to borrow money from various lenders. With that comes a desire for ROI by the lender, which leads to sharing assets and responsibility. This usually leads to a Partnership, or various other business agreements.
To acquire funds, entrepreneurs turn to various forms of lenders. Many start with local friends and family for investment. Another common lender is a bank. Venture capital is also commonly used in developed countries, when available. For less developed countries, Foreign Direct Investment is key to the development of a business.
Lastly, the plan must be executable. If the idea, product, or service is deemed to be in want, then there must be a proper method of producing, distributing, and selling it. If the system is not properly planned and executed, the business will...