Case Study 3, Zatswho Llc

In: Business and Management

Submitted By jackiezaabartel
Words 414
Pages 2
1. What tips can you offer Cooper and Schwinoff about family members who start and run a business together? What pitfalls would you warn them to avoid?
I would recommend them to get as many agreements done in advance as possible. Having a solid business plan which clearly defines the company structure, responsabilities, direction, and roles, is an essential piece.
Knowing each family member’s experience and background, they need to respect any decision either of them make on their jobs.
Another very important topic is stablishing how much money each of them are going to earn, and agreeing up-front how equity will be distributed.
They need to have a clear and honest communication about how the business is running, so when changes are needed they have been identified with enough time and data. A good recommendation for this topic would be to have business meetings periodically.
Conflict is inevitable, the key is whether you handle it well or allow it to destroy the business and/or the family. Conflicts should not be personalized.

2. Suppose that Cooper and Schwinoff had approached you when they were launching Zatswho concerning the form of ownership they should use. Which form of ownership do you recommend they use. Why?
I would have recommended them to use Limited Liability Company (LLC).LLC is a hybrid entity that combines favorable aspects of the corporation and partnership. The LLC features pass-through taxation of the partnership, and limited liability of the corporation. I see it like this - the LLC is a partnership that offers the limited liability protection of a corporation. Or conversely, it's a corporation that's taxed like a partnership; very convient for Cooper and Schwinoff’s business.

3. Zatswho’s target Market
Since the idea to produce photo flashcads came from Trish Cooper who is a 52 years old grandmother, the best target market would be…...

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