Starting a business: partnerships, funding, and entrepreneurial considerations

¶ … Financing, and Marketing a Business

An idea for a business can come suddenly or after years of trying to identify a niche in which to market a product or idea. In either case, the process of starting and developing a business is often an arduous and complicated one that requires astute planning long before implementation. There is a difference between those who merely manage an already existing business and those who develop ideas and their own businesses and become entrepreneurs. Entrepreneurship is defined as "the process of identifying opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them" (Hatten, 2012, p.24). Once and entrepreneur has established a need for a product or service there are several considerations that must be taken into account, including what type of business to establish and how to market the product to the world. Successful entrepreneurs are able to navigate through many potential business minefields.

Partnerships

If an idea for a business belongs to just one person, then it that person can simply begin to work on the idea on his or her own. However, ideas for businesses often involve more than one person and, often, several people. In these instances, it may prove advantageous to form a partnership to legally bind all persons involved to the business entity. A partnership is any business organization that is formed when two or more persons or entities combine to operate a business for profit (Spadaccini, 2007, p.5). There are several advantages to forming this type of business. First of all, partnerships are relatively easy to establish, often requiring no more than a handshake and a verbal commitment among two or more parties, though some sort of legal agreement should be written up at the time of the formation of the business. There are no annual meetings and few reporting requirements, except to keep other partners informed of ongoing activities. There are also some tax advantages to this type of business, since partnerships do not have to pay the minimum tax that is required of LLCs and corporations (Spadaccini, 2007, p.6).

However, there are also some severe drawbacks to this type of business arrangement as well. If the partnership is not a limited partnership or limited liability partnership, each owner is responsible for losses, liabilities and any debt incurred by the business, regardless of whether or not they were personally involved in the transactions. In this instance, a partner in a business is considered responsible for the actions of all other partners. This can often lead to disputes among the business owners and can lead to protracted legal fights even when the business has been dissolved (Spadaccini, 2007, p.6). Because of this many business owners find that a limited liability corporation or corporation makes more sense when they start their businesses.

Marketing

Once the product has been developed it must be marketed to the public in a way that makes the product desirable. There are several steps involved in this process and they might best be illustrated using the pharmaceutical industry as a model. Initially, the marketing should be properly planned to address a specific problem, the audience being targeted, and the environment in which the marketing program operates (Weinreich, 1999, p.22). In the case of a drug, like one for heartburn, the problem and audience are easily identifiable, heartburn sufferers need to be relieved of their symptoms. The marketing environment could include newspaper, magazine, internet, and television ads.

After this information has been gleaned, the message and materials used to convey the message are designed. These messages and materials are then tested on individuals within the target group to determine which materials best convey the intended message, in this case the heartburn sufferers (Weinreich, 1999, p.22). Once the materials have been decided upon, the plan can be implemented and feedback from the marketing program can be assessed to ensure the message is getting out to the intended targets (Weinreich, 1999, p.22). The evaluation of the marketing campaign is continuous and the materials can be changed throughout the process. A successful campaign for marketing heartburn drugs would involve an increase in awareness of the drug and, eventually, its use.

Throughout the process it is important to consider the potential harm the product could do to anyone and evaluate whether the risk is worth taking. Furthermore, it is essential that the marketing campaign remain honest and never seek to intentionally deceive anyone. Even promising that a heartburn drug will do more than it could possibly deliver, like completely eliminate all heartburn symptoms, is unethical (Weinreich, 1999, p.23). Technology serves a very important role throughout the process, both by discovering and reaching the target audience and by providing information to them and allowing the company to receive information from them. A well-designed Facebook page can be a valuable marketing tool for any company wishing to receive feedback on a product or service.