Small-Business Idea Paper

1322 Words Apr 30th, 2012 6 Pages
Small-Business Idea Paper The Dream of Cooking – Grandma Style Christopher Havins University of Phoenix ACC/561 Chuck Royes February 15, 2012

Small-Business Idea Paper The Dream of Cooking – Grandma Style Since graduating high school, starting a new business has been a major priority. In 2012, the federal government, in coalition with state governments, has released funds for creating small businesses. With much excitement surrounding the prospects of becoming an entrepreneur, proper research and planning is the first step in running a small business. Because of the recession, Dub & Bradstreet reported in 2011 that “across the United States, small business failure rates rose by 40%
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Sole Proprietorships is one of the most common with beginning business, especially those that only employ a few individuals. A sole proprietorship has an individual owner, which creates an advantage by not having several people/managers to consult to get a decision made. That is not the only advantage, as this type of business form is the simplest to form (easy to establish), the legal and licensing fees tend be less than other forms of businesses, and the profits stay with the owner and not split. However, a sole proprietorship does have some very important disadvantages to explore. Capital is often difficult to secure, as the owner is solely responsible for the debt of the company. Furthermore, being the sole owner means that not only will the kitchen skills need to be exemplary, so do the business skills. The sole proprietor needs to wear many hats and possess many skills to ensure that the restaurant runs properly, in addition for being responsible for all the business debts/liabilities, employee actions, and customer safety. Protecting the company through insurance can be costly and create hardship on the first year business. Partnerships have advantages over sole proprietorships because the business form increases the ownership, which reduces the liability and strain on a sole owner. Other advantages of partnerships include having a more people to work out problems due to increased labor, skills,

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