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SETTING UP A NEW BUSINESS

 Agenda
• What is a business?
• How to set up a new business
• Risks of a new business
• Stories of successful entrepreneurs
“I’m convinced that about half of what separates
the successful entrepreneurs from the non-
successful ones is pure perseverance.”
Steve Jobs, Co-Founder and CEO, Apple
What is a Business?
What is a business?

A business is an organisation or
enterprising entity engaged in
commercial, industrial, or
professional activities. Businesses can
be for-profit entities or non-profit
organisations.
How to set up a new business
 Steps to set up a new
business

• Conduct market research

• Write your business plan
• Fund your business
• Pick your business location
• Choose a business structure
• Choose your business name
• Apply for licence and permits
• Open a business bank account
60% of People That Start
Small Businesses are
Aged Between 40 and 60
(Guidant Financial)
 Conduct market research
• Market research is the process of gathering information about your target market and customers to verify the
success of a new product, help your team iterate on an existing product, or understand brand perception to
ensure your team is effectively communicating your company's value effectively.

• Market research can be of two types; qualitative or quantitative in nature.

• There are two main types of market research that your business can conduct to collect actionable information
on your products, including primary research and secondary research. 
 Types of market research
Primary Research
Primary research is the pursuit of first-hand information about your market and the customers within your market. It's useful
when segmenting your market and establishing your buyer personas. Primary market research tends to fall into one of two
buckets: exploratory and specific research.
Exploratory Primary Research
This kind of primary market research is more about potential problems that would be worth tackling as a team. It takes place as a
first step and may involve open-ended interviews or surveys with small numbers of people.
Specific Primary Research
Specific primary market research often follows exploratory research and is used to dive into issues or opportunities the business
has already identified as important. In specific research, the business can take a smaller or more precise segment of their
audience and ask questions aimed at solving a suspected problem.
 Types of market research
Secondary Research
Secondary research is all the data and public records you have at your disposal to draw conclusions from. Secondary
research is particularly useful for analyzing your competitors.
• Public Sources
These sources are your first and most-accessible layer of material when conducting secondary market research. They're
often free to find and review.
• Commercial Sources
These sources often come in the form of market reports, consisting of industry insight compiled by a research agency,
because this info is so portable and distributable, it typically costs money to download and obtain.
• Internal Sources
Average revenue per sale, customer retention rates, and other historical data on the health of old and new accounts can all
help you draw conclusions on what your buyers might want right now.
Entrepreneurs are the future

Erik Huber Man

Write your business plan

• Write an executive summary.

• Describe your company.
• State your business goals.
• Describe your products and services.
• Do your market research.
• Outline your marketing and sales plan.
• Perform a business financial analysis.
• Make financial projections.
 Fund your business

1. Determine how much funding you'll need.

2. Fund your business yourself with self-funding.
3. Get venture capital from investors.
4. Use crowdfunding to fund your business.
5. Get a small business loan.
6. Use Lender Match to find lenders who offer SBA-guaranteed loans.
7. SBA investment programs.
 Ideal locations

Karachi is the financial and industrial capital of

Pakistan, as of 2019, Karachi has an estimated
GDP of $164 billion
In Islamabad these are the ideal locations
• F-11 Markaz
• Gulberg Expressway
• 10th Avenue
• DHA
• Bahria Town
 Pick your business location
1. Decide on a business location type.
2. Make sure the business location is within your budget.
3. Consider your brand.
4. Think about vendors and suppliers.
5. Find a safe location.
6. Go where there is demand.
7. Think about recruiting efforts.
8. Look for sites with parking options.
 Choose a business structure

Sole proprietorship
A sole proprietorship is easy to form and gives you complete control of your business. You're automatically considered to
be a sole proprietorship if you do business activities but don't register as any other kind of business. 
Partnership
Partnerships are the simplest structure for two or more people to own a business together. There are two common kinds of
partnerships: limited partnerships (LP) and limited liability partnerships (LLP).
Limited liability company (LLC) 
An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect
you from personal liability in most instances, your personal assets won't be at risk in case your LLC faces bankruptcy or
lawsuits.

