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Frequently Asked Question(s)

વારંવાર પૂછાતા પ્રશ્નો

If you have money but no particular business in mind, how can you get enough information on the best business to go into?

The best way of choosing your business venture is to look at your experience and educational background. A thorough review will provide leads on the business field you should enter - do what you know best. Even more important, you must like the business field you are going to enter to bring the enthusiasm and self-confidence you need to make the business go.

If you have money but no particular business in mind, how can you get enough information on the best business to go into?

The best way of choosing your business venture is to look at your experience and educational background. A thorough review will provide leads on the business field you should enter - do what you know best. Even more important, you must like the business field you are going to enter to bring the enthusiasm and self-confidence you need to make the business go.

What are the basic survival skills you need to run a business?

The basic survival skills include a working knowledge of basic recordkeeping; financial management; personnel management; market analysis; break-even analysis; product or service knowledge; tax knowledge; legal structures; and communication skills.

What are the basic survival skills you need to run a business?

The basic survival skills include a working knowledge of basic recordkeeping; financial management; personnel management; market analysis; break-even analysis; product or service knowledge; tax knowledge; legal structures; and communication skills.

What special obstacles do women entering business face, and how can these obstacles be overcome?

Women are at last making inroads into business, not only as executives but as owners. There are many obstacles, chief among them the doubts that lenders, suppliers, and in some fields, customers have about women's ability to run businesses. These can be overcome with self confidence and a strong belief in your ideas. You should not be discouraged by being rebuffed by people who simply don't understand. As more and more women enter business and succeed, the process will become easier and easier.

What special obstacles do women entering business face, and how can these obstacles be overcome?

Women are at last making inroads into business, not only as executives but as owners. There are many obstacles, chief among them the doubts that lenders, suppliers, and in some fields, customers have about women's ability to run businesses. These can be overcome with self confidence and a strong belief in your ideas. You should not be discouraged by being rebuffed by people who simply don't understand. As more and more women enter business and succeed, the process will become easier and easier.

What are the most important factors that cause small business failure?

There are, of course, many reasons for the failure of new small businesses. One way of looking at the causes is to remember that a new business is starting at zero momentum; newly entering a market, having to establish supplier relations, finding proper financing, and training employees. To coordinate all these facets and start them simultaneously is a tremendous job. If you don't have experience and management capability, success won't be very likely. You'll also find that undercapitalized businesses, those without enough cash to carry them through the first six months or so before the business starts making money, don't have good survival prospects. In such cases, even businesses with good management can founder.

What are the most important factors that cause small business failure?

There are, of course, many reasons for the failure of new small businesses. One way of looking at the causes is to remember that a new business is starting at zero momentum; newly entering a market, having to establish supplier relations, finding proper financing, and training employees. To coordinate all these facets and start them simultaneously is a tremendous job. If you don't have experience and management capability, success won't be very likely. You'll also find that undercapitalized businesses, those without enough cash to carry them through the first six months or so before the business starts making money, don't have good survival prospects. In such cases, even businesses with good management can founder.

If you're trying to buy a going service business, how can you figure a reasonable price for the business that takes into account goodwill and business contacts in addition to the value of equipment and inventory?

There are many methods, but basically what you're trying to do is set a value on the assets and earnings record of the firm. The simplest way is to determine the "payback period," usually two or three years. That is, the net profit for two years would equal the goodwill value. A more complicated and accurate method called the "net present value" method is based on the cost of capital and a risk factor. For that method an accountant's help would be valuable.

If you're trying to buy a going service business, how can you figure a reasonable price for the business that takes into account goodwill and business contacts in addition to the value of equipment and inventory?

There are many methods, but basically what you're trying to do is set a value on the assets and earnings record of the firm. The simplest way is to determine the "payback period," usually two or three years. That is, the net profit for two years would equal the goodwill value. A more complicated and accurate method called the "net present value" method is based on the cost of capital and a risk factor. For that method an accountant's help would be valuable.

How long does it take a new business to establish a good public image?

A good public image takes a long time to establish (and only minutes to lose).
There is no set formula, but a good image depends on:

  • The service, products, and customer treatment you provide;
  • The market you're in;
  • How you stack up against your competitors;
  • The quality of your public relations and advertising programs.
If you're new to a market - and if you do what you say you're going to - you may establish an excellent reputation in 18 to 24 months.

How long does it take a new business to establish a good public image?

A good public image takes a long time to establish (and only minutes to lose).
There is no set formula, but a good image depends on:

  • The service, products, and customer treatment you provide;
  • The market you're in;
  • How you stack up against your competitors;
  • The quality of your public relations and advertising programs.
If you're new to a market - and if you do what you say you're going to - you may establish an excellent reputation in 18 to 24 months.

How do you find a good lawyer?

As with most personal services, you must have rapport with your attorney. The best way to determine this is to talk to lawyers by phone or visit them before you make a selection. Get recommendations from friends, or your banker. You're looking for someone you can trust and who will take an interest in you and your business.

How do you find a good lawyer?

As with most personal services, you must have rapport with your attorney. The best way to determine this is to talk to lawyers by phone or visit them before you make a selection. Get recommendations from friends, or your banker. You're looking for someone you can trust and who will take an interest in you and your business.

Do you need a lawyer to start a business?

No, but it's wise to get the best advice possible when you're starting out. An attorney is one source of the expertise you'll need to draw on.

Do you need a lawyer to start a business?

No, but it's wise to get the best advice possible when you're starting out. An attorney is one source of the expertise you'll need to draw on.

What form of business do you recommend for a new business?

Each legal form, sole proprietorship, partnership, or corporation, has its advantages and disadvantages. The one you should pick depends on your circumstances, including:

  • Your financial condition,
  • The line of business you're entering,
  • The number of employees,
  • The risk involved,
  • Your tax situation.
Don't assume, if you plan a one-person business, that sole proprietorship is the way to go. See your lawyer.

What form of business do you recommend for a new business?

Each legal form, sole proprietorship, partnership, or corporation, has its advantages and disadvantages. The one you should pick depends on your circumstances, including:

  • Your financial condition,
  • The line of business you're entering,
  • The number of employees,
  • The risk involved,
  • Your tax situation.
Don't assume, if you plan a one-person business, that sole proprietorship is the way to go. See your lawyer.

How can you find out what the prevailing costs are for a service business in your market area?

One way is simply to call competitors and ask their prices. Their prices will give you a lead. You could ask competitors' customers for the same information if you didn't want to go directly to the competition.

How can you find out what the prevailing costs are for a service business in your market area?

One way is simply to call competitors and ask their prices. Their prices will give you a lead. You could ask competitors' customers for the same information if you didn't want to go directly to the competition.