Category Archives: Business Structures

Business 101….Evaluating Yourself

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COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
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Not as easy as it sounds…so here’s…

Contact us today for your consultation.
Contact us today for your consultation.

 

I speak a lot against “subbing” work that isn’t necessary to sub in the Property Preservation Industry. As one whom oversees “employees” and advocates for labor at the same time I did me some shopping around…I have to admit with no “PPI Industry Standards” it suddenly dawned on me that there probably isn’t any such thing as “ Best Practices” when it comes to the PPI. Well I found that there really isn’t, however, as in many other areas of business there are “Best Business Practices”.

In today’s challenging business environment a successful company needs to be highly focused throughout the organization on maximizing profits. Employees should be empowered to do their jobs, but they must also be held accountable for the results. A management system needs to be in place to drive sales and profits! This one-page self-evaluation checklist will determine how your company compares to the industry’s “Best Business Practices” that are required for success at the highest level.

Here are a few that have helped us…

 

Industry “Best Business Practices” Self-Evaluation

Check only what is fully implemented at your company. Please be 100% candid….Sometimes it is hard to be honest when it comes to ourselves as it is not easy to say you’re wrong or made a mistake. But in order for you to truly understand your business the sooner you’ll be able to make the adjustments that are necessary for maximizing your potential an accomplishing your goals.

  • Every employee knows and understands the top priorities of the company and their job activities are focused accordingly.
  • Every employee understands how their role fits with the priorities of the company.
  • Employees are empowered to do their jobs and understand the need to link empowerment with accountability.
  • The strengths and weaknesses of the company are known and being acted upon accordingly.
  • All employees are accountable by specific, measurable and time framed individual objectives contributing to the success of the company.
  • Priorities, objectives and accomplishments are periodically reviewed and, as appropriate, adjustments are implemented.
  • The employee appraisal process and salary administration are linked to what makes the company succeed.
  • All employees know what salary increases are based upon.
  • Incentive compensation plans are linked to what makes the company succeed.
  • A formal annual planning process is in place involving management and staff.
  • Managers and staff embrace a management system that enhances the company culture, promotes teamwork and makes everyone more productive and effective.
  • A current and easy-to-update Strategic Business Plan is in place that inherently drives sales and profits.
  • Sales and profits are maximized in all phases of the economy taking into consideration industry “Best Business Practices”.
  • The company has happy customers, happy employees and happy owners.

If only one to seven criteria for success are checked, you need to make significant changes to maximize profits. We would be happy to help you make the changes. If eight to 11 are checked, you may need to “fine tune” your management system. If you checked 12 to 14, congratulations on a great management system that drives profitability…

As always I will stress again for those involved or if you’re considering becoming involved in the PPI section of the Real Estate Industry, if you’re going to hold business licenses, carry insurance then conduct business with those that have fee structures that support your business model.

During a recent conversation with a client she asked;

How do you get around these companies that are second or third in the line of subbing out the work orders?…

My response…We just tell them their pricing is not conducive to our business model…

I just love how quiet the 20-something’s with the cheat sheet get when I say that…The point I make here is if you are assuming all the risk, and make no mistake about it, when you accept a work order in the PPI YOU ACCEPT ALL THE RISK., why not start acting as a responsible business owner that accepts risk…and learn how to properly bill for your services…

Have a question??? Look to the right and send us a voicemail…have a great day!!

 

Until Next Time

Happy Gardening

Written By: Aaron Aveiro

Photograph Aaron Aveiro

Business 101 is a course offered through Aladay LLC. We also have NAARPI International Courses available.

Business 101…Structure and Starting a Successful Business….

Organics Admin
Follow Me!!

Organics Admin

COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
Organics Admin
Follow Me!!

If you are setting up a new enterprise there are a number of factors to consider and choices to make. One of the most important decisions is the structure of the business.

Contact us today for your consultation.
Contact us today for your consultation.

Choosing the right business structure depends on many things such as:

  • The kind of business you are planning to set up.
  • The number of people you will have working with you.
  • Whether you would be working with a partner or as a sole businessman.

However, choosing a structure doesn’t bind a business to carry on with the same structure throughout its existence. As the business grows or expands, the business owner can change the structure as needed. Depending on the type of structure, this can be easy or very difficult.

Here are the 4 types of business structures you can choose, as well as the pros and cons of each type.

Sole Proprietor

A Sole Proprietor is one of the most simple and inexpensive forms of business structures, where the business owner works independently. In this kind of business structure, traders can work under their own name or choose a suitable name for their business.

Partnership

This business structure is a partnership between two or more people to run the business together as partners.

Company

This type of business structure is a legal entity with shareholders investing and holding partial ownership, while the company is run by directors.

Trust

This business structure is set up for the benefit of others. Often family businesses go for this structure so other family members are made beneficiaries without any direct involvement with the business.

A business owner needs to be very careful when choosing a business structure as each business structures may affect the business in different ways. Such as:

  • The tax you’re entitled to pay.
  • Protection of your assets.
  • Business costs.
  • Your value in the market.

Pros and Cons of a Sole Proprietor Business Structure

Pros

  • Easy and inexpensive to set up.
  • Minimal legal paperwork and reporting.
  • Easy to change the business structure at a later stage.
  • Complete control over the business and earns income and profit.
  • A Sole Proprietor pays income tax at personal tax rates.
  • The income earned by the business is treated as Sole Trader’s own money.

Cons

  • Business assets and personal assets are both at risk if the business fails.
  • No support and the business may fail easily if you are unable to perform alone.
  • Fewer options for financing.

Pros and Cons of Partnership Business Structure

Pros

  • Partners work together and share profit and loss as a team.
  • Simple setup, paperwork, and reporting.
  • Partners pay individual taxes based on their own partnership earning and profit.
  • Multiple partners can raise capital.
  • More collaboration and support for business.
  • Easy to cease or depart from the business if needed.
  • Partners are not treated as employees and are entitled to their share of profit.

Cons

  • Each partner is equally responsible for any loss incurred by a partner or employee.
  • Potential disconnects in terms of profit, power, control and business plan.
  • Each partner is liable for business debts and loans.

Pros and Cons of Company Business Structure

Pros

  • Generally positive acceptance in the market.
  • Owners and shareholders are not directly responsible or liable for any loss, the company is.
  • Better chance of raising funds in case of financial requisite.
  • Ownership can be transferred effortlessly.
  • Profits can be reinvested in the company.

Cons

  • Takes significant amount of time and capital to set up.
  • Shareholders can’t be held responsible for any loss of the company.
  • High-maintenance record keeping, paperwork, and legal formalities.
  • Increased risk of legal issues.

Pros and Cons of Trust Business Structure

Pros

  • Easier to distribute income.
  • Acts more privately than a company structure.
  • Assets are protected and secure.

Cons

  • Set up and maintentance is expensive and time consuming.
  • Many legal liabilities to consider.
  • Difficult to make changes to the company once it’s set up.
  • Tax implications for reinvesting profits into the company.

Consider the pros and cons of all the types of business structures before you make a final decision. It is also advised to consult an expert to get more information on which structure would best suit your business needs.

The following is from my Business Law Book from about 20 some-odd years ago. However, the structures have not changed even though many of the rules have….Should we be able to assist with your business plans needs please contact us today…
We can also assist if you need a Registered Agent for you Business Licensing needs in Nevada.
Written/copied from Business Law 101 and Aaron Aveiro
Photograph: Aaron Aveiro