Tuesday, September 13, 2011


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Business Proposal for

Jim Smith Parcel Couriers

Prepared by Tim Parrott Business Consultant

Purpose Jim Smith Parcel Couriers have asked

Custom Essays on Parcel

essay writing service

Parrott Business Consultants to advise them on the most appropriate Business Structure for this proposed courier service involving rapid parcel delivery using small motorcycles within the inner city area.

The following Business Structures could be considered

Partnership A legal business structure that is owned and operated by between and 0 people with the aim of making a profit.

Private company A Proprietary (private) company usually has between and 50 private shareholders.

Public company The shares for public companies are listed on the Stock Exchange and the general public may buy and sell shares in them.



Advantages Disadvantages

1.Low start-up costs 1.Personal unlimited

.Less costly to operate than liability

a company .Liabale for all debts,

.Share responsibility and workload including partners

4.Pool funds and talent debts, even before

5.No taxes on business profits, the partnership has

only on personal income begun

.Possibility of disputes

4.Difficulty in finding a suitable partner

Private company

Advantages Disadvantages

1.Shareholders have limited 1.Need better admini-

liability protection stration system

.More shareholders bring more .If you havent orga-

capital to the company nized well “sharehol

.More capital allows for expansion ders” could come

of company into conflict

4.Expansion means, more ability

to make money

Public company

Advantages Disadvantages

1.If you puy your company on 1.Greater responsib-

the Share Market very large ility on the directors

increase of capital .Increase in govern-

.Allows for expansion nationally ment interferance

or internationally .Possibility of being

.Possibility of very large profit “bought out” by

another company if

they buy a majority

of shares

4.Very complex and

expensive to orga-



Based on the above analysis, Parrott Business Consultants would recomened a Partnership to start with, for the following reasons

Low start up costs as there is money from more owners

Share the responsibility and workload with other owners

Save capital in all costs and expenses

You dont get taxed on your business profits only on personal income

Talent and experience usually comes with partners

We also recomend that if the business is successful in the first years, consider becoming a Private company in order to expand business and profits

Your sincerely

Tim Parrott, Parrott Business Consultants

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