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A 5 Part Series on Business Plans: Part 2- The Organizational Plan

by David Huff on July 3, 2012

Business PlansWe have previously discussed the importance of every business having a good business plan. This plan is of particular importance if you, the business owner, are looking for any type of financing and/or investors.  The focus of the last blog was the summary and what information to include in the summary.
 Today we will focus on the second part of your plan which is the business concept, or the organizational plan.
Webster’s Dictionary defines concept as:
1: something conceived in the mind : thought, notion
2 : an abstract or generic idea generalized from particular instances
 Recall all  the reasons why you started your business in the first place and write these reasons down. What made you start your business- what “thought” crossed your mind and made you want to start this business?  Did you want to make more money?  Did you want job security?  Did you know that you would be able to do a better job than most of the other businesses out there?  Were you going to provide the service for a better price?  Did you want to eventually have more time to spend with family?
Which market did you want to service?  What products/services would you sell? Do you have any trademarks or copyrights pemding?
Why would your business have a competetive edge over all the other similar businesses in your area?
After you have your thoughts and ideas written down, it is time to keep all the relevant information and organize them into a plan. This is the place where you want to include everything about your business…start up date, personnel, owners,  the legal form of the business, mission statements, and models.

Include your company’s mission statement, which shows short-term and long-term goals. The business model should explain exactly what your business does and why people will want to use your business over someone else’s.  What advantage does your business have over its competition?  This is one of the most important questions to ask yourself about your business…what makes it better than everyone else’s?

Who are your owners and leaders?  Introduce them and state their qualifications for serving in that position, as well as their responsibilities. Include the number of employees you currently have and the number of hours they work and the wages they earn.  Do you have plans for any new hirings in the future?  What are their necessary qualifications?

Who will do your tax accounting and your day-to-day accounting?  Who is responsible for financial statements and the analysis of these statements?

Do you retain an attorney?  Who is it and why was that person chosen to represent in legal matters?

What types of indurance do you carry and how much does it cost?

Security- is this an issue for you?  Do you have an inventory and how is it protected? What is the cost for this protection?  What is the procedure if theft does occur?

In our next article, we will discuss the 3rd part of a good business plan… Marketing Plans.

Contact us for all your accounting needs.

 


David W Huff, CPA, PFS, MS is a partner at Person Huff CPA Group. He provides clients with tax preparation and consulting services, accounting services, retirement plan and benefit consulting, accounting software technical support and training, and management advisory services. His specialty is helping new businesses organize their operations to maximize tax savings and move quickly from start-up to profitability.  You can reach David by email at:david@personhuffcpa.com

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