Business Law Case Analysis

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Mr. Sparkles Laundry-mat: Laundry and dry cleaning services

The following areas are important to the success of our small business such as properly trained and motivated employees, clean and appropriate looking business, quality products and pricing, choice of location as well as proper promotion and customer service. Although there are also many pitfalls to operating our own business and there are many reasons for why we could fail. Some pitfalls may include a lack of skill required to manage a business in both a professional and personal level. An insufficient business plan, no financing and improper records of sales may also lead to failure. If the location you choose is not busy or suitable for our business it can affect sales and therefore force us to close due to low volume of customers. Employees are also a huge part of every business and can seriously determine the quality of customer service and sales. If we run into problems the best thing to do is to ask for help from professionals who understand the business and can lead us into the right direction so we may have a proper understanding of what we should do.

There are many professionals and business management experts as well as other professionals in the entrepreneurship fields and law fields that we will want to establish relationships with and create an appropriate network. An accountant may be contacted to arrange a proper bookkeeping arrangement for our business. Improper records are a prime contributor to the malfunction of small businesses. We must make sure that we comprehend the bookkeeping system we are using and that we obtain and revise reports of sales and inventory on a regular basis. A lawyer’s service is very important in planning the beginning of our business as well as throughout the lifetime of the business. A lawyer may help us in defining legal arrangements, contracts, agreements and our rights and obligations towards society and the government. A small business and its related costs make it extremely important that a good functioning relationship be customary with a financial advisor. Financial advisors and bankers are an excellent source of financial information and for obtaining loans or credit. We plan on establishing an account with a financial firm who can help us with the monetary aspects of our small business. There are also a lot of different insurance choices available for our business. An insurance broker can advise us about the different types and amounts of coverage plans that will be essential for our business.  Our broker will also help us find the best insurance rates possible in order for us to minimize costs effectively. Because we are just starting our small business, the insurance broker is going to need a detailed look into our business to determine the necessary insurance coverage which may be expensive. We have many talents in different areas as businessmen although we believe that consultants should be hired to aid us in areas that we feel we lack. Expert help can improve our management skills, promotion, customer skills and financial skills. Overall, we believe that a consultant will help our business become more successful.  

Because our business is a sole proprietorship it is the simplest and is minimally regulated with small legal operational costs. We own and operate the business ourselves and are responsible for obtaining our own credit and loans in order to finance the business. We have ultimate control over our business and all profits come to us, we determine how to allocate costs, control inventory and handle our clientele. We also get taxed as personal income and the major con is that we are personally liable for our businesses costs and sales; if we cannot make payments due to lack of customer sales, we can be reported to credit agencies and our reputation for obtaining loans will be gone. If we were a partnership on the other hand it would be easier to obtain financing and borrow money. We would have to still be personally responsible for debts and taxes and personal assets may be taken from us if we do not pay creditors. We could also create a limited partnership to avoid any possible risks in the business. A written agreement for any partnership is essential to avoid and legality issues that may arise at any point in time.

There are many different types of insurance available to our small business such as basic fire insurance which will protect us in case of any inflammatory appliances we have operating and we are reimbursed for our loses in a fire. Extended coverage insurance can help us cover any loses that may not be included in basic insurance packages. Vandalism coverage may be important if we are located in a low profile neighborhood and threat levels are very high. Liability insurance will cover us incase somewhere in our business hurts themselves, whether its and employee or a customer slipping and breaking there leg as an example, our insurance will deal with the issue instead of us being sued by the plaintiff. Theft insurance will cover our small business in case of someone breaking into our business and stealing valuables. Product liability coverage is useful for protection against issues with the products we sell in case they have defects and harm our customers we won’t be liable for what happens.

We have considered the name for our business quite seriously because we are going to have to live with it for a long time. We chose the name that will give our customers a general idea of the nature of our business and will project a certain image and style our business wishes to portray. We can either make them classy, funny, trendy and a lot of other styles. We decided to pick one that will grow with us and that won’t provide any setbacks in the future. We also decided that a small logo would be suitable for customers to recognize our business, we carefully developed a graphic symbol that portrays our business in the manner we wanted. After we decided on both a name and a logo we had to check to see if they were already in use. In order to do so, we look it up through government offices and listings of business names. If the logo and small business is very popular you may also obtain a patent/trademark for your ideas so no one can steal them legally. Once everything is set, we file our fictitious business name within the municipality and publish it locally so people can find out who we are.

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Our choice of location is essential to our success; therefore much consideration went into our decision as to where to place the business. We put into consideration the type of business we are and the people we plan on catering to. We look like to be in a convenient residential location and also downtown where there will be business people taking in their clothing to be washed. There are many factors that apply to our business needs such as the amount of space, equipment, zoning requirement, style, parking, leasing, fees, the environment around our business, traffic and safety.

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