Types of Business Organisations.
Autor: Essays.club • June 19, 2017 • Case Study • 565 Words (3 Pages) • 1,176 Views
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
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