Business Plan - Sole Proprietorship

Small Business Idea

Sole Proprietorship

If the government were to release or provide me with a grant to start a business, I would start a property management business. The focus would be on purchasing property and managing the property of other clients who chose to rent their home for various reasons i.e. work and live out of the area and plans to relocate here in the future. In property management or being a property owner, you target the complete housing market regardless of you social class because everyone needs somewhere to live. I would provide clean and affordable places house for individual to live that fits within their budget and base on the location of the house, work with the housing authority to provide Section 8 housing for those who qualify.

The most common and probably the simplest form of business is sole proprietorship. One individual/ owner manage the day-to-day operation of the business and all of it transactions. The advantage to this is that the individual owns the business for duration of time and can sell it when he or she wants to or can pass that business on to someone else through a will. In a sole proprietorship, the owner is responsible for paying the taxes on the income earn as part of his/ her income taxes; he/ she will be filing taxes on a Form 1040 Schedule C (retrieve from http://smallbusiness.com). The owner needs to comply with the state and local laws that they are doing business. It can be less costly to start your own business with the help of investors.

The advantages of sole proprietorship are that you have complete control of every aspect of the business. There is no corporate tax for you to pay there are small legal cost associated with a sole proprietorship. The disadvantages of sole proprietorship are the owner can be held personally liable for any debt and business obligations. The owner of the sole proprietorship will have to rely on bank loans and his or her own asset to finance their business for the start. All responsibility for the business lies with the owner. As the business grows perhaps, there will be some opportunity for me to collaborate with someone or another company.

Partnership

A partnership is two or more people who come together to start a business. Normally they have shared goal and business idea or they have some skills or talents that complement each other. For example if I have a property management business maybe there could be an opportunity to partner with someone who has landscape or yard work business, a handy man or a painter and carpenter. When looking at creating a partnership one must remember that, there are two forms general and limited. With a general partnership, all owners share the profits, decision-making, and debt. The partner will share in the funding of the business from conception. With the partner, the business should be easier