Starting Your Own Business: Pretend That You Are Starting Yo
Starting Your Own Businesspretend That You Are Starting Your Very Own
Starting Your Own Businesspretend That You Are Starting Your Very Own
Starting Your Own Businesspretend That You Are Starting Your Very Own
Starting Your Own Business Pretend that you are starting your very own business. Before you start the business, you need to determine and write the requirements of operating a successful business. Please focus on the dollars as you apply concepts covered in the course so far. You are writing an essay that captures all of your initial thoughts and projections for a business that you will start up. Your essay should address everything in the six (6) sections outlined below.
An ESSAY TEMPLATE that includes the EXCEL WORKSHEET, is provided to support you in organizing your assignment. NOTE: A separate version of the worksheet is provided in the Course Resources if you would like to experiment with preparation of the Balance Sheet. Please access the ESSAY TEMPLATE here .
Paper For Above instruction
Section 1 – Introduction of Business
In this section, I will introduce the business I plan to start, detailing what products or services I intend to sell. I will explain the nature of the business, whether it is retail, service-oriented, or manufacturing. Additionally, I will discuss why this business interests me personally—highlighting my passion, market demand, or potential for growth. For example, I might start an eco-friendly clothing boutique, motivated by my interest in sustainability and fashion, or a tech consulting firm driven by my background in information technology.
Section 2 – Revenue & Profits
Here, I will explain how the business will generate income. I will project sales revenue for Year 1, detailing the expected number of units sold and pricing strategies. For instance, if I sell handmade candles at $15 each and expect to sell 2,000 units in the first year, my projected sales will be $30,000. I will then outline the anticipated expenses, including costs of materials, labor, rent, utilities, marketing, and other operational costs, projecting total Year 1 expenses. I will analyze the proportion of sales consumed by these expenses, expressing it as a fraction and percentage, such as 3/5 or 60%. Similarly, I will calculate projected profits, expressing the profit portion as a fraction and percentage of sales revenue.
Section 3 – Product Price & Costs
This section will focus on the specifics of product pricing and costs. I will specify the prices I plan to charge for each product or service—detailing the price point for items such as handmade candles ($15), and any additional services offered. I will break down the costs associated with each product, including raw materials, labor, packaging, and overheads. For example, if the cost to produce one candle is $5, I will explain my markup, both in percentage and dollar terms—say a 200% markup or a $10 profit per item. This analysis will demonstrate how I arrive at my pricing and profit margins, ensuring sustainability and competitiveness.
Section 4 – Investment Requirements
This section covers my financing plan, including banking and loan strategies. I will state which types of business accounts I will open—checking, savings, merchant services—and explain my banking requirements. Assuming I need a loan equivalent to my projected Year 1 expenses, I will describe the loan amount and detail repayment schedules over 10 years with 6% compound interest, as well as with 8% simple interest. I will analyze how the loan and interest payments impact my business cash flow and profit. Additionally, I will discuss how the investment in equipment, supplies, and inventory will be reflected on the balance sheet—either as assets or liabilities—and their depreciation or amortization over time.
Section 5 – Balance Sheet Assessment
I will prepare a projected Year 1 balance sheet, outlining my assets, liabilities, and equity. For assets, I will include cash, inventory, equipment, and receivables; for liabilities, I will list loans, accounts payable, and other debts. I will identify my greatest asset—perhaps inventory or equipment—and my greatest liability—likely the bank loan or payable accounts. The balance sheet will reflect my business’s financial position at Year 1’s end, providing insight into liquidity, leverage, and net worth.
Section 6 – Concluding Thoughts
In conclusion, I will summarize my business aspirations, concerns, and expectations based on my financial projections and strategic planning. I will reflect on the viability and potential growth of the business, discussing my confidence level, anticipated challenges, and contingency plans. This section will tie together my initial entrepreneurial vision with the practical financial considerations explored throughout the paper, laying out my hopes for success and areas where I may need to adapt.
References
- Barrow, C. W., & Menéndez, M. (2019). Small business management: Launching and growing entrepreneurial ventures. Routledge.
- Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship. McGraw-Hill Education.
- Scarborough, N. M., & Cornwall, J. R. (2019). Entrepreneurship and small business. Pearson.
- Blair, A. (2021). Business finance essentials. Harvard Business Review Press.
- Gartner, W. B. (1988). “Who is an Entrepreneur?” Entrepreneurship Theory and Practice, 12(2), 37-48.
- Reynolds, P. D., et al. (2002). Global Entrepreneurship Monitor: 2002 executive report. Babson College.
- Robb, A., & Robinson, K. (2014). “The Capital Structure Decisions of New Firms.” Journal of Business Venturing, 29(5), 562-586.
- Brush, C., et al. (2007). “Women entrepreneurs: Moving front and center: An overview of research and policy.” The Journal of Small Business Management, 45(4), 445-468.
- Shane, S., & Venkataraman, S. (2000). “The Promise of Entrepreneurship as a Field of Research.” Academy of Management Review, 25(1), 217-226.
- Zimmerer, T. W., Scarborough, N. M., & Wilson, K. (2018). Entrepreneurship: Successfully launching new ventures. Pearson.