Write a paper, using APA guidelines, based on the scenario below.
You want to start your own business. You found an investment group that is willing to give you the capital needed for the first year of your business, but only if you can convince them you have a solid plan for the success of this business. Your investor is very concerned with how the accounting functions of this business will be handled. You must persuade your investor to put up the capital by addressing the following questions in your business plan:
o What is the name of your business?
o What type of business structure is it (sole proprietorship, partnership, or corporation)? Why did you choose that structure?
o What type of services or products does your business provide?
o What role will accounting play in the start up of your business?
o What type of work characteristics will you look for when hiring your accounting staff?
o What education should a person have in budgeting, internal controls, and cash management before going into business?
o What kinds of internal controls will you put in place for the business?
o How will your managers use financial information to predict outcomes for your business?
The name of business is Pretty Planet Travel Agency.
I will choose corporation business structure for my business. A corporation is a business that is started through ownership shares popularly known as corporate stock. A corporation is regarded as a distinct legal entity that is separate from its owners. As such, the owners cannot be held personally accountable for the debts of the corporation (Legal Business Organizations, 2008). Pretty Planet Travel Agency will form in the State of Utah as a private, limited liability corporation. I suggest this business structure for my company because it has various advantages, which are as follow:
A corporation has the ability to accumulate large sums of funds with which the business can be operated and large amounts of capital goods can be purchased. It therefore helps in undertaking large scale production for the business. Risk is shared by all the shareholders of the company. The company is an artificial person who cannot be incapacitated by illness or death; thus it does not have an allotted span of life. The liability of the owners or the shareholders is limited (Legal Business Organizations, 2009). So, I will allocate the company stock in the following manner:
55% for the founder of Pretty Planet Travel Agency
Founder 1: 20%
Founder 2: 20%
Founder 3: 15%
Ownership of Investors will be 25%
Future employees' pool ownership will be 20%
The mission of Pretty Planet Travel Agency is to become synonymous of luxury traveling services. Pretty Planet journeys will serve its customers with luxury, comfort and escort travel packages. We will also serve to the customer with ...
The solution creates a business plan for a new travel agency and tour operator.