Business Plan

1.     Final Project: Business Plan

You want to start your own business. You found an investment group that is willing to give you the capital needed for the first year of your business, but only if you can convince them you have a solid plan for the success of this business. Your investor is very concerned with how the accounting functions of this business will be handled.

·         Write a 700- to 1,050-word paper based on the scenario above.

·         Persuade your investor to put up the capital by addressing the following questions in your business plan:

• What is the name of your business?
• What type of business structure is it—sole proprietorship, partnership, or corporation? Why did you choose that structure?
• What type of services or products does your business provide?
• What role will accounting play in the start up of your business?
• What type of work characteristics will you look for when hiring your accounting staff?
• What education should a person have in budgeting, internal controls, and cash management before going into business?
• What kinds of internal controls will you put in place for the business?
• How will your managers use financial information to predict outcomes for your business?

·         Format your paper according to APA standards.

·         Post your paper as an attachment(224).

               The name of my business is “Lily’s Books and More”.   Adding the “and more” to my business name now will allow me to expand into other merchandise at a later date without having to go through the expense of a name change.  This will save me money down the line when I am ready to expand.  Adding the merchandise I sell into the name will allow individuals to locate me and what I sell easier because there is no question of what I sell when you hear the business name. 

            I have decided to make my business a partnership because the individual I have picked to be my business partner is smart, creative and has a good head for business.  She will be a great asset to my business, now and in the future.  It will also make it easier to manage the business if we split the responsibilities between us in order to best utilize our capabilities; she will be responsible for the overall managing of the business.  I will handle all the accounting for the business.  There is also a better chance of success if we both pool our assets and resources into creating this new business together.

            The services my business will be providing is the buying and selling of books, magazines, and the like. Offering buying opportunities with my shop will expand the number of individuals who visit my store and keep current individuals coming back again and again.  This will also allow me to carry a used books section dedicated to the books I will be buying from my customers.  This will allow me to bring in individuals who may not or can not spend the price of a new book.  This will also be appealing to the individuals who may only want to buy a book to read but not to keep.  They can return the books for store credit or cash.  Offering store credit will make people more inclined to buy books from my store instead of going to another book store to find what they want.

            Accounting will play a major role in the start up of our business.  I will use my accounting knowledge to budget our money to determine how much we can spend for rental space, utilities, and inventory.  With these budgets I will be able to determine how big a space I can afford, how much inventory I can buy, whether I can hire employee, and what kind of utilities I can afford to pay.    

            The work characteristics I will look for when hiring my accounting staff are reliability, trustworthiness, and good with numbers.  They must have at least a working knowledge of basic accounting.  I would prefer an employee with previous experience; and a college degree will definitely be preferable.  I will perform a background check and drug test on any potential employee before being hired.  All new employees responsible for any monetary or accounting duties will be monitored for a period of time in order to prove their reliability and trustworthiness.

            I believe anyone going into business for themselves should know, understand, and be capable of using all of the basic accounting skills, especially budgeting, internal controls, and cash management.   Because of this reason I have gone back to college for an accounting degree in order to better understand what is involved with running and maintaining a business from an accounting point of view.  My associate’s degree will help me manage and maintain the accounting side of the business more effectively and accurately.

            The internal controls I use will be locked file cabinets for all sensitive data, such as employee personal files or prospective new hire applications.  I will have a safe for all accounting books and files.  All money taking in during business hours will be night deposited at the bank by a trusted employee.  Combination locks or key locks will only be held by trusted employees that have been through a thorough background check.

            The financial reports that my accounting department puts together will help the managers determine how successful the business is and will be in the future.  They will be able to tell any patterns in income and outgoing in order to best predict when large purchases or expansions will be beneficial.   

No references used in preparation of this assignment.