In this article you will read about starting your business. You will read about sole proprietorship, if you think you would want to go that route. Then there is having a partnership and the pros and cons about having a partner. You might decide to incorporate your business; you will read the advantages and disadvantages of incorporating your business.
My scenario is based on the 3 prong power cord for electrical appliances there is a 2 prong out on the market for lower quality appliances, however I would mostly use a special technology to start the business. I could go with sole proprietorship “it is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.” As an owner I would receive all the profits and will be responsible for any of the debts and loss of the business. The advantage of a sole proprietorship is that I have the ability to raise capital either publicly or privately, and be able to control the personal liability of the officers and manager, with no risk to the investors. However there are some disadvantages also of sole proprietorship , like raising the capital because a unrelated investor has less of peace on mind when it concerns the use and security of their investment and it more difficult to formalize, another disadvantage is unlimited liability that where I could have my personal assets taken away. When My business becomes successful, the risks accompanying the business will grow most likely] .
The type of Business Organisation This is important in order to know how many people are involved in the business (eg sole trader one person). Sole Trader A sole trader is an individual who owns the business. Eg Hairdresser Sole traders are risk takers and moneymakers. The advantages of being a sole trader are that you can make decisions quickly as there is no one else that needs to be consulted, ...
If I would decide to have a partnership there are some advantages and disadvantages, “It can be cost –effective as each partner specializes in certain aspects of their business” it would also bring moral support and be more creative. Legal fees would be drawn up a partnership agreement are higher than those for a sole proprietorship, but it might lower than incorporating. However disadvantages of a partnership are that the partners would be responsible for all other partners’ actions as well as their own. If one of the partners did something that you didn’t
approve of there will be disagreements. “One of the major disadvantages of a partnership is
unlimited liability.” That means that the partner is liable for any for the debts contracted and
errors made by the partners. It would be a risky partner ship in most situations.
Some business decides to incorporate without an attorney’s, which is not advice, it better to have
legal advice. A corporate structure is the most complex way and more costly to organize than
two other business formations. “The control is exercised through a regular board of directors’
meeting and annual stockholders meetings. They must keep records to document which decision
is made by board of directors. There is liability and it is generally limited to stock ownership,
except when fraud is involved. Having a business is very rewarding. Taken the risk and start a
venture is part of the American Dreams and I think everyone was part of that dream
somehow. The advantages of a business that would have is Independence, Lifestyle, Financial
rewards, learning opportunities, and creative freedom and personal satisfaction.
Then you have the disadvantages and some of them are, financial risk, Stress, time commitment
and time take away from family working long hours, undesirable duties.it might be hard to take a
vacation with family because you got to work due to the fact that someone quit or called in. even
Parents always want to make the best decisions for their children. The most essential decision they have to make is the size of their family. Parents have to consider whether it is better for their children to grow up in a large family or to grow up in a small family. Still, I believe there is no best family size. A large family and a small family both have their own advantages and disadvantages ...
if you did take time off you most likely would get phone calls and emails and you couldn’t enjoy
your self. You would be doing job just to make sure they got done, you couldn’t afford not
getting thing done if so it would cause a problem in the future.
A survey was conducted by the Wall Street Journal and Cicco and Associates indicates that most
of the small business owners and top-level corporate executives agree overwhelmingly that the
small business do have more satisfying business experience. Small business owner are happy
with the choices they made .
Family Business Sourcebook, Aronoff, Astrachan, and Ward
RAND Journal of Economics, Vol. 35, No. 1, Spring 2004, pp. 69–84, “Bankruptcy and small firms access to credit” Jeremy Berkowitz and Michelle J. White
] Cicco and Associates Inc., “Type E Personality—Happy Days—Entrepreneurs Top Satisfaction Survey,” Entrepreneur.com, http://entrepreneur-online.com/mag/article/html April 21, 2006).