1)If you have sufficient funds to establish a business, but you haven’t considered a particular project, how can you obtain sufficient information on the best business to conduct ?
The best way to choose a business is to take advantage of your educational background and professional experience. Through a comprehensive review of this information, you will be able to determine which business to undertake. In other words, start with what you know and what you have sufficient experience in. More importantly, you should enjoy your business to innovate and achieve your goals.
2) What are the basic skills you should have to conduct and manage your business?
Following are the most important skills that a person should have to launch a business:
Financial management, human resources, the ability to analyze the market, knowledge of the products and services provided by the market, knowledge of tax laws and legal structures, and effective communication skills.
3) What are the challenges that businesses face in their early stages?
Following are the most significant challenges:
- Lack of capital and cash proceeds.
- The need for an appropriate business plan.
- The need to deliver high-quality products or services.
- Work overload.
- Overcoming the depression as a result of persistent refusal by customers.
- Hiring excellent employees.
- Time management ability.
4) What are the most significant obstacles and challenges that women face when starting a business, and how to overcome them?
In recent years, women have gained a foothold and established a presence the business world through their participation in various fields and their many accomplishments, not only as a chief executive officers, but also as founders of various businesses. However, women continue to face many obstacles, including: lack of confidence by financiers, suppliers and customers’ in the ability of women to manage business in some field.
To overcome these obstacles, women need to enjoy strong self -confidence and believe in their powerful ideas and their ability to success. Hence, women should not lose their determination if others reject their participation. The engagement and success of more women in the world of business will further facilitate the process.
5) What are the most significant mistakes made by beginners in business?
- Starting a business without owning the sufficient capital.
- To believe that success can be achieved quickly.
- The failure to carefully and accurately plan a budget
- Lack of focus on the quality of the product or the service delivered.
- Paying less attention to the importance of the sales and marketing element.
- Lack the ability of adaptation with sufficient speed.
- Lack of understanding of the competitiveness nature.
- Ignoring the legal and contractual issues.
- Hiring inefficient employees.
- Wrong pricing of the product or service.
6) How long does it take a new business to earn a good reputation?
It takes a long time to create a good image of a business, but only a few minutes to incurs losses. There is no certain formula to build a good image which depends on several elements such as:
- The quality of services and products delivered to customers.
- The market where the business operates
- How to strengthen your existence against your competitors in the market.
- The forms of public relations and advertisements.
If you are a new investor in the market, you can gain an excellent reputation within 18 to 32 months only by following your business plan and its specific objectives
7) Do you need a lawyer to start your business?
No, it is not necessary. However, it is best to seek good advice when starting a business
8) Do you need a business plan?
Yes, of course. A business plan is key to determine how to improve your product, service, marketing services and financial expectations, etc. However, avoid developing a business plan that exceeds 50 pages. In fact, many beginners deviate from the plans they develop for their businesses.
9) What sources can help you fund your business?
There are many books and articles in this regard. Following is a summary of the most important actual sources for capital:
- Personal funds.
- Credit cards.
- Family and friends.
- Venture Capital investors.
- Bank loans.
- Capital owners.
10) What form of business is recommended for first time entrepreneurs?
All legal forms of individual businesses, or those involving a partnership or otherwise, have different advantages and disadvantages. Therefore, the proper choice depends on your circumstances in terms of:
- Your financial position.
- The business line desired.
- Number of employees.
- Potential risks.
- Your tax status.
Before starting any business, you should obtain the necessary legal advice, because what your choice of an entity may not be appropriate!
11) How could you determine the expenses associated with the business you are planning in your market?
The only one way is to communicate with competitors in the market and enquire about their expenses. such information could provide you with a clear idea. If you do not want to communicate directly with the competitors, you can ask their customers.
12) What are the most important permits, licenses, and registrations required to launch a business?
You may need the following Permits and Licenses as per the nature of business you are considering.
- Permits relating to companies operating in regulated industries (aviation, agriculture …,etc)
- Permits for sales tax.
- Permits for home-based businesses.
- Permits by the Ministry of Public Health (such as restaurants).
13) What types of insurance do businesses require?
These types of insurance should be considered in accordance with the nature of the business.
- General liability insurance.
- Product liability insurance.
- Workmen’s compensation insurance.
- Health insurance for employees.
- Automobile insurance.
- Data breach insurance.
14) What are the most important elements to consider when acquiring a new company?
If you are thinking about acquiring a new company, you must first seek advice from a professional consultant in the industry, or a reputed agency; failing to do so may lead you to purchase a company with expired and invalid papers. Even worse, you may find that the company has outstanding liabilities you were not aware of.
You should also pay attention to the name of the company. You may face legal problems if the name was similar to the name of another company operating in the same industry.
15) What are the most important factors to consider in terms of a Partnership Agreement?
The Partnership Agreement should at least clarify the following:
- How the business will be funded and the amount to be paid by each partner.
- How profits will be distributed, especially in case of unequal profit distribution.
- How to take decisions and settle disputes and disagreements.
- What will happen if a partner desires to terminate the partnership.
Finally, the Partnership Agreement should lead to discussions over other issues such as the business strategy, leave entitlement and the employment of family members among other issues.
16) What happens in the absence of a written Partnership Agreement?
The failure to draft a Partnership Agreement increases the risk of disagreements among partners, and makes it harder to settle these disputes. Furthermore, if you fail to execute a Partnership Agreement, all partners will assume equal rights and when it comes to decision making and profit distribution. Therefore, you should execute a written Partnership Agreement to avoid any potential problems.