Cooperative
A cooperative is a business or organisation owned by and operated for the benefit of those using its services. Profits and
earnings generated by the cooperative are distributed among the members, also known as user-owners. Typically, an
elected board of directors and officers run the cooperative while regular members have voting power to control the
direction of the cooperative. Members can become part of the cooperative by purchasing shares, though the amount of
shares they hold does not affect the weight of their vote.
Corporation
C corp
This is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. It offers the
strongest protection to its owners from personal liability. Corporations can be a good choice for risk taking businesses, those  that need to
raise money, and businesses that plan to "go public" or eventually be sold.
S corp
This is a special type of corporation that's designed to avoid the double taxation. It allows profits, and some losses, to be passed through
directly to owners' personal income without ever being subject to corporate tax rates.
B corp
B corps are different from C corps in purpose, accountability, and transparency, but aren't different in how they're taxed. There are several
third-party B corp certification services, but none are required for a company to be legally considered a B corp in a state where the legal
status is available.
Close corporation
Close corporations resemble B corps but have a less traditional corporate structure. These shed many formalities that typically govern
corporations and apply to smaller companies. 
Nonprofit corporation
Nonprofit corporations are organised because their work benefits the public, nonprofits can receive tax-exempt status, meaning they don't
pay state or federal income taxes on any profits it makes. They need to follow special rules about what they do with any profits they earn.
For example, they can't distribute profits to members or political campaigns.
 Choose your business
name

1. Follow your state's naming guidelines.

2. Don't pick a name that is too similar to a
competitor's name.
3. Choose a name that people can spell and
pronounce.
4. Make your name web-friendly.
5. Be memorable but not too unique.
6. Pick a name that's consistent with your brand.
7. Don't limit yourself.
 Apply for licence and
permits

1. Form Your Business Entity. You'll need a

business license in the name of your business.
2. Apply for an Employer Tax Identification
Number.
3. Determine Which License(s) You Need.
4. Apply for a Business License
 Open a business
bank account

1. Proprietorship Concern. Copy of CNIC of the

proprietor. Bank Letter mentioning the name and
CNIC number of owner/ proprietor.
2. Partnership Concern. Copies of CNICs of all the
partners. Partnership deed or bank letter
mentioning the name of all partners.
3. Limited Company. CNIC copy of directors/
signatories
Risks of a New Business
 Risks Of a New Business
• Founder risk
Considers who the founders of the company are, if they get
along, and how they will work for the company.
• Product risk
Takes into account the engineers creating new product for the
business and how they will recruit other product engineers.
• Market risk
Looks at the problem you’re solving with your product and
how consumers will react.
• Competition risk
How you differ from other similar organizations and
companies.
• Sales execution risk
Helps you look at how to sell your product to consumers by
presenting them a solution to their problem.
Stories of successful entrepreneurs
Steven Paul Jobs (February 24, 1955 – October 5, 2011) was an
American entrepreneur, inventor, business magnate, media
proprietor, and investor. He was the co-founder, chairman, and
CEO of Apple; the chairman and majority shareholder of Pixar; a
member of The Walt Disney Company's board of directors.
In 1975, the 20-year-old Jobs and Wozniak set up shop in Jobs'
parents' garage, and began working on the prototype of the Apple I.
They attended meetings of the Homebrew Computer Club, which
helped them develop and market their Apple product. They funded
their entrepreneurial venture by Jobs selling his Volkswagen bus
and Wozniak selling his beloved scientific calculator.
In 1995 he attend Stanford University but decided
instead to pursue a business career, co-founding the web
software company Zip2 with his brother Kimbal. The
startup was acquired by Compaq for $307 million in
1999. The same year, Musk co-founded online bank
X.com, which merged with Confinity in 2000 to form
PayPal. The company was bought by eBay in 2002 for
$1.5 billion.
Young Henry Ford showed an early interest in
mechanics. By the time he was 12, he was spending
most of his spare time in a small machine shop he had
equipped himself. There, at 15, he constructed his first
steam engine.
In 1903, he established the Ford Motor Company, and
five years later the company rolled out the first Model
T. In order to meet overwhelming demand for the
revolutionary vehicle, Ford introduced a new mass-
production methods, including large production plants,
the use of standardised, interchangeable parts and, in
1913, the world’s first moving assembly line for cars.
THANK YOU