Creating, Financing, and Marketing a Business

Creating, Financing, and Marketing a Business

Introduction

This paper enlightens the concept of business creation, the financing for the business as well as the marketing process employed in a business. The paper identifies the pros and cons of the partnership business setup. It further, discusses the various funding options that are available for small businesses. It also attempts to discuss as to how managerial accounting can help managers with product costing, incremental analysis, and budgeting to ensure efficient business operations. The paper then moves on to discuss the basic components of the marketing process of “G-zone” as an example. Furthermore, it discusses the roles of social responsibility and technology in the marketing function.

Discussion

Pros and Cons of the Partnership as a form of Ownership

Partnership is a set of ownership formed with the consent of two or more partners to do business. However, the partners cannot exceed twenty, after which it has to be a company. One of the major advantages of partnership as a form of business is that it is easy to set up and also gathers sufficient capital for business commencement. Its legal requirements are far less than those of companies and the agreements terms and conditions are much flexible. Apart from that, the risk division is directly linked with the profit distribution, which means the partner taking the most risk gets more profit (Brewer, 2009).

The major drawback of the partnership formation of a business is unlimited liability, which means that the partners will have to pay for the losses from outside their partnership capital in case the partnership experiences disolution. Another disadvantage of partnership is that a wrong decision on the part of a single partner can be detrimental for the business and hence, can affect the overall return of all the partners (Brewer, 2009).

Funding Options for Small Businesses

There are three major types of funding options available to small businesses, which include the debt financing, equity financing and grants. Debt financing refers to the availability of credit or loans to the small businesses. A business that has a good credit reputation in the market will not find it hard to get the required amount of credit. However, this cost of borrowing money has to be compared with the cost of equity financing for cost benefit analysis. Equity financing, on the other hand, is basically the capital injection by the owners themselves. Whereas grants is the ...