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Unit 2 Discussion
Your Name (First M. Last)
School or Institution Name (University at Place or Town, State)
.
Who are the founders /owners besides you if any?
My best friend is the co-founder of our shoe store.
Who are the potential customers?
We are going to start a shoe store that would appeal to a wide range of potential customers. These customers include children, men, and women of all ages and sizes.
What makes your business unique in the marketplace?
There are two elements that make our business unique in the marketplace. Firstly customers could place an order and shoes are made as per their recommendations. Secondly, we mainly focus on using environment-friendly material.
Strengths
I am going to start a shoe store with my best friend and would register this business as an LLC because it has limited liability, all the owners could be involved in management and most importantly, LLC ownership has the power of both partnership as well as cooperation (Mills,et,al,2019). In LLC, taxes are paid by the owners, not by the company, and the tax rate for an LLC depends on the owner's total income. In case the net income is high, an LLC would be allowed to pay taxes at a lower rate than a regular corporation. Corporate owners in some situations have to pay double taxes, while in an LLC the owner would never be charged double tax.
Weakness
Now, we don't have a board of directors as it is a partnership under the LLC banner. There are a few pitfalls when operating an LLC and these include, keeping of diligent records as the manager needs to be judicious for keeping the personal money and personal business separate. Secondly, not everyone can cash the cheque on their names so the cheque must be deposited in separate corporate accounts. So for this type of business (partnership based shoe store), we have to make a new separate corporate account for depositing money.
References
Mills, K. G. (2019). Fintech, Small Business & the American Dream: How Technology Is Transforming Lending and Shaping a New Era of Small Business Opportunity. Springer.
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