Web Based Business Scenario
In regards to this woman’s decision to start up her own web based business, there are a number of financial, legal and other resources that she can refer to. Key financial resources that she can utilize include firstly, a fund that she might want to establish to assist in building up the business’ financial prospects. There are a number of mutual funds that can be established where funds can be deposited and it has a high interest rate that can propel the business forward. Financing for business related resources is also an option if she is has less liquidity and this can be sourced through a local bank where a loan can be created and interest accrued on the loan within the mutual fund can assist in paying back minimum monthly payment requirements. She also has the option of applying for a first business owner’s scheme whereby the government provides subsidies to assist the business in prospering (IRS, 2016). If the business is centered on an application that is desperately required by a certain community, then the government may be willing to subsidize some of her financing and this is crucial particularly at the start when she is searching for clients.
With respect to legal requirements, the woman can liaise with her attorney and accountant in order to establish a trust fund or business related fund. An accountant can also handle any tax related issues concerning the new business. There are a number of advantages and disadvantages associated with starting a web based business. Advantages of starting the business include being able to have the autonomy to re-shape it and make it innovative (IRS, 2016). With the required funds, it can be developed in such a way that makes it highly attractive to younger people and a service that people want to invest in, in the long term. Disadvantages focus on difficulties associated with accruing a large client based when considering competition with other small businesses.. In the 21st century, there is much competition and this is related to systems such as the web and younger generations investing in innovative and technologically based businesses and applications.
Home Based Business Scenario
For the veteran willing to start a home based business, financial and legal resources focus on substantial subsidies that can be provided to him if he chooses to base his business around something that is worthwhile. The individual is a veteran and can therefore be afforded some financial relief with respect to medical and dental costs, in which these savings can be dedicated towards the start of his business (IRS, 2016). By selecting an appropriate interest based or mutual fund, the veteran can start saving for his business and gaining interest on any income that might be received as a result of the particular business. Furthermore, by consulting with an accountant, the veteran can be provided with advice on how receive subsidies and substantial tax cuts from the government where necessary.
The advantages of building such a business are that his veteran status can allow for significant subsidies from the government, which can then further promote the business. It will also be highly flexible in nature allowing the veteran to spend more time with his family and loved ones, particularly when considering that he may have fought for his country in a number of different theaters of war (IRS, 2016). It can also provide him with the autonomy that he needs to succeed with decisions being made by himself instead of an organization such as the military. Disadvantages of starting this business focus on lack of security with respect to whether the business will be successful as well as lapses in resources and advice on how to make the business successful, given that it will be managed from home.
- IRS. (2016). Small Business and Self-Employed Tax Center. IRS, Retrieved from https://www.irs.gov/ Accessed on 23rd March, 2016.