Business & Career

Business is a type of economic activity that is done to earn money or livelihood. Business includes all those activities that are related to the production or distribution of goods and services. Business is earning a living through the process of buying and selling various types of products. Business is based on profit and loss. The literal meaning of business is to be busy. Business is an economic activity involving the production, purchase, sale, exchange and transfer of goods and services on a regular basis with the objective of making a profit. Business improves our standard of living. Business improves the quality of life of people by providing a variety of good quality goods and services at the right time and at the right place. Business provides employment thus providing opportunity to work and earn a living. The primary objective of business activities is to generate income by way of profit. No business can run for long without profit. Profitability is also essential from the point of view of business development and expansion. Finance, economic, marketing, leadership, time management are important if you want to do business.

A system is designed to meet business objectives. In any economy there are a large number of different types of business and production organizations. The number of national and international trading businesses, insurance businesses, banking businesses, transport businesses, manufacturing businesses and agricultural businesses is increasing. Some of these businesses are in the public or government sector, while others are in the private sector.

All these businesses require proper and appropriate organization to run successfully. How the business is organized depends on who owns and controls the capital involved in the business. But there are limits to its overall expansion. A partnership organization may have access to more capital and manpower, but it also has limitations. In recent times joint stock company (joint stock company) and business corporation are the most prevalent types of business organization. These types are very useful for doing business at national or international level. Co-operative societies have started to be established on a large scale due to the dangers of increasing profiteering and unreasonable concentration of wealth in the company. In the public sector, government accounts, government companies and public corporations are prevalent types of organizations.

The nature of the organization depends on the nature, size and other characteristic aspects of the business. The type of business organization depends on the nature of the product or trade or service. Capital, equipment and manpower required for the business also have to be considered while choosing the type of organization. Although a particular type of organization is chosen initially, the type can be changed later. But for that legal matters have to be fulfilled.

A business in which a single person is the owner of the business and all the management powers are vested in that person is called Sole Proprietorship or Sole Proprietorship. As the owner invests the capital himself, the profit or loss is his own. His responsibility in business is unlimited. Sole proprietorship is the oldest form of organization and numerous such businesses are found today. Such an organization is simple and easy to set up and does not have many legal restrictions. As a sole trader has complete control over his business, business management can be efficient and effective. He can take quick business decisions and maintain adequate business secrecy.

This type of business organization is flexible and has a lot of scope for economy. Since it involves direct contact with customers and employees, good relations can be established with them. This type is useful in terms of self-employment and is seen as an important source of income for the family. But there are many disadvantages or limitations in this type of organization. The most important drawback is the unlimited liability of the sole trader in the business. If the assets of the business fall short to cover the debts of the business, the debts have to be paid from his personal assets. Meeting the growing needs of a business is often beyond its reach. Since the business is small, it cannot hire a large number of employees and division of labor is not possible, so lack of specialization is seen in this type. A sole trader makes his own decisions to the best of his ability, but he is often prone to error. It has very little bargaining power in the market and cannot expand its business beyond certain limits, but for those who are bold and enterprising, this type of organization is suitable for expanding the business as per their own ideas.

In this type of partnership two or more persons join together to run a business for profit. A minimum of two persons is required to form a partnership, while the maximum number is ten members for banking business and twenty in case of other businesses. Registration of partnership is not mandatory. But if a partnership is to be recognized in law, it must be registered under the Partnership Act. Non-registration of a partnership imposes several limitations on it. Most of the advantages of sole proprietorships lie in this type of organization.

Additional benefits include greater capital availability, greater division of labor in management, and risk and loss sharing. Hence, there is relatively more scope for this type of growth, but due to lack of integrity and honesty in the partnership, as well as laxity of one of the partners, there is a possibility of closing the generation at the loss of the entire organization and alternatively the partners. Some types of partnership are possible like general partnership, limited partnership, voluntary partnership and special partnership.

The individual business and partnership forms of organization became unable to meet the needs of modern factories and markets that grew rapidly after industrialization due to their limitations. As a solution to that, a new type of organization, joint stock company, emerged.

Before setting up a company, it has to be duly registered. The business organization Company appears to have many advantages over the first two organizations. Therefore, even if the members change, the existence of the company will not be affected. The liability of the shareholders of the company is limited to the shares they have purchased. If the government's economic policy is liberal, companies can raise large amounts of capital from the public to expand their business.

Some businesses are run by central and state governments. Three types of organizations are prevalent for running public sector enterprises. In India, Post and Railways are managed by government departments. In case of some industries, the government has taken help of joint stock company type of organization. In order to control them, at least 51% of the share capital in such companies is kept by the government. The government also appoints the members on the board of directors of the company. The Ministry of the concerned department plays the role of shareholders of the company and supervises and controls the affairs of the company. Apart from this, the government can run the industrial business by establishing a public corporation through a separate law. Although such an initiative is sponsored by the government, it has full autonomy and avoids political interference. As a result such an organization can perform well in the public sector.

With the help of experts in management, it is possible to run the business in a scientific and disciplined manner. This type of organization also has some disadvantages. Setting up a company is complicated and the promoter has to incur a lot of upfront costs. As it is not possible for the shareholders to pay attention to the day-to-day affairs due to many reasons, management is done through the board of directors. If the strength and efficiency of the directors, officers and employees are abnormal, the company has to suffer losses. Some companies make their scope very broad. Such big companies are likely to exploit the customers by creating their monopoly in the market.

This business organization, which works on community basis for the personal benefit of the members, is based on democratic principles and people who have common needs and common interests come together to solve their problems by helping each other. Co-operative societies came into existence with the aim of curbing the vices of capitalism, profiteering, exploitation and centralization of economic power. In England around 1844, for the first time, consumers got together and started a consumer organization called 'Rochdale Pioneers'. It was from this that the cooperative movement emerged. It helped free consumers from the clutches of producers and middlemen. Meanwhile, cooperative credit societies were formed in Germany to provide loans to borrowers at reasonable rates. In the 20th century, the co-operative movement has spread all over the world and in many areas, co-operative organizations are protecting the interests of their members.

In order to form a co-operative society, at least ten persons must join together and register the society as per the provisions of the Co-operative Societies Act. The management of the organization is done by the management committee elected by the members. A salaried class of employees is appointed to carry out daily transactions. The government has extensive control over the functioning of the co-operative society. The organization has to prepare by-laws and conduct its internal affairs accordingly. Co-operative societies purchase goods directly from producers and supply them to consumers. Farmers or small producers can form cooperatives and supply goods to consumers through them.

Housing societies are established on cooperative basis with the aim of helping members and weaker sections of the society to build houses. Co-operative societies can protect the interest of consumers due to elimination of middlemen, saving in management cost, various tax incentives etc. Due to the functioning of cooperative societies, some defects appear to have arisen in them. Due to inefficient and indifferent management, differences and grievances among the members, cooperatives often fail to perform as expected. Sometimes the government policy is also seen to have an adverse effect on the growth of the cooperative movement, yet it can be said that the cooperative movement has brought about a revolution in the industry, being of special importance.

It's still a good time to start...

If you've taken this guide and are reading this page, chances are you're thinking about starting your own business. And, no matter which way the prevailing economic winds blow, we are not alone. By the time the recession hit in 2008, more and more people were feeling the entrepreneurial urge. According to the latest government figures from November 2008, over 200,000 new businesses registered for VAT (value added tax) in 2007. An increase of 23,700 over 2006. Although there were indications that the 2008 GPUs would not be available until late 2009. According to the Department of Business, Enterprise and Regulatory Reform, despite the deregistration, there would be only a small drop in VAT registrations for companies going out of business. A significant increase was expected. This is because many people who lost their jobs were starting out on their own.

Despite the recession, small and medium-sized businesses are a key driver of the UK economy. Gone are the days of hundreds of large companies employing thousands of employees. The number of ambitious entrepreneurs starting small businesses has increased in recent years, and their companies now account for 99.9% of all UK businesses and almost half of the UK workforce.

Starting a Business in a Recession: Pros & Cons of Business Models

Reasons not to start in a recession

People are spending less money
Raising money will be difficult
It seems dangerous at a time when everyone is afraid of risk

Reasons to start in a recession

It's cheaper to start now than any other time
So it takes less cash to get started than at any other time
Your opportunity cost is low
Businesses and people still consider some new options
Creative non-cash deals are easy to do e.g. partnership
Easy to hire good staff/consultants
Your positive energy will stand out in a sea of depression
Cheap acquisition

Technology has advanced to a point where it is now possible to start a global business from a laptop, making it possible for everyone from teenagers to retirees and those who want to dip their toes into the water sensibly. A wide range of finance is also available to help make your entrepreneurial dreams a reality. Although some major sources of finance such as banks and equity investors (who take stakes in your company in exchange for finance) have been badly affected by the credit crunch and are investing less in new businesses, money is still not available. If the idea is good enough and presented in the right way, people will want to invest in you. If you can get an investment through tough economic times, it's like a rubber stamp of success.

There has never been so much help and information for those looking to strike out on their own, and the government has been less adventurous in encouraging enterprise. It aims to provide students aged 16 to 18 with the skills, experience and support to learn how to set up and run successful and innovative businesses, or to become entrepreneurial employees. Skills that can be used in any professional field to grow an existing business and skills for life.

Entrepreneurs are people like you

The word 'entrepreneur' for some people has founded and run more successful businesses than most of us could manage in several lifetimes. But in reality, an entrepreneur is anyone who decides to go it alone and make the most of a business opportunity for themselves, no matter how big or small.

Nowadays, becoming an entrepreneur is becoming a legitimate career choice for more and more people. Gone are the days when you had to have years of business experience under your belt before you could even consider taking the plunge with your own startup. Before we get into how to start a business, here's a brief explanation of why a selection of successful entrepreneurs decided to start their own business.

People are eager to become entrepreneurs for various reasons. For some it is an opportunity to escape their mundane nine-to-five existence and dedicate their working life to something very close to their hearts. For 'lifestyle' entrepreneurs, the important part of the deal is not how much their business grows, but the impact it has on their lives.

David Creswell, the 27-year-old founder of the comics website, falls into this category. 'I don't care if I'm a comic geek, it's my hobby and I've turned it into a small business,' he says. ‘I'm proud of the service we provide and our customers are happy.’ For others, the motivation for a startup comes from realizing a gap in a market they know well. Self-confessed 'ski bums' Tim Slade and Jules Lever saw an opportunity to sell t-shirts to skiing holidaymakers and launched the hugely successful high-street chain Fat Face.

And for Dee Edwards, 29, that same kind of insight helped her launch Internet company Habbo. She says, 'I really believed that an internet business could be successful by using technology to run a company effectively and by taking advantage of the different ways people were changing the way they communicated. Whether it's t-shirts or technology, the world is full of people who can't find business opportunities that others can't. In fact, a lack of business experience can give you the kind of perspective that a blue-chip curriculum might struggle to make ends meet. Nowhere is it better portrayed than by Lena Bjork. Arriving in the UK from Sweden with no qualifications, she took a job as a kitchen porter, but quickly realized the country's service industry was not up to scratch. So she left work without a pound in her pocket or even basic equipment. She now runs In or Out, one of the most successful catering companies in the country.

To inspire you, here are profiles of four companies, started by entrepreneurs with very different backgrounds and ideas, who decided to start a business for the first time and succeeded.

