A business plan could give her a chance to step back

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Unformatted text preview: a corporation. Why would you establish an LLC instead of a corporation? That’s a tough legal question, not one we can answer here. In general, the LLC has to be missing two of the four characteristics of a corporation (limited liability, centralized management, continuity of life, and free transferability of ownership interest). Still, with the advisability and advantages varying from state to state, here again, this is a question to take to an attorney who has small business experience. CHAPTER 4: STARTING A BUSINESS 4.7 A Simpler Plan for Start-ups Don’t let me, this book, business-planning software, or any other source force you into doing more of a business plan than you need. A plan can help you move forward, make decisions, and make your business successful. Not every plan is the same, not every business needs the same level of detail. For a simple example, imagine a woman making jewelry at home and selling it at a local craft market on the weekend. A business plan could give her a chance to step back from the normal flow and look at ways to develop and improve the business. The planning process should help her understand her business. It should help her define what she wants from the business, understand what her customers want, and decide how to optimize her business on her own terms. She might benefit from developing a less detailed sales and expense forecast, maybe even a profit and loss, so she can plan how to use and develop her resources. She might not need to create detailed cash flow, balance sheet, and business ratios. A simple plan may be just what she needs to get going. Even at the early start-up stage your business plan is very important. The outline below illustrates the contents of a simpler business plan. For many smaller and start-up businesses, this plan outline can cover all the bases. Simpler Plan Outline Outline Topic 1.0 Table Executive Summary 1.1 Highlights Objectives 1.2 Chart Mission 1.3 Keys to Success 2.0 Company Summary 3.0 Product Description 4...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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