New Business Venture: Forms of Business

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A New Business Venture
Going into business is not as easy as a snap of a finger. If it were, more people would have one and be successful at it. However that is not the case. There are many steps you must take and the best way to do that is in creating a business plan. Ebert and Griffin state “Before investing time and money, the starting point for virtually every new entrepreneur is a business plan in which the entrepreneur thoroughly develops and describes her or his business strategy and demonstrates how it will be implemented” (p.37). In the scenario, I am an inventor who has created an idea that will be suitable for the daily needs of consumers. There are many issues that can hinder my progress as an entrepreneur. The scenario states that I lack the financial and management skills it takes to begin and even own my own business. For example, I am financially unable to “fund” the costs that will be necessary to begin any investments needed to begin this project. I’m oblivious to how I’m going to begin production of my idea. I’m also aware of similar inventions that could possibly heed the sale of my own, however, “Innovations are not always new products” as stated by Ebert and Griffin (p34).

There are three forms of business: sole proprietorship, partnership, and corporation. There are many advantages and disadvantages in the different forms of business in relation to my business venture. To begin with, as sole proprietor, I wouldn’t work under anyone and could be my own boss. I could make up the rules and could develop what I wanted based on my own ideas. However, considering I do not have the funds, it would be extremely difficult knowing that I would be “personally liable (or responsible) for all debts of the business” (AIU Online, 2010). Subsequently, there are partnerships. Ebert and Griffin state that a “partnership is a sole proprietorship multiplied by the number of partner-owners” (p41). That’s great if I am feeling uneasy about my skills...
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