There are numerous business formats available and the type that is selected may be dependent upon a business owner’s business objectives, finances or interests. Common business types be categorised as
- Home Based Business
- Family Business
- Online Business
- Franchise Business
A home based business is a small business that operates from a home office. Indicatively there are few employees. Flexibility, convenience, lower overheads, income tax savings and no commuting are just some of the advantages of this form of business.
A family business can be of any size and are found in almost every business sector. Family members exercise control over the business by way of ownership, policy direction and management when employed in key positions. The succession of a family business transfers to the next generation.
An on-line business is any form of business that is conducted over the internet which acts as the conduit for all business activities. Business activities can comprise the buying and selling of products, supplies or services in almost every business sector. Anyone can start an on-line business.
A franchise is a business relationship where on party grants another party the right to distribute goods or services and to use the business name for a fixed period of time in exchange for a franchise fee which may be an upfront payment or an ongoing fee or a combination of both.
A contractor is the owner of a business that hires out their services to other businesses. Contractors negotiate their fees and working arrangements. Contractors generally apply their own process, tools and methods to perform their work.
Please note: Prepared by Leigh Barker Tangible Assets, Accountant at MWC Group, Portfolio Finance, Gordon and West Pennant Hills. Note that all content of this blog is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance