What is the step by step procedure to start a

business?
1. Define your business first. What do you want to do? Make a list of possible
businesses you can develop and write the pros and cons of each. Clarify your business model.

2. Check the feasibility of the business idea. Is it workable? Given your

resources, do you think there's a chance?

3. Onceyou've determined exactly what business to start, research

about the business -- how much will it take you to start the business, what do you need,
who are doing it, who is your target market, how are you going to reach your market. This is
your business plan. It is best to put it in writing, especially if you will be seeking loans or
investors as they will require a business plan

4. Find
out how much the business will cost and where you can get
the money. If your resources are not enough, where will you get money? Can you get money
elsewhere? If you really cannot raise the funds you need, are you willing to downscale the idea?

5. Decide
if this is a business that can be done alone by you, or
whether you will need a partner or you will hire employees. Aside from
you, who else will be involved in the business?

6.Once you find out that you can really raise the capital you need
and the personnel requirements, setup your business. Decide if you want
to be a sole proprietor, partnership, LLC, S or C corporation.

7. Go to your local county to find out the steps for business

registration, assumed name or DBA, and whether the business will
require a license or not. Or check the Web for information on starting a business in
your state, specifically from your state or local government websites. Then complete all legal and
regulatory requirements.

8. Start the process of setting up the business. If this is a website, then start
thinking of its contents, who will design the site, who will manage the site. If this is a restaurant,
start looking for location. If this is a recipe book, start contacting agents and publishers or look
into the option of self publishing.

9. Set up your office, whether at home or if you will lease an office

space. Purchase the equipment you need.
10. Start developing your marketing materials such as business cards, brochures,
flyers.

These are the functions performed by an entrepreneur.

1. Planning of the project: He is the organizer to conceive the idea of launching the project and to
program the structure of business.

2. Management: The entrepreneur is also responsible for the management of business. He tries
to have a least cost combination of factors of production.

3. To Face Risks: He faces uncertainly and bears risks in his business uncertainly comprising those
risks against which it is not possible to insure. He also faces the risk of other producers may enter the
market.

4. Distribution of Rewards: He is responsible of distributing the rewards to all factors of

production. He pays the reward in the shape of rent, wage, and interest and bears the risk of profit or
loss himself.

5. Sale of Products: An entrepreneur is also responsible of marketing, advertising. He wants to

maximize his profits by selling his product in the market.

6. Scale of Production: He decided the scale of business in according with the provision of capital.
Then, he takes the decision of what where and how to produce goods.

7. Joint stock Organization: In a partnership, the entrepreneurial functions are divided between
the partners. But in public limited company, the board of directors takes this responsibility with
nationalized enterprise; the entrepreneurial decisions are left to the government or a body to which
government has delegated its powers.
Functions of an Entrepreneur

An entrepreneur undertakes three types of main function. They are described in brief detail as follows:

 Organizational function:

An organizer mentally first of all decides certain things like what,

how, and how much to produce. He estimates the demand for the

commodity and initiates the production. He decides the location of

the industry, scale of production and estimates the availability of raw

materials, labor, capital etc.

Then he co-ordinates the other factors like land, labor and capital in

proper proportion, so that he can minimize the cost of production

and reap more and more profit by producing more and more

quantity at a cheaper price. He supervises the entire production

activity. After production is over, he finds proper market for his

product and sells them. From the sale proceeds, he distributes the

remuneration for other factor owners.

 Risk bearing function:

An organization not only organizes the entire production process but

also undertakes risks and uncertainties. An organizer starts

production with an anticipation of demand for his product. But when

he actually brings the product to market, there may or may not be

demand for his product. This is an non-insurable risk he has to

 undertake. Thus a brave organizer has to shoulder certain insurable

and non-insurable risks also.

 Innovation function:

An entrepreneur must be an innovator to survive in the market and

to retain the same position for his product. Innovation means

introducing new changes in production or technology or market for

the product. Profit as a reward for innovation is not a stable one. It

appears, disappears and reappears. Only the imaginative skillful few

will remain in the industry for ever.