1

AcademicPowerPoint

Steps In StartingA Small Business

2

Starting A New Business

• The process of starting a new business can be divided into a two stage process:

Business Concept Development Stage

Business Set-Up Stage

3

Business Concept Development Stage

• The prospective small business owner has to decide on the type of business that he or she will establish.

• An assessment should be made of the key characteristics of this type of business.

4

Business Concept Development Stage• This assessment should include:

• The expected future demand for the products of the new business

• The number of competitors that the new business can expect to have

• The quality of the product offered by competitors

• The product benefits (*) that the new business will offer to people

(*) A product benefit is a need that people have and are prepared to pay to have satisfied.

5

Business Set-Up Stage

• In the set-up stage, the intending business owner has to carry out a series of actions.

6

Business Set-Up Stage

• The actions include:

• Deciding on the legal structure of the business

• Choosing a location for the business

• Choosing a name for the business and registration

• Hiring employees

• Purchasing stock and plant and equipment

• Preparing a business plan

• Obtaining the finance needed to establish the business

7

Reference

• Material used in the PowerPoint slides and worksheets have been reproduced from the following references with full permission:

Business Management in Australia

– Ashley Doyle