BUS-1100-04W Contemporary American Bus

BUSINESS PLAN PROJECT Part 2 (covering lessons 4-5) Your goal: To document your startup's form of ownership, industry trends, and company background. Continue building your business plan by making decisions about your company's form of business ownership and writing about yourself as an entrepreneur. You'll also take a closer look at the industry in which you'll operate, and examine the industry and product in more detail. Then you'll play the role of a potential partner as you critique your business plan to revise and strengthen what you've written. 1. In choosing a form of business ownership, the key issues are control, transfer of ownership, taxation, liability, division of profits, and how easily the business can be started and administered. Given these considerations, will your startup be a sole proprietorship, partnership, corporation, or limited liability corporation (LLC)? Write a few sentences about your decision and the main reasons it makes sense for your new business. Sole Partnership LLC Corporation Proprietorship Control Complete Shared control Shared control Formal control governance Transfer of Very difficult Difficult Difficult Easy ownership Taxation Pass-through Pass-through Pass-through Corporate (can elect for corporate) Liability Unlimited Unlimited (in Limited Limited most cases) Division of 100% to the Shared equally, Shared equally, Shared profits owner unless specified unless specified according to % in company in company of ownership. agreements. agreements. Ease of Easy Easy Moderate Moderate startup and administration2. List a few of the major expenses involved in the startup of your business and the main expenses you expect to face as the business continues (equipment, inventory, etc.). Based on your answer to Question #1 and your list of expenses, which sources of funding, in general, do you anticipate using as you begin your business? Will the same sources be available or appropriate later, as your company grows? Write a couple of sentences about funding your startup in the context of the form of ownership you plan to use. 3. What entrepreneurial characteristics and personal factors are important to your success in this startup business? Summarize, in one sentence, why you believe you will be a successful entrepreneur. 4. In one or two sentences, state the nature and mission of your new business, and what the mission means for you and for your stakeholders. 5. Have you looked into becoming a franchisee? Explain whether franchising would be a good possibility for your startup, and why. What changes would you have to make to your business plan if you chose franchising? Write a few sentences about the possibility of franchising. If you decide your business will be a franchise, revise your business plan to reflect that decision.5. Have you looked into becoming a franchisee? Explain whether franchising would be a good possibility for your startup, and why. What changes would you have to make to your business plan if you chose franchising? Write a few sentences about the possibility of franchising. If you decide your business will be a franchise, revise your business plan to reflect that decision. . Nationally advertised name and marketing support . Training and materials . Management advice . Products and production methods RESTAURANT Franchisor Franchisee Franchise10. ll. . Look more closely at the industry in which you'll be operating. What are the current trends in this industry? Will you have difculty breaking into the industry? Are businesses entering or leaving the industry? Are businesses in this industry generally .you're basing_your plan on an existing business: Whatform of business ownership is this company using, and why is it appropriate, given the key issues of ownership? What are the disadvantages of this company's form of ownership7 Thin ing about . Before you'd go into business with any partner, you'd carefully investigate the company, right? So put yourself into the shoes of a potential partner evaluating your startup. Look over what you've written in Parts 1 and 2. Then list at least two new . Review your answers to Part 1 as you write two or three sentences about what your business will offer. What product {good or service] do you plan to market? Who will your customers be, and how will your product satisfy their needs? struggling or protable? Write a few sentences about the industry and how your business might prosper in the industry. A the future, do you think this company will need to change its form of ownership to accommodate growth or for another reason? Explain your ideas here. Cluestions You would ask about this startub before agreeing to become a bartnen For example, you might focus on some aspect of the industry, the form of ownership, or the entrepreneur's ability to succeed in this business. As a potential partner, would you have condence in the future of this business? How would you strengthen the business plan? Explain your questions and answers here. A thional as instructor directs: In a team or individually, discuss the possibility that your startup might become a franchisor in the future. If your business succeeds and begins to grow, would your goods or services be suitable for franchisees? Draft a paragraph or plan a brief (three-minute) presentation expl ng why you think your startup might or might not ultimately mature into an attractive franchising operation. BUILDING YOUR BUSINESS PLAN: Transfer your answers to Questions 1, a, 4, and B to the Business Plan document you previously created, arranging the sentences within the \"Executive Summary\" section. Transfer your answer to Question 2 to the opening of the \"Financial Projections" section. Transfer your answers to Questions 5, o, and 7 to the \"Product and Market Description" section. As before, save your work so you can add to these sections and rene the content later, then upload and submit the work you have completed on your Business Plan so far