Essay de Petenos
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Transcript of Essay de Petenos
Diego Santos
A sole trader is a great advantage depending on the type of business and hopes you got for your
business. If is a small business and its able to maintain itself and provide profit then you better option to
stay as a sole trader. This way you get to have all the profit and continue to have a steady income for a
long period of time, provided your costumers are loyal and constant.
If you decide to turn into a private limited company then you will risk your business going into an
economic downfall. People who tend to go to small business enjoy the aspect of a small business and
personalized service; these are things that a private limited company cannot insure this. A private
limited company is more based in efficiency rather than that kind of service. It’s a risk to take this option
under these conditions and all of this taking into account that know your personal profit will be smaller
at the start because you will have to pay more workers and stake holders.
On the other hand if your business does fit the criteria to expand and not hurt your business then a
private limited company is a great idea. For instance, “Los Hotdogs de la Gonzales” was a company that
started small with a food cart on the street, after expanding the business benefited and it now owns
over 20 fast food stations across Quito. The private limited company in this case benefits you because
although you do have to pay more workers and share holders, your profit is much bigger than before.
My advice to you depends of on type of business you have, base yourself on what your costumers see in
your business and depending on that take your decision.