As an entrepreneur, you want to start a business. You know that the first step i

Question

As an entrepreneur, you want to start a business. You know that the first step is to consider drafting a business plan proposal to organize all of your ideas. For this assignment, you will submit a business plan for your imaginary business. For research purposes, you can choose any state for the location of your business. You are creating your business based on biblical principles, which should be integrated throughout your plan. Your business plan must include the following: 1. Introduction of the proposed business; 2. Description and explanation of the type of business entity that is best for your business; 3. Description of the specific steps needed to be followed to successfully and legally start the business; 4. A draft of a valid contract with a vendor, supplier, customer, etc. that illustrates all elements of a contract and takes into consideration some of the topics discussed in the contract chapters

Explanation / Answer

In this case, western wear business is being selected that satisfy the requirement of the cowboy community associated with African American. The focus of the company will on providing accessories and western wear and target the premium and selected customers.

Since, the retail store comes in the specialized category and there is no competitor in the entire city till yet, therefore the target of the company is obtain atleast 70% of the market share and become shopping hub for the cowboy community that caters to the need to African-American.

Objectives

To earn profit margin of 50 percent in the initial year .To attain at least 1,000 customers till the end of first year .To ascertain net profit amounting to $75,000 in the initial two years and $100,000 by the end of third year. To remain vocal and active member for supporting the events associated with agriculture within the community.

Planning

1) Providing consumers with the high end personalized and specialized service.

2) Promotion and advertising of the products and the company in the areas where target customer resides so as to make them aware of the store

3) Review of inventory on continuous basis in order to adjust the level of inventory in an efficient arrangement.

Ownership

The company will be started as partnership between two partner’s viz. XYZ and another partner ABC. Who will be contributing the capital in the proportion of 60% and 40% respectively .Since, it is a start up and comprises of an entirely business idea of opening a store that caters to the need of the cowboy community, therefore, the risk will be more as no other venture similar to this exist in the city. Thus partnership is the best suited business entity for this business proposal as the risk will be divided and the loss will be shared amongst the partners in the venture.

Legal formalities for starting the business

Step 1 Preparing the plan for business

This step includes preparing a plan for the business which involves the type of business, the target market, objects, keys to success, ownership in the company, type of business entity.

Step 2 Ascertaining training and assistance for business

This step requires availing the counseling and training services for securing finance, preparing for the business plan, relocating a business and for the expansion purposes.

Step 3 selection of location for doing business

These steps require seeking advice pertaining to selection of the location which is customer friendly and adhere to all the laws applicable in that location.

Step 4 Arranging finance for the business

This step requires arranging fund for the business through venture capital, backed loans and various grants available for the purpose of research.

Step 5 identifying the type of business entity that best suits your business

This step requires determining the business entity or ownership suitable to the business that is partnership, sole proprietorship, S corporation, Limited liability Corporation.

Step 6 Registration of the name for the business

This step requires selecting an optimum name which is not same as one already existing and registers the same with the state government.

Step 7 Registration for the local and state taxes.

This step requires obtaining identification number for tax, registering for the disability and unemployment insurance, workers compensation.

Step 8 Obtaining permits and license for the business

This step requires obtaining list of local, state and federal license that are essential for conducting the business.

Contract

The valid contract with the supplier and vendors involves negotiating the terms and conditions underlying the contract with the parties involved which requires discussion on the equipment and cost, bidding, reporting, invoices, communication, verification of the insurance, providing acceptance after review. These factors are required to be taken into consideration and matched with the proposal of the vendor to identify if there exist any discrepancies underlying it. Then the negotiation is being done with the supplier or vendor.

Next step is make a contract which is signed by both the parties involved in the contract. This involves ascertaining sample contract from the finance / legal department. The next step is to substituting the conditions that are relevant with the project being undertaken and negotiated with supplier or vendor. Further the completer contract is being presented to the supplier or vendor for his approval. And lastly the order of purchase and the processes associated with invoicing is being established.

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