How many business models are there?
How many business models are there?
Did you know that in doing various businesses? In our country, whether it is a small business to a large business, it needs a form of business. To facilitate compliance with laws and regulations, the business model can be classified as follows.
Sole Proprietorship Sole or Single Proprietorship
Is a form of business in which there is only one owner to operate the business on their own, whether it is a grocery store, clothing store. A la carte restaurant, etc. The sole proprietor business model will not have a high initial investment. It's not difficult to do because you are the one who does everything.
strength
- are free
- Convenience in establishing and dissolving business
- No need to share income or with anyone
- There is a personal income tax payment.
weakness
- risk of failure
- Difficult to find capital for business operations
- The duration of the business depends on the ability of the business owner.
Ordinary Partnership Business
Business operations in the form of a partnership must be conducted by 2 or more people who must be able to do legal acts as required by law. There is a partnership agreement that can be verbally or in writing. Partnerships are divided into two types:
- Ordinary Partnership Ordinary Partnership is a type of partnership whose objective is to share profits and losses of businesses equally.
- Limited Partnership Limited Partnership is a partnership whose shares will be divided according to the type, namely limited liability partners and unlimited liability partners. And this type of partnership must be registered as a juristic person.
strength
- The ability of stocks affects the operations of the business.
- Compared to the company, it is established
- Able to find investments more easily than doing business as a sole proprietor
weakness
- If there is corruption, it affects the public.
- delayed decision making
- Difficult to withdraw funds
Limited company business
It is established to earn profits from business operations. There will be 7 or more shareholders, but not less than 100, and all of them have the same amount of capital in shares. Doing business as a limited company can be designed as Private limited company and public limited companies
strength
- Effective in handling matters
- Easy to transfer or sell business
- When a change occurs, it will not affect stability.
weakness
- Difficult establishment process
- The information must be disclosed to the government so it cannot be kept confidential.
- there is a duplicate tax
Cooperative
Is an operation that will have a gathering of at least 10 people, where it is important that the participants of this business must be interested same occupation and must be registered under the Cooperative Act as well There are two types of cooperatives at present:
Limited cooperatives and unlimited cooperatives
strength
- Low operating costs
- Cooperative members help each other
- Members will receive benefits thoroughly for everyone.
weakness
- The cooperative will determine the price, thus making it impossible to set the price yourself.
- Limited management costs
- Less profit than other businesses
State Enterprise
is the name for an enterprise that is a joint venture between the public and private sectors owned by a state-owned enterprise. The objective is to show transparency. no corruption including creating benefits for society Types of state enterprises include state enterprises, juristic persons and state enterprises that are not juristic persons
strength
- generate income for the development of the country for the government
- It is the welfare of the state to the people.
weakness
- You don't have to compete with anyone.
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