"How to start my own business" is one phrase jostling with other questions in the minds of would be or prospective entrepreneurs.
A lot of people are not sure how to go about a small business start up.
This article will attempt to in a nutshell show you the things you must consider before proceeding to start your own business.
Business is the art of exchanging product or service for money and anyone can do that at various levels.
However, to set up a business concern demands that you first have adequate knowledge of the business you want to engage in.
For instance, if you are interested in going into buying and selling stuff, you should first decide what stuff and why you think that business will profit you.
Do you have some special knowledge in that regard? You must have some advantage in a business before you operate it.
After you have decided rightly that you have some advantage in a particular business, it is time to decide which type of business outfit to register with the appropriate authority.
You have the options of registering as a sole trader, a partnership with others or a limited liability company.
Characteristics Of The Three Business Models 1.
The sole trader as the name implies is solely your private business not different from you, therefore you incur debts and make your profits in your person.
2.
A partnership is much like a sole trader except that partners share profit and loss and are collectively liable to all debts incurred by the company.
3.
A limited liability company limits profits and loss to the registered company - your private estate is not liable to offset debts incurred by the company, but if you fail to perform you duty as a director and the company for that reason incurs any debt you may be made liable by law to offset it with your private estate.
Now that you have chosen your type of business registration the next thing to do is choose a business name and subsequently get a lawyer to handle all documentation in case of a limited liability or partnership, but if you are going for the sole trader you can just walk up to the company registration office and have your business registered after meeting the applicable requirements, and the question "how to start my own business" taken care of.