...Assignment 2 - Creating, Financing, and Marketing a Business Carol Brandon Professor Mark McMullen Bus 100 - Introduction to Business Strayer University May 25, 2012 Creating, Financing, and Marketing a Business Carol Brandon Entering into a written agreement is one way to form a partnership; a partnership may be formed through the actions of the partners as they operate the business together. Even if individuals have an agreement that says "we are not a partnership," the law may find that there is a partnership and hold one or more partners liable for some business-related obligation. The simplicity and flexibility in creating a partnership may be one of the main advantages of the partnership as a form of business. However, the disadvantages of simplicity and flexibility must be carefully considered. Although an agreement is not required, without a written agreement, partners cannot determine their rights, duties, obligations, and liabilities, except for what is covered by state law. This is not normally enough, since the law on partnerships is not detailed. This allows partners a great deal of flexibility to structure the business as they would like it. But it leaves many questions unanswered if there is not an adequate written agreement setting out the details. The other main attraction to the partnership as a form of business is partnership tax treatment. From a tax standpoint, the partnership is as straightforward as the sole proprietorship. There is no tax...
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...Creating, Financing, and Marketing a Business Creating, Financing, and Marketing a Business Heather Stalder Strayer University Justin Ndwiga Business 100(Mini) Creating, Financing, and Marketing a Business One of the easiest ways to start a business is to create a partnership; creating a partnership when forming a business has several advantages and disadvantages. A partnership starts with two or more parties having the same vision developing a business and contributing to the financial and operations of the business.“The simplicity and flexibility in creating a partnership may be one the main advantages of the partnership as a form of business. However, the disadvantages of the simplicity and flexibility must be carefully considered.” (Hanson, 1998) A risk you take in the partnership is that there is no requirement to have written agreement. Without a legal agreement it may be difficult for those in partnership to outline the parameters of the business relationship. If a thorough partnership agreement is agreed upon it can be executed to make the partnership flexible and workable for all involved and help alleviate the tensions that may arise in a business partnership situation. (Hanson, 1998) An upstart business has quite a few options when it comes to financing their vision. Depending on your financial needs the type of financing you choose will differ. Will the financing be long...
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...CREATING, FINANCING, AND MARKETING A BUSINESS Creating, Financing, and Marketing a Business William B. Smith Dr. Robert Culver Lithonia Campus BUS 100 August 19, 2012 Strayer University CREATING, FINANCING, AND MARKETING A BUSINESS Pros and Cons Individuals with the intention of starting a business of their own have several options to choose from in regards to what structure that will fit their needs. For instance, a partnership means that more than one person has ownership of the company. There are different variations of a partnership such as limited and general partnerships. One particular benefit to a business that is defined as a partnership is that the work and responsibilities be shared between whomever is involved, the work load is not left up to any one individual to take on alone. The second benefit to a partnership is that it can be formed very easily, a simple verbal agreement by itself can be all that is needed to bring it together (BUSN Textbook page 76). The worth of all involved may allow the business more resources and brings additional experience to the organization. A major con in this type of business structure is, if all the participants are not on the same page in regards to setting goals, work ethic, drive, and knowledge, conflicts of interest can set in and have turbulent affects on the business. Another stipulation is that the profits must be shared between each partner involved as per the initial agreement. Partnerships can...
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...Creating, Financing, and Marketing a Business Joshua Hall Strayer University BUS 100 Grady L. Meeks Jr. 05/2/13 Creating, Financing, and Marketing a Business Starting a business with a partner offers many benefits, not the least of which is having someone to share the many responsibilities of running a business. The cost is split in half, which also means any earnings will be split as well. A good thing about it is You will have limited liability with the business. There are a few different types of partnerships. a General partnership,limited partnership,and limited liability partnership partnership businesses hold good Benefits,partnerships can quickly go bad if you don't give it ample forethought and planning. partnerships can also be very risky, The business-related acts of one partner can legally bind all other partners. In short I would suggest Avoiding general partnerships and consider forming an LLC or a corporation for start-up businesses. I feel in my opinion it's better,you would have a greater financial success, and you would have more independence. There are many funding options for small business, in my research I have found that there are plenty. Debt financial is one way businesses capitalize on funding. they Don’t have to give up equity and its Available to companies that can’t get equity funding. Which is another funding option for those who qualify...