Betfair

When Andrew Black, co-founder of Betfair.com, says: 'I've had a very varied career and I've done a lot', he's somewhat understating it. If ever there was an entrepreneur who stepped onto a potential path to fortune and success, it's Black. He had to overcome being expelled from university, being sacked and personal tragedy to head a business that gave established bookies William Hill and Ladbrokes a real run for their money. But every experience, Black insists, whether it was stocking the shelves at B&Q, caddying on the European golf tour, trading on the stock exchange, gambling for a living, or caring for his dying brother, he thought of Betfair while working on a secret project for GCHQ.

Creating experiences

Black's working life was delayed when his brother suffered a serious brain infection. With few jobs available, Black stopped working for the last two years of his life to care for his brother. After his brother's death, Black made a brief, and unsuccessful, stint on the European golf tour before landing his first serious job at 26, working in software. Over the next four years, Black's natural flair for figures saw him flourish, as he wrote heavy computer code and saw how big business, especially the stock market, worked. The high risk of stocks and shares caught Black's imagination and drove him to gamble.

'When you're on the trading floor, you trade a lot in a short period of time and it's like gambling,' he says. ‘I didn't have enough money to trade when I left.’ Instead, Black turned to more traditional forms of gambling for his kicks and his income. 'He won £25,000 on a £20 bet on a horse and then £30,000 on a £1,000 bet on a race,' he recalls. 'He's won about £50,000 in three months. It was a lot of money compared to what he was earning at the time.''

Black programmed his own model for betting on golf and football, and also played bridge for substantial figures. But even with a 'good' performance, it wasn't enough to keep him occupied. So he again turned to buying and selling shares. ‘I was seeing the whole mechanics of the New York Stock Exchange and I was having a fantastic experience in this incredibly exciting environment,’ he says. But Black's enthusiasm waned. He was red-handed after a disagreement over business ethics and returned to programming, 'making ridiculous amounts of money for minimal work' at a time when IT skills were in demand. However, his obsession with the stock market and his intellectual thirst for a challenge or a bet never went away. While working on a secret GCHQ project, he had time to think about how he could combine this interest with his IT expertise. He explains that 'we started work at nine and finished at five and if you weren't out of the office on the dot they got rid of you'. 'I lived in a little farmhouse and was alone.' But the solitude gave Black precious time to turn things over in his head and come up with ideas'. Its idea came from the functioning of the stock exchange. He explains that it's simple, Betfair is a cross-section of taking stock exchange technology to the gambling market using the internet. He says that during his career he has worked directly at the stock exchange, is a professional gambler and has built websites. He has been to all three places.

Big gamble

With Black's job as an IT contractor going well, he wasn't sure if it was worth the risk of starting his own business. Did he really want to leave his lavish lifestyle behind by going into the betting business? He says, 'In my heart I knew I had to do it because I didn't want to go to my grave with the thought of having a great idea and not actually making it happen'. However, before doing anything, Black needed a partner. 'I wanted someone who understood the business,' he says. But finding one was difficult until I met Ed Ray, a friend's brother. 'Ed was talking about a horse he had bet on but was complaining that he didn't win much,' says Black. 'I said: "Well, it wasn't to be, bookmaking will soon change everything." Ed said: “Tell me more,” so I explained the idea.'

After a while, Wray approaches to find out if Black has done anything about the idea, and Black asks him if he wants to be his partner. Wray agrees in principle, but not without some modifications. He said Black had the right product and the idea was great, but he thought the business plan was completely wrong. They figured if it was going to be done it had to be done right and they needed to raise some serious finance. The pair worked on the idea for the next five months and carefully planned the business. Finally, Betfair was born. Black and Ray wanted a traditional venture capital investment, but it turns out they missed the boat. Black says there was a company called Flutter before us. 'They were selling speculative eBay and they got a lot of funding. They didn't have the knowledge or substance that we had, but it was still terrible news at the time.''

Breaking ahead of the game

A competitor in the market turned down interest from venture capitalists and the pair were about to leave. Then he came up with the idea of pitching his concept to rich people he knew in town who had money to invest. 'We'd pick a bank, make a presentation and two or three people would leave the room with £25,000 invested,' says Black. ‘It soon added up and we amassed £1 million quickly.’ They added £30,000 each and didn’t pay themselves for the first eight months. The site was launched in June 2000 on the eve of Derby Day, one of the biggest days in the horse racing calendar. With funds tight, Betfair deployed guerrilla tactics to promote the launch.

'We marched through the town with coffins chanting "Death to the bookmaker" and staged fake demonstrations with "Betfair unfit" demonstrators to gain some publicity," explains Black. These antics made the front page of The Times' business section. Betfair traded £30,000 in its first week, but rivals After merging with Flutter, there was a really big impact. Black says there was a lot of confusion when they launched the site. They had all this money, but six months later people were using us. They had a big advertising budget, but they had a There was also a message board where people were discussing Betfair. Punters were coming in and leaving us. After about eight months, they realized we had 97% of the market, yet they spent 10 or 20 times what we did. At that point they realized that the next The way to go is ours.

The merger was negotiated with Betfair to secure favorable terms, including top-class chief technology office, hardware and, most importantly, access to the large punters needed to drive the business forward. Black and Wray haven't looked back since, establishing Betfair as the leading online betting website.

So instead of the founding of their rival Flutter being the end of their dream, it became the catalyst for their enormous commercial success.

Jigsaw research

Sue Van Meeteren and Ann Morgan set out to replace the bureaucracy and board meetings of the corporate world with a fresh balance of home and egalitarianism, both as they were doing it and on their own. Almost a utopian view of how to run their own business. Their mission was to be a unique company, individual in its approach, to stand out like a small fish in a big pond.

