Business Structure - Essay Example

Business Structure ID Lecturer Myself and my brother aim to start a business that would ask for making craft items and then selling the same over the Internet. The factors that need to be analyzed under this scenario include the fact that both of us would take orders on the Internet, talk to each other for the requirements of the customers, find raw materials, develop the craft items, seek the payment in our respective money accounts, remain in touch with the customers give them a preview of what we are doing on and off through a picture, ask for their feedback and if any changes they would like to see before their final product is made and shipped to them, seek their consent with what has already been made thus far, restart working and then finalizing for details within the crafted items. Both of us would then indicate to the customers that their goods are ready to be shipped and their details would be given which would include the date of delivery, the time and place, etc. this business structure would change when there is an artistic thing being developed which does not need prior approval from the customer at all. In those cases, only the final product would be shipped to the customer and its preview would not be provided beforehand. Selling craft items over the Internet is a phenomenon that was unknown some 5 years back but it has been given a lot of room for growth by the people who believe in the power of the Internet. Since the two of us are working hand in hand, I believe a partnership would be the best route forward. This will enable us to see things in a proper way as well as allow us both to have a clear cut perspective with regards to the profits and losses that are incurred in the wake of doing this very business. Since the Internet is a virtual world, both of us need to know this beforehand that this partnership can be filled by sudden measures of shock and awe since some customers could turn out to be frauds and thus deprive us of our hard earned money (Gore 2000). In essence, we need to be wary of the risks that are associated with selling on the World Wide Web if we already know the positives. The Internet is a world of its own and it is filled with possibilities that seem to be far-flung. We can cash upon the goodness that could be derived from the Internet and hence success would come in with the passage of time. This would eventually bring in the effectiveness that we are looking for from the long term standpoint. I believe the business structure that would be best for both of us would be that of a partnership that is shared on an equal footing. We would thus be accountable for our actions in front of one another and hence all our endeavors and efforts would be in front of each other, which is a positive that could be cashed upon immensely. The reason why a business partnership is chosen in this scenario is because it will make both of us liable to be the owners, however on a 50-50 percent share. It would then give us the required leverage to call the shots with each other’s consent which is a very important subject of consideration within any partnership that exists in the time and age of today. We would be accountable to one another for our actions, undertakings and decisions, which would not only be fair on our part but also accommodating for one another so that both of us feel contented and satisfied with the events and happenings on the business front. As we are brothers, we would definitely understand the need to remain in touch with each other through a 50-50 percent share. Also a partnership is the best mechanism that could be devised under such a scenario where there are only two people upon whom the business’ mantle rests and who could eventually take it forward in a very positive way (Liao 2009). I believe this business structure (partnership) would allow us to be creative all this while as well as give the room to exploit our strengths in the best possible manner. We would then be able to showcase what our true talents are to the respective customers who come on our website and order for making and indeed shipping the crafts to them. The quality standards would also be assured since we have a partnership in essence that needs to be properly worked upon so that success would eventually creep in, within the long term scheme of things. The factors that could be used in order to analyze the decision to have a partnership as our modus operandi for the business structure would comprise of the past experiences that the people have had as well as the shared beliefs that we could have within our folds. This would give us a good indication of where we stand and how things would shape up within the coming times. It would also make us ready beforehand to understand how the good and the bad could be taken within our folds and what we as partners could do in order to have a business which is based upon strengths that have already been cashed upon by similar line of businesses (Bunnell 2000). This indeed is a very tricky situation but one that promises us quite a lot in terms of our profits, however we need to be ready beforehand concerning the losses that we could incur in the wake of the very same. We need to be wary of the facts that we have studied till now as these will highlight the basis of our success within the strategic extent of our business. We must remain proactively coherent with what we both need and hence a policy needs to be devised in order to reap the best possible returns. This will ensure success for our online business in the long run. References Bunnell, D. (2000). The E-Bay Phenomenon: Business Secrets behind the Worlds Hottest Internet Company. Wiley Gore, A. (2000). Digital Opportunity in the New Millennium: Making the Internet Work for All Americans. Business Perspectives, Vol. 12, Spring Liao, J. (2009). Organizational Dynamic Capability and Innovation: An Empirical Examination of Internet Firms. Journal of Small Business Management, Vol. 47 Word Count: 1,016 Read More