Business Idea

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Business Idea
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99,000 Dollars
160 locations across the country and a proven
track record of successfully training more than
500,000 amateur and professional athletes,
including over 2500 Olympic competitors. Were
the industry leader, the nations largest
performance sports training operator, and we are
actively looking for qualified individuals to
help expand our presence.

• Site Selection Design Consultation
• In-Depth Training Support
• On-Site Consultation
• Marketing Assistance
• Online Support

• When an athlete walks through our doors, they
  walk into our work, where maximizing athletic
  potential is our anthem.

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Why Not become a Sole Trader ?

• Advantages
• Freedom Flexibility
• Personal satisfaction
• Secrecy
• Personal Control
• Enjoyment of all profits
• Absence of legal formalities when establishing
  business
• Financial advantages in terms of low taxes,
  longer period to pay taxes and lower accountancy
  fees.
• Disadvantages
• Limited sources of finance
• Restricted growth
• Full personal responsibility for the decisions
  and due to Unlimited Liability the debts of the
  business

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Partnership ?

• Advantages
• Partnerships are relatively easy to establish
  however time should be invested in developing the
  partnership agreement.
• With more than one owner, the ability to raise
  funds - Debt vs. Equity may be increased.
• The profits from the business flow directly
  through to the partners' personal tax returns.
• Prospective employees may be attracted to the
  business if given the incentive to become a
  partner.
• The business usually will benefit from partners
  who have complementary skills.
• Disadvantages
• Business Partners are jointly and individually
  liable for the actions of the other partners.
• Profits must be shared with others.
• Since decisions are shared, disagreements can
  occur.
• Some employee benefits are not deductible from
  business income on tax returns.
• The partnership may have a limited life it may
  end upon the withdrawal or death of a partner.

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Why a Franchise ?

• Advantages
• Star Power Many well-known franchises have
  national brand-name recognition. Buying a
  franchise can be like buying a business with
  built-in customers.
• Profits - A franchise business can be
  immensely profitable. (Think of Macdonalds and
  Tim Hortons, for instance.)
• Buying Power - Your franchise will benefit from
  the collective buying power of the parent company
  as the franchisor can afford to buy in bulk and
  pass the savings along to franchisees. Inventory
  and supplies will cost less than if you were
  running an independent company.
• Disadvantages
• Cost - Buying into well-known franchises is very
  expensive. If this is your choice, you will have
  to have extremely deep pockets or the ability to
  arrange the necessary financing.
• Ongoing Support? Not all franchisors offer the
  same degree of assistance in starting a business
  and operating it successfully. Some are just
  startup operations and everything after startup
  is up to you. Others make promises of ongoing
  training and support that they dont follow up
  on.

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PLC ?

• Advantages
• Essentially those of the Ltd, plus
• Increased potential for raising finance by share
  issues or through other financial investors
• Due to their size they can gain from Economies of
  Scale. Many Plcs are Multinationals, with
  production facilities in more than one country
• The Plc Can use its power / size to dominate a
  market, by for example purchasing competitors

• Disadvantages
• Most expensive set up cost of all forms of
  business organisation considered
• Due to public transfer of shares, more open to
  hostile takeover bids
• Tighter levels of regulation
• Public ownership by minority shareholders does
  not provide them as owners with any real control
  of the business
• Large Plcs may suffer from diseconomies of Scale

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LTD ?

• Advantages
• Limited Liability
• More capital can be raised as no limit on number
  of shareholders
• Control of company can not be lost to outsiders
  shares only sold if all shareholders agree
• The business will continue even if one of the
  owners dies, Shares being transferred to another
  owner

• Disadvantages
• Profits have to be shared out amongst a
  potentially larger number of people
• Detailed Legal procedures must be followed to set
  up the business consuming time and money
• Financial information can be inspected by any
  member of the public once filed with the
  Registrar, including competitors

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