Initially, there are two types of businesses available to you, Sole Trader or Partnership. Both are explained below:

Sole Trader:

This is easiest and least costly way of starting a business. A sole trader can be formed by finding a location and opening door for business. There are likely to be small fees to obtain business name registration. Lawyer's and accountant fees for starting business will be less than other business forms because less preparation of documents is required and owner has absolute authority over all business decisions.

Partnership:

There are several types of partnerships. The two most common types are general and limited partnerships. A general partnership can be formed simply by an oral agreement between two or more persons, but a legal partnership agreement drawn up by a lawyer is highly recommended. Legal fees for drawing up a partnership agreement are higher than those for a sole trader. A partnership agreement could be helpful in solving any disputes. However, partners are responsible for each other's business actions, as well as their own.

Useful Information:

Starting and managing a business takes motivation, desire and talent. It also takes research and planning. To increase your chance for success, take time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well­ thought­ out business plan that will help you reach these goals.

The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.

Always begin your proposal with a covering letter. Clearly and briefly explain who you are, your business background, nature of your business, amount and purpose of your loan request, your requested terms of repayment, how funds will benefit your business, and how you will repay business loan. Keep this cover page simple and direct.

When writing your proposal, don't assume reader is familiar with your industry or your individual business. Always include industry-specific details so your reader can understand how your particular business is run and what industry trends affect it.

Provide a written description of your business, including following information:

Type of organization

Date of information

Location

Product or service

Brief history

Proposed Future Operation

Competition

Customers

Suppliers

Management Experience:

Resumes of each owner and key management members.

Loan Repayment:

Provide a brief written statement indicating how loan will be repaid, including repayment sources and time requirements. Cash-flow schedules, budgets, and other appropriate information should support this statement.