How does an entrepreneur decide what structure of company he should start with e.g. partnership/ sole trade etc?

When starting a business,an entrepreneur is faced with an options whether to have a partner in the business or handle the business alone. Your decision could affect your liability, paperwork your company has to do and  your ability to make money.

There are different types of business entities like Sole trade which is complete responsibility over the company and the person has limited liability. You are also responsible for all the money you make. A partnership , however,  is when two or more people agree to share responsibility and money over the company. They plan what each person is accounted for and that person is responsible for that. The problem is, if that one person made a mistake,he could bring down the entire company. A corporation is legally separated from the people who founded it,they hire people to take care of it. A hybrid form of partnership, the limited liability company (LLC) , is gaining in popularity because it allows owners to take advantage of the benefits of both the corporation and partnership forms of business.

In order for an entrepreneur to decide the structure of his business,he must way the pros and cons for each option and calculate his every move. If he choose to go with a partnership,he must make sure that he trusts those who will share the business with him.



http://www.entrepreneur.com/article/38822

Marketing your own business.

Starting up a business can be risky, There is always a huge possibility that it will fail. As the famous saying goes " You must spend money to make money" ,That is precisely what entrepreneurs should do. One of the main things that could help a business become recognized and successful is to promote it.

 According to Michael Masterson, the editor of Early to Rise , business doesn't happen until you have made your first sale. The best way to establish itself in the market is to offer a popular product at a much lower price to compete with the old and more experienced businesses. It is important to select a business that would go on without you having to constantly supervise. Before starting a business,one must research about it and know how much money they are willing to incest and lose in this. 


The Brand image must represent the business accurately so people would not be confused as to when this business is about or what it does. The major thing to do to promote tour business is to place advertisements where people would notice them, whether its by TV,Magazines or billboard ads. When advertising, it is important to be clear about what this business is to avoid any confusion,you must deliver a clear message to the audience. Free gifts is also a way to promote our business and to get the costumer to come back after they have tried your product and want more of it or are curious about the other things you produce.

Having contacts in the market would definitely be a plus  to your business. When starting out, you should do some free charity work or some low cost deals to spread your name.Later on,more clients will come pouring in. Last but not less in importance,is every business should be listed in the business directories or yellow pages so they could be easily found by clients.




 http://www.sitepoint.com/business-8-steps-success/

http://make-your-marketing-work.blogspot.com/2007/05/how-to-make-yourbusiness-work.html

Types of Business Organizations

Private limited company  --> Ernst & Young : is one of the largest professional services firms in the world and one of the "Big Four" accountancy firms.

Public limited company --> Apple : is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. 

Public corporation --> CocaCola : is a carbonated soft drink.

Non-profit organization ( Any organization that has aims other than making and sitributing profit and is usally goverened by a voluntary board) --> Trees 4 Children : Trees 4 Children has secured the support from USAID and other global partners to help plant 30,000 Melia Trees per year which will be propagated and harvested for the long-term value of its timber.

Non-governmental organization (A legally constituted body with no participation or representation of any government)  --> Action against hunger:  is an international humanitarian organization with a focus on ending world hunger.

Pressure group (An organization created by people with a common interest or objective who lobby businesses and governments to change policies so that the objective is reached) -->  is an international humanitarian organization with a focus on ending world hunger.

Social enterprise (A proper business that makes money in socially responsible ways and uses most of any surplus made to benfit society.) --> The Eden Project :  is a visitor attraction in Cornwall in the United Kingdom, including the world's largest greenhouse

Public-private partnership ( Involvement of the private sector in the form of management expertise and/or financial investment in public sector projects aimed at benefiting the public.) -->  World Bank:  is an international financial institution that provides loans to developing countries for capital programmes. The World Bank's official goal is the reduction of poverty.

Starting a Business

It is not easy to start a new business,one must be skilled in many areas to be successful. There are many reasons a business could fail like competition, building a customer base or lack of record keeping. Competition is almost always a problem for new businesses unless it is a original idea. A business will generally experience competition from more experienced business with more knowledge. In order for a business to survive, it must establish itself in the market and build a reliable customer base. the longer the business survives the bigger the customer base gets. Lack of record keeping is a common issue when it comes to failed businesses. Many entrepreneurs fail to keep accurate recording,they believe that it is  less important than meeting the customers' needs.

Lack of working capital,Poor management skills and changes in business environment are also major issues entrepreneurs fail to run a successful business. Lack of working capital is when the entrepreneur runs out of money to keep his business going. This happens to a lot of businesses and that causes them to shut down. Most entrepreneurs have had some form of work experience,but not necessarily at a management level. They have not gained the experience they need to run a successful business. there is always the risk of change,many businesses can change if one of the following changes occur : new competitors,legal changes,economic changes and technological changes.