BUSI 561 Discussion: Analysis of Starting and Naming a Business

This discussion board post provides advice to Shania Jackson, a Christian entrepreneur, on starting a coffeehouse. The post analyzes various business structures, recommending a Limited Liability Company (LLC) for its liability protection and tax advantages. It also discusses the pros and cons of franchising versus starting an independent business, suggesting further research into franchise options. The post includes a name search and provides recommendations on employee selection, emphasizing the importance of skills and performance over religious or racial considerations. The post also includes the roles and salaries for key employees, such as a general manager, baristas, and a pastry chef, and provides justifications for the recommendations. The post also provides references to support the arguments.

Running Head: Naming a Business
Naming and Starting a Business
Name of the Student:
Name of the University:
Author’s Note

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Step 1
There happens to be many legal forms to structure a new business, such as partnerships, S
Corporations and regular corporations. Despite the fact that Sole Proprietorship is the simplest
and most famous form of business startup, it may fail to provide entrepreneurs with the legal and
tax benefits unlike LLC, as this type of business ownership combines several features of
corporation and partnership structures. The main advantage is that the personal liability is
protected for the owner of the company (Abdulsaleh & Worthington, 2013). For instance, a
customer could sue the LLC, but not the owners personally. It protects their personal assets from
any lawsuit which may be a result of the business. In the similar manner, if a patron sues the
coffeehouse, claiming that the food has made him ill or he slipped and fell on her flooring and
many number of happenings, an LLC can protect their personal assets from any harm or risk.
In a sole proprietorship a person is liable for the debits that is to be carried by the
business. The creditor can take the responsibility of sole proprietor’s home, car and other
personal property to satisfy the debts. LLC is a hybrid of partnership and corporate that forms
and allows the liability protection for a corporate with tax advantage of the partnership (Robb &
Robinson, 2014). The personal information is available when a person owns sole proprietorship
and is also available to make the decision since the business is not a separate legal entity.
Shaina’s business credit will be taken more into consideration and can be shown as an
alternative. The coffeehouse is an LLC which will have its own credit rating. With an advantage
of having its own credit score the coffeehouse can be expanded in near future with new
equipment, location or any number of business with adequate amount of finance.

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As in comparison to other ownership forms, an LLC also requires less paperwork
(Beukes, 2013). She won’t need to prepare year-end minutes or go through regular shareholder
meetings. Therefore, I think Shania should go for Limited Liability Company (LLC).
Step 2
On a personal note the recommend her company to become a franchise. Joining a coffee
shop franchise is definitely a good option as it means lightly higher antecedent costs and less
authority, a sound franchise offers amazing benefits for example initial and ongoing backing,
assistance in marketing, and brand recognition.
Reasons in brief:
1. Recognition of Brand:
In most cases, buyers of franchise have aconvenience over the independent business
owners when it brand recognition comes into role. Unless the independent business
sellers has enthusiastically cultivated the brand, it’s unlikely that the business will relish
the brand recognition that appears with standard franchise business leisure.
2. Marketing Cooperation: Franchise owners generally have complete and detailed
marketing plans, which would be tough for a minute outfit to put together in reference to
time, money, and expenses.

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Step 3
While doing research on the State of Colorado’s database it showed that the name Shania
wants to use is in fact available. “The Gathering Place” can also be trademarked in Colorado
if she went with this name. The search demonstrates that there are comparative names of her
chosen name on the database. It is smarter to pick an exceptional name for the business to
accomplish the coveted objectives. I wouldn’t propose her to utilize “The Gathering Place”
as the business name. The comparative name of the other association will build some sort of
confusion and it can be hurtful to the business over the long haul. It will be better to move
with another simple for the business (BlairE & Marcum, 2015).
Step 4
Honestly, when it comes down to selecting employees for one’s business, he/she would
want the cream of the crop. Of course being that she wants to run a Christian business finding
someone that has similar values and beliefs would definitely be a plus. However, it is smarter
to leave the arrangement of choosing employees in view of the religious view or race of
someone alone (Huang & Sarigöllü, 2014). The determination of employees in view of some
unique targets will be separated and it will fall under law requirement. It will be better for
Shania to pursue employees who genuinely want to work for the business. She should find
employees who can perform and achieve the objectives of the assigned jobs and task.

