The Three Main Types of Business That You Need To Know
Despite the present economic and health risks we are experiencing due to the COVID-19 pandemic, many business-inclined people still want to start a business. We all know that a successful company cannot be achieved overnight. Not all businessmen were like having the Midas touch that they succeeded in any business they started. And not all who want to put up a business have a substantial investment to allocate for office space, equipment, employees’ salaries, and other operational expenses. Through outsourcing customer service, it’s no longer impossible to start a business with no worries and huge expenses.
Though not the core of your business, outsourcing customer support is an essential part of running a business. Without the support of consumers, you don’t need to do business. Whatever business you have, you should give the customers your utmost care for the longevity of your company.
Outsourcing customer service is proven to be a great business strategy for customer retention and acquisition. It is a process that started in the 90s and turned out to be effective and helpful to start and operate a business, especially for start-ups and small-time marketers. A company hires an outsourcing firm that will provide an outsourced customer support team composed of efficient, hardworking, and skilled customer service agents. The outsourcing customer support team will assist all kinds of customer concerns and issues.
Many start-ups and small-scale entrepreneurs are enjoying the benefits outsourcing offers. And you reading this is probably thinking of entering the business world.
However, before you plan to put up a business, it is important to learn the three main types of business.
SOLE PROPRIETORSHIP. It is considered to be the simplest, most uncomplicated, and common type of business ownership. Since it is owned and run by one person, there is no legal or financial distinction between business and business owners. The company is managed by someone for his own benefit. The business’ operation is entirely dependent on the owner’s decisions.
This kind of business is perfect for starting-up entrepreneurs. Even big companies now started to manage business being sole proprietorships.
PARTNERSHIP. A partnership (or sometimes called a general partnership) is a type of business by two or more people. Therefore, business, financial, and legal responsibilities are fairly divided. The misunderstandings and disputes can be minimized if the partners have executed a well-planned partnership agreement where everyone’s rights, duties, and responsibilities are specified.
A partnership can be built with little formality. However, since more than one individual is involved, an agreement should be created to avoid problems and disputes in the future. A partnership agreement stipulates the terms of the partnership, such as rules for profit or loss sharing, ownership percentage, dissolution terms, management rights, and many other things.
Below are necessary details that should include in the agreement:
- Amount of shared investment and other contributions from each partner
- Division of partnership income or loss
- Responsibilities of each partner
- Conditions under which a partner can sell an interest in the company
- Conditions for dissolving the partnership
- Conditions for settling disputes
CORPORATION, sometimes called a regular or C-corporation is a legal entity that is completely separate from the people (shareholders) who own the company. It is the most complex business structure. It is an independent and multiple shareholders, appropriate for established businesses with employees.
Apart from what had said above, a corporation is:
- Can enter into binding contracts
- Can buy and sell property
- Can sue and be sued
- Can hold responsibility for its actions
- Can be taxed
Generally, corporations are more appropriate for larger established companies with multiple employees or when other factors apply.
Whatever type of business you have, it is essential to provide your loyal customers with a great outsourcing customer service experience. When you outsource your customer support, your sole proprietorship now will become a corporation someday because customers will stay with you despite so many competitors around you.
