More work-week 8- perfecto

BUSI 561

APA format

in cite citation

300 words FOR EACH

3 schorly refernces FOR EACH

read the passage below and reply to both classmates 300 words for each reply

CLASSMATE 1

Advice Shania on which of the business forms under consideration best accomplishes her business goals. Thoroughly explain the reasons for your recommendation.

Shania Jackson is thinking of opening a Christian coffeehouse. After reading this case study, I would suggest Shania to open a business as a sole proprietorship. “The sole proprietorship is the easiest and least expensive way to create a business organization” (Browne, 2015). Most of the time, it is difficult to run a business with partners. Everyone partner has an opinion on how a business should be run. Even though various ideas and opinion help grow businesses, it can also create a conflict between partners. “A sole proprietor has complete control and decision-making power over the business. Sale or transfer can take place at the discretion of the sole proprietor” (Small Business, 2007).

Advise Shania on whether her company should become a franchise or should open as an independent coffeehouse. Explain your recommendation.

 In my opinion, Shania, who is a mature Christian woman, should start her business as an independent coffeehouse. Considering her connection with big churches in the area, including a Mormon temple and a Large Kingdom Hall of Jehovah’s Witnesses, an independent coffeehouse business would be the best option for first time business starter such as Shania. Owning a franchise business has both advantages and disadvantages. “A franchise provides an establish product or service which may already enjoy widespread brand-name recognition. This gives the franchises the benefit of a pre-sold customer base which would ordinarily takes years to establish. A franchise increases your chances of business success because you are associating with proven products and methods” (WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF OWNING A FRANCHISE). As mentioned above, franchise business has many advantages like, established name, employer and employee training, loyal customer, financial support, business improvement ideas etc. However, as a new business starter, I would suggest Shania to go for independent business regardless of the all the benefits that franchise business provides. “The franchisee is not a completely independent. Franchisees are required to operate their businesses according to the procedures and restrictions set forth by the franchisor in the franchisee agreement” (WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF OWNING A FRANCHISE). Basically, if you are in innovative business owner and would like to initiate your own ideas, franchise business does not allow you to do so. Franchises have a set of products, price and rules and regulation to run the business.” Franchisees must be careful to balance restrictions and support provided by the franchisor with their own ability to manage their business. A damaged, system-wide image can result if other franchisees are performing poorly or the franchisor runs into an unforeseen problem” (WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF OWNING A FRANCHISE).

Perform a corporate name search at this website to determine if the name Shania is considering is available for use in the State of Colorado. Also assess whether the name is available as a trademark. Even if the name is available, advise Shania on whether it is good choice. Explain why or why not.

It is important to define differences between business name and a trademark. “A business must register the name with the Secretary of State and, as long as it is distinguishable from any other business name within the state, the business will be recognized under that business name and no other business can use that name within that one state. A trademark on the other hand is not a name, but property. A trademark is generally used to brand a certain good or service and has a value in of itself” (Business Name vs Trademark). Therefore, business name is only limited to the rules and regulation of the states and Trademark is registered under federal are therefore registered under federal law. 

Name of the business that Shania is considering to use for her business has already been used in Colorado State. Even if the name is identical, if the services provided by both company is different, Shania may be able to use that name depending upon the rules and regulation of the state. “There are a few situations in which it may be okay to use a name that is already in existence—just be sure that the name you are using is not famous! For example, if the name that you want to use is already being used by another company, but the other company sells a drastically different product that you plan in selling, then you may be able to use an identical name” (FindLaw). “A trademark is any word, name, symbol, or design, or any combination thereof, used in commerce to identify and distinguish the goods of one manufacturer or seller from those of another and to indicate the source of the goods” (Legal Information Institute). My suggestion to Shania is that she can register the business name as “The Gathering Place” since she is starting a coffee shop business which does not seems to match with other businesses that are registered under the same name but providing different services.

Advise Shania on which of the interested persons she should include in her business, why, and in what role(s). If she chooses not to take in a particular party, what reasoning should she give each person, if any? Your analysis must include biblical perspectives, such as biblical considerations of marriage and of business relationships with non-believers.

