Entity Selection Exercise
Dick and Jane are running an oilfield drilling business. They want to improve on the activities of the business so that they can sell it at a later date. This will be after it has improved on its activities. The business is doing well and there are several things that the business needs to change for it to be suc -cessful and be sold at a good cost. This process includes having a good strategy and by the use of advisors.
This oilfield drilling business is known by the name Harry and Sons. They want to improve the activities of the business and make the business grow in order for them to sell it afterwards. Making sure it is performing well will ensure that the selling price of the business will be good and they will not incur any losses. In order to ensure that the decisions that are going to be made in the business are good, it is very important that they first understand the vision of the business that they are operating. This will help them understand the purpose for their operation and what they are planning to be their returns after a given period of time. It is important and very critical to identify the regulatory and legal issues that are supposed to be considered in times of business modification. They should select business professionals and advisors in order for them to help in different issues. In order to do this, it is advisable to begin by hiring a lawyer.
Dick and Jane’s business has operated well and made good profits up to this moment but they have experienced some problems that have to be looked into before the business is able to move into greater profitability. Dick, Jane and their employees who are sixty in number are able to work for six days for every week. They get their income by providing services to clients and also renting out their equipments. They are able to generate more than one million in a year.
The business faces problems such as their equipments getting spoilt and they tend to use a lot of money in repairing them. At times, they get contracts but they are at times not paid on time which make the cash flow have shortfalls. This makes it difficult for them to pay their bills on time. These are some of the issues they will need to ensure they correct so that they can make more profits from their services.
There are things that are very important which the business should consider in the process of modifying the business.. The first factor that should be considered is the cost. The second is the business stability or continuity. Thirdly is, the concern about the decision making control. The liability, which is personal, of the owner and lastly the allocation of the profits earned and how the government will tax its income (Keenan 13).
The cost of the business may not be considered to be factor but the idea here is about the continuity of the business. This business depends on Dick and Jane and the survival of the business is dependent on them for it to continue its operations. They are flexible in running this business since all the decisions made in this business come from them. This reduces the amount of conflict since only two people who are Dick and Jane make the decisions. The more the number of people making decisions the more the amount of conflicts that will arise. Considering this, nothing will change in the part of making decision and they should use this as an advantage to the business. They should be able to calculate the tax that shall be charged by the government.
In the process of selecting their advisors, Dick and Jane should be very careful in making their decisions. The first thing is for them to ensure that they have a lawyer in order for them to be guided in making the right decisions. A good lawyer’s knowledge can benefit the decisions being made greatly. Guides show that one needs to consider different issues when it comes to selecting a layer. The layer should be able to provide subjective information, they should asses the work history of the candidate and they should measure the competence of the layer to know whether he or she is fit for the work (Hoffman 24).
The other advisor that the business should acquire is the financial planner. They should look for a competent person to be their financial planner and this person should be qualified and has to have some experience. This person will be able to offer support in matters that concern the finances of the business. The financial adviser should be able to resolve the different problems that the business has been facing. He or she will also be able to give a projection of how money will be used for the coming projected period (Keenan 33).
The third advisor that the business should acquire is a marketing officer. This person will be able to plan on how marketing shall be done in different areas of the market places. This will help people in the market to be aware of the business activities and they may in turn ask for their services. With the above three advisors, the activities of the business will run smoothly and the returns from the business will increase (Keenan 42).
I would recommend that they continue being partners and the business as a partnership business. This will help in the performance of the business in many different ways. For instance, the decisions made may be stronger compared to when a single person makes it. The partners will also be able to share expenses and it will be cheaper than when a sole trader caters for all the expenses. Since it has been in operation for some time and they have been running it together, they should continue that way and ensure that the business become successful. This will make both of them satisfied and generate a good income from the sales.
The business run by Dick and Jane shall be successful if the above strategy is followed. Since they want to sell the business, the price it will be sold at will be high due to the good performance of the business. By the use of the advisors recommended, the running of the business shall be simple and without a lot of input from the owners. These are the things that will assure the business’ continuity. The strategy given will work and the success of the business is assured.

References
Hoffman, Scott L. The Law and Business of International Project Finance. New York: Cambridge University Press, 2008. Print.
Keenan, Denis J, and Sarah Riches. Business Law. Harlow: Pearson Longman, 2007. Print.
Clarkson, Kenneth W, Roger L. R. Miller, Frank B. Cross, and Kenneth W. Clarkson. Business Law: Text and Cases : Legal, Ethical, Global, and Corporate Environment. Mason, OH: South-Western Cengage Learning, 2012. Print.