BUSINESS OPERATIONS

OPERATIONS

• Forms of Ownership
• Insurance
• Ethics
• Organizational Chart

LEGAL FORMS OF OWNERSHIP

1. PROPRIETORSHIP

• Single owner
• Adv: inexpensive, easy to form, control
• Disadv: Unlimited liability, on your own
• Liability: personal assets used to repay debt

2. PARTNERSHIP

• Two or more owners
• Adv: Easy to form, low startup costs, help with control
• Disadv: Divided authority, raising capital, legally binding
• At least one partner has Unlimited Liability

3. CORPORATION

• Owned by stockholders
• Managed by Board of Directors
• Limited Liability of corporate associate
• File articles of incorporation (state)
• S-Corp, C-Corp > Hybrids, run like partnerships

4. LLC

• Limited Liability Company
• Combines best of proprietorship/corporation
• Can have stockholders, directors, officers
• Taxed like a partnership, limited liability

LEGAL MUMBO JUMBO

• Register your business name
• Get a federal/state tax id
• Get licenses, permits
• Follow code/zoning ordinances
• Enforce/Abide by laws

Insurance for small businesses:
-Property/Auto Liability-
-Worker's Compensation-

Optional
-Health Care-

ETHICS

1. ETHICAL LEADERS

• Place business interests ahead of self
• Treat all investors, employees, customers fairly
• Go above & beyond when giving back to society
• Create safe, environmentally friendly products/workplace
• Increase goodwill in the community

2. ENVISION GROWTH

• See abetter way to do things
• Find a niche
• Sustain a competitive advantage
• Understand the product's life cycle/plan

3. DELEGATE RESPONSIBLY

• Know when to give responsibilty to others
• Understand employee's strengths/weaknesses

4. SHOW PASSION/PERSISTENCE

• Empower employees with decision-making
• Recognize contributions/innovation
• Reward achievments
• Set high standards, expect excellence

ORGANIZATIONAL CHART

Untitled Slide

TWO-WAY COMMUNICAITON

• Share problems & ideas
• Foster trust & respect
• Teach negotiation skills
• Encourage delgation

ORG CHART LEVELS

• Top: Executives, long-range planning (5-10yrs)
• Middle: Projects, short-range planning (1-5yrs)
• Front: Supervisors, daily planning & implementating