Disadvantages Of A Cupcake Business

Good Essays
When starting a business or even upgrading a business from a sole proprietorship to a Corporation, understanding the differences between the types of businesses out there is something that is a priority to ensure the success of your business. There are many advantages and disadvantages of having a these different types of business for example: If I were to start a business from my home or a store front and it is owned and ran by myself solely and there are no legal distinctions between myself and my business then this would be a sole proprietorship. Furthermore, I started a business with a partner in which I own 50% and he owns the same amount, our business is a Limited Liability Corporation. And we decided on a LLC simply to split our tax …show more content…
She sells the cupcakes out of her basement which has access from her backyard. Patrons must walk down a set of stairs in her backyard, which often become icy in the winter time.”

I think having a cupcake business could be a very lucrative business but of course there are several items people should have before they decide to open a cupcake business, or even any business. 1. Having a great location is ideal for anyone starting a company. 2. Having a product or business that has been proven, that is needed or wanted. 3. Having enough capital for at least a 1 no less than 6 months.

I believe that Melanie could have the best cupcakes in the whole world but, where she is currently selling these cupcakes are not ideal. When you have a business that people can’t gain access from the front then you may face some slow revenue, and when you have people needing to walk down stairs to access your business it can lead to higher insurance premiums. I personally think that in order to have a successful cupcake business they need to have a good location in a store front, otherwise every time someone goes down those stairs you are risking your business by someone falling and getting seriously hurt. Additionally, I believe that she should have the company as a Limited Liability
…show more content…
Samantha may pay for a store front and have employees and a lot of bills which will eat into her profit and depending on the demand or need for the business/product she could make double or even triple the amount of revenue. “E-commerce statistics confirm the explosive pace at which this industry has developed as worldwide B2C e-commerce sales amounted to more than 1.2 trillion US dollars in 2013.” There are those type of people who will not shop online because they love shopping and seeing your product before you buy it but, recently there have a huge increase in the amount of revenue an E-commerce store has

Related Documents

  • Decent Essays

    Madd who has paid their full balance owing at the start of the month. Debtors such as S. Madd who pay their debts off in time can be assured that they will help Chloe’s Chocolates expand the business. Chloe can therefore trust this debtor and S. Madd can be expected to have a higher credit limit than other credit customers. However on the other hand some debtors are not as trustworthy for example G. Best, who had a remarkably high amount to owe which was $18,700. Since Chloe does not have any credit limits, G. Best has therefore purchased more chocolates which has totalled to $21,276.…

    • 1001 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Is Sugar Bad

    • 1588 Words
    • 7 Pages

    With the United States being the biggest producers of sugar in the world sugar is becoming more of a prevalent topic and controversial conversation (USDA). A person could search anything about sugar on Google and get hundreds of thousands of results varying from blog posts about sugar to scientific research papers. There is a plethora of information on sugar but still the studies show that people are well above the daily-recommended intake. It has been found that, in The United States, children have been consuming less sugar than in previous years, but children are still consuming “6-16%…

    • 1588 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    So adding more sizes will make the community happy and satisfied, especially women. Our company offending and making our stakeholders unhappy results in having a bad brand reputation. Our company not able to please our consumers and the community, not able to satisfy our stakeholders and suppliers, and making our employees uncomfortable and pressured, all result in minimizing happiness of our stakeholders. This is considered unethical in utilitarian perspective because our company keeps on minimizing happiness instead of maximizing the happiness of our stakeholders. So in order for our company to be ethical in utilitarian perspective, we should add a full range of sizes to our women’s…

    • 1108 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Cadbury Chocolate Case Study

    • 3908 Words
    • 16 Pages

    As it launched in last year in December, and it is hard to find at many retail stores even in areas of Defence and Clifton at the peak time for it sales on occasions. As now this is realized so the reason that comes front is stock were selling quickly because of high demand that is totally a supply chain issue. Cadbury bubbly is not easily available at leading retailing stores of Karachi.The things we are focusing for making this shortage fulfilled is we had already made a initial high stock along with its re-launching campaign, so that when consumer heard about its new upcoming so it will find easy on all known retail stores on all occasion as well as on each and every area small retail…

    • 3908 Words
    • 16 Pages
    Decent Essays
  • Decent Essays

    Introduction Hostile takeover proposals increased in 2015, worth over 14% of all mergers and acquisitions transactions (Wieczner, 2015). The same trend continued in 2016 as more companies continued to pursue hostile takeover plans. Hostile takeovers occur when corporate managers propose to buy the entire stock of the targeted company at a low price and restructure the company. Through restructuring, most employees lose their jobs and most assets are disposed to make the balance sheet attractive. The share price of the acquired company then rises, and the corporate raiders enjoy higher market value of their new company.…

    • 1691 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Swot Analysis Of Keiurig

    • 702 Words
    • 3 Pages

    The royalty is about $0.05 per K-Cup to support advertising and market development. One of the problems with the K-Cups and not only Keurig’s was that they were only available online, which may have affected sales at that time. Yet, they fixed the problem by making them available in some retail stores. Many competitors started to use new marketing propagandas, paying millions for advertisements. Keurig used its money to put testing booths in stores to get people to buy them.…

    • 702 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Walmart's Pros And Cons

    • 1357 Words
    • 5 Pages

    This controversy often unnecessary because, Walmart is doing so much for the average consumer. Their lowered prices are a sign that Walmart is wanting to give everyone the choice and option to affordable products. According to Scott Winship, the poor benefits from lower prices than others because a bigger share of things they brought were good sold by Walmart (Par 20). There is usually a push-back in a community when they announce a Walmart is being built. These critic 's arguments only mention the negative aspects of Walmart, but not the positive impact that the company…

    • 1357 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    The power of being able to make business decisions is held by the owner and only the owner of the business. o Profit Retention– The revenue made with a sole proprietorship is deemed income for the business owner to do what they please once the business debts and obligations are pleased. o Location– There is nothing that is actually legally required to start-up a sole proprietorship if you are looking at it and or debating it federally. However, each state can have their own specific or special requirements when filing for a license and or the permits needed. o Convenience and Burden – It is really convenient to have a sole proprietorship because the owners can have total control over their businesses in every way they need it.…

    • 1915 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Case Study Of Jacquii LLC

    • 1296 Words
    • 6 Pages

    Explain. (250 words) In my opinion, Jacqui Rosshandler should not accept the investment offer from Arthur Shorin. First of all, her business is currently plays good in the market, although the profit is not increasing as the years go by but at least she is incurring profit out of it. Yes, it is correct that her business needs to grow not only in her place but to all over the world. By doing so, she will be needing an investor or additional capital to make this possible.…

    • 1296 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Ikea Process Essay

    • 1039 Words
    • 5 Pages

    Which put Ikea in needs to continue improvements in its unique products to contest with them • Economic Factors – the economics crises that make the consumer spend less on home furniture Moving into Zara SWOT analyses STRENGTHS: • Offering fine, fashionable and quality products with low prices, based on a strong obtained plan. • A brand known internationally. • Cooperation with designers. WEAKNESSES: • They produce faulty products that have a knock on effect on the prices, hence affecting the profitability of the company. OPPORTUNITIES: • Development in business entering and existing markets - H&M Home initiative • Starting a footprint in Japan THREATS: • Losing the consumer trust, which it id due to a high market competition (Comparing Marketing Strategies, ND) In comparing between the two organisations, in terms of the customer segmentation we can conclude that there is a similarity segment, which is the customers’ wanting quality product with low prices.…

    • 1039 Words
    • 5 Pages
    Decent Essays