Introduction
Currently there is an emergence of the concept of entrepreneurship within the business environment. This requires that the potential investors have to scan the environment in order to determine the most viable business enterprise to establish. In line with this concept, my brother and I scanned the environment and identified a business opportunity in the Crafts industry.This was after conduction of a comprehensive analysis of the identified business opportunity in order to determine its feasibility. Considering the impact of technological development on a firm’s level of profitability, a consensus was arrived to incorporate the concept of electronic marketing. This means that our products would be marketed over the internet. After analyzing the business opportunity viability, the main concern was on the business structure to establish. The discussion of this paper aims at illustrating the most appropriate business structure for our firm. It also illustrates on the factors to be considered in making decision with regard to selling the products over the internet.
Business structure
In determining the crafts business firm, one of the factors to be considered is the structure of the business. Business structure refers to an organizational framework that is legally recognized by a certain legal authority in order to conduct the diverse business activities. Within the business environment, there are a number of business structures that investors can choose from. These include the sole proprietorship, partnership or the corporation (Business dictionary.com, 2009, Para. 1).
With regard to the business structure, the most appropriate business structure for our crafts firm is the general partnership business structure. This is due to the fact that my brother and I are the only parties who will establish the crafts business with the sole objective of making a profit. Considering the fact that the firm is newly established, it will be possible for the firm to benefit from he pass through taxation that was established by the US government. This means it is only the individuals who will be taxed by the government with regard to the returns from the business. This will enable us to avoid double taxation as in the case of corporation business structures (Jean, 2009, Para. 1).
The decision to settle business structure also resulted from the consideration of the fact that the management of the firm would be enhanced. This is due to the fact that it is us who will be personally responsible with regard to the debts.
It is also easier to form the general partnership since there are limited formalities that are involved at its inception. Despite this, the firm has to be guided by an agreement between my brother and I. This is in the form of a partnership deed that stipulates the terms of our business relationship.
In making the decision with regard to electronic marketing, a number of factors will be considered. These include the following;
Cost involved and technological requirement
In order for internet selling to be effective, the firm has to establish a website. The website has to be connected to the entire network in the market thus enabling a large number of customers to access it. In order for the website to function effectively, it means that the firm will have to have the necessary technology with regard to computer system. The computer system has to be well installed and maintained.
Also to be considered in the process of designing the website is the cost involved in website planning since specialized techniques will be required (Terry, 1999, Para. 4).
Available internet selling options
With regard to incorporating internet market, one of the factors that will be considered is the various ways in which our crafts items will be marketed. Being the management, we will consider the networks provided by the market and determine the most efficient method of internet selling. This is due to the fact that the firm may not initially have its own website. This means that the firm will sell its crafts items using the shop fronts that are provided by various firms. This will help us in the initial process of using internet selling in that our crafts items will be promoted to the available search engines (Selling on the internet, n.d, Para 8)..
Buying behavior of the craft items customers
Before implementing the internet selling decision, it is worth noting the customers buying behavior. This would help in the determination of whether the decision will result into an increase in the firm’s level of profitability. If the customers have appreciated technology in their buying behavior, then there is a possibility of the firms succeeding.
Conclusion
In the establishment of every business, it is important to consider it legality in terms of the available business structures. Various forms of business structures should be evaluated to determine the most effect structure to adapt.
In the current world firms which have incorporated technology in their operation such as internet selling stand a higher chance of succeeding. This is due to the fact that they reach a wide range of customers. An analysis should however be conducted to determine the effect of internet selling before its implementation.
References
BusinessDictionary.com (2009) Business structure. Web.
Ferrell, O.C., Fredrick, J., & Ferrell, L.(2008). Business ethics: Ethical decisionmaking and cases.Boston: Houghton Mifflin Company.
Kubasek, N.K., Brennan, B.A., & Browne, N. (2009). The legal environment of Business: A critical thinking approach. Upper Saddle River , NJ : Pearson-Prentice Hall.
Terry, G.(1999) Website planning: what to consider before you build your website. North Carolina: Techsoup.org. Web.
Jean, M (2009) Pass through taxation: US business taxes and laws. About.com.