Shark Tank, a popular ABC show depicting the entrepreneurial spirit in the United States, provides an opportunity for small businesses to pitch their ideas in the hopes of receiving an investment from a member of the panel. Presenters on the show range from professional businessmen to grade school students pitching a school project in the hopes of receiving the funds needed to manufacture and introduce the product to the marketplace.
The range of experiential background represented on the show provides insight into the entrepreneurial market in the United States, a market that appears to be thriving. According to the Kauffman Index of Entrepreneurial Activity, over 500,000 businesses were created every month in 2012. This returns rates of entrepreneurial activity to pre-recession levels, signaling a more stable market for new businesses. Experts with the Kauffman Index predict that the shift in business creation means new businesses are more likely to last, since the numbers now represent "longer-term levels."
There are many factors that contribute to this prediction. For one, a more stable job market means people are less likely to begin a business in response to limited job opportunities. This signals a shift from an entrepreneurial business built out of economic necessity to businesses built to take advantage of opportunities within the marketplace.
Starting a business in New York
Those interested in starting-up a business in New York can increase their odds of success by following these tips from the Better Business Bureau:
- Know how much it will cost. Start-ups can require a large amount of capital in the beginning. Take the time to get a realistic estimate that includes expenses like equipment, wages, advertising and rent for the facility that the business will use. Next, come up with a plan on how to raise the capital to cover these costs. This could be done in many ways, including finding investors like those depicted on Shark Tank or getting a bank loan.
- Know the type of business structure you want to use. Are you interested in sole ownership or a partnership?
- Figure out insurance and licensing needs. In New York, workers' compensation and disability insurance is required if a business has employees. In addition, a business generally needs to be registered with the county clerk's office, if the business is run as a corporation it likely needs to register with the New York Department of State.
Beginning a business is a difficult endeavor. From contract negotiations to tax concerns, human resource issues to intellectual property rights, legal matters can stall a business's success. As a result, those who are interested in starting a business in New York should contact an experienced business lawyer to better ensure a plan is devised to help meet the business's immediate goals and long term plans.