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The shop may require a number of employees relying upon its size and the matter of its
menu (Braun et al., 2013). The coffee shop requires one manager, but if Shania would also
like to trade food a pastry chef or chefs may also be need so that he/she can cook a full menu.
General Manager of the Coffeehouse:
This is the first and most important person that Shania will need to ponder about while
recruiting her employees in the coffeehouse. Sometimes the cases are such that the business
owner itself act as his/her own general manager of the coffeehouse.
Regular Salary would be: $35,000 annually.
Role of the General Manager:
1) Appointing and arranging the employees working under him.
2) Taking care of path of inventory.
People suitable for this post:
1) A person who is able to conduct customer’s accusations.
2) Available for numerous shifts, as they happen to be indispensable part of everyday
business in coffee house.
Baristas of the Coffeehouse:
Baristas are the people in charge of making coffee drinks for consumers, many baristas are
needed.
Regular Salary of a Barista would be: Marginal wage (excluding tips)
Role of the baristas:

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1) To make coffee drinks.
2) Contriving cash registers.
3) Washing the equipment as well as the utensils.
People suitable for this post are as follows:
1) Experience is not needed (but trained baristas will be definitely be able to make drinks
more instantly)
2) Amiable while communicating with the customers present in the coffeehouse.
Pastry Chef of Coffeehouse:
Regular Salary: $35000 annually
Role of the Pastry Chefs:
1) To bake pastries adored by the customers so that they can give high rating to the
coffeehouse.
2) Aligning food in proper display cases.
People suitable for this job are:
1) Practiceis strongly favored.
2) Chefs of the coffeehouse are required to arrive at work very prior to ensure there are quite
a number of crisp and delicious pastries are ready when customers arrive.
Each coffee shop has its own demand. Few endure fast service and a collection of exotic
flavors, while others constitute a loosen up and appealing atmosphere. Coffee shops have
to be one of the frequently busiest during the early morning between 8 o’ clock to 10 o’

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clock. Shania has to assure that she has enough team workers to deal with the morning
shift (Coad et al., 2014).
On even out, about 15% of coffee shop go to their loved café twice or more than that per
week. Finding people who can leave a forward-looking impression on customers and
make cordial relationships with her coffeehouse “regulars visiting people” will compose
her coffeehouse to be a long term business accomplishment.
Grounds under which Shania can reject a particular party re as follows:
 Sloppy application
 Not responsive
 Not punctual
 Unsuitable personality
 Unaffordable salary expectations on the part of the employees.


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Reference
Abdulsaleh, A. M., & Worthington, A. C. (2013). Small and medium-sized enterprises financing:
A review of literature. International Journal of Business and Management, 8(14), 36.
Beukes, F. R. D. (2013). Integrating imago relationship therapy (irt) into a biblical theological
approach to marriage counselling.
Blair, E. S., & Marcum, T. M. (2015). Heed our advice: Exploring how professionals guide small
business owners in start‐up entity choice. Journal of Small Business Management, 53(1),
249-265.
Braun, R., Eidenmüller, H., Engert, A., &Hornuf, L. (2013). D oes Charter Competition Foster
Entrepreneurship? A Difference‐in‐Difference Approach to European Company Law
Reforms. JCMS: Journal of Common Market Studies, 51(3), 399-415.
Coad, A., Frankish, J. S., Nightingale, P., & Roberts, R. G. (2014). Business experience and
start-up size: Buying more lottery tickets next time around?. Small Business
Economics, 43(3), 529-547.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.
Robb, A. M., & Robinson, D. T. (2014). The capital structure decisions of new firms. The
Review of Financial Studies, 27(1), 153-179.