1. Getting Started

2. Important start-up decisions
When starting up a business an entrepreneur must make decisions on:
Ownership
Production
Finance

3. Ownership options
There are three basic ownership structures to choose from:
Sole trader
Partnership
Private limited company

4. Sole trader
A sole trader is a person who owns and runs his/her own business.
Owner makes all the decisions – complete control
Owner keeps all the profits
Easy to set up – little regulations
Unlimited liability – sole trader responsible for all the debts. May lose all personal assets if business fails.
A lot of pressure and work for one person.

5. Partnership
A partnership is when between 2 and 20 people form a business.
Risks and responsibilities are shared.
More capital available to run the business.
Different skills and expertise of partners.
Easy and inexpensive to form.
Profits and losses are shared.
Unlimited liability.

6. Private limited company
A PLC is a business set up by between 1 and 99 people called shareholders.
Shareholders have limited liability – they can only lose what they invested.
Shareholders buy shares which forms share capital. Profits are divided among shareholders through dividends.
A limited company is a legal entity separate from its owners.
A board of directors is elected by shareholders to run the company.
Complicated and expensive to set up.
Accounts must be audited by an independent third party.