Professor Edwin Martinez
August 25th 2012
The creation, financing and marketing a business is how to help the entrepreneur to carry out a high-growth innovative company with basic knowledge and fundamental to carry out the business of your dreams.
Creating, Financing, and Marketing a Business
• Sole Proprietorship • Partnership • Corporation • Limited Liability Firm (LLC/LLP)
Partnerships: Two Heads (and Bankrolls) Can Be Better Than One In a Partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. The partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, and what steps will be taken to dissolve the partnership when needed. It is hard to think about a breakup when the business is just getting started, but many partnerships split up at crisis times, and unless there is a defined process, there will be even greater problems. They also must decide up-front how much time and capital each will contribute, etc. General Partnership divides responsibility for management and liability as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states differently. Advantages of a Partnership:
• Partnerships are relatively easy to establish. • With more than one owner, the ability to raise funds may be increased. • The profits from the business flow directly through to the partners' personal tax returns. • Prospective employees may be attracted to the business if given the incentive to become a partner. • The business usually will benefit from partners who have complementary skills. Disadvantages of a Partnership: • Partners are jointly and individually liable for the actions of the other partners. • Profits must be shared with others. • Since decisions are shared, disagreements can occur. • Some employee benefits are not deductible from business income on tax returns. • The partnership may have a limited life; it may end upon the withdrawal or death of a partner. Types of Partnerships that should be considered: Limited Partnership and Partnership with limited liability Limited means that most of the partners have limited liability (to the extent of their investment) as well as limited input regarding management decisions, which generally encourages investors for short-term projects or for investing in capital assets. This form of ownership is not often used for operating retail or service businesses. Forming a limited partnership is more complex and formal than that of a general partnership.
Funding the Money: Funding Options for Small Business
First determine what your financial needs, including the amount of money you need and how long it takes to pay its debts. Determine the type of loan you need: line of credit, term loan, leasing for car purchases, credit cards, etc., And the type of the creditor to whom you can go, which can be a microfinance agency, a credit union, commercial bank or a venture capital fund.
Personal Resources is one way to obtain financing that does not require us to have to pay interest or repay the money, we use our personal savings or other personal source that we have, for example, using credit cards or sell any personal asset.
Loans is a transaction whereby a financial institution (bank or other financial institution) makes available a certain amount of money by a contract.
Following the granting of the loan, together with the capital provided by the loan, we acquired the obligation to repay the capital in a period of…