To start a business is probably the most complicated way to accumulate wealth. However, if you succeed, the reward is also extraordinary.
In order to have a successful business, firstly you have to have a good business idea. There are too many businesses in the world, so what can make your business idea standout?
Some of the business founders have business ideas from their jobs, which is what they are already familiar with.
Some of the small business owners just do the small businesses like doing the jobs, such as tutoring, babysitting, cleaning, and meal delivering, etc.
Some of the more competitive areas may create a lot of value, such as operating an Amazon store, becoming a youtuber, or designing websites for clients. However, those small businesses may not be able to scale, which means hiring more people and expanding the businesses in an organic way.
So, in most cases, from income perspective, starting a business doesn’t have much difference with working as an employee. However, one advantage for owning your own business is that you have more freedom on how you work and don’t need to cater to office politics.
The next thing to do is to setup the business. You need to make a business plan and get the required funding, choose your bank, register with the government and tax authority, and hire people to work for you.
In order for the business to operate, you need to have people experienced in accounting, taxation, legal and compliance, human resources, marketing, IT, supply chain, etc.
Once you setup the business, you need to let people know your business and attract customers through advertisement and marketing. You have to analyze your products or services compared to competitors to make it better and more attractive. You may need to have loans or investors to provide money to help you expand the business.
Finally, assume everything is good with your business, you can choose to let your child take over your business, or just sell the business to those who are interested. Another way is to list the company in a stock exchange through IPO (Initial Public Offering), which usually have stringent requirements.
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