Dissatisfaction to motivation

Van Meeteren and Ann Morgan both had a business in market research and together they launched Jigsaw Research in 1998. What is particularly interesting is that Sue Van Meeteren and Morgan were not exactly minions in a great corporate machine. Van Meeteren was managing director of his previous employer, industry giant Research International (and with the company for seven years), while Morgan was his deputy. Both of them were members of the UK Board of Directors and were very influential in the context of the company being part of a larger conglomerate. But both wanted to break free from their corporate trappings and make a decision that would shape their future. They should simply switch to another leading agency or leave their secure and lucrative jobs. Risking it all by launching a new name in an already crowded market research field. He decided to go it alone, confident that he could attract business quickly and the support of some of his existing customers. His aim was to create a new model; A new way of working. The seed for his new concept was sown when some Research International (RI) clients complained to him that they were dissatisfied with the approach of a large agency and wanted more access to more senior researchers. Sue Van Meeteren and Morgan felt there was room for a smaller company that focused more on the needs of its customers.

Coping with culture shock

However, there was one piece left to slot into the puzzle before Jigsaw Research was launched. Van Meeteren and Ann Morgan's former RI colleague, Jo McDonald, kept in touch with them and it was her encouragement that inspired them to start a new business instead of going it alone. She completed the launch team. Of course there were other smaller market research firms, so it was imperative for Jigsaw to establish itself as unique. It does this by offering an integrated approach by handling two main types of market research (qualitative and quantitative), while most smaller agencies specialize in one or the other. It was clearly going to be a challenge, but with strong marketing and business qualifications behind them, with years of experience on the job, Van Meeteren and Ann Morgan were confident they could pull it off. Both Van Meeteren and Ann Morgan's personal lives came to a head as they started families. This made them more determined than ever to rid themselves of the 12 hour corporate days they were spending in RI. Both of them wanted a business where they could control the growth rate. They were flexible enough to accommodate their family commitments. 'In the beginning, our ambitions were very low,' Morgan emphasises. ‘We certainly weren't trying to take over the world.' If they want to spend more time focusing on family life and less time on expansion, or if they want to take on a small or charitable client that isn't very profitable, they can.

The concept seemed right and the timing turned out to be right, but what Jigsaw's founders hadn't planned for was the culture shock. Certainly they were eager to lose the corporate lifestyle, but they found the status quo difficult to handle at first. From their positions at the top of the corporate tree, Morgan described the stark contrast of finding himself sitting wondering if a client would call him. The prestige and professional self-respect they used to have is gone. It was also seen that they had to make huge financial sacrifices for many years. As with any new business they had to be frugal at first, so the cat's salaries were low and the team was determined to run a tight ship initially despite the cultural change. They launched Jigsaw with £40,000 saved between them, which was relatively modest for a startup. This allowed them to avoid overdrafts or bank loans and associated repayments that could affect cash flow in the early stages. They kept overhead low, spending only on what they needed, such as serviced office space, computers and letterhead. This meant they could return £40,000 in the first two years, but salaries were suppressed for longer.

The key to Jigsaw's early success was the contacts and experience of its founders. They knew some RI clients who were looking for new suppliers and American Express, Shell and PricewaterhouseCoopers soon came on board but initially with smaller projects, so Van Meeteren, Ann Morgan and Jo McDonald could cope and provide a decent quality service. Meanwhile, word was spreading and attracting more customers to the business. This means they are in the privileged position of not having to do any marketing.

The balance of the team was also crucial as Jo McDonald set up the administration and financial side of the business, Van Meeteren and Ann Morgan focused on developing their new business model and the resulting client work they wanted to actually do. ‘She became sort of the unofficial finance director, but operations and facilities manager was also part of the job description,’ explains Ann Morgan, who can make or break a company with good support. She adds, 'Bringing Jo McDonald on board was the smartest thing we did.

Although Jigsaw had a dream start from a business perspective, an early client win with Ann Morgan's pregnancy meant they had to take on staff in advance of providing the necessary maternity cover. Hiring two former colleagues made the process much easier than before, and by the end of the first year the company had five employees. Of course experienced artists needed to match the salary, but as business boomed, Jigsaw could afford to pay market rates. However, this was certainly not the case with the founders, who took less money than they would have commanded as employees elsewhere. But according to Ann Morgan, the sacrifice was worth it. 'The benefits have greatly outweighed the downsides,' she says. Jigsaw has become an established and successful mid-sized agency. But despite its size and continued growth, the principles on which the founders built the business have never been compromised, focusing on customer care, excellent service. At least not a board meeting with bureaucracy and sighs.

Bigger feet

Many business opportunities arise from everyday frustration, but it still takes a smart entrepreneur to take advantage of such a gap in the market. You are only 16 when you achieve this, however you are an inspiration to anyone thinking of starting their own business.

Oliver Bridge, a schoolboy from Cambridgeshire, has found himself in front of BBC and CNN cameras, as well as having his face in various newspapers since starting Bigger Feet. Despite his tender years, Oliver Bridge is undeterred by the exposure he has gained, showing a business brain that belies his years. He had a plan and executed it and understands the importance of getting good publicity.

'We're not interested in bringing a venture capitalist on board, because they want a bigger piece of the business, but there are other ways to expand the business,' says Oliver Bridge. "They say we've gone on CNN and the BBC and gotten a lot of coverage."

Seeing opportunity in despair

Bigger Feet is an online shoe retailer for people with larger than average ankles. The business was born out of Bridge's own frustrating experience. Oliver Bridge says I was sitting in the shop and I can't find any shoes and it's annoying that someone has to sell them, then my mother said why don't you start your own business? Also he says when I thought about it, I decided it was a distinct possibility.

Apart from learning that he was just one of the many people at his school, Bridges did some research and discovered that around one million people in the UK have big feet. Males above 12 and females above 9. So after the market for his idea (or rather his mother's) was pretty much established, he decided to go for it. He also knew someone who had started his own business, so he thought it was a realistic idea. (The man in question, Paul Wilkinson, is now Bridge's business partner and an adult guarantor for banks under the age of 18 who can't get their money back.)

