Sole Proprietorship, Partnership, or Corporation
BUSINESS PROSPECTS OF “THE THUNKER” 1
BUSINESS PROSPECTS OF “THE THUNKER”
Elizabeth Alfred
Bus105
October 2010
BUSINESS PROSPECTS OF “THE THUNKER” 2 Business owners can form sole proprietorships, partnerships, or corporations. Each type of business entity has its pros and cons that can have a significant impact on the business and its owners. When considering a new product for a saturated market such as the clicker or the three-pronged power cord, there are several pros and cons to consider with each possible choice.
Although the author personally has no inventive talents whatsoever, for the purposes of this paper the potential invention will be called “The Thunker”. As the family is not exceptionally well off in this scenario, starting costs will be an issue of great importance. There are closely similar items to “The Thunker” saturating the current market, but they pose incredible safety hazards that “The Thunker” does not. Therefore, there is exponential growth potential, and expansion costs will need to be considered rapidly to meet expected demand. As the prospective owner with no financial skills other than common household budgeting and little management experience consisting of only of raising children, there are a lot of concerns of the potential legalities, paperwork, production, marketing, and general management that taking on such an enterprise alone would create. There is always the possibility that someone could steal the idea because the proper copyrighting paperwork isn’t filed, for example.
The potential market for “The Thunker” is currently experiencing only a 2% annual growth rate, and “The Thunker” would not only open sales for a close to replacement only market, but has the technology to be applied to many other products as well, improving them and vastly increasing the need for
BUSINESS PROSPECTS OF “THE THUNKER”
Elizabeth Alfred
Bus105
October 2010
BUSINESS PROSPECTS OF “THE THUNKER” 2 Business owners can form sole proprietorships, partnerships, or corporations. Each type of business entity has its pros and cons that can have a significant impact on the business and its owners. When considering a new product for a saturated market such as the clicker or the three-pronged power cord, there are several pros and cons to consider with each possible choice.
Although the author personally has no inventive talents whatsoever, for the purposes of this paper the potential invention will be called “The Thunker”. As the family is not exceptionally well off in this scenario, starting costs will be an issue of great importance. There are closely similar items to “The Thunker” saturating the current market, but they pose incredible safety hazards that “The Thunker” does not. Therefore, there is exponential growth potential, and expansion costs will need to be considered rapidly to meet expected demand. As the prospective owner with no financial skills other than common household budgeting and little management experience consisting of only of raising children, there are a lot of concerns of the potential legalities, paperwork, production, marketing, and general management that taking on such an enterprise alone would create. There is always the possibility that someone could steal the idea because the proper copyrighting paperwork isn’t filed, for example.
The potential market for “The Thunker” is currently experiencing only a 2% annual growth rate, and “The Thunker” would not only open sales for a close to replacement only market, but has the technology to be applied to many other products as well, improving them and vastly increasing the need for
References: Ebert, R. J., & Griffin, R. W. (2011). Business essentials (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall Reuters, Thompson (2010). Pros and Cons: Business Form and Taxation. Retrieved from : http://smallbusiness.findlaw.com/business-structures/business-structures-overview/business-structures-overview-pro-con-tax.html