Business Opportunity Project

Running Head: Business Idea 5

Identification of a Business Idea

Duuna Donald

BUS 362 Introduction to Entrepreneurship

Instructor: Emanuel Errico

June 8, 2015

Introduction:

Daycares are a much - needed business in our society, it allow parents to earn money for their families while their children are taken care of during the work day. This concept of activity can be emotional and lucrative reward. One of the hardest parts of this business is planning because of the many decision to make before getting started. Some people enjoy starting up a new company, but for people who want a business that has been proven to be lucrative in the past, buying and existing business since to be their best option. Purchasing and existing business give you the opportunity to have a head-start in the organization process. Purchasing and existing business might also allow you to get assistance from its previous owner. Purchasing an existing business will help you with ideas and marketing plan to keep your business profitable.

Significance:

Buying an existing business give a person that is interested in owning their first business an opportunity to own a business without have to complete the paperwork and the work involved in starting up a new company. Purchasing an existing business could also reduce the risk of starting up a brand new business. Study show “80% of most new business fail in the first five years of starting up (Steams, T. M. (1998).” Purchasing an existing company that has been that have been in business for over five years can be beneficial in comparison to opening a new business.

Timeframe:

The timeframe of purchasing a new business can be time-consuming, however, buying an existing business may take less time for many reasons. The first reason that a startup company may take less time is because you will already have a list of clientele and supplies, this will save the amount of time you have to spend on build these resources. Purchasing an existing business may already have a building that the owner is renting or own. If you buy an existing business, the owner is more than likely willing to sell the building or rent it to you with the acquisition of the company. If they are renting the building, you might have to ask the landlord if the lease is transferable. Buying an existing daycare will already have legal approvals necessary to get your business started from your local government, this will save the amount of time you have to spend on applying for approvals.

Location:

Buying an existing business that are already established in its current location. As the new owner, you can analyze its site based on its location and the company history. Purchasing an existing company allows you to determine if the business was been profitable. Purchasing existing company lets you have stable statistics for the company you are buying.

Legal Forms of Business:

People who are starting a business can choose from a broad range of legal structures. This broad range of legal structures provides different legal protections, management choices, and incentives. Each state has different laws that allow various types of business structure. It is important to talk it over with a qualifying attorney before determining which legal form is right for you. A sole proprietorship is considered to be the easiest business form and the business structure that’s used. As implied in the name the sole proprietorship it is a company that’s used by a single owner. A partnership considered to a very simple business structure, and like sole proprietorship it is a structure that automatic. A partnership is a legal form between two are more people. A corporation is entirely different from sole proprietorship or partnership. A company is a legally recognized structure that is required to be registered by the state and is required to pay taxes. A corporation shareholder is not liable for the companies lost and liabilities. The newest business structure is LLC, the LLC give business the same protection as corporations, but it allows them to be flexible. An LLC owner is managers who are taxed individually. There are other forms of various structures available when starting a business it is important to decide which legal structure best fit your business. .

References:

Steams, T. M. (1998). Entrepreneurs: Don't be disheartened by failure of start-ups. Business Journal Serving Fresno & The Central San Joaquin Valley, 322334, 30, Retrieved on June 7, 2015.

Steingold, F.S. (2015) Chapter 1: Which Legal Form is best for Your Business? In Legal Guide for Starting & Running a Small Business (pp. 3-33). Nolo, Retrieved on June 8, 2015.

Zimmerer, T.W., Scarborough, N.M., & Wilson, D. (2008). Essential of Entrepreneurship and Small Business Management (5th edition). Upper Saddle River, New Jersey, Pearson Education.