There are several types of business types ranging from a sole proprietorship to a fully-fledged company. However, the interest Shania has is in four, namely: sole proprietorship, partnership, corporation and an LLC (limited liability Company). A sole proprietorship is a type of business in which only one individual (or with spouse or family) runs a business. A partnership, on the other hand, is one in which two persons or more agree to pool certain proportions of resources into a business. Therefore, the profit gained is shared among them on the basis of their contribution. A corporation is much more complex. It provides certain privileges and rights to the owners of the business that cannot be experienced when a business is owned by an individual. A limited liability company is one formed by one or more people, but through a written agreement (Wagner, 2014).
The best choice of a business type in the case of Shania is a limited liability company. A reason to support the choice is based on the creation. The restrictions are fewer than all the other forms. For instance, there is no restriction on the number of members which ensures that the business can solicit funds for its operations through member contribution. Besides, the assets of the business owners are protected since they are not held personally responsible for the debts of the business. The business bears its personality. It also heightens the credibility of the business because an LLC creation is more of making a formal commitment to the business. Therefore, the chances of getting clients are high. All the other forms of business have their advantages.
However, their disadvantages outweigh the advantages. For instance, a corporation is a rather solid business type because it yields financial and tax benefits. These advantages, however, can be offset by other considerations such as increased license fees. Nothing comes minus disadvantages. The LLC being the best idea does not mean it is perfect. A disadvantage cursed to LLC business type includes a difficult ownership transferring process. To transfer ownership of a limited liability company, all owners must be on board with that decision. The fact that it is a newer business type compared to others, such as corporations imply that there is little precedence in terms of laws that govern matters concerned with companies. A final potential disadvantage includes the expenses that occur during formation and operation of the business. To avert the effects of these disadvantages is by ensuring that the capital is sufficient to cover for hiccups along the way (Wagner, 2014).
Franchising is a very crucial tool today for a business to acquire financial soundness. It is all a matter of utilizing the brand and business model of the business over a period prescribed by the owners of the brand. An advantage of franchising is that it caters for the financial problems of the business. Furthermore, it lowers operational fees for the business owner and is sometimes a strategic move to franchise. It also strikes off the trial and error that is unnecessary during starting and operation a business. There is a lower financial risk because of this and, as a result, the profit margins are increased. Among the disadvantages is the inarguable fact that it is a field plagued by extortion. The requirement that the owner should pay the franchise fees has led to franchisors making illegal income from their franchisees.
Besides, upon termination of the contract, all the good will that the business has earned in the local market goes to the franchisor that becomes a major blow to the business owner. It is also a requirement that the business should abide by the franchisor’s systems of procedures, standards, policies, and operations. The profit margin is also reduced because of the requirement to pay levies and royalties. As much as the franchising deal sounds good, it may require a keener consideration. It is advice on my part that Shania should take up the franchising deals but not blindly. Because the deals offer advantages such as training, she could utilize them, which will allow her to save more and invest in the future of the business. In that manner, once the contract ends, she has a base level to commence from (Wagner, 2014).
‘The gathering place’ could have been an appropriate name for the place because it is intended to attract Christians. In addition, the locality in which it is in makes the name rather perfect since it is surrounded by the churches. Thus, it becomes a point where Christians can gather and replenish their strength. However, it is important to note that the stated advantages are all in the business sense. The name is available for use according to the Colorado business website. However, there are other businesses that bear names that are dangerously similar to the name Shania chose. The Trademark law is in place to smother consumer confusion in terms of trademarks. Therefore, if Shania chooses to use the name ‘the gathering place,’ she might suffer in future because of trademark confusion. Furthermore, using a name that has congruent counterparts diminishes the uniqueness and quality of the trademark if Shania intends to adopt one (Aragon, 2012).
Business relations are also important in a business. According to the church theologies, secularization is a major problem which has brought about the division between the Christians and non-Christians. in a business situation, the Bible theology demands that we must walk hand in hand with the new testament theme which is unity in the church: one body, spirit, faith, baptism and God. Theological scholars believe that this unity and wholeness are dependent on the communal fellowship which aims to fulfill our service to Christ. Marriage, on the other hand bears significance in the bible owing to the fact that the central theme in the bible is love. It plays roles such as reproduction (in Genesis), reflection and maintenance of our reign over God’s creation. Marriage enables us to be a witness of the world as John 13:35 says. Thus, in a work situation, it will enable both Christians and non-Christians to work in a unity (Ruiz and Vargas-Silva, 2014).
The importance of relationships in a business is that they will determine the work ethic and culture in the business in terms of how the staff will be handled. Having a sister to work for her is not the best idea because she might want to be over-privileged because she is the sister to Shania. Thus, when she makes a mistake, Shania may be forced to overlook it which is bad for business. The neighbor, Carlos, has a great business mind and could be an investment for the business. The bible encourages unity among its followers no matter their beliefs. The fact that Carlos is a non-Christian should not hinder him from participating in the business (Ruiz and Vargas-Silva, 2014).
A business name goes a long way to package the business to its customers. The first impression bears its origin on the name of the business. Thus, it is a recommendation that Shania should dig further to get more information before falling on a decision. After all, information is power.
Aragon, L. V. (2012). The problems of owning culture: global intellectual property law and ‘traditional’ community arts in Indonesia. Asian Ethnicity, 13(4), 399-417. doi:10.1080/14631369.2012.710077
Ruiz, I., & Vargas-Silva, C. (2014). Remittances and the Business Cycle: A Reliable Relationship? Journal of Ethnic & Migration Studies, 40(3), 456-474. doi:10.1080/1369183X.2013.787704
Wagner, M. (2014). Asleep by a Frozen Sea or a Financial Innovator? The Hudson's Bay Company, 1714-63.Canadian Journal of History, 49(2), 179-202.