Quote:
Originally Posted by alikebabay
This seems to be a fair point. How about starting business with the help of venture capitalists - several people who will give you credit: big in total, but small for each of them in exhange for shares in your business? If you go bust, you can still negotiate with them for repayment, they would not chase you like a bank. Some of them might even let you try again  |
True, but getting venture capitalists to invest in your business is not as easy as it may seem. I do Comp Sci with Business as an add on to that (effectively like the US Major / Minor system or in this country, combined honours) and getting people to invest in your business idea is extremely difficult. Firstly you need lots of plans and lots of things written down.
You need all your market research down for example asking people to fill in questionaires, one on one interviews, see how a similar business is running, get in on business meetings, research your product / service and its history, how it has been offered in the past, successful business in your product / service area as well as failed businesses and the reasons that these businesses failed. Also you need a full business plan preferably with 5 year predictions and estimations based on your research and when you expect the business to first make a profit.
Having shareholders also does not exempt you from liability. If you wish to be at the top of that chain, ie CEO, Owner etc whatever you want to call it you will still be ultimately responsible in many cases especially if your product / service is substandard, causes accidents isn't properly licensed (depending on what product / service you are offering).
What I have mentioned is just the tip of the iceburg, I could go on and on and on for at least 50 pages on what you have to do - in fact there is a profession for people who do this and they get paid a lot of money - and thats business consultants!
By no means am I trying to put you off setting up your own business but I don't want to fool you into thinking that there won't be a lot of hard work - which there will be, a lot of stress - which there will be, and a lot of expenditure - especially in the begining. It's definitely not something to go into light heartedly and definitely isn't going to make you a 'quick buck'.
Hope that helps
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