What is an independent business?
The independent enterprise is an enterprise that is not publicly traded in the stock market and is generally owned by a very small group of individuals. Independent businesses can belong to a single owner, partnership or a selected group of several owners. Although independent businesses often have the advantage of choosing their own fates and focusing on long -term strategy, they can be somewhat limited in terms of expansion. This means that shares in the company, if any, cannot be traded in an open market. In independent business, the only people with access to the shares are owners and selected employees. This can be very advantageous, because the only people that the owners have to deal with are themselves. Privately held by the company often has the opportunity for a more adapted personal business plan that may not accept hundreds or thousands of faces shareholders.
The Independent Management StructureIt usually places the most strength in several key hands. The only ownership allows one person to own a whole company, or at least enough company to have decision -making powers on all issues. The partnership usually divides power between two or three main owners who may be interested in doing business equal to their investments in it. Private corporations may include several interesting investors, although shares remain in the company's structure and cannot be sold in an open market.
One of the huge advantages for existing as an independent enterprise is the lack of obligations owed to public shareholders. In general, public companies have to deal with the pleasure of shareholders at the same time, which will provide them with immediate revenues to stay to stay in society. An independent enterprise, if it manages to stay above the water, can focus its attention on the long -term vision of the company. Although it may mean that no one will be on the grounds ofthat it to prepare the land for a slowly growing and successful society that is able to remain faithful to the basic values and ideals of the owners.
The disadvantage of independent business is that it does not have access to some natural advantages of public society or established franchise. The independent company must build a brand, create a record of success and rely on personal challenges to obtain new investments. If the stock market is increasing in a particular area, an independent company may not benefit because its shares are not publicly traded. Independent companies may have a longer and slower extension period based only on performance.