How to manage the business

Evaluating Business Ideas: -
It is often very difficult to figure out how to research your idea; especially if you have never actually been in business for yourself. Ask yourself some difficult questions and be honest, but do not just go on your instincts. It is very important that you carry out research to be sure there is a market out there for what you have to offer.
The best place to start is to decide if your idea has profit potential.

This can be established by following the sixteen step guide below: -
List and describe features and benefits of your product or service.
Define the main geographic area you intend to sell to during your first year.
Find out what competitors are selling to the same geographic area.
Establish why your consumers are buying from you instead of your competitors.
Find out what is unique about what you are offering to the consumer.
List and briefly describe trends within your new market or industry.
Define the growth of the market.
Discover what price your competitors charge for their product or service.
Research ways of letting your consumer know about your business.
List any government or local authority approvals necessary to launch your idea.
Briefly describe your manufacturing or purchasing process.
Briefly describe your fulfilment process.
Make a list of your potential suppliers.
Make a list of your resources you will require to start your business.
Determine what resources you will finance, lease or rent.
List your financial strengths and weaknesses.

The answers will assist you in developing your business plan. It is important that you make sure that you have convinced yourself. After all, if you do not believe 100% in your plan, how can you expect others to?

Information about Evaluating Business Ideas: -
http://www.fastlinksolutions.co.uk/evaluati.htm
http://smallbusiness.yahoo.com/r-article-a-41090-m-1-sc-12-evaluating_your_business_idea_faq-i

Setting up the business: -Every year, thousands of people decide to set up their own business. Here are some of the practical points which require consideration before trading begins: -
Selecting a legal entity: -
Sole-Trader: -
Partnership: -
Limited Company: -
Limited Liability Partnerships: -
Registering with the Tax Authorities: -
Inland Revenue: -
H M Customs and Excise: -
Payroll Taxes: -
Financing For Your Business: -
Insurance: -
Accounting and Bookkeeping: -

Information about Starting a Business: -To go further into the steps of starting a new business, then follow the web-sites below.
http://www.o-reilly.co.uk/startup.htm
http://www.canadaone.com/ezine/oct03/checklist.html

The risks of starting a new business: -For those considering starting a new company, the statistics can be frightening; some measurements suggest that only about 2 in 10 new companies are still in business after one year.
Why are the risks so high? For most of the businesses that were unsuccessful it is not due to their idea. Experience has shown that most new companies experience difficulties because they lack experience in running the whole company.
Below is a brief summary of the most common reasons why new businesses fail. Although there are always exceptions, most struggles fall into one of these categories. Also listed in each case is the solution that could have saved these businesses.

Reason for Failure
Way of saving the Business
Lack of strong, experienced leadership, vision and mission
Establish leadership development
Mentoring
Limited knowledge and experience in running all the various aspects of a company
Administrative services provides experience of staff, advisors and mentors
Failure to plan properly
Systemised objectives for product approval process

Failure to execute properly
Systemised reporting schedule

Failure of individuals to perform
Stick to the plan when appropriate, make changes quickly when necessary and the wisdom to know the difference

Abusing control –
unwillingness to share the wealth, being unreasonable with customers & partners, etc.
Experience and involvement of staff and advisors

Information about risks: -To get a detailed explanation of risks with starting a new business, please visit the following link.
http://wps.prenhall.com/bp_bovee_eib_3/0,11464,2795374--2795377,00.html












Types of Managers styles: -There are three overall types of management styles: -

Description
Advantages
Disadvantages
Autocratic
Senior managers take all the important decisions with no involvement from other workers
Effective when employing many low skilled workers
No two-way communication so can be de-motivating
Paternalistic
Managers make decisions in best interests of workers after consultation
More two-way communication so motivating
Still quite a dictatorial or autocratic style of management
Democratic
Workers allowed to make own decisions
Authority is delegated to workers which is motivating
Mistakes or errors can be made if workers are not skilled or experienced enough

Information about management styles: -To get a detailed explanation of management types, please visit the following link.
http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm
http://www.managementfirst.com/management_styles/index.htm
http://www.tutor2u.net/business/gcse/people_management_styles.htm









Skills of a Successful Manager: -As management trends and fads swirl around us, it is easy to lose sight of the basics. What makes a good leader or manager? For many it is someone who can inspire and get the most from their staff. In fact, a manager’s responsibilities always boil down to seven important elements: -
1. Good organisation and planning skills.
2. Highly skilled in dealing with money.
3. Good at selling ideas and products.
4. The ability to manage all or part of a small business.
5. Good at working, mediating or arbitrating between people with opposing views.
6. The ability to weigh up and take risks.
7. Leadership and the ability to work alone.
If you can get these not-so-easy pieces right then management success is virtually guaranteed.

Information about management skills: -This helpful web-site goes further in defining the skills needed by the managers of the business.
http://www.zeromillion.com/business/starting/entrepreneur.html
http://www.entrepreneur.com/management/leadership/learningtolead/article66046.html