Business Ethics and Entrepreneurship

Business Ethics and Entrepreneurship

Abstract

When thinking of starting a small business there are multiple things that must be considered. Is a business plan needed, and if so why? How will one finance this business and what are the legal issue's that could come up? If this is to be a family run business what problems could the married couple face? In this paper I will explore each of these questions and provide detailed answers.

A business plan defines your business, identifies your goals, and serves as your company's resume. (http://www.sba.gov/starting_business/planning/basic.html) A business plan is crucial to any new business and will help with management of operation and finances, promotion and marketing of the business and achievement of goals and objectives. (http://www.sba.gov/starting_business/planning/basic.html) Without a well written business plan it will be difficult to get financing for a startup business.

Depending on the type of business, there are many finance options for small businesses.

What's in the bag? Business of Software 2010

moo.com business cards

English: Diagram of venture capital fund structure...

Although Venture capital financers prefer to put their money into high technology firms that are already established, they do put a small amount of their funds into small start-up businesses. Private market angel financing on the other hand provide money for start-up companies that are too small to qualify for bank loans, venture capital, or public offerings but also prefer high technology firms. (http://sbir.gsfc.nasa.gov/SBIR/Financing.htm#alternate) If the company is not a high technology firm it will be hard to receive venture capital or private market angel financing. The least expensive way for a small business to receive financing is through a commercial bank. Many community banks will give loans at only one to two points above the prime for small business loans. (http://sbir.gsfc.nasa.gov/SBIR/Financing.htm#alternate) The disadvantage of a commercial bank loan is the bank usually holds the owners personal property for security.

Small business owners face many legal issues.