Sample Business Paper on Form an Entity

For this assignment, you will be preparing a small business plan for your entity discussing elements shown below. You will need to choose an entity for your freelance fashion business (i.e., Sole Proprietorship, Partnership, LLC, etc.) and give reasons why (based on advantages and disadvantages in this week’s assigned reading). Begin researching ideas for your business and post a description of it, including the form of ownership your new enterprise should take and the reasoning behind it. Be specific in regard to what the business does. You will need a bank loan to get started, and the bank will require a documented business plan before approving any loan. A business plan defines your business, goals, and objectives. It integrates functional, marketing, financial, manufacturing, and managerial plans. 1. Executive Summary – Provide an overall description, mission, goals, and objectives of the business (The who, what, when, where, why, and how are briefly answered here). This section should be an approximate one-page snapshot of what the overall business plan explains in detail. It will basically give an overview of what is mentioned in the sections below. Although mentioned first, it is typically the last section to be written. 2. Introduction – In this section, discuss the concept of your freelance fashion company, the entity type of choice, the management team and respective experience, and what products and services you are selling (in more detail than what was included in the executive summary above). Mention your product(s) and “why” it is special or different. 3. Marketing Strategy – The marketing strategy describes the market’s need for the item and the way the business will fulfill it. In this section, you will discuss demographics, trends, market penetration, and potential sales revenue. How will you sell—through a catalog, in a retail location, online, or perhaps a combination of all three? Competitor information is an important part of your marketing strategy. What companies are already selling products similar to yours? List your main competitor(s) and note what their strengths and weaknesses are. 4. Financing the Business – This may be one of the most important parts of your plan as investors and/or banks will want to focus on the size of your balance sheet and your expectations of future profits. The financing section demonstrates the cost of the product, operating expenses, expected sales revenue and profit, and the amount of the business owner’s personal funds that will be invested to get the business up and running. In addition, a banker or investor will want a pro forma balance sheet, which provides an estimate of what the business owns (assets), what it owes (liabilities), and what it is worth (owner\’s equity). They will also want to see projected sales, expenses, and net income for the next couple of years (preferably by quarter). Deliverables Prepare a paper (750–1,000 words) discussing each of the sections above in its own paragraph or section. The assignment must be completed in Microsoft Word and all sources should be cited in MLA format. The word count does not include the cover page or the works cited page.