Business Ownership - What Type of Owner Will You Be?
Are you considering business ownership -- contemplating what type of owner you will be? Well, there are various types of business from which to make your choice. Depending on the nature of your business venture, whether you'll be providing or producing a product or service, and what your product or service will be will affect which type of business structure and form you decide upon. Whether you choose a sole proprietorship, partnership, franchise, Co Ops or other category of business will be directly related to your preferred business style and how you want to structure and run your own enterprise. While the very idea of business ownership is at once exciting and somewhat intimidating to newcomers to the subject, making the right decision about your business structure can be the first step toward future profits and success.
As the first time owner of a small business, you may want to start with a sole proprietorship. This will give you a chance to initiate your business plan, implementing business development techniques at a comfortable pace, deciding if and when to employ staff members. As a sole proprietor, you'll assume total responsibility for any business debts or liabilities, so there's very little doubt that you'll take your business efforts quite seriously. After all, nobody wants to experience failure at the get-go, no matter what the extent of your start-up investment may be.
In a partnership, business ownership, duties and responsibilities are equally shared among business partners. In this particular type of business formation, all partners assume complete liability for any debts incurred while they combine business planning and knowledge for the common results of creating profits. Starting a business partnership and becoming successful requires patience, cooperation and focused input from all the partners on a steady and ongoing basis for this type of business ownership to prevail and flourish.
Supporters of economic democracy often favor cooperative business ventures, or Co Ops in which responsibilities, duties and profits are equally shared. The three common versions of business Co Ops are consumer, producer, and worker-owned companies. Such business Co Ops offer the advantages of high member incentives, and versatility of participants' backgrounds and experience, thus often lending diversity of creative minds and talents to the overall business plan and business venture. U.S. business often promotes use of the cooperative business structure in the fields of agriculture and land development.
Choosing to become a private limited company (Ltd) allows a family or a small or medium-sized group of owners to run a business while liable only for guaranteed debts or for debts with a total amount equal to the amount of the owners' investment in the business. To first-time business "venturers", this type of business plan and structure can seem safer and more reasonable than other forms.
As a public limited company (Plc), business owners have the same type of limited liability as they would in a private limited company. Such a business has a wide spread of shareholders, and as a U.S. business, is known as a corporation or as a limited liability company.
In recent years, the franchise has grown in popularity as a useful and profitable business structure. As a franchisee, an individual or group of business owners receives the right to use the identity and sell the products or services of the franchiser (another business entity). Under this business plan, a small amount of profits must go to the franchiser, but chances are the profits of the franchisee will be high. Franchises can be small or large enterprises and can serve as good learning grounds for beginning business owners.
While business ownership can assume various forms, structures and appearances, all successful business ventures depend on focused knowledge, creative input, undaunted diligence, and persistent and energetic efforts of all those involved. Whether small or large, a business carefully structured and based on astute business planning can determine the difference between impending failure and the ultimate in high levels of profits and success. So, choose your product or service, decide on your business structure and plan, determine your goals, and aim for your spot in the galaxy of enterprising stars.