In order to become an S-Corporation, a person or group must first organize a regular CCorporation as discussed above, and then promptly file an election to become an SCorporation
with the Internal Revenue Service (Form 2553). The time for filing is generally two and one-half months from the earliest of the date of organization, the date the corporation first had shareholders, the date the corporation started doing business, or the date it first had
assets. A corporation may also file for an S-Election at the beginning of any tax year,
generally through mid-March.

An S-Election is not automatically granted by the IRS. In order to qualify to be an SCorporation
a corporation must have no more than 35 shareholders, none of which can be partnerships, corporations, tax exempt organizations or nonresident aliens. In addition, an S-Corporation can only have one class of stock. If these basic requirements are met and maintained then a corporation will more than likely qualify to be an S-Corporation. If at any time a corporation does not meet these requirements, then it will lose the tax treatment afforded to S-Corporation and will be taxed as a C-Corporation.

All other general rules applicable to C-Corporation also apply to S-Corporations.?

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What is their purchasing power? Buying habits? How much disposable
income do your customers have? How much do they spend on products or
services similar to yours? Do they value cost savings or time savings? Is
convenience a decision point for them?

What’s the psychological makeup of your customers? What values
and qualities do they hold near and dear? Are they swayed by low prices or
high ethical standards? Are they impulse buyers or not? Will word of mouth
and reputation infl uence them?

Who is your competition? What are your competitors’ marketing
advantages? Disadvantages? Are there any niches you can fi ll? What can
you do for your customers that your competition isn’t already doing?

What environmental factors are you dealing with? Are there any
big-picture social or economic issues that could affect your business? For
example, is the local economy growing or stagnating? Will you suffer if the
Canadian dollar drops or rises? Is your target market a certain age? What
happens when they outgrow your product?

The information you collect will reveal trends, opportunities and
vulnerabilities. You may need to modify the design of your product or
service, adjust your price, widen your territory or carry a broader range of
products. Or you may fi nd that your inspiration was bang-on.

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getting investor - raising money

Venture capital when you’ve already begun to operate and you need an infusion of capital to drive the business. Venture capitalists serve a very useful purpose under those circumstances. Reputable venture-capital investors generally don’t provide seed money to brand-new companies. These investors tend to have shared opinions about what’s hot; that is, which fields are candidates for investments at any given moment. For sure, the optics industry hasn’t been hot for a long time, not since the mid-1970’s. Very few laser and optics companies have been successfill in getting venture funding.

Once venture-capital investors commit funds, they need an objective measure of whether the company is on track; thus, managers have to be concerned about meeting the milestones on the business plan. This management approach can be costly for a small company; it can lead you to spend money before the business really requires it, in order to complete tasks that look less important now than they did when you wrote the plan.

Consider this, too. Venture-backed businesses have high failure rates — perhaps only about 10% of them become big successes. This failure rate is partially due to the fact that the winners have to compensate for the losses sustained by the other 90%. For that reason, venture capitalists tend to have high expectations for the return on their investment, typically 50% per year. The only way they can get that type of return is to take a high percentage of your business for their investment, especially when you approach them too early in your development. In that sense, venture capital is expensive. Another problem is that venture capitalists generally assume engineers can’t
manage this kind of business. Also, when venture capitalists are disappointed, they are quite willing to “pull the plug.”

balance-business

Trying to find the balance between a healthy business and a happy home life is one of the biggest challenges business owners face. This is especially true in the fi rst few years of your business, when your time commitment is so great, and your business is still developing its own routines and rhythms.When you’restarting, take a bit of time to fi gure out where you may want to draw the line.

Be prepared to make conscious choices about the trade-offs
or investments of time and energy you are willing to make to build your business.
It’s still about relationships: Feeling good about your life depends on
the strength of all your relationships – with customers, employees, partners,
family, friends and community. Consider how the time and financial
implications of running a business will affect the people in your life. Think
about how your business needs will infl uence your family, and how time with
your family will affect the business. If you live in a small community, prepare
for a possible loss of privacy and a more public relationship with long-time
residents and friends.

productivity-business-of-america

How the businesses produce more with fewer workers, one may ask. The main reason behind this is that while there are indeed fewer workers working due to the cuts, those that do remain are producing more per hour, as in work more diligently, which contributes to the 6% rise in productivity in U.S. non-farm businesses since 2007. Despite the numbers of total hours worked having fallen by nearly 9%, total output is only 3.4% lower than what it was on December 2007, which meant that the workers that are working made more in the same timespan compared to their brethren back in 2007.

The construction and manufacturing industry have cut the most jobs, having 25% and 16% less employees respectively, followed by the information, wholesale trade, mining, logging, retail trade, and financial industries, whereas the utility, education, and health department have actually increased its number of workers.

Because of these however, companies might have to ramp up on capital spending to keep up the current level of productivity. Indeed, the current capital spending is generally on par with the profits, whereas in the past the capital spending has generally exceeded profits, with the companies borrowing money to full the gaps between the spending and the profits. Whether this trend will remain as it is, or whether it will change again in the near future, is still everyone’s guess, what with the recent instability in the financial climate. Whether these job cuts will hold for the long run, is also another question still left unanswered.

This Acronyms Used in a business cont

swot-strenghts-weakness-opportunities-threats

ext, it helps you carve a sustainable niche in your market. Used in a personal context, it helps you develop your career in a way that takes best advantage of your talents, abilities and opportunities . Each Aspect have a big related with you business in future . you will need it all if you really want to starts you Own Business

To carry out a SWOT Analysis, you need to answer or at least think all about it :

Strengths:

* What advantages does your company have?

* What do you do better than anyone else?

* What unique or lowest-cost resources do you have access to?

* What do people in your market see as your strengths?

* What factors mean that you “get the sale”?

Weaknesses:

* What could you improve?

* What should you avoid?

* What are people in your market likely to see as weaknesses?

* What factors lose you sales?

Opportunities:

* Where are the good opportunities facing you?

* What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

* Changes in technology and markets on both a broad and narrow scale.

* Changes in government policy related to your field.

* Changes in social patterns, population profiles, lifestyle changes.

* Local events.

Threats:

* What obstacles do you face?

* What is your competition doing that you should be worried about?

* Are the required specifications for your job, products or services changing?

* Is changing technology threatening your position?

* Do you have bad debt or cash-flow problems?

* Could any of your weaknesses seriously threaten your business?

Refer all tha question , i think you can get some thread and Conclution

Strengths and weaknesses are often internal to your organization. So you can answer it if u supposed that you already start you own business, so you can answer all the information that needed . Opportunities and threats often relate to external factors. For this reason the SWOT Analysis is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool.

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