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Dear Mr P. Nut, I write with reference to your letter asking about how to set up a business in a computer repair consultancy firm.

Extracts from this document...

Introduction

Chris Pearson 100 Ratm street Fareham Hampshire Po69 13ut 15th November2003 Mr. P Nut 24 West Road Fareham Hampshire PO15 4YY Dear Mr P. Nut I write with reference to your letter asking about how to set up a business in a computer repair consultancy firm. I have researched about many types of business you could take up on, below are your options and reasons why you should or should not take on these types of business. Firstly there are partnerships; this is a business where you work in a group of 2 or 20 people to form a business. The good things are: More people can introduce money to the business, your partner may have a useful specialist skill for the business. If you are ill your partner can take over whilst you are away. Financial information doesn't have to be released to the public, it will also be easier to attract more people to the company. ...read more.

Middle

the shareholders can't fund the business all the time and you can't sell shares in public and finally dividends would have to paid to the shareholders which can drain your company's assets. Sole Traders, this is a business where you work on your own, it is a very cheap way of setting up a business meaning you don't need much money. You would be in full control, no financial information would have to be released and you would keep all the business profits. However there are bad things, unlimited liability, this is when you lose your own possession's if you cannot pay the debt, a lack of money, no one could take over if you were to go suddenly go ill. You could have to work long hours. A shortage of qualified workers and also it might be hard to go big time with the money, as there will be lots of competitors. ...read more.

Conclusion

The advantages are you would have no competition from other companies, it would be a tried a tested idea, the advertising nation or worldwide is taken care for you, you would get training and advice on running the business and there would be a reduced risk of failure. There are disadvantages though all supplies must be purchased at the price they determine, you would need a lot of money to start of with, you may be required to pay money towards the head of the company, you may not have total control of the business which you operate, you might not make enough money to cover the costs and all losses would have to be paid by the franchise. In Conclusion I feel that the option is that you should become a sole trader, it is an easy way starting your career as a Computer repair consultant, in time I recommend joining as a partnership and increasing your income. Also hopefully you will become a Public limited company so you can become a well respected person within the stock exchange. Yours Sincerely Chris Pearson ?? ?? ?? ?? ...read more.

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