|NATURE OF BUSINESS|
- Involve those connected to your business. Even if you are a sole proprietor, it helps to get at least one other person's ideas for your mission statement. Other people can help you see strengths and weaknesses that you might overlook. If you have no partners or investors to include, consider knowledgeable family members and close friends, employees or accountants. Be sure, however, to pick only positive, supportive people who truly want to see you succeed.
- Set aside several hours- a full day, if possible to work on your statement.Mission statements are short--typically more than one sentence but rarely exceeding a page. Still, writing one is not a short process. It takes time to come up with language that simultaneously describes an organization's heart and soul and serves as an inspirational beacon to everyone involved in the business.
- Plan a date. Set aside time to meet with people who'll be helping you. Write a list of topics to discuss or think about. Find a quiet, comfortable place away from phones and interruptions.
- Be prepared. If you have several people involved, be equipped with refreshments, extra lists of topics, paper and pencils. Because not everyone understand what a mission statement is about, explain its meaning and purpose before you begin.
- Brainstorm. Consider every idea, no matter how silly it sounds. Stimulate ideas by looking at sample mission statements and thinking about or discussing the questions in the previous section. If you're working with a group, use a flip chart to record responses so everyone can see them. Once you've finished brainstorming, ask everyone to write individual mission statements for your business. Read the statement, select the best bits and pieces, and fit them together.
- Use "radiant words." Once you have the basic idea in writing, polish the language of your mission statement. "Every word counts," says Abrams. The statement should create dynamic, visual images and inspire action. Use offbeat, colorful verbs and adjectives to spice up your statements. Don't hesitate to drop in words like "kaleidoscope," "sizzle," "cheer," "outrageous" and "marvel" to add zest. If you want customers to boast about your goods and services, say so--along with the reasons why. Some businesses include a glossary that defines the terms used in the statement.
- Quantitative: The business objectives should be expressed in terms of numbers. It should not be expressed vaguely like, "Our sales should go up!"
- Time-frame specific: Time frames should be specified in the business objectives. This helps you to understand where you stand with respect to the completion of the current objective.
- Flexible: It is very important that your business objectives are adaptable to change. If the situation in which the business is working changes, the business objectives should change to reflect these changes.
- Understandable: The business objectives should be made in an understandable way. This helps in communicating your objectives to your investors, employees, partners etc. Without this communication of business objectives, it becomes very difficult to reach them.
- Realistic: It is important that the business objectives are realistic, or you may end up disappointing your investors and yourself.
- This form of business is cheap, easy to set up, with minimal documentation and paperwork.
- There are much fewer guidelines and formalities wherein there is no requirement to appoint auditors, company secretary or tax agents.
- You do not need to disclose your financial statements to the general public.
- Relatively easy to change your legal structure if the business grows, or if you wish to wind things up.
- Unlimited liability which means all your personal assets is at risk if things go wrong.
- Little opportunity for tax planning - you can't split business profits or losses made with family members and you are personally liable to pay tax on all the income derived.
- All profits or losses are shared equally.
- Partners are not eligible for interest on their capital injected into the partnership.
- All partners are entitled to take part in managing the business.
- Partners are not eligible for salary.
- Loans or advances by partners to the business will carry an interest at the rate of 8% per year.
- Most decisions require majority of the partners. However, change of nature of business requires consent by all partners.
- There must be expressed agreement when a partner is required to leave the partnership.
- All existing partners must give consent if they want to introduce new partners into the business.
- Accounts and books must be kept at the principal place of business and be made available to all partners. All partners are allowed to keep a copy of the accounts.
- Simple and inexpensive to set up.
- Minimal reporting requirements.
- Shared management/staffing responsibilities.
- More opportunities for tax planning (such as income splitting between family members) than that of a sole trader.
- A partner's share of the business's tax losses may be offset against other personal income, subject to certain conditions.
- Combined skills, experience and knowledge can provide a better product/service.
