A partnership is a single business where two or more people share ownership.
Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business.
Because partnerships entail more than one person in the decision-making process, it’s important to discuss a wide variety of issues up front and develop a legal partnership agreement. This agreement should document how future business decisions will be made, including how the partners will divide profits, resolve disputes, change ownership (bring in new partners or buy out current partners) and how to dissolve the partnership. Although partnership agreements are not legally required, they are strongly recommended and it is considered extremely risky to operate without one.
Types of Partnerships
There are three general types of partnership arrangements:
- General Partnerships assume that profits, liability and management duties are divided equally among partners. If you opt for an unequal distribution, the percentages assigned to each partner must be documented in the partnership agreement.
- Limited Partnerships (also known as a partnership with limited liability) are more
One of the first steps to business planning is determining your target market and why they would want to buy from you.
For example, is the market you serve the best one for your product or service? Are the benefits of dealing with your business clear and are they aligned with customer needs? If you’re unsure about the answers to any of these questions, take a step back and revisit the foundation of your business plan.
The following tips can help you clarify what your business has to offer, identify the right target market for it and build a niche for yourself.
Be Clear About What You Have to Offer
Ask yourself: Beyond basic products or services, what are you really selling? Consider this example: Your town probably has several restaurants all selling one fundamental product—food. But each is targeted at a different need or clientele.
One might be a drive-thru fast food restaurant, perhaps another sells pizza in a rustic Italian kitchen, and maybe there’s a fine dining seafood restaurant that specializes in wood-grilled fare. All
Metal structures have become popular for of a number of reasons. They are easy to construct, affordable and take a shorter time to complete compared to the other options. Whether you want to construct garages, warehouses, barns, or industrial buildings, you can always use metal to do so. The problem, however, is that not many people know how to choose the right metal building construction company. You need to understand that the contractor you choose for this job will always determine how good your structures will be. It is not a wise idea to just hire the first company that you come across even without knowing what to expect from them. Always do the following.
You have to look at the kinds of equipment that the company uses to construct the buildings. Starting from metal fabrication to joinery and the actually finishing, they should assure you that they have the right tools. There is no way a contractor can promise the best results when they do not even have the required tools. The best companies have invested in state-of-the-art equipment and keep upgrading them to meet the ever changing need of their clients. They also have highly trained staffs who
In today’s competitive world, people are more eager to run their own business rather than working under the other person. Every year, large masses of people establish the company and become successful entrepreneur. Have you ever thought about why they prefer to set up their own small business as opposed of working in another company? Some person does not like to work in the organization where they don’t have the opportunity to develop their innovative ideas and implement them for the success of company. If you are running own business then you can steer your company in right direction by making the decisions about how you can get the prosperous and bright future. There is no need to work with the co-workers that you don’t like because you can make the decisions about whom to hire or fire. It is believed that risks always bring reward so if you are running own business then you have to deal with all the problems by yourself and get the more benefit. As a company owner, you will face new challenge each day and learn something good from those difficulties. If you are among those people who are looking for the best Business
Do you ever have need to print up a bill? Some people refer to them as invoices. I do not have a full time business, but I do make money selling some stuff on occasion. Sometimes I sell to businesses. They always want an invoice with their purchase order number on it. Instead of adding to my costs by buying a bookkeeping software bundle, I just go to the Invoicehome website to make and email or print invoices when I need them.
They have plenty of design templates available. I picked one that matches the Americana type of presentation of my little side business. For regular customers I do a lot of handwritten invoicing. They do not mind. However, when I sell to a business or corporate client, I have to deal with an accounting department. Even when the CEO or owner makes a purchase, they refer me to someone in accounting to get paid. They want a printable invoice with a purchase order number on it that they give me and a sequential invoice number. Read more
To succeed in business today, you need to be flexible and have good planning and organizational skills. Many people start a business thinking that they’ll turn on their computers or open their doors and start making money – only to find that making money in a business is much more difficult than they thought. You can avoid this in your business ventures by taking your time and planning out all the necessary steps you need to reach to achieve success. Read on to find out how.
1. Get Organized
To be successful in business you need to be organized. Organization will help you complete tasks and stay on top of things to be done. A good way to do this is to create a to-do list each day – as you complete each item, check it off your list. This will ensure that you’re not forgetting anything and you’re completing all the tasks that are essential to the survival of your business.
2. Keep Detailed Records
All successful businesses keep detailed records. By keeping detailed records, you’ll know where the business stands financially and what potential challenges you could be facing. Just knowing this gives you
Organization and Management follows the Market Analysis. This section should include: your company’s organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors.
Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know who’s in charge, so tell them. Give a detailed description of each division or department and its function.
This section should include who’s on the board (if you have an advisory board) and how you intend to keep them there. What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions? Reassure your reader that the people you have on staff are more than just names on a letterhead.
A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will
Once you’ve completed the Service or Product Line section of your plan, the next part of your business plan should focus on your marketing and sales management strategy for your business.
Marketing is the process of creating customers, and customers are the lifeblood of your business. In this section, the first thing you want to do is define your marketing strategy. There is no single way to approach a marketing strategy; your strategy should be part of an ongoing business-evaluation process and unique to your company. However, there are common steps you can follow which will help you think through the direction and tactics you would like to use to drive sales and sustain customer loyalty.
An overall marketing strategy should include four different strategies:
- A market penetration strategy.
- A growth strategy. This strategy for building your business might include: an internal strategy such as how to increase your human resources, an acquisition strategy such as buying another business, a franchise strategy for branching out, a horizontal strategy where you would provide the same type of products to different users, or a vertical strategy where you would continue providing the same products but would offer them
If you run a business with a physical storefront, collecting sales tax is straightforward. You charge your customers the sales tax required by the jurisdiction where your business is located. For example, if you operate a retail store in Nashville, Tenn., you collect both state and local sales taxes from customers buying merchandise at your store.
But suppose you start selling your products online. Does that mean you charge customers the same sales taxes that you do to those who are coming into your store? It depends.
When to Collect Sales Tax Online
If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes.
In legal terms, this physical presence is known as a “nexus.” Each state defines nexus differently, but all agree that if you have a store or office of some sort, a nexus exists. If you are uncertain whether or not your business qualifies as a physical presence, contact your state’s revenue agency. If