1. Dr. Daisy Dogwell has her own veterinary clinic, PetsRUs, Inc. She is 57 year
ID: 2626135 • Letter: 1
Question
1. Dr. Daisy Dogwell has her own veterinary clinic, PetsRUs, Inc. She is 57 years old and has never set up a qualified plan. Dr. Dogwell has 3 younger employees she would like to include in the plan, but her clinic is small and she cannot afford to pay her helpers very much. She can only afford to save 20% of her $100,000 salary. What type of plan would you advise Dr. Dogwell to adopt and why?
2. Annabelle Adams has a small business that has a steady cash flow, young well-paid key employees, and a low turnover rate. Annabelle wants to adopt a plan that has predictable costs, clearly stated contributions, is simple to administer, and easily communicated to employees. What kind of plan would you advise Annabelle to adopt and why?
Explanation / Answer
1)
ans)
For Dr. Daisy Dogwell Individual 401K Plans is the best plan.
Individual 401K Plans: The maximum amount that you can contribute, tax-free, per year to a solo 401K plan is $44,000. If, however, you are over the age of 50, that number goes up by five thousand dollars. If you want to be able to stash quite a bit in your retirement plan without paying taxes on it, this is probably the best way to go, as with the high contribution limits, you could be ready for retirement sooner than you think.
2)
ans)
Developing a Strategic Plan for Annabelle Adams:-
Mission Statement
The first step in the strategic planning process is an assessment of the market. Businesses depend on consumers for their existence. If you are facing a rapidly growing consumer base, you probably will plan differently than if your clientele is stable or shrinking. If you are lucky enough to be in a business where brand loyalty still prevails, you may take risks that others cannot afford to take. Before you begin to assess the market, it is important that you complete a careful assessment of your own business and its goals.
Your Firm's Philosophy
Once you have defined your mission statement, the next step is to define the firm's basic philosophy. Such a statement will help explain to your employees and associates how you would like to see the firm operate. Are you a risk taker, or would you prefer to build your business slowly from a solid base? How will you relate to customers, suppliers and competitors? What type of community involvement do you plan for your business, e.g., participation in recycling and volunteer activities?
Your Firm's Goals
The next step is to set clear goals to guide and maintain the business on a path consistent with its mission.
goals serve to:
Finalizing a Plan
When you have a clear grasp of the competitors, customers, suppliers and situations you face, and you combine this with a realistic understanding of your own strengths and weaknesses, you can develop a strategic plan with a strong chance of success. You may decide that you have the strengths to compete with other businesses "head-to-head" in their best markets. You may choose to target a market that has not been touched by your competitors.
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