Business Creation 101
Business creation is the process by which a person or group initiates, operates and manages an entrepreneurial enterprise. Starting a new business may involve the generation of an idea for a new business, researching its viability as a new business, and establishing it as a small local or large multinational business organized as a corporation. The entrepreneur assumes the financial risks of the initiation and operation of the enterprise.
Entrepreneurship is a vital component of a healthy economy. Companies less than five years old create 1.5 million jobs for Americans each year. However, a lack of startup visas for immigrant entrepreneurs means that many businesses struggle to stay alive—at a cost to our economy and our workers.
Few business owners are successful without a passion that drives their efforts. This is why so much advice tells people to find something they love and monetize it. But a passion is not enough; it must also be something that others will pay for, and something you’re good at.
A business plan is an important tool for assessing the feasibility of a new business idea. It provides a framework for evaluating the market environment, establishing development objectives and defining commercial strategies. It also establishes financial forecasts and outlines the choice of legal form for the new company. It is a critical step in establishing the feasibility of a new venture and in securing financing, either from investors or a bank. Creating a business plan is not just a necessary task, it’s also a rewarding experience for anyone with an entrepreneurial spirit.