Since its closure, Bridges has faced some of the same problems that adults looking to start a business face. Just as many find it difficult to hold down a day job and work on a launch, Bridges was concerned about how to find the time. 'I was a bit worried at first, I thought I wouldn't be able to run a business and do my school work at the same time and put it off until I was older,' he admits. 'But I thought I should go for the opportunity, it can't do any harm, it won't cost that much money and we can always hire staff if it gets too busy.

Another fear that older entrepreneurs don't face is that people won't take them seriously because of their age. Fortunately, this was largely unfounded. 'It's been a great response,' says a relieved Bridge. 'Just some comments about my age. People treat me like an adult, and if anything they respect me more because I'm young and going for it.'

Jumpstarting the modern way

A family home set up with a small office space to store shoes can be held by internet providers as a demonstration of the web's low-cost flexibility. Bridge says that so far we have only put £4,000 into the business from our savings, which is a really tight budget. A website allows you to present something very professionally at a very low cost. Our website probably rivals that of a medium-sized business, when we operate from a small office. It is very flexible, because it is all internet based. We are going on holiday to Barcelona in two weeks and will be running the company from Spain.

Finding stock

The key to the success of any retail business is finding the right suppliers and dealing well with them so that you can maximize your profits. When you hear about a deal Oliver Bridge cut with a wholesaler to supply him with shoes, it's again hard to believe he still can't legally vote or drink. After attending various trade shows in the UK and Europe, he agreed with a UK distributor to sell the boots as he needed them. So he rarely has more than 30 or 40 pairs, which cuts down on high costs. Almost perfect conditions to come in as a retailer.

Bridges explained that since we weren't already placing bulk orders, he said that would be fine. We are not a credit risk for them. 'We're only placing relatively few orders, so if it all goes belly up, they'll only lose a little money. We give them access because we need them, so we reduce liability. If we don't get an order for a month, we just have to pay our phone bill. We won't go out of business, we'll just be stagnant for a month.'

A significant headache for Bridges is the reluctance of Nike and Reebok to supply him with trainers. Even in direct contact with them, he felt small, they didn't want to listen to him at all.

Oliver Bridge says we went up to a Reebok representative at a trade show and he gave us business cards and basically told us to get lost. He says we wrote some letters to Nike and they just moved us from one department to another. Big brands are not interested in small business because they think it tarnishes their image. It's really stupid, they should sell it to everyone they can find because eventually people will get hold of Nikes either directly or indirectly. If they sell directly to us, they will surely make a good profit.'

Media interest (and Google ads) understandably boosted sales, meaning his age has generally been a boon rather than a hindrance. Bridges, meanwhile, insists that Bigger Feet is a friendly, personal company, and despite its insistence on quality, it has certainly benefited from a niche market and cheap prices. He insists that we do not import waste from China.

Stay ahead in personal development

His family are happy to step into the breach when his workload increases with A Levels, and with many impressed school friends, Oliver Bridge would be forgiven for thinking he has made a career out of it. But he plans to attend university before making any definitive decisions. So clearly his feet are on the ground. Oliver Bridge says the business might be able to pay my tuition fees, which would be great. He says he doesn't think it will grow into a multi-million pound business empire, although you never know. And he might be right, because there certainly aren't many big shoe retailers out there.

Bebo

For proof that persistence is an important entrepreneurial trait, look no further than Michael Birch, founder of social networking website Bebo. Within 18 months of the launch of Bebo's website in 2006, around 28 million young people signed up as members. But it wasn't an overnight success for Birch. Ever since he quit his IT job, he had been stigmatized for many years and Bebo was his sixth venture.

Climbing the learning curve

Michael Birch recalls that it took three years of effort before three years of success. It was a learning experience. Just because something fails doesn't make it a total waste. You will learn from it, maybe notice an element that will work well and leverage it in a new business.

Birch had always dreamed of being an entrepreneur, and the rise of the Internet gave him the boost he had been waiting for. Michael Birch says I quickly realized it was the prefect medium, and I already had half the equation, because I understood the IT side of it.

Michael Birch has had some success with his previous website BirthdayAlarm.com, a diary alert website that reminds you of important dates via email to stop you forgetting people's birthdays and anniversaries. Once this was successfully launched, he started experimenting with online social networks, which have now become hugely popular. Michael Birch says 'I was fascinated by early things like Sixdegrees.com.' ‘I had ideas about how that content could be improved.’ This resulted in Ringo.com, which proved an instant success and surprised Michael Birch and his team. It quickly became the second largest social network and required time and resources that Michael Birch could not afford.

Unable to keep up with the growth, Michael Birch sold Ringo.com just three months after launching it. Michael Birch says 'We decided to sell and focus on other things we were running at the time.' But Birch was far from done with social networking, which was gaining momentum as home Internet connections reached critical mass for the first time. He saw how people interact with each other, how music and video can integrate with other forms of media, and how everything that's suddenly hot fits in easily.

Finding the right niche

Michael Birch knew he couldn't launch any old social networking website. He wanted to find a niche to give himself the best chance for success. Finding a niche was a unique proposition. The field was growing rapidly and that meant competition. So he decided to get the youth to understand exactly what they want and don't want from a network host and a product that matches their demands. At first it meant being as inclusive as possible. Michael Birch says 'We always intended Bebo to be a comprehensive social network.' He deliberately made the website less complex and less feature-rich than some of its competitors.

Michael Birch says it's designed to be simple. 'You can register, get a home page and get started in minutes. Other sites put people off because it's too difficult.' The key is to create an environment that encourages young people to network with each other. Michael Birch explains that the effort is to promote a healthy community, rather than trying to dictate how that community behaves. They say 'we control things like pornography or it will grow, but we won't delete anything because we think it's stupid. If you want to create a profile for your pet, that's fine with us. We are also careful about using the right language, treating people with respect, making it light and funny.'

