The Advantages and Disadvantages of a POS System

Some people may confuse eCommerce with eBusiness and vice versa, but while the terms sound similar, they are in no way interchangeable. Understanding the distinction between these can make all the difference. With online retail shops generating 14.34 billion visits in March 2020, both branches of commerce are precious. In short, this article will answer the question: “What is the difference between eCommerce and eBusiness?” What Is eBusiness? With tech becoming integral to practically every aspect of our world, it's normal for businesses to implement tech-driven strategies. This may make it difficult to tell which companies are eBusinesses, but essentially, you could say most businesses are. The eBusiness definition states that any business carrying out its activities via the internet is an eBusiness. From buying raw materials, manufacturing goods, facilitating financial transactions, and product exchanges, so long as a business activity has been done through the internet, it counts as an eBusiness activity. These activities can be carried out through the internet, intranet, or extranet on apps, websites, enterprise resource planning (ERP), and customer relationship management (CRM) software. To identify an eBusiness, we can consider some case studies. Elements of an eBusiness Email Marketing Using email communication to foster relationships with existing and potential customers is a significant element of the eBusiness model. Marketing via email is an essential part of that. Digital Management Tools Digital tools take otherwise physical processes and carry them out online. For example, handling workflow processes with content teams can happen through online documents instead of a physical, paper-fueled system. Because these processes have been carried out electronically instead of physically, any business involved is essentially an eBusiness. Creating and Selling Online Tools Building systems for digitizing business activities, such as inventory management, is a form of eBusiness. The creators of such systems have facilitated the means to carry out business processes electronically, making them an eBusiness. Other eBusiness examples include setting up online stores, facilitating customer education, supply chain management, buying and selling products, and financial business transactions. If a business offers a service or product physically, it qualifies as a standard business. However, if it incorporates tech elements, such as providing services online, it's also an eBusiness. Bear in mind that there are two types of eBusiness models: Bricks and Clicks/ Bricks-and-Mortar (omnichannel) and Pure Play. Omni-channel companies use both offline and online resources to facilitate business activities. In the Pure Play model, business activities are strictly conducted online. What is eCommerce? The eCommerce definition is simple: The term refers to businesses selling goods or services online. In today's world, many products - like movies, music, and books - are bought and sold chiefly through eCommerce platforms. Popular eCommerce examples include retail platforms like Amazon or eBay. An eCommerce sale will typically include all the usual trading elements: You order a product, pay for it, and then have it delivered to you. You may also order a product and opt for in-store pickup, or decide to pay either via card online or in cash when your order is delivered. ECommerce has expanded over the years, across both websites and apps. Some businesses decide to combine their web pages and apps with virtual marketplaces as points of sale. More exposure is good, after all. No matter where a customer buys a product, it's all a part of eCommerce. Just like eBusinesses, eCommerce has various models. The types of eCommerce are: Business-to-Business (B2B) A B2B business model is a form of eCommerce where a business provides products and services to another company.  For example, companies that manufacture goods like batteries, car tires, door locks, and hoses sell them to companies in the automobile industry. Another example is video production companies whose services aid the marketing campaigns of other companies, or tech companies that make accounting software for companies. The B2B eCommerce model involves a business serving another business environment. Business-to-Consumer (B2C) The B2C eCommerce model involves businesses selling products and services directly to individuals. These end-users are called consumers. An example of a B2C model is a clothing store selling fashion items to the public online. Most businesses use their own websites to facilitate these transactions, but that can be costly to design and host. Luckily, cheap effective solutions are available through eCommerce website builders.  