Advantages and Disadvantages of Starting a Business as a Sole Proprietor

Starting a business has several dynamics that not only limit the performance of the firm but also its competitiveness. Understandably, there exist different types of ventures that an entrepreneur can start as a sole proprietor including consultancy services (Joyce et al. 1475). Although these investments require dedication of more time and constant management of the operation, they can be performed by a single person

Advantages of Starting with Team

 Although starting a business with a team may have different disadvantages in the short run, it has positive impacts on both the business and its promoters. Understandably, term help in increasing the flexibility and diversity of the enterprise which in turn helps in reducing the number of challenges that might be experienced in the organization (De Mel 202). Additionally, teams help in improving the decision-making process of the entity which has a direct impact on the overall productivity of the entity. For a consultancy business, starting the venture with a term may help in increasing network on the institution since each member will have their area of expertise that will help in getting more referrals.

Importance of the Cash Statement

The cash statement plays an important role in a business and should be well maintained by entrepreneurs. Importantly, the document helps in providing the overall performance of the institution by illustrating the rate of income and revenue of the business (Davis et al. 103). Additionally, business owners can use it in comparing their performance to those of their competitors. Seemingly, it helps in providing the true and fair value of the entity thus reducing any chances of manipulation. Moreover, the report is globally accepted as a store of value and can thus help the organization to get funding from money lending organizations.

Works Cited

Davis, Ann Boyd. “Statement of cash flows: History, practice, and the classroom.” Advances in Accounting Education: Teaching and Curriculum Innovations. Emerald Group Publishing Limited, 2015. 101-113.

De Mel, Suresh, David McKenzie, and Christopher Woodruff. ”Business training and female enterprise start-up, growth, and dynamics: Experimental evidence from Sri Lanka.” Journal of Development Economics 106 (2014): 199-210.

Joyce, Alexandre, and Raymond L. Paquin. ”The triple layered business model canvas: A tool to design more sustainable business models.” Journal of Cleaner Production 135 (2016): 1474-1486.