A sole proprietorship has more advantages than a partnership. A sole proprietorship has more advantages because its run by only one person. When one person runs a business, that person has a great amount advantages due to he/she authority. They make their own decisions on how to run a business, they take in all profits, and its easy to create. In a partnership these advantages are gone as everything has to be shared between the partners.
I think sole proprietorships are so popular because they are easy to create. With a sole proprietorship theres no "middle man," you are doing everything on your own which makes them easy to create and therefore popular. With a partnership both partners have to be on the same page about everything for it to be started.
Tuesday, December 13, 2011
Friday, December 9, 2011
Chapter 3 Reflection
In this Chapter 3, I learned many new things about franchises and entrepreneurial trends. A franchise is a legal agreement for a person to start a business in the name of that recognized company. The franchisor sells the franchise to the entrepreneur for a fee.The entrepreneur or A franchisee (person who buys the franchise) will run that business under the company's guidelines. This is great way to become an entrepreneur as it will allow to run a business without all the risk and cost of starting their own business. There are many entrepreneurial trends and these include, internet businesses, service businesses, home-based businesses, socially responsible non-profit businesses, focus on technology, outsourcing, strategic alliances, and corporate ventures. Internet businesses has transformed the way business is conducted. 46% of the small businesses that use the internet have grown faster than the 46% of those who didn't use the internet. Service businesses dominate the modern American economy. Its the biggest and fastest-growing part of the American economy. Home-based business make a huge majority of businesses. This type of business is usually set up when people lose their jobs. Non-profit businesses are exempt from paying taxes but has to keep all profits in the business. This business is usually started up to help society. Focus on technology has a stronger chance of surviving. Outsourcing allows a small business to focus on what it does best while tapping into outside resources for expertise. A strategic alliance allows two businesses to join together to provide a service. One can't be without the other. A corporate venture is when a large corporation decides to start a smaller business inside of its corporation. An example of this is Nike which is a big corporation and starting Jordan inside of the corporation.
Thursday, December 1, 2011
Partnership Agreement
Name of the Business: J & D Sports Medical and Goods
Purpose: The purpose of our business to treat sport related injuries and provide sporting goods/equipment to help aid recovery. This benefits customers so that they will only have to make one stop
Duration of Agreement: 5 years
Character of Partners (general or limited, active or silent): Darrius: General and silent. Responsible for all equipment and ordering goods. Collis: Limited and active. Responsible for care of customers that comes to the establishment.
Business Expenses: Darrius is responsible for rent, cost of maintenance of the building and half of the equipment. Collis is responsible for utilities, insurance and cost of the other half of the equipment.
Division of Profits and Losses: All profits will be put together. Losses will be taken out of the profit from the business. The rest of the profits will be split equally.
Salaries: Salaries will be the same. Depends on profits at the end of the month.
Death of a Partner: Death of partner results in a sole proprietorship until a new partner is found. Royalty will be paid to the family of the deceased.
Handling Business Disagreements: Talk it out
Responsibilities of Partners: Darrius's responsilibities are ordering the equipment, paying rent, and cost of maintenance. Collis is responsible for customers and customer needs.
Purpose: The purpose of our business to treat sport related injuries and provide sporting goods/equipment to help aid recovery. This benefits customers so that they will only have to make one stop
Duration of Agreement: 5 years
Character of Partners (general or limited, active or silent): Darrius: General and silent. Responsible for all equipment and ordering goods. Collis: Limited and active. Responsible for care of customers that comes to the establishment.
Business Expenses: Darrius is responsible for rent, cost of maintenance of the building and half of the equipment. Collis is responsible for utilities, insurance and cost of the other half of the equipment.
Division of Profits and Losses: All profits will be put together. Losses will be taken out of the profit from the business. The rest of the profits will be split equally.
Salaries: Salaries will be the same. Depends on profits at the end of the month.
Death of a Partner: Death of partner results in a sole proprietorship until a new partner is found. Royalty will be paid to the family of the deceased.
Handling Business Disagreements: Talk it out
Responsibilities of Partners: Darrius's responsilibities are ordering the equipment, paying rent, and cost of maintenance. Collis is responsible for customers and customer needs.
Friday, November 4, 2011
Market Research is the process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and research into the characteristics, spending habits, location and needs of your business's target market. The role of market research in my opinion is to find out what the customer wants. With market research you know what a customer might want, what brands they prefer in buying a certain product, and how they want to be served as customers.
Thursday, October 27, 2011
Market Research
http://www.kwiksurveys.com/?s=OIJJGI_23b3b39b
This is the survey I created for my business. The purpose for my survey is to help me start my market research on my customers wants. In my survey its ask questions about my potential customers interest in sports, how many injuries they incur in one year, and how much a potential customer would be willing to pay for these services. With people taking this survey, I am hoping that it will tell me what my customer's injuries may be and how their injuries would be created. Also, I want to know what my potential customers are willing to pay for services.
This is the survey I created for my business. The purpose for my survey is to help me start my market research on my customers wants. In my survey its ask questions about my potential customers interest in sports, how many injuries they incur in one year, and how much a potential customer would be willing to pay for these services. With people taking this survey, I am hoping that it will tell me what my customer's injuries may be and how their injuries would be created. Also, I want to know what my potential customers are willing to pay for services.
Monday, October 17, 2011
Franchise Video
This video was about buying a franchise. There are over 3,000 companies that are sold as U.S franchises. In order to be able to buy a franchise, first you must obtain a FDD. FDD stands for Franchise Disclosure Document. In this document, it gives full disclosure of all fees and cost with getting into that franchise. One of the fees in that document is the franchise fee. This fee can range anywhere from $10,000 to $50,000. Once you have paid this fee there is a potential start up cost that can be worth $200,000. Many franchisees can't afford this so they go to banks to get a loan. Lenders have rely on franchise information to give these loans. Some of the information they rely on is the SBA loan default rate and a summary of stores opened, store closures, and terminations. Also, lenders look for the Small Business Adminstration to guarantee 75% of the loan.
http://www.bloomberg.com/video/74720473/
http://www.bloomberg.com/video/74720473/
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