As an entrepreneur, you want to start a business. You know that the first step is to consider drafting a business plan to organize all of your ideas. For this assignment, you will be submitting a business plan for your imaginary business. For research purposes, you can choose any state for the location of your business. Your business plan should include the following:
Introduction of the proposed business/executive summary
The executive summary is often considered the most important section of a business plan. This section briefly tells your reader where your company is, where you want to take it, and why your business idea will be successful. If you are seeking financing, the executive summary is also your first opportunity to attract a potential investor’s interest.
The executive summary should highlight the strengths of your overall plan and therefore be the last section you write. However, it appears first in your business plan.
Identify and describe the type of business entity that is best for your business.
Examples may include: partnership, limited liability company, corporation, etc. (For purposes of this assignment, you should NOT choose a sole proprietorship for your business entity.)
Defend your choice of business entity (this may include advantages/disadvantages of the selected type of business entity based on your business concept).
Describe the specific legal steps needed to be followed to successfully start the business.
Note: Steps will vary, depending on the type of business you choose and state you are located in.
Good sources of research for this area include the following:
Information on the business formation process can be found at: (Links to an external site.). The Small Business Administration website will be helpful; it includes information on how to start a small business.
Recommend and describe an appropriate written agreement for the particular type of entity chosen.
Examples: Articles of incorporation, articles of organization, partnership agreement, etc.
A draft of a valid contract with a vendor, supplier, customer, etc. that illustrates all elements of a contract and takes into consideration some of the topics discussed in Modules 6 and 7
Explain potential ethical considerations for your business, including any social responsibility plans or attitudes that your business will embrace.
Describe a possible disagreement that could be encountered among the partners or investors and shareholders. Recommend potential resolutions (referring back to the formal documents, such as the articles of incorporation or the partnership agreement).
Examples could include the introduction of a new product line, borrowing money for expansion, an advertising campaign, etc.
Determine how the business would be terminated if the disagreement between the board of directors, shareholders, or partners could not be resolved.