Types of Partnerships

Types of Partnerships

“ There are basically two types of partnerships: general partnerships, which consist of general partners who share the management of the entity, and are personally responsible for the partnership’s obligations and each other’s actions: and limited partnerships, which consist of two classes of partners: general partners who run the business, and limited partners who are essentially investors”.

If a business is going to be owned by two or more owners, the simplest business form to create and operate is general partnership. The partnership agreement should be written up and signed by all partners to avoid problems later. The flexibility of a partnership helps the business to operate that best fits the needs of the partners. When the partner contributes capital to a partnership, the partner receives an ownership interest in all of the partnership. A partner interest is a capital asset that can be bought or sold without permission of the other partner and that can increase or decrease in value over time. A partner of two or more individuals may require the effort of all the partners to succeed, especially in the early life of the business.  If one partner withdraws or dies, the existence of the partnership may be threatened. To protect the partnership, you should consider setting up buy/sell agreements and “key man” life insurance policies on the partner. This agreement specifies how the value of the partner’s interest will be determined if the partner wants to leave the partnership.

Starting up your business

Starting up your business

Most business owners understand that a traditional loan is one way to fund a business startup. A cash loan is one source that provides credit. Through exchanging something for a source of value for a promise to pay it back. The other type of credit you may be eligible for is vendor credit. I have a friend that just started her own business and she uses this source.  Vendor credit allows anything that is shipped to you with the terms of net thirty days or more allows you to add and collect your markup, a markup is your gross profit, before you have to pay the vendor.  This is not as good as a long term loan, which allows time for you to establish yourself first. If you make carful purchases, you may be able to turn inventory quickly and pay for it after you have a sold it to your customers.  Having a business that only takes special orders to be shipped directly will allow you to collect your sale and send the purchase portion off to your vendor.  It is a good idea to check all the recourses available before choosing which will be best for your business.

Mistakes first time Entrepreneurs make

Mistakes first time Entrepreneurs make

            Becoming an Entrepreneur takes a lot of dedication, research, planning, and budgeting.  First time entrepreneurs often make mistakes, here are some I have learned through Entrepreneurship classes I have taken. With planning the right steps and avoiding common mistakes can help your business grow and develop into a strong structured business.

1.    Don’t focus on one single idea:  Exploring new and different ideas and options to see which will work the best for your business.

2.    Not having a clear idea:  Write a business plan, set both short and long term goals.

3.    Lacking experience:   Before trying to start up a business it’s important to have experience, a business degree, and work experience is a great start.

4.    Not having enough capital:  May cause your business to use up all its capital before the business can earn enough profit.

5.    Choosing the wrong business structure:  There are different structures to choose from, sole proprietorship, s-corp, or limited liability Company’s. Choosing which one can be confusing and buy making the wrong choice can put your business at risk.

Starting your own business can be rewarding, exciting, and fun.  I believe if you put your mind into it you can become a successful Entrepreneur.

           

I- Search Ideas

“My three top topics"

         The first topic I choose is Entrepreneurship; I would like to learn how to effectively run my own restaurant. I would enjoy working for myself instead of working for someone else. I am pursuing a degree in Business Management.  I want to learn the correct steps to take to make my dream a reality. I have learned the first step is to have a business plan to help organize and develop goals to accomplish. Second you need a business proposal for the bank that you are trying to get financed through. I would also like to know how to keep, maintain, and run an effective restaurant.

            My second topic I would like to learn more about is working moms.  I am one and I understand how difficult it can be.  I would like to learn how to balance work, family life, be less stressed, and enjoy working.  I would also like to know if women are underpaid vs. Men.  The top jobs women like to do and how to earn a better job as a single mom.

            The third topic I choose is back to school moms.  I also chose to go back to school as a mom.  I would like to know if there are other grants, scholarships that women with children can earn. The top degrees women prefer, and the amount of money women can make with a degree.