Consumer-to-Business (C2B) It might sound surprising, but the C2B relationship actually exists. In the consumer-to-business model, consumers sell services or even goods to businesses. An excellent example of the C2B model is influencers giving reviews and suggestions after using a product. Other times, paid consumer focus groups can test the products, and the business uses these suggestions to further improve the product. Consumer-to-Consumer / Customer-to-Customer (C2C) This is an eCommerce business model where consumers sell their products and services to other consumers, usually through a platform online. A famous example of the customer-to-customer model is the freelance gig market, where individuals sell services like data analysis, content writing, voice acting, web design, or even software development to other people. Platforms like Upwork and Fiverr facilitate these eCommerce transactions, charging a fee on the payments made. eCommerce vs. eBusiness Let’s break down the differences between these two seemingly intertwined terms.     eCommerce  eBusiness 01 The eCommerce definition refers to carrying out commercial activities and transactions over the internet. The definition of eBusiness refers to conducting all and any business activities online. 02  eCommerce is a subset of eBusiness. eBusiness is a broader concept than eCommerce. 03 eCommerce activities include the purchase and sale of products, as well as making financial transactions on the internet. eBusiness activities include buying raw materials, manufacturing goods, and facilitating financial transactions and product sales on the internet. 04 eCommerce usually requires a website or an online platform. eBusiness needs more than just a website. It needs multiple web platforms, enterprise resource planning (ERP), and customer relationship management (CRM) software. 05 eCommerce works on a Business to Customer (B2C) model eBusiness works across all models, so long as they’re on the internet. From all this, it should be clear what the differences between eCommerce and eBusiness are.

When sifting through information on bankruptcy, people tend to consider it a horrifying and lengthy legal process that can leave them in permanent financial ruin from which they can never fully recover.  They may also assume that declaring bankruptcy will act as a magical off-switch and bring financial relief to anyone on the road to financial disaster by eliminating all of their debts.  Neither of these assumptions is necessarily true, as the definition of bankruptcy simply involves legally declaring that you can no longer repay your debts.  This article will seek to dispel these myths by providing information to ultimately answer the question: what is bankruptcy? Bankruptcy Explained Bankruptcy is a legal action whereby a person or a company can legally declare that they can no longer repay their debts in front of a bankruptcy court. By doing so, they may be granted relief by being discharged from bankruptcy.  In the United States, bankruptcy proceedings are governed by federal law under six specific chapters of the US Bankruptcy Code. Claiming bankruptcy is achieved by filing under a specific bankruptcy chapter. However, only four are meant for individuals and businesses out of six chapters, as Chapter 9 deals with municipalities, and Chapter 15 is used in foreign cases. Our focus will be on chapters 7, 11, 12, and 13.  These four different bankruptcy types are categorized based on the parties to the bankruptcy: whether they are an individual or company and the type of legal action or relief sought. Bankruptcy proceedings are achieved through two types of legal action: liquidation and reorganization.  Liquidation happens when you file for bankruptcy, and your assets are sold and the proceeds distributed to creditors to repay debts. Filing for Chapter 7 bankruptcy, which is the most common filing, leads to the liquidation of your assets. However, claiming bankruptcy is not limited to declaring that you can’t pay your debts and then asking the court to sell your assets to pay the creditors back.  Filing for bankruptcy can also mean seeking assistance from the court in reorganizing your property to allow you to pay off individual or company debts.  Reorganization bankruptcy filings are different from liquidation filings because, in most circumstances, they allow individuals and companies to keep their property.  The different bankruptcy types and their legal implications are summarized below: Chapter 7 - Personal or liquidation bankruptcy, best for individuals and businesses Chapter 11 - Business or large reorganization bankruptcy Chapter 12 - Debt relief for family farmers and fishermen Chapter 13 - Wage earner’s plan, best for individual income earners Millions of people file for bankruptcy each year. The purpose of filing for bankruptcy and the end goal of any related proceeding is to be discharged from bankruptcy. Common reasons for filing for bankruptcy are large medical bills, unemployment, loss of a family member, natural disaster, or business failure.  What Happens if I Declare Bankruptcy: Individual Bankruptcy Explained Filing for bankruptcy involves submitting a bankruptcy petition to the bankruptcy court clerk. The court may liquidate or restructure some of your property depending on the type of bankruptcy you’ve claimed. The discharge will ensure that creditors will not chase that debt again in a few years if you do not have sufficient assets to cover your debts. Chapter 7 bankruptcy, for example, will allow the court to gather and sell your assets to pay your creditors and create relief by preventing them from taking further action to collect debts, such as harassing you or pursuing legal action against you. In case of any bankruptcy filing, creditors must stop all action, including legal action to recover the debt and broad measures such as debt collection calls, letters, and personal contact.  