Types of Business Organisations.

Types of business organisations.

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Types of Business organisations

Starting a business:

* Business idea

* Entrepreneurial skills

* Finance

* Human resources

* Fixed assets

* Suppliers

* Customers

* Marketing

* Legalities

Business plan: Sets out what a business proposes to do, how it plans to achieve this.

ASSETS

Business plan

* Is a report detailing how a new business sets out to achieve its aims and objective.

* Is a useful planning tool.

* The owner has to plan marketing, financial and human resources to the business.

* Can be used for stakeholders.

Include this!

* The business

* Name and address of the proposed business

* Type of business organization

* Vision, mission, aims and objectives

* Cost of premises and other start-up costs

* Details of the owners and past business experience.

The product

* Details of the good and service being offered

* Forecast level of demand with any supporting evidence showing why customers will pay for this product.

* How and where production will take place, equipment needed

* Details of the suppliers of resources such as raw materials or stocks.

* Cost of production

* Pricing strategies to be used

The market

* Size of the market, potential number of customers

* The nature of the market such as the customer profile and market segmentation

* Recent growth rate of the market and expected growth rates for the future

* Outline of direct and indirect competitors, including market shares and strengths and weakness.

Finance

* Proposed source of finance

* Break-even analysis to project the firm’s break-even level of sales.

* Steps to be taken to deal with cash flow problems

* Security that can be offered to lenders in case the borrower defaults on the loan.

* Cash flow forecast showing the projected earnings form sales and the expected monthly cash payments for the ongoing costs of the business.

* A projected P&L account showing the estimated profit or loss at the end of the first