Rumsey Business Formation Assignment

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Liberty University *

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Feb 20, 2024

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Business Formation: Christian Coffeehouse 1 Business Formation: Business Coffeehouse Nelson T. Rumsey School of Business, Liberty University Author Note Nelson T. Rumsey I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Nelson T. Rumsey. Email: ntrumsey@liberty.edu

Business Formation: Christian Coffeehouse 2 Business Formation: Christian Coffeehouse When it comes to business endeavors, there are a multitude of paths one can embark on. Whether it be a sole proprietorship, a partnership, forming a corporation, or operating under an LLC, there are many options to choose from. For Shania Jackson, the decision of which route to take is currently weighing heavily on her mind as she strives to open a Christian coffeehouse in Michigan. With a diverse group of supporters looking to get involved for varying reasons and backgrounds, it is imperative to assist Shania in outlining her choices and selecting the best business model to ensure the success of her organization. Shania's best option for her business venture would be to establish herself as a sole proprietor. A whopping 70% of small businesses are sole proprietorships according to the small business administration (Gough, 2020). The simplest legal structure for businesses, a sole proprietorship is run by a single individual without any incorporation. The title of sole proprietor is straightforward and identifies Shania as the sole owner of the business designed by her (Shaw, 2022). With this identification, she accepts all responsibilities and liabilities related to the business as well as being taxed individually. Although Shania's husband has invested in her business, he has no part of it, leaving Shania in total charge of management and solely responsible for keeping all the profits, except for the employee salaries, if hired. The sole proprietorship setup requires very little legal formality which makes it a great advantage of choosing this style of business. Shania, as the sole proprietor, would have complete control over the management of her business. She can hire staff, decide business hours, and expand or change the business as deemed feasible (Education, 217). Considering all these benefits as a small business owner and entrepreneur, Shania should seriously consider going for a sole proprietorship.

Business Formation: Christian Coffeehouse 3 Regarding whom Shania ought to involve in her business endeavor, I suggest that her most favorable selections would include her sister Kelsey and her neighbor Carlos. They could work in tandem or part-time with one individual laboring per day or per shift along with Shania, relying on how busy the business is and the time restrictions when preparing diverse types of coffee. Even though her spouse is against Kelsey returning to employment, that is a choice for her to determine. Kelsey could fulfill the role of the front-of-house manager, whereas Shania manages the logistics and significant aspects of the business. This position would befit her since she is already an integral part of the Christian community and has children; hence, she understands customers' patience and builds customer relationships in her town. Shania, together with her sister, could divulge the part-time role to her spouse, as well as project monthly earnings that could be helpful in raising their two children while instilling an excellent work ethic that could be beneficial in their future lives. Should Kelsey work in any capacity, she could as well labor with her sister, creating an establishment in their local community. Relatives tend to function more altruistically towards their families than towards businesses that do not belong to the family (Herrero, 2022). Concerning Carlos's involvement in the enterprise, albeit his non- Christian beliefs, I believe he could also be an asset as he recognizes the potential market within the environs. As Christians, we accept people for who they are and strive to see the best in everyone without unfairly judging or accusing anyone. Carlos being non-Christian is irrelevant to me. If he shows up to work on time and performs his duties, that is all one can expect as an owner. He stated that there is potential within the area for this coffeehouse; hence he could serve as the marketing director for the coffeehouse. Disseminating fliers and samples around town, as well as arranging tastings for prospective customers, would be critical for operational success.

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Business Formation: Christian Coffeehouse 4 These are the reasons why Shania should bring both Kelsey and Carlos on board her team since they can all work in harmony towards a common goal and strive to achieve success. Biblical Integration Proverbs 16:8, “Better is a little with righteousness than great revenues with injustice” To my understanding, the message implies Shania's predicament regarding hiring. She must decide whether to employ her sister who is married to a disapproving husband or a non- believer. My view is that by putting others' interests and family first, it would be serviceable to give them an opportunity to work and alleviate her burden, resulting in prosperity in her business. It is through Shania's kindness and doing what is best for the community that she will receive divine recognition.

Business Formation: Christian Coffeehouse 5 References Education, M. H., & Kippenhan, N. J. (2022). Biblical World View Edition of Dynamic Business Law: The Essentials . McGraw Hill Education. English Standard Version Bible. (2001). ESV Online Gough, J. (2020, Feb 25). What is the best legal structure for your Business? The Public Record . https://go.openathens.net/redirector/liberty.edu?url=https://www.proquest.com.ezproxy.li berty.edu/magazines/what.is.the.best.legal.structure.your.business/docview/2387307901/ se-2 Herrero, I., Hughes, M., Larraneta, B. (2022). Is blood thicker than water? Exploring the impact of family firms’ familial social relations with other firms within their industries. Journal of Family Business Strategy. https://sciencedirect.com/ezproxy.liberty.edu/science/article/pii/S1877858521000528 Shaw, K., Sorensen, A. (2022). Coming of Age: Watching young entrepreneurs become successful. Labor Economics. Vol. 77, August 2022. https://sciencedirect.com.ezproxy.liberty.edu/science/article/pii/S09227537121000683

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