Your bankruptcy petition must disclose and outline all your financial and personal information, including a detailed list of all assets and liabilities, a list of creditors and the amounts owed to each party, and any income statements and tax records, including the latest tax returns. It’s important to note that filing and administrative court fees are involved. Depending on your circumstances, the court may waive filing fees or require you to pay the fees in installments.  What Happens After Filing for Bankruptcy? The court assigns a bankruptcy trustee to meet with you to evaluate your financial situation and arrange for the collection of your assets. The trustee then sells non-exempt assets and redistributes the proceeds to your creditors. The total length of bankruptcy proceedings can average between three to six months. Upon completing the case, you will be discharged from your debts.  Being discharged from bankruptcy means that most remaining debts are fully forgiven. This includes almost all types of unsecured debts: Credit card debt Unsecured loans Personal loans Medical bills Utility bills As well as some secured debts such as: Home mortgages Auto loans Tax liens  When dealing with secured debts, the ones backed by mortgage or collateral, you’ll usually have a choice to make. You can allow creditors to repossess the property that secures the debt, continue to make payments to your creditor, or pay a sum equal to the collateral’s replacement value.  Can All Debts Be Forgiven?  Not all debts will be discharged or forgiven after declaring bankruptcy. Certain types of debts will remain: Student loans Court fees  Child support  Spousal maintenance/spousal support payments  Obligations arising due to fraud  Obligations arising related to personal injury claims  Government fines and federal, state, and local taxes Who Can Claim Chapter 7 Bankruptcy?  Chapter 7 bankruptcy is the most common claim for individuals. However, claiming bankruptcy this way may not be available to all. There is a presumption of abuse in place, meaning that you must pass the means test before filing. This test is compulsory and ensures the bankruptcy laws are not abused, and court resources are not wasted.  The means test prevents high-income earners from qualifying for Chapter 7. To pass the means test: Before claiming, your household income must be below your state’s median income for six months. You must carefully gather a list of all your expenses and divide them into allowable and non-allowable expenses.  Your non-allowable expenses are expenses that could be put towards paying off any debts. The remaining expenses and any of your disposable income must be low enough to qualify for filing.  A bankruptcy lawyer can assist you with going through your expenses and determining whether filing under Chapter 7 is the right course of action for you. Access to legal representation can be costly, but you can explore alternatives with our guide to the best online legal services. Petitioning To Keep Your Property in Bankruptcy Proceedings When declaring bankruptcy, you can petition to keep some of your property. This includes the furniture in your home, your clothes, and in some instances, your house and personal vehicle. What you get to keep when filing for bankruptcy could depend on the state you live in.  In the US, bankruptcy filings are governed by federal law, but the personal bankruptcy law on the excluded property varies from state to state. Therefore, the types of property you may get to keep will vary depending on where you live.   Bankruptcy lawyers are generally employed to assist you in successfully negotiating to keep your property. There is no hard and fast rule on what you will get to keep, as it depends on your circumstances.  Chapter 7 and Student Loans Going through the bankruptcy process to relieve yourself from repaying student loans might not be the best idea, as bankruptcy won’t necessarily protect you from this obligation.  Student debt is considered unsecured debt and will not be automatically discharged by the court. Instead, you’ll need to commence additional legal proceedings known as adversary proceedings and successfully establish that the continuation of student loan repayments will cause you undue hardship.  The student loan provider may oppose your claim, and you will need to prove it according to legal standards set by the federal court.  Other Types of Bankruptcies: Chapters 11, 12, and 13 Explained  Bankruptcy chapters 11, 12, and 13 do not involve liquidation. Some companies and individuals may wish to restructure their finances to pay off their debts over the long term or decide on a different approach to bankruptcy. Chapter 11 of the Bankruptcy Code allows companies and business partnerships to continue their operations and keep their property by asking them to create and carry out the terms of a formal plan to pay off their debts. This claim is commonly referred to as company bankruptcy, and it can force companies to completely restructure their operations.  