Since the scale of operations in a wholesale business is normally large, many people believe that partnering with someone would make it convenient for them to establish such a business set up. This perception is triggered by certain ideas like two can stick better together by sharing burden of work, responsibilities and investment. However, I don’t agree with this because there are many factors ignored by this pretty painting of working together in a partnership business.
If you agree with me about owning, operating, managing and controlling the entire business alone, this post will give you more reasons to do so. A business without partnership is free from legal complexities. According to some independent researches, a great number of businesses that enjoy long term viability in the global market are those opened in sole proprietorship form.
Becoming a sole owner is the best way to set up and run a business only if you are eligible enough to carry out the operations alone. Read on to find out if running a wholesale business as a sole owner could be a wise idea for you.
Flexibility! – Unlike partnership & company form of business which requires lots of formalities, starting a sole proprietorship business depends only on the capacity and ability of the owner. In a partnership business, no partner can withdraw himself from the business or transfer his share without the consent of other partners. Whereas, sole proprietorship provides flexibility to the owner to wind up the business any time and start any other venture.
Independence! – For those who like to be their own bosses, opening a sole proprietorship business makes perfect sense. It provides complete independence and freedom to the owner to run, manage, operate and decide for the business operations without interference from any other person. There is no check on his approach and he can take any decision he wants regarding business management, business operations, marketing, and outsourcing wholesale products to suppliers.
Secrecy! – When secret of your business are leaked to your competitors, it is equivalent to its death. These business secrets can also include your future plans and strategies. In partnership wholesale business, there are greater chances that your business ideas or secrets would be leaked to your competitors before you can actually implement them. Becoming a sole owner of a wholesale business saves you from such fears.
No Disputes! – Partners pulling off a wholesale business normally enjoy higher mutual confidence during the start of a business. This confidence is shaken as soon as a dispute occurs and will ultimately collapse. Moreover, disputes often delay the important business decisions which should be taken on time. On the other hand, sole owner makes quick decisions without facing any disputes which lead the business to exploit opportunities to add value to the wholesale supplies on right time.
No Frauds! – Since sole owner knows he is responsible for all the rights and wrongs of business and all profits belong to him, he works honestly and to the best of his efforts. Moreover, though employees can make frauds in sole proprietorship yet these frauds cannot be as big as those made by partners. Since a sole owner settles everything about the business himself, there are very limited chances of fraud.
No legal formality! – Unlike partnership and company form of business, there is no need to draft articles, memorandum of association, prospects and partnership deeds. Moreover, sole owner is not required to register his business but if he wants to enjoy several perks, he is free to do so. The only thing imposed by law is the unlimited liability of such business which means incase of loss, personal assets of the owner will be used to clear his business liabilities.