Discuss the procedure and legal requirements for a Sole Proprietorship and a Private Company. My family got in the car without me and headed to vacation in the mountains while I was stuck working my business. I hadjust lost a few key employees, and there was no way my restaurant was going to make it through the weekend withoutme. I would like to say that this was the only time my family left without me on vacation, but it isn't. I thought of my kidsplaying without me and my wife feeling like second fiddle to my company again. What was I building? It felt a lot like aprison when I got into business for freedom.We set out to build empires, but sometimes build prisons instead. At first, they look the same. But, over time, the differenceis obvious. Don't make the mistake of locking yourself up in your business. There can be freedom with a few key principles.1. Keep the end in mind.Before we begin anything, we really should think about what we want the end to look like. Picturing what the end productwill be keeps us on track. When we go on a road trip and we don't know how to get there, we plug the address into ourphones. Without that end point, there is no way to navigate our way. It is the same thing with your company. With an endpoint, you will know what to focus on and what to cut. I wanted more freedom of time in my business and, in turn, I havenot taken some business opportunities because chains are sometimes dressed as opportunities. Start with your end inmind to navigate your business to freedom.2. Have the right people.Investing in people who will lead is crucial to freedom in business. We often train people on how to do tasks and finishprojects, but real freedom won't come that way. Staff need to know the heartbeat of the business -- why you do what youdo. When our employees understand and own the DNA, they are able to make higher level thinking decisions and impartthe culture like wildfire. Giving your team the reigns of decision making will allow you to take your control freak hands offof the day-to-day. Invest in people, and create culture-loving leaders to gain more freedom.3. Build the right systems.If systems aren't in place, your company will struggle. Often in small business, the company is successful because of youand your presence in the company. If you are going to have a life, you need to have systems in place. A whole networkof systems won't happen overnight, but with time, you can create a system for anything. What are the reports you needto check on each week? What problems come up consistently, and how can there be a framework for the future? Bytaking the time to develop structured systems, we can easily see the health of the organization and raise its efficiency.Freedom comes through systems.4. Time or money?When we remove ourselves from as much of the day-to-day functions as possible, we need to look at how much we arepulling out of the company for ourselves. Freedom of time may come at the cost of your take home pay. When I transitionedout of working in my l iness so much, I needed to take home less so that I could pay someone to work the hours I wasn'tthere. Over time, the business started to make more money and I could raise my pay, but in the beginning that wasn't thecase. If we really want freedom, we need to be willing to bring home less and pay others to do the work. If your budget at1home is too tight today-to-day reduce your take home pay, save this one for last, and clean up your home budget. Freedomcomes when we elevate our minutes over dollars.If you use these principles as a guide, you will have the freedom you desire. If you forget even one principle, the bars tothe prison cell will start to form. Freedom won't happen overnight, but with time and focus, you can run your businessinstead of it running you.

Answered: Sole Proprietorship

Sole Proprietorship

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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