Problem- Lack of knowledge to survive in a business
world. How to start an own company?
Learning Objectives-
How to maintain a business?
Maintaining a good and solid business is a key to success.
It’s about hard work and being focused for a long time. A business might not be
successful from start, but how you manage your business is often more important
than the business idea.
Some key facts about maintaining your business:
One thing that can’t be emphasized enough is planning. A business
owner needs to have a detailed plan for its operations and have to ability to foresee
the future. When there is a plan it’s easier to see how the business is doing,
how the revenues are coming in. It’s also very important to know what happens
day-to-day.
Customers are the key to get sales and to have more sales in
the future. In order to have happy customers you need to have something
valuable to sell but also take good care of the customers, it is crucial to
have good customer service.
If you want to make some money, as a business-owner you can’t
be to fond of security, you need to be able to take some risks. If there is no
risk, there is probably no reward.
To stay in the game you need to have great products a retain
a competitive edge against the competition.
How to fund your business?
When starting a business and before revenues are coming in
you need money to rent a place of business, pay salaries, pay for equipment and
so on. Your company does not probably have that mony, so you need some
financing. The most obvious way to finance is to use your savings. If you don´t
have enough savings you could try to have your friends and family to lend you
some money to get things going. It’s a bit risky if you can’t pay them back, you
might end up having problems with the relationships with them.
When you have a bit more solid base or an exceptional idea
you could get financing from investors, a bank or some other establishment. A
bank needs some securities and a detailed businessplan to give a loan.
Investors might lend the money for higher interest, but often they might as
well be interested in buying a part of your company or wanting a royalty of
your future sales, so you need to evaluate what is good for you and your
business.
How does the limited liability company
manage their obligations in
Finland?
A Finnish Limited Liability
Company (LLC) is an equivalent to a British Ltd or a German GmbH. It can be a
private limited company where there needs to be a total of shares for 2500€ or
a Public where there needs to be shares of 80000€. The capital is then the company’s
assets and can be used for business purposes. The shareholders responsibility is
limited to their shares, they are not personally responsible for debts. A
shareholder can be a natural person or a legal person (e.g a LLC).
The Board is the top managing
organ of a company and must have at least one member and one substitute member.
One member must reside in the European Economic Area. In the articles of
association the term of the board members is agreed. It can be fixed for an
amount of time or be ongoing.
The vast majority of companies appoint
a managing director, but it’s not mandatory.
The shareholder assembly is the
top organ in a company and is limited by shares. The assembly must be convened
6 months after the end of the fiscal year. There is not a need to have an
actual meeting, it can be held in writing as well.
Limited Companies usually needs to
have a qualified auditor. If a company is operating a very small scale
business, it’s not mandatory.
Usually
the relationships between shareholders is regulated in the shareholders
agreement. It is normal practice to agree on
such issues as pre-emption rights, regulations about financing responsibility,
profit distribution policy, prohibition of competition, and the means of
settlement of litigation.
Liability for losses or damages in a LLC is usually
limited to the shares, but management has a larger responsibility. The
founders, members of the board and the supervisory board as well as the
managing director are liable in damages for any loss they cause the company in
their work whether wilfully or negligently.
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