The most appropriate business structure for adoption in Shania’s idea of starting a Christian coffeehouse would be limited partnership (LP). In this business form, Shania should be the general partner with unlimited liability since this business is her brainchild. With the support of her husband Marvin, she will definitely be able to discharge her roles as the principal partner of the business entity. There are several benefits connected to this structure of business, which can help Shania and her potential partners to grow their new venture near Denver successfully.
Collaborating with one or more people will provide their business access to a broader range of expertise. There are chances of getting knowledgeable partners who can bring skills and experience that Shania could be lacking. Shania, being staunch Christian and a sociable person, might be good at interpersonal skills and corporate relations, when it comes to technical issues, the business may need someone who is conversant with this field. Therefore, partnership brings unique skills, experience, and acumen that can improve the level of efficiency of the coffeehouse. Besides, a partnership is easier to form, register, manage and run since it encompasses fewer technicalities and regulations as compared than companies do. This form of business is flexible regarding management, provided all partners can agree. Regarding this, it is imperative that Shania chooses the people she knows well, and they have a history of excellent corporation and interpersonal relations skills. The drunkards, careless, irresponsible, dishonest, and violent people should be avoided in this business arrangement.
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The coffeehouse business can be successful if enough resources are pulled up for to start it. Therefore, sufficient capital is required to purchase the necessary equipment and products, as well as running all the initial operations of the business. Thus, the bigger the number of partners there are, the bigger number of financial resources available to be invested in the business, giving the coffeehouse potential to offer quality services and to grow. Eventually, there is a high potential for more profit that will be shared among partners proportionally. However, Shania must also take caution while entering into partnership by avoiding individual who may put the business at risks of incurring losses. The rest of the people share blunders committed by one or more partners of the business, thus placing a burden on Shania’s finances and assets.
It is advisable that Shania builds an independent business as opposed to a franchise. Independent business gives one the freedom to choose the way to operate it and in a manner that will please the customers and potential consumers of the serves that are offered. The business will have a bigger scope of business partners’ ideas, customization, and innovations that will improve the operation of the business. In addition, developing an independent business minimizes the clash of interests that would have resulted from operating under a franchise. These clashes are often attributed to the fact that franchises usually take a slice of the revenue, as their operation primarily relies on profit. For instance, the owner of the franchise may dictate that the franchise operator must undertake tasks that generate revenue that is unlikely to be profitable primarily because the expenses outweigh the profit margin. In the end, this initiative helps the franchise brand, but hinders the profitability for the operators of the franchise.
Entering Shania’s business into such agreements with a franchise may force the business to undertake less profitable initiative because of the contractual arrangements. An independent company will give Shania and her colleagues the opportunity to build a company with its unique brand, and avoid the possible mistakes that could have been committed in the past. In addition, since Shania’s coffeehouse primarily is targeting Christians from the Mormon and the Kingdom Hall of Jehovah Witness, it must be tailored to high standards of morality and purity. The business must be just with fair prices for the services and products offered. Besides, it must be free from any form scandalous activities. All these requirements can only be achieved if the company is set up as an independent entity.
Shania’s favorite name of the coffeehouse, “The Gatherine Place” is an appropriate and unique for the business. It can be easily associated with Catherine, which a Christian name. Therefore, the “The Gatherine Place” will appeal to most of her target customers. The business name plays an essential role in the growth and prosperity of any business activities. She can go ahead and preserve the name since it is unique and it is less likely to be existing in the State of Colorado database of registered businesses or companies.
One of the most appropriate people that Shania should consider to partner in her business is Kelsey since she has expressed sincere interests, giving a sound reason of why she wants to be involved in the operation of the coffeehouse. Besides, she is also a Christian, though newly saved; thus they share many interests and aspirations. However, Shania has a task of convincing her sister’s husband to allow Kelsey engage in meaningful activities, and not just being a stay-at-home mother. She should explain to him that the two children at twelve and fifteen are growing up well, and they need additional support, which can also be generated by his wife provided he allows her to do some business. On the other hand, Shania should be careful while handling Carlos concerning this business. He seems to have a different attitude towards Christianity as he refers to it “Christian thing.” Such a perception may have a detrimental impact on the operation of the business. Besides, he is not a Christian; hence, it may be difficult for him to understand their values, principles, and beliefs, which may interfere with the smooth operation of the business.
