10 steps before “Starting a Business”

Starting a business involves making key financial decisions and completion of various legal activities. This following steps will provides information to help you plan, prepare, and manage your business.
1. Step 1: Research and Planning your business: Use these tools and resources to help you prepare your business plan and become a successful business owner.
Step 2: Assistance and Training:
Take advantage of free training and counseling services, from preparing a business plan to getting financing, and help expanding and relocating a business.
2. Step 3: Selection of business location:
Get advice about choosing a customer-friendly location and complying with zoning laws.
3. Step 4: Finance Your Business: Find government backed loans, venture capital and research grants to help you get started.
4. Step 5: Determine the Legal Structure of Your Business:
Decide whether you are going to form a sole proprietorship, partnership, LLC, corporation, non-profit or cooperative.
5. Step 6: Register a Business Name:
Register your business name with your state government.
6. Step 7: Get a Tax Identification Number:
Learn which tax identification number you'll need to obtain from the IRS and your state revenue agency.
7. Step 8: Register for State and Local Taxes:
Register with your state to obtain a tax identification number, workers' compensation, unemployment and disability insurance.
8. Step 9: Obtain Business Licenses and Permits:
Get a list of federal, state and local licenses and permits required for your business.
9. Step 10: Employer Responsibilities:
Learn the legal steps you need to take to hire employees.

BASIC FORMS OF BUSINESS

Types of business entity

Although the forms of ownership of business varies by jurisdiction,, there are several common forms:

1.Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has unlimited liability of the debts incurred by the business.

2.Partnership: A form of business owned by two or more people. In most forms of partnerships, each partner has unlimited liability of the debts incurred by the business. There are three typical classifications of partnerships: general partnerships, limited partnerships, and limited liability partnerships.

3.Corporation: A limited liability entity that has a separate legal personality from its members. Corporations can be either privately-owned or government-owned, and can be organized as either for-profit or not-for-profit. A privately-owned, for-profit corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff.

4.Cooperative: Often referred to as a "co-op", a cooperative is a limited liability entity that can organize for-profit or not-for-profit. A for-profit cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

Business

Business
From Wikipedia, the free encyclopedia

A business (also known as company, enterprise, or firm) is a legally recognized organization designed to provide goods, services, or both to consumers.[1] Businesses are predominant in capitalist economies, in which most businesses are privately owned and typically formed to earn profit that will increase the wealth of its owners. The owners and operators of private, for-profit businesses have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Businesses can also be formed not-for-profit or be state-owned.

The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate and complexity of meanings.

Criticism of business

Business is being criticized from various aspect.
There is no doubt that modern business has raised material standard of living of the people but it has also created discontentment in the economic and social system. some of the main criticisms directed towards business are as under:

1.The employees are usually exploited by the owners because business of today has become too much profit oriented. Earning profit is all that matters to the business,
2. Business is one of the source of polluting air and water which directly affects the health of the people.
3. Human values and worker comforts and their importance is ignored by business.
4. Business due to self-interest, often ignores the welfare of the consumers and supplies adulterated goods.
5. The communication media such as television, radio magazines, newspapers. etc.. attempt to sell their goods or services by appealing to be human emotions, People due to the influence of communication media are losing sight pf spiritual values.
Conclusion. We do agree that the modern business has increased the - comforts of life by supply the desired quality of products but it has obligations towards nation also.Business is not for money chasing but it should also aim and target in serving the community and the customers.

Importance Of Business In The Present Day World

Business is important for providing goods and services. These products or services in the present day world are provided by entrepreneurswho organize, manage and assume the risk of starting businesses mainly for earning profit. Business makes the best possible use of scarce resources such as men, machines and materials for the production of goods. The importance of business can be explained under following heads.
1. Production of goods and services
The raw material produced from agriculture, mining, forestry, fishing etc., provide raw materials for the manufacturers of consumer and producer goods. For instance, agriculture provides food such as grains! vegetables. Mines provide metals which are used in factories and firms. Coal, another product of n,ne is a very useful source of power Forestry, provides us timber which is needed for the construction of building, furnitures, paper, etc.

