Business (How to start up) I

What's up every steemian in the house, the engagement challenge is on, I hope your participating, anyway this is not an engagement challenge post, but should engage because you going to get an overview on what business, this is a deep scale, please share your thoughts and upvote thanks.

To truly understand business we have to know what it is,
Definition
Business can be defined as all the activities involved in produce goods or services for the satisfaction of human with sole aim of making profit. But not all businesses are aimed at making profit, some are for satisfaction of human wants alone they are called statutory company, we will be dealing with that as wego on.

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Origin of business/means of exchange @jammyroberts perspective

We all wonder, or we never did think about how it came into existence, anyways I will tell you to open your mind to understand it's purpose from the beginning, so you can push whatever business your doing to the top.

Business came as a result of man incapability to satisfy his every wants, so he needed a way to do this, since he did have everything he found someone who did and proposed an exchange and at that point in time he needed what the other had so he agreed and then Trade by batter existed. As time went on people could not equate their goods and it brought about augment of cheating, so the use of valuables such as gold etc, for exchange and this made it easier to exchange but not portable or will I say comfortable enough, so we advanced to paper exchange which satisfied alot at that time till date, but of recent cryptocurrency/digital currency has started been used by few businesses. Business had now gone from been physical to being digital and we will take consideration of that also.As a result of the numerous wants of man business has taken different forms just to satisfy it, people left small scale to large scale and this brought about the various forms business below.

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Forms of business

As I said earlier human wants are the cause of the existence of business, and now business are in the form of,

• sole proprietorship
  Sole proprietorship form of business was the first to exist because it needed no special skill as of old times, it is what we call a one man business, which means one man controls all the activities of the business which involves decision making, price setting and many more. Of recent time skills are being needed for this form of business but not in all variation, I will say skill is needed for online self employed individuals.

Pros of sole proprietorship

¹ Minimal intial capital requirement
Not much capital required to start up the business, it's really cheap but it doesn't really apply to the start of an online business.
² Easy decision making
No need to ask anyone for permission because your the boss of the business, no waste of time when it comes to this aspect.
³ Individual employment of profit.
The profit is all yours, no patterns to share with in this form, sometimes no employees just you which simply means the expenses of this form of business is low.

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Cons of sole proprietorship

¹ Unlimited liability
In this form you can borrow alot from friends and family, even from the bank there is no limit to this.
² Limited funds
Only your money is been used to finance the business, and it's always a little amount compared to that if other forms.
³ Sole risk vesting
You lose, and you bear it alone no patner to suffer the risk with you.

• Partnership
  Is not too different from sole proprietorship, here, two more person's merge their finance power together for the purpose of enlarge their profit. Here it is co-owned by different individuals. It has rules which is called the deed of partnership and it contains,
• name of the business, partners and their addresses
• Amount of capital contributed by each partner
• Profit sharing formula
• Method of admitting partners
• Guidelines for expelling any member.

Pros of Partnership

¹ shared management and expertise
More people involved, more knowledge to run the business.
² More specialization
Each member can handle a particular segment in the business.
³ Freedom of double taxation
It is not a legal entity that can be taxed.

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Cons of Partnership

¹ unlimited liabilities
Still had the capability to more more than what it has as resources.
² profit sharing
In this case one person among the partners might be the true own of the idea but he doesn't eat all his idea returns.
³ it's agreement is inherent
It is not a legal entity.

• Corporation
  A corporation is simply defined as a business that has an identity different from its owner, with it's ownership dividend into stocks and shares.

Pros of corporation

¹ Access to funds
It's requires large capital and this help meet almost or every need if the business.
² limited liability
You can't borrow more than what the company assets is being worth.
³ High growth potential

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Cons of corporation

¹ High set up
Money is not that easy to come by, especially the amount needed for this form
² conflict of interest
Not all the co-owners of the business might agree to a particular decision made for the business
³ Double taxation
The owners are taxed including the business itself.

• Franchise
  Franchise is a form of business that involves a business owner giving his company name, methods, and trademark. It's is the given of one business operations to another to set up with those methods under agreed conditions.

Pros of franchise

¹ Inheritance of established management
The receiver of the business name alo receive it's management process.
² Popularity and recognition
You inherit the potential customers of the business.
³ Staff training
You staffs are being trained to carry out the activities of the mother business.

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cons of franchise

¹ Sharing of profit
You share your profit with the mother company
² Interference in management
You can perform your intuition everytime
³ inheritance if bad image also
Any bad image the mother company has is been passed down to yours.

We have finally come to the end of this post, I hope your decision on which form business to partake in, note it can be physical or digital it doesn't really matter, if this post was helpful and comment below, expect part II tomorrow, thanks for reading.