Business Formation Basics

Almost every individual dreams of owning a profitable business. Some may also be interested in an undertaking for the common good, example in case of non-profit organizations. But when we speak of a profitable business, it is not merely inflow and outflow of cash. A lot of detailing needs to be done to make an undertaking profitable.

The foremost thing that one needs to decide before undertaking any business activity is the structure of the corporate. A business organization can be a sole proprietorship, partnership or a family undertaking depending on the extent of rights and liabilities that one wants to design. Sole proprietorship is perhaps one of the simplest legal structures. It a one man company. In a partnership, the company is jointly owned by several partners. When a sole proprietor seeks the capital investment from another partner, without any further interest of the latter in the business, it becomes a limited partnership.

The second step is formulation of business plan, though this may not be required in case of small companies. A business plan chalks out the entire framework of the activity one proposes to undertake. It not only brings clarity and goal orientation but also acts as a positive influence on banks to provide finance.

Finance is the lifeline of any business, be it a profit oriented organization or a social service undertaking. Depending upon the size of the business, the magnitude of finance required may vary. While a small sole proprietorship may raise resources easily from the owner itself, a large corporation may require external help. A business may approach banks, investors or finance companies for the money. While banks usually have tough rules, a finance company helps to come up with an easy bargain.

After the corporation is finally on its wheels, what becomes important is effective management. An important thing that is to be monitored is the direction in which the business proceeds. The business has to move in the direction and manner as was planned. Secondly, the relation of the management with its employees is very important. Unless the employees are motivated to do their jobs, they cannot give their best to the business. Proper encouragement can also work wonders. At the same time, the negative behavior of the employees needs to be discouraged. The organizations need to strive for a healthy office environment in order to attain its goals successfully.

Accounting is a tricky area for all the organizations. Every business needs to adhere with sound accounting purposes to ensure healthy economic growth. Accounting is required to calculate the tax, avail the tax benefits, determine liabilities, and most importantly to calculate the profits and worth of the business undertaking. Adverse accounting practices can attract various penalties and can also lead to closure of the business. Fraud is commonplace with business and accounting, and needs to be prevented.

Automotive Business Choices

The automotive business is alive and well in our country, not only due to the fact that there are more cars than people although that is a good start. We keep producing them at a rate of about 17 million per year. America is said to be in love with their cars, this is in fact hard to deny with just a little observation of the average person. Since people love their cars you might consider an auto appearance business. They call it auto detailing. You have heard the term, making people’s cars shine. But there is more to it than that. It can be an excellent business.

Let’s say that money is not a problem and that you already own a freestanding building, or want to get a fixed site facility detailing shop and you want to really attack the market and start with a bang. Then what? Well you can go with the market leaders with a proven system. You may wish to buy a franchise from Detail Plus or Ziebart. They both have websites, which are easy to remember;

Each has an array of options which range from a 4 bay to a 12 bay Super Center, with co-brands, add-on services, etc. These are two of the industry powerhouses, have everything you can think of and then some, and they are good at it.

Detail Plus run by Bud Abraham, who is heavily involved in the carwash industry with over 30 years experience. Bud runs seminars and writes articles and manufactures equipment. Detail Plus is based out of Portland, OR. Detail Plus will either sell you a franchise or equipment. They will help you carve out a market niche and customize your business and have an incredible and deadly track record with regards to industry knowledge and market share. Their team at Detail Plus has well over 100 years experience and spans almost three generations in the industry. Their franchisees and customers are usually extremely successful due to the efficient nature of their equipment and excellent training programs.

Ziebart can easily claim the oldest and most well established detailing and aftermarket rust proofing franchise on the Planet with nearly 500 units in 45 countries. They were originally established in 1954 and bought out Tidy Car in 1986, which was established in the 1940’s. This makes for 6 decades of service in the auto industry, so take notice. This World-Wide company has a definite and well-established market niche. Thomas Wolfe, Chairman and CEO, has signed deals with Speedy Auto Glass (windshield repair and replacement) as well as the established Rhino Linings Franchise System (spray in bed liners). These co-brands have created a bonanza for current franchises of their system. Most franchisees are claimed easily gross well over half a million a year.