Technology and globalization have drastically changed the ways businesses reach out to and communicate with customers. Paul has two great advantages; the first is that he has a ready capital base from Sara his cousin and secondly he has Ronald, who has a bachelor’s degree in marketing. As such, this will enable them to be prepared for the modern and continued professional business opportunities in the current dynamic, global business environment. Paul should begin a company dealing with cleaning services. With the ready source of capital, Paul will be able to purchase some of the requirements that the company will require such as cleaning machines as well as employ a few people to do the cleaning. This business can take many directions. For instance, you work during hours when no else does and you can also choose to focus on office clients or even homes. However, it is advisable for Paul to focus on the retail business/direct sales model as this will allow him to keep directly in touch with his clients. This model has more advantages as compared to the distributor, manufacturer and franchise models that require huge amounts of capital and a lot of research to begin. This model involves direct selling to customers and in this case, Paul’s company product will be the cleaning services. It will make use of demonstrating the product in the client’s place of work, residence, restaurant, etc.
After investing so much capital in the company, Paul should not let the company collapse owing to huge amounts of debts. Furthermore, is an inventor and has great abilities to come up with new ideas that were not in the market. More so, his partner Ronald has innovative ways of marketing products and should also come up with new ideas to market the company’s cleaning services. The idea of reducing prices will go a long way in trying to bring forth the company again. However, the prices should not bring further losses to the company but rather increase the profits. As such, before setting the price, he must identify the objective of pricing lower than other companies. This way he will capture a larger market share, lead in the market and finally the company will comfortably involve in price wars. This way, both will increase the chances of attracting new clients to the company and as such they will be able to settle their bills.
Paul has to dissolve his company since it is not making it financially and as such they cannot manage it anymore and have to close down the company owing to the many accrued debts. He has to follow the set steps of dissolving a company that are as follows. First, there has to be a voting process to close down the business. Since the company or more like a partnership between him, Ronald and Sarah the major financier, who are the business associates, they must agree to dissolve the company. Secondly, he will dissolve the company with the state and local government offices. This will ensure that the company is no longer liable for business taxes or filings in the state. He also has to cancel the company’s permits, licenses and fictitious business names. The company will also have to pay all its taxes and debts before dissolution and finally notify the creditors, employees and the clients on the dissolution of the company.
Bankruptcy is a form of insolvency and is normally only suitable if one cannot pay back debts in a reasonable time. Paul’s company has been accruing losses for quite some time now, and the only way to get rid of this is to announce the company bankrupt as he will be able to pay off his debts. Though the company’s assets will be included in the bankruptcy, this is the quickest way for Paul to have a fresh start and more so all the unsecured debts will be written off.
Chesbrough, H. (2013). Open business models: How to thrive in the new innovation landscape. Harvard Business Press.