Write a 1-2 paragraph summary of what you learned from each of the Kaplan and Warren chapters below and how you might apply this information in your future efforts as an entrepreneur in design:
Writing the Winning Business Plan – This chapter was valuable because it gave a good guideline on how to conceptualize a business plan and all the elements that go with it. Based on a framework the plan should take into consideration financial requirements and paybacks. Also the chapter teaches about different sections in the business plan such as the marketing section which explains the growth potential and sources of demand. The marketing and sales strategy section teaches how the marketing plan will be applied to get sales. The chapter also outlines operations, management, and financial sections, which are all valuable and sometimes overlooked aspects on how to set up a successful entrepreneurial venture.” – GA
Setting Up the Company – When you want to set up a company you should decide about the potential size of the business. There are several legal form of business including Sole Proprietorship, C-Corporation, S-Corporation, Partnership, and Limited Liability Corporation (LLC). The form should be determined based on short- and long-term needs. A Sole Proprietorship has a single owner and only requires local business licenses to open. It is Simple to create. It has Low start up fees and there is no special legal restrictions but it has unlimited personal liability, limited access to capital, lack of continuity for the business. “C” Corporation which separate legal and tax entity from owners. C corps. Has Limited liability, some tax benefits, Ease of transferability of interests. On the other hand it has Double taxation at the personal and corporate level once profitable, high administration compliance costs, Directors are held personally accountable. In registering a “c” corporation, you should register the name with a state, decide on the location of the company’s principal office, obtain a federal employer id number, and open a bank account with the id number and acquire a corporation seal…” – AM
