Creating, Financing, And Marketing A Business
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Identify the pros and cons of the partnership as a form of ownership.
One way to start a business is to create a partnership; a partnership is a strategic alliance or relationship between two or more people. Successful partnerships are often based on trust, equality, and mutual understanding and obligations. Also they have an idea to create a product for the business and contributing to the financial and operations of the business. “The simplicity and flexibility in creating a partnership may be one the main advantages of the partnership as a form of business. However, the disadvantages of the simplicity and flexibility must be carefully considered.” (Hanson, 1998) There are always pros and cons going into a partnership, the most beneficial advantage are the pass through tax treatment and of course simplicity and flexibility. Also they are less expensive and require less paper work. The disadvantages are principle liability and each partner is also liable for the debts incurred by the actions of the other partners. If a thorough partnership agreement is agreed upon it can be executed to make the partnership flexible and workable for all involved and help alleviate the tensions that may arise in a business partnership situation. (Hanson, 1998)
Discuss funding options for small businesses.
There are some things you need to consider when exploring funding options are your needs, long or short term and how quickly you want to repay back a loan. For me the easiest way to fund is to ask friends and family, use your credit cards. (Allen, 2012)
Also you could use equity in your home to borrow against, maybe some stocks or bonds you can cash out, IRAs, and CDs are also some options you can use to fund a small business. There is always going to the Small Business Administration for help, they do assist entrepreneurs with securing financing. When SBA backs you for a loan, lenders risks are diminished and they are willing to work with you. If all fails my opinion and what I would do is go talk to a financial advisor and see if they can help and find some investors.
Determine and discuss how managerial accounting can help managers with product costing, incremental analysis, and budgeting.
One way to keep a business going and on track is to make sure you have managers. One thing that managers do is “Managerial Accounting”, its reports on cost of organizations products and services. Also is identifying, measuring, analyzing and communicating information for the organizations goals. This is also referred to as cost accounting. Managerial accounting includes things like cost of the product, cost of shipping, cost of employee benefits, cost of turnover, basically every number available to a company. Each manager can use the data to do their job better. Human resources can use the cost of turnover and benefits to determine their budgets, and provide better pride in work or even higher wages so they can prevent turnover. The goal is to look for all deviations variances. Other managerial accounting includes reporting revenues, sales logs, stocking and other statistics that will determine the overall profitability of the business. (Horngren and Foster, 1987) (Kaplan and Atkinson, 1989)
Discuss the basic components of the marketing process using a product or service of your choice as an example.
Im going to take you through a marketing process using the components such as marketing strategies and business goals to purpose a nursery. My personal goals would be putting in every moment I can a month, that means for me is 60-70 hours a week for advertising, marketing and helping setting up operation so that