Focusing on the customer

Michael Birch knew it would take a lot of thought to get it right, as the youth market can be harsh critics, so he focused more on adapting the environment to the people who use it than making it high-tech, all singing and all dancing with a total consumer focus. He insists that Bebo's modest aesthetics and simple functionality, with its very limited ad spaces and contextual controls, were fundamental to building credibility with its target market. 'It was important that we weren't too corporate,' says Michael Birch. 'If you're too corporate, the social network society will react against that.'

This makes it difficult to promote the website as mass marketing is clearly not. In the end Burch took a big risk and did almost no advertising or promotion when Bebo went live in July 2005. He posted Bebo's link on BirthdayAlarm.com, the social website he created years ago, for just two days and let the internet take its course. He says that 'we literally planted it with the first few people and let it grow on its own.' And how it did!

Forward financial planning

Bebo was very cheap to launch, with no marketing costs or concerns about key premises and equipment costs. At first his and his co-founder wife Xochi's salaries were included in BirthdayAlarm.com profits along with the fees of the two technical programmers he employed. The main expense was new computer servers to support the expected new traffic, as Birch decided he would not repeat the experience he had with Ringo.com.

Michael Birch says 'Within a month Bebo was making money from ads.' 'It took another month for that money to come in, so in eight or nine weeks it was cashflow positive.' The ads were sold by online advertising agencies that specialize in selling ads on other people's websites, which helped keep costs down and let Birch do what he does best and focus on developing the website.

Michael Birch Another good move is to use off-the-shelf software to post ads on a website instead of developing it from scratch. A common platform means that ads can be sold in different countries, even if Michael Birch and his team are only based in one country. It capitalized on the fact that soon Bebo had a large number of users worldwide.

Growing business from startup

Bebo's membership grew so quickly that within a year the site had 28 full-time employees, and Birch found that recruiting was his biggest challenge. Michael Birch, says 'It's been tough.' 'We really focus on recruiting and interviewing.'

Although keen to maintain a small-business culture, in May 2006 Michael Birch took the big step of securing a $15m venture capital investment from Benchmark for a stake in an undisclosed company. Michael Birch says 'We raised it because it's good to have a cash buffer even if you're a profitable table.'

Bebo's revenue comes solely from advertising, but Birch isn't willing to threaten to destabilize its growing community by selling more ad space or making it too intrusive. He realized that Bebo's members were his lifeblood and would rather make profits slowly. 'Obviously we can make a lot more money in the short term with advertising, but it's a condition of growing a community that isn't fair and people aren't going to respond well,' says Burch. 'We are aiming to make money, but not as much as possible. The aim is to grow the business and we think we can do it faster without being greedy and ultimately, we will have a much bigger business that we can make more money from.' And with millions of members already online, and more signing up every day, it seems Michael Birch's cautious customer-centric approach is paying dividends.

Expert opinion

Stay ahead of the game

The National Register has some tips on how to get the most tools to get your startup off the ground.

In today's competitive environment, a catchy, quirky name and image is not enough to start a business and attract the attention of potential customers. With a crowded and sometimes saturated market, there are many other factors to consider.

Online presence and business name issues

Although it wasn't that long ago when many were skeptical of the e-commerce revolution, today in the business sense if you're not online, you're not alive. Nor is it a straightforward choice of 'Should I get a .com or a .co.uk?' There are many domain suffixes to choose from including .eu, .tv and .mobi and the list keeps getting longer! So there are countless website design options to consider 'Do I want Flash? Do I need a shopping basket? How much webspace do I need?’ The list goes on and on…

Once you're finally up and running online, you're competing for literally millions of website views, and that's where search engine optimization comes in. Now it's not enough to just have a website, you have to ensure it. Can be found through many online search engines. So you have to consider pay per click, metatags and sponsored listings among other options.

Of course all these preferences can be expensive, sorting out branding and trademarks, business names and company names. You will need to find out whether your chosen business name, company name, domain name and trademark are already in use in relation to your chosen business type and desired market area. You should then consider registration to protect your corporate identity.

Time management

Time is a commodity that is very precious in today's business world and is often in very short supply. Most owner managers want to run and manage their business within their area of expertise and not get bogged down with additional responsibilities. But unfortunately, in the real world you can't run a business without paying attention to them and making sure you set aside enough time for them, either by yourself or someone else.

Stay ahead of your competitors

Equally important is ensuring you stay one step ahead of your competitors and constantly monitoring and evolving as needed. This may include frequently checking whether your current trading style is being copied and periodically updating your corporate image, ensuring it does not become tired or outdated. The modern business environment is constantly changing and if you don't keep up, your competitors will soon overtake you.

Keep up with business news

Following on from the last point, owner managers of businesses, be they sole traders, partnerships or limited companies, need to keep up to date with the latest business news, changes in legislation and financial updates. Whether business is good or bad, whether the economic climate is optimistic or pessimistic, it is important to keep abreast of current trends.

Use the free tools available on the internet and don't be slow to seek advice and guidance from experts in areas where you may not have the time or knowledge.

10 Reasons to Start a Business

Being your own boss: If you own your own business, you only have yourself to answer to. Being your own boss gives you the freedom to work your way and execute your own plans. Of course, you live or die by your decisions, but that's the best part, right?

Doing what you love or at least have an interest in: The good thing about being an entrepreneur is that you can choose what kind of firm you want to start and where. So, if you have done your research properly and there is a gap in the market, you can turn a hobby or interest into a profitable table enterprise.

Playing by your own rules: Start your own firm and you have to set your own deadlines. Of course, you won't just be in bed until 2am. You will need self discipline. But meeting your own goals can be a great motivator to work hard and drive the business forward.

Freedom of expression: If you've thought about going it alone, you've probably thought about how to do things your way. If you have the freedom to express yourself, develop your concept in any way you choose. Of course, there may be financial constraints, but you will have the opportunity to be creative with your passion.

