When an entrepreneur starts an industry, he or she should always have a vision of what their business should be like and in most cases, this is done through looking at the positives that will bring success and good fortune to the business. It is very essential for an entrepreneur to have information and know how to use good production practices since this is what brings into the open success to any company or professional, including the design firm and the industrial designer. When an entrepreneur has focused on what his business would like then it is very important consider the fact that there could also be unfavorable conditions that would hinder the success of the business (Spadaccini, 2007).
Some of the disputes that a business might meet are such as insufficient income, disaster among other eventuality and this means a company should be able to meet all these financial needs. For that reason, the legal forms of a business have a very strong influence on the entrepreneur's financial position since a firm operates under it. There are many issues related to legal forms of business as far as a sole proprietorship, corporation and partnership is concerned. Anyone who wants to start a business should be able acquire the necessary tools for planning, organizing, operating and maintaining their basic business entity. The first step to take towards this is to understand the laws surrounding different business organizations in the modern world.
The basic knowledge of starting a business knows the differences between Sole proprietorship, corporation and partnership since a business minded should know which legal form of business to use to succeed in a competitive atmosphere. After knowing the differences between these then he or she is able to decide whether to establish a limited liability company or a corporation between by this time they will have already compared and contrasted diverse forms of business. During this process, a business owner can determine which is the most appropriate structure fits his enterprise and will know what his or her clients would prefer.
The most common legal forms of business in main parts of the world are a sole proprietorship, Limited Liability Company, general collaborating and corporation. All these forms of business have both pros and cons in many ways such as complexity, cost, reporting requirements and taxation among other issues. Choosing an appropriate form of business to start requires one to consider many very many things and this means that one should have weighed all the possibilities of business thriving well or falling after some time.
My Venture into Treme Restaurant
I have decided to venture into the restaurant industry because this industry has experienced steady and rapid growth over a short period thus reflecting the trends towards convenience among consumers from different parts of the world. This industry has remained the cornerstone of many country's economy, employment opportunities and career in the modern world. The industry has seen growth in both urban and local communities globally. The impressive trend that has been seen over the past decade is such as the improvement in design, atmosphere and decor, which has made establishing a restaurant in the market very effective (Siddiqui, 2006).
Business owners of restaurants in the modern world spend a lot of money to ensure that their restaurants are attractive to their clients and they do this through ensuring that they have the best designs, decor and so on. I want to venture into Treme restaurant business because I want to bring uniqueness in this industry in order to beat my competitors through setting ambiance and mode that will create a niche for the restaurant and distinguish my business from others.
The Legal Form of my Business
Treme is a sole proprietorship business. A sole proprietorship can be referred to as a business owned and managed by an individual who is personally accountable for all the profits and debts incurred in the same business. This is one of the simplest form of business in the modern world that one can operate under; it is not a legal entity except just a business owned an ordinary individual. There are many advantages of running a sole proprietorship business because one has the liberty to do what they want with the business and this means whether the business will make profits or not the owner has full control over all the possible outcomes (Fullen, 2005).
A sole proprietor cannot be fired by anybody because he owns the business thus he can do his job at his own speed. In this form of business, owner can decide to give any name that he or she wants to and this means that the owner can call his business by his name or just come up with a fictitious name without being asked for any explanation. This is the most famous legal forms of commerce because it has the ease of setup, nominal cost and its wide simplicity. When it comes to legalizing a sole proprietorship business, one only needs to register their name and get legal licenses of the business and there it is ready to start operating.
One of the only disadvantages of the sole proprietorship is that the business owner remains responsible for any losses that the business undertakes and this means that if the business goes through a financial crisis then creditors are allowed to come and bring lawsuits against the business owner. When such suits take place successfully, then a sole proprietor is forced to pay the debts with his or her own pocket money and this is where the pain of the money lost is greatly felt. An additional benefit of a sole proprietorship business is that while creditors write business checks, they are written with the name of the business owner or with the fictitious names that the business bares and this means that a sole owner can bring lawsuits against another company that bears its business name. Many businesses in the modern world begin as a sole proprietorship then along the way depending on its rate of growth it graduates to more complex forms and this benefits the owner in a huge way (Spadaccini, 2007).
Break-Even Analysis For Treme Restaurant
Break-even analysis of Treme restaurant will help my business to ensure that the business is updated with how products are adding or dropping in the existing range of products that we will have. For example, if Treme Restaurant has product A & B. And they are faring like this:
Treme Product A Product B
Market demand 1500 units' 2000 units
Selling Price / unit 350 700
Variable Cost/unit 250 450
Production Time/unit 5 6
Product A Product B
Selling prince/unit 350 700
Less: variable cost/unit 250 450
Variable Cost/unit 100 250
Contribution Time/hr 5 6
Production time/hr 20-41.67
The optimum mix of the break-even analysis is based on the maximum production of product B. since it has a higher contribution per hour. The hours available will be 14000 Hours. If product B. is manufactured and sold according to maximum market demand it will consume 12000 hrs (2000x6) while Product A will consume 7500 which is (1500 x 5)Product B. will only be lacking 2000 hrs (14000-12000)
Product A will remain with 4500 hours (12000-7500) the maximum quantity will be 900 units (4500:5)
Treme Cost Operating Report
Fixed Cost Item
Salaries (Including Mine)
Utility bills, broadband internet connections & phones
Interest & repayment on start up cost borrowing
Trade association Membership fees
Professional Indemnity Insurance
Cost of Web hosting
Variable Cost Item
Sales & Marketing literature postage and production