A Discussion on Starting and Naming of a Business


Business form

            Limited Liability Company (LLC) is the best business for Shania to pursue. This form of business allows for as many members as possible as the business grows with time. Members have limited liability; they are not liable to the debts of the business and are independent of each other. Assets of the members cannot be used to cater for business losses and debts. Members are active in the business and this ensures that they achieve the goals set. Possible tax advantage- Tax laws gives a business with opportunity to state how it shall be taxed, that is, as sole proprietorship ,partnership or as a corporation. Suitable for families that want to retain control of the family owned business (Mondal, 2009). This is made possible by ensuring that ownership rights cannot be easily transferred without the knowledge and consent of the other family members. In the event that members want to convert their business to any form of business, they usually do so without having to pay any taxes.

            Profits realized are only tax once unlike corporations which face double taxation thus reducing the profits disposable to business owners. This business form is very flexible as compared to other forms of business and doesn’t require lots of paperwork during the running of the business as less works well. It does not limit foreigners, alien members, from owning the company. This means that investors from any part of the world can be enjoined in the business with ease. It allows various ownership classes. This form of business has an opportunity for continued existence in case of death of one of the member. The agreement signed allows the members to vote and keep the business going. However, for this election to take place certain number of members must be in agreement.

Franchise Coffeehouse

            Shania should become a franchise. Franchise business increases her chances for success as opposed to other forms of business, the set up period get reduced because the mother company is already in business, she will receive periodical support as well as training at the start of the business and this will improve her knowledge on the business (Ehrmann, Cliquet, Hendrikse, & Windsperger, 2012). Since the franchise is already established and would like to reach out to as many customers as possible, Shania will be helped in locating the appropriate location for her shop. The biggest advantage being benefitting from the power of a brand which already established and has a name in the market, reduced operation costs which is made possible by economies of scale.

            Franchise business deals with many groups.  Also, the kind of business model employed by the franchise business is well tested and this in turn increases the chances of success for her business. When it comes to advertising, Shania will greatly benefit from aggressive advertising done by the franchising company because its coverage goes beyond the local surrounding and reaches to regional and national areas, active websites and call centers which improve customer service and handling and this in turn boosts their confidence and offers a sense of belonging (Ehrmann, Cliquet, Hendrikse, & Windsperger, 2012). The available pool of fellow business colleagues (franchisees) offer moral support and the necessary advice required to successfully run a business. This pool is readily available through the regular conferences and associations formed by franchisees. Lastly, she can access funding from colleagues or the franchisor through the set mechanisms.

Name search

            The name is available and has been used by other businesses. Also it is available as a trademark. However, some of   these businesses have ceased to exist and others have overtime changed the name (Seifipour & Mokhtarian, 2015). The businesses which have it as a trademark no longer exists because the given period has expired long time ago. The ones that are still in both good standing and effective position are engaged in totally different business as that of Shania and further the names do not exactly resemble. The choice of name is good in that she hasn’t chosen her name and that mean if need to sell the business arises, she will do so with ease. The name stands out and can easily attract customers that her coffee shop is the place to be. The name is strong and easily understood and not offensive in any way to anyone.

            Furthermore, the name chosen is not a pun and its meaning clear with no ambiguity that can cause confusion. The name has three words and cannot be forgotten easily- actually it is a phrase. To add on the name is simple not that trendy and appeals to customers of all ages and races. Shania has the advantage that the name is not a trademark to any business and therefore she can comfortably use it without any legal implications (Seifipour & Mokhtarian, 2015). Having a trademark will help her clearly distinguish her business from others and will enable her to expand her business across the geographical boarders so to maximize on the available market. This will in turn improve her customer base as well as revenue.

Choice of business partner

            Shania should take in her neighbor Carlos as her partner in the business. He seems to have passion in business and is ready with a target market which he perceives can be their strong customer base. Additionally, he doesn’t have other responsibilities to attend to and he would focus his energies and concentration in the success of the business. Shania should not avoid Carlos on the basis of religion for she can be the one to enable him appreciate Christianity and turn from the current way of living. John 3:17 says that Jesus came to save the world and not to condemn it and through him the world shall be saved. Also Matthew 4:19 tells us that Jesus commands us to be fishers of men- be the ambassadors of Christ in spreading the gospel to those who have not received the word. As for her sister, Kelsey, she should not choose her simply because of blood relations but her worthiness to the business. Success of the coffee business should be of priority. The conditions of her sister are not favorable to the well-being of the business. First, she has a family that is not supportive. Her husband wants her to always be around for the kids .Secondly, her main reason to join the business is getting time away from home- not business minded.  

            Promotion of workers is often more than not done according to merit. If Shania promotes the employee based on race she may face legal suit from other employees and other bodies. Racial promotions lead to ignoring of other qualified employees who are not part of the race. It will not be ethical for Shania to conduct promotions on other grounds that is not merit. She will have violated the code of conduct that she is expected to guard. Biblically, Ephesians 5:6-9 says that employees should be promoted according to hard work and honesty.