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...CREATING, FINANCING, AND MARKETING A BUSINESS LEONA PARKS PROFESSOR MARILYN FITZPATRICK BUSINESS 100 FEBRUARY 24, 2012 Leona Parks Professor Marilyn Fitzpatrick Business 100 February 24, 2012 Creating, Financing, and Marketing a Business Identify the pros and cons of the partnership as a form of ownership. The simplicity and flexibility in creating a partnership may be one of the main advantages of the partnership as a form of business. The other main attraction to the partnership as a form of business is partnership tax treatment. From a tax standpoint the partnership is as straightforward as the sole proprietorship. There is no tax at the partnership level. All tax consequences are passed through to the individual partners. The benefit of this pass trough tax treatment is that there is only one tax level. The negative side is that if a business is reinvesting profits into non-tax deductible expenses, the partnership may show taxable income, but have no cash. Each individual will have to pay taxes on the taxable income from the partnership reported on the individual’s tax return; even though no income is distributed to the partner from the partnership. PROS * In a general partnership, where two or more parties are co-owners, having multiple owners can make it easier to borrow additional funds because the combined credit rating is higher and the perceived risk (on the part of the lender) is lower. * Partners share duties, tasks, and responsibilities...
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...Creating, Financing, and Marketing a Business Kimberly M. Albuquerque Business 100 Strayer University 26 February 2013 Creating, Financing, and Marketing a Business When creating a business, entrepreneurs start with goals that help them create, finance and market their business. To stand up their business, they must decide what form of ownership they will use. This decision will affect the establishment and operation of their business, including financing and regulation, as well as marketing. One form of ownership commonly used in the United States is a partnership. This is where two or more people enter an agreement and become co-owners of a firm. There are limited partnerships, limited liability partnerships (LLP), and the most basic type, which is a general partnership. There are four key advantages of forming a general partnership. (1) The ability to pool financial resources likely gives a partnership a stronger financial foundation than a proprietorship because more people invest in the company. (2) The ability to share responsibility and capitalize on complementary skills. With partners sharing responsibility and tasks of running the company, the workload is lightened and they can benefit and feed off of each other’s skills and interests. (3) Ease of formation. Partnerships are relatively easy to stand up compared to corporations. The only thing required to get started is an agreement among two or more people. (4) Possible tax advantages. Partnership...
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...Creating, Financing, and Marketing a Business BUS 100 March 3, 2013 Creating, Financing, and Marketing a Business A partnership is a voluntary agreement under which two or more people act as co-owners of a business for profit (Kelly & McGowen, 2012, p. 76). There are some advantages of this form of agreement whereas each partner has the right to participate in the company’s management and share in profits and losses, but also has unlimited liability for any debts the company incurs. A partnership is easier to establish compared to a corporation. Each partner will share start-up cost, and reciprocate support and motivation. Partnership earnings that pass through the business are taxed only as the partners’ personal income. In contrast to, unlimited liability, partners are jointly and individually liable for the business activity of the other. If a partner withdraws from the partnership, he is still responsible for any debt the business had at the time of withdrawal, it does not matter who created the obligation. Decisions are shared and differences of opinion can lead to disagreements, which can lead to one partner buying out the other. The various funding options for small businesses offer an individual an alternative to partnership. Federal, state, and local governments have all created government subsidy or incentive programs try to facilitate small business funding. Commercial banks and private investors also play a key role in funding small businesses...
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...20 Reasons Why You Need a Business Plan Written by Pete Kennedy Categories: * Business Planning 1. To prove that you’re serious about your business. A formal business plan is necessary to show all interested parties -- employees, investors, partners and yourself -- that you are committed to building the business. 2. To establish business milestones. The business plan should clearly lay out the long-term milestones that are most important to the success of your business. To paraphrase Guy Kawasaki, a milestone is something significant enough to come home and tell your spouse about (without boring him or her to death). Would you tell your spouse that you tweaked the company brochure? Probably not. But you'd certainly share the news that you launched your new website or reached $1M in annual revenues. 3. To better understand your competition. Creating the business plan forces you to analyze the competition. All companies have competition in the form of either direct or indirect competitors, and it is critical to understand your company's competitive advantages. 4. To better understand your customer. Why do they buy when they buy? Why don’t they when they don't? An in-depth customer analysis is essential to an effective business plan and to a successful business. 5. To enunciate previously unstated assumptions. The process of actually writing the business plan helps to bring previously "hidden" assumptions to the foreground. By writing them down and assessing...
