What Are the Different Types of Businesses That Exist in the UK - Coursework Example

TYPES OF BUSINESS IN UK The United Kingdom consists of Great Britain and is actually twice the size of New York. Whenever starting a business in Britain, to be able to affiliate it with the proper UK trading association, would be able to give you many benefits like The UK trade groups may provide representations when faced with roadblocks and problems within the legal systems etc It may assist as a public liaisons between the general public and your business It may support your business in the marketplace. Other resolution services maybe provided for conflicts arising between the public and the members as well. In setting up a business that is comparatively new to you, you will surely make observations and also projections about the market for your services and products, and then take the wise decisions about taxation, liability, ownership, plans for any kinds of expansions, or then the legal forms of business if the need arises. Each and every business organization and their respective locations are different and are generally needed to be observed for rules and regulations. Before you finally make up your mind to the type of business that you intend doing or going in for, it is advisable to go in for the professional advice of your solicitors and accountants and have a good attorney, well versed with all the rules and regulations, to help you decide and plan your project and business. There are various types of businesses and types of plans that you could chalk out for getting the proper result and feedback from your business. A business plan is basically a document, incorporating things like market research, operational requirements, promotional strategies, and the financial projections. The plan is mainly used to raise capital, reorganize the actives and resources and preparations for the final sell out as well. A strategic management plan focuses on the on the management personnel and its main team. I may incorporate the procedure, manuals of how the operations should take place, policy and the organizations. It fits mainly into the operational aspects where all the staff requirements. And all the management philosophy is made. Amongst the many kinds of businesses and business organizations that are in the UK are Partnership, Private Limited Company, Public Limited Company, Franchise and Sole Trader are the most common ones. Out of the many important decisions that any business owner has to face, whenever they start any new business is to decide as to what structure the business will consist have, of what kinds it will be. The decision would include many things like How much capital you would be needing Total number of people you would be keeping or employing The way you distribute the earnings Any assumptions of liabilities Time you would be taking to operate the business Legal restrictions, if any. The types of business you start Tax implications Let’s talk about a few types of Businesses and their Advantages and Disadvantages Partnership There are different types of partnerships. The tow common ones are general partnerships and limited partnerships. Through an oral agreement, two or more people can easily form a general partnership. Though it is not recommended that an oral agreement should be started, instead with the help of an attorney, you should draw up the legal documents. The fees for this would be high as compared to a sole proprietorship. But with this legal partnership you will be able to dissolve any future disputes regarding business. A major disadvantage is that the partner can be help responsible for the deeds and actions of the other partners, including his own. Things included in a Partnership Agreement are as follows Duration of the partnership Compensation for all the partners The division of profit and loss Type of business The share or investment of each partner in the business Settlement clause for all kinds of disputes Distribution of assets in case of partnership getting dissolved Some provision for partnership dissolution Some provision for incapacity or death Provision for changes in future, in the partnership Sole Proprietorship/ Trader It is the easiest, simplest and cheapest way to start a business in the UK. The sole trader runs, and owns the business, using ones own personal capital to start. It’s as simple as finding the exact location for your business and getting started right away. All you have to do is obtain local licenses, depending upon the local government, and register a name for your business. Of course fees will be payable as well. An attorney should ideally be hired, whose fees will also be paid, though the legal formalities are very few. The running costs and start up costs are lower than most kinds of businesses. One drawback is to increases the business investments, as the owners capital is fully used up in this. Corporation The main structure of a corporation is rather a complex one. It is the most expensive as compared to the earlier two mentioned above. It is not necessary to hire an attorney, though it is highly recommended to avoid future disputes. The main or corporate is mainly with the person who owns the business of the maximum shares of the stock. Incase a group or a single stock holders own at least 51% of the total number of stock, they can make the policy decisions. And a lot depends upon the size of the corporation, as to how informally or formally it can operate. Franchise It mainly means trading, but with the name of a third party, under a license granted by them, under the table. The third party solely retains the control upon the quality standards of the business and its main running. There are many types of business that you could start in to become an entrepreneur. Many people who want and try to buy the business like of the consultancy franchise or the internet marketing companies, do it mainly because they have the choice to work either full or then part time and have the freedom to choose at the time suitable to them as well. The affordability factor is the prime most in this kind of business as well. And is something that is appealing, and it does not require any kind of stock keeping or no equipment needs to be purchased for this and worth very little, and reasonable capital , this kind of a business can be started. Such kind of information about the ideal home based franchise which maybe for sale is available also on the internet which is below the $50,000 marks as such, is there for free from WSI, which is one of the top technology and internet companies, and is recognized globally as the number one company and one of its kinds as well Home Business These are turning out to be the most common businesses, because of the latest technology and the usage of internet. The internet has made it possible for the people confined at home to venture out to shop, or trade online or simply sit at home and manage businesses. Even with hardly any business experience and a zero investment, they are able to start a small business that brings you a decent amount of money at home for your loved ones and family as well. This is the main reason that home businesses are becoming more appealing to most of the people now days. All you need to do to get started is to gather information from the internet as to how to start such a business, for those who do not have much of an idea to start it. You could set up your own website and put various links on it regarding your business, for which there are ways and means to learn from the internet also. The amount required starting up your business in very minimal, and there are many offers that come online or come on the internet with the help of which you can get your business rolling. You can start by purchasing a kit from the internet, which have all the information and train you to set up your own business, with prices which are very low and tempting for anyone to start a business. With the help of this you will be able to sell the products on the internet, receive the payments and process the orders made as well. You have the choice to choose the types of products that you wish to sell from your end, and watch in the rolling money each month. Its not that there is not much of working in this type of business, provided you have your set timings and work time. You need to be patient for things to happen in any home business. Once you have to devote more time to your business, that is initially, and later you can sit at peace and let the business run, with your family. Each one of us is trying to find simpler means to make their own lives happier, have time to spend with family and friends and with the home business as well you can make millions and retire from the hectic schedule of working all day long. To develop great evaluation techniques is a good idea, as it saves a lot of time, money and energy, if you are bale to evaluate and do your business properly. This is something that most mothers can sit at home and do, while taking care of their children as well the home. It is said that normally a project is made with 20% of actual work and 80% of panning. So, if you have planned out your project properly, then the work can be efficiently completed, quickly and properly. Wasted time is avoided and the projects are completed within the budget and the time set for them. So think in advance and think deep as to the type of business you want to do, and start working upon that there after. Do not try to take up each and every business opportunity that comes your way, as you would be wasting a lot of time, energy and resource like that, only to find in the end, that its not the type of business that you were looking out for and similarly its not generating the income that you were desiring as well. Plan your project systematically like you can assess the main opportunity first where you can assess the market size and value, you can know if what you have planned is viable or not, define the business is second, third would be design and lay out the business, and lastly validation of the business. The last three take the entrepreneur through more details like business case and its assessment, development of sales, development of the market, technical evaluations. Many people who have followed this technique have later realized that they should have gone in for this much earlier, because of which they had wasted much of their time. The woman beside working from home and looking after their children and families would also learn to become independent by taking such kinds of business opportunities and having the choice to work from home, choose a time that is suitable to them, and remain within the house in order to take care of all the things as well. Such a type of privilege is not there with partnership dealings, or the franchise, where you have to put in and invest a certain amount. This is a major plus point in this type of business, especially for those requiring the money, yet are not able to go out or leave the homes because of various reasons. The disabled are also a major part of this, especially as they are not dependant on anyone for work and yet will be able to earn and manage a decent kind of living for them also. Over all this kind of a business have known to be working out best in the UK, more so with the problem of recession coming up all over the world. Read More