A Dream of Owning a Business - Book Report/Review Example

A Dream of Owning a Business Part A Owning a business Owning a business is always the dream of many people, young graduates finishing college and university have a burning desire to have some element of financial freedom while living their dreams. While some finish to get employment opportunities in line with their profession, there are those who follow the line of self-employment, which in most cases is achieved through establishment of business ventures. Entrepreneurship is a journey that some people follow and achieve eminent success, this if after getting good advice and mentorship from those that have walked the journey and succeeded. In the same way, there are those who fail deliberately in the first engagement; however, this is often said to be the attributes of entrepreneurship. For this reason; people joining the field of business to be their own bosses and managers have to be fully aware of the requirements and expectation in the course of this journey. Most governments encourage people to participate in economic activities by creating opportunities for other people to engage in the same; this is by creating an enhancing business environment. A conducive business environment is characterized by proper infrastructure that facilitates the starting and smooth flow of business activities in the various sectors that people choose to engage in. at the same time, the government create a positive business environment by reducing bureaucracies required in registered new business including offering incentives to people who establish certain business that offer key products to people. Currently, advancement in technology has made it easier for people to start and run business activities, this is creating reliable platforms upon which business people can promote their products and actively engage their clients. For Sarah, the idea of having her own business is an important step towards gaining financial freedom and leaving her dreams. Types of business activities There are different types of business activities that can be suitable for Sarah in her journey to have her own business. These different types of business activities have various features that Sarah can make an evaluation to take one that fits her capital and ability to manage it effectively. It is important to understand that each of this type of business requires dedication and service to all that it takes in order to make it successful, for this reason, there has to be a proper evaluation of the specific requirements for each before settling on one of them (Kimmel&Weygandt 2011 45). For each of these types of business, there are different requirements relating to registration and running, type of liabilities and amount of control that any prospective entrepreneur should have. There are businesses that offer unlimited liabilities to their owners; in this case, the owner is personally responsible for the management of debts of the business, he and the business are one and the same thing. On the other hand, there are those businesses that offer limited liabilities, here, in case the business runs into debts, creditors are at liberty to sue the business and not the proprietor, such businesses are said to be legal persons (Zimmerer&Scarborough 2008 102). This is because they have the ability to sue and be sued in a court of law, at the same time; they can enter into written agreements and carry out various business transactions in their own name according to its registered objectives. In this understanding, Sarah has two kinds business to chose from; those that have unlimited liabilities and those with limited liabilities, the choice of which depends on the amount of control she wants to have in a particular business. A Business with Unlimited Liabilities For businesses that have unlimited liabilities, there is a sole proprietorship and partnership kind of business. In terms of registration, she only needs to have a business name, her identification details and the objectives for which she wants to register her business, which in this case is selling computers. Upon receipt of the business license, Sarah will be free to start business operations and establish her business, she may choose to employ people to assist her in the daily management of the business or do it herself (Steingold 2004 76). It is important to understand that as the business grows, she will need more people to help her in managing the business; this will require that she set up employment structures for hiring and managing her workers welfare. For Sarah, a partnership will not be a good businesses option considering her wish to have full control and ownership of the business Part B The success of any business lies in its ability to grow and develop, it should develop a good brand name and attract clients, thus increasing its client base. Sarah has managed to establish her business and the excellence of her products and services have started paying off by attracting other business partners. Fred has come up to work with Sarah, by expressing an interest to sell Sarah’s computers on her behalf. In this case, Fred wants to be an agent of Sarah’s business enterprise, getting computers from Sarah and selling them, before commencing on this deal, there are various issues that have to be put into perspective. Legal Issues Sarah and Fred need to ensure that they have entered into a legal agreement that is binding; this will ensure that interests of each party are taken care of, and any arising issues are solved effectively. Fred may choose to choose to be selling Sarah’s computers alone or include other brands as well. In this agreement, Sarah is supposed to provide Fred with the advertisement rights; this includes the right to use her business name while doing business transactions according to their written agreement Duties and responsibilities As an agent, Fred is expected to sell products from Sarah’s business, assess and provide a report on the nature of the market and how his new products will have to fare on in the market. Sarah on the other hand is expected to give Fred full marketing rights of her computers including the brand name and other tools needed to run this agency. However, Fred is at liberty to employ strategies that appeal to the market needs in at her place, this is because; some of the strategies that Sarah uses may not be practical in the place Fred wants to run the business. In this case, the business agreement should be flexible enough to allow Fred to include her own creativity and innovations in making the business successful. Penalties for Breach of Agreement The agreement reached by Fred and Sarah has to be signed before an attorney, this will make it easy for prosecution and legal action against the party that violates the agreement. In a case there arises breach of agreement, the parties will have to chat the way out, if they fail to agree, then it will be the duty of the court to make a decision about their business relationship. If the court finds gross violation of the business agreement, it may order termination of the business deal and order compensation for damages to the party that will be aggrieved in the disagreement. Managing a debt crisis In the course of business operations, mistakes are bound to arise, they may stem from the business or from clients. In this case, the computers that Sarah sold and installed to clients have not satisfied them and they want compensation. One of the ways to solve the issues is by calling the clients and assessing the damages, she could then promise to deliver better computers that meet their needs at no extra costs, here she will have to take care of the additional costs so that she does not lose her esteemed customers. Secondly, she could source for other computers and give them to her clients to use in the mean time while she takes time to assess the problems with the computers she sold. At the same time, she could also send some technicians to repair the computers at her cost and take of the damages caused to her clients. Bibliography Kimmel, P. D &Weygandt, J, R. 2011. Accounting: tools for business decision making. Wiley, Hoboken, N.J. Steingold, F. 2004. Legal forms for starting & running a small business. Nolo Publishers, Berkeley, CA. Zimmerer, T &Scarborough N, M. 2008. Essentials of entrepreneurship and small business management.Pearson/Prentice Hall, Upper Saddle River, N.J. Read More