Building a Business Assignment Example | Topics and Well Written Essays - 1000 words

Building a Business - Assignment Example This is a risk that many entrepreneurs must face, yet the most committed ones often manage to find a way to get the business to a point where it can thrive. If I eventually found a partner to run the business with, my share in the business would reduce to half. However, I would also only be liable for half of the debts. The ultimate goal is to become a limited liability company or corporation so that I would not be personally affected by any debts that the business would incur. This is a risk that many entrepreneurs must face, yet the most committed ones often manage to find a way to get the business to a point where it can thrive. If I eventually found a partner to run the business with, my share in the business would reduce to half. However, I would also only be liable for half of the debts. The ultimate goal is to become a limited liability company or corporation so that I would not be personally affected by any debts that the business would incur. Because the business will begin as a sole proprietorship, I would not have the ability to raise funds right away. Any money that the business would start out with would have to be personally funded by myself. This is a huge risk, especially if the business goes bust. The initial startup capital would be $50,000. This is not a huge amount, but it would get the business started at least. Because I would be running the business by myself, I would look to source sports shoes at wholesale prices and then on-sell them at retail prices. Using this selling strategy would result in very little profit at first. However, it would slowly pay off my initial capital of $50,000. Obviously, if another partner joined the business, they would be able to invest some funds. This would mean that the business would reduce its debt by up to twice as fast as I could by myself. Eventually, if the business gets to the stage of an organization, money could be raised through stocks and shares. Because Sporty Shoes would not gain instant mark et recognition, the demand would start out very low. Very few people would have heard about the brand, so customers would generally be local. Once the business gained more of a reputation, demand would increase, particularly from other states. Demand can be expected to remain high over the long term because sports shoes are needed for all types of athletic activity.