Over the years, many entrepreneurs have created businesses having one goal in mind, which is become a successful business owner. The entrepreneur Mark Cuban once claimed, “Don’t start a company unless it’s an obsession and something you love. If you have an exit strategy, it’s not an obsession” (Business Insider). In other words, business owners have to love what they do if they want to reach a certain achievement for their business, but not all companies form the same way. All companies have the potential to be successful no matter which method an owner or owners chooses to work with. In the world of business, three types of ownerships are a sole proprietorship, partnership, and corporations. The first formation approach is sole proprietorship
Partnerships rely on special bonds and trust between another individual which can have many advantages and disadvantages towards a company. Some advantages would be easier paperwork load, easy to start up, and taxes are simplified. From AllBusiness, the article claimed, “The biggest advantage of a general partnership is the tax benefit...Creating a general partnership is simpler, cheaper, and requires less paperwork”. In other words, a partnership can be less of a hassle considering you have another person to share the workload. Major disadvantages towards this formation would be management issues and liable debt. Specifically, like sole proprietorship, the debt of the partnership would be shared among the owners. Also, management problems can occur if the relationship between the owners are not strong causing someone to back out of the business or to lose a friendship. An example of a partnership ship would be the ice cream company Ben & Jerry's. A business that started out with two guys and a $12,000 investment back in 1978 and as the business grew so did their company. Ben & Jerry's selection of becoming a partnership has allowed the ice cream company to thrive for almost over 40 years. The relationship formed between Ben & Jerry's has allowed their ideas to be spread not only locally but internationally with the help of putting trust into someone else and taking some of the stress off as
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
As with many small business owners they vision of their business usually only extends to their own abilities. They are driven and full of determination and believe their abilities will be able to sustain the business to success. Unfortunately, many small businesses lack the knowledge to be able to effectively be owners’ and leader’ to their organizations.
Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed
Enterprises are not quite the same as alternate business substances in that they can be viewed as a different legitimate element, contingent upon the laws overseeing the creation and working of the organization. There are a couple points of interest of a partnership. To start with, benefits are saddled as wage to the shareholders, not the accomplices. Second, it is anything but difficult to raise capital by issuing stock. Third, shareholders have constrained obligation (Kubasek, 2014). There are likewise a couple weaknesses related with a company. To start with, customs are required in setting up and keeping up corporate shape. Second, corporate salary is exhausted twice (Kubasek,
For entrepreneurs whom are willing to accept the risk associated with starting a business, some have made themselves extremely wealthy. Although our economy is focused on capitalism as a means of promo...
A General Partnership is composed of two or more persons (usually not a married couple) who agree to contribute money, labor, and/or skill to a business. Each partner shares the profits, losses and management of the business and each partner is personally and equally liable for debts of the partnership. In terms of asset protection, general partnerships can be even worse than sole proprietorships.
Another example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or more owners. They work, manage and are responsible for the running of the business. Individual partners may concentrate on a certain aspect of the business where they have expert knowledge. As there is more than one owner, larger amounts of capital can be fed into the business via personal funding or bank loans. Partnerships have an unlimited liability.
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
For my future career I want to be a business owner or in other words an entrepreneur, business has always fascinated me to this day some of the key point of a business owner are the duties of a business owner, the salary, the training and education, how does someone succeed in this career field and, what my goals are for this career field. An entrepreneur is individual who, instead of working for a business, runs their own business and takes all the risks and reward of a given business venue, idea, or good or service offered for sale. The entrepreneur is mainly seen as a business owner of ideas and business processes.
The success of a business is greatly dependent on its entrepreneur. An entrepreneur is someone who takes the financial risk of starting and managing a new business venture. In order to be a successful entrepreneur, one must be ready to take a risk and invest one’s own savings into a business. The job requires that the individual be ambitious and committed to working hard in order to achieve the set targets. A successful entrepreneur is able to multi-task and communicates effectively with people, possessing leadership qualities such as confidence and motivation. The individual must play the role of constant motivator and inspire employees to improve their work performance, whilst ensuring a comfortable environment for the employees to work in. According to Schumpeter (1982), an entrepreneur is more of a ‘heroic’ than an ‘economic’ figure; his motivation should not solely be monetary, rather stemming more from inspiration and ambition.
...s of a partnership are the shared profit factor, which can cause a lot of animosity among the partners if things do not go as well or if there is an unequal amount of contribution among the partners. Additionally, there is both individual and joint liability with partnerships. This can often cause dissention between the partners (“SBA”). Essentially, the sole proprietorship is the best choice because the risks are minimal because it is solely one individual, who can make the best choices and decisions and deal with the consequences that arise accordingly.
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.
Successful entrepreneurs have a clear image of what they want their future to be like. They hold a clear picture of the direction the company should take and have a clear plan of how they will make their vision a reality (9 essential traits of successful entrepreneurs, 2013)
The path to achieving great success is not easy. Whereas there are many shortcuts, the long and patient walk is what takes a person many miles ahead. This concept applies to any individual who aims at becoming a successful businessman. The process of becoming a successful businessman requires a person to attain several accomplishment levels. Each of the level takes energy and time, as well as the ability to recognize the things that make a person truly successful in the business world and life. Becoming a successful businessman requires measurements that take into account not only the monetary and material gains but also the greater scheme of things. Therefore, true success measure achieves in light of creating wealth and value. These factors are vital in the lifetime of success as they present an intangible worth and measurable profit. This essay discusses the way a person can become successful as a businessman.
Are you curious about the hardest small businesses to run? Opening a business nowadays is not that easy. You cannot do it in a day even if it’s a small business. You need to prepare a lot of things especially your funding. One thing is sure about this is you can keep and still work on your day job while building your own small business.