How you establish a company?

Answer 1

To answer that question I first have to consider what place you are starting from. For the sake of this post I will assume that you are starting from the absolute beginning.

First, you have to know what good, service or combination of goods and services you will sell. In this stage you have to consider the four p's of marketing: product, price, place and promotion. After you have figured out what you are selling, the appropriate price for your product or service, the place where you will market your product, and finally how you will promote it, you should consider the legalities and financials.

Second, I recommend that you establish a separate bank account for your company and incorporate your business. Speak to an accountant/lawyer about incorporation. They will be able to determine exactly what type of incorporation is right for you. Incorporating your company is essential so that you can protect yourself from personal financial loss and different types of liability. I do think that you should consult an attorney about this.

Third, establish some sort of an accounting system. Corporations are required to keep an adequate accounting and payroll system. Again, you should speak to an accountant to determine what accounting system would be good for you. In the beginning stages of your company you can probably get away with using off the shelf software such as Quicken or Quick-books.

Of course, the things we just covered are just the very basics and essentials that you need to have. They are sort of the foundation. There are many other things you have to consider. Labor such as management, low level/entry level employees, supervisors, technicians and general workers to produce whatever you're selling, are different for basically any type of business. You'll have to consider things such as direct material, direct labor, factory overhead, fixed costs, variable costs, maintenance and other miscellaneous things. Depending on the type of company you are thinking about you may be able to hire low skilled labor for minimum wage or you might have to hire individuals with degrees, skills and different specialized qualifications.

There are many books on the subject of starting a company and running a business. I'm sure you can probably find some inexpensive books about these things, probably even from Amozon.com or other vendors. Search around the internet because you can probably even find pdf books on these subjects for free.

Good luck with your company.