 

As I have suggested earlier, it would be a great idea start a sole proprietorship since she is planning to open a Christian coffeehouse in Denver near her Christian community and has connections with people form church and temple. According to case study, Shania’s sister Kelsey is interested in being a part of the business and Shania’s neighbor Carlos interested in participating in the business to make extra money. I would suggest Shania to hire her sister and Carlos as her employees so that she has more trust over a family member and friend to run the business smoothly. In response to Kelsey’s interest in being a business partner, Shania can explain her sister all the personal differences that might come in between business partners which can make their relationship bitter. “While working together may improve your familial bond, it can break it as well. Family business partners who experience conflicts in the workplace often lack the ability to leave that conflict where it came from, resulting in turmoil within the relationship as a whole” (Family Affair: The Pros and Cons of Having Family Members for Business Partners, 2016).

 

Assume that Shania opened her coffeehouse and became so successful that she has 20 employees and needs to promote 1 of them to be the night shift supervisor. The employee base is quite diverse: in fact, Shania believes she should promote a racial or ethnic minority employee to demonstrate how inclusive her business has become. Explore the legal, ethical, and biblical issues are Shania makes her promotion decision entirely on that basis. What are her options?

 

In my opinion, as far as promoting employee goes, I believe that it has to be measured by many factors. “A promotion is an important decision since it doesn’t only involve change in rank but also more duties and responsibilities and hence must be taken after careful assessment and evaluation of one’s skill’s performance and several other factors, such as performance, length of service, merit and ability, education/technical qualifications, assessment of potential, spacing of the promotion and career span of the individual and training” (When And How To Promote Your Employees, 2015). Therefore, as an employer, one of the best legal and ethical ways to promote employee is based on their merit and ability. Another option to promote a business is to research various demographic factors such as age, gender, marital status, race, education, income and occupation. For example, if the business is opened in a Latin community, it is very important to hire an employee who can speak and understand the language. In this case, employee evaluation based on his or her length of service, merit, and other factors may become minor and ability to speak language could be a priority.

Classmate 2

It is hard to advise Shania on whether her company should become a franchise. There are many questions unanswered. For example, how much is the contribution of capital for the new business? Or which franchise would she be interested in? Shania would need to ensure that the franchise is okay with her promoting Christianity in the establishment, meaning associating Christianity with the name of franchise. Does she have a specialty in coffee that she can buy products without a guide from a Franchise?  The study case does not express the amount Shania’s husband will be contributing, but it does take a lot of money to open a franchise. Additionally, she is will be committed to paying the franchiser an initial investment, a percentage every year of her profits, abide to their rules and customs and any wrongful publicity the franchise may ever have. To further view the franchise situation, I found a coffee franchise in Colorado called Scooter’s. According to their web page, “it is an estimate of $276,000 to $463,500 to open a coffee shop with their name. Additionally, they have a monthly fees of royalty of 6% and advertising fee of 2% with a minimum net worth of $500,000.” Even if Shania does have all the capital required from a franchise and the franchise was okay with the endorsing Christianity in the establishment, I would recommend Shania to move forward to a Limited Liability Company because although Franchises may have its advantages, it is still considered to be like any other business and it can fail as well.  “Many people buy a franchise expecting a "business in a box." The misconception is that you open the doors, customers will come, and it'll run itself. There's no guarantee that will happen, though, especially if the brand name isn't one that everyone is intimately familiar with.” (Williams, 2013) The investment for a coffee shop as mentioned by Scooter’s website, it can be over $400,000 dollars and it is still not guaranteed it will succeed. Additionally as a Franchise, Shania would need to abide by their regulation, coffees, reputation, etc., hence it is not technically her business to run. “You'll have the franchisor's corporate headquarters to deal with—the mothership, if you will. This isn't a relationship that will likely work for someone who is completely headstrong and independent. For instance, if you own a McDonald's, while you can do things like hire and fire employees, you can't paint the golden arches purple. But that's a good thing. You don't buy a franchise because you want to change it. You buy it because it's a tried-and-tested business model.” (Williams, 2013)

I would recommend for Shania to open a Limited Liability Company and to be taxed as a partnership. There are a couple of reasons why I think a LLC would best suit her to accomplish her goals. A LLC is a type of business that would create a limited liability to the personal assets to the owners of the company. For example, if the LLC gets sued, in most cases the suit cannot touch the owners’ personal assets. It is considered to be two different entities. Additionally, the owners in a LLC are considered members and they are required to advise each on any changes. “A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities.” The reason I believe that Shania should open a LLC is first because of her husband wanting to be an investor without managing operations or management. Shania can make him a silent partner, however still be part of the LLC to prevent any conflict. Also, if Shania decides to bring Carlos as a partner, it prevent Carlos from making decisions without her consent.

