SOLE PROPRIETORSHIP is the oldest type and the easiest form of business to run and can be started by anyone who wants own business simply needs to get the necessary licenses from the government. After he or she obtain these licenses, he/she can begin operating their business needing only a license and a bank account. You are your own boss, and making the rules. You also keep what you make and pay taxes at a lower rate than a corporation. However, these types of businesses also have the highest failure rate. The big advantage to this is that it is easy to set up and it does not take a lot of money to get a business going. Another advantage is that the income of your business is not separate from your personal income, therefore, you are only taxed once. The disadvantages to this are that you have a lot of competition, advertising is a lot harder.
More and more people are beginning to open their minds to new business ventures. It seems like it is becoming the popular move. By opening a business there could be huge profit to be made, depending on the market. On the other hand, there are risks and losses that may occur as well. It is said that there are two reasons why people start a business. The first reason is that they have inspiration for what they believe would be a great idea and the second is from desperation. People have a need to make money and there are no jobs out there, which they found, that suits them or their needs. There are various different ways to start a business. Not all entrepreneurs begin their business by the thought of an idea. There are many other ways to go about starting a business. Buying a franchise, buying an existing company, the inventions of a product are all other ways to begin a business. People often start a business have personal experience in their chosen field of products or service offered. Although this is true, it is essential not to limit the perspectives of the kind of business to open. The areas outside of your interests may just be the right opportunity for you, which is why it is important to explore other areas.