While business owners are faced with making a multitude of business decisions on a daily basis, there are significant decisions that ultimately must be made during the life of the operation. Sole proprietor businesses have full authority to make major business decisions without consulting anyone else.
Other small business entities, such as partnerships, limited liability companies and corporations may have to consult others in accordance with the terms of business agreements and articles of incorporation. Below are the top five biggest decisions business owners make, according to experts:
Starting the business
To start a business is no simple decision to make. It is therefore important to look inward and think deep before coming up with any form of decision. According to experts, the single biggest decision a business owner makes is starting the business.
A significant amount of research goes into this decision-making process, as the owner identifies potential target demographics, researches the market and estimates operating costs and potential profit margins.
Associated with business start-up are related decisions regarding business and marketing plan creation, location selection, hiring of employees and selection of vendors or suppliers.
Applying for loans
Funding is critical in any business. Small businesses often require financing for start-up, expansion or operating costs. The decision to take on a commercial or business loan is a significant one in the business owner’s life. He must compare the lending options and finance companies, make in-depth assessments of financial needs and ultimately repay the loan. Micro-businesses run as sole proprietorships or partnerships link their personal finances with the business finances, which can be a major risk if the business fails.
Branding and marketing
Wisdom is required here, because determining the specific way a business is to be identified and sold to the public consumer is a very important decision for a business owner.
Unsuccessful branding efforts or marketing approaches that are not well devised can hurt, rather than help the business. A good deal of money is typically invested in serious marketing efforts, so the choices and approaches must be well-planned.
Expanding operations
If a small business owner wants to grow, he must make a decision to expand, add new products or services or partner with another small business.
Taking on such a move is a monumental business decision. A business owner must weigh the pros and cons of expansion efforts and consider the market and economic factors he originally fleshed out when deciding to launch the business.
Dissolving the business
The final important decision in a business owner’s life is that of closing, selling or dissolving the company. The decision to cease operations is often more difficult than the initial decision to inaugurate the business. This is especially true when considering the financial investment that has been made and the potential impact a closure will have on established employees.
Source: azcentral.com
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