- Relatively easy to dissolve or exit and recover your share.
- Access to capital.
- Partners are not employees. Superannuation contributions and workers' compensation insurance are not payable on partners’ profits or drawings.
- Potential for disputes over profit sharing, administrative control and business direction.
- Joint and several liabilities of partners. This means that each partner is fully responsible for debts and liabilities incurred by other partners - with or without their knowledge.
- Changes of ownership can be difficult and generally require a new partnership to be established.
Private Limited Company
- The company's financial affairs will be accessible by the public.
- Compliance with the Companies Act, 1965. Although complying itself is not a disadvantage, the amount of effort required to comply with the Act is much more than a sole proprietor/partnership.
- The company had to perform annual audits on its financial statements.
- At least one company secretary is required to manage its statutory submissions and returns as well as attending and preparing minutes for board and shareholders' meetings.
- Incorporation cost is high, and there are yearly recurring fees to be paid such as audit, accounting, company secretarial and tax fees.
- Reduced liability - especially if corporate trustee.
- Asset protection.
- Flexibility of asset and income distribution.
- Can be expensive and complex to establish and administer.
- Difficult to dissolve, dismantle, or make changes once established particularly where children are involved.
- Any profits retained to reinvest into the business, will incur penalty tax rates.
- Cannot distribute losses, only profits.
|SOURCE OF FUNDS|
How much money do you need
- Cost of sales: Product inventory, raw materials, manufacturing equipment, shipping, packaging, shipping insurance, warehousing
- Professional fees: Setting up a legal structure for your business , trademarks, copyrights, patents, drafting partnership and non-disclosure agreements, attorney fees for ongoing consultation, retaining an accountant
- Technology costs: Computer hardware, computer software, printers, cell phones, PDAs, website development and maintenance, high-speed internet access, servers, security measures, IT consulting
- Administrative costs: Various types of business insurance, office supplies, licenses and permits, express shipping and postage, product packaging, parking, rent, utilities, phones, copier, fax machine, desks, chairs, filing cabinets – anything else you need to have on a daily basis to operate a business
- Sales and marketing costs: Printing of stationery, marketing materials, advertising, public relations, event or trade show attendance or sponsorship, trade association or chamber of commerce membership fees, travel and entertainment for client meetings, mailing or lead lists
- Wages and benefits: Employee salaries, payroll taxes, benefits, workers compensation
Where to get the money
Financial with Debt
|PREMISES AND LOCATION|
Choosing Your Location
Types of Premises and Location
- Home Based or Small Office Home Office (SOHO)
- Virtual Office (VO)
- Business Incubators
- Commercial Area
- Industry Area
Small Office Home Office (SOHO)
- Not having enough money to keep the business going
- Long-term illness of self or key employee
- Losing customers to a larger company
Virtual Office (VO)
- Save Operation Cost
- Free to work anywhere - No traffic Jam, No ‘9 - 5’ working hours
- Low Starting cost
- Good Cooperate Image because they operate like a proper setup office/company
- flexible space and leases, many times at very low rates
- fee-based business support services, such as telephone answering, bookkeeping, secretarial, fax and copy machine access, libraries and meeting rooms
- group rates for health, life and other insurance plans
- business and technical assistance either on site or through a community referral system
- assistance in obtaining funding
- networking with other entrepreneurs
- Mall Space
- Shopping Center
- Downtown Area
- Free Standing Locations
- Office Building
- To be able to concentrate dedicated infrastructure in a delimited area to reduce the per-business expense of that infrastructure. Such infrastructure includes roadways, railroad sidings, ports, high-power electric supplies, high-end communications cables, large-volume water supplies, and high-volume gas lines.
- To be able to attract new business by providing an integrated infrastructure in one location.
- Eligibility of Industrial Parks for benefits
- To set aside industrial uses from urban areas to try to reduce the environmental and social impact of the industrial uses.
- To provide for localized environmental controls that is specific to the needs of an industrial area.