Plenty of support available: The news is full of the amount of red tape and taxation that small firms face every day. However, a number of solutions have been introduced over the years, making it easier to go it alone. From small firms loan guarantee to various inner city projects, the government cannot be accused of doing anything for budding entrepreneurs. With the Prince's Trust, Shell Livewire and other support organizations also up and running, you should be able to secure the help and funding you need to get started.

Make a fortune or at least enough to survive: There are countless stories of entrepreneurs taking a great idea, successfully implementing it, and reaching their first million by the end of the year. Although the startup process can be difficult, with long hours and little money not uncommon, if you run your business well, the rewards can be huge. And from a purely selfish point of view, you'll get most of the profits yourself.

Doing various things: One minute dealing with spreadsheets, suppliers and then a look around your new office. The work of an entrepreneur is not only busy but also very varied. If you want a career where every day is different, going it alone might be for you.

Get another career: Of course, if you don't want to give up a regular income, you can always have the best of both worlds and remain an employee while running your own organization. Although juggling the two can be difficult, being on the successful side should be a worthwhile option. Do something that interests you and go for it.

Minimizing travel by setting up closer to home: Although most small firms operate from offices, many entrepreneurs find that working from home helps keep costs down in the early stages. In addition to having a familiar, comfortable environment to work in, you don't have to deal with the daily hassles of public transportation or bumpy roads.

Making your big dream come true: You might think that starting a small company involves nothing more than having your own desk and hiring a few extra employees. However, it is possible to make it really big, just think of the late Anita Roddick, who became a Dame for her entrepreneurial achievements. She opened a small shop in Brighton in the 1970s. Before long Anita Roddick had a chain of Body Shop stores across the UK and was launching her concept in the USA. So don't dismiss your dreams as mere fantasy, they can really happen. what are you waiting for?

Can you do it too?

The case studies highlight the qualities an entrepreneur needs, the most important of which is passion. No matter how much money-making potential your business has, don't expect anyone else unless you believe in it? It can take your confidence a long way. Passion goes hand in hand with commitment to work. From day one you have to work hard, often leaving friends and family to get your venture off the ground. Ask yourself if you're willing to make that kind of sacrifice and if you can motivate yourself to put in those long, long hours. If you're the type of person whose New Year's resolution lasts until January 2nd, you might want to rethink whether you've gotten it, especially when things aren't going your way.

Also, you may have noticed that you are likely to go through all of this on your own. Getting out of the office may seem like heaven now, but soon you may miss the office gossip and backchat. You need to dig deep to find the emotional resilience to keep you from losing the plot when no one is around to lend a helping hand. So not just anyone can become an entrepreneur without you needing a paper qualification. But if you feel like you've got it, it could be one of the best decisions you've ever made.

Your legal colleague

Are you worried about whether you can put together a first-rate business plan and loan application? don't worry How to Write a Business Plan has detailed forms and step-by-step instructions to help you create a thoughtful, well-organized plan. Coupled with your positive energy and desire to succeed, you'll be able to create a business plan and loan package that you'll be proud to show the loan officer at your bank, Small Business Administration. After working with hundreds of business owners I have noticed one universal truth about business planning.

Writing a plan is a journey through one's mind. A partnership and corporation plan also usually has the vision and energy of an individual to take an idea and turn it into a business by writing a business plan. For that reason this article addresses husband and wife as single persons rather than as a team, group, committee, partnership or corporation. And you'll find that the same financial and analytical tools needed to convince potential lenders and investors that your business idea is sound can help you decide whether your idea is the right business for you.

What kind of plan do you need?

You can use How to Write a Business Plan to write any type of plan that suits your needs:

Complete Business Plan:

A complete business plan is especially useful for people starting a new business. This plan is great for convincing potential backers to support your business. If you answer all of your potential backers' questions, you'll be more successful in raising the money you need. A complete plan includes title page, plan summary, table of contents, problem statement, business description, business accomplishments, marketing plan, sales revenue forecast, profit and loss forecast, capital expenditure plan, cash flow forecast, future trends, risks facing your business, personnel Elements should include a plan, business persona, staffing schedule, job description, specific business objectives, personal financial statement, personal background, appendices and supporting documents. Also, the business plan should include Service, Partnership, Corporation, Cooperative, Franchising, Joint venture, S corporation, C corporation, Small business, Sole proprietorship, General partnership, Nonprofit organization, Privately held company, Limited liability company, Private company limited by shares.

Quick Plan (One Day Plan):

If you know your business, are able to make financial projections and have done the necessary research, you can prepare a plan in a day. But before creating a plan, understand that a quick plan is a stripped-down version of a business plan. It won't convince you or your potential backers that your business idea is the right one. This is only suitable if your business idea is very simple or someone has already committed to support your venture. A stripped-down quick plan consists of a title page, plan summary, table of contents, problem statement, business description, business accomplishments, sales revenue forecast, profit and loss forecast, cash flow forecast, capital expenditure plan, appendices, and supporting documents.

Customized plans:

You can start with a quick plan and add elements of a full business plan as you need. When deciding what to exclude and what to include, ask yourself:

Which of my statements are strongest?

What statements do my supporters want to see?

Note that the appendices contain blank forms as well as business plans for small service businesses, manufacturing businesses, and project development. Forms for calculating sales forecasts, personal financial information, profit and loss forecasts and cash flow forecasts are provided in Microsoft Excel spreadsheet format and include useful formulas for calculations.

Getting started:

Before you sit down to write your plan, you'll want to gather these essentials:

A word processor
A calculator or computer spreadsheet program
8½" by 11" size paper
Several pencils and a good eraser
Access to photocopy machines

A firm believer in writing your first thoughts down on paper and letting them rest for a day or two. You can then edit, revise and expand to get a more complete statement.

Most people realize halfway through writing their plan that they need to change their assumptions or some of the plans they've already written. The best advice is: Plan based on your basic assumptions. This way you can see the financial impact of your ideas and it will be much easier to make appropriate changes in the second draft. If you start revising individual parts of a plan before you have the whole picture, you'll waste a lot of energy.

