Business Opportunity Scenario
- Submitted by: mdizzie2112
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- Category: Other
- Date Submitted: 04/10/2011 09:06 AM
- Pages: 3
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Author Note
The purpose of this document is to provide clear and tangible information. The data within will contain a comparison between the three main structures of business directly related to the product and a conclusion of what business decision should be made; based on the greater good of the overall product in mind.
Brief Overview
New home appliance which meets consumer needs. This product would be able to assist the consumer on an everyday basis. New technology is much safer than current products in the market. Possibility for development of other products based off this new technology. The market for this “type” of product is saturated. Financially resources are low. Family time will also be compensated by work. Things to be looked at include: Business Structure, Financial viewpoints, skillset, and legality. A conclusion will be made based off the information provided explaining which business decision is best and why.
Sole Proprietor Advantages and Disadvantages
First is sole proprietorship. Individuals who buy, own, and operate their own business. The distinct advantage you would have with this structure of business would be as followed: Complete say over everything. How it’s made, where it’s made, and cost of the product. As sole owner, all profits from the product would be put back into the company. Disadvantages of this product in a sole proprietorship play a bigger role in this case. The cost to start a business, open a factory, and begin making the product would cost a significantly more amount of money than funds available. Advertisement, The need to show off the product and promote it would have to be on a larger scale then a home garage. The market has a 2% growth yearly. Someone would be needed to infiltrate the market. Without proper training and back round this may be difficult.
Partnerships
Second is partnership. A group of individuals form a business. Advantages in this case would include: More financial...
The purpose of this document is to provide clear and tangible information. The data within will contain a comparison between the three main structures of business directly related to the product and a conclusion of what business decision should be made; based on the greater good of the overall product in mind.
Brief Overview
New home appliance which meets consumer needs. This product would be able to assist the consumer on an everyday basis. New technology is much safer than current products in the market. Possibility for development of other products based off this new technology. The market for this “type” of product is saturated. Financially resources are low. Family time will also be compensated by work. Things to be looked at include: Business Structure, Financial viewpoints, skillset, and legality. A conclusion will be made based off the information provided explaining which business decision is best and why.
Sole Proprietor Advantages and Disadvantages
First is sole proprietorship. Individuals who buy, own, and operate their own business. The distinct advantage you would have with this structure of business would be as followed: Complete say over everything. How it’s made, where it’s made, and cost of the product. As sole owner, all profits from the product would be put back into the company. Disadvantages of this product in a sole proprietorship play a bigger role in this case. The cost to start a business, open a factory, and begin making the product would cost a significantly more amount of money than funds available. Advertisement, The need to show off the product and promote it would have to be on a larger scale then a home garage. The market has a 2% growth yearly. Someone would be needed to infiltrate the market. Without proper training and back round this may be difficult.
Partnerships
Second is partnership. A group of individuals form a business. Advantages in this case would include: More financial...