Business Creation 101
Business creation is the process of starting a new enterprise. It involves researching your market and finding out if there is sufficient demand for the products or services that you plan to sell. You also need to consider how much it will cost to set up and run your business, and whether you have the funds to start it or need to obtain finance. The type of business you establish will depend on your industry, the market and what you are best at.
A small business is a private, for-profit organization that produces goods and/or provides services in exchange for payment. It may have one or more owners, called shareholders, who are entitled to a portion of the profits, known as dividends.
Entrepreneurship stimulates economic growth and creates jobs. It increases national income and allows governments to spend more on public projects, such as schools and roads. It can also increase wealth by reducing dependence on traditional industries that have reached their productivity ceiling, such as agriculture and manufacturing.
The first step in starting a business is writing a business plan. It outlines the goals and strategy for your business and serves as a roadmap to guide you from concept to completion. You can find free business plan templates and resources online. You will also need to register your business with the state and choose a registered agent who can accept legal documents on behalf of the company. All businesses must have a federal tax ID number, or employer identification number, which you can get by filing an application with the Internal Revenue Service.