Memo

Opening a company on your own requires a good business idea that has to be pretty
competitive and targeted on a specific niche. If you tend to be too general nowadays
you will probably lose plenty of time and energy for a small profit margin because
these sectors are already covered by the big corporations which do not intend to let
ground for small local companies, in the end you would find yourself fighting with the
windmills. Keeping this in mind and analysing the opportunities and trends around
me, I have come to the conclusion that a shop which would sell bio apparel for
children would be a sound idea of business in Cluj.
This business idea appeared by studying the people who dwell in my neighbourhood,
there are mainly families with kids and with a good financial situation, and by
considering a new trend which flourishes in the society, the desire for bio products.
Thus, combining these two components the idea took shape. Moreover, researching
about bio clothes and kids apparel I found that I would have an important competitive
advantage if seize the opportunity now because in Cluj are just a few shops which
sell bio clothes, but none which are specialized only on this niche.
After the concept of the business was established, the next step was to identify which
legal form is the most suitable for the idea, in order to do this I did a proper research
and I observed that my options are either a licensed natural person or a limited liability
company. So, I had started to write pros and cons for both options until I understood
that a limited liability company is the most appropriate legal form that I can opt for,
considering multiple arguments. In the first place, a limited liability company is more
convenient from the taxation point of view because a microenterprise tax is applied
until the limit of one million euros in revenue is reached, the actual tax rate being 1%
of revenue considering that I am planning to have at least one employee. In the second
place, another advantage is that I can run such a company without the specific
expertise that is required for a licensed natural person and that the framework enable
me to expand the business more easily, if it will work successfully, in the way that I
could opt for more fields of activity and employ more people. Last but not least,
speaking about liability, in the case of a LLC, the liability is limited and in accordance
with the contribution to the share capital whereas for the LNP the liability is unlimited.
To conclude, I hope that someday I will admire the company that I described here
running successfully. The idea that I will remain with after this project is that starting a
business nowadays is not as complicated as may seem to someone, especially if you
think twice at your business idea, decide carefully which legal form suits the best your
company interests and if you have the requested courage.