Getting adequate funding for your business like small business loans can help you develop better strategies and make great decisions that could give your business an edge to stand out in the market.
This challenge can be serious if you are operating a new business that aims at growing its customer base in a highly competitive environment.
Let us understand the different types of business that exist in the Australian market:
Various types of businesses in the market
A sole proprietorship business is an entity created, owned and run by a single person.
While running this type of business, you are in direct control of all aspects of the business and legally responsible for the business finances including loans, debts, loss, and legal issues.
There is no legal difference between you (the owner) and the business entity. You can easily start a sole proprietorship business since you are not required to fulfill any legal procedures or fill out any forms to declare your business.
Furthermore, you are not limited to work alone in this type of business – you can hire other people to help you run your business.
A partnership is a type of business owned and managed by more than two people, not exceeding 20 members.
This type of business structure distributes its business responsibilities including legal and financial to each of your members.
You will be required to register your partnership business with your government and establish its official business name after which you will be required to acquire a business license.
Partnership business allows you to deliberate on the best policies and practices to implement since you and your partners are able to combine your skills and know-how.
Furthermore, partnership businesses feature low start-up costs, thus easy to establish. Also, you are bound to benefit from a greater borrowing capacity.
Image source: Pexels.com
A corporation is a business that enables you to become a shareholder or investor with stock in the business.
This type of business is characterized by limited liabilities and protects your assets from being claimed by creditors.
The life of a corporation is usually unlimited since different people pool resources to become shareholders. Commonly, professionals are hired to run or manage the business.
Nevertheless, you may have to share the risks with all the parties of interest and suffer double taxation – corporate tax and individual tax. The decisions are usually made based on a majority rule.
Limited Liability Company
A Limited Liability Company combines both partnership and corporation. You can form this type of company by yourself through a written agreement.
Your agreement should contain company details and provisions including how interest will be allocated to others, management issues and the distribution of profits and losses.
You will be required to draft an article of association when forming an LLC and subsequently back it up with pertinent certificates that conform to the industry.
The advantage of a Limited Liability Company is that you are more likely to acquire external financing.
A non-profit organization, also known as a business entity, is formed by individuals sharing a common interest without the aim of acquiring profit.
You can form this type of business to pursue a social cause and benefit your society.
A non-profit organization runs under a “non-distribution constant” whereby you use the surplus revenue to meet your mission, goals, and objectives instead of distributing it as dividends to shareholders.
You need to apply for tax exemption or have a charitable status if you wish to avoid taxation.
Studying competition can help you learn your business and make appropriate adjustments to help you grow and improve your business and stand out in the market.
When you study your business with regard to the competition, you are likely to broaden your knowledge regarding your target audience, which could help you refine your business strategy.
For instance, you can study your competitors to determine who exactly they are, how they position themselves, their pricing, and their strengths and weaknesses.
Finding Out What Works For Your Business
Finding what works for your business can help you save a lot of time and resources allocated for the marketing of your business.
Typically, what works for us tends to offer us an edge to stand out from our competitors because we won’t have to spend a lot of time and resources proving how better we are compared to our competitors.
You can find out what works for your business by tracking your sales record and collecting customer feedback.
Also Read: 10 things to keep in mind before starting any new business.
Image Source: Pexels.com
How Hubbe Can help Your Business to Stand Out In The Market
Starting your preferred type of business can be a challenging task, especially when it comes to raising the required capital.
Sole proprietorship, for example, requires you to raise all the capital it needs to run by yourself. Sometimes, you may run out of cash to fund your sole proprietorship business.
You can seek financial help from an alternative lender to help you keep your business running smoothly. Hubbe Australia offers you a wide variety of funding options to help you start and maintain your preferred type of business.
You can also use the funds to make better business decisions that could help you stand out in the market and consequently stay ahead of your competitors.
Why waste the chance to give your business an edge to stand out in the market when you can access everything you need at the right time?