Business Plan Part 4: Organizational Plan and Financial Plan

Let us begin by first identifying what the three of these forms are and what they mean to the process..The sole proprietorship is the one that catches the eye of our company Elite Productions presents. In this form of legal business the business itself has only one owner. This is listed as the most common of the four types of organizations compared to. In this form the owner and the business are considered as being un-breakable unless they both break… Elite productions presents will be considered the different name under my name that represents the business side of me…This also makes the owner responsible for all income and expenses that come thru the business and are included in the owner’s personal tax return... This can be a plus if and when the business takes a loss and the owner has the option of including such deductions to out-weigh the personal income generated… On the flip side of this the owner has to pay taxes on profits made in the name of the company…
When looking to obtain a Sole Proprietorship all one has to do is have their business license and move forward in beginning operations… Unlike the rest of the organizational requirements needed for the others, a sole proprietorship is easy to form and operate as well… When dealing with a competitive edge over other soul food restaurants and the way WE are looking to do thing; this would be the best fit for our company for the long haul…

When justifying my reasoning for selecting my legal form of operations I will begin by first stating the cost in obtaining such... In most cases there are NO legal forms that have to be filled out if any which cuts cost down unlike the others who have forms that have to be filed with a cost attached… Another cause and effect to my reasoning would be the fact that I have NO connections to anyone else’s lack of effort but my own... When the company makes money I must report such despite the simplicity in the matter and when we fail it’s important to do the same… The only disadvantage of this form is that in which it is defined. The business and owner are an unbreakable force…

A limited liability company is the newest form of business organization. This is available in 49 states to date which brings the aspects that are favorable in a corporation/ partnership. This is different from that of a sole proprietorship because it deals solely partnership that offers a liability of the corporation itself. Guess one would view it as that of an S corporation without the 35 shareholder limitations attached… If not for the newness of this and that new laws are being attached when and if they see fit so you will never know what’s next to come… If Not for the newness of such, this may be my choice of legal form for Elite productions presents. Then again without a partnership attached I may over-look this without wanting anyone attached to MY Company other than my staff…
As a Chief Executive and Executive Director of Elites Soul Food Restaurant and Bar one would be responsible for promoting the business from a Regional and local planning aspect within every department or their selected departments… They will have to also receive the proper training to not only speak the talk but also walk the walk… They will also be required to research the competition and what it will take to keep our company amongst the cream de la crème if not already there… With this in place the business may get slighted if all parties aren’t on the same page… On top of all that I feel more complete knowing such myself and knowing that in the same to assure that it’s being ran correctly and all measures are being reached… That being from a healthy aspect to that of an advertisement one…
Involving Community planning is another important piece to the puzzle… Knowing the taste buds required and the price needed in your environment is of importance when thinking your plan through… What do the people want and need? Yes they love the taste of Soul Food, but how can we meet the standards of our communities pockets and stomachs…
When figuring the cost of operating our Restaurant report I will have to first need to calculate the startup and operating cost for the business. The startup cost will incorporate things such as advertisement, equipment used and needed, insurance obtained, legal fees, licenses, remodeling if need be, deposits and other needed one-time fees attached… Making sure things like supplies, utilities, rent, wages, websites and things of such nature are incorporated as well makes way for dotting I’s and crossing your T’s. Also makes way for more worth and investments made in the company…. These things are all balanced in with the Net worth of the company and give an estimated number of what can be borrowed along with financing such worth… As a new business venture, having some match money would help for the 1st three weeks of operations and is needed….
The success of Elites Soul Food Restaurants financial planning will fall solely on the sort of financing programs I lean on…. There are many forms of Capital I could borrow from such as banks in which the smaller banks tend to lean in small owners side… Another form of raising the Capital would be raising such through the stock market or opting for tradeable things like debentures… These are the most common form of long term loans that companies can take out. They are normally the type loans that are repaid on fixed dates, but some are considered as being perpetual debentures or as defined as being irredeemable securities… Most debentures in the states are unsecured loans which meet the standards of them paying a fixed rate on their interest obtained… If my assets aren’t high than neither will be the loan given if based on such…
Once in the business, it is essential to know how much you need to sell before you cover all your costs. The formula to be employed is the Total Fixed Costs/(Price per Unit- Variable Cost per Unit)= Sales at Break Even Point…
Learned through my readings that RESPECT is a key source when it comes to funding in a new business venture… While some look to know where and what the money is being used for, others look to know where the company can go and how much their venture is RESPECTED… In this view investors may search for the nutricients in our food produced, health standards of such being met, and what our menu consist of…. Funding a safe and healthy food restaut=rant will be key in any investor making a push my way… Respect goes a long way along with jumping on board before the business take flight… Never good to look for investors after business is booming or deep in debt…

Another source of funding when being considered for such would be the companies recognition along with their Power set in place… Financers looking to invest monies into Restaurants are also looking to be recognized as having the good eye in the matter. Recognition plays a major role in the financers eyes because it shows his work and intuition as being sharp and fine when positive results are made… Gaining strong credibility amongst your peers makes sense to those sticking their necks on the line for our company. When Elite makes it so do the investors… This will also act as a guide and directory later down the line for others looking to invest and open up bigger and better doors for Elite…
There is also the Politcal side of the fence and the recognition gained on their end.. In their eyes they view it as them being the key investors in a well respected restaurant based on their financial backing. This will help them gain a advantage over their competition if the project is successful along with political allies obtained throughout the venture. When Governors and other political allies see the jobs created and added capital to the state, they will view me as that in the same… An important, well respected, healthy and hardy Restaurant with political power attached… This will also be implemented in the Advertisement and Marketing approach when the venture begins… Want a healthy, hardy, meal while sitting around with your politicians? Ask your questions at Elites Soul Food Restaurant where the politicians eat… Makes way for a great proposal…

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References http://highered.mcgrawill.com/sites/dl/free/0073525251/886181/stevenson11e_sample_ch02.pdf Hisrich, R., Peters, M., & Shepherd, D. (2010). Entrepreneurship: 2010 Custom Edition (8th ed.). New York, NY: McGraw Hill.