Creating and Managing a New Business

There are many things to consider when creating and managing a new business. Planning a business involves many considerations, including:

  • choosing a business entity type
  • registering with required government agencies
  • acquiring licenses and permits
  • opening bank and credit accounts
  • adopting management agreements
  • adopting a business plan and organizational structure
  • adopting a marketing plan
  • developing a mission statement
  • developing a code of conduct or ethics code
  • joining relevant professional organizations
  • choosing a stakeholder set of employees, customers, suppliers, advisors, and investors

All of these actions should be researched and achieved in the 12 months or so before starting a new business.

One common reason small businesses fail is because of inadequate preparation and planning before beginning a new business. The reality of business practice is that no one can predict every potential issue or dilemma. Nevertheless, the resolution of unknown issues will be expedited and a process will be in place to address them through instruments such as management agreements, mission statements, business plans, and codes of conduct.

Moving a business from local to national or even international involves many additional considerations of management, structure, tax, law, culture, and strategy. Preparing in advance for such an expansion is a key element of successfully expanding to other markets. Those who treat international expansion as an afterthought frequently face a more difficult time when trying to transition to other markets. Moreover, many companies have blundered by not considering the cultural norms of targeted markets when attempting to expand beyond local distribution.