Venture Screening

Topics: Business law, Corporation, Legal entities Pages: 6 (1390 words) Published: August 30, 2014

Venture Screening Debra Maddox BUS 604
The business plan is a written proposal that identifies the intended company, analyzes the business situation, lists planned operations, and projects financial data. It puts your business ideas into written form. Planning is critical to a successful business. Types of plans vary according to the needs of the business. For example, plans may be long-term and/or short-term; simple or complex; detailed or general; lengthy or brief. The specific needs of the business should include: purpose and objectives; expansion or curtailment strategies under consideration; possible new products; financing needs; and identification of problems and potential solutions. The primary purpose of business planning is to ensure profitability. Planning helps you determine the purpose of the business. It also helps you know where you are, where you want to go, and how to get there. A plan gives you a path to follow as you seek your goals. It provides details for potential lenders to examine. Lenders must gain insight into your situation before deciding whether or not to lend you money. The business plan serves as a communication tool to consultants, advisers, investors, future employees and suppliers who need to learn about your operation and objective. Collecting data causes you to discuss your proposed business with specialists in your field of interest. Banks and other lending institutions vary in their business requirements. Lenders are taking a risk when they lend money to a new business. Therefore, the plan must convince them that your business has the potential of a making a profit, enabling you to repay the borrowed money. Business Plan Outline:

Business Name
Business Owner
Date of Preparation
Types of Business
Goods and/or services
Sources of information
Primary sources
Secondary sources
Analysis of Business Situation
Trading-Area analysis
Market-Segment Analysis
Analysis of Location
Planned Operation
Proposed Services
Proposed Products
Proposed Marketing Strategies
Planning Financing
Income and Expenses
Capital Needs

Being able to have a small business that is important to the community is the ultimate goal for my company. Providing lost cost party and wedding planning is goal of Dee’s Supreme Planning. Deciding on the best business form out of sole proprietorship, partnership, “C” corporation, and “S” corporation are the first step in building a lucrative company. Once the business organization has been decided, we have to decide on the best financial statement associated with the business. Understanding the business forms such as tax implications, legal implications and accounting implications will provide clarity during the filing for taxes. There are several advantages and disadvantages to sole proprietorship, partnership, “C” corporation and “S” corporation. A sole proprietorship is one person alone. He or she will have unlimited liability for all debts of the business, and the income or loss from the business will be reported on his or her personal income tax return along with all other income and expense he or she normally reports (although it will be on a separate schedule). Although proprietorship avoids the expense of forming a partnership or corporation, many start businesses this way because they are unfamiliar with the other forms of organizations (Business Organization, 2011). All profits and can be re-invested in the business or it can be used by the owner and negative aspect is Owner has full liability for entire...

References: Barringer, B.R., & Ireland, D.R. (2010). Entrepreneurship: Successfully launching new ventures
(3rd ed.)
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