How to Start a Business – Common Business Ventures
An entrepreneur is defined as a person or entity who exercises freehold possession and control over a commercial or productive property or service for profit. A company is defined as a business or association that engages in commercial, manufacturing, or agricultural activities for profit. Business enterprises may be either for-profit or non-profit entities that work to meet a social cause or further a social agenda. Examples of freehold assets include real estate, plant, buildings, and equipment. In order to conduct business, a person must be registered as an owner in a prescribed class of a limited liability company called a “dominant company”.
One of the many strategies for developing a diverse portfolio of business interests is to establish a partnership. Partnerships may be voluntary or forced. Partnerships are often established to share or retain control or ownership in strategic or valuable technology, consumer products, and services. The primary advantage of a venture partnership is that partners often have similar or identical business skills, knowledge, and experience which enable them to pool resources and commit resources to projects or acquisitions together. Ventures can also be leveraged to create economic security for the partner’s children or others who become involved in the business.
Many new businesses and sole proprietorships do not yet have the financial resources to fund the start-up costs and other ongoing expenses associated with running a successful company. Business funding can be accomplished in a variety of ways including borrowing money from family and friends and securing personal credit lines. Some businesses use their personal credit lines to purchase equipment and property that would otherwise require borrowing. Many new businesses and sole proprietors elect to invest in the local community through raising capital from private sources or community foundations. Private Foundations can provide both low-cost start-up capital and long-term seed money for growth and development of a business.