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Fazal Mirza

ENGL 393

Professor Christopher Justice

How to Create a Business

You being here means that you are an aspiring entrepreneur. Being an entrepreneur means that

you have a vision that can potentially change your life. The only problem is, you do not know where to

start. You do not know how you are going to run your business and what kind of business will run. You

also aren’t sure where exactly you’re going to be spending your money to start up your business. In

conclusion, you do not know how to make a proper business plan for it to be as successful as possible.

This is why you are here, to be taught how to take the smartest steps you can take as an entrepreneur.

Represents being open-minded and coming up with different ideas.

(http://www.davidcraigutts.com/2019/01/10/visionary-leaders-engage-now/)

Step One: The importance of researching

Before you even get started on your business, you need to have a motive about what exactly you

want to get out of this business. Whether it is a restaurant, clothing company, furniture store or

anything else, as an entrepreneur it is crucial to start researching and brainstorming ideas. Researching

is “also a road map that provides directions to a business can plan its future and helps it avoid bumps in

the road” (Parsons, n.d.). You will also be going to be doing research on the competition. Other
companies that are similar to yours can be your biggest nightmare, especially if your business is not as

successful as theirs. You need to find new ways to make your business stand out, do something that the

other companies are not doing. This represents a comparative advantage because your business will

have something the rival company doesn't.

Step Two: What kind of business?

The second step in starting off a business is what kind of business do you want? There are three

kinds of businesses you will need to learn before going into the business world. The three kinds of

ownership are as follows:

Sole Proprietorship- You are the only owner and you are fully responsible for everything positive or

negative that happens in the business. Everything is yours and you have full responsibility.

Partnership- This is a kind of ownership that will involve two or more people who contribute to the

business. They share the ownership, liabilities, as well as profits of their business.

Corporation- Corporation is a business that involves multiple owners. These owners do not have all

the say in business, but they have limited liability. This is owned by different shareholders. “If the

business is for profit, the profits are reinvested in the business and then divided among shareholders as

dividends” (Mollaei.)

Side note:

Entrepreneurs tend to start with a sole proprietorship or partnership when starting on a business.

Business owners then switch to corporations once their business becomes extremely successful and the

business expands.

Corporation visual. (http://www.oldanilaw.com/c-corporation)


Step Three: Finances

This is one of the most important steps an entrepreneur needs to get for the business to run successfully.

Although you do not need to spend every penny you have in this business, it is important to understand

the different strategies you can use.

1. List everything you need to purchase to start your business off.

2. Create a budget so you do not spend money you do not have.

• When Creating a budget you must consider the following:

• Check your revenue.

• Deduct fixed cost.

• Determine Variable Expenses.

• Generate your projections.

Once you have this setup, you can find the different ways to fund the small business.

Different ways include:

1. Small business loans- Specifically for business when you are given a certain amount of money

and need to pay it back.

2. Angel investors- Finding an individual who provides capital for a business start-up.

3. Crowdfunding- Having a large number of people funding small amounts of money. This

strategy can be done online.

(https://www.usatoday.com/story/money/nation-now/2018/02/26/does-money-

equal-happiness-does-until-you-earn-much/374119002/)
Step Four: Hiring Process and Promotion

Now that your business is almost ready to go, if necessary, hire a team. Go through your

business and see what roles you still need to fulfill in the company people. Based on those roles, make

a very clear and specific job description; make people who are looking for jobs want to work for your

company. Show the benefits of working and make sure YOU, as an entrepreneur act more like a leader

than just a manager. Once you have your required employees, have your team ready with the same

goal.

After everyone is on the same page, brainstorm marketing strategies and plans that you will

need to follow. Nowadays, small businesses use social media such as Instagram, facebook, twitter, etc.

to promote their business

You are all set! Wish you the best of luck and to never give up.

Caution:

Although these business tips and steps are very helpful and beneficial, that does not necessarily

mean your business will be successful. Some of these strategies may not be exactly for you. There is no

guarantee these steps will help, it is all about the decisions you choose to make and an entrepreneur.
Citations

Parsons, James, and Aytekin Tank. "Business Plan Definition - Entrepreneur Small Business
Encyclopedia." Entrepreneur. Accessed March 05, 2019.
https://www.entrepreneur.com/encyclopedia/business-plan.

“Visionary Leaders Dispel The Myth of Future.” David Utts - Leadership Development Consultant,

23 Jan. 2019, www.davidcraigutts.com/2019/01/10/visionary-leaders-engage-now/.

“C-Corporation (+ Close & Professional Corporations).” Oldani Entrepreneurial Law, P.C.,

www.oldanilaw.com/c-corporation.

Hafner, Josh. “Does Money Equal Happiness? It Does, but Only until You Earn This Much.” USA

Today, Gannett Satellite Information Network, 26 Feb. 2018,

www.usatoday.com/story/money/nation-now/2018/02/26/does-money-equal-happiness-does-until-

you-earn-much/374119002/.

Mollaei, Sam. “Difference Between Partnership and Corporation – Which is Better?

https://mollaeilaw.com/blog/difference-between-partnership-and-corporation/