Benefits of writing a business plan

What is a business plan?

A business plan is a written statement that describes and analyzes your business and provides a detailed forecast for its future. A business plan covers the financial aspects of starting or growing your business, such as how much money you need and how you will pay it back.

Writing a business plan is very important. So why take the time to write this plan? The best answer is the wisdom gained from millions of business owners just like you. Almost without exception, every business owner with a plan is glad she has a great plan, and every owner without a plan wishes he had written a great plan.

Why write a business plan?

Here are some specific and immediate benefits of writing your business plan.

Helps you earn money

Most lenders or investors require a written business plan before they will seriously consider your proposal. Some landlords also require a good business plan before they will rent space to you. Before committing to you, they want to see that you've thought through the critical issues facing you as a business owner and that you truly understand your business. They can also ensure that your business has a good chance of success.

About 35% to 40% of people in business today don't know how money flows from their business. Writing a business plan in this article teaches where money comes from and where it goes. Is it any wonder your backers want to see your plan before considering your financial request?

Potential business owners are just as potential lenders and investors. If you have a well-thought-out business and financial plan that shows a good chance of success and you work hard, you will get the money you need. Of course, it may take longer and require more work than you expect, but if you believe in your business you will eventually succeed.

Helps you decide whether to go ahead or stop

A major theme of the article may surprise you, it's as simple as it is important. You, as the potential business owner, are the most important person to convince you of the soundness of your proposition. So, much of the work you are asked to do here serves a dual purpose. It is designed to answer all the questions that potential lenders and investors may ask. But it will also teach you how money flows through your business, what the strengths and weaknesses of your business concept are, and what your real chances of success are.

The detailed planning process described in this article is not foolproof but it will help you identify and improve your business concept. If this analysis shows that your idea won't work, you may avoid starting or expanding your business. This is very important. It goes without saying that the ultimate success of many entrepreneurs is due to the earlier decision not to start a business with inherent problems.

Lets you improve your business concept

Writing a plan allows you to see how changing parts of the plan increases profits or meets other goals. You can tinker with individual parts of the business without spending cash. If you use a computer spreadsheet to create financial forecasts, you can try different options more quickly. This ability to fine tune your plans, business design increases your chances of success.

For example, your idea is to start a business importing Korean leather jackets. Everything looks great at the beginning of your plan. Then you read an article about the declining exchange rate between the US dollar and the Korean currency. After doing some homework on exchange rate fluctuations, you decide to increase your profit margin on the jacket to compensate for the expected decline in the purchasing power of the dollar. This change shows you that your prices are still competitive with other jackets and will increase your average profit. You are now protected against any possible drop in exchange rates.

Improves your chances of success

One way to look at business is that it is a gamble. You open or grow a business and gamble with yours and the bank's or investors' money. If you're right, you make a profit and pay off the debt, and everyone's happy. But if you guess wrong, you and the bank or investors can lose money and experience the discomfort of failure. (Of course, the bank is probably protected because it holds title to the collateral you put up to secure the loan.)

Writing a business plan helps overcome the odds. Most new and small businesses don't last long, most small businesses don't have a business plan. Is it just a coincidence or is there some connection between these two seemingly unconnected facts? Let someone else prove the connection wrong. Why not be cautious and improve your chances by writing a plan?

Helps keep you on track

Many business owners spend countless hours dealing with emergencies, simply because they haven't learned how to plan ahead. This article helps you anticipate problems and solve them before they happen.

A written business plan gives you a clear path to the future and makes your decision-making easier. Some problems and opportunities may represent a change in direction, while others may be distractions that enable you to avoid them by referencing your business plan. The black and white part of your written business plan will help you face the facts if things aren't working out the way you hoped. For example, if you plan to make a living three months after startup, and six months later you're in the hole at $100 a day, your business plan should help you see where changes are needed. If you approach things with a "just another month or two and I'll be there" attitude instead of comparing your results to your goals, it's all too easy to create the illusion that a business that doesn't continue will never make it.

Problems beyond the plan

This article is written to give you an overview of the factors that determine success or failure in a small business. Investors, experienced lenders and entrepreneurs want a plan that takes these issues into account. Of course, this article cannot cover everything. Here are some of the key business elements that came out of this initial planning process.

Bookkeeping and Accounting

This information discusses the numbers and concepts needed as a business owner to open and manage a small business. It is your responsibility to set up bookkeeping and accounting systems and ensure that they function adequately. (Some instructions for setting up the system are provided in the following information.)

One of the items generated by your accounting system will be the balance sheet. A balance sheet is a snapshot at a particular moment in time that lists the money value of everything you own and everything you owe someone else.

Tax

Although there are some mentions of tax issues throughout the article, most of the planning information does not discuss how taxes are calculated or paid. This information focuses our efforts on profitability and positive cash flow. If you make a profit, you pay tax and if you don't make a profit, you pay less tax. A CPA - certified public accountant or tax consultant can help you with tax strategies.

Securities Laws

If you plan to raise money by selling shares in a corporation or limited partnership, you may be subject to state or federal securities regulations. However, a full discussion of questions such as whether you can borrow money or take on a general partner without being affected by securities laws is beyond the scope of this information. For now, note that you must comply with securities regulations after you complete your plan and before you take any money into your business from the sale of shares or partnership interests.

Your management skills

This information shows you how to write a very good business plan and loan application. However, your ultimate success depends on your ability to execute your plans, your management skills.

Issues specific to your business

How successfully your business relates to the market, business environment, and competition can be affected by patents, franchises, foreign competition, location, and the like. By necessity, this information focuses on principles common to all businesses and does not discuss specifics that differentiate your business from other businesses. For example, this information does not discuss how to price your products to meet your competition. You know enough about your chosen profession to answer this question.

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