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Management

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A Sole Proprietorships’ Project Plan
Lorrie Fontanilla
American Intercontinental University
Nicole Anderson Harris
MGMT240-1201A-04

Abstract
This paper demonstrates a sole proprietorship in the service sector and its related concerns associated with it. In addition the report also provides a convenient budget. Furthermore, a definitive timeframe for the project plan, an explanation on communication and the organization’s deliverables. Effective listening and responses and effective group communication will also be described.

Project Plan Why prepare a business plan? It depends on the type of business, the size, and structure of the entity. Focusing on a sole proprietorship and its issues evolves into creating a project plan that will include various phases of the business. When designing a project plan one needs to formulate a strategic design of easily acquiring the one common purpose, generating profits. The interim contentions, methodologies, indifferences, time differences and dynamics in general, will be covered in the system as well. In a sole proprietorship the manager or owner draws up the plan. A plan is not something that is developed suddenly and then forgotten. Dynamic organization is a core part of your business large or small. Planning is a very intense part of the process, it includes; evaluating the situation, creating a mission, getting prepared, setting your objectives, setting up timelines, dependencies, exercising the plan, and then monitoring the system.
Several issues that are inherent of a sole proprietorship are the financial risks and limitations. (Truex, n.d.) There are no dissimilarities legally between an owner and a business in a sole proprietorship association. Generally sole proprietors may encounter difficulties in obtaining investors, bank loans, suppliers, etc. Sole proprietors have no financial backing. Investors in particular tend to be apprehensive when dealing with entities of that nature. Financial institutions rely heavily on collateral as backing from any structure that attempts to obtain a loan. The individual or sole proprietor does not possess a sizable amount of resources compared to a corporation or an LLC, therefore making it difficult to obtain a loan or other funding resources Another issue is the lack of knowledge in some areas of the business. A sole proprietor is so closely tied to all aspects for example; accounting, purchasing, and marketing, and so on. Although the owner might have experience in the product or service, they might lack expertise in accounting or marketing. Sole proprietors are not able to sell shares or stocks to generate money. In addition, they do not obtain the status as other entities do. (Truex, n.d.) An explanation of developing a definite plan is provided which encompasses an overview of the organization internally and externally. However you create your project, you'll need to install product or service information, who you can actually sell it to, and how you can contact these people, who your rivals are and how they conduct operations, what your business will cost to operate, and how much profits will be generated. (Marzec, n.d.)
A description of your service should be provided. This section should be labeled “Market Opportunity”. The sole ownership will provide bookkeeping services which will be sensibly charged. The target market would be small businesses. Explain how the service works and indicate what you will not do. Respectively, setting up your business on the computer, accounts payables, accounts receivables, bank reconciliations, and financial statement reporting. What the service does not offer is business tax preparation. (Marzec, n.d.)
Identify your segmented target market, the size, the potential for growth, demographics, and so on. Initiate a survey on their purchasing behavior, how would they learn about the services. This is the marketing section. Recognize exactly who they are. Study your competition. Every business is intrinsic of opposition, Determine what your competitors fees are, what their costs are, who their target market is, and how they promote their business. Describe why your business is uniquely engaging to consumers, for example describe your service or product differentiation, sell satisfaction, launch a marketing campaign for the bookkeeping service, and add a personal touch to it. Calculate your expenses, earnings and profits. Most sole proprietors underestimate expenses and over estimate how many customers may purchase their services. Calculate not only the expenses of making your products, but also overhead costs such as business insurance, legal and filing fees, taxes, and marketing. Then establish how many customers you think will actually purchase your services, what will the purchasing standard be, and how quickly will they pay you. After gauging that, apply your net terms on services. Consider 1/10th of that as income. Then figure out the time frame of how long it will take to reach that number, because on the first day of business, you will not have all of your clients. Also evaluate how much of your service you need to sell before you break even. Ensure you have sufficient resources to cover all expenditures before that breakeven point. (Marzec, n.d.)
However; several objectives that a sole proprietorship or a corporation must consider are sufficient profits, acquiring loans, expanding the customer base. In addition to the business aspirations, there are also project aspirations which must be implemented. In this instance, the project aspirations and objectives include redefining and purifying the project after it has been exercised. Learn from the past, look to the future. After these points are factored in, the forecast or budget of the company is developed. The anticipated sole ownerships entire expenditures will be estimated at $20,000 whereas the owner will advance $1, 000 from his capital for start up costs. The business will procure hardware at $10,000, materials at $1,300, operating funds, $8,700. An amount of $19,000 will be expected after the owner’s assets are subtracted. Below is a budget in simple list format.
Equipment $10,000
Material $1,300
Operating funds $8,700 LESS: Owner’s Investment ($1,000)
Total: $19,000 The amount (five percent) will be invested by the owner. The owner will seek out funding resources for the balance. The exchange of ideas within an organization is considered as a group’s security. A communication system is only as valuable as its capacity to convey the message, according to the educational resource Management Study Guide. By developing transparent communication channels that are comprehended and maintained by the entire company, you can substantially extend the successfulness of your company's interactions. According to Entrepreneur.com,” in order for a message to be successful it needs to be complete. While it is important to keep your message succinct, you also need to ensure that all relevant information is included every time you interact. Prepare to have a conversation with someone by studying the topics of the project goal at hand. This will allow you to be able to represent all of the information needed to get a resolution and it also assists in defining a contingency plan for unforeseen circumstances or risks. Successful communication is conveyed through the right intermediaries. Topics of the plan should be written out and articulated explicitly it should be done in person in front of the interested parties. Discussing the details of a contract in person without failing to use written support indicates that the data may be misplaced or forgotten. Choosing the correct interaction mechanism has an impact on the successfulness of communication. (Anderson, n.d.)
Effective listening and commenting go hand in hand with effective communication. It is a measure of conversing particularly when the project team or outside resources are informed on the tasks they are assigned to perform within the sole ownership. Successful group interaction is also an enviable aspect since it will evolve to innovation, thus, enhancing the opportunities that the sole owner will benefit from. Developing and adhering to a timetable for every event is established as a successful process of planning. Within a plan a definitive timeline is believed suitable for planning and allowing the needed time allotted for executing each event accessible in the project. (sample project timeline, n.d).

