Organizing your own business

Introduction

Different entrepreneurs are willing to start their own business and define a specific market segment to which their business will belong. However, a lot of people are not clear on defining their goals and objectives that will guide their business strategy. Most entrepreneurs consider profitability as the main target they wish to reach; over the long-term, their objectives and goals can be extended to include gaining competitive advantage and being distinguish than other competitors and rivals in the same market. Nevertheless, having your own business enables you to work independently, you will not need to work for somebody else but yourself. Running your own business will let you set your own rules and guidance that can better be suitable to your goals and objectives. In this paper we will discuss the idea of owning a business and being the leader of a certain number of employees; we will evaluate different types of business organizations in order to identify which one is more appropriate to our business. We will identify and explain different factors to be considered in selecting our business and how many employees we need to hire in our business to achieve success in the marketplace.

How to Organize a Personal Business

The first thing anyone needs to do in order to run his own business is to identify different opportunities available in the marketplace and threats that can be challenging and requires him/her to perform certain efforts to achieve market success. The type of business we will choose here is a fast food restaurant. Opening your own fast food restaurant implies that you must have a staff made up of more than eight employees in the first place. Fast food business model requires great efforts to be achieved from different workforce sectors. You will need to hire, for instance, at least two chiefs, three or four waiters and two delivery workers. An entrepreneur who desires to run his own fast food restaurant will have two choices in front of him, either to acquire a fast food franchise, such as KFC or McDonald's, or to own a brand new fast food restaurant. Once you define your choice you will need to organize your business structure by setting a suitable business plan that better identify types of food to be served, appliances and equipments needed, workforce activities and duties, salaries and wages system, different menus, accounting application and so forth. You can offer hot and cold drinks, fresh or canned food, these factors can make your brand food more distinguished and differentiated than your rivals in the market.

Different Types of Business Organizations

For any startup business, it is critical to consider available types of business organization in your country or area and identify which form of business organization is most appropriate to you market segment, business type and location of your business. Organizational types of business can differentiate between three main types, sole proprietorship, partnership, and corporation. Each type has its own features, pros and cons that make it suitable to different types of business. When choosing the appropriate type of business organization, an entrepreneur needs to consider different factors, such as financial concerns, legal issues and governmental policies, taxation and other financing and personal concerns.

The sole proprietorship type of business organization grants a single owner the full power to run the business solely. It is easy to form or dissolve your business as you are the single owner. It grants the entrepreneur unlimited liability in handling different issues, regarding to choose the types of products and services to be offered, staff members, and different organizational structure components. However, in most cases, businesses that adopt a sole proprietorship type are more vulnerable to fold in a limited time if the owner failed to continue running the business because of death or any similar reason for instance. The second type is partnership, this type implies that two or more individuals run and own the business together, it is and easy to form type of business organization, it is distinguished from the former type in imposing a certain number of regulations to rule different activities of different owners. However, potential conflicts among the owners can raise the possibility of dissolving the partnership and fold the business. The third and last type is corporation, it is the dominant type followed in large companies as it is characterized by unlimited commercial life, ease of ownership transition and greater flexibility in capital rising by selling common or preferred stocks. However, corporations are subject to regulatory restrictions, and require large operational and organizational costs because of the double taxation and other administrative expenses. For the type of business we focus on in our paper, fast food restaurant, the suitable type of business organization will be the partnership, because it is more flexible in management issues than corporations and less risky to fold or dissolved than sole proprietorships.

Factors to Be Considered In Selecting Your Form of Business

When making a decision regarding the type of business organization, an entrepreneur requires considering a certain number of factors that affects how to run and organize his business structure properly.

• Future requirements: you can determine the needs and requirements of your business on the short run, but it is difficult to identify your long term requirements in terms of employees, financing resources, system of accounting, workforce activities, new product lines and other similar requirements, unless you adopt a long term oriented strategy.
• Capital requirements: how much you need to finance your new business reflects the way to attract potential investments to your business. To raise capital, you can create a well-defined business plan to present to your investors; such business plan must include information on business type, and products or services provided.
• Location: the area you choose for your business can affect the organizational form you will adopt in your business. If your business will be in one of the Gulf countries, or in the Middle East, for instance, you better adopt a partnership form of organization in the short run, and then you can expand your business to a corporation in the long run.
• Healthcare issues: you must confirm your commitment to different rules and regulations imposed by the government in terms of health codes and provide all necessary licenses that guarantee the level of commitment your business achieve towards healthcare issues.

Terms and Conditions Regulating Your Business

Before you open your own fast food restaurant, you need to define the number of owners, in the case you follow a partnership; the number of owners can be three or four owners. Certain other rules must be considered in your contract that will govern the relationship between you and the rest of the owners. Such rules must cover the following issues:

• Number of employees and hiring priorities
• Products and services provided and different product lines
• Schedules and time plan to be committed by different workforce members
• Budgeting issues and cost effectiveness principle
• Profitability levels and market segmentation issues

Conclusion

In this paper, we discussed the idea of owning a new business and we identify the business we wish to own as a fast food restaurant. We identified different factors affecting this type of businesses and concluded that partnership is the best form of business organization that is most suitable to open a fast food restaurant. We figured our that an entrepreneur can choose between franchising or opening a new business brand for his own, and we referred to different factors that can affect the type of business we will open. We finally illustrated the number of owners who can share business ownership and different terms and conditions that can regulate the way they can run their business and relationships among them.