In Belmont, NC, Betty Wilson is researching her options in opening up a Christian Coffee House with having the potential of having three different business partners. Ms. Wilson is looking and weighing her options in what type of business form she will start up. She will ultimately have to come to a final decision and will need to seek not only prayer but have a concrete business plan to ensure her startup of her company starts on the right foot. Below are the questions asked within the discussion board four that Betty Wilson should address through her journey in becoming a business owner.
1. Address the pluses and minuses of the various business forms that Betty might adopt and recommend one, giving clear reasons for your recommendation:
Betty Wilson has several options available to her for the establishment of a business in North Carolina. The first option available to her is to buy an established franchise. One major advantage of this option is the support and training structure that normally comes with the franchise (Fickes 2001). Likewise, the issue of determining what name to use and it is available legally is resolved. Depending on the franchise name, recognition may be already established. Since there are other franchises established, this would provide Betty an opportunity to interface with other owners for both advice and recommendations.
There are however disadvantages for the franchise option. Betty's vision of the business might have to be modified based on the rules and regulations that she agrees to by having the franchise name. Even if another franchise fails, Betty's franchise reputation could also be impacted depending on the situation. The other danger with a franchise approach is the possibility that the parent company develops fiscal problems and could go under which would directly impact Betty.
Option two available to Betty would be to establish a sole proprietorship. One major advantage of this design...