Tuesday 24 February 2009

Why start a small business

When people may want to start a small business:
The official definition of a 'limited small company' is to meet two of the following:
· annual turnover must be ?,600,000 or less;
· the balance sheet total must be ?,800,000 or less;
· the average number of employees must be 50 or fewer.
l When you are not sure if your market is profitable or not, you may prefer start a small business
to reduce the risks.
l When you do not have enough money, but you want start a business, you can choose start a
small business, because you do not need prepare a lot money to start your business.

l A 'small business' can be a limited small company or a non-limited company that has a sole-trader or partner as the proprietor/s. With sole traders and partners the total profits and wages
earned by the business are taxed on a personal basis if there are two sole traders in a business who have 50% ownership each, they will each have to pay 50% of the tax burden.
if a company wants to produce a new product, but their main marketing can not add this new
product , or the new product have marketing by itself, this company may start a new business,
and because they do not sure it will successful or not , they will start a small business to research
first.

3 comments:

chris sivewright said...

You have not answered the question 'why'.

Micheal Thomas said...

The Internet is the best place to make money and since it was introduced, so many people have become wealthy in a very short time. Starting your own business has been made very easy with the inception. The best thing about starting one is that anyone can get involved and you do not have to be well educated or experienced in business. An online business allows you to work from anywhere including your own home

chris sivewright said...

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