Manufacturing uses the raw materials of agriculture, mining, forestry, fishing. etc., and makes a variety of consumer and capita! goods which are needed by the consumers. Without manufacturing, the business will stand idle. There would be no automobiles, no roads! no airplanes, no eleQtr’c power, etc. To sum up, the Industrial occupations which are concerned with the growing, extracting and manufacturing of material goods are cornerstone of business.

2. Distribution aspect of business
The thstribution aspect of business is very complex. The goods which are produced should reach the consumers at the right place, right time and at right price also. Business due to seif-intefest of earning profits, provides goods to the peop’e both within and outside the country. The transport industries facilitate the movement of goods from one place to another where they are wanted. Finance, banking and insurance greaUy contribute in the financing of business. Without banks, investment and insurance companies, commerce and industry would not have deveLoped on an extensive scale.

3. Business supplies services
Though the service organizations do not contribute directly in the production of goods but they facilitate in the production and distribution of goods to the customer& The major services which arc growing in importance with each passing year are banking and finance, insurance, medical and health] Legal, engineering and other professionals, hotS, domestic servants, education, automobile repairs. etc., etc, the services which perform simple or difficult tasks for earning money are regarded an important part of business.

4. Business help in raising standard of living
Business has helped people to earn a living either as owners of business or as employees. The mass production of standard goods! specialization, automation have increased the incomes of those who are directly or indirectly engaged in business. Higher incomes have led to the increase in the standard of living of the people. Business also pays a large share of taxes to a government

5. Creation of customers
The business of today is creating markets for its customers alL over the world by introducing new products, new methods of distribution such as e-corrmerce, tele shopping etc.It help to maintain the goodwill of business by increasing the customers.

OBJECTIVES OF BUSINESS

Business is a very important economic activity. The success of any activity depends on definite objectives. So, it is necessary to have definite objective for it, to perform successfully. The objectives are goals where all efforts are concentrated for fulfillment of the objectives.
The main objective of business is to earn profit. It makes continuity in the business. It also measures the success of business. No business can continue for long if it ignores public service. So earning profit and public services are the main objective of business. However, the objective of business may be broadly categorized under the following heads.
1. Economic objectives:
Business is basically an economic activities, its primary objective is to earn profit. The economic objective of a business is to earn sufficient profit to give reasonable reward to the investors of capital and to provide funds for expansion and diversification. The main economic objective of business may be described as under.
a. Earning profit
b. Production of goods
c. Creation of market
d. Technological improvements

2. Social objectives:
Since business operates in society it cannot survive and grow unless it meets
the needs of society. For the survival of any business, social objectives are essential. Profit should be earned along with service and the concept does minimize the important of profit. The philosophy of running a business should be in tune with what is considered right by the society. Some of social objectives of business are:
a. Providing goods
b. Supply of quality goods
c. Proper price
d. Providing employment
e. Utilization of scarce resources

3. human objectives:
Business activities can be conducted only through the medium of human being working as individual or group in organizations. If the human factor is overlooked, it will be difficult to achieve its objectives. Human objectives of business require that a workable balance should be maintained among the claims of various interested groups like employees, shareholders and consumers.
Some of important human objectives are:
a. Welfare of employees
b. Satisfaction of consumers
c. Satisfaction of shareholders

MEANING OF BUSINESS

The meaning of business is comprehensive. The word ‘Business’ literally means ‘a state of being busy’. Every person is engaged in some sort of income generating activities or occupation to earn livelihood while doing some work. According to L.H.Haney”
:"Business may be defined as human activities directed towards providing or acquiring wealth through buying and selling goods”.
In other words of W.R.Spriegal:”All of those activities included in the production and sale of goods or services may be classified as business activities”.
Every business activities are performed with a view to earn profit. According to C.F.Abbot, “business without profit is not business”. No private entrepreneur will start business unless he hopes to earn profit.
In conclusion, we can define business in a following ways: “business involve all activities of production, distribution, and exchange performed to provide goods and services to fulfill wants of society with an equitable adjustment of profit and public welfare”.