Starting Business Essay Example | Topics and Well Written Essays - 3000 words

Starting Business - Essay ExampleTechnology-based start-ups argon generally strategically and operationally agile which bewilder rise to innovation. On the other hand, start-ups ventures have scarcity of resources and often struggle to arrange funds and other operational requirements that they need to get their ideas to market.Establishing a bran-new company presents a lot of challenges especially in its early stage. Principal reasons of opening a company in 2002, according to National Institute of statistics and economic surveys (INSEE) wereBuyout of a company, though less riskier task, involves a lot of intricacies. Raising the funds is major challenge of any buyout. Following elements make a buyout a sticky and time consuming line processFinance Financing a buyout involves various issues such as the true value of the company and evaluation of the companies conglomerate and the market credibility of buying company which determines the amount they can raise from market and as debts from banks. There are various ways to raise cash in hand for funding a buyout such as debt funding, private equity financing and vendor financing.A buyout involves complex taxation issues. No two buyouts are sooner the same and their tax implications vary correspondingly. The buyout benefits will diminish if proper consideration is not given for its tax consequences for individual investors, the buyout company, and the vendor.Cultural assimilation adoption of employees to the steering owner plays an important role in success of a buyout. These issues become starker if an established company is buying an already established company.Retaining existing competent menRetaining key personnel of the company being purchased is also an important issue which needs to be addressed in an urgent basis. Rumors may spread that the business is about to close, in this case some of the capable workforce may leave the company. Assuring workforce that their interests will be taken care of requ ires a clear communication with employees and their associations. Employees protests, in several cases, can stall the buyout process. Some of the other concerns related to buyout of an existing business include the potential for inheritingAn noncurrent product or mature market If a proper assessment is not done there are chances that you purchase a company whose products are not in demand or market for the product that company is producing is mature. This makes the purpose of a buyout obsolete. Existing operational inefficiencies, obsolete equipment, or a severe optimal location for the business This issue again adversely affects the purpose of a