There are at several different types of business the main ones being sole trader, partnership, private limited company, public limited company and franchise. All of the above company types are slightly different from each other. A sole trader is a company that is owned by one person. They are their own boss, they make their own decisions, all the profit that the business makes they have, they have the freedom that you don't get when you are working for someone and a sole trader business is easy to set up.
Also being a sole trader has disadvantages, the owner has to deal with all of the loss of the company (unlimited liability), they have to work long hours because they have to run the business them selves, they have fewer holidays than you would working for someone because they have to do everything them selves, getting money to start up a sole trader business can sometimes be hard because if a loan was needed banks hesitate when giving sole traders a loan because a very few amount of sole trader business succeed, they usually go out of business in the first year of trading.
A partnership is a company that has to be owned by between two and twenty people. Investors in a partnership company can decide to join the company as a sleeping partner which is a person who invests money into the business but takes no part in the running, because there are lots of people running the business all the experience that every member of the workforce can be shared, all of the workload that needs to be don't can also be shared, all of the loss or expenses can be shared between all of the partners therefore there would be a less amount to pay, the money that is needed to start the business can be made easier because there is a lot more people to combine there money together, also getting a loan for a partnership company would be much easier because the success rate for partnership businesses is much higher.
There are also disadvantages to inverting into a partnership company, all the profits that the business has made has to be shared out amongst all of the partners, all of the decision making is split between all of the partners, that may cause arguments between the partners because one may say something should be don't and another could say something else should be done.
There are two types of limited company, there is private limited company and public limited company. A private limited company can have one or more members (shareholders), the finances for the business come from shareholders, borrowing and retained profits, and also raising finance to start a private limited company is easier because the success rate for them is also quite high.
There are also disadvantages to having a private limited company, they can not offer shares to the public (on the stock exchange) only people within the business can buy shares in the business, all the accounts from a years trading in a private limited company has to be published every year, doing this gives there competitors access to the companies personal information, profit is shared out between all of the shareholders.
A public limited company can offer its share to the public on the stock market, they can raise money buy selling shares in the company on the stock market. All of the advantages and disadvantages are the same as the private limited company except for the advantages shown above. A franchise company is a person buys the license to use the name, products and services. A franchise owner can choose to operate as a sole trader, partnership or limited company, therefore all the advantages and disadvantages listed above will apply.
One disadvantage of owning a franchise is that a portion of the profit made will go to the franchiser, which brings down the overall profit. The company that has been chosen is TOPMAN and they are a public limited company and is owned by the Arcadia group, the arcadia group is the UK's second largest retailer and the name behind some of the largest high street brands – Burtons, Dorothy Perkins, Outfit, Evans, Miss Selfridge, Topshop, Topman and Wallis. Operating with over 2,000 stores nationwide, Arcadia employs over 24,000 people and has a leading Internet presence and growing international portfolio.
TOPMAN was formed in 1978 when it was decided that a brand would be made for the younger more fashion-conscious customer, in 1980 TOPMAN became a success and made in excess of 1 million profit, 1982 TOPMAN was a continuing success with 52 shops, many of which are shared with Topshop, 1983 TOPMAN signs footballer Charlie Nicholas to promote there merchandise, 1985 TOPMAN grows rapidly and has 200 outlets across the country, 1989 TOPMAN is the brand leader in the young men's high street, 1990 TOPMAN starts producing formal wear for ages 15 – 25 year olds, 1992 TOPMAN uses more footballers as fashion role models, 1993 TOPMAN has a new shop fit to appeal to more customers, 1996 TOPMAN.
introduced Moto men's wear, 1999 TOPMAN revamps its image to appeal to younger customers, 2000 TOPMAN gets new management staff to make the business more successful, 2001 TOPMAN aligns itself with the male cancer campaign, 2002 TOPMAN shows its first catwalk show at the depot in kings cross, 2003 TOPMAN introduces new suit line, in the future TOPMAN hopes to help young menswear student with there studies by selling there productions in stores. All businesses have to have objectives, the objectives that a business has need to be met, businesses may set objectives weekly, monthly or yearly and some businesses may even have them all combined.