The Process of Starting a Business - Case Study Example

This is not a good option, however, because the franchisor dictates the business model to the franchisee. This means, that the business that Betty wants may not give the impression of a Christian coffee house at the end. Again, Betty will have to pay loyal fees, an idea that is not good for a business of her kind. Franchising is therefore not an option both on a legal basis and Christian basis as there will be many foreign dictatorial powers.

On the other hand, this discussion agrees that Betty will gain operational expertise should she opt to use this option. This is because franchising will attract a host of qualified investors to her limited liabilities, but will many foreign non-Christian behaviors and ideologies (Ibrahim and Angelidis, 2005). Secondly, concerning the option of a sole proprietorship, it is important to note that this is the easiest option for Betty to start a coffee house. This option indeed requires very few legal issues to look at.

Betty will have full control over her business idea. In business terms, this option has high risks associated with it. On the contrary, this discussion does not agree that welcoming many customers brings risk, but rather these customers are the source of income e and advertisement at the same time; it will be an opportunity to instill Christian values in the customers. However, it is agreed that this option limits Betty`s ability to expand the business through a capital increase. Thus, it is recommended that this is not a good option to consider for starting a coffee house.

Thirdly, the best choice is that of a corporation; this allows investors as well as partners to take part in the business. Studies have shown that, legally, a corporation is a legitimate entity that allows a group of people to exist and act as a single legal person. This allows them to raise funds through shares. This discussion agrees that a limited liability corporation suits the business idea for Betty (Ibrahim and Angelidis, 2005). This is because it gives owners corporate protection. This option will allow Betty and her partners to come up with the details of management and operating agreements, legal applications for the approval of the corporate name, and the creation of the article of incorporation.

This serves the purpose as an option for Betty to take because it has many advantages and limits risks as they are shared among partners and investors. Other partners and investors To start with, Betty`s husband, John is a good partner as he offers the right financial support. The discussion agrees that Betty and John do not need to handle separate roles in the business or one should not be dormant because as a man's wife, they are one and this is a family investment. Thus, Betty and John can seek shares in the limited liability corporation and provide services in the end in exchange for the shares.

It is therefore recommended that they should work together to achieve and realize the goals of the business; they can be guarantors for a loan to their corporation.