Recently on Sheri’s Dream Catcher’s My Business Journey Journal our topic of discussion was Established My Type in 4 Ways. Stemming off of our previous My Business Journey Journal Topics, we decided to review the 4 Types of Entrepreneurs and the 4 Ways to set up your new company. Originally, we had a mound of dirt and then we decided that we would sell our mound of dirt in 3 sizes or collections for a profit. As we continue on our business journey, we realized that we need to figure out what type of company we are setting up and what way will our business entity be protected.
Let’s Review the 4 Types of Entrepreneurs
What do you mean when you say 4 Types of entrepreneurs? If you or anyone is interested in starting and running their own business, they should determine which type of entrepreneur model they would prefer to operate as.
- Small Business
- Scalable Startup
- Large Company
- Social Entrepreneurship
What is considered a small business?
A small business could be considered as a company, restaurant, or retail store that’s launched by a founder without any intention of growing the business into a chain, franchise, or conglomerate. Additionally, small business entrepreneurs usually invest their own money to get their companies off the ground. Basically, they only make money if the business succeeds. However, they lose their own money if the business doesn’t succeed either.
What is considered a scalable startup?
A scalable startup is less common however, they tend to attract a lot of media attention. Initially, scalable startups begin on a very small scale. Such as when the lightbulb goes off in your head for an idea. As the idea is nurtured with sun, water and tender loving care, like a seed that has been planted, it begins to grow. In this instance the farmer who nurtures the plant is considered the outside investors who provide the necessary funds and additional needs until the business grows larger.
What is Considered a large company Entrepreneur?
A large company is already established and well grounded. Sometimes, entrepreneurs work within larger, established companies. For instance, the entrepreneur may come up with an idea for a new division of the larger company. If it is a division of the larger company, that means it operates on it’s own but is backed financially and marketed by the home company.
What is considered a social entrepreneurship?
Well, a social entrepreneurship launches an organization that’s fundamentally about enacting positive social change. In addition, they are not operating to generating profits. Nevertheless, a social entrepreneur is willing to take on the risk and effort to create positive changes in society through their initiatives. For instance, the social entrepreneur seeks innovative solutions to community-based problems. Specifically, the social change to environmental conservation, racial justice, or philanthropic activity in an underserved community.
What are the 4 Ways to Set Up Your Business?
- LLC
- Corporation
- Non Profit
- DBA
Provided below are the definitions per the dictionary-
LLC- A limited liability company is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
Corporation- A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity and recognized as such in law for certain purposes. Early incorporated entities were established by charter. Most jurisdictions now allow the creation of new corporations through registration.
Non Profit- A nonprofit organization, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners.
Doing Business As- You might need to register your DBA — also known as a trade name, fictitious name, or assumed name — with the state, county, or city your business is located in. Registering your DBA name doesn’t provide legal protection by itself, but most states require you to register your DBA if you use one.
How did Envision Dream, LLC Find their type and which way did they get set up?
Envision Dream, LLC is owned and operated by one person. In other words, a sole proprietor. As a sole proprietor, the entity decided to sell merchandise for a profit. Along with taking on all the risks of losing the their own money invested and all the revenue made successfully. As a result, the entity fell into the small business category out of the 4 Types of Entrepreneurs
Now that we established the type of entrepreneurship as a small business, we needed to set the company up with protection. First we went to LegalZoom.com, which is an online legal technology company that helps customers like Envision Dream, LLC to create legal documents without having to hire a lawyer. We chose to be a limited liability company because a DBA doesn’t protect our business name from being used by others and we wanted our personal property to remain separate from the business.
TO LEARN MORE ABOUT Establishing Your Type, WATCH OUR FULL MY BUSINESS JOURNEY JOURNAL VIDEO DISCUSSION BELOW- Established my type
Strive not to be a success, but rather to be of value
Albert Einstein
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