Answer questions for part 2 of business plan by following part 1 of business plan will be linked below
1. In choosing a form of business ownership, the key issues are control, transfer of ownership, taxation, liability, access to capital, division of profits, and how easily the business can be started and closed. Given these considerations, will your startup be a sole proprietorship, partnership, corporation, or limited liability company (LLC)? Write a few sentences about your decision and the main reasons it makes sense for your new business. Think ahead to your “exit strategy,” meaning having someone else take over the business in the future or taking the business public after it has grown to a significant size. Would you need a different form of business ownership for your exit strategy? Write your answer in a sentence or two.
2. List a few of the major expenses involved in the startup of your business and the main expenses you expect to face as the business continues (equipment, inventory, etc.). Based on your answer to Question 1 and your list of expenses, which sources of funding, in general, do you anticipate using as you begin your business? Will the same sources be available or appropriate later, as your company grows? Write a couple of sentences about funding your startup in the context of the form of ownership you plan to use.
3. Have you looked into becoming a franchisee? Explain whether franchising would be a good possibility for your startup, and why. Are there any disadvantages to franchising, given your strengths, interests, motivation, financial situation, and industry? Would being a franchisee enable you to better meet customers’ needs or compete more effectively in your chosen industry? Would it affect your access to capital and credit? What changes would you have to make to your business plan if you choose franchising? Write a few sentences about the possibility of franchising. If you decide your business will be a franchise, revise your business plan to reflect that decision.
4. What entrepreneurial characteristics and personal factors are important to your success in this startup business? Also consider your motivation and the industry in which you will be operating. Summarize, in a few sentences, why you believe you will be a successful entrepreneur, and how you are suited to the industry you’ve chosen.
5. Review your answers to Part 1 as you write two or three sentences about what your business will offer. What product (good or service) do you plan to market? Who will your customers be, and how will your product satisfy their needs? What are the current trends in the industry? Are businesses entering or leaving the industry? Are businesses in this industry generally struggling or profitable? Write a few sentences about the company and the industry, and how your business might prosper as a startup in this situation.
6. Before you’d go into business with any partner, you’d carefully investigate the company, right? So put yourself into the shoes of a potential partner evaluating your startup. Look over what you’ve written in Parts 1 and 2. Then list at least two new questions you would ask about this startup before agreeing to become a partner. For example, you might focus on some aspect of the industry, competitive or economic challenges, the form of ownership, or the entrepreneur’s ability to succeed in this business. As a potential partner, would you have confidence in the future of this business? How would you strengthen the business plan? Explain your questions and answers here.
