University:
California State University, Northridge
Course:
MKT 304 | Principles of Marketing
Academic year:

2009
Views:

86

Pages:

11
Author:

Warren Flores

The New Business Start-up Business Strategy Vision Mission Shared Values Leadership Influence Core Processes Organization Structure Conceptual Model of an Organization What is Mission? Mission versus Vision P A mission is the reason we exist P Sets boundaries based on shared core values What is Vision or New Business Concept? Vision versus Mission P Vivid dreams and hopes for the future P Compelling story of how your mission will be fulfilled P Clear, shared, compelling, contextual P Projection from values and mission Benefits of Vivid Vision Clear vision creates benefits: P Clear destination for planning P A team to carry out the vision P Motivation to sustain us in our work P Keeps us from distractions Who Develops the Business Concept in Existing Organizations? Leadership or Leadership? P Boards or Staff or Constituency P Team Vision < Enriches or Confuses? < If “they” don’t create it they still have to buy it What is the Business Plan? Specific Action Steps to Implement Vision P What is the detail ‘process of delivery’? P The how behind the product or service! P Key business strategy (s)? P Impacts on core processes Business Strategy Vision Mission Shared Values Leadership Influence Core Processes Organization Structure Conceptual model of an Organization Core Processes Support systems for Business Plan P Staff recruitment & training P Marketing and promotion P Evaluation and quality control systems P Fund development (non-profit only) P Plant operations < Maintenance/ Parking P Financial systems Business Strategy Vision Mission Shared Values Leadership Influence Core Processes Organization Structure Conceptual Model of an Organization Organizational Structure P Legal Forms of Business < Proprietorship/ Partnership/ Corporation P Organizational Design < Centralized Bureaucracy/ Decentralized < Team Driven Structure or Hierarchical Structure Sole Proprietorship Forms of Business P Not legally separated from the person who owns it < Tax implication – Personal income tax rate (1040/ Sched C) – http://www.moneychimp.com/features/tax_brackets.htm – Social Security Taxes (7.65 vs 15.3%) < Liability implication – Responsible for debts of the business – Responsible for judgements from negligence How to Create a Sole Proprietorship P Do it and you’ve done it (created your business) P Fictitious business name (county ) < Who needs to do it? < How to do it? P Business registration locally (taxation) < Who needs to do it and how? Partnership Forms of Business P Business with more than one owner and not a limited partnership (LLC) P General partners < All partners legally responsible < “agency authority” - any partner action binding P Limited partnership < At least one general partner and one limited partner < Limited partner – no management, gains liability protection Partnership Forms of Business P “Pass through entity” for taxation < Same as the proprietorship P Personal liability < Partnership members are one with the business P Partnership agreement < Specific legal agreement drafted < The Default: Revised Uniform Partnership Act (RUPA) Corporation - LLC Forms of Business P Limited Liability Corporation < Owners not personally responsible for LLC debts < Personal assets of owners protected < Negligent acts only limited protection < Fiduciary duty to act in interests of corporation < Taxed like a sole proprietorship or partnership < State fees and minimum taxes (CA - $800/yr) Corporations - C Corp Forms of Business - C Corporation P Limited personal responsibility P Benefits deductible within the corporation P Taxed as separate entity (Form 1120) < Double taxation < Rates (15-39%) P Dangers (if you do not act like a corporation) < Tax delinquency < Negligent or intentional acts < Breach of fiduciary duty Corporations - S Corp Forms of Business P Limited personal liability P Tax Implications < Taxation is flow through < Owners taxed at % of ownership P Fewer S Corps today due to rise in LLC The Decision on Business Structure Group Exercise P Identify the number of owners P Analyze risks. How much personal liability? P Taxation benefits P Stock structure benefits P Once you decide: file forms and agreements The business plan note: P List the form of the business (e.g. limited partnership) and provide a brief rationale for this selection. < Let’s me know you understand these discussions. P Real business plan: the rationale would only be listed if its relevant to the successful outcome/operation or the funding plan. Testing the Business Concept P Feasibility Study < Test the assumptions and projections of the plan < Multiple areas of concern: – Legal Structure/ Leadership/ Financing/ Market Ready P Key Issue is Marketability < Market research < Contract out or internal research < What are the market questions of your business concept?

The New Business Start-up

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