TIME LINE | EVENT | June | Acquiring a business loan from funding resources. | July | Launching the operation | August | Assigning tasks and duties | September | Obtaining a list of accessible reserves | October | Evaluating the value of the outcome of the project at any milestone. |

(Edraw, n.d.) Another chart or aid that a business owner could use is the SWOT analysis matrix. At the planning stages an owner can identify its strengths, weaknesses, opportunities and threats of her business. A strength would be competitive pricing and low overhead. A weakness would be the lack of financial support, an opportunity could be cornering the targeted market, and a threat would be the cut throat competition and their elaborate marketing schemes. A chart like such can accommodate an owner respectively to improve on its frailties and pressures as well as expand its opportunities and enforce its strengths. A pert or Gantt chart would also benefit the owner by indicating time deadlines and performances, below is a Gantt chart that one can build on as the project progresses.

Basically it tracks the duration of a project, the number of days remaining, tasks and sub tasks, start and end dates and days to complete. (Gantt Chart Template for Excel, n.d.) The vital elements that a project manager or a sole proprietor has to implement into a project plan are scope, time, cost quality and risk. From those aspects you begin to build your project plan. A project manager or an owner must be flexible with time, cost, and scope. If an owner utilizes these strategies and determines priority amongst them. Then reaching project objectives will become successful.

References
Anderson, A. (n.d.) Factors of Effective Communication. Retrieved from. http://smallbusiness.chron.com
Edraw. (n.d.) Retrieved from. www.edraw.com
Gantt Chart Template for Excel. (n.d.) Retrieved from. http://www.vertex42.com/ExcelTemplates/excel-gantt-chart.html
Marzec, E. (n.d.) How to Make a Business Plan for a Sole Proprietorship. Retrieved from. http://www.ehow.com
Sample project timeline, (n.d). Retrieved on September 9, 2011, from http://www.templeton.org/pdfs/submitting_a_proposal/ProjectTimelines.pdf
Truex, L. (n.d.) The Disadvantages of a Sole Proprietor in Business. Retrieved from. http://smallbusiness.chron.com

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