After gaining enough knowledge on the types of business structure, business owners can proceed to the process so that their plans of owning a business will turn into reality. After reading several resources, the process will be divided into five stages. The first stage is the planning and research. This involves developing viable business ideas, knowing the target customers and possible competitors, searching for the right location, thinking what will be the business name, and marketing strategy. In this stage, a business plan should be made. Business Link (2016) refers, “business plan as a document that defines why you’re in business, your goals, and how to achieve those goals and it also covers all major aspects of the business, including
Data from the National Survey of America's Families found that seven percent of the TANF leavers it sampled in 1997 were self-employed. This is similar to the national rate of self-employment, which was 8.1 percent in 1997. It is also higher than the self-employment rate among women, which was 6.6 percent in 1997. In rural areas, self-employment is an even more important source of employment—in 2002, 10.4 percent of workers in nonmetropolitan counties were self-employed, compared to 7.2 percent nationwide. And, in some rural areas, the role of self-employment is even more pronounced. For example, a recent study by the Center for Rural Affairs found that nonfarm proprietors constituted 22 percent of employment in rural farm counties throughout the Great Plains states”( 1).
Self-employed people will run their own business, they will be contracted to provide a service their clients. They will not be paid through PAYE and they do not have the same employment rights as employees or workers, Self-employed people will however still have protection for their health and safety on a client’s premises, they will have their rights and responsibilities set out in the terms of the contract with the client. They will not be entitled to holiday pay. They may however in some cases be classed as self-employed for tax purposes but classed as an employee or worker for employment rights. See point 2 Appendix
As you will see from my resume, I have been successfully self-employed for many years. This requires initiative, dedication, and focus. Multitasking ability and organization are absolute necessities. I believe in doing whatever necessary to get the job done right and on time - whether that means schedule management and travel arrangements for an
Self employed - if you are not employed in a contract of employment with an employer but contracted to provide services other a period of time for a fee or be a business in your own right. Therefore a person will work for themselves rather than a employer. You do not have employment rights but have to pay your own income tax and national insurance contributions.
A Sole Proprietorship is one owner. The advantages of a sole proprietorship exist in the simplicity of taxes, cost efficiency in the startup process, and complete control of the organization. A sole proprietorship structure is the simplest method of establishing a business, the expenses are low and fewer licensing is required. A sole proprietor is responsible for the final decisions and directions of the business. The taxes are reported through the individual at a much lower rate than any of the other structures. The disadvantages of a sole proprietorship are the personal liability risks and capital; the individual absorbs all legal implications within the
The first step to starting a business is to create a business plan. A business plan is a document that outlines the overall strategies of a new venture and how those strategies will be implemented (Ebert &
Is the most common business type, where the business is operated and owned by a single individual. In this type of business, the sole proprietor provides capital, does not share profit or loss and runs the business alone. As such, the business and the owner are indistinguishable for tax and legal purposes (Dlabay, 2011). To differentiate this business from other business types, a sole proprietorship is discussed under the following characteristics.
A business plan is the core of your business and a must have. It is the roadmap that brings your business idea into a reality. A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. It guides your business from the start- up stage to developing, growing and managing your business. It can also be used to get funding.
A business plan is a road map for a team or business and it can be used, as an eternal tool for potential customers and partners. The business plan should describe in details the entire business venture, technology behind it, the size of the target market, customers, competition, business model, team, financial needs and exit strategy. The business plan gives a company insight and allows them to think things through early enough in the process to ensure they have a well defined venture goals and objectives. It also gives the business direction to a clear path for the team to follow and implement on their venture.
Business plan - The ability to develop and execute a business plan. Manage finances well - Ability to manage finances including a thorough understanding of business financial statements.
Furthermore, the basic start of a business begins with a business plan. “A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume”