Factors of starting a Business|
There are different aspects of starting a Business that can contribute to the success or failure of a Business if they are not applied. These Considerations include the legal, social and economic environments of business. There are also different styles in Business such as sole proprietorship, partnership and corporation.
As an inventor who has come up with a product that is a home appliance that is versatile for everyday consumer needs and not being experienced with manufacturing, funding and having low net worth. There are things to consider, In conducting research of which style of business to use, let’s take into consideration the following business styles: Sole proprietorship, partnership and corporation. The following are the summarized possible choices according to the What-If Analysis: Sole Proprietorship: If I decide to use this form of business I will be able to make all of the decisions, it’s simple to set up and cheap to operate. It will be quick to start and require my input alone such as funding and ideas on how to market the product. The disadvantages would be that I will be responsible if anything is wrong with the product. If I don’t sell enough products I can go into debt and be forced to shut down production. If there is a high demand for my product I only have my personal funding to produce more which will cause a financial hardship in the future. Also, since I am not experienced I can come across useless sales tactics and not be able to come up with ideas on how to push the product out to every type of consumer. Partnership: If I decide to start my business as a partnership I can use resources from myself and my partner which doubles the funding. I can balance off ideas from myself and my partner to create an effective business. We can share the liability and responsibility of the business and split up the work load. The...