I wouldn’t recommend the name “The Gathering Place” as to the name of the shop. When I researched the name on the Colorado Secretary of State website I noticed all of businesses with similar name or exact name that has status as delinquent.

20041390356                      The Gathering Place, Delinquent January 1, 2006               Batch Event        Delinquent         DLLC                 11/08/2004

20061011009      20121071360      Circle's The Gathering Place LLC Statement Curing Delinquency Delinquent         DLLC                 04/26/2006

It is important for a new business to choose their name wisely and a name associated with delinquencies or already taken should not be picked. “If you choose a business name that's too similar to a competitor's name, you might find yourself accused of violating the competitor's legal rights (called "trademark infringement" or "unfair competition"), and you could be forced to change your business name and possibly pay money damages.” (Stim, ESQ) Furthermore, I would choose a different name that would represent more the culture and indicate that it is a coffee shop. “The Gather Place” does not sounds like a name of a coffee place and many people might not realize it at first what it is.

There are three people that either want to be part of the business hands on or silent, Marvin (the husband), Kelsey (the sister), and Carlos (the neighbor). According to the case study, Marvin would like to invest in his wife’s business idea; however he does not want to be part of operations or management. Kelsey, who is Shania’s sister, would like to be involved in the business, but her husband would like her to continue to stay home with her teenage children. Final, Carlos is a neighbor that would like to be part as well to earn extra cash. For Marvin, I would add him to the Limited Liability Company as a silent partner. Meaning that that he would be considered a partner in the LLC, however he will not be able to give instructions of how the LLC is being operated. “A Silent Partnership Agreement allows a silent partner to share in the business' gains and losses, but maintain a more hands-off approach when it comes to the day to day management of the company.” (Rocket Lawyers)  I would have Marvin sign a silent partnership agreement to avoid any conflicts in the future. In Kelsey’s case, it is hard to tell her that she can join the business when her husband is opposed to it. It would put the business in the middle of their marriage and it can affect the business as well as their marriage. Although Kelsey would to join the business and I think it’s a great idea, as she already has teenage children that are in school, however, later on she can turn around and tell Shania that she can no longer be in the business because of her husband. This can affect the business because the business projection was based on her contribution, which it would be technically from her husband since she doesn’t work. Therefore, although I think having Shania’s sister join, I think it would not be beneficial for the business to have that conflict brought into a new business. Now, speaking in a spiritual way, I don’t see anything wrong with Kelsey marrying a non-Christian as 1 Corinthians 7:12-14 says “To the rest I say (I, not the Lord) that if any brother has a wife who is an unbeliever, and she consents to live with him, he should not divorce her. If any woman has a husband who is an unbeliever, and he consents to live with her, she should not divorce him. For the unbelieving husband is made holy because of his wife, and the unbelieving wife is made holy because of her husband. Otherwise your children would be unclean, but as it is, they are holy.” With that being said, I still don’t believe that her husband should oppose to something that may make his wife happy to do.

Final Carlos, I would consider to add to the LLC as a partner. Although the case study doesn’t elaborate on Carlos’ character or relationship with Shania or Marvin, I will assume that if he knows of the business that he has a good relationship with them. I already like the idea about the different churches in the area where Shania can advertise her new coffee shop. I like that Carlos does not think inside the box promote to only certain Christian churches and to promote the coffee shop as a place that no matter what denomination, this coffee shop is place that people come together in hardship, prayer, etc. Although Carlos is a non-Christian, I would not consider him a non-believer. I would seek more of his characteristics and the way his conducts himself more than if he’s Christian or not. I’ve found it through my experience that at times the person core values are not necessarily come from their religion. Carlos can believe in god and be a non-Christian; therefore I wouldn’t consider him as a business partner.