The following are the advantages J and S have in starting iUser Accessories together, rather than one of them starting as a sole proprietor is the following:
• Main advantage is in raising capital for the new venture would be easy for if both of them use their contacts than only one.
• Both J and S did an entrepreneurship course, which means both their idea is to start business, and business plan was prepared by both of them as a part of their assignment
• This business plan won $10,000 in the university wide business plan, which they planned to use the money to establish a relationship With an accountant affiliated with the university.
• Both could contribute an amount of $33,000 each through both personal and outside commitments from their respective family and friends. • J and S have also prepared a one to three year pro forma financial statements, to get the potential viability of the business and did projections including their salaries of $32,000 per year for both of them. They seem to agree on the positive cash-flow within four months and have a good understanding and trust on each other.