A turnkey business is an excellent way to start your own business or take over someone else’s business. It comes with all of the necessary equipment, tools, and supplies you need to run it successfully.
It also includes everything needed to promote the business (marketing materials, logos, etc.). You get all this gear free!
Does that make sense? I think so!
Turnkey businesses are designed for total beginners who have little-no experience running their own business. They have done most of the work for you by providing you with what you need to succeed.
There is still some learning involved, but you will be set up very well before you know it. And if you ever want to expand, you can just add more products and services and keep moving forward.
Business owners often times feel overwhelmed because they don’t have anything to put in their shop. With a turnkey business, you already have something! You can either take over another person’s business or create your own.
A business model that allows for someone else to own and run a part of the business under their own name is a franchise. This is very common in large corporations, as well as small businesses looking to get some of the attention away from being owned by a larger company.
Franchises are not uncommon these days. There are several reasons why they are so popular now.
First, most people have a job and rely on paying their bills each month to survive. As such, there is a limited amount of money individuals have to spend on things like shopping sprees or monthly restaurant visits. For this reason, it is helpful to offer services to others at a lower cost than what you would pay as an owner!
A second reason is competition. Almost every field out there has already been colonized – franchises are just taking it one step further and creating their own brand within the same industry.
Third, since the owners’ names are no longer on the business, they do not feel as invested in its success. This sometimes leads to poor performance or even quitting. Franchises provide much needed security to those running them and help promote employee loyalty.
A license is permission to use something. Most times, this means you are allowed to use someone’s copyrighted material or software under their terms. For example, if I wanted to write an article using your written material as source, then I would need your permission in writing to do so!
The term “license” comes from the word licentia, which is Latin for ‘permission.’ So, when you give people permission to use what you have made, you are granting them a license. This can be done face-to-face, via phone, text message, email, or even through a third party platform like GitHub where people can view the code and copy it for personal use.
With technology being one of the biggest assets we own these days, licenses become more and more important.
An S corporation is a business that has limited liability for shareholders, but not creditors. This means that even if the company goes bankrupt, its liabilities are protected from being pursued by individual investors or lenders.
In other words, your personal credit rating isn’t checked when you invest in an S corp. You can also be paid less than 100% ownership due to limited shareholder equity, but this depends on how successful the business is.
This arrangement is very common among small businesses because it offers protection to owners who don’t want to take full responsibility for the company. It also helps keep start up costs down since there is no need for expensive office space, furniture, etc.
An S corporation is a business that has shareholders, or owners, but no formal officers. Each shareholder gets one vote per share they own.
The shareholders can elect directors to run the company, so each director must be elected by at least two votes. The board of directors then hires other executives to run the business.
Since there are no officers, the shareholders also pick someone to serve as president, vice presidents, and secretaries. This person’s job is to represent the company in conversations with others and keep track of all its documents.
These individuals are not paid salaries like employees would be, instead their expenses such as rent, meals, and legal fees are covered by the company.
Taxes are also split between the corporations and individual payers depending on what country the business is located in.
An LLC is a business structure that allows for more flexibility in terms of how you run it. This includes the use of separate accounting, income tax forms, and benefits such as limiting your personal liability or even offering shareholders equity loans.
When creating an LLC, you will typically have to choose between having full private ownership or not. If you want to be able to offer investors shares in your company then you must offer them at least partial owner ship which means they can ask questions about how the company is being run and go through regular audits.
This is also important because it gives outsiders access to company documents, accounts, and records which are usually not available under private individual ownership.
However, with an LLC you do not need to actively manage the business side of things yourself. This removes the stress sometimes associated with running your own business and makes it much easier to focus on other things like marketing and finding new clients.
The easiest type to set up is called an S-Corp, which stands for Simple Corporation. Just like the name implies, this entity form requires very little paperwork. You can typically get your business license within a day or two of applying!
An S-Corporation cannot have any shareholders (other than you as the owner) and it does not require quarterly shareholder meetings. This means that there’s no need to hold formal board elections every three months.
Because there are no other owners, employees, or external stakeholders, the responsibilities in terms of paying bills and running the company fall onto you as the CEO. And since you’re the only person involved, individual liability is limited to what you personally pay for things.
This may be ideal if you're just starting out because you don’t want to deal with outside investors or creditors at this stage. Or maybe you’d rather keep personal and professional life separate so that your home and family stay safe even when the rest of the world thinks you've failed.
A business partnership comes down to two things: individuals who agree to work together towards a common goal, and an agreement of what each party will do to help reach that goal.
A business partnership can be between one individual and another, or it can be between two businesses that are merging into one. It can be formal (such as owning equal shares in the company) or informal (you work for $X per hour because the other person does not pay their bills).
Whatever form your partnership takes, make sure you have informed consent before moving forward with anything. You don’t need to tell everyone everything about your plan, but you should let people know what you are planning so they can decide if they want to join you or not!
And just like any relationship, be honest and direct with those you collaborate with! Don’t expect someone to trust you if you aren’t being straight with them otherwise.
Business partners come together to achieve a shared goal – and when needed, they pull apart to focus on their own tasks until they get back together again. This way, no one has to worry about what the others are doing while they're working on their project alone.
Starting with its name, a business entity comes with an easy to use, pre-designed structure or template you can apply to form your company. This organization framework includes how many people it has in management positions (ownership), what state it is incorporated in, and sometimes even a short slogan or motto for the business.
By having this basic information at hand, you are already ahead of most other entrepreneurs!
Most corporations have several officers that work together to make sure the business functions properly. These position holders include president, vice president, treasurer, secretary, board members, etc.
Each officer gets their own job title but none of them actually does anything important by themselves. All of these positions require someone higher up the ladder to pass tasks onto you so that you can succeed as part of the team.
This way, each person knows who they can go to for help when needed while still keeping a distance between individuals so personal conflicts do not arise.