Restructuring is usually achieved by encouraging leadership changes, closure of facilities, and the renegotiation of debts. The main benefit is that the company can avoid liquidating its assets in the short term and continue operations.  Chapter 13 of the Bankruptcy Code is also called a wage earners plan. It allows individuals to reorganize their debt through a formal debt repayment plan based on their income for the last three to five years.  Chapter 13 filing is limited to wage earners, allowing them to keep their property. Individuals must have a regular income and are expected to repay as much debt as possible through regular monthly installments.  Lastly, Chapter 12 of the Bankruptcy Code is similar to Chapter 13, except it’s only available to family farmers and fishers with regular annual income.  Final Thoughts Bankruptcy may seem like a scary word, but it doesn’t have to be. By understanding the basics of bankruptcy and what it can do for you, you’ll be able to decide whether or not this is the right step for yourself or your business. If you’re feeling overwhelmed by debt and don’t see any other way out, bankruptcy could be the solution.  Personal bankruptcy filings may remain on your credit history report for 10 years and directly impact your ability to receive approval for future loans. Thankfully, there are alternative business loans for bad credit providers available. Bankruptcy can provide a fresh start, but choosing the right chapter is important. If you are considering bankruptcy, it’s best to consult with an experienced attorney who can guide you through the process and protect your rights.

When most people think of business partnerships, they think of two or more people jointly managing daily operations. However, you can opt for another type of partnership where one party isn’t involved in day-to-day management. Enter the silent partner. So, what exactly does this partner do, and what are the benefits and drawbacks of this type of business relationship? In this article, we will answer these questions and more. What Is a Silent Partner? A silent partner is an individual or entity that provides financial backing for a business venture without being actively involved in the day-to-day operations. Silent partners are also sometimes called limited partners, as their liability is usually limited to the amount of money invested even if the business declares bankruptcy. Occasionally, if asked to, the silent business partners can provide guidance and help with networking and finding new potential business partners. It is not uncommon for silent investors to be called upon in case there is a dispute between other active partners to mediate the situation. However, most of the time, the silent partner remains silent. By entering into such a partnership, the silent partner has full confidence in other partners to handle daily operations and grow the business, so they typically have no issues with taking the back seat in the daily management of the company. Who Can Become a Silent Partner? Becoming a silent partner in a small business isn’t a complicated process. Individuals, trusts, and corporations can all serve as silent partners. For small businesses and startups, silent partners can even be friends and family. However, most of the time, it is a business or an investor that benefits from partnering with your company in one way or another. In some cases, a business may even have two or more partners that are silent, as long as it works for both parties. We'll tell you how to find a silent business partner a bit later. But first, we’ll go over the benefits of having one and how the arrangement is supposed to work. The Benefits of Having a Silent Partner There are several benefits that come with having a silent partner, but the main one is financial. Provides the Needed Capital With No Interference First, it allows you to raise capital without having someone interfere in how your business is run. A silent partner doesn’t interfere in the day-to-day decision-making process, either because they don't know much about the industry or lack any interest in managing daily operations. Silent partner business opportunities are ideal for those who have confidence in the management team and are interested in investments that deliver passive income. Those investments can provide much-needed capital for businesses that are just getting started without any revisions to the business plan or the marketing strategy. In addition, this financial support can help cover unexpected costs or help the company expand its operations. New Networking Opportunities Silent partners, just like angel investors, are also usually well-connected and can use their networks to help the new business in a variety of ways. For example, a silent partner or investor may be able to introduce the company to potential customers or help it to secure favorable contracts. Overall, silent partnerships can be a great way for many entrepreneurs and new businesses to get the business off the ground. How Does Having a Silent Partner Work? As with any other partnership, the silent partnership should be formalized in writing. However, to do so, your business must be registered first. Registering the Business Any business with two or more owners can either be structured as a general partnership or a limited liability company (LLC). Different states have different rules for registering these partnerships, and you should inform yourself about the relevant laws and requirements. Silent Partnership Agreement The next step is inking the agreement. It should include the roles and responsibilities of all parties involved, the amount being invested, the stake owned by each party, as well as how the profits are distributed.  