Entrepenureship

Entrepreneurship

– What type of Business Structure is best for your product or service?

Most products and services deal with three types of business structures; a sole proprietorship, partnership or a corporation. Each business structure has its objective on how the product or service is presented to the market. There are many reasons why a person takes on a certain business structure and that the business structure was defined by proper planning, research, goals and a quality business plan.

SOLE PROPRIETORSHIP

The most common business structure is a Sole Proprietorship, known as a business structure that can be a rewarding way to do business. In a sole proprietorship, you are the boss, the one that makes all the decisions and the one who has to deal with most of the headaches that come along with doing business. But, with having the ‘power to be’ there are questions to consider;

•    You believe that you have a great product or service so what concepts will you use to bring your product or service to market?

•    Will you be able to commit to the time and money to fulfill your ideas/dreams?

•    Are you ready to take on physical and emotional hard work and the uncertainties that come with it?

•    Are you now a leader, not a follower?

Success doesn’t come easy it takes determination along with a good business plan. The business plan should consist of two important objectives; finding ways to raise capital and a day-to-day operational plan. It is important to keep your business plan retroactive by keeping in mind why you started the business. You always need to find a niche that is better than your competitors; you must be ready to redefine your business structure and stay with your business plan and continue to revise it when needed.

GENERAL PARTNERSHIP

Partnerships are usually made up of two or more persons with both parties supplying some financial commitment, possibly their labor, or skill as part of their commitment to the business. Each partner enjoys a combined commitment where each partner gets to share the profits, along with any losses. General Partners manage and conduct business jointly as per their agreement, hopefully in writing. General Partnerships have unlimited liability; where their personal assets are liable for the partnership's obligations and along with management responsibilities by both with equal responsibility for any debts that occurred in the partnership. Gen. Partnerships can be a tough commitment, but with a quality written partnership agreement many partnerships have prospered.