Intro to Business 1013
How Businesses Are Organized
There are several ways that a business can be organized to define its structure. The main types of businesses are sole proprietorship, corporations, partnerships and limited- liability companies. How a business is organized explains how its taxes are paid, and accounts for profit and how it manages the liability by its owners. In the bylaws state that every organization has its own purpose and what it does. It has its name and contact information for those who own the business and what their entitlement role is. I will also discuss how businesses operate within the economic system and how they trade with each other and with other countries. How to start your business you need to write down your business goals so you can accomplish those goals for future purposes. Always make a reminder to yourself that you are going to achieve your goals, like having a planner, software or even right yourself a note. Customers will know if your are happy with yourself and your co-workers by the progress of your business. It also improves efficiency and that shows your customers that you and your team are well- organized. There are some things that need to be planned daily, weekly, monthly and yearly. Make a list of these items and schedule them accordingly so you will have a reminder for your records. You should always plan at a good time of the day like in the morning or in the evening when your day is over so you can think of new plans that come to mind. Always keep your store nice for great purposes and to promote more customers because you keep it clean. Keep your items in order and organized so that you can find them easily. Keep your promises to customers, suppliers and employees. Making payments on time to your suppliers shows that it is a well-organized business. Making deliveries at the agreed upon time to your customers will win their trust and will help you in getting repeat orders, as well generate word-of-mouth advertising. Show your customers that you care by contacting and helping them with all the service that they need. Send them magazines and brochures of your business so they are aware of what you sell. A computer is like having an extra brain that you should use as much as possible. Do your accounting, inventory, delivery scheduling, and even your letter writing on it. Just don't forget to make a regular backup of your data. Small businesses are easier to control and it leaves you more time to concentrate on increasing your profits. One of the ways that a business can be organized is by sole proprietorship that is owned by one individual who controls what goes on in the organization. Your benefits are that you can be your own boss, have pride of your ownership and leaving a legacy. There are no special taxes, it’s handled by taking the owners social security number instead of paying individual or corporate taxes. Compared to other businesses the advantages of having a sole proprietorship organization, the book keeping is so much easier than other businesses that work as partnerships. It’s less expensive but it takes knowledge and hard work to be known worldwide. The disadvantages are unlimited liability. In other words meaning if you are the owner you have to pay out of your own pockets the debts and what might get damaged incurred by the business even if it means selling your home, car or anything else. You can also be disadvantaged in management difficulties, overwhelming time commitment, limited growth, few fringe benefits and limited life span. In order for this to not occur each individual needs empowerment to handle their job.
Corporation is another business type that is chartered legal entity with authority to act and have liability that is separate from its owners. It has numerous shareholders and a board of directors that basically govern how the business will operate. The shareholders are the owners and their taxes...