The business plan is a written proposal that identifies the intended company, analyzes the business situation, lists planned operations, and projects financial data. It puts your business ideas into written form. Planning is critical to a successful business. Types of plans vary according to the needs of the business. For example, plans may be long-term and/or short-term; simple or complex; detailed or general; lengthy or brief.
The specific needs of the business should include: purpose and objectives; expansion or curtailment strategies under consideration; possible new reduces; financing needs; and identification of problems and potential solutions. The primary purpose of business planning is to ensure profitability. Planning helps you determine the purpose of the business. It also helps you know where you are, where you want to go, and how to get there. A plan gives you a path to follow as you seek your goals. It provides details for potential lenders to examine. Lenders must gain insight into your situation before deciding whether or not to lend you money.
The business plan serves as a communication tool to consultants, advisers, investors, true employees and suppliers who need to learn about your operation and objective. Collecting data causes you to discuss your proposed business with specialists in your field of interest. Banks and other lending institutions vary in their business requirements. Lenders are taking a risk when they lend money to a new business. Therefore, the plan must convince them that your business has the potential of a making a profit, enabling you to repay the borrowed money.
Business Plan Outline: Identification Business Name Business Owner Date of Preparation Introduction Types of Business Goods and/or services Sources of information Primary sources Secondary sources Analysis of Business Situation Self-Analysis Trading-Area analysis Market-segment Analysis Analysis of Location Planned Operation Organization Proposed Services Proposed Products Proposed Marketing Strategies Planning Financing Income and Expenses Capital Needs Being able to have a small business that is important to the community is the ultimate goal for my company.
Providing lost cost party and wedding planning is goal of Deed’s Supreme Planning. Deciding on the best business form out of sole repositories, partnership, “C” corporation, and “S” corporation are the first step in building a lucrative company. Once the business organization has been decided, we have to decide on the best financial statement associated with the business. Understanding the business forms such as tax implications, legal implications and accounting implications will provide clarity during the filing for taxes.
There are several advantages and disadvantages to sole proprietorship, partnership, “C” corporation and “S” corporation. A sole proprietorship is one person alone. He or she ill have unlimited liability for all debts of the business, and the income or loss from the business will be reported on his or her personal income tax return along with all other income and expense he or she normally reports (although it will be on a separate schedule).
Although proprietorship avoids the expense of forming a partnership or corporation, many start businesses this way because they are unfamiliar with the other forms of organizations (Business Organization, 2011). All profits and can be re-invested in the business or it can be used by the owner and active aspect is Owner has full liability for entire business operations including all debts or lawsuits against the business. The owner’s entire personal assets are at risk. There are two types of partnerships.
General and Liability both allow unlimited liability for debits of the business. The general partnership, each of the two or more partners will have unlimited liability for the debts of the business. The income and expense
With a limited partnership, each of the general partners has unlimited liability for the debts of the partnership, but the limited partner’s exposure to the debts of the partnership is limited to the contribution each has made to the partnership. With certain minor exceptions, the reporting for tax purposes is the same as for a general partnership (Perez, 2011). Partnerships are advantages because they are still easy to establish but o should have a professionally done operating agreement and the disadvantage is employee benefits cannot be deducted from the businesses income.
This includes The “C” corporation files its own tax return and pays taxes on its insurance. Income. If the corporation distributes some of its earnings in the form of dividends, it does not deduct the dividend in computing its taxes, but the shareholder recipients must pay taxes on those dividends even though the corporation has paid taxes on its earnings. A corporation has some tax benefits such as deductibility of health insurance premiums (Woodruff, 2011).
Finally, the “S” corporation is for federal income tax purposes is treated as a partnership for tax purposes, although it is treated as a regular corporation for other purposes. The sole proprietorship has the balance sheet and the income sheet, which is associated with all of the business origination forms. In sole proprietorships, the profit of a business occurs after the owner has taken a reasonable draw for his salary. A sole proprietorship must make enough profit to pay the owner’s salary and still have enough left to support the growth of the business (Woodruff, 2011).
The major difference between for the readership financial statement is the earnings can be allocated based on a stated fractional basis; a ratio of capital investment or on salary and interest allowances, but are still associated with a balance sheet and using the company’s equity financial statement. The different types of financial statements for corporation are income statement, balance sheet, statement of cash flows, and statement of retained earnings. Their purpose is to provide information on the performance and strength financially to the position of a company.
This financial statement is valuable for the users while they go for economic decisions. The consequences associated with each form of business will vary based on the business organization selected. The legal implications are based on the organization selected as well. Legal problems can come from taxation liabilities and making sure that the correct tax information is being added. Deed’s Supreme Planning will take away the stress from customers in planning for that big day or that special occasion.
We are able to provide your dreams within your budget. We also sponsor for the community so we are able to show them how we can provide our services for their budget. We also get discounts or products and venues for these events when business or customers use our service. We can get meet and exceed your demands with your budget. The business choice for Deed’s Supreme Party planning is general partnership organization. This option is selected because it will fit our needs the best.
Having the ability to be considered self-employed, and sharing of profits are subject to the self- employment tax with each partnership having at least one partner. A value proposition in business and marketing is a statement summarizing the customer segment, competitor targets and the core differentiation of one’s product from the offerings of competitors. A company’s market contribution normally extends further than its core product to include services, programs and systems rudiments.