Whether you are running a startup or have been around for years, it is important to have a solid business plan in place. This document should include a list of goals, a business structure, a budget and a game plan for the first year of operations.

A business is any activity that produces or sells goods for profit. It can be a service oriented business or a product oriented business. A business owner may have one employee or several. In some cases, a business owner will hire an accountant to keep the books in order. A business may also be run as a sole proprietor or in a partnership with other business owners. In general, a small business is defined as having fewer than 500 employees.

A small business is defined by the US Small Business Administration as an enterprise that has fewer than 500 employees. There are many types of businesses but the following is a brief description of some of the more common types. The main responsibilities of a business owner are managing finances, acquiring start-up capital, obtaining permits and licenses, and training and developing employees. It is a good idea to have a team that you can trust to manage the day to day aspects of your operation. It is also a good idea to have a plan to outsource tasks to lower cost vendors.

While you are at it, a business owner must make decisions that are smart, practical and fiscally prudent. As with any endeavor, a business owner must take the time to learn about the rules of the game in his or her jurisdiction. The aforementioned is just a taste of the many issues that confront a modern day business owner. A business owner will need to be aware of his or her legal obligations, the federal licensing requirements and the state regulations for taxation. The business owner must also understand the laws of supply and demand. In some instances, a business owner will need to hire a team of experts to perform more complex tasks like marketing or accounting. In most cases, a business owner will operate under the auspices of a corporation, a limited liability company, or a partnership.

The biggest challenge a business owner faces is choosing which structure best suits their needs. An effective business plan will help a newbie to determine which type of structure is right for them. This is especially true if the business owner is looking to expand the enterprise over the long haul.

By Ariana