In sales, you have a great deal of autonomy in terms of how you plan your day, as you meet with a variety of customers. You have unlimited earning potential, depending on how hard you are willing to work. You can work independently, given that the majority of your day is devoted to traveling from one customer to the next. There is no 'boss' constantly looking over your shoulder: you
The first feature is money, because that is something the majority of salespeople want and need. They generally would not be working if there was no financial incentive for them to do so, although some people do work even if they are wealthy or retired simply because they want something to fill their days (Schein, 1985). Few people in the workforce today are there simply because they want to be and not because they have to be, so a company's first line of compensation should always be a fair wage. Whether that is salary, commission, or a combination of both, the idea that a person can make a living wage at his or her job is of utmost importance.
3) Increasing the sales force could have a positive effect if the sales representative is assigned to the non Dallas Fort Worth area since account penetration there is only 16% and focusing on the “Do it Yourselfers” because of the amount of sales they accumulate in that area. The amount of sales revenue needed to cover the cost of the one added sales representative of $60,000 base salary
Independent sales representatives work to put together profitable sales deals for manufacturers who often don’t have the time or desire to develop relationships for the sale of their products. Sales and manufacturing are often two different mindsets. Manufacturers often rely on independent sales representatives for this part of the process. Paying the sales commission is part of doing business until the manufacturer decides to lower his cost by selling directly to the customer. Once the relationship is built, the money that was paying the sales commission can be saved or invested elsewhere. “A bad economy only increases the cost cutting measures by manufacturers. However, when cost cutting measures involve breaching a prior agreement
There are three types of business entities: sole proprietorship, partnerships, and corporations. Sole proprietorships are businesses owned by an individual person. They are easy to form, but are not taxed. Instead the individual business owner is taxed on any monies acquired on behalf of the business (Kubasek, 2012. Partnerships are businesses that are owned by more than one individual owners. The big thing about partnerships is that each partner is personally responsible for the acts of the other partners in the business . (Kubasek, 2012 Corporations are businesses owned by multiple people to include shareholders (Kubasek, 2012). They can sue and be sued and are subject to a host of rules and regulations set forth by the government.
There are many other forms of business entities available to entrepreneurs, the main type are sole proprietorship, general partnership, limited partnership, limited liability company (LLC), and corporations.
In setting up a new business the first step is setting up the best business structure for the need of the business. There are many different things that need to be looked at in order to determine the correct entity that will be used. Will there be partners is a big question in this determination, another questions which is the most correct for the business legally. Another consideration needs to be the legal liability as well as the tax liabilities in considering the best choice for the entity of the business.
The last business option that will be discussed is the Corporation. A Corporation is “a fictitious legal entity that is created according to statutory requirements” (Cheeseman 478). The biggest advantage of a corporation is the protection of personal assets. Shareholders, directors and officers are typically not liable for the company’s debts and obligations. This is limited to the amount of money they have invested into the corporation. Since the corporation is separate from the owners, transfer of ownership is an easy task. Also corporations are generally taxed at a lower rate than individuals in the United States. A corporation is not as simple to form or maintain as other business formations. Articles of incorporation must be filed with the secretary of state and an organizational meeting must be held to elect a board of directors. A corporation also requires, at the least, an annual report so that creditors that do business with the corporation can determine the creditworthiness of the corporation. Also the corporation is taxed on its profits
I wanted to reach out to let you know that I am here for you and the team if you need me to assist with compliance concerns or questions. I know I have been out of commission for a few weeks on an unscheduled leave of absence, but I am back now and ready to plunge back into NERC related subject matter! I look forward to hearing from you if the need arises!
First of all the company must be register in Companies House and there is a fee need to be paid. Also there is some extra cost related running that kind of business like: financial information must be publicly available and copy of that statement must be send to Companies House. Partnership agreement should be drawn up setting out how it will run and LLP how profits will be shared.
The next step is to select the type of business entity you want: sole proprietorship; partnership; corporation; or a limited liability corporation (LLC).
This alternative does not need traders to intervene in sales representatives’ jobs but the company has to make sure that both departments are able to identify prospective customers and make existing customers still trust in the company’s performance.
One of the most important decisions when starting a company is to determine the type of legal entity best suited for your business. Each country has different legal business entities under its regulatory framework. According to Dewhurst (2014), the most common types of business structures within the United States are: proprietorship, partnership, corporation, limited-liability company, and cooperative. Additionally, there are other types of legal entities derived from the association of different corporations, such as joint ventures.
Commission can be withdrawn each week from the salesperson’s guarantee, and salespeople get paid for their traveling expenses as well. They also get a $70 bonus if they are willing work on Saturday and Sunday night. Letting salespeople withdraw their commissions is an absolutely drawback because salespeople feel discouraged when they see their commission account reach zero balance. They feel all the effort and work has not paid off. Paying additional $70 just for those salespeople work on Saturday and Sunday is ineffective; if the sales staff is responsible for their own schedule they should receive close to the same amount on a Saturday or Sunday as any other day.