Question

I need write a short letter about 1000 words, it about advice to a client whom has approached you, about which structure would be best suited to the client to setting up a small coffee shop. Can you please give me some advice?

Answer 1

For coffee shop business sole proprietorship is the best structure because of following reasons:

1. The sole proprietorship firm is owned by single individual only which is useful for small businesses like coffee shop because this business will provide limited profit which cannot be sufficient for more than one entrepreneurs.

2. Sole proprietorship organisation is easy to form and there is no legal formalities are involved in setting up of such type of organisation. So small business like coffee shop can be easily established such interprises. In addition to it sole proprietor can close the business whenever he desired without any legal formalities, which makes his small business very feasible.

3. Direct incentive is a motivational factor for sole proprietorship like a coffee shop. It means that there is a direct relation between the efforts and rewards so if proprietor puts extra efforts, profit increases and proprietor get extra income.

4. In sole proprietorship all the decisions are taken by the proprietor himself so he is able to make quick decisions with immediate actions. It brings flexibility in operation. It is one of the most important part of his small business like coffee shop.

5. Coffee shop is a small business so all the profit earned by the sole proprietor must belongs only to the proprietor himself which is possible in sole proprietorship only.

6. Coffee shop business is a small business which is directly related to personal touch with the consumer. In sole proprietorship generally all the work is carried out by the proprietor himself so he can maintain direct contact with the customers and employees and can make changes in the products according to demand and expectations of the customers.

7. Coffee shop is small business in which complete freedom of action is required to create some new ideas in preparation and supplySole proprietorship provides complete authority to take decisions and run the business in his own way.

8. The sole proprietorship firm is the most suitable form of business for small scale business enterprises like coffee shop. It is a suitable interprises for business requiring small capital outlay, personal attention etc. It is a suitable structure for which offers the opportunity of self employment can be easily generated.

9. Establishment of small business like coffee shop is the matter of personal satisfaction involved in working for oneself. The success in business not only contributes to self confidence but also develop in the individual, a sense of accomplishment.

On the basis of above fact, we can say that, for establishment or setting up of coffee shop business, sole proprietorship is the best structure.

Thanks &all the best.....