There is no hiding the fact that starting and managing a business takes motivation, desire and talent. What's more it also takes research and planning. To enhance your chance for success, take the time up front to explore and evaluate your business and personal goals. Then comes the next step of using this information to build a comprehensive and well thought out business plan that will help you reach these goals.

The whole routine of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become quite a important tool as you set out to raise money for your business. It should also offer milestones to gauge your success.

Before you begin, list your reasons for wanting to go into business. Few of the most common reasons for starting a business are:

Firstly you want to be your own boss.

Most importantly you want financial independence.

You want creative satisfaction.

You want to fully use your talent and knowledge.

Next you require determining what business is "right for you." Ask yourself below mentioned questions:

Crucially what do I like to do with my time

What technical expertise have I learned or developed

What do others say I am perfect at

How much time do I have to run a profitable business

Do I have any hobbies or interests that are marketable in nature

After all this you should identify the niche your business will fill. For that to happen conduct the necessary research to answer these questions:

Is my concept practical and will it fill a need

What are my competition and their research

What are my business benefits over existing firms

Can I give a better quality service

Most importantly can I create a demand for my business

The last step before developing your plan is the pre-business checklist. You should answer below mentioned questions:

What business am I interested in beginning

What services or products will I am interested to sell

Where will I be located in the market

What expertise and experience do I bring to the business

What will be the name of my business

What instrument or supplies will I need

What insurance coverage will be required

What financing will I required

Crucially what are my resources

How will I pay myself

Having worked your way through the above mentioned questions should have given you an indication of whether or not you still want to go into business. In case if you have decided against, then at least you have learnt something. On the other hand if you are going ahead with your venture then congratulations and have a successful business.

In case if you are confused by how to finance a small business One pivotal aspect to a successful business start-up and expansion is your ability to obtain and secure appropriate financing.

Raising capital is the most basic of all business routines. But fact of the matter is as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it can be a complex and frustrating process. Though, if you are informed and have planned effectively, raising money for your business will not be a painful experience.

The below mentioned guide focuses on ways a small business can raise money.

There are plenty of sources to consider when looking for financing. It is of utmost importance to explore all of your options before making a decision.

Personal savings: Theoretically speaking the primary source of capital for most new businesses comes from savings and other forms of personal resources. While credit cards are most consistently used to finance business needs, there may be better options available, even for very small loans.

Friends and relatives: Large chunk of entrepreneurs look to private sources such as friends and family when starting out in a business venture. Nine out of ten times, money is loaned interest free or at a low interest rate, which can be beneficial when getting started.

Banks: The most straightforward source of funding, banks, will provide a loan if you can show that your business proposal is sound.

Venture capital firms: These firms plays a pivotal part in helping expand companies grow in exchange for equity or partial ownership.

It is quite often said that small business people have a difficult time borrowing money. This is not necessarily a true statement.

Banks make their money by lending money. Though, the inexperience of many small business owners in financial matters often prompts banks to deny loan requests.

Remember that requesting a loan when you are not properly prepared sends a signal to your lender. That message is crystal clear: "High Risk!"

To be successful in getting a loan, you must be prepared and organized. Furthermore you must know exactly how much money you need, why you need it, and how you will pay it back. In addition you must be able to convince your lender that you are a good credit risk.

In case if you're a sole proprietor, perhaps you've considered incorporating your small business or self-employment activity.

And that's why maybe you've been wondering, "When is the best time to incorporate"

From a legal point of view, any time is the best time. As a matter of fact, the sooner you incorporate, the sooner you make the move from the world of unlimited liability to the world of limited liability.

From a tax savings point of view, any time is the best time. In theory the sooner you incorporate, the sooner you will start putting more money in your own pocket and less in Uncle Sam's.

But from a **tax reporting** point of view, there is one time of year that stands out as best: January 1st.

Why is that

Assuming you have a sole proprietorship (or other entity, such as a partnership) that is up and running as of January 1, and furthermore taking into account that you then incorporate that existing entity on any date other than January 1, you face the possibility of filing not one but two business income tax returns for that year.