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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.
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.
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.
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.
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:
how, and how much to produce. He estimates the demand for the
Then he co-ordinates the other factors like land, labor and capital in
and reap more and more profit by producing more and more
product and sells them. From the sale proceeds, he distributes the
Innovation function: