DB post 1
Looking at all the options that Shania has. Sole proprietorship is the most suitable for her. With this type of business, she will have total control of every part of the business(Kubasek, 2020). Again it is a small business which has less requirements to start as compared to the other Options. A joint venture would have been a good choice if her husband was interested in being actively engaged in the daily running of the business. If I were to say something about her husband, I think I would be right to say that he is one of people who like to support their wives and make sure that they are independent. That is a wonderful act, and many husbands should follow his example.
Upon conducting a corporate name search in the state of Colorado, I found that the name has been widely used for many years in different parts of the state of Colorado. The name is available but according to the Secretary of State’s website, there may be similar and possibly confusing names in the database. In my honest opinion, the name does not fit well for a coffee place. After conducting a check on the United States Patent and Trademark Office’s website, the name trademark was cancelled on May 01, 2020. There are many businesses some of which are very successful, and they have their owners’ name. I think Shania should not shy away from using her Name. The name I suggest is “Shania’s, Coffee & Donuts”. The main reason for my suggestion is that the new business will be selling coffee and other items. Why not name it with a name that relates to the product. I am against the other name since it is very general. If I am driving or walking buy and I see the name “Gathering Place”, unless I walk in, it would be hard for me to know that the place is about from outside.
The issue I am seeing with Shania hiring her sister is her brother in law’s opposition. Marriages break due to many factors, and this could be one of them. If Shania is smart, she should not let her sister join the business venture because a problem seems to be brewing between her and her husband. What she needs Shania needs to remind her sister about this wonderful verse: “Wives, submit yourselves unto your own husbands, as it is fit in the Lord.” (Colossians 3:18 ) Another problem I see is Shania being viewed as nepotistic by her neighbor, Carlos. Furthermore, family members do always get along at workplaces. Family members do not always get along, and family squabbles can potentially fi nd their way into the workplace.(Swift, 2018). This is something that Shania should be very careful about. The way her brother-in-law is reacting should be a red flag. She should let the two decide on how they want to continue living as husband and wife.
As for Carlos, he is looking for a source of extra income which tells me that he already has a job. My issue with Carlos being involved on the new business is commitment. The question I have is, how well will he balance his time between his current job and the Chania’s business? I think having him in the business especially when it is at its infancy is not a good idea. The only exception is if he has experience in running this type of business. Even though Carlos is a non-believer, the book I the book of Matthew is very clear about his situation, and it says, “No man can serve two masters: for either he will hate the one and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.” (Matthew 6:24)
Finding a suitable employee is always a challenge for employers. It is even a bigger challenge for Shania because, her business is new, and I believe this is her first time hiring someone to work for her. She will need to look for someone who has some experience in running a coffee shop and that will get her up to speed especially if she has never been in a business. My advice for Shania is for her to look for someone with experience. She doesn’t need to know the person individually. Having the person’s record and references. Other resources such as LinkedIn will be very useful for Shania when she is looking for prospective candidates to helps her run her new business.
References:
King James Bible. (2017). King James Bible Online. https://www.kingjamesbibleonline.org/ (Original work published 1769)
Kubasek, N. K., Browne, M. N., Herron, D. J., Dhooge, L. J., & Barkacs, L. L. (2018). Dynamic business law: The essentials.
Swift Yasgur, B. (2018). The pros and cons of hiring family members as practice employees. Medical Economics, 95(10), 30.
DB post 2
After reading the facts that were presented in the discussion board prompt, I understood that Shania has a solid business plan, but she needs direction on a few specific attributes. Shania is expressing interest in opening a coffeehouse near Denver, Colorado. She is interested in hiring on and working with a few individuals that may or may not have her best interest at heart. There are a few ways to make sure that the individuals you are working with and the manner in which you are conducting business are correct. First, does your plan satisfy the Great Commission? Our chief goal in life is to glorify God in all that we do and to love our neighbors as ourselves (English Standard Version Bible, 2001). If the purpose of this business venture is not to do one or both of those things, then maybe Shania should reconsider her plans. However, she seems to be following those requirements by centering her coffeehouse around Christian principles. Shania has mentioned that she wants to decide which business entity she should open in order to run her business.
The first one she considered is a sole proprietorship. Using this option would not be the best choice in my opinion. While the Sole proprietorship does offer the easiest and least expensive way to start a business (Kippenhan, 2021), this option has a high level of personal liability. It is true that the sole proprietorship does offer the most control for Shania, but the level of liability should be the reason that she does not pick this type of entity.
Another option is a partnership of some sort. Under Shania’s plan, she could choose this option and select one of the individuals in the prompt to be her partner. This would not be a terrible idea, but due to the level of involvement compared to the character of the individuals, I would not suggest this option either. Even though partnerships have a lower level of difficulty when forming, they do have the disadvantage of being able to be dissolved by one individual (Kippenhan, 2021). If there were other individuals that wished to be a part of her business and shared her level of energy and zeal, then I would revisit the partnership options.
Corporations are a fruitful way to create and operate a business. They have an opportunity for expansion through investors at a higher level due to stock issuances (Kippenhan, 2021), and there is a low amount of personal liability involved with corporations. The main reason why I would suggest not using a corporation is the type of business Shania wants to open. Corporations deal with a much high level of government involvement and regulations. Since the business she wants to open is a coffee shop, she would have more freedom if she was not regulated by the Government (Kippenhan, 2021). Also, another negative is the cost of starting a corporation is much higher than the other entity types already mentioned.
My choice for Shania would be to start an LLC. An LLC is a Limited Liability Company. LLCs offer one of the lowest liability levels to the owner. An LLC picks out some of the best elements of partnerships and corporations. In turn, it gives you key advantages, the same limited liability as corporations have. This limited liability pertains to those involving business debts” (Staff, 2021).
When naming her company, Shania should do more research and planning. While I was using the business database search, I found 44 entries that were the same or very similar (2021). The name she is trying to use is very common and that would not be beneficial for her to use a name that has a business that is closely named to what she wants. I believe there are many other names she could be used in order to closely align with her message and her desire for the operational success of her new business.
Shania has a lot to consider when deciding who to have involved with her business startup. She can make or break her business by picking the wrong people. This closely follows the Bible and the call to surround ourselves with people who are walking with us on the path towards salvation and continuing to glorify God (English Standard Version Bible, 2001.)
Galatians 15:33 says “Do not be deceived: “Bad company ruins good morals” (English Standard Version Bible, 2001, Galatians 15:33). Another verse that supports this idea is Proverbs 27:27, “Iron sharpens iron, and one man sharpens another” (English Standard Version Bible, 2001, Proverbs 27:27). It would not be supportive for her business for her to pick her sister. While her sister is very supportive and has a good heart towards supporting her sister, the fact that Kelsey’s husband does not want his wife’s involvement would ultimately cause drama for Shania that she does not need. In my opinion, Shania should choose her husband as the person to include in her business. Probably one of the best things that she can take from her Husband’s stance is that he supports her, but he also does not want to be involved. This is evidence of a supportive and loving relationship. Personally, I know that there are people in everyone’s life that may want to see someone succeed for selfish reasons. It would be a shame for Shania to plan and execute a business venture on the premise of someone supporting her for the wrong reasons. That is the basis behind my support for her choosing her husband.
Shania has a lot of things to consider overall while she continues planning and executing her business plan. I think that as long as she continues to act with the intention of benefiting the community by spreading love and God’s word, she cannot fail. The specifics that she chooses will not matter as long as she prays and follows God’s will for her life. If I could offer Shania just one piece of advice, it would not be about business plans or individuals, but it would be to pray and wait on the Lord for his guidance and then follow that without any hesitation or doubt. She will be blessed if she approaches this venture with that mindset.
References
Business Search Results. Colorado Secretary of state. (2021, August 15). https://www.sos.state.co.us/biz/BusinessEntityCriteriaExt.do.
English Standard Version Bible. (2001). ESV Online. https://esv.literalword.com/
Kippenhan, Nancy J. (2021). Biblical Worldview Edition of Dynamic Business Law:
The Essentials with Connect 2nd Edition. Mcgraw Hill
Staff, C. B. J. E. (2021, January 26). What is an LLC and How does it work exactly? California Business Journal. https://calbizjournal.com/what-is-an-llc-and-how-does-it-work-exactly/.
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