Most importantly, it should outline the legal responsibilities of all parties. Silent partners are typically liable for losses up to their invested amount, which makes this a safe investment without the threat of unlimited liability. It also outlines the procedure if one partner wants to sell their stake in the business or if the entire business is sold. A silent partner agreement helps to protect both partners by clearly defining their rights and obligations. By having a silent partnership agreement in place, the partners can avoid potential conflict and ensure that their business runs smoothly. So, if you are considering entering into a silent partnership, it is important to have an attorney review the business agreement to ensure that it meets your needs and provides adequate protection. How Does a Silent Partner Get Paid? Typically, silent partners receive a fixed percentage of the profits on a monthly, quarterly, or yearly basis. In some cases, they may also receive a portion of the proceeds from the sale of the business.  Silent partners don’t get paid like business owners. Their earnings depend on the amount they invest in the business and what percentage of the business they own. If the business partner buys 10% of the shares with their investment, they will typically receive 10% of the profits. The exact details of the payment terms should be outlined in the partnership agreement. Silent Partners vs. Investors Both silent partners and investors provide financial backing for businesses, but there are a few key differences between the two. The most important of these is the level of involvement each type of shareholder has in the business. Silent partners, as mentioned before, are typically passive investors who do not take an active role in managing the company. On the other hand, investors often have a say in how the business is run and may provide input on major decisions. Another key difference concerns the silent business partner's low level of risk. Silent partners are typically liable up to the amount they invest and as such don’t risk losing anything more than the actual investment. Unlike most regular investors, they are also immune from any legal action being taken against the business. Finally, silent partners typically invest their own personal funds, while investors may use borrowed money to finance their investment. How to Find a Silent Partner? If you're interested in finding a silent partner, there are a few places you can look. Similarly to finding an angel investor, you can start by networking with individuals and businesses in your industry. You can also search online for directories of potential investors or work with a business broker to connect with a potential silent partner company. The silent investor doesn't have to be an individual. The business operating in your niche can also be a silent investor. Pros and Cons of a Silent Partnership When starting a business, there are benefits and potential pitfalls to bringing a silent partner onboard. It’s important to thoroughly examine both the pros and cons before pulling the trigger on this business arrangement.  The pros of having a silent partner in a small business: Silent partners can provide much-needed financial support when you’re trying to get your business off the ground. They can also have a valuable advisory role. Having a silent partner onboard can also be helpful in building credibility and attracting other investors. Finally, silent partners can provide an important buffer during difficult times or periods of transition. While they may not be directly involved in running the business, their support can be crucial during tough times. Cons of Having a Silent Partner in Business The silent partner may not be as invested in the success of the business as the active partner.  Silent partners are often not familiar with all aspects of the business, which can limit their ability to provide useful input. Finally, it is important to remember that a silent partner has a percentage of the business but doesn’t get involved in strategizing or managing operations. As such, if the business fails, silent partners are inclined to blame the management team. In Conclusion Silent partnerships are common practice in the business world, and for small businesses that are just starting out, they can be a crucial ingredient for success. Silent partners offer up the cash without demanding changes to daily operations or influencing your decision-making process. However, most silent partners lack the experience and business knowledge to have an effective advisory role. Make sure this is an appropriate arrangement for your company before signing any silent partner business agreements.