2007-01-30 19:15:26 · 5 answers · asked by mlp_mur 1 in Business & Finance ➔ Corporations
The biggest disadvantage is that of unlimited liability. If a creditor or litigant goes after your business, it's you they're going after.
2007-01-30 19:21:23 · answer #1 · answered by Rob D 5 · 2⤊ 0⤋
I have been in bussiness for 20 plus years really i do not know of any if done correctly. You are the man if a sole proprietorship. You must be self driven and able to develope a clear understaning of the bussiness world what is expected and what is required of you on behalf of your customers. A sole proprietor is exactly that, so expect to be learning alot and learn before mistakes become a lifestyle. The disadvanges are poor employees and a lack of common reference pools of knowedge to draw upon these can be overcome by finding a number of mentor that you can take out for lunches and draw knoedge from. The lack of good employees is a problem in all aspects of bussiness today. If you find a good employ keep him.
Sole proprietorship is not for every person. Are you able to ge the jobs done with out being supervised, are you self driven, Are you logical in purpose and also can you cut thru the bull of a project. Can you develope a plan and then modify the plan steps to make the project more profitable and more productive. How is your bussiness communication skills and what are you willing to pay over the long run are all parts of being a bussiness owner.
Can you fire a person if needed. Are you willing to gain wisdom in all areas of bussiness. You will indeed have to! Can you forword project in bussiness decisions, these are all skills that take a lifetime. Are you wanting to build a bussines or just work for yourself.
If you are a go getter then get going, if you are not educated get some before going. And the contacts you develope today will be a blessing tomorrow.
When i started my bussiness i left a 45k a year job to start a 200k a year bussiness. But that took me only two years to achieve. Yeat few make those amounts. A sole propritorship should provide you with a very large return for your investment if it does not then get a job for someone else.
I work in the engineering and steel bussiness. We kick back some real dollars. But it is also limited by the state of the nation. There are only so many hours in a day. So make sure your bussiness has the ability to grow laterially and verticaly.
I hope you great progress in gaining he required wisdom to be a sole proprietor, also get ready to read and learn. Because as the man you have to get the knowedge and then apply it.
2007-01-30 21:35:16 · answer #2 · answered by Thomas A 2 · 0⤊ 0⤋
Disadvantages of sole proprietorship
1. Limited capital - the business capital depends on the wealth of the proprietor
2. Limited decision-making capability - what the owner thinks is carried immediately, no careful deliberation.
3. Limited business scope - the main business is usually focused on the expertise of the owner.
4. Limited access to financing - banks prefer to deal with corporation because in case of bankruptcy, debts are covered.
5. Personal outlook - as against the corporate view, personal beliefs and ways of the owner permeate the business.
2007-01-30 20:05:25 · answer #3 · answered by Willie Boy 5 · 0⤊ 0⤋
The main disadvantage is that you are personally responsible for any debts of your company. That includes regular bills as well as if someone sues your company and is awarded damages.
2007-01-30 19:30:25 · answer #4 · answered by Brian G 6 · 1⤊ 0⤋
*you must buy your own health insurance
*you front all monies needed to start up the bussiness
*you are 100% responsible for every aspect of your bussiness
Advantages are:
*you keep 100% of the bussiness and it's profits
*you make all decisions concerning the bussiness
*you have complete control
2007-01-30 19:30:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