Business Principles Start-Up

Start-Up issues faced by all new businesses.

What Startup Owners Can Learn from Expert Traders

When it comes to managing a successful business, expert traders can teach entrepreneurs a thing or two about how to gain from a competitive market. It may not be too obvious, but trading and entrepreneurship have much in common. In fact, some of the most successful investors and traders have started their own profitable companies, such as Warren Buffett who believes that entrepreneurs can learn a lot from investing.

Microbusiness

Microbusiness

Microbusinesses are all around us.  Often overlooked and rarely given a second thought they are the backbone of our economic system.  From the local beauty salon to the Mom and Pop pizza shop; microbusinesses are everywhere. Microbusiness is defined as the small closely held operation that provides a family a supplemental or primary source of income.

Mission Statement

Mission Statement

A mission statement is a written document identifying the businesses’ primary reason for existence.  It should convey the core values and the principals of the company.  It should be reviewed with staff frequently to remind everyone of the chief goals of the company.  

Shareholder Dynamics in Small Business

Shareholder Dynamics

The majority of small businesses are owned by a single individual.  An additional pool is family owned or controlled.  The balance usually involves friends or relatives that are passive in ownership.  These forms of ownership create some interesting shareholder dynamics and if not thought out, can create some legal and financial issues in small business when a life changing event occurs. 

Types of Business Models

Business Models

In business there are four distinct business models.  Just about any business can be identified with one of the four.  The following are the four types of business models: 1) Low-Volume, Hi-Margin, 2) Hi-Volume, Hi-Margin, 3) Low-Volume, Low-Margin and 4) Hi-Volume, Low-Margin.

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