Starting a business either small or big; it involves the use of resources to achieve a given objective. Every specie is busy in some form of business activity of producing, exchanging goods and services. This project report is dedicated to the discussion of the target of and problems concerning starting and operating a business by an individual or group of persons as a proprietor ,partners or shareholders in expectation of profit subject to readiness in touch the risks involved.
People enter into business with the aim of getting profits as return on the capital invested by them. But there are other motives too.
(i) Livelihood:
Small businessmen start some petty shops with their limited ability to earn their livelihood.
(ii) Profit:
Profit is the significant stimulating factor underlying starting of a business enterprise.
(iii) Social Recognition:
In the modern society, businessmen are considered resourceful and that they are honored by the society. Wealthy and capable businessmen figure prominently within the public estimation. It is, therefore, natural for an individual to start out a commercial enterprise that might give him social prestige.
(iv) Public Service:
The urge to promote the welfare of the community may motivate some people to enter into business. As Spiegel said “business provides a superb opportunity for social and economic service of the very best order.”
(v) Personal Satisfaction:
To some people business may be a means of living and to several others it’s how of life-the practical embodiment of their mode of thinking. They enter into business in order to channelize their creative urge. So many humans want to be independent and strive to develop their dynamic talents without servings under any masters.
(vi) Power:
Power too may be a strong motivation force in entering a business. The prospect of becoming a boss lures many of us into business.
(vii) Protection of the Family Estate:
There are few individuals run a business of their forefathers and they would like to run it in order to protect their family prestige.
People desirous of entering into a business must know the ways of startup; so following are the ways by following which any fresher and business desirous can start their own business.
The joint-stock shares maybe bought by companies engaged in or proposed to be engaged in the manufacturing, marketing or any other type of business operations. OR By Starting own Firm OR By Gift or Inheritance Or By Promotion as Nowadays, mostly, large-scale enterprises are started by the technical cum financial process of investigation.
Promotion signifies the mixture of activities designed to bring into being an enterprise to work a business. It pre supposes the technical processing of a billboard proposition with regard to its potential profitability. The steps to be taken in promoting a business are discussed in short hour.
Meaning of Promotion:
Promotion of a corporation refers to the sum of the activities of all those that participate within the building of the enterprise upto the organization of the corporate and completion of the plan to exploit the idea. It happens with the deep consideration given to the ideas on which the business is to be based.
Gerestenberg has defined promotion as “the discovery of business opportunities and therefore the subsequent organization of funds, property and management ability into a business for the aim of creating profit there from”.
Individual who undertake all these activities are known as promoters.
Problems in Starting and Operating a Business Unit:
It has been noted within the preceding pages that conception of a thought isn’t enough to launch a commercial enterprise . Before the enterprise is brought into existence promoters need to assess the commercial feasibility of the thought conceived by them.
For this purpose an economic survey has got to be undertaken during a given region, city or location. This tour make the clear and comprehensive picture of the business planned and measures the extent of profit-earning capacity of the proposed undertaking.
The aim of the survey is to gauge how far the operations of the proposed business would end in profit. Profits depend upon the sales potential which successively depends on the planning and utility of the merchandise and therefore the probable demand for it within the competitive market. The surveys would also give a thought about the quantity of business which will be expected within the given set of conditions.
Tackling problems in starting a business are as under:
(i) Choosing the product;
(ii) Marketing the product;
(iii) Deciding about the size of the firm;
(iv) Purchasing the materials;
(v) Employing the needed personnel; and
(vi) Raising adequate funds to start the enterprise
By:
Hiba Murad
