What Makes a Successful Business?

1568 Words Apr 17th, 2011 7 Pages
What Makes a Successful Business?
Posing a question like "what makes a successful business" can be like the parable of the four blind men describing the elephant - all the perceptions are accurate, but they aren't the full picture, and none really stands up on its own. The fact is that the elements that go into making a successful business are many, varied, and often industry/niche specific. Therefore, in order to deliver a small treatise on what it is that makes for a successful business, it is crucial to focus on the underlying structures rather than the detailed specifics. Whether or not to use a particular accounting method is not what this paper will cover, but whether or not to actually have an accounting method is within the scope
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You may have a vision or dream of how you want to business to be like, but if you’re abilities are limited, then your business will be a failure. If your abilities can’t back up your dream, the owner shouldn’t waste his time trying to establish a business that he/she can’t maintain. 3) An additional disadvantage is that it is difficult to raise capital because of limited funds. When owning your own business, you can only set aside a certain amount of money for certain things. If things aren’t going well, or if you’re in debt, money becomes very limited. You may not have money available for important things, which may cause the business to fail. 4) Another disadvantage is that the owner is subject to unlimited liability. This means that there’s no limit on the debts that the owner is liable for. The owner is responsible for any and all debts, no matter the amount. 5) Lastly, sole proprietors skills are limited. It may be difficult for an owner to run a large business if different types of skills and expertise are needed. The owner can only do so much.
With owning your own business, it is understood that there are advantages and disadvantages. What about short-term and long-range implications? Well, a short-term implication of a sole proprietorship would be if an owner wants or expects to break even in the beginning stages. He/she would know that you have to be patient when starting your own
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