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...20 Reasons Why You Need a Business Plan Categories: * Business Planning 1. To prove that you’re serious about your business. A formal business plan is necessary to show all interested parties -- employees, investors, partners and yourself -- that you are committed to building the business. 2. To establish business milestones. The business plan should clearly lay out the long-term milestones that are most important to the success of your business. To paraphrase Guy Kawasaki, a milestone is something significant enough to come home and tell your spouse about (without boring him or her to death). Would you tell your spouse that you tweaked the company brochure? Probably not. But you'd certainly share the news that you launched your new website or reached $1M in annual revenues. 3. To better understand your competition. Creating the business plan forces you to analyze the competition. All companies have competition in the form of either direct or indirect competitors, and it is critical to understand your company's competitive advantages. 4. To better understand your customer. Why do they buy when they buy? Why don’t they when they don't? An in-depth customer analysis is essential to an effective business plan and to a successful business. 5. To enunciate previously unstated assumptions. The process of actually writing the business plan helps to bring previously "hidden" assumptions to the foreground. By writing them down and assessing them, you can test them and...
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...Strayer University Creating, Financing, and Marketing a business . 5/27/12 Partnerships have many benefits, but they also can be maintained very easily. You do not have to register with your state and pay fees, as you do to establish a corporation or a (LLC). And with a partnership, filing income tax returns is relatively easy. Unlike a regular corporation, there is no need to file separate tax returns for the corporate entity and its owners. Another advantage of partnerships is the flexibility they offer. In partnership agreements, the partners are free to set their responsibilities and benefits as they see fit or as the needs of the business. The structure of the organization and the distribution of profits and losses are much more flexible in a partnership than they are in a corporation. Because of this, an individual partner can be rewarded with higher profits for taking on more financial risk. Typically, with big corporations, they have money split evenly with stockholders. Partnerships are also considered a discrete asset and as such (as opposed to a sole proprietorship) can be transferred to other people, heirs, or estates if the partnership agreement is set up that way. But partnerships can also be risky. The business and personal related acts of one partner can legally bind all other partners. So it's very important that you enter into partnerships only with people you trust. It is equally essential that, no matter how much you trust your partners, you...
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...PLANNING FOR GROWTH: Kelly’s Sandwich Stop BMGT 110 (6981) – UMUC Final Project Professor S. Goyal Abstract Kelly has a well established lunch business and is ready to take the next logical step with her company, expansion. She will need to develop and implement a strategic addendum to her business plan, that will focus primarily on the growth of the company, in order to meet her range of goals. The proper business plan will entail more than just demonstrating how her revenue will grow by the numbers; Kelly’s growth strategy must attest to her capability to responsibly bring her food services to new customers and new markets, perhaps even introducing new products. Growth Strategy The first step that needs to be taken to in the organization and prioritization of Kelly’s growth strategy is for her to diagnose the health of her business. This preliminary step involves gathering the detailed information about each of Kelly’s four business divisions (finance, human resources, marketing, and operations), so that she is able to measure exactly how well the business is doing and pinpoint where changes will be needed. Kelly, preferably with an advisor, should scour through the business information, cash flow and income statements, balance sheets and statements of owner’s equity, analyzing her company SWOT (strengths weaknesses opportunities and threats) in order to better assess the company’s capabilities and expansion needs. The value of a SWOT analysis is two-fold, as not only does...
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...BOOTSTRAPPING FOR NEW VENTURES BOOTSTRAPPING FOR NEW VENTURES Antoinette Brown Metropolitan College of New York BOOTSTRAPPING FOR NEW VENTURES Abstract Bootstrapping, frequently regarded as a means to an end when there are no other options to finance a business. Entrepreneurs commonly use bootstrapping practices to help get new ventures up and running. For most small start ups, the process of securing financial backing is risky. When outside capital financing, venture capitalists, banks, and angel investors do not exist Bootstrapping is entrepreneurship in its purest form. It is the transformation of human capital into financial capital. The overwhelming majority of entrepreneurial companies financed through this “highly creative” process, which involves the use personal savings, credit-card debt, loans from friends and family, and formal sources of private equity (Freear, Sohl, and Wetzel, 1995). BOOTSTRAPPING FOR NEW VENTURES Bootstrapping Risks and Rewards When the investment banker says ‘NO’ the entrepreneur relies on himself or herself to raise capital by bootstrap financing. Bootstrappers have to be resourceful to a certain extent. The entrepreneur finds other creative ways to make-do or they do without. Bootstrappers consider strategies that can essentially reduce risks connected with their new ventures. By creating a business that make available products or services and needs little or no inventory, the entrepreneur can make the business more “boots...
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...Business Failures Why would my business fail? According to the textbook, there are 12 common reasons for the failure of new small businesses. This is not an inclusive, nor industry specific listing. Leadership Issues 1. Managerial incompetence 2. Lack of strategic planning 3. Lack of relevant experience 4. Inability to make the transition from corporate employee to entrepreneur Marketing and Sales Issues 1. Ineffective marketing 2. Uncontrolled growth 3. Overreliance on a single customer Financial Issues 1. Inadequate financing 2. Poor cash management 3. Too much overhead Systems and Facilities Issues 1. Poor location 2. Poor inventory control (Bovee & Thill, 2011) It is essential for any future entrepreneur to strategically plan the opening of a business. Strategically planning will help to ensure that your company has the tools and resources needed to be successful. Taking into consideration the reasons why most new businesses fail within the first year, it is essential to set the foundation for your company. Consider the following as a checklist of some of the factors that should be considered: What is your offering and market demand? (Write a business plan) What will be your pricing? Estimate how long it will take to make your first sale. Determine what your differentiators are. How will you market? Do you require any training? What are your financing options? Where will the business be located? What business structure...
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...ORGANIZATION & CULTURE FINANCE & ACCOUNTING MARKETING MANAGING TECHNOLOGY MARKETING STRATEGY & COMPETITION HUMAN RESOURCES MARKETING ORGANIZATION & CULTURE MANAGING TECHNOLOGY FINANCE & ACCOUNTING ORGANIZATION & CULTURE MARKETING STRATEGY & COMPETITION HUMAN RESOURCES MANAGING TECHNOLOGY FINANCE & ACCOUNTING ORGANIZATION & CULTURE MARKETING STRATEGY & COMPETITION HUMAN RESOURCES MANAGING TECHNOLOGY MARKETING STRATEGY & Honing Your HUMAN RESOURCES ORGANIZATION & CULTURE FINANCE & ACCOUNTING HUMAN RESOURCES COMPETITIONCompetitive Edge Finance Function in a Global Corporation The H 108 Harvard Business Review | by Mihir A. Desai HISTORICALLY, the finance functions in large U.S. and European firms have focused on cost control, operating budgets, and internal auditing. But as corporations go global, a world of finance opens up within them, presenting new opportunities and challenges for CFOs. Rather than simply make aggregate capital-structure and dividend decisions, for example, they also have to wrestle with the capital structure and profit repatriation policies of their companies’ subsidiaries. Capital budgeting decisions and valuation must reflect not only divisional differences but also the complications introduced by currency, tax, and country risks. Incentive systems need to measure and reward managers operating in various economic and financial settings. The existence of what amounts to internal markets for capital gives global corporations a powerful mechanism...
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...Capturing vs. Creating Value The way in which value is added to agricultural production can affect the potential for risk and reward. When evaluating value-added enterprises, it is important to recognize the difference between capturing value and creating value. production processes are generally well known and established through the link to traditional agricultural production. To illustrate: • An alliance of beef producers, backgrounding or retaining ownership, generally has knowledge of cattle feeding and the skills to background calves. Marketing Research -• Finding the Best Consultant to Hire Individual members of an ethanol or meatpacking Capturing value occurs through changes in distribution of value in the Food/fiber production chain. These changes are generally efforts to “capture” more of the consumer dollar. Direct marketing, vertical integration, producer alliances and cooperative efforts are often directed toward capturing more of the enduse value of farm production. Following are examples of capturing added value: • Beef producers who join an alliance to market back-grounded calves or retain ownership of animals in the feedlot. • Producers who form cooperatives to build meatpacking or ethanol plants. • Producers who package or market their production directly to consumers. Creating value occurs with actual or perceived value to a customer for a superior product or service. The objective is to create something that has value. New products...
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