Essay about Debt and Business

Submitted By kingargon14
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In this essay I will be pointing out and talking about the many factors that have to be taken into account when setting up a small business. There are many factors when it comes to setting up a small business. It also depends on what type of business you want to set up. These factors may include; finance, business plan, location, publicity, target market, communication, links and contact.

Business Plan

Your business plan (idea) is another factor you have to take into account. It is essential to have a realistic working business plan when you're starting up a business. A business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts. It has many functions, from securing external funding to measuring success within your business.
Finances

Finance is one the most important factor you have to consider when setting up a small business. This is because you need money (finance) to start everything up, not just to start up but to expand. You can use your own savings or personal borrowings to fund the business, particularly if you can't obtain finance or investment from external sources - see the page in this guide on how to use your own money to set up your business.
If you do not have to correct funds to start up a business, you have to go to a bank and get a loan.

A loan is a financial transaction in which one party (the lender) agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount loaned (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.

Location

A good location for your business is vital, but choosing the right one can be something of a balancing act. Ideally, the location should be convenient for your customers, employees and suppliers - without being too expensive.
Factors to consider include: * planning restrictions - make sure you check whether you're allowed to use the premises for the purpose you have in mind * local authority charges and business rates for services such as waste collection - these can add greatly to the ongoing costs of locating in a particular area, which may make the premises less desirable from your point of view * local amenities - employees generally prefer working in areas with good local facilities, and you may need to make regular trips to the bank or a postal depot * what sort of area it is - the image of your business may well be affected by the nature of your location

Target Market

The next thing you should look at is your target market. It is important that you understand how to effectively market your product or service. Using appropriate marketing will ensure that your business' products or services reach their ideal customers.
Many businesses attend trade shows or exhibitions - either as an exhibitor or an attendee - as a way to meet a large number of potential customers. However, trade shows can be expensive to attend as an exhibitor, so it is important to research them first so you can ensure they have the potential to deliver customers to your business.
Employing
As the employer you will also have to hire employees. Employee engagement can start before a new employee joins. It is important for managers to connect quickly with them - the quicker employees become settled the quicker they will start contributing. As the employer you must be able to communicate with you employees, via phone, email, letters etc. Your employees influence health and safety through their own actions. They are often the best people to understand the risks in their workplace.
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